Rep. Matt Wand (R-Troutdale) today announced the ‘Invest in Oregon Act’ to temporarily reduce Oregon’s capital gains tax rate and encourage new investment and job creation in the state. He will formally present the bill to the House Revenue Committee when it receives a public hearing tomorrow.
“The Invest in Oregon Act is an immediate and effective way to incentivize investment in Oregon companies and create jobs for Oregonians,” said Rep. Wand, a House Revenue Committee member. “By reducing the tax rate for investments made in Oregon companies during a brief period of time, this bill will encourage investors to bring their capital to Oregon to fund ingenuity, invention and enterprise.”
The Invest in Oregon Act provides for a reduced rate in personal income and corporate excise tax for capital gains, if the gains are attributable to the sale or exchange of an investment made in an Oregon business or in real property located in the state. This incentive is applicable to investments made between January 1, 2012 and January 1, 2014. In addition, the investment must be held for at least three years. For these qualified investments, the effective capital gains tax rate will be 2.5 percent. This bill excludes investments in publicly traded stock.
“Enactment of HB 4076 will provide an immediate shot in the arm to Oregon’s economic recovery,” Rep. Wand said. “By reducing the tax rate for qualified investments made during the next two years, we will increase venture capital investments in Oregon companies by 5.6 percent. These investments are critically necessary to create jobs, and the bill results in attracting over $25 million in additional investment to Oregon’s start-ups and nascent industry.”
In the 2014 tax year, the bill will generate a net gain of $700,000 due to increased income tax revenues from newly employed Oregonians according to the Department of Revenue. Though it would reduce state revenues by $15 million over five years, the overall impact could be offset by the decrease in benefits and assistance these Oregonians would need if they were still looking for work.
“The immediate increase in capital, translates into creation of new jobs for Oregonians. Within five years, there will be over 1,000 new jobs created because of the increased investment in Oregon companies,” Rep. Wand said. “What the revenue impact numbers don’t reflect is the potential for investing in an Oregon company that will become the next Facebook or Nike. Attracting additional investment to Oregon is the key to our state’s economic recovery, and the Invest in Oregon Act accomplishes this effectively and immediately.”
Promoting investment in Oregon companies and workers is part of the Oregon House Republicans’ “50,000 Jobs in Five Years” agenda.
