Increases the aggregate amount of tax credits allowed to taxpayers in a tax year for donations for individual development accounts.

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
B-Engrossed
House Bill 2735
Ordered by the House May 29
Including House Amendments dated April 8 and May 29
Sponsored by Representative RUIZ, Senators WEBER, GORSEK; Representatives ELMER, GAMBA, HARTMAN,
HUDSON, LEVY B, LEVY E, MANNIX, MUNOZ, NOSSE, OWENS, RESCHKE, SCHARF, SMITH G, SOSA,
WALTERS, Senator MEEK (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. The statement includes a measure digest written in compliance with applicable readability standards.
Digest: The Act raises the cap on total tax credits allowed for IDA donations. (Flesch Read-
ability Score: 63.4).
Increases the aggregate amount of tax credits allowed to taxpayers in a tax year for donations
for individual development accounts. Aligns the date by which donations must be made to
qualify for a credit with the underlying sunset date for the credit.
A BILL FOR AN ACT
Relating to individual development accounts; creating new provisions; and amending ORS 315.271
and section 9, chapter 765, Oregon Laws 2007.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
ORS 315.271 is amended to read:
315.271. (1) A credit against taxes otherwise due under ORS chapter 316, 317 or 318 shall be
allowed for donations to a fiduciary organization for distribution to individual development accounts
established under ORS 458.685. The credit shall equal a percentage of the taxpayer’s donation
amount, as determined by the fiduciary organization, but not to exceed 90 percent of any donation
amount. A credit may be claimed for a donation made not later than April 15 following December
31 of the tax year for which the credit is allowed. [ To qualify for a credit under this section, do-
nations to a fiduciary organization must be made prior to April 15, 2028. ]
(2) If a credit allowed under this section is claimed, the amount upon which the credit is based
that is allowed or allowable as a deduction from federal taxable income under section 170 of the
Internal Revenue Code shall be added to federal taxable income in determining Oregon taxable in-
come. As used in this subsection, the amount upon which a credit is based is the allowed credit di-
vided by the applicable percentage, as determined by the fiduciary organization.
(3) The allowable tax credit that may be used in any one tax year shall not exceed the tax li-
ability of the taxpayer.
(4) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a
particular year may be carried forward and offset against the taxpayer’s tax liability for the next
succeeding tax year. Any tax credit remaining unused in the next succeeding tax year may be car-
ried forward and used in the second succeeding tax year. Any tax credit not used in the 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.
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 3549
B-Eng. HB 2735
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
(5) The total credits allowed to all taxpayers in any tax year under this section and ORS 458.690
may not exceed [ $7.5 million] $16.5 million . The total credit allowed to a taxpayer in any tax year
under this section and ORS 458.690 may not exceed $500,000.
SECTION 2.
The amendments to ORS 315.271 by section 1 of this 2025 Act apply to tax
years beginning on or after January 1, 2025.
SECTION 3. Section 9, chapter 765, Oregon Laws 2007, as amended by section 7, chapter 701,
Oregon Laws 2015, section 7, chapter 525, Oregon Laws 2021, and section 16, chapter 490, Oregon
Laws 2023, is amended to read:
Sec. 9. (1) A credit may not be claimed under ORS 315.271 and 458.690 for tax years beginning
on or after January 1, 2030.
(2) For a taxpayer to qualify for a credit under ORS 315.271, donations to a fiduciary or-
ganization must be made prior to April 15, 2030.
[(2)] (3) The amendments to ORS 315.271 by section 6, chapter 525, Oregon Laws 2021, apply to
tax years beginning on or after January 1, 2022, and before January 1, 2030.
[2]