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
01/13/2025
In Committee
06/02/2025
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)
Ed Diehl (R)*,
Mark Meek (D)*,
Lucetta Elmer (R),
David Gomberg (D),
Kevin Mannix (R),
Daniel Nguyen (D),
Hoa Nguyen (D),
Virgle Osborne (R),
Anna Scharf (R),
David Smith (R),
Bruce Starr (R),
Boomer Wright (R),
Last Action
Public Hearing Scheduled. (on 06/10/2025)
Official Document
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