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HB2271 • 2025

Provides a credit against an employer's unemployment insurance taxes for calendar year 2025 if the employer's tax rate for calendar year 2025 is at least 2.5 percentage points less than the employer's tax rate for calendar year 2024.

Provides a credit against an employer's unemployment insurance taxes for calendar year 2025 if the employer's tax rate for calendar year 2025 is at least 2.5 percentage points less than the employer's tax rate for calendar year 2024.

Labor Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Representative Wright, Representative Levy B,
Last action
2025-08-13
Official status
Chapter Number Assigned
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.

Provides a credit against an employer's unemployment insurance taxes for calendar year 2025 if the employer's tax rate for calendar year 2025 is at least 2.5 percentage points less than the employer's tax rate for calendar year 2024.

<b>Digest: The Act would give a credit off their UI taxes to employers whose rate for 2025 is less than their rate for the prior year by at least two and a half percentage points.

What This Bill Does

  • <b>Digest: The Act would give a credit off their UI taxes to employers whose rate for 2025 is less than their rate for the prior year by at least two and a half percentage points.
  • (Flesch Readability Score: 62.8).</b> [<i>Digest: The Act would give a credit against UI taxes to employers whose rate for 2025 is less than their rate for the prior year by at least three percentage points.
  • (Flesch Readability Score: 60.7).</i>] Provides a credit against an employer's unemployment insurance taxes for calendar <b>year 2025</b> [<i>years 2025, 2026 and 2027</i>] if the employer's tax rate for calendar year 2025 is at least [<i>three</i>] <b>2.5</b> percentage points less than the employer's tax rate for calendar year 2024.
  • Relating to: Relating to employer taxes.

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

  1. 2025-08-13 House

    Chapter 563, (2025 Laws): Effective date January 1, 2026.

  2. 2025-07-24 House

    Governor signed.

  3. 2025-06-26 House

    Speaker signed.

  4. 2025-06-26 Senate

    President signed.

  5. 2025-06-25 Senate

    Recommendation: Do pass the A-Eng. bill.

  6. 2025-06-25 Senate

    Second reading.

  7. 2025-06-25 Senate

    Rules suspended. Third reading. Carried by Smith DB. Passed. Ayes, 28; Excused, 2--Gorsek, Thatcher.

  8. 2025-06-24 Senate

    Public Hearing and Work Session held.

  9. 2025-06-20 House

    Third reading. Carried by Wright. Passed. Ayes, 50; Excused, 9--Diehl, Harbick, Munoz, Osborne, Pham H, Skarlatos, Valderrama, Wallan, Yunker; Excused for Business of the House, 1--Drazan.

  10. 2025-06-20 Senate

    First reading. Referred to President's desk.

  11. 2025-06-20 Senate

    Referred to Finance and Revenue.

  12. 2025-06-19 House

    Second reading.

  13. 2025-06-18 House

    Recommendation: Do pass with amendments and be printed A-Engrossed.

  14. 2025-06-16 House

    Public Hearing and Work Session held.

  15. 2025-03-04 House

    Public Hearing held.

  16. 2025-02-13 House

    Public Hearing cancelled.

  17. 2025-01-17 House

    Referred to Revenue.

  18. 2025-01-13 House

    First reading. Referred to Speaker's desk.

Official Summary Text

<b>Digest: The Act would give a credit off their UI taxes to employers whose rate for 2025 is less than their rate for the prior year by at least two and a half percentage points. (Flesch Readability Score: 62.8).</b>
[<i>Digest: The Act would give a credit against UI taxes to employers whose rate for 2025 is less than their rate for the prior year by at least three percentage points. (Flesch Readability Score: 60.7).</i>]
Provides a credit against an employer's unemployment insurance taxes for calendar <b>year 2025</b> [<i>years 2025, 2026 and 2027</i>] if the employer's tax rate for calendar year 2025 is at least [<i>three</i>] <b>2.5</b> percentage points less than the employer's tax rate for calendar year 2024.
Relating to: Relating to employer taxes.
Current location: Chapter Number Assigned

Current Bill Text

Read the full stored bill text 
83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Enrolled
House Bill 2271
Sponsored by Representative WRIGHT; Representative LEVY B (Presession filed.)
CHAPTER .................................................
AN ACT
Relating to employer taxes.
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 657.
SECTION 2. (1)(a) Any employer whose tax rate for calendar year 2025 is at least two and
one-half percentage points less than the employer’s tax rate for calendar year 2024 shall re-
ceive a nonrefundable credit against the taxes due from the employer in accordance with this
section.
(b) This section applies only to an employer that had a tax rate determined in accordance
with ORS 657.430 for calendar year 2020 and did not have a tax rate determined in accordance
with ORS 657.480 for any calendar year that began on or after January 1, 2021.
(2)(a) The tax credit allowed under this section shall equal the lesser of:
(A) The amount of the taxes due from the employer for calendar year 2025; or
(B) $5,000.
(b) Notwithstanding paragraph (a) of this subsection, no tax credit shall be allowed if the
amount of the tax credit would be less than $100.
(3) An employer is not eligible for the credit against taxes under this section unless the
employer:
(a) Files all wage reports due under ORS 657.571 for calendar years 2024 and 2025 in a
timely manner;
(b) Pays all tax liabilities imposed under this chapter for calendar years 2024 and 2025 in
a timely manner; and
(c) As of January 1, 2025:
(A) Has paid all outstanding unemployment insurance taxes and related liabilities; or
(B) Has paid all outstanding amounts due according to the terms of a payment plan ac-
cepted by the Director of the Employment Department for repayment of all outstanding
amounts described in subparagraph (A) of this paragraph.
SECTION 3.
Section 2 of this 2025 Act is repealed on January 2, 2027.
Enrolled House Bill 2271 (HB 2271-A) Page 1
Passed by House June 20, 2025
..................................................................................
Timothy G. Sekerak, Chief Clerk of House
..................................................................................
Julie Fahey, Speaker of House
Passed by Senate June 25, 2025
..................................................................................
Rob Wagner, President of Senate
Received by Governor:
........................M.,........................................................., 2025
Approved:
........................M.,........................................................., 2025
..................................................................................
Tina Kotek, Governor
Filed in Office of Secretary of State:
........................M.,........................................................., 2025
..................................................................................
Tobias Read, Secretary of State
Enrolled House Bill 2271 (HB 2271-A) Page 2