Budget & Taxes

] [ Reduces taxes imposed under various tax programs, operative conditioned upon imposition of a statewide retail sales tax dedicated to specified purposes. Directs the Department of Revenue to estimate the revenue lost to tax reductions and to direct an equal amount of revenue to various purposes. ] Updates the connection date to the federal Internal Revenue Code and other provisions of federal tax law. Increases the amount of the earned income tax credit allowed as a percentage of the federal earned income tax credit. Disconnects from, and requires addback of amounts for, federal provisions allowing deductions of personal auto loan interest and bonus depreciation and allowing exclusion of gain from small business stock. Applies to tax years beginning on or after January 1, 2026. Creates a personal income or corporate excise tax credit for a taxpayer creating new jobs in the tax year. 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.

Modifies the crime of theft of services to include partial payments. Provides that a prosecution for theft of services does not preclude other forms of relief. Directs the Interagency Compliance Network to develop investigative methods concerning persons who may be committing theft of services and not complying with taxation and employment laws. Punishes knowingly entering into a contract with an unlicensed labor contractor, if committed by a direct contractor or subcontractor, by a maximum of 364 days' imprisonment, $6,250 fine, or both. Punishes a second or subsequent conviction by a maximum of five years' imprisonment, $125,000 fine, or both. Increases the penalty for the intentional use of a contractor's license number without authorization. Punishes by a maximum of five years' imprisonment, $125,000 fine, or both. Increases the penalty for the use of a contractor's license number with the intent to deceive the public. Punishes by a maximum of five years' imprisonment, $125,000 fine, or both.

Creates a corporate excise tax credit for each of the first three years that a bank does business in this state. Applies only to Oregon-chartered banks that commence business in tax years beginning on or after January 1, 2027, and before January 1, 2033. Takes effect on the 91st day following adjournment sine die.