Oregon has adopted a new tax incentive in an effort to end a nearly two-decade drought in de novo bank formation in the state, according to the Oregon Bankers Association.
House Bill 4052, signed into law by Gov. Tina Kotek, allows qualifying de novo banks to receive up to $1 million annually in state tax credits for three consecutive years, helping offset the significant startup costs associated with organizing a new bank, the association said. Oregon is the second state to adopt such an incentive, after Ohio.
Oregon currently has 13 state-chartered banks, a number expected to decline to 12 following a pending acquisition. The state has not seen a newly chartered bank since 2007.
“This legislation sends a clear signal that Oregon wants new community banks,” said Scott Bruun, president and CEO of OBA. “For experienced banking teams and investors interested in starting a new institution, this law helps improve the economics of organizing a bank and demonstrates strong bipartisan support for expanding locally based financial institutions.”
