Vote Smart's Synopsis:

Vote to pass a bill that amends income tax requirements and establishes a credit for job creation in Oregon.

Highlights:

• Requires qualified passenger vehicle loan interest deducted by a taxpayer on their federal tax return to be added to income reported on their Oregon income tax return (Sec. 2).

• Increases the amount of tax credit that may be applied to the tax described above and any other tax due under ORS chapter 316 from 9% to 14%, or from 12% to 17% for taxpayers with a dependent under the age of three (Sec. 3).

• Requires gain from the exchange or sale of qualified small business stock that is deducted by a taxpayer on their personal federal income tax return to be added to income reported on their Oregon personal income tax return (Sec. 5).

• Establishes a nonrefundable personal and corporate income tax credit available to a taxpayer that has created a new job(s) in Oregon during the tax year, with the following stipulations (Sec. 12-14):

• The credit is $1,000 for each new job created by the taxpayer;

• The maximum number of created jobs that may be applied to the credit is 10 for each taxpayer;

• Each new job must have compensation equal to or greater than 150% of the applicable minimum wage;

• Taxpayers must receive written certification of credit eligibility from the Oregon Business Development Department;

• Unused credits may be carried forward for up to three successive tax years;

• The total amount of potential tax credits for all taxpayers may not exceed $12.5 million in any tax year; and

• The credit applies to tax years 2026 through 2031.

• Amends the dates connecting to federal Internal Revenue Code and other provisions of federal law to either December 31, 2025, or January 1, 2026 (Sec. 15-48).

• Specifies that this Act takes effect 91 days after the Legislature adjourns (Sec. 49).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends income tax requirements and establishes a credit for job creation in Oregon.

Highlights:

• Requires qualified passenger vehicle loan interest deducted by a taxpayer on their federal tax return to be added to income reported on their Oregon income tax return (Sec. 2).

• Increases the amount of tax credit that may be applied to the tax described above and any other tax due under ORS chapter 316 from 9% to 14%, or from 12% to 17% for taxpayers with a dependent under the age of three (Sec. 3).

• Requires gain from the exchange or sale of qualified small business stock that is deducted by a taxpayer on their personal federal income tax return to be added to income reported on their Oregon personal income tax return (Sec. 5).

• Establishes a nonrefundable personal and corporate income tax credit available to a taxpayer that has created a new job(s) in Oregon during the tax year, with the following stipulations (Sec. 12-14):

• The credit is $1,000 for each new job created by the taxpayer;

• The maximum number of created jobs that may be applied to the credit is 10 for each taxpayer;

• Each new job must have compensation equal to or greater than 150% of the applicable minimum wage;

• Taxpayers must receive written certification of credit eligibility from the Oregon Business Development Department;

• Unused credits may be carried forward for up to three successive tax years;

• The total amount of potential tax credits for all taxpayers may not exceed $12.5 million in any tax year; and

• The credit applies to tax years 2026 through 2031.

• Amends the dates connecting to federal Internal Revenue Code and other provisions of federal law to either December 31, 2025, or January 1, 2026 (Sec. 15-48).

• Specifies that this Act takes effect 91 days after the Legislature adjourns (Sec. 49).

Full Bill Text