Oregon's TRICARE Tax Legislation - Fact Sheet
Oregon legislation was passed in 2007 giving Oregon health care providers who have TRICARE contracts the benefit of claiming a state income tax credit and/or a subtraction from federal taxable income beginning with tax year 2008 returns.
In the original 2007 HB3201, the subtraction was to have taken effect beginning with tax year 2007. However, SB1060, passed during the 2008 Oregon legislature special session, altered that effective date to tax year 2008.
The Oregon Office of Rural Health (ORH) has the task of establishing eligibility criteria for the TRICARE benefit. The criteria for eligibility will change annually because the legislative language set limits on the number of health care providers who may be certified as eligible in any given year:
Tax year:
- 2008: 500 certifications
- 2009: 1000 certifications
- 2010: 1500 certifications
- 2011: 2000 certifications
It is our intent to add additional health care professions in subsequent years as the amount of allowed certifications increases. This may change at any time because of legislative action.
At the end of calendar year 2009, ORH will receive data directly from TriWest (the administrator of the TRICARE program) and will notify those providers who are eligible for the Tax Credit and/or Subtraction. Notification, along with instructions on how to claim the credit or subtraction, will be sent via postal mail to providers’ office addresses no later than February 28, 2010.
The electronic filing code for this credit is 746.
