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Committee advances bill to expand Oregon earned-income tax credit, adds amendment raising credit rates
Summary
The House Committee on Revenue voted to move House Bill 2,958, with a dash 2 amendment that extends the earned-income tax credit (EITC) sunset six years and raises Oregon's credit percentages; committee members noted the bill will face fiscal scrutiny in later budget stages.
The House Committee on Revenue on May 22 voted to send House Bill 2,958 to the floor with a due-pass recommendation after adopting the dash 2 amendment, which extends the Earned Income Tax Credit (EITC) sunset six years and increases Oregon’s EITC percentages relative to the federal credit.
The amendment approved in committee raises Oregon’s EITC percentage from 9% to 20% of the federal credit generally, and from 12% to 25% of the federal credit for filers with a dependent under age 3. The amendment also removes prior language that would have expanded eligibility for childless taxpayers ages 18 and older and adds a provision allowing for quarterly advance payments of the credit under certain circumstances.
“Kyle” (staff) told the committee the combined effect of extending the sunset and raising the credit would increase the 2025–27 biennium revenue cost to about $115,000,000: “Using 2,527 it would be about, we’re expecting $115,000,000 That would be the 6 year extension, which is the 53, plus the expansion.” The committee adopted the dash 2 amendment by voice vote; Vice Chair Walters moved both the amendment and the main motion to send the bill to the floor with a subsequent referral to the Joint Committee on Tax Expenditures, and the motions passed.
Representative Smith voiced public support for the bill and praised Representative Ruiz’s work on the measure. Representative Marsh cautioned that moving the bill forward at this stage is procedural and does not guarantee final passage, noting budget pressures: “...given our budget situation, given what’s happening at the federal government that’s likely to create more challenges to serve our safety net services, funding this addition is going to be a very hard lift… they should not assume that means anything about the ultimate outcome except that it's not dead yet.”
Committee staff said the bill carries a fiscal note and a “fiscal light” statement and that the measure is expected to be reviewed further by Ways and Means after the Joint Committee on Tax Expenditures.
The committee record shows adoption of the dash 2 amendment dated 05/2025 and the committee’s motion to move HB 2,958, as amended, to the floor with a due-pass recommendation and referral to the Joint Committee on Tax Expenditures.
