Bill > HB2911

This bill establishes a tax credit for small businesses that provide paid sick leave to their employees, designed to incentivize and support employers in offering this important worker benefit. The tax credit applies to businesses with 50 or fewer employees that provide paid sick leave in compliance with all federal, state, and local laws and fully pay their employees for sick leave by December 31 of the tax year. Employers must first obtain written certification of eligibility from the Department of Consumer and Business Services before claiming the credit. The credit is structured with a declining percentage of qualified sick leave wages over four tax years: 75% for 2026-2027, 50% for 2027-2028, 35% for 2028-2029, and 25% for 2029-2030. Any unused credit can be carried forward for up to three successive tax years, and the credit is available to both resident and non-resident taxpayers. The bill adds this paid sick leave tax credit to existing business tax credits and specifies that it will take effect 91 days after the 2025 legislative session adjourns, with the credit provisions applying to tax years between January 1, 2026, and January 1, 2030.

Labor and Employment

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2911