Lawmakers, advocates press to expand Oregon earned income tax credit; bills differ on size, advance payments

Salem — Lawmakers and policy experts told the House Committee on Revenue on Feb. 25 that Oregon’s earned income tax credit (EITC) helps low‑income working families but that the program needs higher state matches and better delivery. The committee heard an informational briefing from the Legislative Revenue Office and the Department of Human Services and public testimony on three bills that would extend and expand the state credit.

The proposals differ in scale and mechanics. House Bill 3120 would extend the credit’s sunset by six years and raise Oregon’s standard EITC from 9% of the federal credit to 12%, increase the rate to 18% for taxpayers with a child under 3 and to 15% for those with a child ages 3–6. House Bill 2958 would raise the standard match to 20% and the under‑3 match to 25%, broaden eligibility for childless workers to age 18 and include a framework for quarterly (advance) EITC payments. House Bill 2091 would simply renew the current program for six years.

The committee’s informational presentation framed the policy tradeoffs. Kyle Easton of the Legislative Revenue Office summarized program mechanics and fiscal scale, saying Oregon’s credit “is a percentage of the federal credit” and that the state’s law sets the standard at 9% and 12% for taxpayers with a dependent under age 3. Easton told the committee a one‑percentage‑point increase in Oregon’s match is roughly $5 million per year.

Meg Reinholt, a program analyst at the Department of Human Services who manages Oregon’s tax infrastructure grant program, described the state’s outreach work through grants that fund Volunteer Income Tax Assistance (VITA) and culturally specific providers. Reinholt said the IRS reported about 5,000 more EITC claims in tax year 2023 than 2022, representing roughly $44 million in additional federal refunds to Oregon families; she said the…