SB1134 • 2025

Creates an Oregon personal income tax subtraction for premiums paid for medical, dental or vision insurance coverage for a child dependent of the taxpayer.

Children Healthcare Taxes

Passed Legislature

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

Sponsor: Senator Smith DB
Last action: 2025-06-27
Official status: In Senate 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 premiums paid for medical, dental or vision insurance coverage for a child dependent of the taxpayer.

Digest: The Act makes a new tax subtraction for the cost of health insurance for a taxpayer's dependents.

What This Bill Does

Digest: The Act makes a new tax subtraction for the cost of health insurance for a taxpayer's dependents.
(Flesch Readability Score: 65.1).
Creates an Oregon personal income tax subtraction for premiums paid for medical, dental or vision insurance coverage for a child dependent of the taxpayer.
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

2025-06-27 Senate
In committee upon adjournment.
2025-04-14 Senate
Public Hearing held.
2025-03-03 Senate
Referred to Finance and Revenue.
2025-02-27 Senate
Introduction and first reading. Referred to President's desk.

Official Summary Text

Digest: The Act makes a new tax subtraction for the cost of health insurance for a taxpayer's dependents. (Flesch Readability Score: 65.1).
Creates an Oregon personal income tax subtraction for premiums paid for medical, dental or vision insurance coverage for a child dependent of the taxpayer.
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 insurance expenses of personal income taxpayers; prescribing an effective date.
Current location: In Senate Committee

Current Bill Text

Read the full stored bill text

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 1134
Sponsored by Senator SMITH DB
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 the cost of health insurance for a taxpayer’s
dependents. (Flesch Readability Score: 65.1).
Creates an Oregon personal income tax subtraction for premiums paid for medical, dental or
vision insurance coverage for a child dependent of the taxpayer.
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 insurance expenses of personal income taxpayers; 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 paid by the taxpayer during the tax year that is incurred as premiums for medical, dental
or vision insurance coverage for an individual who is a dependent of the taxpayer and who
at the close of the tax year is a qualifying child in relation to the taxpayer, as defined in
section 152(c)(1) of the Internal Revenue Code.
(2) In order to claim a subtraction under this section, the taxpayer must properly report
on the taxpayer’s federal income tax return adjusted gross income that is at least $90,000
but not more than $150,000, if reported on a joint return, or at least $45,000 but not more
than $75,000, if reported on any other type of return.
(3) A subtraction under this section:
(a) May not exceed $10,000 per qualifying child dependent of the taxpayer; and
(b) Is not allowed for any amount described in subsection (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 4135