Revenue committee hears risks if federal Tax Cuts and Jobs Act sunsets; opens hearing on HB 2,092 reconnect bill

PORTLAND, Ore. — The House Committee on Revenue on Feb. 27 heard an informational report on the potential state revenue impact if the federal Tax Cuts and Jobs Act (TCJA) is not extended and opened a public hearing on House Bill 2,092, the annual bill that updates Oregon’s connection to federal tax law.

Legislative Revenue Office staff said the office’s current forecast assumes the TCJA will continue; if the law were to sunset, the forecasted revenue for 2026 could decline by about $200 million, rising to roughly $280 million in later years, according to the briefing presented to Chair Nathanson and the committee. Staff emphasized a distinction between direct impacts (changes to deductions that would flow directly into Oregon taxable income) and indirect impacts (changes that alter the federal subtraction and therefore reduce Oregon tax collections).

The briefing was framed as a narrow first step to make the federal landscape tractable for state planning.…