Businesses

Tax credit codes

Check the appendices of Forms 20, 20-I, 20-INS, or 20-S for the codes to claim any of the tax credits shown below. When filing your Oregon corporation return, attach certification forms for each credit to avoid processing delays.

​Credit Date available Excess carried forward Verification required
Alternative fuel vehicle fueling stations (for carryforward purposes only) ORS 317.115
Tax years beginning on or after January 1, 1998, and before January 1, 2012.
Yes, 5 years.
Certificate and verification required by ORS 469B.106.
Description: 25 percent of cost of the fueling station, but not more than $750.
Biomass production or collection ORS 315.141
​For tax years beginning on or after Jan 1, 2007 and before Jan 1, 2018. Note: Credit is not allowed for wheat grain before tax years beginning on or after Jan 1, 2009, or on or after Jan 1, 2018.

For tax years beginning on or after Jan 1, 2012, woody biomass is measured by its dry weight. For  tax years beginning before Jan 1, 2012, woody biomass is measured by its wet (green) weight.

Yes, 4 years.
Certificate issued by
Department of Energy, 1-800-221-8035.
Description: Available to agricultural producers and biomass collectors for the production or collection of biomass that is to be used in Oregon as biofuel or to produce biofuel. Credit is based on the amount or quantity of biomass transferred to a biofuel producer during the tax year. Credit may be transferred to an Oregon taxpayer. ​Download Transfer of Notice for Certain Credits Form for more information.
Business energy
ORS 315.354, 315.356, 469.185
​Tax years beginning on or after Jan 1, 1980. Preliminary certification must be received from the Department of Energy before Jul 1, 2011. The credit must be first claimed in a tax year beginning before Jan 1, 2013. The renewable energy resource equipment manufacturing facility component of the business energy tax credit transfers to the Oregon Business Development Department under HB 2523 (2011 session) as of Jan 1, 2012. ​Yes, 8 years. ​Certificate issued by Department of Energy, toll-free 1-800-221-8035.
Description: Facility used to process or use renewable energy resources, or to achieve energy efficiency that exceeds industry or regulatory standards by 10 percent or better. “Facility” includes alternative fuel fleet vehicles, telecommuting equipment, and refueling stations. Beginning Jan 1, 1998, “facility” includes employer-provided transit passes. Beginning Jan 1, 2001, eligibility is expanded to include facilities providing transit passes to students and patrons of medical facilities, and certain utilities. Beginning Jan 1, 2007, “facility” also includes a high-efficiency combined heat and power facility, a high-performance home, a homebuilder-installed renewable energy system, or a renewable energy resource equipment manufacturing facility. The credit allowed is based on the certified cost of the facility. This credit may be sold or transferred to another tax payer at a discounted rate. See certifying agency's website for transfer.​ ​ ​ ​
​Child Care Division and community agency contributions
ORS 315.213
​ Tax years beginning on or after Jan 1, 2002, and before Jan 1, 2016. ​Yes, 4 years.
Certificate issued by Child Care Division, 503-947-1418 or 1-800-556-6616.
​Description: Allowed for certified contributions made to the Child Care Division of the Employment Department for the purpose of promoting child care. If credit is claimed, there may be an addition on the Oregon return. For tax years beginning before Jan 1, 2004, contributions to selected community agencies qualify for the credit. ​ ​
Claim of right
ORS 315.068
​Tax years beginning on or after Jan 1, 1998. ​No, the credit is refundable. ​Taxpayer must retain details for audit verification
​Description: The difference between the actual Oregon tax for the year the claim of right income was included in federal income and the Oregon tax if such income had not been included in federal income. See IRC 1341(a)(1) and (2).​ ​ ​
Contribution of computers or scientific equipment for research
ORS 317.151
​Contributions made in tax years beginning on or after Jan 1, 1986, and prior to Jan 1, 2014. ​Yes, 5 years for credits earned in tax years beginning on or after
Jan 1, 1993.
​Donor must retain details for audit verification.
​Description: ​Computers, scientific equipment, maintenance agreements, or money for scientific research donated to Oregon institutions of higher education or post-secondary schools. Beginning January 1, 1998, qualified institutions include pre-kindergarten through grade 12. 10 percent of fair market value of qualified charitable contributions.  No IRC Sec 179 expenses are allowed if the credit is claimed. ​
Crop donation ORS 315.156 (see form 150-101-240)
​Tax years beginning on or after Jan 1, 1986, and before Jan 1, 2012. ​Yes, 3 years. ​Donor must retain details for audit verification.
​Description: Crop gleaning permitted by growers. 10 percent of wholesale market price of crop donated. ​ ​ ​
Dependent care assistance ORS 315.204 (see form 150-102-032) ​Tax years beginning on or after Jan 1, 1988, and prior to Jan 1, 2016. ​Yes, 5 years. ​Certificate issued by Child Care Division, 503-947-1418 or 1-800-556-6616.
​Description: Dependent care assistance for employees. 50 percent of annual cost up to $2,500 per benefiting employee. Allowable expenses must be reduced by credit claimed. ​ ​ ​
Dependent care facilities (for carryforward purposes only)
ORS 315.208
​The first year of the credit begins on or after Jan 1, 1988 and prior to Jan 1, 2002. ​Yes, 5 years. ​Certificate issued by Child Care Division, 503-947-1418 or 1-800-556-6616.
​Description: The amount of the credit is the lesser of: $2,500 multiplied by the number of full-time employees, or 50 percent of cost, or $100,000. One-tenth of the credit is allowable each year for 10 years, as long as the facility is in operation. ​ ​ ​
Dependent care information and referral
ORS 315.204 (see form 150-102-032)
​Tax years beginning on or after Jan 1, 1988, and prior to Jan 1, 2016. ​Yes, 5 years. Certificate issued by Child Care Division, 503-947-1418 or 1-800-556-6616.
​Description: Information and referral services to help employees obtain dependent care assistance. 50 percent of cost. ​ ​ ​
Diesel engine replacement (for carryforward purposes only) Notes followingORS 315.356
​Tax years beginning on or after Jan 1, 2005. A certified credit may not be issued after Jun 30, 2011. ​Yes, 4 years. ​Certification issued by Department of Environmental Quality.
​Description: The amount of the credit varies from $400 to $925 per qualifying engine, depending on the number of trucks owned by the taxpayer prior to the purchase. Qualifying purchases may be made in years 2004 through 2011. A taxpayer may not claim a credit of more than $80,000 for purchases made in any one year. Certificates of credit approval may not be issued after Jun 30, 2011. ​ ​ ​
Diesel engine repower or retrofit (for carryforward purposes only) Notes following ORS 315.356 ​Tax years beginning on or after Jan 1, 2008, and before Jan 1, 2012.
​Yes, 3 years. ​Certification issued by the Department of Environmental Quality, 503-229-6549.
​Description: Credit is 25 percent of the certified cost of each qualifying repower and 50 percent of the certified cost of each qualifying retrofit. “Repower” means to replace an old diesel engine with a new, used, or remanufactured engine or with electric motors, drives, or fuel cells with a minimum useful life of seven years. “Retrofit” means to equip a diesel engine with new emissions-reducing parts or technology that meets the cost-effectiveness threshold. The credit may be transferred to an Oregon taxpayer. Download Transfer of Notice for Certain Credits Form for more information.​ ​ ​
Electronic commerce in designated enterprise zone or city
ORS 315.507, 315.508
Tax years beginning on or after Jan 1, 2002, and before Jan 1, 2018. Yes, 5 years. Local enterprise zone authorization and qualification. Contact Oregon Business Development Department (dba Business Oregon) 503-986-0123.
​Description: ​ Available to qualified businesses engaged in e-commerce in an approved enterprise zone. The credit is equal to 25 percent of the investment in capital assets that are used in the designated area primarily for electronic commerce operations, limited to the lesser of $2 million or the tax liability.​ ​
Employee and dependent scholarship program payments
ORS 315.237
Tax years beginning on or after January 1, 2002, and before Jan 1, 2014. ​Yes, 5 years. Certified by Student Assistance Commission, 1-800-452-8807, ext. 7395.
​Description: ​ Credit may be claimed by an employer with at least 4 full-time employees. The credit equals 50 percent of scholarships funded, but cannot exceed $50,000. ​ ​​ ​
Energy Conservation Project Credit
ORS 315.331
​Beginning Jul 1, 2011, and sunsets Jan 1, 2018 ​Yes, 5 years ​Certificate issued by Department of Energy, 1-800-221-8035.
​Description: ​ This program allows tax credits for any capital investment for which the first year energy savings yields a simple payback period of greater than three years with listed exceptions. Cogeneration facilities are eligible beginning Jan 1, 2013. The Oregon Department of Energy may establish criteria and standards to choose between project applicants. Applicants may transfer this tax credit to other taxpayers in exchange for cash at a rate set by the Oregon Department of Energy, known as a pass-through.​ ​
Energy Manufacturing Facility Credit
ORS 315.341
​Beginning Jan 1, 2012. Preliminary certification must be received before Jan 1, 2014. ​Yes, 8 years. ​Certificate issued by Oregon Business Development Department (dba Business Oregon) 503-986-0123.
​Description: ​The program allows for a tax credit based upon the certified cost of a renewable energy resource equipment manufacturing facility during the period for which the facility is certified by the Oregon Business Development Department. Applicants may transfer this tax credit to other taxpayers in exchange for cash at a rate set by the Oregon Business Development Department, known as a pass-through. ​ ​
Energy Transportation Project Credit
ORS 315.336
​Beginning Jul 1, 2011. Transportation projects other than alternative fuel vehicle infrastructure sunset Jan 1, 2016. Alternative fuel vehicle infrastructure projects sunset Jan 1, 2018.  ​Yes, 5 years. ​Certificate issued by Department of Energy, 1-800-221-8035.
​Description: ​The program allows tax credits for a public or nonprofit entity that provides transit services to members of the public and that receives state or federal funding for those services, or an alternative fuel vehicle infrastructure project. Applicants may transfer this tax credit to other taxpayers in exchange for cash at a rate set by the Oregon Department of Energy, known as a pass-through. ​ ​
Farm machinery and equipment (for carryforward purposes only)
ORS 315.119, 315.123
​Tax years beginning on or after Jan 1, 2002 and before Jan 1, 2008. ​Yes, 5 years. ​Farm owner or operator must retain details for audit verification.
​Description: ​For property taxes paid on machinery, equipment and personal property used for processing wholesale farm crops or livestock after harvest, but before sale of the modified or altered products. The machinery and equipment must be located on or contiguous to land that is specially assessed for farm use and is owned and controlled by the farm operator. The amount of the credit is the lesser of the effective property tax rate multiplied by the adjusted basis (for income tax purposes) of the qualified machinery and equipment or $30,000. A tax credit is not allowed if the machinery and equipment is fully depreciated for tax purposes. ​ ​
Farmworker housing project (annual certification required for projects completed after Dec. 31, 1995)
ORS 315.163–172
​Projects started and completed in tax years beginning on or after
Jan 1, 1990, and before Jan 1, 2014. Refer to the ORS regarding credits for tax years before 2002.
​Yes, 9 years. ​Certified by Oregon Housing and Community Services,
503-986-2148.

Description: Construction or rehabilitation of farmworker housing in Oregon. Fifty percent of costs for projects completed in tax years after 2001; no more than 20 percent of that in any one year over a 10-year period. On or after Jan 1, 2005 eligible taxpayers may transfer all or any portion of their credit to another taxpayer. See certifying agency's website for transfer.​ ​ ​ ​
​Film production development contributions
ORS 315.514
​Tax years beginning on or after Jan 1, 2005. The credit must be first claimed in a tax year beginning before Jan 1, 2018. ​Yes, 3 years.
​Certification issued by the Oregon Film and Video Office, 503-229-5832.
​Description: ​Credit is allowed for contributions to the Oregon Production Investment Fund that is certified by the Oregon Film and Video Office. The amount of the tax credit shall equal the amount certified for credit by the Oregon Film and Video Office, except that a contribution must equal at least 90 percent of the tax credit. ​ ​
​Fire insurance gross premiums tax (available to insurance companies only)
ORS 317.122
​Tax years beginning before Jan 1, 2018. ​No. ​Companies must retain details for audit verification.
​Description: ​ ​ Tax paid to the Insurance Division for Fire Marshal tax.​
First break program (for carryforward purposes only)
ORS 315.259
​For qualified youth hired in tax years beginning on or after Jan 1, 1998, and before Jan 1, 2005. ​Yes, 5 years. ​Employer must retain a copy of the certificate issued by a designated community-based organization.
​Description: Hiring of qualified youth age 14–23, as defined by the Employment Department. Lesser of $1,000, the amount that has not been taken by a qualified youth’s previous employer, or 50 percent of the wages paid to the youth during the relevant time period.​ ​ ​
​Fish screening devices
ORS 315.138
​For final certifications in tax years beginning on or after Jan 1, 1990, and before Jan 1, 2018. ​Yes, 5 years. ​Certificate issued by Department of Fish and Wildlife, 503-947-6229
​Description: Installations of fish screening devices, bypass devices, or fishways. 50 percent of installation costs, not to exceed $5,000 per device. ​ ​ ​
​Individual development accounts
ORS 315.271
​Donations made on or after Oct 23, 2000, to fiduciary organization approved by Oregon Housing and Community Services. ​Yes, 3 years. ​Lender must retain details for audit verification.
​Description: ​Lesser of $75,000 or 25 percent of the donated amount for donations made before Jan 1, 2002. Lesser of $75,000 or 75 percent of the donated amount for donations made on or after Jan 1, 2002, and before Jan 1, 2016.​
Intangible and interest expense add-back
ORS 314.296
​Tax years beginning on or after Jan 1, 2010. ​No. ​​Taxpayer must attach schedule showing computation of credit.
​Description: ​ ​Oregon law provides that intangible and interest expenses must be added back to federal taxable income for Oregon purposes when a related member that is not included in the same tax return receives them and they are paid in connection with a direct or indirect transaction with a related member. If the related member paid tax on the income, a credit may be allowed on the taxpayer’s return. (Not available to 20-INS or 20-S filers.) ​
​Lender's credit: Affordable housing
ORS 317.097 (see form 150-102-125)
​Loans made on or
after Jan 1, 1990, and
before Jan 1, 2020.
​Yes, 5 years .
​File annual statement with Oregon Housing and Community Services,
503-986-2036.
​Description: Loans to finance certified housing projects for low-income households. For credit certifications issued on or after Sep 27, 2007, qualifying loans include loans to develop, acquire, construct, or rehabilitate qualified housing. Qualified housing now includes manufactured dwelling parks and housing preservation projects.  ​
Lender's credit: Energy conservation (for carryforward purposes only) ORS 317.112 (see form 150-102-125) ​Loans made on or after Jan 1, 1982, and before Jan 1, 2012. ​Yes, 15 years for loans made after Sep 28, 1991.
​Lender must retain details for audit verification.
​Description: Loans to improve space heating efficiency for oil- and wood-heated residences.​ ​ ​
​Lender's credit: Farmworker housing
ORS 317.147 (see form 150-102-125)
​Loans made on or after Jan 1, 1990. For farmworker housing projects completed on or after Jan 1, 2002, and before Jan 1, 2014. ​No. ​Lender must retain details for audit verification.
​Description: Loans for construction or rehabilitation of farmworker housing in Oregon. The credit is equal to 30 percent if the loan was made in tax years beginning on or after Jan 1, 1996, and the farmworker housing project was completed before Jan 1, 2002. The credit is equal to 50 percent if the loan was made in tax years beginning before Jan 1, 1996, or if the farmworker housing project was completed on or after Jan 1, 2002. Claimed over the term of the loan or 10 years, whichever is shorter. This credit may be sold to an Oregon taxpayer.  ​ ​
Long-term care insurance
ORS 315.610
​Tax years beginning on or after Jan 1, 2000, and before Jan 1, 2016.
​No. ​Taxpayer must retain details for audit verification.
​Description: Lesser of 15 percent of premiums paid or incurred during the tax year, or $500 multiplied by the number of Oregon employees covered. For policies issued on or after Jan 1, 2000. ​ ​ ​
​Long-term enterprise zone facilities
ORS 317.124, 317.125 (see form 150-102-043)
​For a five- to 15-year period; for tax years beginning on or after Jan 1, 1998, and within three years of date placed in service. For facilities certified on or before Jun 30, 2018. ​Yes, 5 years. ​Taxpayer must receive written approval from the governor and retain details for audit
verification. Contact Oregon Business Development Department (dba Business Oregon) 503-986-0123.
​Description: ​Constructing or operating a facility certified in a qualified rural enterprise zone eligible for long-term exemption from property taxes. Credit equals 62.5 percent of payroll, employee benefit costs, and all other employee costs of the facility. Only available against the C corporation tax liability in excess of $1 million, or lesser amount applicable to counties with population under various thresholds and meeting specified criteria. Beginning Jan 1, 2005, a taxpayer eligible for the credit is allowed to take other eligible credits if this credit does not offset the tax liability on the return. ​ ​
Mile-based or time-based motor vehicle insurance
Notes following ORS 317.122
​Tax years beginning on or after Jan 1, 2005 and before Jan 1, 2015. ​No. ​Obtain a verified statement from the policy holder.
​Description: $100 credit is allowed for each vehicle insured under a policy that is at least 70 percent based on a mile-based or time-based rating plan. The credit may not exceed $300 for each policy of the tax liability. ​ ​ ​
​OLHIGA (Oregon Life and Health Insurance Guaranty Association) offset (available only to insurance companies)
ORS 734.835
​Tax years beginning before Jan 1, 2016. ​No. ​Companies must retain details for audit verification.
​Description: ​Credit for 20 percent of the amount paid in each of the five calendar years following the year in which the assessment is paid to the Oregon Life and Health Insurance Guaranty Association (OLHIGA). The credit is allowed for payments made under ORS 734.815(8) only. Property and casualty insurers do not qualify for this credit.
On-farm processing facilities (for carryforward purposes only)
ORS 315.119
​Tax years beginning on or after Jan 1, 2002, and before Jan 1, 2008. ​Yes, 5 years. ​Contact Department of Revenue.
​Description: Credit is the lesser of: the effective property tax rate multiplied by the adjusted basis of the qualified machinery and equipment; or $30,000.​ ​ ​
​Pollution control facilities
ORS 315.304
​For construction completed before Jan 1, 2008. ​Yes, generally 3 years. Up to 3 additional years if certain conditions are met. ​See instructions for Forms 20 and 20-S.
Description: For the prevention, control or reduction of air, water, or noise pollution, nonpoint source pollution; solid or hazardous waste; recycling; or disposal of used oil.​ ​ ​ ​
Qualified equity investment
ORS 315.533
​​For investments made on or after Jul 1, 2012, and before Jul 1, 2016. ​Yes, unlimited. ​​Certified by the Oregon Business Development Department, 503-986-0123 or www.oregon4biz.com.
​Description: ​A tax credit is allowed for qualified equity investments in low-income community businesses. The credit is equal to 39 percent of the purchase price of the qualified equity investment, spread over seven years, beginning with the year of investment. The credit cannot be more than your tax liability and cannot be transferred or sold.
The allowable tax credit is: Years 1 & 2: 0%; Year 3: 7%; Years 4-7: 8% each.
Note: No credit may be claimed until tax year 2014 for qualified investments made in tax year 2012.​ ​ ​
Qualified research activities ORS 317.152, 317.153, 317.154​ (see form 150-102-128) ​Tax years beginning on or after Jan 1, 1989, and before Jan 1, 2018. ​Yes, 5 years. ​Companies must retain details for audit verification.
​Description: Five percent of qualified research expenses and basic research payments in excess of base amount (IRC §41), or 5 percent of qualified research expenses that exceed 10 percent of Oregon sales. For tax years beginning on or after January 1, 2012 the maximum credit is $1,000,000. For tax years beginning on or after January 1, 2006 and before January 1, 2012 the maximum credit is $2,000,000. Prior to January 1, 2006 the maximum is $500,000. Limited to research activities in Oregon. A deduction may not be taken for the expenses related to the amount being claimed as a credit. ​ ​
​Reforestation (for carryforward purposes only)
ORS 315.104, 315.106
​For preliminary certification issued on or before
Dec 31, 2011.
​Yes, 3 years. ​Certificate issued by
Department of Forestry,
503-945-7368.
​Description: Credit shall be allowed in an amount equal to 50 percent of reforestation project costs actually paid or incurred to reforest underproductive Oregon forestlands. ​ ​ ​ ​ ​ ​
Renewable Energy Contribution Credit ​Beginning Jul 1, 2011, and sunsets Jan 1, 2018 ​Yes, 3 years. ​Certificate issued by Department of Energy, 1-800-221-8035.
​Description: ​This program allows the auction of tax credits to provide funds to award grants to renewable energy production systems. The Oregon Department of Energy may establish criteria and standards to choose between project applicants. The total credit certifications are limited to $1.5 million per year. Information about the auction process for this credit is available on the Oregon Department of Revenue and the Oregon Department of Energy website. ​ ​
​Reservation enterprise zone
ORS 285C.309 (see form 150-102-046)
​Tax years beginning on or after Jan 1, 2002, and before Jan 1, 2014. ​No. ​Contact Oregon Business Development Department (dba Business Oregon) 503-986-0123.
​Description: The credit is allowed to eligible businesses operating a new business facility in a reservation enterprise zone. The credit is equal to the tribal property tax imposed on a new business facility that is paid or incurred by the business during the tax year, or the amount of tribal tax paid or incurred by the business during the tax year, if the business has not previously conducted business operations within the reservation enterprise zone. “Tribal tax” includes, but is not limited to, an income or excise tax, an ad valorem property tax, a gross receipts tax, or a sales and use tax. ​ ​ ​ ​ ​ ​
​Trust for cultural development account contributions
ORS 315.675
​Donations made on or after Dec 1, 2002, in tax years beginning on or after Jan 1, 2002, and before
Jan 1, 2014.
​No. ​Proof of contribution must be provided if requested by
Department of Revenue. Contact Oregon Cultural Trust, 503-986-0088.
​Description: ​ ​Credit is 100 percent of contributions to the account that are matched by an equal contribution to an Oregon cultural organization. Limited to $500 per individual taxpayer, $2,500 for corporations. ​ ​ ​ ​
​University venture development fund contributions
ORS 315.521
​Tax years beginning on or after Jan 1, 2006, and before Jan 1, 2016. ​Yes, 5 years. ​Taxpayer must retain tax credit certificate issued by the Oregon university.
​Description: Credit is allowed for contributions to a university venture development fund when a tax credit certificate has been issued. The amount of the credit is 60 percent of the certified amount with limitations as to how much may be claimed yearly. ​ ​ ​ ​ ​ ​
Voluntary removal of riparian land from farm production (for carryforward purposes only)
ORS 315.113
​Tax years beginning on or after Jan 1, 2004, and before Jan 1, 2012. ​Yes, 5 years. ​Taxpayer must retain details for audit verification.
​Description: ​Credit is 75 percent of the market value of crops foregone. ​ ​ ​ ​ ​
Wolf depredation ORS 315.174 ​For tax years beginning on or after Jan 1, 2012 and before Jan 1, 2019. ​Yes, 3 years. ​Retain the documentation for audit verification.
​Description: A credit is allowed for the current market value of any livestock that is killed by a wolf. You must obtain evidence that includes documentation from the Department of Fish and Wildlife (ODFW) or by a peace officer indicating that a wolf was the probable cause of the loss.​ ​ ​
​Workers' compensation tax (available to insurance companies only)
ORS 317.122 (see form 150-102-044)
​All insurance credits can be claimed by both foreign and domestic insurance companies in tax years beginning on or after January 1, 1997, and before January 1, 2018. ​No. ​Companies must retain details for audit verification.
​Description: Lesser of the premium assessment to fund operations of the Oregon Insurance Division or the excise tax on the profit attributable to the workers’ compensation line of business. ​ ​ ​ ​ ​ ​