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HB3738 • 2025

Creates an Oregon personal income tax subtraction for amounts received from retirement plans.

Creates an Oregon personal income tax subtraction for amounts received from retirement plans.

Taxes
Passed Legislature

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

Sponsor
Representative Skarlatos
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 amounts received from retirement plans.

Digest: The Act makes a new tax subtraction for amounts received from retirement plans.

What This Bill Does

  • Digest: The Act makes a new tax subtraction for amounts received from retirement plans.
  • (Flesch Readability Score: 63.4).
  • Creates an Oregon personal income tax subtraction for amounts received from retirement plans.
  • 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

  1. 2025-06-27 House

    In committee upon adjournment.

  2. 2025-02-27 House

    Referred to Revenue.

  3. 2025-02-25 House

    First reading. Referred to Speaker's desk.

Official Summary Text

Digest: The Act makes a new tax subtraction for amounts received from retirement plans. (Flesch Readability Score: 63.4).
Creates an Oregon personal income tax subtraction for amounts received from retirement plans.
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 amounts received from retirement plans; 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 3738
Sponsored by Representative SKARLATOS
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 a new tax subtraction for amounts received from retirement plans.
(Flesch Readability Score: 63.4).
Creates an Oregon personal income tax subtraction for amounts received from retirement plans.
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 amounts received from retirement plans; 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. (1) There shall be subtracted from federal taxable income any amount that
is properly reported as income on a taxpayer’s federal income tax return and that is received
by the taxpayer from a retirement plan qualified under section 401(k) of the Internal Revenue
Code or from an individual retirement account described in section 408 of the Internal Re-
venueCode.
(2) A subtraction under this section is not allowed for any amount described in sub-
section (1) of this section that is taken into account as a deduction or credit on an income
tax return of the taxpayer, whether state or federal, for any tax year.
SECTION 3.
Section 2 of this 2025 Act applies to 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 4316