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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 467
Sponsored by Senator WEBER; Senators CAMPOS, FREDERICK, THATCHER, WOODS, Representatives JAVADI,
LEVY B, NELSON, NGUYEN H, OSBORNE, WRIGHT (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: The Act makes a tax credit for some child care workers that starts in 2026. The Act lets
the child care worker put the credit in the ORSP. (Flesch Readability Score: 83.8).
Creates a refundable income tax credit for certain child care workers. Provides for a child care
worker to elect to deposit the refund attributable to the credit in the Oregon Retirement Savings
Plan. Provides for the credit to be claimed on the personal income tax return for the 2026 tax year.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to tax credits for child care workers; creating new provisions; amending ORS 178.210 and
316.502; 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 315.
SECTION 2. (1) A credit against taxes that are otherwise due under ORS chapter 316 is
allowed to a taxpayer who is an individual and who is an operator or an employee of a child
care facility that is certified or registered under ORS 329A.280 or 329A.330 or of a subsidized
care facility regulated under ORS 329A.500.
(2)(a) The credit shall be computed by multiplying five percent by the income earned by
the taxpayer as an operator or employee of a child care facility that is certified or registered
under ORS 329A.280 or 329A.330 or of a subsidized care facility regulated under ORS 329A.500.
(b) Notwithstanding the calculation provided in paragraph (a) of this subsection, a credit
under this section may not exceed $2,000.
(3) 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.
SECTION 3. Section 4 of this 2025 Act is added to and made a part of ORS chapter 305.
SECTION 4. (1) The Department of Revenue shall provide a means by which a personal
income taxpayer who is an individual and who is an operator or an employee of a child care
facility that is certified or registered under ORS 329A.280 or 329A.330 or of a subsidized care
facility regulated under ORS 329A.500 may elect to establish an account under the retirement
plan established under ORS 178.205.
(2) A taxpayer described in subsection (1) of this section may elect to contribute all or
a portion of a refund of personal income tax attributable to the credit against taxes allowed
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 917
SB 467
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under section 2 of this 2025 Act to an account under the retirement plan established under
ORS 178.205 by direct deposit to the financial institution managing the account. The amount
elected to be contributed by the taxpayer must be at least $25 and may be applied as a con-
tribution only for the tax year in which the refund is issued.
(3) The election to contribute all or a portion of a refund shall be made on a form pre-
scribed by the department and filed with the taxpayer’s tax return for the tax year or at
such other time and in such other manner as the department may prescribe by rule. The
department shall prescribe by rule the maximum number of accounts to which a taxpayer
may elect to contribute a portion of the refund.
(4) The election to contribute all or a portion of a refund may not be changed or revoked.
(5) The election to contribute all or a portion of a refund shall be void, and no portion
of the refund may be contributed to an account under the retirement plan established under
ORS 178.205, if:
(a) The taxpayer’s refund is offset to pay amounts owed by the taxpayer; or
(b) The taxpayer’s refund is less than the total of the following:
(A) The contribution elected under subsection (2) of this section;
(B) Payments of tax as provided in ORS 316.583 that accompany the return;
(C) All contributions to charitable and governmental entities designated by means of a
checkoff as provided in ORS 305.745;
(D) All contributions to political parties designated by means of a checkoff as provided
in ORS 305.754; and
(E) All contributions elected under ORS 305.796.
SECTION 5.
ORS 316.502, as amended by section 65a, chapter 70, Oregon Laws 2024, is
amended to read:
316.502. (1) The net revenue from the tax imposed by this chapter, after deducting refunds and
amounts described in ORS 285B.630 and 285C.635, shall be paid over to the State Treasurer and held
in the General Fund as miscellaneous receipts available generally to meet any expense or obligation
of the State of Oregon lawfully incurred.
(2) A working balance of unreceipted revenue from the tax imposed by this chapter may be re-
tained for the payment of refunds, but such working balance shall not at the close of any fiscal year
exceed the sum of $1 million.
(3) Moneys are continuously appropriated to the Department of Revenue to make:
(a) The refunds authorized under subsection (2) of this section; and
(b) The refund payments in excess of tax liability authorized under ORS 315.133, 315.174, 315.262,
315.264, 315.266, 315.273, 315.519 and 316.090 and section 3, chapter 589, Oregon Laws 2021 , and
section 2 of this 2025 Act .
SECTION 6.
ORS 178.210 is amended to read:
178.210. (1) The plan developed and established by the Oregon Retirement Savings Board under
ORS 178.205 must:
(a) Allow eligible individuals employed for compensation in this state to contribute to an ac-
count established under the plan through payroll deduction.
(b) Require an employer to offer its employees the opportunity to contribute to the plan through
payroll deductions unless the employer offers a qualified retirement plan, including but not limited
to a plan qualified under section 401(a), section 401(k), section 403(a), section 403(b), section 408(k),
section 408(p) or section 457(b) of the Internal Revenue Code.
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SB 467
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(c) Provide for automatic enrollment of employees and allow employees to opt out of the plan.
(d) Have a default contribution rate set by the board by rule.
(e) Offer default escalation of contribution levels that can be increased or decreased within the
limits allowed by the Internal Revenue Code.
(f) Provide for contributions to the plan to be deposited directly with the investment adminis-
trator for the plan.
(g) Whenever possible, use existing employer and public infrastructure to facilitate contributions
to the plan, recordkeeping and outreach.
(h) Require no employer contributions to employee accounts.
(i) Require the maintenance of separate records and accounting for each plan account.
(j) Provide for reports on the status of plan accounts to be provided to plan participants at least
annually.
(k) Allow for account owners to maintain an account regardless of place of employment and to
roll over funds into other retirement accounts.
(L) Pool accounts established under the plan for investment.
(m) Be professionally managed.
(n) Provide that the State of Oregon and employers that participate in the plan have no pro-
prietary interest in the contributions to or earnings on amounts contributed to accounts established
under the plan.
(o) Provide that the investment administrator for the plan is the trustee of all contributions and
earnings on amounts contributed to accounts established under the plan.
(p) Not impose any duties under the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1001 et seq.) on employers.
(q) Keep administration fees in the plan low.
(r) Allow the use of private sector partnerships to administer and invest the contributions to the
plan under the supervision and guidance of the board.
(s) Allow employers to establish an alternative retirement plan for some or all employees.
(t) Allow an individual who is an operator or an employee of a child care facility that is
certified or registered under ORS 329A.280 or 329A.330 or of a subsidized care facility regu-
lated under ORS 329A.500 to contribute to the plan through a deposit under section 4 of this
2025 Act.
(2) The plan, the board, each board member and the State of Oregon may not guarantee any rate
of return or any interest rate on any contribution. The plan, the board, each board member and the
State of Oregon may not be liable for any loss incurred by any person as a result of participating
in the plan.
SECTION 7.
The Department of Revenue shall by rule establish procedures for adminis-
tering the credit allowed under section 2 of this 2025 Act and shall provide a means by which
a taxpayer may claim the credit on the personal income tax return filed for the 2026 tax year.
SECTION 8. (1) Section 2 of this 2025 Act applies to tax years beginning on or after
January 1, 2026.
(2) Section 4 of this 2025 Act applies to income tax refunds payable to taxpayers for tax
years beginning on or after January 1, 2026.
SECTION 9. 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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