Bill > SB1507

This bill makes several changes to Oregon tax laws, primarily by updating references to the federal Internal Revenue Code (IRC) to the end of 2025 and introducing new tax provisions. Key changes include adding back to taxable income interest paid on qualified passenger vehicle loans and gains from the sale of qualified small business stock, which were previously excluded on federal returns. It also modifies the earned income tax credit by increasing the percentage of the federal credit allowed for eligible residents. The bill introduces a new tax credit for businesses that create new jobs in Oregon, offering $1,000 per net new job, with certain wage and job creation requirements, and a cap on the total credit amount. Additionally, it adjusts how certain deductions related to depreciation (Section 168(k) of the IRC) are treated for state tax purposes, requiring an add-back of the difference between current federal allowances and those in effect as of December 1, 2017, with a corresponding subtraction in later years. The bill also updates various definitions and provisions related to retirement plans, tax administration, and specific tax credits to align with the updated federal tax code references. Finally, it establishes an effective date for these changes, generally applying to tax years beginning on or after January 1, 2026, with specific provisions for the new jobs credit applying until January 1, 2032.