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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2520
Sponsored by Representative EVANS (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: Allows a taxpayer to claim, for up to three years, a credit against their income tax if
the taxpayer employs a qualified veteran. Requires the taxpayer to pay at least the required wage.
(Flesch Readability Score: 61.9).
Allows a credit against income taxes for up to three years for employment of qualified military
veterans if the wage requirement is met.
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 tax credits for employment of qualified military veterans; and prescribing an effective
date.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
Sections 2 and 3 of this 2025 Act are added to and made a part of ORS
chapter 315.
SECTION 2. (1) As used in this section, “qualified military veteran” means an individual
who:
(a) Is hired within seven years of receipt of an honorable discharge from a branch of the
Armed Forces of the United States or of deactivation orders under Title 10 of the United
States Code under honorable conditions;
(b) Is employed by a taxpayer for at least 1,000 hours during each tax year for which the
credit allowed under this section is claimed;
(c) Commences employment by the taxpayer not more than two calendar years before the
close of the tax year for which the credit allowed under this section is initially claimed; and
(d) Was not previously employed by the taxpayer prior to the individual’s deployment.
(2) An employer shall be allowed a credit against the taxes that are otherwise due under
ORS chapter 316 or, if the employer is a corporation, under ORS chapter 317 or 318 for the
employment of a qualified military veteran.
(3) An employer shall be allowed the credit described in subsection (2) of this section if
the employer pays all qualified military veterans employed by the taxpayer a wage that is
at least $1 per hour more than the applicable rate under ORS 653.025.
(4)(a) For an employer with 100 or fewer employees at any time during the first tax year
for which the credit is initially claimed, the credit allowed under this section shall equal
$1,000 per qualified military veteran employed by the taxpayer, and shall increase by $100 for
each consecutive tax year that the credit is allowed, but may not exceed $1,500 for any tax
year.
(b) For an employer other than an employer described in paragraph (a) of this subsection,
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 1331
HB 2520
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the credit allowed under this section shall equal $750 per qualified military veteran employed
by the taxpayer, and shall increase by $100 for each consecutive tax year that the credit is
allowed, but may not exceed $1,250 for any tax year.
(5) An employer that claims the credit allowed under this section shall retain the United
States Department of Defense discharge form for a qualified military veteran for whom the
employer claims the credit.
(6) The credit allowed under this section may not exceed the tax liability of the taxpayer.
(7) 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.
(8) A nonresident taxpayer is allowed the credit under this section in the proportion
provided in ORS 316.117.
(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) If a change in the taxable year of a 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 under this section shall be prorated or computed in a manner consistent with
ORS 314.085.
SECTION 3.
(1) The Department of Veterans’ Affairs shall establish by rule standards
and procedures for determining the eligibility of taxpayers to claim the credit allowed under
section 2 of this 2025 Act. The department may establish standards for determining whether
an individual is a qualified military veteran as defined in section 2 of this 2025 Act.
(2) The taxpayer shall maintain any documents received by the taxpayer in connection
with the receipt of a tax credit under section 2 of this 2025 Act, including documents in
support of an eligibility determination made pursuant to subsection (1) of this section, in the
records of the taxpayer for the length of time prescribed by the Department of Revenue and
shall provide a copy of the documents to the Department of Revenue if requested.
SECTION 4.
An employer that claims the credit allowed under section 2 of this 2025 Act
may claim the credit for up to three tax years.
SECTION 5. Sections 2 to 4 of this 2025 Act apply to tax years beginning on or after
January 1, 2027, and before January 1, 2033.
SECTION 6. 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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