Oregon Gov. Tina Kotek recently signed legislation that provides up to $1 million per year in state tax credits for three years to newly chartered Oregon banks.
The tax incentives apply to Oregon-chartered banks that will begin operating between 2027 and 2033. The law is designed to help offset startup costs and attract investors interested in launching new institutions.
There are 13 state-chartered banks in the state, expected to drop to 12 after a pending acquisition, and Oregon has not chartered a new bank since 2007. At the start of the century, there were more than 50 locally headquartered banks. Today, there are approximately 12.
“This law sends a clear signal that Oregon is open for new community banks,” Scott Bruun, Oregon Bankers Association president and CEO, said. “Our goal is to connect capital with banking teams ready to build the next generation of community banks in Oregon.”
The association, a full-service trade organization with membership that includes state and national commercial banks, plans to promote the law to experienced banking teams and investors nationwide.
Oregon becomes the second state to adopt a dedicated incentive aimed at encouraging de novo bank formation. Banking industry leaders say potential opportunities exist statewide.