Prohibits the claiming of an earned income tax credit by a taxpayer using an individual taxpayer identification number in lieu of a Social Security number.

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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 3691
Sponsored by Representative RESCHKE
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 it so that a taxpayer must have a Social Security number to claim an
earned income tax credit. (Flesch Readability Score: 64.6).
Prohibits the claiming of an earned income tax credit by a taxpayer using an individual taxpayer
identification number in lieu of a Social Security number.
Applies to tax years beginning on or after January 1, 2026.
Extends the sunset for the credit.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to requiring the use of a Social Security number to claim an earned income tax credit;
creating new provisions; amending ORS 315.266 and section 6, chapter 880, Oregon Laws 2007;
and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
ORS 315.266 is amended to read:
315.266. (1)(a) In addition to any other credit available for purposes of ORS chapter 316, an eli-
gible resident individual shall be allowed a credit against the tax otherwise due under ORS chapter
316 for the tax year in an amount equal to nine percent of the earned income credit allowable to
the individual for the same tax year under section 32 of the Internal Revenue Code.
(b) Notwithstanding paragraph (a) of this subsection, for a taxpayer with a dependent under the
age of three at the close of the tax year, the credit allowed under this section shall be in an amount
equal to 12 percent of the earned income credit allowable to the individual for the same tax year
under section 32 of the Internal Revenue Code.
[(2) A resident individual may claim a credit under this section, using either a Social Security
number or an individual taxpayer identification number, if, but for section 32(m) of the Internal Re-
venue Code, the individual would otherwise be eligible to claim a credit under section 32 of the Internal
Revenue Code. The credit allowed as provided in this subsection shall equal the percentage, as stated
in subsection (1) of this section, of the amount that would be allowed on a federal return, based on the
amount of the individual’s earned income and the other provisions of section 32 of the Internal Revenue
Code.]
[(3)] (2) An eligible nonresident individual shall be allowed the credit computed in the same
manner and subject to the same limitations as the credit allowed a resident by subsection (1) [ or
(2)] of this section. However, the credit shall be prorated using the proportion provided in ORS
316.117.
[(4)] (3) 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 by this section shall be prorated or computed in a manner consistent with ORS 314.085.
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 4397
HB 3691
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[(5)] (4) If a change in the status of a taxpayer from resident to nonresident or from nonresident
to resident occurs, the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
[(6)] (5) If the amount allowable as a credit under this section, when added to the sum of the
amounts allowable as payment of tax under ORS 316.187 or 316.583, other tax prepayment amounts
and other refundable credit amounts, exceeds the taxes imposed by ORS chapters 314 and 316 for
the tax year after application of any nonrefundable credits allowable for purposes of ORS chapter
316 for the tax year, the amount of the excess shall be refunded to the taxpayer as provided in ORS
316.502.
[(7)] (6) The Department of Revenue may adopt rules for purposes of this section, including but
not limited to rules relating to proof of eligibility[ ,] and the furnishing of information regarding the
federal earned income credit claimed by the taxpayer for the tax year[ and policies and guidelines
for the determination of the amount of credit allowed under subsection (2) of this section ].
[(8)] (7) Refunds attributable to the earned income credit allowed under this section do not bear
interest.
SECTION 2.
Section 6, chapter 880, Oregon Laws 2007, as amended by section 1, chapter 750,
Oregon Laws 2013, and section 32, chapter 579, Oregon Laws 2019, is amended to read:
Sec. 6. ORS 315.266 applies to tax years beginning before January 1, [ 2026] 2032.
SECTION 3. The amendments to ORS 315.266 by section 1 of this 2025 Act apply to tax
years beginning on or after January 1, 2026.
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.
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