Tie to federal tax law
Oregon's calculation of taxable income for C corporations begins with federal taxable income as of December 31, 2013. It is modified as required under Oregon tax law.
Oregon has a rolling connection to the federal definition of taxable income with certain exceptions relevant to corporation tax law, including:
- No connection to the qualified production activities income (QPAI) deduction (IRC §199; ORS 317.398). An addition to the Oregon return is required, effective January 1, 2005; and
- No connection to certain subsidies excluded under IRC 139A for prescription drug plans (IRC §139A; ORS 317.401). An addition to the Oregon return is required, effective January 1, 2008.
Note: The disconnect from federal law for tax years 2009 and 2010 may have affected reporting differences between federal and Oregon expenses for subsequent years. If you had assets placed in service for a year beginning on or after January 1, 2009, and before January 1, 2011, and bonus depreciation on your federal return created an addition on your Oregon return, you will likely have modifications to Oregon income.