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SB561 • 2025

Creates an Oregon personal income tax subtraction for child care expenses paid by a taxpayer during the tax year.

Creates an Oregon personal income tax subtraction for child care expenses paid by a taxpayer during the tax year.

Children Taxes
Passed Legislature

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

Sponsor
Senator Anderson, 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 child care expenses paid by a taxpayer during the tax year.

Digest: The Act makes a new tax subtraction for child care expenses.

What This Bill Does

  • Digest: The Act makes a new tax subtraction for child care expenses.
  • (Flesch Readability Score: 80.3).
  • Creates an Oregon personal income tax subtraction for child care expenses paid by a taxpayer during the tax year.
  • Applies to tax years beginning on or after January 1, 2025, and before January 1, 2031.

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 Senate

    In committee upon adjournment.

  2. 2025-03-26 Senate

    Public Hearing held.

  3. 2025-01-17 Senate

    Referred to Finance and Revenue.

  4. 2025-01-13 Senate

    Introduction and first reading. Referred to President's desk.

Official Summary Text

Digest: The Act makes a new tax subtraction for child care expenses. (Flesch Readability Score: 80.3).
Creates an Oregon personal income tax subtraction for child care expenses paid by a taxpayer during the tax year.
Applies to tax years beginning on or after January 1, 2025, and before January 1, 2031.
Takes effect on the 91st day following adjournment sine die.
Relating to: Relating to income tax subtractions for child care expenses; prescribing an effective date.
Current location: In Senate Committee

Current Bill Text

Read the full stored bill text 
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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Senate Bill 561
Sponsored by Senator ANDERSON (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 new tax subtraction for child care expenses. (Flesch Readability Score:
80.3).
Creates an Oregon personal income tax subtraction for child care expenses paid by a taxpayer
during the tax year.
Applies to tax years beginning on or after January 1, 2025, and before January 1, 2031.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to income tax subtractions for child care expenses; 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) As used in this section:
(a) “Child care expenses” has the meaning given that term in ORS 315.262.
(b) “Qualifying child” has the meaning given that term in section 152(c) of the Internal
Revenue Code.
(2) There shall be subtracted from federal taxable income any amount of child care ex-
penses paid by a taxpayer for care of a qualifying child during the tax year.
(3) A subtraction may not be allowed under this section for any amount that for the tax
year is:
(a) Allowed as a credit under ORS 315.262; or
(b) Taken into account as a deduction on the taxpayer’s federal income tax return.
SECTION 3.
Section 2 of this 2025 Act applies to amounts paid in tax years beginning on
or after January 1, 2025, and before January 1, 2031.
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 1013