Oregon launches grant program to aid low-income families in tax credit access

The Joint Committee on Ways and Means Subcommittee on Human Services convened on April 30, 2025, to discuss critical issues surrounding tax credits and their impact on low-income families in Oregon. The meeting highlighted the significant number of families missing out on valuable tax refunds and credits, which are essential tools for reducing poverty.

Jessica, a representative from the Oregon Center on Public Policy, emphasized the importance of tax credits, particularly the federal Earned Income Tax Credit (EITC). This credit can provide nearly $8,000 for working families with three children, lifting approximately 68,000 Oregonians out of poverty each year. Despite the potential benefits, Oregon has consistently ranked low in EITC uptake, with only 75% of eligible families claiming the credit from 2018 to 2022. This translates to over 60,000 eligible Oregonians missing out on an average of $109 million annually, which could significantly boost the state's economy.

The discussion also addressed the barriers families face when filing taxes, including the complexity of the process, lack of internet access, and the high cost of hiring tax preparers. Many families did not file during the pandemic, complicating their ability to claim credits in subsequent years. The committee acknowledged that these challenges contribute to the low uptake of tax credits in Oregon.

Meg Reinholdt from the Oregon Department of Human Services provided further insights, noting that House Bill 4,117 was passed in 2022 to ensure that low-income Oregonians receive the tax credits and refunds they are entitled to. The legislation aims to facilitate access to free tax assistance, addressing the pressing need for support among vulnerable populations.

The meeting underscored the critical role of tax credits in alleviating poverty and the necessity for improved outreach and assistance to ensure that all eligible families can benefit from these financial resources. The committee's ongoing efforts will focus on enhancing tax filing support to maximize the economic impact for low-income Oregonians.