Bill > SB21

This bill creates a new tax credit for employers who hire foster children or former foster children, designed to incentivize employment opportunities for this vulnerable population. Under the proposed legislation, eligible employers doing business in Oregon can claim a tax credit equal to 40% of wages paid to a foster or former foster child, with a maximum credit of $2,400 per eligible employee. To claim the credit, employers must first obtain written certification of eligibility from the Employment Department. The tax credit can be used against personal income taxes (ORS chapter 316) or corporate excise taxes (ORS chapters 317 or 318), and any unused credit can be carried forward for up to three successive tax years. The bill defines "foster child" and "former foster child" by referencing existing Oregon statutes, and requires the Department of Human Services and Employment Department to develop rules for implementing and verifying taxpayer eligibility. This tax credit will be available for tax years beginning between January 1, 2026, and January 1, 2032, and will take effect 91 days after the adjournment of the 2025 legislative session, with the goal of supporting employment opportunities and economic stability for individuals who have been in the foster care system.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB21