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Oregon Connection to Federal Law

For tax years 2013, 2012, and 2011

For tax year 2013, Oregon is tied to federal income tax laws as of January 3, 2013.
For tax year 2012, Oregon is tied to federal income tax laws as of December 31, 2011.
For tax year 2011, Oregon is tied to federal income tax laws as of December 31, 2010.

Oregon has a rolling tie to federal changes made to the definition of taxable income with the following exceptions:
  • IRC section 139A for Federal Subsidies for Prescription Drug Plans;
  • IRC section 199 for Income Attributable to Domestic Production Activities, also known as Qualified Production Activity Income (QPAI).

Income under these sections is specifically exempt from tax on the federal return. If you have any of these types of income, you will have an addition on your Oregon tax return.

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Frequently Asked Questions

Question: I filed a return that had items that changed because the federal or Oregon law was changed after I filed. Will the department make the adjustment to my return or should I amend?

Answer:  You need to file an amended return to make any changes to your return.

Question: I forgot to add back the depreciation and expensing differences.  Should I file an amended return or will the department make the adjustment?

Answer:  You need to file an amended return with the add back in order to avoid the possibility of additional penalties and interest later.

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For tax year 2010

For tax year 2010 – Oregon was disconnected from federal law (and an addition on the 2010 return is required) for the following items:
-IRC section 139A (federal subsidies for prescription drug plans) [ORS 316.837; ORS 317.401]

-IRC section 199 (domestic production activities – QPAI) [ORS 316.836; ORS 317.398]

-IRC section 108(i) (discharge of indebtedness from the reacquisition of an applicable debt instrument after December 31, 2008) [ORS 316.739(1); ORS 317.301(1)]

-IRC section 179 (temporary federal increase of 179 expense deduction) [ORS 316.739(3) ORS 317.301(3)]

-IRC section 168(k) (bonus deprecation) [ORS 316.739(2); ORS 317.301(2)] 

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