For tax years beginning on or after January 1, 2015, and before January 1, 2021, taxpayers may not apply any corporation tax credits against the minimum tax of C corporations.
For tax years beginning prior to January 1, 2015, all corporation tax credits, except for the “Contributions of computers or scientific equipment for research” credit, may be applied against the minimum tax of C corporations.
An out-of-state emergency service provider is exempt from tax when operating at the request of a registered business, solely for the purposes of performing disaster or emergency-related work on critical infrastructure.
Marijuana businesses—deduction of expenses
ORS 317.763 allows Oregon taxpayers filing a corporate excise or income tax return to deduct business expenses otherwise barred by Internal Revenue Code (IRC) §280E if the taxpayer is engaged in marijuana-related activities authorized by ORS 475B.010 to 475B.395.
Important: Corporations must include copies of all credit certifications with your return when claiming any certified credit.
Biomass production/collection credit
The amount allowed for animal manure decreased per wet ton. Contact the Oregon Department of Energy for more information.
Individual Development Accounts
The Individual Development Accounts (IDA) contribution credit has been modified. The total credit allowed to a taxpayer in any tax year may not exceed $500,000 (ORS 315.271).
Child Care Office contribution credit
Starting with tax years beginning on or after January 1, 2016, the calculation of the Child Care Office fund contribution credit is revised. The amount of credit is reduced from 75 percent to no more than 50 percent of the amount contributed to the fund (ORS 315.213). Additionally, the credit is extended to tax years beginning before January 1, 2022.
Qualified Research credit
The Qualified Research credit may be calculated using any method allowed under Internal Revenue Code (IRC) §41. This presently includes both the Standard Method and the Alternative Simplified Credit Method. The Oregon applicable percentage is 5% regardless of the method used to calculate the credit. (ORS 317.152 and OAR 150-317.152)
University Venture Fund credit
This credit has changed beginning with tax year 2016. The credit is now 60% of the contributions made to the fund, not to exceed $600,000. The credit is claimed up to taxpayer’s tax liability, with a three year carryforward for unused amounts.
Credits that sunset on December 31, 2015
- Dependent care assistance (ORS 315.204).
- Dependent care information and referral (ORS 315.204).
- Energy transportation projects (ORS 315.336).
- Qualified equity investment (ORS 315.533).