2025 Application period
The application period will open by January 1, 2026 and will run through Monday, February 2, 2026. Applications for the credit are due January 31 each year, or the next business day, if the date is not a business day.
Note: The link for the application will not be available until January 1, 2026.
How to apply
Log in to your Revenue Online account to apply.
Applications can only be filed electronically. No paper applications will be accepted. See our video for a demonstration of how to file an application through Revenue Online.
Before you apply
Please gather your records for the tax year January 1, 2025 – December 31, 2025. Even if you are a fiscal filer, you will report on information for the last calendar year. You will need the following documents and information on hand to complete the application.
Annual application timeline
- Application period – January 1 - 31
- Department of Revenue (DOR) reviews applications for eligibility criteria – January to February
- Appeal requests in response to denied or adjusted applications – due from applicant within 30 days of notice
- DOR notifies qualified applicants of their approved credit – by June 1
- Taxpayers file returns claiming the credit by extension deadline – October 15
About the tax credit
Oregon law requires agricultural employers to pay certain workers for overtime hours worked and provides for a refundable personal or corporate income tax credit for employers for a percentage of wages paid as overtime pay [Oregon Revised Statutes (ORS) 653.272, 315.133]. The wage requirement and credit began in the 2023 tax year.
Overview
The
tax credit application is available online only through
Revenue Online. Taxpayers who apply for the tax credit by January 31 are granted an automatic filing extension. They may start filing their returns after they receive an acknowledgment notice of their eligible credit amount. Taxpayers will claim the refundable credit on their income tax return. The law specifies the hour threshold at which an employer must pay overtime for different years, industries, and number of employees. See the Agricultural Employer Overtime Tax Credit Tables below.
Nondairy - Agricultural Employer Overtime Tax Credit
Dairy - Agricultural Employer Overtime Tax Credit
The tax credit is for a percentage of the difference between the overtime pay and the base wage. The annual limit for credits to all eligible employers is $55 million. If the total amount of approved applications is greater than the annual credit limit, all approved credit amounts are proportionally reduced to meet the limit. The law also includes a provision allowing a three-year net operating loss carryback (ORS 317.346).
Pass-through entity (PTE)
Partnerships or S corporations must pass the distributive shares of the credit through to their partners, shareholders, or members. Applicants notify the department of how the credit should be passed through under Section F of the application. If section F was not completed, then a Form OR-TFR must be submitted to the department.
If you are a PTE and the credit will be passed to the owners or partners, the applicant needs to notify their owners, shareholders, or PTE of the credit amount being passed to them so that they can claim the credit on their return or pass the credit through. The department
does not prescribe a method on how you notify the owners. Businesses may report using federal Schedule K-1, but it is not required.
Note: If the tax credit is passed to another PTE (S corporation or partnership), that PTE will need to submit their own Form OR-TFR to distribute the credit to their owners or partners.
Failure to provide the required owner or partner information will result in a delay of processing your owner or partner income tax return.
Claiming the credit
Eligible applicants are issued an Acknowledgement letter with the eligible credit amount by June 1.
Credits are claimed (using credit code 901) on a personal income tax return, corporation income or excise tax return, or a fiduciary return, using Schedule OR-ASC, OR-ASC-NP, OR-ASC-CORP, or OR-ASC-FID.
The application is based on the calendar year overtime was paid. Therefore, eligible credits for application period 2024 must be claimed in the 2024 tax year return. An automatic filing extension is allowed for this reason. Returns claiming the credit should be filed by the filing extension deadline.
If a return was previously filed
without the Agricultural Employer Overtime Tax Credit 901, taxpayers must file an amended return. Credits may only be claimed for the year the credit was eligible for and may not be claimed in a future year.
Appeals
For tax credit adjustments or denials, 30-day appeals must be submitted by email to
ag.overtime@dor.oregon.gov or through your Revenue Online account.
Do not mail to post office box.
Write “Request an Appeal" as the subject and include:
- The date of your application.
- Your daytime phone number.
- Why you are appealing.
- Documents that support your explanation.