Oregon Legislature extends vital tax benefit to help first-time homebuyers

Gary Schuette II

Oregonians now have more time to save for their first homes and lower their state taxes with a First-Time Homebuyer Savings Account, thanks to a bill now headed to Gov. Tina Kotek.

Oregon State Credit Union applauds the passage of House Bill 2087, which extends tax benefits for aspiring first-time homeowners by five years. By saving money in a special account, they can subtract up to $6,125 each — or $12,245 for joint filers — annually from their taxable income in Oregon.

“We are grateful Oregon has extended this vital savings tool to ensure future generations can also achieve homeownership and strengthen their communities,” said CEO and President Gary Schuette II. “Housing affordability remains a major challenge in Oregon, and first-time buyers face particularly steep barriers. This program can help them save faster for a home by saving on taxes. I wish more people knew about it.”

At Oregon State Credit Union, nearly 300 members are saving for down payments in first-time homebuyer accounts, averaging $4,700. Extending this program will give them more time to open new accounts and save, helping to address rising housing costs, unpredictable mortgage rates, and the shortage of affordable housing.

“As a real estate professional, I understand how hard it can be for first-time buyers to save for a downpayment and closing costs,” said Senator Mark Meek, chief sponsor of the bill. “This program is an important tool to help level the playing field and encourage more people to save.”

Oregonians with incomes below $104,000 — or $149,000 when filing jointly — are eligible for the state tax benefits. The bill extends the deadline to open a First-Time Homebuyer Savings Account from 2027 to 2032. They can contribute for up to 10 years or until they reach a total of $50,000 (or $100,000 for joint filers), whichever comes first.

The average home price in Oregon is about $512,000 as of early 2025, up 3% from 2024, according to the Oregon Association of Realtors.

“Homeownership strengthens Oregon families and their communities,” Schuette said. “It stimulates the economy, provides a stable tax base and helps build equity over time. Homeowners are more likely to invest in their communities, support local businesses and participate in civic activities. Stable housing also leads to better educational outcomes for children and lower crime rates. It’s a ripple effect that benefits everyone.”

Oregon State Credit Union’s purpose is to serve its member-owners — not to profit from them. It reinvests earnings to directly benefit members through competitive financial products and personalized service. The credit union team is deeply committed to its community, supporting local nonprofits, awarding scholarships and teacher grants, and empowering individuals through programs for first-time homebuyers, youth savings, financial education and fraud prevention.

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