Bill > HB2271

This bill introduces a tax credit for employers in Oregon with a significant reduction in their unemployment insurance tax rate between 2024 and 2025. The credit is available to employers whose tax rate decreases by at least two and a half percentage points in 2025, specifically those who had a tax rate determined in 2020 but not in any calendar year starting from 2021. The credit amount is the lesser of the employer's 2025 taxes due or $5,000, with a minimum credit threshold of $100. To qualify, employers must meet several conditions: file wage reports on time for 2024 and 2025, pay all tax liabilities timely, and either have paid all outstanding unemployment insurance taxes or be on an accepted payment plan as of January 1, 2025. The tax credit provision is temporary, set to be repealed on January 2, 2027, making it a targeted measure to provide financial relief to certain employers during this specific timeframe. The bill amends the Oregon Revised Statutes (ORS) chapter 657, which governs unemployment insurance taxes.