2026 Oregon Legislative Session Wrap-Up
Overview
As Oregon’s 2026 Legislative Session adjourned on March 1st, it wrapped a busy month for Oregon Life Sciences and our advocacy work. Going into the session, Legislators and the Governor were talking about ways to jumpstart Oregon’s fledgling economy. We had several opportunities to engage legislators, the Governor’s office and our members and elevate the needs and benefits of Oregon’s biotech sector. Our work contributed to victories by allowing local governments greater flexibility in offering property tax incentives through the Enterprise Zone program, new investment in industrial site infrastructure financing, and a robust effort elevating awareness of the value and benefits of R&D credits for our sector. Further, Oregon Life Sciences hosted a successful (and packed) Biotech Caucus reception; just a few blocks from the State Capitol, legislators, state agency representatives, local government officials and our members gathered to talk about our industry and building a successful ecosystem through thoughtful policy.
Here's a rundown of our priorities and outcomes this session:
Supported
HB 4084, PASSED: E-Zone Enhancement and Industrial Site Loan Readiness and Fast Track Permitting. Governor Kotek requested introduction of this bill as a first step to her Prosperity agenda. Oregon Life Sciences testified on day one, and maintained close contact with legislators, the Governor’s team and engaged our membership at large. Ultimately, the bill passed with broad bi-partisan support – allowing local governments to extend Enterprise Zone tax abatement for existing companies and changing eligibility thresholds. Notably, the original bill included a $40 million allocation to the Industrial Site Land fund, and our coalition successfully convinced budget writers to allocate $15 million through other budget bills.
SB 1586, DIED Biotech R&D Tax Credit Eligibility, Enterprise Zone improvements, Capital Equipment Tax Benefit and Industrial site zoning. Oregon Life Sciences played a significant role in pushing for this bill, specifically the renewed R&D tax credit eligibility for biotech companies. While all components would have benefited advanced manufacturing, the bill couldn’t muster the votes in the Senate Finance and Revenue committee (particularly given concerns over land-use changes). We hope to continue building momentum for the broad benefits of an R&D tax credit going forward.
HB 4040, PASSED: House Health Care Omnibus bill. Upon request from members, Oregon Life Sciences sought new transparency and notice requirements for the Health Evidence Review Commission process. We worked directly with the Committee Chair, Rep. Rob Nosse and Oregon Health Authority to implement new provisions. Section 6 of the amended bill, restricts OHA from changing agendas after the original agenda is posted 14 days in advance of meetings (HERC will propose rules in 2026 allowing flexibility for administrative changes or coverage expansion). The bill also requires HERC staff to distribute submitted materials to Commissioners (instead of just summaries). Another notable provisions of 4040 is Section 35, making insulin review by the Prescription Drug Affordability Board optional rather than mandatory).
Opposed
SB 1528, DIED: The Senate Health Committee amended a placeholder bill after the start of session to require manufacturers to report patient assistance programs to the state regulators as part of Oregon’s drug transparency program. OLS expressed concerns for patient privacy and continued access to support programs. After advocacy with Committee leadership, written and oral testimony, the bill died late in session.
SB 1507, PASSED: Disallows certain federal tax deductions for Oregon income taxes, increased Earned Income Tax Credit and created new job creation tax credit. While the tax credit components are laudable goals, the disconnection of Oregon’s tax law from federal deductions is a step back for Oregon’s competitiveness. Our members, particularly start-ups with limited cash flow and revenue could benefit from the accelerated depreciation provisions. Further, disallowing deductions for gains from the sale of small business stock also negatively impacts companies seeking to attract capital investment here in Oregon.
Looking forward:
Oregon Life Sciences had a successful session with engagement from members, activity within the Capitol and elevating support for our ecosystem in Oregon. As we move to the interim, we will continue to coordinate Biotech Caucus events for legislators. We are partnering with Oregon Business Council to launch a Life Sciences Task Force with legislators and company representatives. Finally, we continue to engage with the Governor’s Prosperity Council as policy-makers and business leaders throughout the state consider how to chart a new path for Oregon’s economy; a path that we hope emphasizes the life sciences sector and our members. Finally, we will engage with candidates during the election season and support biotech champions. Contribute here to Oregon Bio PAC!