The Springfield Chamber is paying close attention to the upcoming short legislative session in early 2026. Alongside statewide organizations like the Oregon State Chamber of Commerce (OSCC) and Oregon Business and Industry (OBI), the Springfield Chamber is monitoring and participating in key conversations affecting the business community.
The following points will be of interest to Chambers across the state:
Oregon’s fiscal outlook, tax code alignment
This conversation will center on Oregon’s potential “disconnect” from portions of the federal tax code. This discussion stems from HR 1, the large federal tax package passed earlier in 2025, which includes provisions that reduce businesses’ taxable income.
Early projections suggested these changes could create a significant budget shortfall for Oregon, prompting policymakers to explore options to recapture revenue by separating from specific federal rules. However, recent state revenue forecasts have eased some concerns, offering cautious optimism.
Across Oregon, many business and economic development organizations have emphasized the importance of maintaining alignment with federal taxable income provisions to preserve simplicity in tax compliance and support continued investment in the workforce, wages, and local economies.
Gas, payroll tax increases; voter reversal?
A statewide effort to refer HB 3991– the transportation tax and fee package – appears likely to qualify for the ballot. If it does, employers could see a confusing overlap with the law’s January 2026 payroll tax increase, which doubles the employee-paid public transit tax from 0.1% to 0.2%. Employers must still collect the higher tax on Jan. 1, but that requirement will pause if the referral qualifies, raising questions about how to handle taxes collected during the interim.
Revisiting cap-and-trade model
The Springfield Chamber has been concerned about the Climate Protection Program (CPP) for years, citing its problematic structure, lack of legislative oversight, and the significant cost burdens it places on employers.
Under CPP, Oregon’s carbon price has climbed to $129 per ton, far higher than our neighbors in Washington and California pay ($60 and $20, respectively). New fees are set to begin in 2026 and would be directed to a nonprofit rather than state-managed environmental priorities, and the payments are not tax-deductible.
Statewide business partners are urging legislators to convene a 2026 workgroup to pursue a legislatively accountable cap-and-trade model as an alternative. Bipartisan engagement will be essential to designing a system that supports environmental goals while protecting Oregon’s economic competitiveness.
