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 certified credit to avoid processing delays.

​Credit ​Transferable? Date available Excess carried forward Verification required
​Agricultural workforce housing project (annual certification required for projects completed after Dec 31, 1995)
ORS 315.164
​Yes. ​For projects started and completed in tax years beginning on or after
Jan 1, 1990, and before Jan 1, 2020. Refer to the ORS regarding credits for tax years before 2002.
​Yes, 9 years. ​Certified by Oregon Housing and Community Services,
503-986-2000.
Description: ​Loans for construction or rehabilitation of agricultural workforce housing in Oregon. The credit is equal to 50 percent of the 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 January 1, 2005 eligible taxpayers may transfer all or any portion of their credit to another taxpayer. See certifying agency's website for transfer.
Alternative fuel vehicle fueling stations
(for carryforward purposes only)
ORS 317.115

​No. 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.
Alternative fuel vehicle fund (auction)
Notes following 315.336
No. ​Tax years beginning on or after Jan 1, 2013, and before Jan 1, 2015. ​Yes, 3 years. ​Certificate issued
by Department of
Energy,
1-800-221-8035.
​Description: This credit is available through the Oregon Alternative Fuel Vehicle Revolving Fund tax credit auction conducted by us, in cooperation with the Department of Energy. The credit amount is shown on the certificate issued by the Department of Energy. If you claim any of the amount you paid for this credit as a deduction on your federal return, you must add back that amount to your Oregon income as an “other addition.” ​ ​ ​
Biomass production or collection
ORS 315.141, 315.144

​Yes. ​For tax years beginning on or after Jan 1, 2007, and before Jan 1, 2018.
Yes, 4 years.
Certificate issued by
Department of Energy, 1-800-221-8035.
Description: The credit is 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. The credit is based on the amount or quantity of biomass transferred to a biofuel producer during the tax year. This credit may be transferred to an Oregon taxpayer. See form Transfer Notice for Certain Credits.
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.​

This credit isn't allowed for wheat grain for tax years beginning before Jan 1, 2009, or on or after Jan 1, 2018.

Beginning on Jan 1, 2014, the credit isn't allowed for canola grown, collected or produced in the Willamette Valley.

Business energy
ORS 315.354, 315.356, 315.357, 469B.130
​Yes. ​For 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. ​Yes, 8 years. ​Certificate issued by Department of Energy, toll-free 1-800-221-8035.
Description: The credit is for a 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.

The renewable energy resource equipment manufacturing facility component of the business energy tax credit transferred to the Oregon Business Development Department under HB 2523 (2011 session) as of Jan 1, 2012.
​Child Care Office contributions
ORS 315.213
No. ​ Tax years beginning on or after Jan 1, 2002, and before Jan 1, 2016. ​Yes, 4 years.
Certificate issued by Child Care Office, 1-800-556-6616.
​Description: The credit is allowed for certified contributions made to the Child Care Office of the Employment Department for the purpose of promoting child care.
An addition to income may be required if you claim this credit.
Claim of right
ORS 315.068
No. ​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 (for carryforward purposes only)
ORS 317.151
No. ​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.
​Taxpayer must retain details for audit verification.
​Description: ​Credit is available for computers, scientific equipment, maintenance agreements, or money for scientific research donated to Oregon institutions of higher education or post-secondary schools. Beginning Jan 1, 1998, qualified institutions include pre-kindergarten through grade 12. The credit is 10 percent of fair market value of qualified charitable contributions. No IRC Sec 179 expenses are allowed if the credit is claimed. An addition to income for deducted expenses may be required if you claim this credit. This credit isn't allowed to reduce minimum tax.​ ​ ​ ​ ​
Crop donation
ORS 315.156 (see form 150-101-240)

No. ​For tax years beginning on or after Jan 1, 1986, and before Jan 1, 2012. Also for tax years beginning on or after Jan 1, 2014 and before Jan 1, 2020. ​Yes, 3 years. ​Taxpayer must retain details for audit verification.
​Description: For tax years before 2012, the credit is 10 percent of the wholesale market price of the crop donated.
For tax years beginning on or after Jan 1, 2014, and before Jan 1, 2020, the amount of the credit has been increased to 15 percent of the value of the quantity of the crop donated computed at the wholesale market price.​ ​
Dependent care assistance ORS 315.204 (see form 150-102-032) No. ​Tax years beginning on or after Jan 1, 1988, and prior to Jan 1, 2016. ​Yes, 5 years. ​Certificate issued by Child Care Office, 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
No. ​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 Office, 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 (see form 150-102-032)
ORS 315.204
No. ​Tax years beginning on or after Jan 1, 1988, and prior to Jan 1, 2016. ​Yes, 5 years. Certificate issued by Child Care Office, 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 following ORS 315.356
​No. ​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, 1-800-452-4011.
​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
Yes. ​Tax years beginning on or after Jan 1, 2008, and before Jan 1, 2012.
​Yes, 3 years. ​Certification issued by Department of Environmental Quality, 1-800-452-4011.
​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
No. 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) at 503-986-0123, or visit www.oregon4biz.com.
​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
No. Tax years beginning on or after January 1, 2002, and before Jan 1, 2020. ​Yes, 5 years. ​Certified by Oregon Student Assistance Commission, 1-800-452-8807.
​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 
ORS 315.331
​Yes. ​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 Facilities
ORS 315.341
​Yes. ​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). Contact them at 503-986-0123, or visit www.oregon4biz.com.
​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 Projects ORS 315.336 ​Yes. ​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. ​ ​
​Film production development contributions
ORS 315.514
No. ​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: ​A 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. An addition to income may be required if you claim this credit.​
​Fire insurance gross premiums tax (available to insurance companies only)
ORS 317.122
No. ​Tax years beginning before Jan 1, 2018. ​No. ​Taxpayers must retain details for audit verification.
​Description: ​ ​ Tax paid to the Insurance Division for Fire Marshal tax.​
​Fish screening devices
ORS 315.138
No. ​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
No. ​Donations made on or after Oct 23, 2000 and before Jan 1, 2016. ​Yes, 3 years. ​Lender must retain details for audit verification.
​Description: ​Credit is available for donations made on or after October 23, 2000, to a fiduciary organization approved by Oregon Housing and Community Services. It is the 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. The lesser of the $75,000 or 25 percent of the donated amount for donations made before Jan 1, 2002. ​
​Lender's credit: Affordable housing
ORS 317.097 (see form 150-102-125)
No. ​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) No. ​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.​ ​ ​
Long-term care insurance
ORS 315.610
No. ​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 rural enterprise zone facilities
ORS 317.124, 317.125 (see form 150-102-043)
No. ​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, 503-986-0123 or
www.oregon4biz.com.
​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
No. ​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
No. ​Tax years beginning before Jan 1, 2016. ​No. ​Taxpayer 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.
​Pollution control facilities
ORS 315.304
No. ​For construction completed before Jan 1, 2008. ​Yes, generally 3 years. Up to 3 additional years if certain conditions are met. ​See instructions for Form 20.
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.
Credit is based on cost of the facility and percentage allocable to pollution control. The amount is spread over 10 years plus applicable carryforward.​ ​ ​
Qualified equity investment
ORS 315.533
No. ​​For investments made on or after Jul 1, 2012, and before Jul 1, 2016. ​Yes, 5 years on investments made on or after January 1, 2014 and before July 1, 2016. ​​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: Investments made on or after Jul 1, 2012 and before Jan 1, 2014 are allowed indefinite carryforward of any unused credit. ​ ​
Qualified research activities ORS 317.152, 317.153, 317.154​ (see form 150-102-128) No. ​Tax years beginning on or after Jan 1, 1989, and before Jan 1, 2018. ​Yes, 5 years. Taxpayer 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 Jan 1, 2012 the maximum credit is $1,000,000. For tax years beginning on or after Jan 1, 2006 and before Jan 1, 2012 the maximum credit is $2,000,000. Prior to Jan 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
No. ​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 Development Contributions ORS 315.326 No. ​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 websites. An addition to income may be required if you claim this credit.​
​Reservation enterprise zone
ORS 285C.309 (see form 150-102-046)
No. ​Tax years beginning on or after Jan 1, 2002, and before Jan 1, 2018. ​No. ​Contact Oregon Business Development Department, 503-986-0123 or www.oregon4biz.com.
​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
No. ​Donations made on or after Dec 1, 2002, in tax years beginning on or after Jan 1, 2002, and before
Jan 1, 2020.
​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. An addition to income may be required if you claim this credit. ​ ​
​University venture development fund contributions
ORS 315.521
No. ​Tax years beginning on or after Jan 1, 2006, and before Jan 1, 2016. No. Certificate issued by the Oregon university.
​Description: A 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.
For tax years beginning on or after Jan 1, 2014, the university venture development fund contribution credit shall be claimed in three consecutive tax years beginning with the year in which the credit's initially allowed.
An addition to income of deducted expenses may be required if you claim this credit. ​ ​ ​
​ ​ ​
Voluntary removal of riparian land from farm production
(for carryforward purposes only)
ORS 315.113
No. ​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. ​ ​ ​ ​ ​
Weatherization
(for carryforward purposes only)
ORS 317.111

No. For loans made before November 1, 1981. ​​Yes, 15 years. ​Lender must retain details for audit verification.
Description: A credit available to commercial lending institutions for below market rate loans made before Nov 1, 1981 for financing weatherization projects. The credit was equal to the difference between the amount of interest charged at a rate of 6.5 percent and the amount that would have been charged at a lesser of 12 percent or the average percent the lending institution charged for home improvement loans.​ ​ ​ ​
Wolf depredation ORS 315.174 No. ​For tax years beginning on or after Jan 1, 2012 and before Jan 1, 2019. ​Yes, 3 years. ​Taxpayer must 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.​ ​ ​