SB 1510 — Relating to taxation; and prescribing an effective date.

83rd OREGON LEGISLATIVE ASSEMBLY--2026 Regular Session A-EngrossedEnrolled Senate Bill 1510 Ordered by the Senate February 19 Including Senate Amendments dated February 19 Printed pursuant to Senate Interim Rule 213.28 by order of the President of the Senate in conformanceconform- ance with pre-presession session filing rules, indicating neither advocacy nor opposition on the part of the President (at the request of Senate Interim Committee on Finance and Revenue) SUMMARYCHAPTER 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.

ItAN isACT anRelating editor’sto brieftaxation; statement of the essential features of the measure.

The statement includes a measure digest written in compliance with applicable readability standards.

Digest:

The Act makes technical fixes and slight policy updates to some tax statutes.

(Flesch Readability Score:

63.4).

Updates the terminology used to describe certain income earned by multinational corporations to reflect a change in the term used in federal law.

Aligns sunset dates for earned income tax credit provisions with the underlying sunset date for the credit.

Expands the tax credit for certified film production development contributions to allow the use of contributions for the production of commercials.

Applies to fiscal years beginning on or after July 1, 2026.

[Provides an exception from the annual filing requirement for the property tax exemption for property burdened by an affordable housing covenant used for owner-occupied housing.

Applies to property tax years beginning on or after July 1, 2027.] Extends the sunset for the property tax exemption for cargo containers.

Repeals the requirement that revenue from a tribal tax on the distribution of motor ve- hicle fuel that is exempt from the gas taxes under Oregon law is subject to the highway-use restrictions under the Oregon Constitution.

Extends the applicability of the pass-through business alternative income tax and tax credit through the 2027 tax year.

Allows overpayments to be credited as estimated payments for the next tax year.

Requires the State Board of Tax Practitioners to register as enrolled agents individuals who are authorized by the Internal Revenue Service to represent taxpayers as enrolled agents.

Takes effect on the 91st day following adjournment sine die.

A BILL FOR AN ACT Relating to taxation;

NOTE:(b) Amounts deducted for income repatriated, deemed or otherwise, under section 965 of the Internal Revenue Code;

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 254 A-Eng.

SB 1510 (b) Amounts deducted for income repatriated, deemed or otherwise, under section 965 of the Internal Revenue Code;

Enrolled Senate Bill 1510 (SB 1510-A) Page 1 (b) In the case of any dividend received from a 20 percent owned corporation, as defined in section 243(c) of the Internal Revenue Code, or [global intangible low-taxed] net controlled foreign corporation tested income included in gross income pursuant to section 951A of the Internal Re- venue Code, this subsection shall be applied by substituting “80 percent” for “70 percent.” (c) A dividend that is not treated as a dividend under section 243(d) of the Internal Revenue Code may not be treated as a dividend for purposes of this subsection.

The amount of any dividend or of any [global intangible low-taxed] net controlled foreign corporation tested income that is apportionable shall be determined as provided by the apportionment formula applicable to the taxpayer, as provided in ORS 314.280 and 314.605 to 314.675, but may not include any amount sub-subtracted tracted under subsection (2) of this section.

[2]Sec. A-Eng.

SB 1510 Sec.

Enrolled Senate Bill 1510 (SB 1510-A) Page 2 (i) “Portland metropolitan zone” means the area within a 30-mile radius of the center of the Burnside Bridge in Portland.

[3](A) A-Eng.Total actual Oregon expenses paid for the film or media production services must be at least $75,000;

SB 1510 (A) Total actual Oregon expenses paid for the film or media production services must be at least $75,000;

Enrolled Senate Bill 1510 (SB 1510-A) Page 3 SECTION 6.

(c) “Tribal member entity” means an entity wholly owned and operated by an enrolled member [4]of A-Eng.an Indian tribe.

SB 1510 of an Indian tribe.

The members of a pass-through entity may revoke an election under this section for a tax year only Enrolled Senate Bill 1510 (SB 1510-A) Page 4 on or before the due date of the pass-through entity’s return for that tax year, and only if the re- vocation is agreed to by all members who are members at the time of the revocation.

(b) Any amount that is added back under this subsection and that meets the conditions for the [5]use A-Eng.of elective rates under ORS 316.043 may be treated as qualifying income under ORS 316.043, in a proportion determined by the department by rule.

SB 1510 use of elective rates under ORS 316.043 may be treated as qualifying income under ORS 316.043, in a proportion determined by the department by rule.

(3) The amendments to section 2, chapter 527, Oregon Laws 2021, by section 8, chapter 82, Oregon Laws 2022, apply to applications for precertification under section 4, chapter 527, Oregon Enrolled Senate Bill 1510 (SB 1510-A) Page 5 Laws 2021, and applications for exemption under section 5, chapter 527, Oregon Laws 2021, without [6]precertification, A-Eng.filed on or after June 3, 2022.

SB 1510 precertification, filed on or after June 3, 2022.