Bill

Bill > SB587


OR SB587

Relating to an income tax subtraction for amounts received in wildfire litigation; prescribing an effective date.


summary

Introduced
01/13/2025
In Committee
06/02/2025
Crossed Over
Passed
Dead

Introduced Session

2025 Legislative Measures

Bill Summary

The statement includes a measure digest written in compliance with applicable readability standards. Digest: Exempts awards from and legal fees paid in wildfire suits from corporate excise and in- come tax. (Flesch Readability Score: 76.5). Creates Oregon corporate excise and income tax subtractions for amounts received in resolution of a civil action arising from wildfire. Creates Oregon corporate excise and income tax subtractions for wildfire-related legal fees paid by plaintiffs. Allows a taxpayer to amend a return to claim a refund for earliest tax year in which subtraction is allowed. Applies to declarations and executive orders issued on or after January 1, 2018, and before January 1, 2026, and to amounts received, losses incurred and legal fees paid in tax years beginning on or after January 1, 2018. Takes effect on the 91st day following adjournment sine die.

AI Summary

This bill provides tax relief for individuals and businesses affected by wildfires by creating income tax subtraction opportunities for amounts received in wildfire litigation and related legal fees. Specifically, the bill allows taxpayers to subtract from their federal taxable income any amounts received in judgment or settlement of civil actions arising from wildfires that were the subject of a state of emergency, an executive order invoking the Emergency Conflagration Act, or a federally declared disaster. The tax subtraction is only permitted for amounts not already claimed as a deduction on federal tax returns and only to the extent that losses are not already compensated by insurance. Additionally, taxpayers can subtract legal fees incurred in wildfire-related litigation, regardless of whether they itemize deductions. The bill applies to declarations and executive orders issued between January 1, 2018, and January 1, 2026, and allows taxpayers to file amended returns to claim refunds for tax years beginning on or after January 1, 2018, with a deadline of May 15, 2028, for filing such claims. The bill takes effect 91 days after the adjournment of the 2025 regular legislative session, providing retroactive tax relief for wildfire victims.

Committee Categories

Budget and Finance

Sponsors (12)

Last Action

Public Hearing Scheduled. (on 06/10/2025)

bill text


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bill summary

Document Type Source Location
State Bill Page https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB587
SB 587 A Preliminary SMS https://olis.oregonlegislature.gov/liz/2025R1/Downloads/CommitteeMeetingDocument/308210
Open Government Impact Statement for SB587 A https://olis.oregonlegislature.gov/liz/2025R1/Downloads/MeasureAnalysisDocument/92785
BillText https://olis.oregonlegislature.gov/liz/2025R1/Downloads/MeasureDocument/SB587/Senate%20Amendments%20to%20Introduced
BillText https://olis.oregonlegislature.gov/liz/2025R1/Downloads/MeasureDocument/SB587/A-Engrossed
Staff Measure Summary for SB587 A (Senate) for the Senate Committee On Finance and Revenue https://olis.oregonlegislature.gov/liz/2025R1/Downloads/MeasureAnalysisDocument/92682
SB 587 -1 Preliminary SMS https://olis.oregonlegislature.gov/liz/2025R1/Downloads/CommitteeMeetingDocument/307129
Fiscal Impact Statement for SB587 A https://olis.oregonlegislature.gov/liz/2025R1/Downloads/MeasureAnalysisDocument/92525
FIS 587-1 https://olis.oregonlegislature.gov/liz/2025R1/Downloads/CommitteeMeetingDocument/307253
RIS SB 587 1 https://olis.oregonlegislature.gov/liz/2025R1/Downloads/CommitteeMeetingDocument/307215
Revenue Impact Statement for SB587 A https://olis.oregonlegislature.gov/liz/2025R1/Downloads/MeasureAnalysisDocument/92596
Senate Committee On Finance and Revenue (2025-05-28) https://olis.oregonlegislature.gov/liz/2025R1/Downloads/ProposedAmendment/29333
Fiscal Impact Statement for SB587 INTRO https://olis.oregonlegislature.gov/liz/2025R1/Downloads/MeasureAnalysisDocument/92372
SB 587 (Witness Registration) https://olis.oregonlegislature.gov/liz/2025R1/Downloads/CommitteeMeetingDocument/299924
SB 587 Preliminary SMS https://olis.oregonlegislature.gov/liz/2025R1/Downloads/CommitteeMeetingDocument/299715
SB 587 Preliminary SMS https://olis.oregonlegislature.gov/liz/2025R1/Downloads/CommitteeMeetingDocument/299472
Open Government Impact Statement for SB587 INTRO https://olis.oregonlegislature.gov/liz/2025R1/Downloads/MeasureAnalysisDocument/84782
BillText https://olis.oregonlegislature.gov/liz/2025R1/Downloads/MeasureDocument/SB587/Introduced
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