OR SB587

Creates Oregon corporate excise and income tax subtractions for amounts received from wildfire lawsuit judgments or settlements, excluding amounts already deducted federally or compensated by insurance

Allows plaintiffs to subtract legal fees incurred in wildfire-related litigation from federal taxable income, regardless of whether they itemize deductions

Qualifying wildfires must be subject to a Governor-declared state of emergency, Emergency Conflagration Act executive order, or federally declared disaster (in Oregon or elsewhere)

Applies retroactively to wildfires declared between January 1, 2018 and January 1, 2026, and to amounts received or fees paid in tax years beginning on or after January 1, 2018

Taxpayers may file amended returns for tax years 2018-2022 to claim refunds, with claims accepted until May 15, 2028; refunds do not bear interest