Bill > HB3120

This bill modifies Oregon's Earned Income Tax Credit (EITC), which is a state-level tax credit designed to provide financial support to low and moderate-income working individuals and families. The bill increases the percentage of the federal earned income tax credit that Oregon taxpayers can claim against their state personal income tax from 9% to 12%, and introduces a tiered percentage system based on the age of the taxpayer's youngest dependent. Specifically, taxpayers with a dependent under three years old will be eligible for an 18% credit, while those with a youngest dependent between three and six years old will receive a 15% credit. The bill extends the sunset provision for this tax credit to apply to tax years beginning before January 1, 2032, ensuring continued support for working families during this period. The changes will take effect on the 91st day following the adjournment of the 2025 regular legislative session. The bill allows taxpayers to claim the credit using either a Social Security number or an Individual Taxpayer Identification Number (ITIN), making the credit more accessible to a broader range of working individuals, including some immigrants who pay taxes but may not have a Social Security number.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB3120