The 2026 Legislative ‘Short’ Session Carries Long-Term Impact

Oregon’s 2026 short legislative session moved quickly, but the policy choices made during the 35-day session will shape the state’s business climate for years to come.

Lawmakers entered the session citing budget pressure. However, the February revenue forecast ultimately showed an improved outlook and a positive ending balance. Even with that stronger fiscal position, the Legislature advanced several measures that increase the cost of doing business or expand business taxes, while offering little meaningful relief to employers. A smaller set of bills focused on economic development and regulatory improvements also moved forward, though these were limited in scope compared with the new cost pressures created elsewhere in the session.

Taken together, the session represents a missed opportunity to strengthen Oregon’s economic competitiveness at a time when there is growing bipartisan recognition that the state must do more to support job creation, particularly high-wage traded-sector employment, and expand the private-sector tax base that funds public services.

The Governor has identified economic competitiveness and job growth as top priorities. Yet, the overall outcomes of the session suggest Oregon still has significant work ahead to align policy decisions with those goals.

Below is a summary of outcomes related to the Springfield Area Chamber’s 2026 legislative agenda.

Advancing Economic Growth and Site Readiness
Several proposals this session focused on strengthening Oregon’s competitiveness for traded-sector growth by addressing land readiness, investment tools, and permitting challenges.

SB 1586, the Oregon JOBS Act, would have expanded Oregon’s economic development toolkit through updated research and development incentives, support for machinery and equipment investment, enterprise zone and industrial site improvements, and greater transparency around permitting timelines. The bill reflected a broader effort to make Oregon more competitive for large-scale industrial and advanced manufacturing investment. Despite strong support from business organizations statewide, advocates were not able to move the Oregon JOBS Act to the finish line.

A related proposal, HB 4084, brought forward by Governor Kotek, also aimed to improve coordination around economic development and permitting. Ultimately, HB 4084 was the bill that moved forward this session. While it represents a step toward improving site readiness and cross-agency coordination, it falls short of establishing the clearer permitting timelines and certainty many employers hoped to see.

One positive development came through HB 4102, which allows applicants working through Department of Environmental Quality (DEQ) permitting processes to request an expedited review by funding additional agency staff or approved third-party technical support. Because the applicant pays for the additional capacity, the bill creates a voluntary pathway for projects facing complex DEQ review to move more efficiently without changing environmental standards.

A related land-use proposal, HB 4108, allowing noncontiguous annexation also passed but in a narrowed form that applies only to the City of Eugene for residential and mixed-use development within the Urban Growth Boundary.

Tourism Policy and Industry-Specific Taxes
One of the Chamber’s most significant advocacy efforts this session focused on HB 4148, which changes the distribution of local Transient Lodging Tax (TLT) revenues from the long-standing 70–30 split to a 50–50 split between tourism promotion and general government uses and authorizes “resiliency grants” for restaurant and lodging businesses.

The Springfield Chamber actively opposed this legislation throughout the session, engaging with lawmakers and joining statewide partners in raising concerns about its impact on tourism promotion and capital projects that drive visitor demand. While the original proposal would have flipped the allocation to 70% general government and 30% tourism promotion, the final 50–50 structure reflects a negotiated compromise.

However, the Chamber remains concerned about the bill’s “resiliency grant” provision. By reducing the tourism promotion share and allowing grants to be funded from those remaining promotion dollars, the policy still creates a double reduction in funding intended to attract visitors and grow local economies. The Chamber’s position remains clear: tourism businesses need customers, not subsidies, and tourism dollars should be used to grow tourism.

The Legislature also approved HB 4134, increasing the statewide transient lodging tax by 1.25% beginning in 2027. The Chamber opposed this industry-specific tax increase, particularly given that the state’s February revenue forecast improved during the session and because layering taxes on overnight stays places additional pressure on a price-sensitive sector that supports thousands of jobs across Oregon.

Advocating for a Transparent, Growth-Oriented Tax Environment
The most significant tax policy change this session came through SB 1507, which disconnects Oregon from several federal tax provisions, including bonus depreciation for machinery and equipment and the exclusion for qualified small business stock. These changes increase tax complexity and weaken incentives for business investment and expansion. Because of its potential impact on investment and economic competitiveness, opponents of SB 1507 have indicated they may pursue a referendum effort to place the policy before voters.

Championing a Competitive and Flexible Workforce Environment
Several workforce policy proposals raised concerns about new mandates or employer costs but were either stopped or significantly narrowed before the session concluded.

A proposal requiring mandatory cash payouts of unused paid time off (HB 4094) did not pass. Another bill that initially raised concerns about criminal penalties for wage-and-hour violations (HB 4089) ultimately passed in a much narrower form that focuses primarily on contractor compliance and theft-of-services enforcement.

Protecting a Predictable and Insurable Business Environment
A major insurance-cost concern was avoided when HB 4098, which would have expanded liability under Oregon’s Unlawful Trade Practices Act, failed to pass.

Recreational liability legislation did move forward through SB 1517, providing limited liability waiver protections for sport and recreation providers after significant amendments during the session. Industry advocates had supported a broader fix in HB 4071, which would have more fully restored the ability to enforce liability waivers across recreation activities, but that proposal did not advance. While the final SB 1517 bill is not the comprehensive solution many businesses hoped for, it represents an improvement over earlier proposals and restores some clarity for recreation-based businesses.

Supporting Balanced, Business-Friendly Environmental Policies
The Legislature also considered several environmental and regulatory proposals with potential cost impacts for businesses. One of the most significant concerns for employers, SB 1541, the proposed Climate Superfund program that would have imposed retroactive financial liability on selected industries, did not advance during the session.

Looking Ahead
Even in a short session, lawmakers addressed a wide range of economic and regulatory issues with long-term implications for Oregon’s business climate. The results reflect both progress and ongoing challenges for employers across the state. The Springfield Chamber will continue working with regional and statewide partners to advance policies that support economic competitiveness, responsible public investment, and a predictable environment where businesses can invest, hire, and grow.

Springfield Area Chamber of Commerce Business Advocacy
The Springfield Area Chamber of Commerce is a trusted convener and provider of business resources. They recognize the systemic interdependencies of a healthy economy and provide an ear and a voice for local business at the confluence of government, commerce, and community. They advocate for business by increasing visibility, dialogue, and representation at local, state, and federal policy circles around issues of impact and interest to their members. Learn more about the Chamber’s Business Advocacy work.