Oregon House Bill 4136

---

Completed Legislative Action
Sponsorship: Partisan Bill (Democrat 21)
Status: Failed on March 6 2026 - 100% progression
Action: 2026-03-06 - In committee upon adjournment.
Text: Latest bill text (Introduced) [PDF]

The Act ends the tax deduction for mortgage interest paid for a taxpayer's second home. (Flesch Readability Score: 61.8). Disallows, for purposes of personal income taxation, a mortgage interest deduction for a residence other than the taxpayer's principal residence, unless the taxpayer sells the residence or actively markets the residence for sale. Establishes the Oregon Homeownership Opportunity Account. Transfers an amount equal to the estimated increase in revenue attributable to restrictions on the deduction of mortgage interest to the account, for the purpose of making down payment assistance payments. Applies to tax years beginning on or after January 1, 2026. Takes effect on the 91st day following adjournment sine die.

Relating to tax treatment of mortgage interest; prescribing an effective date.

Rep. Annessa Hartman [D]	Sen. Jeffrey Golden [D]	Sen. Courtney Neron Misslin [D]	Rep. Tom Andersen [D]
Rep. Farrah Chaichi [D]	Rep. Willy Chotzen [D]	Rep. Mark Gamba [D]	Rep. Ken Helm [D]
Rep. Zach Hudson [D]	Rep. John Lively [D]	Rep. Susan McLain [D]	Rep. Lesly Munoz [D]
Rep. Robert Nosse [D]	Rep. Lamar Wise [D]	Sen. Lew Frederick [D]	Sen. Sara Gelser Blouin [D]
Sen. James Manning [D]	Sen. Deb Patterson [D]	Sen. Khanh Pham [D]	Sen. Floyd Prozanski [D]
Sen. Janeen Sollman [D]

Date	Chamber	Action
2026-03-06	House	In committee upon adjournment.
2026-02-16	House	Public Hearing held.
2026-02-02	House	Referred to Revenue.
2026-02-02	House	First reading. Referred to Speaker's desk.

Type	Source
Summary	https://olis.oregonlegislature.gov/liz/2026R1/Measures/Overview/HB4136
Text	https://olis.oregonlegislature.gov/liz/2026R1/Downloads/MeasureDocument/HB4136/Introduced
Supplement	https://olis.oregonlegislature.gov/liz/2026R1/Downloads/MeasureAnalysisDocument/94073
Supplement	https://olis.oregonlegislature.gov/liz/2026R1/Downloads/CommitteeMeetingDocument/314238
Supplement	https://olis.oregonlegislature.gov/liz/2026R1/Downloads/CommitteeMeetingDocument/315492