SB 1507
Plain-language analysis
Generated analysis, not an official summary or legal advice. Confirm with linked Oregon documents.
SB 1507 increases Oregon’s personal income tax revenue by approximately $312 million annually through the first half of the decade by disconnecting from three federal tax breaks (vehicle loan interest, small business stock gains, and bonus depreciation) while simultaneously expanding the state earned income tax credit for low-income workers and creating a capped, wage-verified job creation tax credit.
Basis: Bill text · Sources: Enrolled; RIS SB 1507 -7; Revenue Impact Statement A
Official sources do not state why this measure was proposed.
Sponsor testimony, staff summaries, committee materials, or statutory findings may explain it.
Inferred from cited text; not a stated purpose.
The measure appears designed to offset revenue losses from recent federal legislation by selectively decoupling Oregon from specific federal deductions that disproportionately benefit higher-income taxpayers or capital investments, thereby stabilizing the state budget while targeting tax relief toward wage-earning households and new employment.
Basis: Inferred · Sources: RIS SB 1507 -7; Revenue Impact Statement A
Receive a larger refundable EITC (up to 17% of federal credit), increasing take-home pay and reducing state tax liability.
Basis: Bill text · Sources: Enrolled; RIS SB 1507 -7
Face higher taxable income due to the loss of federal bonus depreciation, QSBS gain exclusion, and vehicle loan interest deduction, potentially reducing upfront cash flow for equipment purchases and capital gains.
Basis: Bill text · Sources: Enrolled; RIS SB 1507 -7
Can claim a nonrefundable $1,000 credit per qualifying net new job (capped at 10 jobs/year), subject to OBDD certification and a $12.5M statewide annual cap.
Basis: Bill text · Sources: Enrolled; RIS SB 1507 -7
Affected by updated definitions aligning with the new federal connection date for retirement plan rules, though substantive benefit calculations remain unchanged.
Basis: Bill text · Source: Enrolled
Taxpayers must recalculate Oregon taxable income by adding back previously excluded federal deductions for vehicle interest, QSBS gains, and bonus depreciation.
Basis: Bill text · Source: Enrolled
Employers must apply to OBDD for certification before claiming the job credit, verify wages meet the 150% minimum wage threshold, and track employment averages against prior-year baselines.
Basis: Bill text · Source: Enrolled
The Department of Revenue will update tax forms and IT systems to process the new additions and credits; the Oregon Business Development Department will manage a new certification program with seasonal staffing.
Basis: Bill text · Source: Fiscal Impact Statement A
Unused job credits may be carried forward for up to three years but cannot exceed annual tax liability.
Basis: Bill text · Source: Enrolled
Startup founder or small business owner
Sells qualified small business stock for $5 million; under current law, the gain would be fully excluded federally and now added back to Oregon income, resulting in a significant state tax liability increase that could deter future exits or relocation of headquarters.
Basis: Bill text · Source: Enrolled
Mid-sized manufacturing employer
Creates exactly 10 new jobs paying $26/hour; receives the maximum $10,000 credit, but if the statewide $12.5M cap is reached early in the certification window, their application may be proportionally reduced or denied, creating uncertainty in workforce planning.
Basis: Bill text · Source: Enrolled
bill_text
Sources · Enrolled
The measure trades short-term corporate tax incentives and capital investment deductions for expanded direct income support to low-wage workers and a capped, administratively intensive job creation credit.
Stabilizes state revenue by disconnecting from federal provisions that reduce Oregon's tax base.
Basis: Bill text · Source: RIS SB 1507 -7
Provides meaningful financial relief to low-income working families through a larger EITC.
Basis: Bill text · Source: Governor SB 1507 signing letter — signing-letter
Reduces upfront cash flow for businesses investing in equipment, potentially slowing capital expansion.
Basis: Bill text · Source: RIS SB 1507 -7
Creates administrative bottlenecks and uncertainty for employers navigating the new job credit certification cap and wage verification requirements.
Basis: Bill text · Source: Fiscal Impact Statement A
The enrolled version replaces the minority report's text with majority amendments that add three major revenue-generating disconnects (vehicle loan interest, QSBS gain exclusion, and bonus depreciation) and create a new capped job creation tax credit program, while retaining the EITC expansion and federal connection date updates.
Added requirement to add back qualified passenger vehicle loan interest deducted on federal returns.
Increases taxable income for taxpayers claiming the federal deduction.
Sources · Enrolled
Added requirement to add back gain from the exchange or sale of qualified small business stock excluded on federal returns.
Eliminates Oregon's alignment with the federal QSBS exemption for tax years beginning in 2026.
Sources · Enrolled
Added requirement to add back federal bonus depreciation for property placed in service on or after January 1, 2026, with a corresponding subtraction over the asset's remaining depreciable life.
Shifts corporate tax deductions from immediate expensing to accelerated depreciation, increasing near-term state revenue.
Sources · Enrolled
Created a new nonrefundable job creation tax credit ($1,000 per net new job, max 10 jobs/year) with OBDD certification and a $12.5M statewide cap.
Introduces a novel administrative program targeting employment growth, absent from the previous version.
Sources · Enrolled
Retained EITC expansion (9% to 14%, 12% to 17% for dependents under 3) and federal connection date updates.
Maintains the minority report's core provisions while layering majority amendments on top.
Sources · Enrolled; Minority Report A-Engrossed
Tradeoff: The enrolled version shifts from a narrow focus on low-income tax relief and federal alignment to a broader revenue-stabilization strategy that sacrifices corporate investment incentives to fund expanded social supports and a new employment credit.
high confidence. The enrolled bill text, LRO revenue impact statements, and Governor signing letter provide explicit, unambiguous provisions regarding the disconnects, credit expansions, and administrative mechanics. Revenue estimates are formally calculated by state economists.
Possible effects if adopted; not current bill text.
Decision brief generation failed. The existing briefs were preserved and this version can be retried.
If adopted, this amendment would update Oregon’s statutory connection date to the federal Internal Revenue Code from December 31, 2023 (or January 1, 2024) to December 31, 2025 (or January 1, 2026) across multiple retirement and tax chapters, while revising corresponding definitions for public employee pensions, 529/ABLE accounts, tax credits, and administrative procedures. The material consequence is that Oregon will automatically align its interpretation of federal tax terms and retirement benefit calculations with legislation enacted through late 2025, eliminating a two-year lag in statutory references without altering the state’s independent revenue or pension policy framework.
Basis: Inferred · Sources: Staff Measure Summary A; Staff Measure Summary A
Official sources do not state why this measure was proposed.
Sponsor testimony, staff summaries, committee materials, or statutory findings may explain it.
Inferred from cited text; not a stated purpose.
The amendment likely serves as a routine administrative update to synchronize Oregon’s tax and retirement definitions with recent federal legislative changes, preventing statutory lag without requiring targeted amendments across dozens of chapters.
Basis: Inferred · Source: Staff Measure Summary A
Retirement benefit calculations, death benefits, rollover eligibility, and mandatory retirement age at 72 will reference updated federal IRC provisions, potentially altering contribution limits, distribution rules, and after-tax pension values.
Basis: Inferred · Source: Amendment -A12 — proposed amendment
Definitions for income, deductions, credits, charitable checkoffs, and property tax connections will align with the new federal connection date, changing how Oregon interprets federal tax terms for compliance and reporting.
Basis: Inferred · Source: Amendment -A12 — proposed amendment
Administrative rulemaking, IT system programming, taxpayer guidance, and compliance procedures must be updated to reflect the new federal reference dates and revised statutory definitions.
Basis: Inferred · Source: Fiscal Impact Statement A
Taxpayers and employers will see Oregon’s interpretation of federal tax terms shift automatically to match late-2025 federal law, reducing compliance friction but requiring updated payroll, retirement, and tax filing procedures.
Basis: Inferred · Source: Staff Measure Summary A
Direct fiscal impact from this amendment alone is minimal, but alignment with federal changes may indirectly affect retirement contribution limits or tax credit eligibility depending on how federal law evolves through 2025.
Basis: Inferred · Source: RIS SB 1507 -3
DOR and PERB will apply updated federal standards uniformly, improving clarity for taxpayers but requiring administrative resources to update forms, rules, and IT systems.
Basis: Inferred · Source: Fiscal Impact Statement A
Public employee retirees
A retiree with a complex pension and individual account package benefits from favorable federal tax provisions enacted in late 2025. The updated connection date automatically incorporates those provisions into Oregon’s retirement calculations, maximizing after-tax retirement income and rollover flexibility without legislative delay.
Basis: Inferred · Source: Amendment -A12 — proposed amendment
Taxpayers and plan administrators
Federal law enacted in early 2026 drastically changes IRC definitions for salary, qualified expenses, or distribution requirements. Because Oregon’s connection date is fixed at December 31, 2025, retirees and taxpayers are locked into outdated federal standards until the next legislative session, creating mismatches with federal tax filings, reducing retirement benefit values, or triggering unintended tax liabilities.
Basis: Inferred · Source: Staff Measure Summary A
The text legally permits automatic alignment with federal law; unlawful outcomes would stem from misapplication rather than statutory authorization.
Sources · Amendment -A12 — proposed amendment
Updating the connection date ensures Oregon’s tax and retirement definitions stay current with federal law, reducing compliance friction, but it also cedes automatic alignment to future federal changes that may conflict with Oregon’s independent revenue or retirement policy goals.
Streamlined administration and reduced lag in adopting beneficial federal provisions.
Basis: Inferred · Source: Staff Measure Summary A
Consistent taxpayer guidance and automatic synchronization with federal tax developments.
Basis: Inferred · Source: Staff Measure Summary A
Loss of legislative control over specific federal tax definitions and exposure to unfavorable federal changes.
Basis: Inferred · Source: Staff Measure Summary A
Dependency on federal law stability, potentially creating mismatches if federal provisions change rapidly after the connection date.
Basis: Inferred · Source: Staff Measure Summary A
high confidence. The amendment text explicitly updates connection dates and definitions across multiple chapters. Supporting revenue and staff analyses confirm minimal direct fiscal impact and characterize the update as routine alignment with federal law.
The amendment carves out agricultural and farm machinery and equipment (classified under 2022 NAICS code 33311) from the bill’s disallowance of federal bonus depreciation for Oregon tax purposes. If adopted, businesses in this sector would continue claiming full first-year depreciation deductions on Oregon returns without adding them back to state taxable income, while all other businesses would face a significant tax increase on new property purchases.
Basis: Stakeholder claim · Sources: Amendment -A10 — proposed amendment; Revenue Impact Statement A
Official sources do not state why this measure was proposed.
Sponsor testimony, staff summaries, committee materials, or statutory findings may explain it.
Inferred from cited text; not a stated purpose.
The amendment likely aims to shield Oregon-based agricultural equipment manufacturers or farmers from the broader tax increase on capital investments, preserving sector competitiveness and maintaining farm investment levels amid federal tax changes. The explicit reference to a specific federal industry classification system indicates a targeted economic protection measure rather than a broad policy shift.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
Would retain full bonus depreciation benefits on Oregon returns, lowering their effective state tax burden relative to other industries.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
Would benefit from lower after-tax costs for new farm equipment acquisitions compared to businesses in non-exempt sectors.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
Would collect less revenue from the bonus depreciation addback, with the magnitude depending on the volume of qualifying purchases.
Basis: Inferred · Sources: Amendment -A10 — proposed amendment; Revenue Impact Statement A
Taxpayers in NAICS 33311 must correctly classify equipment purchases to claim the exemption, requiring DOR to verify industry codes and purchase descriptions during audits. Businesses outside the exempt sector face a higher effective tax rate on new capital investments, potentially altering procurement timing or favoring leasing over purchasing. The carve-out creates a bifurcated depreciation regime, complicating compliance for multi-industry businesses that own both exempt and non-exempt equipment.
Basis: Inferred · Sources: Amendment -A10 — proposed amendment; Revenue Impact Statement A
Agricultural machinery manufacturers
An Oregon agricultural equipment manufacturer avoids a multi-million dollar state tax liability increase, enabling it to maintain production levels and avoid layoffs during a period of federal tax uncertainty.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
State budget and non-exempt businesses
The exemption creates a substantial revenue shortfall that forces the state to reduce funding for other programs or impose offsetting taxes on unrelated sectors, distorting capital allocation across the economy.
Basis: Inferred · Sources: Amendment -A10 — proposed amendment; Revenue Impact Statement A
The text legally permits manufacturers and purchasers of NAICS 33311 equipment to claim the depreciation exemption. Weak enforcement or ambiguous equipment classification could allow non-agricultural businesses to mislabel machinery as agricultural to capture the benefit, or enable farmers to use exempt equipment for commercial logging or construction while still claiming the tax break.
Sources · Amendment -A10 — proposed amendment
The amendment preserves targeted capital investment incentives for Oregon’s agricultural equipment sector at the direct cost of reduced state tax revenue and a departure from uniform depreciation treatment across industries. Upsides include protecting a specific manufacturing niche and lowering equipment costs for farmers; downsides include revenue loss, compliance complexity, and potential market distortion favoring exempted assets over others.
Preserves capital investment incentives for agricultural machinery manufacturers and reduces after-tax equipment costs for farmers.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
Reduces state tax revenue, creates a bifurcated depreciation regime that complicates compliance, and potentially distorts capital allocation by favoring exempted assets over others.
Basis: Inferred · Sources: Amendment -A10 — proposed amendment; Revenue Impact Statement A
high confidence. The amendment text explicitly defines the exempt property using a specific federal industry classification code, and the surrounding bill context clearly establishes the bonus depreciation disconnect as the primary tax mechanism being modified. Revenue impact data for the broader measure is available, though the specific carve-out impact is not quantified in the provided documents.
The amendment would impose a two-year sunset on the targeted provision by inserting “, and before January 1, 2028” after an existing “2026” reference on page 3. If adopted, the affected policy change would apply only to tax years beginning in 2026 and 2027, automatically expiring at the end of 2027 rather than continuing indefinitely or through a later date.
Basis: Inferred · Source: Amendment -A11 — proposed amendment
Official sources do not state why this measure was proposed.
Sponsor testimony, staff summaries, committee materials, or statutory findings may explain it.
Inferred from cited text; not a stated purpose.
The insertion likely aligns the provision’s duration with the federal tax window created by H.R. 1 (which applies to tax years 2025–2028), suggesting a legislative intent to temporarily mirror or respond to federal policy rather than establish a permanent state change.
Basis: Inferred · Sources: RIS SB 1507 -7; Revenue Impact Statement A
Would experience temporary tax adjustments, requiring revised financial planning and a known reversion to prior law in 2028.
Basis: Inferred · Sources: Fiscal Impact Statement A; RIS SB 1507 -7
Would face front-loaded certification work for the job creation credit with a clear two-year wind-down endpoint, reducing long-term administrative burden but creating short-term processing pressure.
Basis: Inferred · Source: Fiscal Impact Statement A
Would process returns under a time-limited rule set, simplifying long-term compliance tracking but requiring short-term system updates and taxpayer guidance for a known expiration.
Basis: Inferred · Source: Staff Measure Summary A
Taxpayers would need to model cash flows assuming the benefit or cost disappears after 2027. Businesses might accelerate hiring or investment into 2027 to maximize the credit or depreciation changes, then reassess in 2028. DOR and OBDD would face concentrated administrative work with a defined expiration, simplifying long-term policy tracking but requiring structured program phase-out procedures.
Basis: Inferred · Source: RIS SB 1507 A
Businesses with capital investment needs
A business accelerates $5 million in equipment purchases into late 2026 to capture the full bonus depreciation add-back/subtraction schedule, significantly lowering its 2026–2027 tax liability and improving short-term liquidity before the provision expires.
Basis: Inferred · Source: RIS SB 1507 -7
Low-income working families
A family relies on the expanded EITC for two years to cover housing costs, but when the credit reverts in 2028 without a renewal, they face an immediate annual reduction in refundable income, triggering financial instability.
Basis: Inferred · Source: Revenue Impact Statement A
The text legally permits temporary tax adjustments with a fixed expiration. Weak enforcement or misclassification could allow taxpayers to claim credits for jobs that do not meet the 150% minimum wage or net-new job thresholds during the certification window, but this would be an administrative compliance failure rather than a lawful outcome of the amendment itself.
Sources · Fiscal Impact Statement A; RIS SB 1507 A
The measure trades long-term fiscal predictability and permanent tax policy stability for short-term economic stimulus and alignment with federal tax windows. Upsides include immediate liquidity for businesses and targeted relief for low-income families; downsides include potential 2028 revenue cliffs, administrative churn, and reliance on uncertain federal policy continuity.
Immediate liquidity for businesses through temporary depreciation adjustments and job credits.
Basis: Inferred · Source: RIS SB 1507 -7
Targeted income relief for low-income families via a temporarily expanded EITC.
Basis: Inferred · Source: Revenue Impact Statement A
Potential 2028 revenue cliffs and administrative churn as programs expire.
Basis: Inferred · Source: Staff Measure Summary A
Reliance on uncertain federal policy continuity for alignment purposes.
Basis: Inferred · Source: RIS SB 1507 -7
high confidence. The amendment text is explicit about inserting a sunset date. Revenue impacts, affected groups, and policy context are directly documented in the supplied LRO and fiscal analysis sources.
If adopted, the amendment would restrict the application of a specific statutory reference (currently tied to IRC § 3121(d)(2) as effective January 1, 2026) to a two-year window beginning January 1, 2026, and ending before January 1, 2028. This creates a temporary sunset for that provision, meaning Oregon would no longer automatically incorporate the referenced federal standard after December 31, 2027, unless the legislature reauthorizes it.
Basis: Inferred · Source: Amendment -A11 — proposed amendment
Official sources do not state why this measure was proposed.
Sponsor testimony, staff summaries, committee materials, or statutory findings may explain it.
Inferred from cited text; not a stated purpose.
The amendment likely reflects a legislative intent to decouple Oregon’s adoption of a specific federal definition from permanent automatic incorporation, instead limiting its effect to a two-year biennial cycle. This aligns with Oregon’s standard practice of updating federal tax and employment law references every two years to avoid unintended consequences from future federal statutory changes.
Basis: Inferred · Sources: Amendment -A11 — proposed amendment; Staff Measure Summary A; RIS SB 1507 -7
Retirement eligibility classifications tied to the referenced federal definition will apply only during the 2026–2028 window. Employers must track the expiration date, and employees may face a sudden change in PERS eligibility or contribution requirements after December 31, 2027.
Basis: Inferred · Sources: Amendment -A11 — proposed amendment; Minority Report A-Engrossed
Must administer benefit eligibility and contribution rules under a temporary federal standard, requiring administrative tracking of the January 1, 2028 expiration and preparation for statutory reversion or renewal.
Basis: Inferred · Source: Amendment -A11 — proposed amendment
Must monitor the sunset of the referenced federal standard to ensure compliance with Oregon’s retirement and employment tax definitions after 2027, increasing tracking burdens and creating regulatory uncertainty.
Basis: Inferred · Source: Amendment -A11 — proposed amendment
Administrative tracking: PERS and public employers will need to implement internal deadlines to monitor the provision’s expiration and prepare for statutory reversion or renewal in 2028.
Basis: Inferred · Source: Amendment -A11 — proposed amendment
Compliance and payroll processing: Payroll systems must apply the specified federal definition only within the 2026–2028 window. Post-2027, Oregon law would no longer automatically incorporate that specific federal standard unless amended again.
Basis: Inferred · Source: Amendment -A11 — proposed amendment
Cost and eligibility impact: No immediate fiscal or eligibility change is created by the amendment itself, but it introduces regulatory uncertainty for employers and employees regarding retirement eligibility classifications tied to that federal definition after the cutoff.
Basis: Inferred · Source: Amendment -A11 — proposed amendment
Public employers with unique workforce categories
An employer relies on the provision to classify a specific cohort of workers as eligible for PERS between 2026 and 2028, granting them retirement benefits they would otherwise lack. The two-year window provides clear statutory authority during that period, allowing the employer to secure workforce stability without permanent fiscal commitment.
Basis: Inferred · Source: Amendment -A11 — proposed amendment
Public employees and PERS
The provision expires on January 1, 2028, without legislative renewal, causing a sudden loss of retirement eligibility or misclassification for a cohort of public employees whose status depended entirely on the two-year federal tie. This could trigger retroactive contribution disputes, benefit gaps, and increased litigation risk against PERS.
Basis: Inferred · Source: Amendment -A11 — proposed amendment
The distinction lies between the legislature’s explicit authorization of a two-year window versus administrative actors extending that window informally after expiration.
Sources · Amendment -A11 — proposed amendment
The amendment trades permanent alignment with a federal standard for temporary legislative control, allowing Oregon to test or limit the provision’s impact while creating administrative complexity and future renewal risk.
Prevents automatic adoption of potentially unfavorable future federal changes by forcing biennial review.
Basis: Inferred · Source: Amendment -A11 — proposed amendment
Maintains legislative oversight and allows policymakers to adjust Oregon’s retirement eligibility standards based on observed federal developments.
Basis: Inferred · Source: Amendment -A11 — proposed amendment
Introduces regulatory uncertainty and requires proactive legislative action to avoid statutory lapses.
Basis: Inferred · Source: Amendment -A11 — proposed amendment
Increases compliance tracking burdens for employers, payroll administrators, and state agencies to monitor the expiration date.
Basis: Inferred · Source: Amendment -A11 — proposed amendment
high confidence. The amendment text is explicit and mechanically precise. Its impact is confined to a single statutory reference with a clear temporal cutoff, allowing high confidence in the described effects despite the absence of sponsor rationale.
The amendment would exempt purchases of agricultural and farm machinery and equipment (NAICS 33311) from a specific tax provision in SB 1507, preserving current Oregon tax treatment for those assets instead of applying the bill’s proposed changes. If adopted, it would reduce state revenue relative to the unamended measure and alter upfront cash flow dynamics for agricultural buyers.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
Official sources do not state why this measure was proposed.
Sponsor testimony, staff summaries, committee materials, or statutory findings may explain it.
Inferred from cited text; not a stated purpose.
The amendment likely aims to shield agricultural operations from increased tax liability or reduced capital flexibility caused by SB 1507’s proposed disconnects (such as the bonus depreciation or vehicle loan interest provisions). This is inferred from the explicit carve-out for NAICS 33311 equipment, which suggests a targeted policy choice to preserve existing tax benefits for farm asset purchases rather than applying a broad-based revenue increase.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
Would retain current tax treatment for equipment purchases, preserving upfront cash flow and avoiding the revenue increase that would otherwise apply to qualifying assets under SB 1507.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
May experience sustained or increased demand if the exemption preserves buyer purchasing power, though they would need to ensure proper classification documentation for sales.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
Must administer, audit, and potentially issue guidance on the NAICS 33311 classification boundary to ensure compliance with the exemption.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
Would experience a revenue reduction relative to the unamended bill, proportional to the volume of qualifying equipment purchases and the specific provision targeted.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
Taxpayers must verify that purchased property falls under NAICS 33311 to claim the exemption, requiring updated recordkeeping or invoicing practices.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
Administrative costs will center on classification compliance and potential DOR audit protocols rather than direct financial outlays for taxpayers.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
If the exemption applies to a high-volume provision like bonus depreciation, it could significantly alter capital investment timing for agricultural buyers.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
Large agricultural cooperatives or diversified farming enterprises
Could continue claiming immediate expensing or interest deductions on major machinery purchases, maintaining liquidity and enabling rapid fleet expansion during a period of high input costs or low commodity prices.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
State General Fund and non-exempt taxpayers
If the exemption applies to the bonus depreciation disconnect (projected at $267.0 million in 2025-27), widespread use by agribusinesses could significantly erode the bill’s revenue projections, potentially necessitating offsetting tax increases or spending reductions elsewhere.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
inference
Sources · Amendment -A10 — proposed amendment
Preserves upfront capital flexibility for agricultural operations at the expense of state revenue and increased classification complexity.
Sustained farm investment and reduced cash flow constraints during equipment replacement cycles.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
Narrows the tax base, potentially creating revenue shortfalls that require budget adjustments or higher rates elsewhere.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
Adds administrative burdens to enforce the NAICS 33311 boundary and monitor compliance.
Basis: Inferred · Source: Amendment -A10 — proposed amendment
medium confidence. The amendment text is explicit about the NAICS 33311 carve-out but does not specify which section of SB 1507 it targets. Revenue and administrative impacts depend on whether it applies to the bonus depreciation disconnect, vehicle loan interest provision, or another section, none of which are confirmed in the supplied text.
The amendment replaces SB 1507 with a series of technical updates that change Oregon’s statutory connection dates to the federal Internal Revenue Code and other federal laws from December 31, 2023/January 1, 2024 to December 31, 2025/January 1, 2026. It also updates definitional cross-references for retirement plan eligibility, pension limits, tax credit calculations, and professional licensing rules. Material consequence: Oregon maintains technical alignment with current federal tax law without adopting new policy provisions, resulting in minimal fiscal impact while preventing statutory drift across dozens of statutes.
Basis: Inferred · Sources: Amendment -MR8 — proposed amendment; Revenue Impact Statement MRA; Fiscal Impact Statement MRA
Official sources do not state why this measure was proposed.
Sponsor testimony, staff summaries, committee materials, or statutory findings may explain it.
Inferred from cited text; not a stated purpose.
The amendment likely serves to update Oregon’s statutory connection dates following the enactment of 2025 federal legislation (H.R. 1), ensuring state definitions and credits remain technically aligned with current federal provisions without adopting new policy. This aligns with Oregon’s established practice of regularly updating statutory ties to federal law on December 31st or January 1st to maintain accuracy.
Basis: Inferred · Sources: Staff Measure Summary A; Staff Measure Summary A
Definitions for retirement eligibility, salary caps, hazardous positions, and military service credit are updated to track current federal law, ensuring accurate benefit calculations and pension accrual rates without requiring separate legislative fixes.
Basis: Inferred · Source: Amendment -MR8 — proposed amendment
Statutory references for income tax credits, corporate excise tax definitions, S-corp representation rules, and professional licensing automatically align with 2025 federal tax changes, preventing compliance gaps or outdated filing requirements.
Basis: Inferred · Source: Amendment -MR8 — proposed amendment
Administrative updates to cross-referenced federal limits (e.g., IRC 415(b) pension caps, IRC 414(u) military service credit) reduce the need for ad-hoc rulemaking to correct statutory drift and streamline audit/processing workflows.
Basis: Inferred · Source: Fiscal Impact Statement MRA
Taxpayers and employers will file returns using updated federal definitions without needing separate state-specific adjustments for the referenced provisions. Retirement plan administrators will apply current federal limits automatically.
Basis: Inferred · Source: Amendment -MR8 — proposed amendment
Eligibility for retirement benefits and tax credits remains tied to updated federal thresholds rather than outdated 2023/2024 figures, reducing administrative confusion and preventing automatic drift into obsolete statutory limits.
Basis: Inferred · Source: Revenue Impact Statement MRA
Public safety worker in a newly recognized hazardous role
Qualifies for accelerated pension accrual rates because the updated statutory definition aligns precisely with current federal IRC standards, avoiding a multi-year legislative fix and ensuring timely benefit recognition.
Basis: Inferred · Source: Amendment -MR8 — proposed amendment
Taxpayer relying on outdated state statute references
Faces a compliance gap until DOR issues emergency guidance, potentially triggering penalties or delayed refunds during the transition period if internal agency updates lag behind the statutory effective date.
Basis: Inferred · Source: Fiscal Impact Statement MRA
The text legally permits automatic alignment with federal definitions and limits. Weak enforcement or misclassification could occur if Oregon agencies fail to update internal guidance promptly, causing taxpayers or employers to incorrectly apply outdated state-specific thresholds instead of the updated federal ones. Duty creep is unlikely but possible if DOR interprets broad federal cross-references as granting authority to adopt uncodified federal administrative rulings without legislative action.
Sources · Amendment -MR8 — proposed amendment; Revenue Impact Statement MRA
The amendment prioritizes statutory alignment and administrative efficiency over policy experimentation by deferring to updated federal tax law rather than crafting independent state provisions.
Reduces compliance complexity, prevents automatic drift into outdated federal thresholds, and minimizes fiscal impact while maintaining technical accuracy across dozens of statutes.
Basis: Inferred · Sources: Revenue Impact Statement MRA; Staff Measure Summary A
Cedes policy autonomy to federal changes, potentially adopting federal tax shifts (e.g., new deductions or credits) without explicit state-level debate or revenue offsets.
Basis: Inferred · Source: Staff Measure Summary A
high confidence. The amendment text explicitly replaces prior statutory references with updated connection dates. Official revenue and fiscal impact statements confirm minimal impact and technical alignment as the primary function. Inferences are bounded by the explicit statutory language and standard legislative reconnect practices.
The amendment replaces SB 1507's sales-tax-conditioned tax reductions with a revenue-raising package effective for tax years beginning January 1, 2026. It disconnects Oregon from three federal tax benefits (auto loan interest deduction, qualified small business stock exclusion, and bonus depreciation), expands the state earned income tax credit to 14% (or 17% for taxpayers with a dependent under age three), creates a capped $1,000-per-job tax credit administered by the Oregon Business Development Department, and updates multiple statutes to reference the Internal Revenue Code as of December 31, 2025. The net effect is an estimated $311.6 million increase in General Fund revenue for 2025-27, shifting administrative burden to OBDD and DOR while altering tax liability for individual taxpayers and businesses making new capital investments.
Basis: Inferred · Sources: Amendment -9 — proposed amendment; Revenue Impact Statement A; Fiscal Impact Statement A
Official sources do not state why this measure was proposed.
Sponsor testimony, staff summaries, committee materials, or statutory findings may explain it.
Inferred from cited text; not a stated purpose.
The measure appears designed to offset federal tax cuts enacted in 2025 by disconnecting Oregon from specific IRC provisions while simultaneously expanding state-level anti-poverty and economic development incentives. The revenue gains from the disconnects are structured to fund the EITC expansion and the new jobs credit, effectively rebalancing the state's revenue base toward corporate capital expenditures and high-wage job creation rather than broad-based tax reduction.
Basis: Inferred · Sources: RIS SB 1507 -7; Revenue Impact Statement A
Receives a larger refundable EITC but loses the ability to deduct qualified passenger vehicle loan interest and exclude gains from qualified small business stock on Oregon returns.
Basis: Inferred · Sources: Amendment -9 — proposed amendment; Revenue Impact Statement MRA
Faces accelerated state tax liability due to the bonus depreciation addback, which shifts deductions from year one over the asset's remaining life. Eligible employers may claim a $1,000 credit per net new job if they meet wage thresholds and obtain OBDD certification.
Basis: Inferred · Sources: Amendment -9 — proposed amendment; Revenue Impact Statement A
Assumes new statutory authority to certify job credits, enforce wage requirements, manage a $12.5M annual cap, and potentially apply pro-rata reductions if demand exceeds the limit.
Basis: Inferred · Sources: Amendment -9 — proposed amendment; Fiscal Impact Statement A
Must update tax forms, IT systems, and taxpayer guidance to implement federal disconnects and new credits, with projected increases in call volume and compliance processing.
Basis: Inferred · Source: Fiscal Impact Statement A
Taxpayers must calculate federal-to-state adjustments for vehicle interest, QSBS gains, and bonus depreciation addbacks, increasing compliance complexity. Employers face a mandatory certification process with OBDD, wage verification against ORS 653.025, and a strict annual cap that may trigger pro-rata credit reductions. DOR requires IT programming and form revisions by the effective date, while OBDD must draft rules for employment comparison methodology and manage seasonal staffing to process applications.
Basis: Inferred · Sources: Amendment -9 — proposed amendment; Fiscal Impact Statement A
Businesses making large capital investments
A manufacturing firm places $50 million in qualified property in service in 2026, claims the full federal bonus depreciation deduction, but adds back approximately $267 million to Oregon taxable income per LRO estimates. The resulting state tax liability increase funds public services while the firm retains the asset and continues operations under standard depreciation schedules over its remaining useful life.
Basis: Inferred · Sources: RIS SB 1507 -7; Revenue Impact Statement A
Employers seeking the jobs credit
An employer creates exactly 10 new positions at 150% of the minimum wage, applies for certification, and incurs hiring and payroll costs. Due to aggregate demand exceeding the $12.5 million statutory cap, OBDD applies a pro-rata reduction that eliminates the expected credit value, leaving the employer with unrecovered recruitment expenses and no offsetting tax benefit.
Basis: Inferred · Source: Amendment -9 — proposed amendment
The statute relies on self-attestation and OBDD certification without explicit audit triggers or cross-referencing mandates with Oregon Employment Department records in the text itself.
Sources · Amendment -9 — proposed amendment
The measure trades broad federal tax alignment and capital investment incentives for targeted state revenue growth and low-income support, requiring significant administrative overhead to verify eligibility and enforce caps.
Predictable General Fund revenue increase (~$311.6 million in 2025-27) stabilizes state budgets without raising nominal tax rates.
Basis: Inferred · Source: Revenue Impact Statement A
Expanded EITC directly increases spendable income for working families and encourages labor force participation.
Basis: Inferred · Source: RIS SB 1507 -7
Structured job credit provides a clear, capped incentive for employers to create high-wage positions in Oregon.
Basis: Inferred · Source: Revenue Impact Statement A
Accelerated tax liability for businesses making new capital purchases may reduce near-term investment incentives and increase compliance costs.
Basis: Inferred · Source: Revenue Impact Statement A
Complex certification requirements, pro-rata cap mechanics, and seasonal staffing demands create administrative friction for both OBDD and applicants.
Basis: Inferred · Source: Fiscal Impact Statement A
Disconnects from federal provisions may create permanent divergence between Oregon and federal tax bases, increasing long-term reconciliation complexity.
Basis: Inferred · Source: Amendment -9 — proposed amendment
high confidence. Analysis is grounded in the supplied amendment text, LRO revenue impact statements, and fiscal impact documents. All claims are bounded by statutory language and official estimates; speculative elements are explicitly labeled.
The amendment would increase Oregon taxable income for individuals and businesses by adding back three federal tax benefits (vehicle loan interest deductions, qualified small business stock gain exclusions, and bonus depreciation) starting in 2026. Simultaneously, it expands the state earned income tax credit to 14 percent (17 percent for families with dependents under age three) and creates a new $1,000-per-job nonrefundable tax credit capped at 10 jobs and $12.5 million statewide annually through 2031. The net effect is a projected increase in General Fund revenue of approximately $311.6 million for the 2025-27 biennium, offset by targeted refunds for low-income workers and new employers.
Basis: Official analysis · Sources: Revenue Impact Statement A; RIS SB 1507 -7
Official sources state the earned income tax credit expansion aims to increase the spendable income of low-income working families and encourage labor force participation, while the job creation credit aims to support economic activity in Oregon.
Basis: Official analysis · Sources: Revenue Impact Statement A; RIS SB 1507 -7
Inferred from cited text; not a stated purpose.
The measure appears designed to offset revenue losses from recent federal tax legislation by disconnecting Oregon from specific federal deductions and exclusions, while using the resulting General Fund surplus to fund targeted social and economic incentives.
Basis: Inferred · Sources: Staff Measure Summary A; RIS SB 1507 -7
Will face higher Oregon taxable income due to the removal of federal add-back provisions.
Basis: Official analysis · Source: Revenue Impact Statement A
Will receive larger refundable earned income tax credits.
Basis: Official analysis · Source: RIS SB 1507 -7
May claim a nonrefundable credit against their income tax liability, subject to certification and annual caps.
Basis: Official analysis · Source: Revenue Impact Statement A
Will see updated pass-through rules allowing shareholders to claim the new job creation credit proportionally.
Basis: Official analysis · Source: RIS SB 1507 -7
Will assume administrative, certification, compliance, and IT update responsibilities for the new credit program and tax add-backs.
Basis: Official analysis · Source: Fiscal Impact Statement A
Taxpayers must recalculate Oregon taxable income by adding back federal deductions that are no longer recognized by the state. Businesses purchasing capital assets will experience delayed tax deductions over five to seven years instead of immediate first-year expensing, affecting near-term cash flow planning. Eligible employers must secure written certification from the Oregon Business Development Department before claiming credits, navigate wage and employment-counting thresholds, and manage a three-year carryforward period for unused credits. The Department of Revenue will update tax forms, IT systems, and taxpayer guidance to reflect the new add-backs and credit calculations.
Basis: Official analysis · Sources: Revenue Impact Statement A; RIS SB 1507 -7
Small manufacturing firm with no other credits
Creates exactly ten net new jobs paying $25 per hour in a year, allowing it to offset its entire corporate excise tax liability and carry forward any excess for three years, significantly improving operational liquidity.
Basis: Official analysis · Source: RIS SB 1507 -7
Venture capital firm
Realizes a $50 million gain from selling qualified small business stock; under this amendment, the entire gain becomes fully taxable in Oregon rather than partially or wholly excluded, substantially increasing the firm's state tax burden and potentially altering future investment allocation decisions.
Basis: Official analysis · Source: Revenue Impact Statement A
The text legally permits employers to self-attest to job creation numbers during certification and allows the Oregon Business Development Department to establish methodology rules for complex corporate structures. Weak enforcement or overly broad rulemaking could enable employers to count temporary staff, independent contractors, or reclassified employees toward the net new jobs threshold without meeting the 150 percent minimum wage requirement or generating genuine net employment growth.
Sources · RIS SB 1507 -7
The measure raises state revenue and expands support for low-income families while creating a targeted job creation incentive, but it increases tax burdens on vehicle purchasers, small business investors, and capital-intensive businesses by removing federal tax benefits.
Increased spendable income for low-wage workers and families with young children through expanded refundable credits.
Basis: Official analysis · Source: Revenue Impact Statement A
Targeted financial incentive for employers to create new, well-compensated positions within Oregon.
Basis: Official analysis · Source: RIS SB 1507 -7
Higher near-term tax liability for individuals and businesses due to the loss of immediate federal deductions and exclusions.
Basis: Official analysis · Source: Revenue Impact Statement A
Administrative complexity and compliance costs for employers navigating certification, wage thresholds, and job-counting rules.
Basis: Official analysis · Source: RIS SB 1507 -7
high confidence. Analysis is grounded exclusively in official Legislative Revenue Office and staff measure summaries for the exact proposed amendment version.
If adopted, this amendment would increase Oregon taxable income for most taxpayers by adding back federal deductions for vehicle loan interest, qualified small business stock gains, and bonus depreciation. It simultaneously expands the state earned income tax credit for low-income workers and creates a capped, nonrefundable job creation credit administered by the Oregon Business Development Department. The net effect is a substantial increase in General Fund revenue offset by targeted credits and significant new administrative requirements for employers and state agencies.
Basis: Inferred · Sources: Amendment -6 — proposed amendment; Revenue Impact Statement A; Fiscal Impact Statement A
Official analysis states the earned income tax credit expansion aims to increase spendable income for low-income working families and encourage labor force participation, while the job creation credit aims to support economic activity in Oregon.
Basis: Official analysis · Sources: Revenue Impact Statement A; Staff Measure Summary A
The text supports no bounded hypothesis.
Receive larger Oregon earned income tax credits, increasing refundable amounts and disposable income.
Basis: Official analysis · Sources: Amendment -6 — proposed amendment; Revenue Impact Statement A
Must add back federal deductions and exclusions to Oregon taxable income, increasing state tax liability.
Basis: Official analysis · Source: Amendment -6 — proposed amendment
Lose immediate first-year bonus depreciation deductions; must add back the federal deduction and spread it over the asset's remaining depreciable life.
Basis: Official analysis · Source: Amendment -6 — proposed amendment
May qualify for a $1,000 per job credit, subject to written certification from the Oregon Business Development Department, a statewide annual cap of $12.5 million, and a three-year carryforward limitation.
Basis: Official analysis · Source: Amendment -6 — proposed amendment
Gain explicit statutory guidance that business tax credits, including the new job credit, pass through to shareholders pro rata rather than remaining at the corporate level.
Basis: Official analysis · Source: Amendment -6 — proposed amendment
Taxpayers and businesses must recalculate Oregon taxable income by adding back specific federal deductions, altering cash flow planning and compliance workflows.
Basis: Official analysis · Source: Amendment -6 — proposed amendment
Employers must track employment data using Oregon Employment Department quarterly census figures, verify wage thresholds, and submit certification applications to the Oregon Business Development Department during a defined season.
Basis: Official analysis · Source: Amendment -6 — proposed amendment
The Department of Revenue will require updated forms, taxpayer guidance, and IT system programming to process the expanded credit and new addbacks, while the Oregon Business Development Department will incur staffing and operational costs to manage certification volume.
Basis: Official analysis · Source: Fiscal Impact Statement A
Small manufacturing firm with high capital investment and low-wage workforce
The firm places $5 million of new equipment in service, claims the full bonus depreciation addback over seven years to smooth tax liability, while simultaneously qualifying for a $10,000 job creation credit and providing its workers with significantly larger EITC refunds that improve retention and labor force participation.
Basis: Inferred · Source: Amendment -6 — proposed amendment
Tech startup or service business in a competitive hiring market
The company creates exactly ten new jobs at the required wage threshold but faces an early-year exhaustion of the $12.5 million statewide credit cap, triggering a proportionate reduction that eliminates its expected credit. Simultaneously, the bonus depreciation addback and vehicle interest addback strain near-term liquidity during a critical growth phase.
Basis: Inferred · Source: Amendment -6 — proposed amendment
inference
Sources · Amendment -6 — proposed amendment
The measure trades broad-based corporate tax base expansion and administrative complexity for targeted relief and incentives for low-income workers and new job creators.
Increased disposable income and labor force participation among low-income working families.
Basis: Official analysis · Source: Revenue Impact Statement A
Structured financial incentive for employers to raise wages and create new positions, potentially supporting regional economic development.
Basis: Official analysis · Source: Revenue Impact Statement A
Higher compliance costs and reduced near-term tax deductions for businesses, particularly those with significant capital investment or vehicle purchases.
Basis: Official analysis · Source: Fiscal Impact Statement A
Administrative burden on state agencies to manage certification caps, proportionate reductions, and data sharing between the Oregon Business Development Department and the Department of Revenue.
Basis: Official analysis · Source: Fiscal Impact Statement A
high confidence. Analysis relies on official Legislative Revenue Office and Legislative Fiscal Office impact statements, the proposed amendment text, and staff measure summaries. No litigation, sponsor motive, or unverified real-world event speculation is included.
If adopted, this amendment would synchronize Oregon’s statutory references to the federal Internal Revenue Code and other federal tax laws from December 31, 2023, to December 31, 2025 (or January 1, 2026) across dozens of statutes governing retirement systems, income/corporate taxes, property tax definitions, and tax court representation. The material consequence is administrative alignment with recent federal tax changes without altering Oregon’s substantive tax rates, creating new revenue policies, or changing pension benefit formulas; it primarily updates definitions and connection dates to prevent statutory obsolescence.
Basis: Stakeholder claim · Sources: Amendment -3 — proposed amendment; Staff Measure Summary A; Staff Measure Summary A
Official sources do not state why this measure was proposed.
Sponsor testimony, staff summaries, committee materials, or statutory findings may explain it.
Inferred from cited text; not a stated purpose.
The amendment likely addresses Oregon’s statutory requirement to periodically update its rolling connection to federal tax law to prevent automatic incorporation of outdated or superseded federal provisions, ensuring state tax administration and pension calculations remain consistent with current federal definitions without requiring separate legislation for each federal change.
Basis: Inferred · Sources: Amendment -3 — proposed amendment; Staff Measure Summary A
Definitions for salary, hours of service, hazardous positions, and deferred compensation are updated to align with current federal tax treatment. This ensures pension calculations accurately reflect federal rules governing fringe benefits, cafeteria plans, and 457/403(b) arrangements as of the new connection date.
Basis: Inferred · Source: Amendment -3 — proposed amendment
Terms such as taxable income, qualified higher education expenses, discharge of indebtedness, and charitable organization status automatically incorporate federal law as of December 31, 2025. This may shift eligibility for deductions, credits, or exclusions if federal definitions changed between the old and new connection dates.
Basis: Inferred · Sources: Amendment -3 — proposed amendment; Staff Measure Summary A
Updated IRC references clarify who may represent taxpayers before tax court magistrates or the Department of Revenue, particularly regarding S corporation shareholders and licensed tax practitioners, potentially expanding representation access under current federal standards.
Basis: Inferred · Source: Amendment -3 — proposed amendment
Administrative obligation to update tax forms, IT systems, taxpayer guidance, and pension administration rules to reflect the new federal connection dates and revised statutory definitions. LRO estimates minimal revenue impact but fiscal statements note DOR and PERB will require resources for system programming and rulemaking.
Basis: Inferred · Sources: RIS SB 1507 -3; Fiscal Impact Statement A
Taxpayers must apply 2025 federal tax definitions to Oregon returns for items like qualified higher education expenses, discharge of indebtedness, and charitable organization status. Pension calculations will reflect updated federal treatment of deferred compensation and fringe benefits.
Basis: Inferred · Source: Amendment -3 — proposed amendment
Minimal direct fiscal impact per LRO, but DOR and PERB incur administrative costs for system updates, rulemaking, and taxpayer guidance. Eligibility for certain tax credits or deductions may shift if federal law changed between December 31, 2023, and December 31, 2025.
Basis: Inferred · Sources: RIS SB 1507 -3; Fiscal Impact Statement A
Clarifies representation rules before tax courts, potentially expanding who can represent taxpayers. Reduces ambiguity in pension benefit calculations for public employees by aligning state definitions with current federal standards.
Basis: Inferred · Source: Amendment -3 — proposed amendment
Public employee with complex deferred compensation and fringe benefits
Receives accurate pension credit calculations that fully reflect federal tax treatment changes enacted in 2024-2025, preventing underpayment of retirement benefits due to outdated state definitions.
Basis: Inferred · Source: Amendment -3 — proposed amendment
Taxpayer relying on a specific federal provision
Faces an unexpected Oregon tax liability because the automatic reconnect incorporates a new or modified federal rule effective after December 31, 2025, that reduces a deduction or exclusion without explicit state-level policy review.
Basis: Inferred · Source: Amendment -3 — proposed amendment
inference
Sources · Amendment -3 — proposed amendment
The amendment prioritizes administrative efficiency and federal alignment over deliberate state-level policy review of recent federal tax changes.
Reduces statutory obsolescence and ensures consistent pension calculations for public employees.
Basis: Inferred · Source: Amendment -3 — proposed amendment
Minimizes compliance confusion for taxpayers and administrators by synchronizing state definitions with current federal standards.
Basis: Inferred · Source: Staff Measure Summary A
Bypasses explicit legislative consideration of specific federal provisions that may negatively impact Oregon revenue or taxpayer obligations.
Basis: Inferred · Source: Amendment -3 — proposed amendment
Creates dependency on federal legislative and regulatory changes, potentially shifting state tax policy without direct state-level oversight.
Basis: Inferred · Source: Amendment -3 — proposed amendment
high confidence. Analysis is grounded exclusively in the supplied amendment text and official legislative revenue/fiscal documents. The amendment's scope is clearly limited to definitional updates and federal connection dates, distinct from revenue provisions in other versions.
The amendment would increase Oregon General Fund revenue by requiring taxpayers to add back three federal tax benefits—vehicle loan interest deductions, qualified small business stock gain exclusions, and bonus depreciation—to their Oregon taxable income. Simultaneously, it expands the state earned income tax credit for low-income workers and establishes a capped, nonrefundable job creation tax credit for employers. The net effect is a substantial revenue increase that funds targeted relief for working families and new hires while raising the immediate tax burden on capital investment and vehicle purchases.
Basis: Inferred · Sources: Amendment -5 — proposed amendment; Revenue impact material — SB 1507 -5 Section Contents; Revenue Impact Statement A
The Legislative Revenue Office explicitly identifies the policy purpose of the earned income tax credit expansion as increasing the spendable income of low-income working families and encouraging labor force participation, and the job creation credit as supporting economic activity in Oregon.
Basis: Official analysis · Sources: RIS SB 1507 -7; Revenue Impact Statement A
Inferred from cited text; not a stated purpose.
The measure appears designed to realign Oregon’s tax base with recent federal legislation while generating state revenue to fund new social and business incentives, suggesting a legislative strategy to offset federal tax cuts and stimulate local employment through targeted credits.
Basis: Inferred · Sources: Amendment -5 — proposed amendment; Staff Measure Summary A
Receive a larger refundable earned income tax credit (increased from 9% to 14%, or 12% to 17%), directly increasing take-home pay and expanding eligibility to ITIN holders who would qualify but for federal restrictions.
Basis: Official analysis · Sources: Amendment -5 — proposed amendment; Revenue Impact Statement A
Face higher Oregon taxable income due to mandatory add-backs for vehicle interest, QSB stock gains, and bonus depreciation, reducing immediate tax deductions and increasing near-term cash flow requirements.
Basis: Inferred · Sources: Amendment -5 — proposed amendment; Revenue Impact Statement A
Gain access to a $1,000 per job nonrefundable credit (capped at 10 jobs per taxpayer annually), subject to OBDD certification and a statewide $12.5 million annual cap.
Basis: Official analysis · Sources: Amendment -5 — proposed amendment; Revenue Impact Statement A
Receive clarified rules allowing business tax credits, including the new job credit, to pass through to individual shareholder returns rather than being retained at the corporate level.
Basis: Official analysis · Source: Amendment -5 — proposed amendment
Taxpayers must calculate Oregon taxable income by adding back specific federal deductions, increasing compliance complexity and requiring professional tax preparation for accurate reporting.
Basis: Inferred · Source: Amendment -5 — proposed amendment
Employers must navigate OBDD certification, track average annual employment using Oregon Employment Department data, and manage credit carryforwards up to three years.
Basis: Official analysis · Sources: Amendment -5 — proposed amendment; Fiscal Impact Statement A
The $12.5 million statewide annual cap introduces potential pro-rata reduction risk if demand exceeds the limit, requiring businesses to monitor application timing and departmental capacity.
Basis: Inferred · Source: Amendment -5 — proposed amendment
The Department of Revenue will adjust systems to allow ITIN holders to claim the expanded credit, broadening eligibility but requiring administrative updates and taxpayer outreach.
Basis: Official analysis · Sources: Amendment -5 — proposed amendment; Revenue Impact Statement A
Small business owner creating ten new full-time jobs in a single year
Receives the maximum $10,000 nonrefundable credit and uses it to offset corporate excise taxes that would otherwise trigger insolvency, preserving operations and retaining existing staff.
Basis: Inferred · Source: Amendment -5 — proposed amendment
Mid-sized manufacturing firm placing five million dollars of new equipment in service
Loses the entire first-year bonus depreciation deduction for Oregon purposes, faces a massive immediate tax liability spike, and must wait five to seven years to recover the deduction through annual subtractions, potentially delaying expansion plans or forcing debt financing.
Basis: Inferred · Sources: Amendment -5 — proposed amendment; Revenue Impact Statement A
The amendment references federal IRC definitions but operates exclusively as an Oregon tax adjustment; it does not alter federal classification rules, leaving state enforcement solely responsible for verifying employment status and wage compliance.
Sources · Amendment -5 — proposed amendment; Fiscal Impact Statement A
The measure trades broad-based corporate tax incentives and federal deduction alignment for targeted relief for low-income workers and new job creators, increasing overall state revenue while concentrating benefits among specific demographics and employers. Upsides include expanded support for working families and a structured incentive for local hiring; downsides include higher immediate tax burdens on capital investment and administrative complexity that may disadvantage smaller taxpayers without professional accounting support.
Increased disposable income for low-income households, potentially reducing poverty rates and stimulating local consumer spending.
Basis: Official analysis · Source: RIS SB 1507 -7
Predictable, capped job creation incentive that supports economic development without unlimited fiscal exposure.
Basis: Official analysis · Source: Amendment -5 — proposed amendment
Significant near-term revenue increase from disconnecting federal deductions may strain business cash flow and delay capital reinvestment.
Basis: Official analysis · Source: Revenue Impact Statement A
Administrative burden of certification, pro-rata reduction monitoring, and ITIN eligibility expansion may overwhelm agency capacity without dedicated funding.
Basis: Official analysis · Source: Fiscal Impact Statement A
high confidence. Analysis is grounded in the committee-proposed amendment text and official Legislative Revenue Office and Legislative Fiscal Office impact statements. Inferences are clearly labeled and bounded by the provided documents.
If adopted, this proposed amendment would systematically update Oregon’s references to the federal Internal Revenue Code from December 31, 2023 to December 31, 2025 across dozens of statutes governing public retirement benefits, personal and corporate income taxes, and state benefit programs. The material consequence is that Oregon law will automatically align its definitions, contribution limits, deduction thresholds, and eligibility criteria with federal tax policy as of the new connection date, while also codifying specific Oregon-specific parameters such as a $195,000 salary cap for OPSRP pension calculations and updated hazardous position classifications.
Basis: Stakeholder claim · Sources: Amendment -3 — proposed amendment; RIS SB 1507 -3
Official sources do not state why this measure was proposed.
Sponsor testimony, staff summaries, committee materials, or statutory findings may explain it.
Inferred from cited text; not a stated purpose.
The measure is designed to prevent Oregon statutes from automatically incorporating outdated or unintended federal tax provisions by updating the statutory connection date, ensuring state definitions align with current federal policy rather than lagging two years behind.
Basis: Inferred · Source: Amendment -3 — proposed amendment
Definitions of pensionable salary, hazardous positions, and retirement credits are updated; the $195,000/$200,000 salary cap for pension calculations is adjusted, directly affecting benefit accruals and contribution limits.
Basis: Inferred · Source: Amendment -3 — proposed amendment
Income tax brackets, deduction thresholds, credit calculations, and corporate excise definitions automatically adjust to match federal changes enacted through December 31, 2025, altering state tax liabilities without separate legislative action on each change.
Basis: Inferred · Source: Amendment -3 — proposed amendment
Account definitions, designated beneficiary rules, and qualified expense standards update to reflect current federal IRC provisions, potentially expanding or restricting eligible higher education and disability-related expenditures.
Basis: Inferred · Source: Amendment -3 — proposed amendment
Administrative systems, taxpayer guidance, payroll processing rules, and benefit calculation formulas must be updated to reflect the new connection dates and statutory definitions, though official estimates indicate minimal fiscal impact.
Basis: Inferred · Source: RIS SB 1507 -3
Taxpayers and employers will experience automatic adjustments to state tax obligations and retirement contribution limits based on federal law changes through 2025, reducing compliance lag but removing direct legislative control over specific changes. Retirement plan administrators must update payroll deduction limits and pension formulas to match the new salary caps and hazardous position definitions. The Department of Revenue will need to update IT systems and taxpayer forms to reflect the revised connection dates, with implementation costs absorbed within existing resources according to official estimates. Eligibility for state tax credits and retirement benefits will expand or contract in tandem with federal policy shifts.
Basis: Inferred · Sources: Amendment -3 — proposed amendment; RIS SB 1507 -3
Taxpayers and businesses
A federal provision enacted in 2024 significantly expands a deduction or credit; Oregon automatically adopts it without legislative debate, providing substantial, unexpected tax relief to thousands of residents and businesses while increasing state revenue collection efficiency through aligned definitions.
Basis: Inferred · Source: Amendment -3 — proposed amendment
Taxpayers and state budget
A federal provision enacted in 2024 increases taxes or restricts benefits; Oregon automatically incorporates it, raising state tax liabilities for public employees and taxpayers without targeted state legislative review, potentially creating budget shortfalls or compliance burdens that require rapid administrative correction.
Basis: Inferred · Source: Amendment -3 — proposed amendment
The text legally permits automatic alignment with federal law to maintain consistency and reduce administrative lag. A potential unlawful outcome could arise if weak enforcement or misclassification of the newly defined 'hazardous position' (ORS 238A.005) leads to improper pension credit allocations or benefit eligibility, though the statute strictly limits the definition to specific state roles and duties. Duty creep is unlikely given the precise statutory boundaries, but administrative misapplication could result in unauthorized benefit payouts.
Sources · Amendment -3 — proposed amendment
The measure trades direct legislative oversight of individual federal tax changes for administrative efficiency and automatic alignment with federal policy. Upsides include reduced lag between federal and state law, minimized compliance confusion, and prevention of Oregon automatically adopting outdated or expired federal provisions. Downsides include removal of targeted legislative control over specific federal changes that may impact state revenue or taxpayer obligations, potentially incorporating unfavorable federal rules without direct state debate.
Reduces lag between federal and state law, minimizes compliance confusion, and prevents Oregon from automatically adopting outdated or expired federal provisions.
Basis: Inferred · Source: Amendment -3 — proposed amendment
Removes direct legislative control over specific federal tax changes that may impact state revenue or taxpayer obligations, potentially incorporating unfavorable federal rules without targeted state debate.
Basis: Inferred · Source: Amendment -3 — proposed amendment
high confidence. Analysis is grounded in the explicit statutory text of the proposed amendment and official Legislative Revenue Office and Fiscal Office impact statements. No speculation is presented as fact.
Decision brief generation failed. The existing briefs were preserved and this version can be retried.
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Introduced bill text posted
Posted Jan 28, 2026, 3:25 PM PST
Follow the official text for SB 1507 and every amendment branch. Connections come from each amendment's stated base. Horizontal position shows when each document was first posted, when available. Dotted links flag likely related proposals based on their text.
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Selected document summary
Substantial replacement
What the document says to change
Delete lines 5 through 27 and delete pages 2 through 5 and insert:
Inferred policy relationships
Likely revised proposal · Amendment -5
High confidence from shared inserted text: IRC §1202, IRC §168(k), IRC §32, IRC §32(m), ORS 29, Federal tax addback, Tax credit, Tax deduction, Employment requirement.
Likely revised proposal · Amendment -6
High confidence from shared inserted text: IRC §1202, IRC §168(k), IRC §32, IRC §32(m), ORS 314.085, Federal tax addback, Tax credit, Tax deduction, Employment requirement.
Likely revised proposal · Amendment -7
High confidence from shared inserted text: IRC §1202, IRC §168(k), IRC §32, IRC §32(m), ORS 314.085, Federal tax addback, Tax credit, Tax deduction, Employment requirement.
This is a text-based early signal, not an official statement that one amendment changes the other.
Official records (1)
Oregon records no individual sponsors.
Presession filing record
Printed pursuant to Senate Interim Rule 213.28 by order of the President of the Senate in conformance with presession filing rules, indicating neither advocacy nor opposition on the part of the President.
LC 302 became SB 1507
Mapping document posted: January 2, 2026 at 2:56 PM PST
Work Session — 10:45 - 11:00 Introduction of Committee Bills LC 153 Estate Tax LC 254 Miscellaneous Corrections and Policy Updates LC 302 Tax Reform
Senate Interim Committee on Finance and Revenue introduction work session
Committee meeting: January 13, 2026 at 8:30 AM PST
HR A
Committee introduction motion
Committee meeting: January 13, 2026 at 8:30 AM PST
Vice-Chair McLane moved to adopt the listed legislative concepts as committee bills. Motion Passed. No objections
Committee introduction allows consideration; it does not imply every member supported the introduced or final text.
The text changed substantially while keeping measure number SB 1507.
Senate carrier
Senator Anthony Broadman
Consideration Of Committee and Minority Reports · Version A
Senate carrier
Senator Anthony Broadman
Third Reading and Final Consideration · Version A
Senate carrier
Senator Mike McLane
Consideration Of Committee and Minority Reports · Version A
House carrier
Representative Nancy Nathanson
Third Reading Of Senate Bills · Version A
A carrier presents the measure or report but is not necessarily its sponsor or author.
Records already listed in Activity are not repeated here.
64 events
Full timeline
64 entries shown.
Effective date, June 5, 2026.
Chapter 142, 2026 Laws.
Governor signed.
Governor issued signing letter
Speaker signed.
President signed.
Passed.
Ayes, 34; Nays, 21--Boice, Breese-Iverson, Bunch, Cate, Diehl, Edwards, Elmer, Harbick, Helfrich, Levy B, Lewis, Mannix, McIntire, Osborne, Owens, Reschke, Skarlatos, Smith G, Wallan, Wright, Yunker; Excused, 4--Hartman, Lively, Scharf, Valderrama; Excused for Business of the House, 1--Boshart Davis.
Motion to re-refer to Revenue failed.
Ayes, 19; Nays, 33--Andersen, Bowman, Chaichi, Chotzen, Dobson, Evans, Fragala, Gamba, Gomberg, Grayber, Helm, Hudson, Isadore, Javadi, Kropf, Marsh, McDonald, McLain, Munoz, Nathanson, Nelson, Nguyen D, Nosse, Pham H, Rieke Smith, Ruiz, Sanchez, Sosa, Tran, Walters, Watanabe, Wise, Speaker Fahey; Excused, 4--Hartman, Lively, Scharf, Valderrama; Excused for Business of the House, 4--Boshart Davis, Levy E, Mannix, Owens.
Third reading. Carried by Nathanson.
Second reading.
Recommendation: Do pass.
Work Session held.
Work Session
Heard and Reported Out · Agenda item 3 · Room HR A · Updates the connection date to the federal Internal Revenue Code and other provisions of federal tax law.
RIS SB 1507 A
Revenue Impact Statement
Amendment -A12 proposed
Amendment -A10 proposed
Amendment -A11 proposed
Public Hearing held.
Public Hearing
Heard · Agenda item 1 · Room HR A · Updates the connection date to the federal Internal Revenue Code and other provisions of federal tax law.
Revenue impact material — Section Contents SB 1507 A
Meeting Material
Amendment -A12 proposed
Amendment -A11 proposed
Amendment -A10 proposed
Referred to Revenue.
First reading. Referred to Speaker's desk.
Vote explanation(s) filed by Starr.
Rules suspended. Third reading. Carried by Broadman. Passed.
Ayes, 17; Nays, 13--Anderson, Drazan, Girod, Hayden, Linthicum, McLane, Meek, Nash, Robinson, Smith DB, Starr, Thatcher, Weber.
Rules suspended. Motion to substitute Minority Report for Committee Report failed.
Ayes, 12; Nays, 18--Broadman, Campos, Frederick, Gelser Blouin, Golden, Gorsek, Jama, Lieber, Manning Jr, Meek, Neron Misslin, Patterson, Pham, Prozanski, Reynolds, Sollman, Taylor, President Wagner.
Second reading.
Minority Report A-Engrossed bill text posted
Senate Minority Amendments to Introduced bill text posted
Senate Amendments to Introduced bill text posted
Minority Recommendation: Do pass with different amendments. (Printed A-Eng. Minority)
Recommendation: Do pass with amendments. (Printed A-Eng).
Work Session held.
Work Session
Heard and Reported Out with Amendments · Agenda item 2 · Room HR A · Reduces taxes imposed under various tax programs, operative conditioned upon imposition of a statewide retail sales tax dedicated to specified purposes.
Amendment -MR8 minority report
Amendment -9 adopted
Revenue impact material — SB 1507 -7 Section Contents
Meeting Material
RIS SB 1507 -3
Revenue Impact Statement
RIS SB 1507 -7
Revenue Impact Statement
Amendment -7 adopted
Amendment -6 proposed
Amendment -3 adopted
Revenue impact material — SB 1507 -3 Section Contents
Meeting Material
Public Hearing held.
Public Hearing
Heard · Agenda item 4 · Room HR A · Reduces taxes imposed under various tax programs, operative conditioned upon imposition of a statewide retail sales tax dedicated to specified purposes.
Revenue impact material — SB 1507 -5 Section Contents
Meeting Material
Revenue impact material — SB 1507 -3 Section Contents
Meeting Material
Amendment -5 proposed
Amendment -3 proposed
Amendment -4 proposed
Referred to Finance and Revenue.
Introduction and first reading. Referred to President's desk.
e 3, after “285C.210” insert “and section 12, chapter 2 ___, Oregon Laws 2026 (Enrolled Senate Bill 1507)”. 3 On page 6, line 44, after “(1)” insert “(a)”. 4 On page 7, after line 3,
3 1507)”. 4 On page 14, delete lines 18 and 19 and insert: 5 “SECTION 18. If Senate Bill 1507 becomes law, section 12, chapter 6 , Oregon Laws 2026 (Enrolled Senate Bill 15
285C.200, 285C.205 and 285C.210 and section 12, chapter ___, Oregon Laws 2026 (Enrolled Senate Bill 1507); and prescribing an effective date. Be It Enacted by the People of the State
18. If Senate Bill 1507 becomes law, section 12, chapter 6 , Oregon Laws 2026 (Enrolled Senate Bill 1507), is amended to read: 7 “ Sec. 12. [(1) A credit against taxes that are otherw
29.”. 18 On page 14, delete lines 11 through 19 and insert: 19 “ SECTION 16. If Senate Bill 1507 becomes law, section 12, chapter , Oregon Laws 2026 20 (Enrolled Senate Bill 15
29.”. 1 On page 14, delete lines 11 through 19 and insert: 2 “SECTION 16. If Senate Bill 1507 becomes law, section 12, chapter 3 , Oregon Laws 2026 (Enrolled Senate Bill 15
old use, retail sales, or operating fulfillment center. Income Tax Credit If Senate Bill 1507 (2026) becomes law, adds an additional requirement that taxpayers must operate
16. If Senate Bill 1507 becomes law, section 12, chapter , Oregon Laws 2026 20 (Enrolled Senate Bill 1507), is amended to read: 21 “ Sec. 12. [(1) A credit against taxes that are otherw
16. If Senate Bill 1507 becomes law, section 12, chapter 3 , Oregon Laws 2026 (Enrolled Senate Bill 1507), is amended to read: 4 “ Sec. 12. [(1) A credit against taxes that are otherw
old use, retail sales, or operating fulfillment center. Income Tax Credit If Senate Bill 1507 (2026) becomes law, adds an additional requirement that taxpayers must operate
determinate fiscal impact for counties. Measure Description The measure amends SB 1507 (2026), if it becomes law, to limit the tax credit for job creation to certain
5C.200, 285C.205 and 285C.210 and section 12, chapter 4 ___, Oregon Laws 2026 (Enrolled Senate Bill 1507); and prescribing an effective date. 5 Be It Enacted by the People of the Stat
ppropriation to OBDD for deposit into the Industrial Site Loan Fund. Modifies SB 1507 (2026) to limit the tax credit for job creation to certain specified qualified
it under this measure represents a decrease from the agency’s fiscal impact for SB 1507, due to a reduction in estimated annual certification applications. A total of
y been included in the omnibus budget reconciliation bill for administration of SB 1507. Should this measure become law, the Lottery Funds ($504,456) and position auth
a pe- riod of suspension as otherwise provided in ORS 285C.203. SECTION 16. If Senate Bill 1507 becomes law, section 12, chapter , Oregon Laws 2026 (Enrolled Senate Bill 1507)
ON 16. If Senate Bill 1507 becomes law, section 12, chapter , Oregon Laws 2026 (Enrolled Senate Bill 1507), is amended to read: Sec. 12. [(1) A credit against taxes that are otherwise
28 riod of suspension as otherwise provided in ORS 285C.203. 29 SECTION 16. If Senate Bill 1507 becomes law, section 12, chapter , Oregon Laws 2026 30 (Enrolled Senate Bill 15
16. If Senate Bill 1507 becomes law, section 12, chapter , Oregon Laws 2026 30 (Enrolled Senate Bill 1507), is amended to read: 31 Sec. 12. [(1) A credit against taxes that are otherwis
, is increased by $58,534, for implementation of chapter ___, Oregon Laws 2026 (Enrolled Senate Bill 1507). SECTION 32. Notwithstanding any other law limiting expenditures, the limitat
n, is increased by $1,473, for implementation of chapter ___, Oregon Laws 2026 (Enrolled Senate Bill 1507). SECTION 33. In addition to and not in lieu of any other appropriation, there
12 creased by $58,534, for implementation of chapter ___, Oregon Laws 13 2026 (Enrolled Senate Bill 1507). 14 “SECTION 32. Notwithstanding any other law limiting expenditures, 15 the l
12 creased by $58,534, for implementation of chapter ___, Oregon Laws 13 2026 (Enrolled Senate Bill 1507). 14 “SECTION 32. Notwithstanding any other law limiting expenditures, 15 the l
is increased by $1,473, for implementation of chapter ___, 3 Oregon Laws 2026 (Enrolled Senate Bill 1507). 4 “ SECTION 33. In addition to and not in lieu of any other appropriation, t
s increased 4 by $58,534, for implementation of chapter ___, Oregon Laws 2026 (Enrolled Senate Bill 1507). 5 SECTION 32. Notwithstanding any other law limiting expenditures, the limit
is increased by $1,473, for implementation 23 of chapter ___, Oregon Laws 2026 (Enrolled Senate Bill 1507). 24 “SECTION 33. In addition to and not in lieu of any other appropri- 25 atio
is increased by $1,473, for implementation 23 of chapter ___, Oregon Laws 2026 (Enrolled Senate Bill 1507). 24 “SECTION 33. In addition to and not in lieu of any other appropri- 25 atio
is increased by $1,473, for implementation of chapter ___, 12 Oregon Laws 2026 (Enrolled Senate Bill 1507). 13 SECTION 33. In addition to and not in lieu of any other appropriation, the
s increased by $167,011, for implementa- tion of chapter ___, Oregon Laws 2026 (Enrolled Senate Bill 1507). SECTION 80. Notwithstanding any other law limiting expenditures, the limitat
s increased by $1,142,010, for implementation of chapter ___, Oregon Laws 2026 (Enrolled Senate Bill 1507). SECTION 81. In addition to and not in lieu of any other appropriation, there
ncreased by $167,011, for implementa- 38 tion of chapter ___, Oregon Laws 2026 (Enrolled Senate Bill 1507). 39 “ SECTION 80. Notwithstanding any other law limiting expenditures, the lim
ncreased by 44 $1,142,010, for implementation of chapter ___, Oregon Laws 2026 (Enrolled Senate Bill 1507). 45 “ SECTION 81. In addition to and not in lieu of any other appropriation, t
ncreased by $167,011, for implementa- 2 tion of chapter ___, Oregon Laws 2026 (Enrolled Senate Bill 1507). 3 SECTION 80. Notwithstanding any other law limiting expenditures, the limit
1,473 Other Funds, and one permanent full-time position (0.25 FTE) to implement SB 1507 (2026), which updates Oregon’s connection date to the federal Internal Revenue
1,473 Other Funds, and one permanent full-time position (0.25 FTE) to implement SB 1507 (2026), which updates Oregon’s connection date to the federal Internal Revenue
ncreased by 8 $1,142,010, for implementation of chapter ___, Oregon Laws 2026 (Enrolled Senate Bill 1507). 9 SECTION 81. In addition to and not in lieu of any other appropriation, the
1,473 Other Funds, and one permanent full-time position (0.25 FTE) to implement SB 1507 (2026), which updates Oregon’s connection date to the federal Internal Revenue
1,473 Other Funds, and one permanent full-time position (0.25 FTE) to implement SB 1507 (2026), which updates Oregon’s connection date to the federal Internal Revenue
11 creased by $167,011, for implementation of chapter ___, Oregon Laws 12 2026 (Enrolled Senate Bill 1507). 13 “SECTION 80. Notwithstanding any other law limiting expenditures, 14 the l
11 creased by $167,011, for implementation of chapter ___, Oregon Laws 12 2026 (Enrolled Senate Bill 1507). 13 “SECTION 80. Notwithstanding any other law limiting expenditures, 14 the l
ncreased by $1,142,010, for implementation of chapter ___, 20 Oregon Laws 2026 (Enrolled Senate Bill 1507). 21 “SECTION 81. In addition to and not in lieu of any other appropri- 22 atio
ncreased by $1,142,010, for implementation of chapter ___, 20 Oregon Laws 2026 (Enrolled Senate Bill 1507). 21 “SECTION 81. In addition to and not in lieu of any other appropri- 22 atio
d $1.3 million Lottery Funds and 16 permanent positions (3.50 FTE) to implement SB 1507 (2026), which updates Oregon’s connection date to the federal IRC to December 3
d $1.3 million Lottery Funds and 16 permanent positions (3.50 FTE) to implement SB 1507 (2026), which updates Oregon’s connection date to the federal IRC to December 3
d $1.3 million Lottery Funds and 16 permanent positions (3.50 FTE) to implement SB 1507 (2026), which updates Oregon’s connection date to the federal IRC to December 3
d $1.3 million Lottery Funds and 16 permanent positions (3.50 FTE) to implement SB 1507 (2026), which updates Oregon’s connection date to the federal IRC to December 3
rt: 2 “SECTION 7a. Notwithstanding section 32, chapter ___, Oregon 3 Laws 2026 (Enrolled Senate Bill 1507) (amending ORS 305.494), if Senate 4 Bill 1507 becomes law, ORS 305.494 is repe
rt: 2 “SECTION 7a. Notwithstanding section 32, chapter ___, Oregon 3 Laws 2026 (Enrolled Senate Bill 1507) (amending ORS 305.494), if Senate 4 Bill 1507 becomes law, ORS 305.494 is repe
rt: 2 “SECTION 7a. Notwithstanding section 32, chapter ___, Oregon 3 Laws 2026 (Enrolled Senate Bill 1507) (amending ORS 305.494), if Senate 4 Bill 1507 becomes law, ORS 305.494 is repe
__, Oregon Laws 2026 (Enrolled Sen- 3 ate Bill 1507) (amending ORS 305.494), if Senate Bill 1507 becomes law, ORS 305.494 is repealed 4 by section 7 of this 2026 Act.”. 5 LC
o proceedings that start on or after January 1, 2027 Resolves a conflict with Senate Bill 1507 (2026) ISSUES DISCUSSED: Mission of the Magistrate Division to simplify tax m
ax Court Magistrate Division EFFECT OF AMENDMENT: This is a conflict amendment. SB 1507 modifies a date in ORS 305.494, and Senate Bill 1556 A repeals ORS 305.494. The
5.494, and Senate Bill 1556 A repeals ORS 305.494. The amendment states that if SB 1507 becomes law, ORS 305.494 is repealed. BACKGROUND: The Oregon Tax Court is part
er ___, Oregon Laws 2026 (Enrolled Senate Bill 1507) (amending ORS 305.494), if Senate Bill 1507 becomes law, ORS 305.494 is repealed by section 7 of this 2026 Act. SECTION 8.
___, Oregon Laws 2026 (Enrolled Senate 5 Bill 1507) (amending ORS 305.494), if Senate Bill 1507 becomes law, ORS 305.494 is repealed 6 by section 7 of this 2026 Act. 7 SECTI
et of reductions; $167,011 for the administration of new tax credit program in SB 1507; $235,846 for administration of a micro-tariff adjustment grant program in HB
et of reductions; $167,011 for the administration of new tax credit program in SB 1507; $235,846 for administration of a micro-tariff adjustment grant program in HB
f reductions; $1.1 million for the administration of new tax credit program in SB 1507; $950,000 for micro-tariff adjustment grant funding in HB 4061 o Infrastructu
f reductions; $1.1 million for the administration of new tax credit program in SB 1507; $950,000 for micro-tariff adjustment grant funding in HB 4061 o Infrastructu
to other wholesalers. 29 “ SECTION 29. ORS 317A.100, as amended by section 20, chapter 4, Oregon Laws 2025, and 30 section 6, chapter 502, Oregon Laws 2025, is amended to read: 31 “317A.
or to other wholesalers. 39 SECTION 29. ORS 317A.100, as amended by section 20, chapter 4, Oregon Laws 2025, and sec- 40 tion 6, chapter 502, Oregon Laws 2025, is amended to read: 41 317A
s or to other wholesalers. SECTION 44. ORS 317A.100, as amended by section 20, chapter 4, Oregon Laws 2025, and sec- tion 6, chapter 502, Oregon Laws 2025, is amended to read: 317A.100.
to other wholesalers. 13 “ SECTION 44. ORS 317A.100, as amended by section 20, chapter 4, Oregon Laws 2025, and 14 section 6, chapter 502, Oregon Laws 2025, is amended to read: 15 “317A.
or to other wholesalers. 24 SECTION 44. ORS 317A.100, as amended by section 20, chapter 4, Oregon Laws 2025, and sec- 25 tion 6, chapter 502, Oregon Laws 2025, is amended to read: 26 317A
isions of this section. 31 “ SECTION 28. ORS 317A.100, as amended by section 6, chapter 502, Oregon Laws 2025, is 32 amended to read: 33 “317A.100. As used in ORS 317A.100 to 317A.158: 34 “
ovisions of this section. 42 SECTION 28. ORS 317A.100, as amended by section 6, chapter 502, Oregon Laws 2025, is 43 amended to read: 44 317A.100. As used in ORS 317A.100 to 317A.158: 45 (1
provisions of this section. SECTION 43. ORS 317A.100, as amended by section 6, chapter 502, Oregon Laws 2025, is amended to read: 317A.100. As used in ORS 317A.100 to 317A.158: (1)(a) “C
isions of this section. 15 “ SECTION 43. ORS 317A.100, as amended by section 6, chapter 502, Oregon Laws 2025, is 16 amended to read: 17 “317A.100. As used in ORS 317A.100 to 317A.158: 18 “
ovisions of this section. 27 SECTION 43. ORS 317A.100, as amended by section 6, chapter 502, Oregon Laws 2025, is 28 amended to read: 29 317A.100. As used in ORS 317A.100 to 317A.158: 30 (1
A.100, as amended by section 20, chapter 4, Oregon Laws 2025, and 30 section 6, chapter 502, Oregon Laws 2025, is amended to read: 31 “317A.100. As used in ORS 317A.100 to 317A.158: 32 “(1)
100, as amended by section 20, chapter 4, Oregon Laws 2025, and sec- 40 tion 6, chapter 502, Oregon Laws 2025, is amended to read: 41 317A.100. As used in ORS 317A.100 to 317A.158: 42 (1)(a
A.100, as amended by section 20, chapter 4, 16 Oregon Laws 2025, and section 6, chapter 502, Oregon Laws 2025, is amended 17 to read: 18 “317A.100. As used in ORS 317A.100 to 317A.158: 19 “
A.100, as amended by section 20, chapter 4, 15 Oregon Laws 2025, and section 6, chapter 502, Oregon Laws 2025, is amended 16 to read: 17 “317A.100. As used in ORS 317A.100 to 317A.158: 18 “
A.100, as amended by section 20, chapter 4, 15 Oregon Laws 2025, and section 6, chapter 502, Oregon Laws 2025, is amended 16 to read: 17 “317A.100. As used in ORS 317A.100 to 317A.158: 18 “
A.100, as amended by section 20, chapter 4, 12 Oregon Laws 2025, and section 6, chapter 502, Oregon Laws 2025, is amended 13 to read: 14 “317A.100. As used in ORS 317A.100 to 317A.158: 15 “
A.100, as amended by section 20, chapter 4, 12 Oregon Laws 2025, and section 6, chapter 502, Oregon Laws 2025, is amended 13 to read: 14 “317A.100. As used in ORS 317A.100 to 317A.158: 15 “
7A.100, as amended by section 20, chapter 4, Oregon Laws 2025, and sec- tion 6, chapter 502, Oregon Laws 2025, is amended to read: 317A.100. As used in ORS 317A.100 to 317A.158: (1)(a) “C
A.100, as amended by section 20, chapter 4, Oregon Laws 2025, and 14 section 6, chapter 502, Oregon Laws 2025, is amended to read: 15 “317A.100. As used in ORS 317A.100 to 317A.158: 16 “(1)
100, as amended by section 20, chapter 4, Oregon Laws 2025, and sec- 25 tion 6, chapter 502, Oregon Laws 2025, is amended to read: 26 317A.100. As used in ORS 317A.100 to 317A.158: 27 (1)(a
A.100, as amended by section 20, chapter 4, 19 Oregon Laws 2025, and section 6, chapter 502, Oregon Laws 2025, is amended 20 to read: 21 “317A.100. As used in ORS 317A.100 to 317A.158: 22 “
“Effective date, June 5, 2026.”
Confirm with the official record.
Explore submitters, positions, targets, and recurring arguments.
495
Comments
221
Support
266
Oppose
8
Neutral
122
Ambiguous or mixed
3 exact duplicates retained and linked.
| Proposal target | Support | Oppose | Neutral | Unspecified | Total |
|---|---|---|---|---|---|
| Original sales-tax proposal | 0 | 103 | 2 | 0 | 105 |
| Federal-disconnect rewrite | 206 | 58 | 4 | 0 | 268 |
| Ambiguous | 15 | 105 | 2 | 0 | 122 |
| Date | Submissions |
|---|---|
| 2026-02-02 | 13 |
| 2026-02-03 | 91 |
| 2026-02-04 | 213 |
| 2026-02-05 | 160 |
| 2026-02-06 | 18 |
Proposal targets
Rubric sales-tax-vs-federal-disconnect/1. Totals come from validated records, not the model.
Official sources
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Supplemental, source-linked analysis from project researchers and community contributors. It is separate from Oregon's official record.
The January 13 hearing discussed a tax-system primer and LC 302, a contingent tax-reduction framework tied to a future retail sales tax. It did not foreshadow the federal disconnect language that later replaced the bill, and it did not identify a specific immediate revenue gap that the concept was designed to fill.
Policy Helper research desk · Updated Aug 2, 2026
Legislative Revenue Office staff compared income, property, and consumption taxes; described consumption revenue as generally less volatile than income-tax revenue; and reviewed design choices such as the taxable base, exemptions, administration, and rate. The discussion was exploratory rather than a hearing on a complete retail-sales-tax measure.
January 13, 2026 hearing video and recording logRetail Sales and Use Taxes presentation
LC 302 was described as a trigger: if Oregon separately implemented a retail sales tax, it would reduce other taxes. Introduced SB 1507 likewise required a separate statewide retail sales tax of at least 3 percent before its reductions to personal and corporate income taxes, the corporate activity tax, and estate tax could take effect.
January 13, 2026 hearing video and recording log2026 Revenue Legislative ConceptsLC 302 draftSB 1507, introduced
Article IV, section 18 requires bills for raising revenue to originate in the House, but Oregon decisions apply that phrase more narrowly than every bill relating to taxes. The introduced Senate bill did not levy or collect a retail sales tax; it conditionally reduced existing taxes if a separate sales-tax law were enacted. Under the Legislative Revenue Office's two-part description of the Oregon test, a separate measure that brought money into the treasury and contained the essential features of the sales-tax levy would ordinarily need to originate in the House, while this contingent reduction bill could proceed as a Senate measure. This is an interpretation of the cited authorities, not a court ruling on SB 1507.
Oregon Constitution, Article IV, section 18Tax Policy Fundamentals: Oregon revenue-bill testOfficial Article IV case annotationsSB 1507, introduced
The -3 amendment first replaced the introduced sales-tax-trigger framework with a two-year update to Oregon's connection to federal tax law. The -4 then replaced the measure again, adding selected disconnects, an expanded earned income tax credit, and a new-jobs credit. The -5 refined the -4 approach, and the enrolled measure retained that federal-conformity subject rather than the original sales-tax trigger.
Staff summary of the -3, -4, and -5 amendmentsSB 1507 measure overview and final documents
The committee preview treated LC 302 as the Senate's tax-reform trigger. A separate House concept, LC 190, was described as a routine point-in-time federal reconnect and expressly distinguished from the taxable-income debate. Nothing stated in the hearing connected LC 302 to a future federal disconnect replacement.
January 13, 2026 hearing video and recording log2026 Revenue Legislative ConceptsLC 302 draftStaff summary of the -3, -4, and -5 amendments
Staff estimated that a Washington-style base might yield roughly $1.2 billion per year at 1 percent or $6 billion at 5 percent. Those figures illustrated how policymakers could select a rate and rebalance Oregon's tax mix. The hearing did not quantify an immediate budget shortfall, assign a revenue target to LC 302, or say that a federal disconnect would be used to close such a gap.
January 13, 2026 hearing video and recording logRetail Sales and Use Taxes presentation
Senate Finance and Revenue hearing · 00:30:09–01:01:46
The committee reviewed stability, tax mix, revenue scale, base design, exemptions, border effects, and administration.
January 13, 2026 hearing video and recording logRetail Sales and Use Taxes presentation
Senate Finance and Revenue hearing · 01:26:52–01:28:01
Staff said implementation of a retail sales tax would trigger reductions in other taxes, including income taxes and the corporate activity tax.
January 13, 2026 hearing video and recording logLC 302 draft
SB 1507, introduced · Trigger provisions and contingent tax reductions
The introduced bill specified the characteristics the separate retail-sales-tax law would need; it did not contain the levy itself.
SB 1507-3, -4, and -5 amendments
Legislative staff described the -3 as a reconnect-only replacement, the -4 as a second replacement adding selected disconnects and credits, and the -5 as a refinement of the -4.
Staff summary of the -3, -4, and -5 amendmentsSB 1507 measure overview and final documents
Oregon Legislative Information System · Sales-tax discussion at 00:30:09; LC 302 preview at 01:26:52
A locally generated working transcript was used to search the audio; the recording remains the authoritative source.
Oregon Legislative Revenue Office
Oregon Legislative Revenue Office · Senate LC 302 and House LC 190
Oregon Legislative Information System
Oregon Legislative Information System
Oregon Legislative Revenue Office
Oregon Legislative Information System
Oregon State Legislature
Oregon Legislative Revenue Office · Page 2
Oregon State Legislature · Revenue-bill annotations for Article IV, section 18