Senate panel hears extension for first‑time homebuyer savings subtraction (SB 101)
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Summary
Senate Committee on Finance and Revenue heard testimony on SB 101 to extend the sunset allowing taxpayers to open first‑time homebuyer savings accounts and claim a personal income tax subtraction. Supporters said the extension would give more Oregonians time to save for down payments; witnesses gave account‑opening and revenue estimates.
Senators on the Finance and Revenue Committee heard testimony on Monday, Feb. 3, on Senate Bill 101, which would extend the deadline to open a first‑time homebuyer savings account that qualifies for a personal income tax subtraction. The bill would push the opening‑deadline current sunset (Jan. 1, 2027) forward by five years.
Supporters — including representatives from Oregon State Credit Union, Oregon Realtors and the Oregon Fairs Association — told the committee the subtraction helps prospective buyers save for eligible costs such as down payments and closing costs by allowing taxpayers to deduct contributions to a qualified savings account. "This is an excellent program," Rick Metzger told the committee, describing the accounts as tax‑deferred savings that can help close the down‑payment gap.
Financial‑institution testimony offered usage numbers: Oregon State Credit Union said it opened about 200 first‑time homebuyer accounts from 2019 through 2023 and opened 97 accounts in 2024 (a 32% increase year‑over‑year), with an average account balance of roughly $4,700 and a combined balance of about $1.4 million among members who use the product. Witnesses also cited a forecasted median home price near $500,000 for 2025.
Committee staff and witnesses discussed the fiscal impact: before recent changes, the tax expenditure for the subtraction was roughly $0.5 million annually; staff and witnesses estimated the 2024 rule changes could increase usage and put the revenue impact closer to $1.2–$1.3 million per year, though staff said a full updated revenue estimate was not yet available.
Tax Fairness Oregon pointed out limited public awareness of the program: "In the most recent data from '22, only 150 tax filers showed that they took advantage of this program," John Calhoun testified, noting that outreach is needed so eligible households can use the benefit.
Ending: The committee took testimony and asked staff to follow up on revenue impact and outreach; no committee vote was recorded at the hearing.