What is the Oregon subtraction for wildfire civil action settlement or judgment?

If you received income from a judgment or settlement of a civil action from a a qualified wildfire during 2025, you may subtract that amount from your Oregon taxable income. You may only subtract amounts included in your federal AGI, and the amounts can't be compensation for losses, expenses, or other damages for which you already received compensation through insurance or other means. If you were able to claim a deduction or a credit on your federal return for the income, you can't subtract it on your Oregon return.

A qualifying wildfire is a wildfire that meets one of the following conditions:

• Is the subject of a state of emergency declared by the Governor;
• Occurs in an area subject to an executive order of the Governor invoking the Emergency Conflagration Act; or
• Is a federally declared disaster, whether located within Oregon or elsewhere.

The declaration or executive order relating to the wildfire must have been issued on or after January 1, 2018 and before January 1, 2026 to qualify.