Two of our readers alerted me yesterday afternoon that Oregon lawmakers are attempting to keep the Oregon SALT workaround alive and well.
Senate Bill 1510 (“SB 1510”) was introduced in the Oregon Senate on February 24 (hours after I put my pencil down from writing the last blog article and awaiting its publication). The bill has been passed by the Senate and is currently waiting to be voted on by members of the House of Representatives.
Unlike Senate Bill 211 (“SB 211”), which was introduced in the Oregon legislature during the 2025 session, SB 1510 is not a standalone bill solely focusing on extending the life of the Oregon SALT workaround. Rather, a provision to extend the SALT workaround is sandwiched between three other provisions, namely a provision extending a property tax exemption for cargo containers, the repeal of a tribal tax exemption and a requirement that the board of tax practitioners register enrolled agents.
SB 1510, with respect to the SALT workaround, is interesting. First, the bill only extends the workaround through 2027. I am not sure why the legislature would not extend it indefinitely (i.e., for as long as the federal SALT cap is in place). Second, SB 1510 (like SB 211) contains a provision that allows eligible pass-through entities to apply overpayments from one tax year to the subsequent tax year. That is a welcome addition to the SALT workaround.
A few (hopefully minor) hurdles could impact the passage of SB 1510. First, as mentioned already, the bill contains three other provisions, leaving the legislation open for a debate that very well could be totally unrelated to the workaround. Second, the 2026 Oregon legislative session is a short session, and lawmakers have been presented with a large number of important bills, including a proposal to update the Oregon estate tax (Senate Bill 1511) and the transportation bill (Senate Bill 1599).
Hopefully, the other provisions of SB 1510 and the large volume of proposed legislation this short session will not create obstacles for getting the workaround extension approved by lawmakers.
I will keep a keen eye on SB 1510 and report back to you soon.
PrincipalLarry is Chair of the Foster Garvey Tax & Benefits practice group. He is licensed to practice in Oregon and Washington. Larry's practice focuses on assisting public and private companies, partnerships, and high-net-worth ...
RSS Feed
Follow us on Twitter
Follow us on LinkedIn
Larry J. Brant
Editor
Larry J. Brant is a Shareholder and the Chair of the Tax & Benefits practice group at Foster Garvey, a law firm based out of the Pacific Northwest, with offices in Seattle, Washington; Portland, Oregon; Washington, D.C.; New York, New York, Spokane, Washington; and Tulsa, Oklahoma. Mr. Brant is licensed to practice in Oregon and Washington. His practice focuses on tax, tax controversy and business transactions. Mr. Brant is a past Chair of the Oregon State Bar Taxation Section. He was the long-term Chair of the Oregon Tax Institute, and is currently a member of the Board of Directors of the Portland Tax Forum. Mr. Brant has served as an adjunct professor, teaching corporate taxation, at Northwestern School of Law, Lewis and Clark College. He is a frequent lecturer at local, regional and national tax and business conferences for CPAs and attorneys. Mr. Brant is an Expert Contributor to Thomson Reuters Checkpoint Catalyst. He is a Fellow in the American College of Tax Counsel. Mr. Brant publishes articles on numerous income tax issues, including Taxation of S corporations, Taxation of C corporations, Reasonable Compensation, Circular 230, Worker Classification, IRC Section 1031 Exchanges, Choice of Entity, Entity Tax Classification, and State and Local Taxation. Since 2019, he has been a multiple-time honoree of the JD Supra Readers’ Choice Awards for Tax, recognizing him as a Top Author for thought leadership and reader engagement on its platform. Mr. Brant was the 2015 Recipient of the Oregon State Bar Tax Section Award of Merit.
