House revenue panel advances two-year extension of Oregon’s SALT workaround, SB 111A

The House Committee on Revenue voted Friday, June 20, 2025, to send Senate Bill 111A to the House floor with a “do pass” recommendation after adopting an amendment that narrows the bill’s changes.

The bill would extend Oregon’s business alternative income tax — the state’s SALT (state and local tax) workaround for pass-through entities — for two additional tax years ('26 and '27) and permit certain overpayments to be carried forward. Lawmakers adopted a dash-a8 amendment that removes an expansion to allow trusts to participate and drops a proposed individual-member opt-out; committee members then moved the bill as amended to the floor with a due-pass recommendation.

Senate Bill 111A would continue Oregon’s program that lets pass-through entities (such as S corporations and partnerships) pay a tax at the entity level, with individual owners receiving a credit for that tax on their Oregon returns. The mechanism was designed in response to federal changes limiting the deductibility of state and local…