Rep. Tim Freeman (R-Roseburg) yesterday testified to the House Business and Labor Committee on a job creation bill that encourages businesses and homeowners to invest in property improvements through a tax credit. According to a nonpartisan revenue analysis, HB 4103 could generate over 6,600 jobs and generate $1.42 billion in personal income growth over five years.
“This solution will boost economic development throughout the state, especially in construction industries, because it gives thousands of Oregonians and Oregon businesses an important incentive to invest in new projects,” Rep. Freeman said.
Under HB 4103, Oregonians would be able to claim 50 percent of the costs of their own capital construction projects over a five-year period. A 100 percent tax credit would be provided when projects promote energy efficiency or compliance with the federal Americans with Disabilities Act. Overall, tax credits are capped at $50,000 for improvements to a residential property and $500,000 for improvements to a business facility. The bill requires projects to be certified before property owners are eligible for the credit.
According to the Legislative Revenue Office, the bill would have a revenue impact of $295 million over five years. However, in addition to creating jobs and increasing Oregonians’ personal income, the proposal would increase property values by $253 million over five years, and increase property tax revenues by $4 million over the same period.
“This plan only costs state government when homeowners and business owners are investing in their properties,” Rep. Freeman said. “The jobs created through this plan mean people and businesses will be earning income and, therefore, paying income taxes. The amount of credits being claimed is directly related to the number of projects being done, and more projects mean more jobs.”
HB 4103 awaits further action in the House Business and Labor Committee. Supporting Oregon’s building and construction industries and trades is part of the Oregon House Republicans’ “50,000 Jobs in Five Years” agenda.
