ORS Chapter 316 — Personal Income Tax

ORS 316.699. Subtraction for contributions to savings network account for higher education or ABLE account; limitations; carryforward. (1) There shall be subtracted from federal taxable income the amount contributed to: (a) A savings network account for higher education established under ORS 178.300 to 178.360; or (b) An ABLE account established under ORS 178.380 and rules adopted by the Oregon 529 Savings Board, when the contribution is made before the designated beneficiary of the account attains 21 years of age. (2) Notwithstanding subsection (1) of this section, a subtraction under this section may not exceed the lesser of: (a) $4,000 for the tax year if the taxpayer files a joint return, or $2,000 for the tax year if the taxpayer files a return other than a joint return; and (b) If an amount is carried forward to a succeeding tax year under subsection (4) of this section, the balance in the savings network account for higher education or ABLE account at the close of the tax year for which the subtraction is being made. (3)(a) The Department of Revenue shall annually adjust the maximum subtraction allowable under this section according to the cost-of-living adjustment for the calendar year. The department shall make this adjustment by multiplying the amount in subsection (2) of this section by the percentage (if any) by which the monthly averaged U.S. City Average Consumer Price Index for the 12 consecutive months ending August 31 of the prior calendar year exceeds the monthly averaged U.S. City Average Consumer Price Index for the 12 consecutive months ending August 31, 2007. (b) As used in this subsection, U.S. City Average Consumer Price Index means the U.S. City Average Consumer Price Index for All Urban Consumers (All Items) as published by the Bureau of Labor Statistics of the United States Department of Labor. (4) Any amounts contributed to a savings network account for higher education or an ABLE account that are not subtracted from federal taxable income because of the monetary limitations imposed by subsection (2) of this section may be carried forward for four succeeding tax years and subtracted from federal taxable income in any of those succeeding tax years in an amount that does not exceed the monetary limitations imposed by subsection (2) of this section. (5) The amount contributed to a savings network account for higher education or an ABLE account may be subtracted from a preceding tax year if the contribution is made before the taxpayer files a return or before the 15th day of the fourth month following the closing of the taxpayers tax year, whichever is earlier. (6) A subtraction is not allowed under this section for any amount that has been transferred into a savings network account for higher education from an individual development account, through a rollover, as provided in ORS 458.685 (3)(a)(A). [2003 c.280 2; 2007 c.843 11; 2009 c.33 22; 2015 c.701 9a; 2015 c.843 5; 2021 c.525 15] Note: Section 4, chapter 579, Oregon Laws 2019, provides: Sec. 4. Except as provided in ORS 316.699 (4), a taxpayer: (1) May use a subtraction under ORS 316.699 only for contributions made in tax years beginning before January 1, 2020; and (2) May carry forward and use a subtraction under ORS 316.699 (4) only in tax years beginning before January 1, 2025.