1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
A-Engrossed
House Bill 2050
Ordered by the House April 15
Including House Amendments dated April 15
Sponsored by Representatives MCINTIRE, RESCHKE, YUNKER (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. The statement includes a measure digest written in compliance with applicable readability standards.
Digest: The Act exempts from state income tax all federal retirement pay or pension
received for service in the Armed Forces by certain members of the Armed Forces. The Act
applies to tax years that start on or after January 1, 2026. (Flesch Readability Score: 60.1).
[Digest: Exempts from state income tax for a veteran all retirement pay or pension received for
service in the Armed Forces. The Act applies to tax years that start on or after January 1, 2026.
(Flesch Readability Score: 60.1).]
Exempts from state income tax [for a taxpayer who is a veteran] all federal retirement pay or
pension received for service in the Armed Forces of the United States for a taxpayer who is a
disabled veteran or member of a reserve component or the National Guard . Applies to tax
years beginning on or after January 1, 2026.
A BILL FOR AN ACT
Relating to a taxable income exemption for taxpayers who are a veteran.
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) “Armed Forces of the United States” includes the regular and reserve components
of the Army, Navy, Air Force, Marine Corps, Coast Guard and Space Force of the United
States and the National Guard.
(b) “Disabled veteran” means a veteran that has a United States Department of Veterans
Affairs total disability rating of 100 percent as a result of an injury or illness that the vet-
eran incurred, or that was aggravated, during active military service.
(c) “Veteran” has the meaning given that term in ORS 408.225.
(2) There shall be subtracted from federal taxable income all federal retirement pay or
pension received for service in the Armed Forces of the United States for a taxpayer:
(a) Who is a disabled veteran or member of a reserve component or the National Guard;
and
(b) Whose federal taxable income includes federal retirement pay or pension for service
in the Armed Forces of the United States.
(3) The total amount subtracted under subsection (2) of this section may not exceed the
taxpayer’s total retirement pay or pension received for service in the Armed Forces of the
United States that is included in the taxpayer’s federal taxable income for the tax year.
(4) The amount subtracted under subsection (2) of this section may not include any
amount of retirement pay or pension received for service in the Armed Forces of the United
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 889 A-Eng. HB 2050
1
2
3
4
5
6
States that is subtracted under ORS 316.680 (1)(e).
(5) The Department of Revenue may adopt rules for carrying out the provisions of this
section.
SECTION 3. Section 2 of this 2025 Act applies to tax years beginning on or after January
1, 2026.
[2]