Creates an income tax credit for providing employees of hotels and inns human trafficking awareness training.

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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2194
Sponsored by Representative RESCHKE (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced. The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: Makes tax credit for training program for person who works at hotel or inn to be aware
of and report when they see human trafficking. Becomes law 91 days from sine die. (Flesch Read-
ability Score: 74.2).
Creates an income tax credit for providing employees of hotels and inns human trafficking
awareness training. Applies to tax years beginning on or after January 1, 2027, and before January
1, 2033.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to the Oregon Hotels Against Human Trafficking Training Program; creating new pro-
visions; amending ORS 314.772 and 318.031; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
(1) As used in this section:
(a) “Hotel” or “inn” has the meaning given those terms in ORS 699.005.
(b) “Human trafficking” means conduct constituting an offense under ORS 163.263,
163.264 or 163.266.
(c) “Human trafficking victim” means a person who is subjected to human trafficking
regardless of whether the perpetrator of the human trafficking is identified, apprehended,
prosecuted or convicted.
(2) No later than January 1, 2027, the Department of Justice shall establish the Oregon
Hotels Against Human Trafficking Training Program. The purpose of the program is to de-
velop a model training on recognizing, preventing and reporting human trafficking.
(3) The department shall make the model training available on the department’s website
for a person acting on behalf of a hotel or inn to use in providing training to employees of
a hotel or inn who the person determines are likely to come into contact with potential hu-
man trafficking victims and any other employees the person determines should attend the
training.
SECTION 2.
Section 1 of this 2025 Act is amended to read:
Sec. 1. (1) As used in this section:
(a) “Hotel” or “inn” has the meaning given those terms in ORS 699.005.
(b) “Human trafficking” means conduct constituting an offense under ORS 163.263, 163.264 or
163.266.
(c) “Human trafficking victim” means a person who is subjected to human trafficking regardless
of whether the perpetrator of the human trafficking is identified, apprehended, prosecuted or con-
victed.
(2) [No later than January 1, 2027, ] The Department of Justice shall establish the Oregon Hotels
NOTE: Matter in boldfaced type in an amended section is new; matter [ italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 2237
HB 2194
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Against Human Trafficking Training Program. The purpose of the program is to develop a model
training on recognizing, preventing and reporting human trafficking.
(3) The department shall make the model training available on the department’s website for a
person acting on behalf of a hotel or inn to use in providing training to employees of a hotel or inn
who the person determines are likely to come into contact with potential human trafficking victims
and any other employees the person determines should attend the training.
SECTION 3.
The amendments to section 1 of this 2025 Act by section 2 of this 2025 Act
become operative on January 1, 2027.
SECTION 4. Section 5 of this 2025 Act is added to and made a part of ORS chapter 315.
SECTION 5. (1) As used in this section:
(a) “Hotel” or “inn” has the meaning given those terms in ORS 699.005.
(b) “Human trafficking” means conduct constituting an offense under ORS 163.263,
163.264 or 163.266.
(c) “Human trafficking training program” means the human trafficking training program
developed by the Department of Justice under section 1 of this 2025 Act.
(d) “Human trafficking victim” means a person who is subjected to human trafficking
regardless of whether the perpetrator of the human trafficking is identified, apprehended,
prosecuted or convicted.
(2) A credit against taxes that are otherwise due under ORS chapter 316 or, if the tax-
payer is a corporation, under ORS chapter 317 or 318, is allowed to a taxpayer who estab-
lishes and implements a human trafficking training program in accordance with section 1
of this 2025 Act.
(3) The credit allowed under this section shall be equal to 12 percent of the taxpayer’s
expenses to establish and implement the human trafficking training program described in
subsection (2) of this section.
(4) For each tax year for which a credit is claimed under this section, the taxpayer shall
maintain records sufficient to prove the taxpayer’s eligibility for the credit allowed under
this section. A taxpayer shall maintain the records required under this subsection for at
least five years.
(5) The credit allowed under this section may not exceed the tax liability of the taxpayer
for the tax year.
(6) Any tax credit otherwise allowable under this section that is not used by the taxpayer
in a particular tax year may be carried forward and offset against the taxpayer’s tax liability
for the next succeeding tax year. Any credit remaining unused in the next succeeding tax
year may be carried forward and used in the second succeeding tax year, and likewise any
credit not used in that second succeeding tax year may be carried forward and used in the
third succeeding tax year, but may not be carried forward for any tax year thereafter.
(7) A nonresident taxpayer shall be allowed the credit under this section. The credit shall
be computed in the same manner and be subject to the same limitations as the credit
granted to a resident taxpayer. However, the credit shall be prorated using the proportion
provided in ORS 316.117.
(8) If a change in the taxable year of the taxpayer occurs as described in ORS 314.085,
or if the Department of Revenue terminates the taxpayer’s taxable year under ORS 314.440,
the credit allowed by this section shall be prorated or computed in a manner consistent with
ORS 314.085.
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HB 2194
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(9) If a change in the status of a taxpayer from resident to nonresident or from nonres-
ident to resident occurs, the credit allowed by this section shall be determined in a manner
consistent with ORS 316.117.
(10) Spouses in a marriage who file separate returns for a taxable year may each claim
a share of the tax credit that would have been allowed on a joint return in proportion to the
adjusted gross income of each.
SECTION 6.
ORS 314.772 is amended to read:
314.772. (1) Except as provided in ORS 314.766 (5)(b), the tax credits allowed or allowable to a
C corporation for purposes of ORS chapter 317 or 318 shall not be allowed to an S corporation. The
business tax credits allowed or allowable for purposes of ORS chapter 316 shall be allowed or are
allowable to the shareholders of the S corporation.
(2) In determining the tax imposed under ORS chapter 316, as provided under ORS 314.763, on
income of the shareholder of an S corporation, there shall be taken into account the shareholder’s
pro rata share of business tax credit (or item thereof) that would be allowed to the corporation (but
for subsection (1) of this section) or recapture or recovery thereof. The credit (or item thereof), re-
capture or recovery shall be passed through to shareholders in pro rata shares as determined in the
manner prescribed under section 1377(a) of the Internal Revenue Code.
(3) The character of any item included in a shareholder’s pro rata share under subsection (2)
of this section shall be determined as if such item were realized directly from the source from which
realized by the corporation, or incurred in the same manner as incurred by the corporation.
(4) If the shareholder is a nonresident and there is a requirement applicable for the business tax
credit that in the case of a nonresident the credit be allowed in the proportion provided in ORS
316.117, then that provision shall apply to the nonresident shareholder.
(5) As used in this section, “business tax credit” means the following credits: ORS 315.104
(forestation and reforestation), ORS 315.124 (small forest option), ORS 315.133 (agricultural overtime
pay), ORS 315.138 (fish screening, by-pass devices, fishways), ORS 315.141 (biomass production for
biofuel), ORS 315.156 (crop gleaning), ORS 315.164 and 315.169 (agriculture workforce housing), ORS
315.176 (bovine manure), ORS 315.204 (dependent care assistance), ORS 315.208 (dependent care fa-
cilities), ORS 315.213 (contributions for child care), ORS 315.237 (employee and dependent scholar-
ships), ORS 315.271 (individual development accounts), ORS 315.283 (affordable housing sales), ORS
315.304 (pollution control facility), ORS 315.326 (renewable energy development contributions), ORS
315.331 (energy conservation projects), ORS 315.336 (transportation projects), ORS 315.341
(renewable energy resource equipment manufacturing facilities), ORS 315.354 and 469B.151 (energy
conservation facilities), ORS 315.506 (tribal taxes on reservation enterprise zones and reservation
partnership zones), ORS 315.507 (electronic commerce), ORS 315.514 (film production development
contributions), ORS 315.518 (semiconductors), ORS 315.523 (employee training programs), ORS
315.533 (low income community jobs initiative), ORS 315.593 (short line railroads), ORS 315.640
(university venture development funds), ORS 315.643 (Opportunity Grant Fund contributions), ORS
315.675 (Trust for Cultural Development Account contributions), ORS 317.097 (loans for affordable
housing), ORS 317.124 (long term enterprise zone facilities), ORS 317.147 (loans for agriculture
workforce housing), ORS 317.152 (qualified research expenses) and ORS 317.154 (alternative qualified
research expenses) and section 9, chapter 774, Oregon Laws 2013 (alternative fuel vehicle contribu-
tions), and section 5 of this 2025 Act (human trafficking training program) .
SECTION 7.
ORS 318.031 is amended to read:
318.031. It being the intention of the Legislative Assembly that this chapter and ORS chapter
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317 shall be administered as uniformly as possible (allowance being made for the difference in im-
position of the taxes), ORS 305.140 and 305.150, ORS chapter 314 and the following sections are in-
corporated into and made a part of this chapter: ORS 315.104, 315.124, 315.133, 315.141, 315.156,
315.176, 315.204, 315.208, 315.213, 315.283, 315.304, 315.326, 315.331, 315.336, 315.506, 315.507, 315.523,
315.533, 315.593 and 315.643 and section 5 of this 2025 Act (all only to the extent applicable to a
corporation) and ORS chapter 317.
SECTION 8.
Section 5 of this 2025 Act applies to tax years beginning on or after January
1, 2027, and before January 1, 2033.
SECTION 9. This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
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