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2011 Corporate Credits

2011 Corporate Credits

Credit Description
Date available
Excess carried forward
Verification required
Alternative fuel vehicle fueling stations
ORS 317.115
25 percent of cost of the fueling station, but not more than $750. On or after January 1, 1998, and before January 1, 2012. Yes, 5 years. Certificate and verification required by ORS 469.170.
Biomass production or collection (Form BPC)
ORS 315.141
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 of Notice for Certain Credits. For tax years beginning on or after January 1, 2007 and before January 1, 2012. Note: Credit is not allowed for wheat grain before tax years beginning on or after January 1, 2009, or on or after January 1, 2018. Yes,
4 years.
Certificate issued by
Department of Energy,  1-800-221-8035.
Business energy
ORS 315.354, 315.356, 469.185
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 January 1, 1998, “facility”
includes employer-provided transit passes. Beginning January 1, 2001, eligibility is expanded to
include facilities providing transit passes to students and patrons of medical facilities, and certain utilities. Beginning January 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.
For tax years beginning on or after January 1, 1980. Preliminary certification must be received from the Department of Energy before July 1, 2011. The credit must be first claimed in a tax year beginning before January 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 January 1, 2012.
Yes, 8 years. Certificate issued by Department of Energy,
1-800-221-8035.
Child Care Division and community agency contributions
ORS 315.213
The credit is 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 January 1, 2004, contributions to selected community agencies qualify for the credit.
For tax years beginning on or after January 1, 2002, and before January 1, 2016.
Yes, 4 years.
Certificate issued by Child Care Division, 1-800-556-6616.
Claim of right
ORS 315.068
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). For tax years beginning on or after January 1, 1998. No, the credit is refundable. Taxpayer must retain details for audit verification.
Contribution of computers or scientific equipment for research
ORS 317.151
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.
For contributions made in tax years beginning on or after January 1, 1986, and before January 1, 2014.
Yes, 5 years for credits earned in tax years beginning on or after
January 1, 1993.
Donor must retain details for audit verification.
Crop donation (form)
ORS 315.156
Crop gleaning permitted by growers. 10 percent of wholesale market price of crop donated.
For tax years beginning on or after January 1, 1986, and before January 1, 2012. Yes, 3 years
Donor must retain details for audit verification.
Dependent care assistance (form)
ORS 315.204
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.
For tax years beginning on or after January 1, 1988, and prior to January 1, 2016. Yes, 5 years.
Certificate issued by Child Care Division, 1-800-556-6616.
Dependent care facilities (for carry forward purposes only)
ORS 315.208
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.
The first year of the credit begins on or after January 1, 1988 and prior to January 1, 2002. Yes, 5 years.
Certificate issued by Child Care Division, 1-800-556-6616.
Dependent care information and referral (form)
ORS 315.204
Information and referral services to help employees obtain dependent care assistance. 50 percent of cost. For tax years beginning on or after January 1, 1988, and before January 1, 2016. Yes, 5 years. Certificate issued by Child Care Division, 1-800-556-6616.
Diesel engine replacement
Notes following ORS 315.356
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. 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 June 30, 2011.
Tax years beginning on or after January 1, 2005. A certified credit may not be issued after June 30, 2011.
Yes, 4 years.
Certification issued by Department of Environmental Quality, 1-800-452-4011.
Diesel engine repower or retrofit
Notes following ORS 315.356
The amount of the 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.This credit may be transferred to an Oregon taxpayer. See form Transfer of Notice for Certain Credits.
Tax years beginning on or after January 1, 2008, and before January 1, 2012. Yes, 3 years.
Certification issued by the Department of Environmental Quality, 1-800-452-4011.
Energy Conservation Project Credit
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 January 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.
Beginning July 1, 2011, and sunsets January 1, 2018 Yes, 5 years.  Certificate issued by Department of Energy, 1-800-221-8035.
Energy Manufacturing Facility Credit
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. Beginning January 1, 2012. Preliminary certification must be received before January 1, 2014.
Yes, 8 years.
Certificate issued by Oregon Business Development Department (dba Business Oregon) 1-866-467-3466.
Energy Transportation Project Credit
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.
Beginning July 1, 2011. Transportation projects other than alternative fuel vehicle infrastructure sunset January 1, 2016. Alternative fuel vehicle infrastructure projects sunset January 1, 2018. 
Yes, 5 years.
Certificate issued by Department of Energy, 1-800-221-8035.
Electronic commerce in designated enterprise zone or city
ORS 315.507, 315.508
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.
For tax years beginning on or after January 1, 2002, and before January 1, 2018.
Yes, 5 years.
Local enterprise zone authorization and qualification.Contactt Oregon Business Development Department (dba Business Oregon) 1-866-467-3466.
Employee and dependent scholarship program payments
ORS 315.237
The 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.
For tax years beginning on or after January 1, 2002, and before January 1, 2014.
Yes, 5 years.
Certified by Student Access Commission, 1-800-452-8807.
Farm machinery and equipment (for carryforward
purposes only)
ORS 315.119, 315.123
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. Tax years beginning on or after January 1, 2002 and before January 1, 2008. Yes, 5 years. Farm owner or operator must retain details for audit verification.
Farmworker housing project (annual certification required for projects completed after Dec. 31, 1995)
ORS 315.163–172
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 January 1, 2005 eligible taxpayers may transfer all or any portion of their credit to another taxpayer. See certifying agency's website for transfer.
For projects started and completed in tax years beginning on or after
January 1, 1990, and before January 1, 2014. Refer to the ORS regarding credits for tax years before 2002.
Yes, 9 years. Certified by Oregon Housing and Community Services,
503-986-2000.
Film production development contributions
ORS 315.514
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.
Tax years beginning on or after January 1, 2005. The credit must be first claimed in a tax year beginning before January 1, 2018.
Yes, 3 years. Certification issued by the Oregon Film and Video Office, 503-229-5832.
Fire insurance gross premiums tax (available to insurance companies only)
ORS 317.122
Tax paid to the Insurance Division for Fire Marshal tax. For tax years before January 1, 2018. No.
Companies must retain details for audit verification.
First break program (for carry forward purposes only)
ORS 315.259
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.
For qualified youth hired in tax years beginning on or after January 1, 1998, and before January 1, 2005.
Yes, 5 years.
Employer must retain a copy of the certificate issued by a designated community-based organization.
Fish screening devices
ORS 315.138
Installations of fish screening devices, bypass devices, or fishways. 50 percent of installation costs, not to exceed $5,000 per device.
For final certifications in tax years beginning on or after January 1, 1990, and before January 1, 2018. Yes, 5 years.
Certificate issued by Department of Fish and Wildlife, 1-800-720-6339.
Individual development accounts
ORS 315.271
Lesser of $75,000 or 25 percent of the donated amount for donations made before January 1, 2002. Lesser of $75,000 or 75 percent of the donated amount for donations made on or after January 1, 2002, and before January 1, 2016. For donations made on or after Oct. 23, 2000, to fiduciary organization approved by Oregon Housing and Community Services. Yes, 3 years. Lender must retain detail for audit verification.
Lender's credit: Affordable housing (form)
ORS 317.097
Loans to finance certified housing projects for low-income households. For credit certifications issued on or after September 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.
For loans made on or
after January 1, 1990, and
before January 1, 2020.
Yes, 5 years.
File annual statement with Oregon Housing and Community Services,
503-986-2000.
Lender's credit: Energy conservation (form) ORS 317.112
Loans to improve space heating efficiency for oil- and wood-heated residences.
For loans made on or after January 1, 1982, and before January 1, 2012.
Yes, 15 years for loans made after Sept. 28, 1991.
Lender must retain details for audit verification.
Lender's credit: Farmworker housing (form)
ORS 317.147
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 January 1, 1996, and the farmworker housing project was completed before January 1, 2002. The credit is equal to 50 percent if the loan was made in tax years beginning before January 1, 1996, or if the farmworker housing project was completed on or after January 1, 2002. Claimed over the term of the loan or 10 years, whichever is shorter. This credit may be sold to an Oregon taxpayer.
For loans made on or after January 1, 1990. For farmworker housing projects completed on or after January 1, 2002, and before January 1, 2014.
No.
Lender must retain details for audit verification.
Long-term care insurance
ORS 315.610
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 January 1, 2000. Tax years beginning on or after January 1, 2000, and before January 1, 2016. No.
Taxpayer must retain details for audit verification.
Long-term enterprise zone facilities (form)
ORS 317.124, 317.125
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 January 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.
For a five- to 15-year period; for tax years beginning on or after January 1, 1998, and within three years of date placed in service. For facilities certified on or before June 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) 1-866-467-3466.
Mile-based or time-based motor vehicle insurance
Notes following ORS 317.122
A $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.
Tax years beginning on or after January 1, 2005, and before January 1, 2015.
No.
Obtain a verified statement from the policy holder.
OLHIGA (Oregon Life and Health Insurance Guaranty Association) offset (available only to insurance companies)
ORS 734.835
A 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.
 For tax years before January 1, 2016. No.
Companies must retain details for audit verification.
On-farm processing facilities (for carryforward purposes only)
ORS 315.119
The amount of credit is the lesser of: the effective property tax rate multiplied by the adjusted basis of the qualified machinery and equipment; or $30,000.
For tax years beginning on or after January 1, 2002, and before January 1, 2008.
Yes, 5 years.
Contact Department of Revenue.
Pollution control facilities
ORS 315.304
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. For construction completed before January 1, 2008.
Yes, generally 3 years. Up to 3 additional years if certain conditions are met.
See instructions for Forms 20 and 20-S.
Qualified research activities (form)
ORS 317.152, 317.153, 317.154
Five percent of qualified research expenses and basic research payments in excess of base amount (IRS Sec. 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, the maximum credit is $2,000,000. Prior to this date, 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.
For tax years beginning on or after January 1, 1989, and before January 1, 2018.
Yes, 5 years.
Companies must retain details for audit verification.
Reforestation
ORS 315.104, 315.106
The credit shall be allowed in an amount equal to 50 percent of reforestation project costs actually paid or incurred to reforest underproductive Oregon forestlands. For preliminary certification issued on or before
December 31, 2011.
Yes, 3 years. Certificate issued by
Department of Forestry,
503-945-7368.
Renewable Energy Contribution Credit
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.
Beginning July 1, 2011, and sunsets January 1, 2018
Yes, 3 years.
Certificate issued by Department of Energy, 1-800-221-8035.
Reservation enterprise zone (form)
ORS 285C.309
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.
For tax years beginning on or after January 1, 2002, and before January 1, 2014. No. Contact Oregon Business Development Department (dba Business Oregon) 1-866-467-3466.
Trust for cultural development account contributions
ORS 315.675
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.
For donations made on or after December 1, 2002, in tax years beginning on or after January 1, 2002, and before
January 1, 2014.
No.
Proof of contribution must be provided if requested by
Department of Revenue. Contact Oregon Cultural Trust, 503-986-0088.
University venture development fund contributions
ORS 315.521
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.
Tax years beginning on or after January 1, 2006, and before January 1, 2016. Yes, 5 years.
Taxpayer must retain tax credit certificate issued by the Oregon University.
Voluntary removal of riparian land from farm production
ORS 315.113
Credit is 75 percent of the market value of crops foregone.
Tax years beginning on or after January 1, 2004 and before January 1, 2012.
Yes, 5 years.
Taxpayer must retain details for audit verification.
Water transit vessel
ORS 315.517
A credit is allowed based on wages paid to a person employed in Oregon to assist in the manufacture of a water transit vessel. The credit available is the lesser of $5,000, 15 percent of the wages paid, or tax liability. Wages must be paid to a person initially hired on or after January 1, 2006.
For tax years beginning on or after January 1, 2006 and before January 1, 2012.
No.
Employer must retain details for audit verification.
Workers' compensation tax (available to insurance companies only) (form)
ORS 317.122
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. 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, 2012. No.
Companies must retain details for audit verification.

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