Oregon SB1507 Updates Federal Tax Tie Date, Expands EITC, Creates New Jobs Credit
Summary
Oregon Governor signed SB1507 into law, updating the state's tie date to the federal Internal Revenue Code and other federal tax provisions. The Act expands the Earned Income Tax Credit and creates a new personal income or corporate excise tax credit for taxpayers creating new jobs. The bill disconnects from certain federal provisions including personal auto loan interest deductions, bonus depreciation, and small business stock gain exclusions.
What changed
Oregon SB1507 enacts significant changes to state tax law by updating the connection date to the federal Internal Revenue Code and other federal tax provisions. The Act increases the Earned Income Tax Credit as a percentage of the federal EITC and creates a new tax credit for taxpayers who create new jobs during the tax year. The bill also requires addback of certain federal deductions previously allowed, including personal auto loan interest, bonus depreciation, and small business stock gain exclusions.
Oregon taxpayers and businesses should prepare for modified tax calculations beginning with tax year 2026. The new jobs credit is available for six years (2026-2031) and provides an incentive for employment growth. Tax professionals should update compliance systems to handle the required addbacks for federal provisions Oregon is now disconnecting from, which may increase taxable income for affected taxpayers.
What to do next
- Review current tax position for auto loan interest, bonus depreciation, and small business stock provisions that now require addback
- Assess eligibility for new jobs tax credit for tax years 2026-2031
- Update tax compliance procedures for 2026 tax year using updated federal tie date provisions
Archived snapshot
Apr 10, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
ChangeBridge / Oregon / SB1507 Signed by Governor SB1507 Senate Bill Signed by Governor 2026-04-09
Relating to revenue; and prescribing an effective date.
The Act updates the tie date to the federal Internal Revenue Code and other federal tax laws. Disconnects from certain federal tax laws. Increases the amount of the earned income tax credit. Makes a new tax credit for new jobs. (Flesch Readability Score: 67.6). [Digest: The Act would reduce income taxes and other taxes if the state collects a retail sales tax. (Flesch Readability Score: 70.1).] [Reduces taxes imposed under various tax programs, operative conditioned upon imposition of a statewide retail sales tax dedicated to specified purposes. Directs the Department of Revenue to estimate the revenue lost to tax reductions and to direct an equal amount of revenue to various purposes.] Updates the connection date to the federal Internal Revenue Code and other provisions of federal tax law. Increases the amount of the earned income tax credit allowed as a percentage of the federal earned income tax credit. Disconnects from, and requires addback of amounts for, federal provisions allowing deductions of personal auto loan interest and bonus depreciation and allowing exclusion of gain from small business stock. Applies to tax years beginning on or after January 1, 2026. Creates a personal income or corporate excise tax credit for a taxpayer creating new jobs in the tax year. Applies to tax years beginning on or after January 1, 2026, and before January 1, 2032. Takes effect on the 91st day following adjournment sine die.
Bill Details
State Oregon
Session 2026 Legislative Measures
Chamber Senate
Official Source olis.oregonlegislature.gov/liz/2026R1/Meas...
LegiScan View on LegiScan
Action History
2026-04-09 S Governor signed. 2026-03-04 H Speaker signed. 2026-02-27 S President signed. 2026-02-25 H 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. 2026-02-25 H 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. 2026-02-25 H Third reading. Carried by Nathanson. 2026-02-24 H Second reading. 2026-02-20 H Recommendation: Do pass. 2026-02-19 H Work Session held. 2026-02-18 H Public Hearing held. 2026-02-16 H Referred to Revenue. 2026-02-16 H First reading. Referred to Speaker's desk. 2026-02-16 S Vote explanation(s) filed by Starr. 2026-02-16 S 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. 2026-02-16 S 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. 2026-02-16 S Second reading. 2026-02-13 S Minority Recommendation: Do pass with different amendments. (Printed A-Eng. Minority) 2026-02-13 S Recommendation: Do pass with amendments. (Printed A-Eng). 2026-02-09 S Work Session held. 2026-02-04 S Public Hearing held. 2026-02-02 S Referred to Finance and Revenue. 2026-02-02 S Introduction and first reading. Referred to President's desk.
Votes
2026-02-09 Senate Committee Do pass with amendments. (Printed A-Eng.) Yea: 3 Nay: 2 2026-02-16 Senate Motion to substitute Minority Report Yea: 12 Nay: 18 2026-02-16 Senate Third Reading Yea: 17 Nay: 13 2026-02-19 House Committee Do Pass the A-Eng bill Yea: 4 Nay: 2 2026-02-25 House Motion to Rerefer Yea: 19 Nay: 33 2026-02-25 House Third Reading Yea: 34 Nay: 21
Committee Referrals
2026-02-02 S Finance and Revenue 2026-02-16 H Revenue
Amendments
2026-02-04 Senate Committee On Finance and Revenue Amendment #-4 2026-02-04 Senate Committee On Finance and Revenue Amendment #-3 2026-02-04 Senate Committee On Finance and Revenue Amendment #-5 2026-02-09 Senate Committee On Finance and Revenue Amendment #3 2026-02-09 Senate Committee On Finance and Revenue Amendment #6 2026-02-09 Senate Committee On Finance and Revenue Amendment #-7 2026-02-09 Senate Committee On Finance and Revenue Amendment #-9 2026-02-09 Senate Committee On Finance and Revenue Amendment #-MR8 2026-02-18 House Committee On Revenue Amendment #-A10 2026-02-18 House Committee On Revenue Amendment #-A11 2026-02-18 House Committee On Revenue Amendment #-A12 2026-02-19 House Committee On Revenue Amendment #-A11 2026-02-19 House Committee On Revenue Amendment #-A10 2026-02-19 House Committee On Revenue Amendment #-A12
Bill Text Versions
0000-00-00 Introduced 0000-00-00 Introduced 0000-00-00 Introduced 0000-00-00 Engrossed 0000-00-00 Engrossed 0000-00-00 Enrolled Legislative data powered by LegiScan (CC BY 4.0)
Named provisions
Related changes
Get daily alerts for Oregon Legislative Events
Daily digest delivered to your inbox.
Free. Unsubscribe anytime.
About this page
Every important government, regulator, and court update from around the world. One place. Real-time. Free. Our mission
Source document text, dates, docket IDs, and authority are extracted directly from Oregon Legislature.
The plain-English summary, classification, and "what to do next" steps are AI-generated from the original text. Cite the source document, not the AI analysis.
Classification
Who this affects
Taxonomy
Browse Categories
Get alerts for this source
We'll email you when Oregon Legislative Events publishes new changes.
Subscribed!
Optional. Filters your digest to exactly the updates that matter to you.