HB2234 • 2025

Creates an Oregon personal income tax subtraction for overtime pay received by a taxpayer during the tax year.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Representative Boshart Davis,, Smith G, Representative Boice,, Diehl,, Drazan,, Edwards,, Elmer,, Harbick,, Helfrich,, Javadi,, Levy B,, Lewis,, Mannix,, McIntire,, Osborne,, Owens,, Reschke,, Scharf,, Skarlatos,, Wright,, Yunker,
Last action: 2025-06-27
Official status: In House Committee
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Creates an Oregon personal income tax subtraction for overtime pay received by a taxpayer during the tax year.

Digest: The Act makes overtime pay not subject to personal income tax.

What This Bill Does

Digest: The Act makes overtime pay not subject to personal income tax.
(Flesch Readability Score: 64.9).
Creates an Oregon personal income tax subtraction for overtime pay received by a taxpayer during the tax year.
Applies to tax years beginning on or after January 1, 2026, and before January 1, 2032.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2025-06-27 House
In committee upon adjournment.
2025-01-17 House
Referred to Revenue.
2025-01-13 House
First reading. Referred to Speaker's desk.

Official Summary Text

Digest: The Act makes overtime pay not subject to personal income tax. (Flesch Readability Score: 64.9).
Creates an Oregon personal income tax subtraction for overtime pay received by a taxpayer during the tax year.
Applies to tax years beginning on or after January 1, 2026, and before January 1, 2032.
Takes effect on the 91st day following adjournment sine die.
Relating to: Relating to an income tax subtraction for overtime pay received; prescribing an effective date.
Current location: In House Committee

Current Bill Text

Read the full stored bill text

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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2234
Sponsored by Representative BOSHART DAVIS (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: The Act makes overtime pay not subject to personal income tax. (Flesch Readability
Score: 64.9).
Creates an Oregon personal income tax subtraction for overtime pay received by a taxpayer
during the tax year.
Applies to tax years beginning on or after January 1, 2026, and before January 1, 2032.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to an income tax subtraction for overtime pay received; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
Section 2 of this 2025 Act is added to and made a part of ORS chapter 316.
SECTION 2. There shall be subtracted from federal taxable income any amount that
during the tax year is:
(1) Attributable to hours of overtime worked by the taxpayer;
(2) Required to be compensated as overtime hours; and
(3) Properly reported as income on the taxpayer’s federal income tax return.
SECTION 3.
Section 2 of this 2025 Act applies to amounts received in tax years beginning
on or after January 1, 2026, and before January 1, 2032.
SECTION 4. 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.
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 964