Oregon Revised Statutes Chapter 316 § 316.867 — Legal

Legal fees in wildfire-related litigation. (1) As used in this section: (a) “Wildfire” means a wildfire as defined in ORS 477.089, that: (A) Is the subject of a state of emergency declared by the Governor; (B) Occurs in an area subject to an executive order of the Governor invoking the Emergency Conflagration Act under ORS 476.510 to 476.610; or (C) Is a federally declared disaster, as defined in section 165 of the Internal Revenue Code, whether located within Oregon or elsewhere. (b) “Wildfire-related litigation” means litigation through which a plaintiff seeks compensation for losses, expenses or damages found to be caused by a wildfire. (2) There may be subtracted from federal taxable income the amount: (a) That would be allowable under sections 63(d) and 67 of the Internal Revenue Code as amended and in effect on December 21, 2017, and as applicable to tax years beginning before January 1, 2018, as a deduction for legal fees incurred by a plaintiff in wildfire-related litigation; and (b) As applicable to the tax year of the taxpayer. (3) A subtraction under this section is allowed regardless of whether the taxpayer elects to deduct itemized deductions on the taxpayer’s federal or state return. [2024 c.50 §3] Note: Section 4, chapter 50, Oregon Laws 2024, provides: Sec. 4. (1) Section 2 of this 2024 Act [316.866] applies to declarations and executive orders issued on or after January 1, 2018, and before January 1, 2026, and, notwithstanding ORS 315.037, to amounts received in all tax years beginning on or after January 1, 2018. (2) Section 3 of this 2024 Act [316.867] applies to: (a) Declarations and executive orders issued on or after January 1, 2018, and before January 1, 2026; and (b) Notwithstanding ORS 315.037, losses incurred and legal fees paid or incurred in all tax years beginning on or after January 1, 2018. [2024 c.50 §4]