Businesses

​Tax credit codes

Check the appendices of Forms OR-20, OR-20-INC, OR-20-INS, or OR-20-S for the codes to claim any of the excise or income tax credits shown below. 

Credit Transferable? Date available
Excess carried forward Verification required
Agricultural workforce housing (annual certification required for projects completed after Dec 31, 1995) 
ORS 315.164, 315.169
Yes.
For projects started and completed in tax years beginning on or after 
January 1, 1990 and before January 1, 2026. 
Yes, 9 years. Certified by Oregon Housing and Community Services, 
503-986-2008 or www.oregon.gov/ohcs.
Description: This credit is for loans for construction or rehabilitation of agricultural workforce housing in Oregon. The credit is equal to 50 percent of the costs for projects completed in tax years after 2001; no more than 20 percent of that amount is allowed 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 information. Refer to the ORS regarding credits for tax years before 2002.
Biomass production/collection (for carryforward purposes only) ORS 315.141, 315.144 
Yes. For tax years beginning on or after January 1, 2007 and before January 1, 2018.
Yes, 4 years.
Certified
by Department of
Energy,
800-221-8035.
Description: 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 Notice for Certain Credits

For tax years beginning on or after January 1, 2012, woody biomass is measured by its dry weight. For  tax years beginning before January 1, 2012, woody biomass is measured by its wet (green) weight.

This credit isn't allowed for wheat grain for tax years beginning before January 1, 2009 or on or after January 1, 2018.

Beginning on January 1, 2014, the credit isn't allowed for canola grown, collected, or produced in the Willamette Valley. 
Bovine manure production or collection ORS 315.176, 315.179
​Yes. 
​For tax years beginning on or after January 1, 2018 and before January 1, 2022.​
 
​Yes, 4 years. ​Certified by the Department of Agriculture, www.oregon.gov/ODA
Description: The credit equals $3.50 for each wet ton of bovine manure and may only be claimed once for each wet ton of bovine manure.
Business energy (for carryforward purposes only)
ORS 315.354, 315.356, 315.357, 469B.130
Yes. 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. Yes, 8 years. Certified
by Department of
Energy,
800-221-8035.
Description: The credit was for a 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 taxpayer at a discounted rate. See certifying agency's website for transfer information.

The renewable energy resource equipment manufacturing facility component of the business energy tax credit transferred to the Oregon Business Development Department under HB 2523 (2011 session) as of January 1, 2012.
Child Care Fund contributions
ORS 315.213
No. Tax years beginning on or after January 1, 2002 and before January 1, 2022. Yes, 4 years.
Certified by Child Care Office,
800-556-6616 or www.oregon.gov/occ.
Description: The credit is allowed for certified contributions made to the Child Care Office of the Employment Department for the purpose of promoting child care. An addition to your Oregon income for deducted expenses may be required if you claim this credit.
Claim of right 
ORS 315.068
No. Tax years beginning on or after January 1, 1998. No, the credit is refundable. Taxpayer must keep records for audit verification.
Description: The credit is 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 Section 1341(a)(1) and (2).
Crop donation 
ORS 315.156 (see Form 150-101-240)

No. For tax years beginning on or after January 1, 2014 and before January 1, 2026. Yes, 3 years. Taxpayer must keep records for audit verification.
Description: The credit is 15 percent of the value of the quantity of the crop donated computed at the wholesale market price.
Electronic commerce zone investment (for carryforward purposes only) 
ORS 315.507, 315.508
No. Tax years beginning on or after January 1, 2002 and before January 1, 2018.  Yes, 5 years. Local enterprise zone authorization and qualification. Contact Business Oregon,
503-986-0123 or www.oregon4biz.com.
Description: The credit is 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 a tax year.​ ​
Employer-provided dependent care assistance or information and referral (for carryforward purposes only) ORS 315.204 (see Form 150-102-032) No. Tax years beginning on or after January 1, 1988 and prior to January 1, 2016. Yes, 5 years. Certified by Child Care Office, 800-556-6616 or www.oregon.gov/occ.
Description: The credit was for dependent care assistance for employees. The credit equals 50 percent of the annual cost up to $2,500 per benefiting employee. The credit also applied to information or referral services provided to help employees secure dependent care assistance. Allowable expenses must be reduced by credit claimed.
Employer scholarship 
ORS 315.237 
No. Tax years beginning on or after January 1, 2002 and before January 1, 2026.  Yes, 5 years. Certified by Oregon Student Assistance Commission,
800-452-8807.
Description: The credit may be claimed by an employer with at least four full-time employees. The credit equals 50 percent of scholarships funded, limited to the lesser of the tax liability or $50,000 for a tax year. ​ ​
Energy conservation projects (for carryforward purposes only) ORS 315.331 Yes. For tax years beginning July 1, 2011 and before January 1, 2018. Yes, 5 years. Certified
by Department of
Energy,
800-221-8035.
Description: 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").
Fish screening devices 
ORS 315.138
No. For final certifications in tax years beginning on or after January 1, 1990 and before January 1, 2024. Yes, 5 years. Certified by Department of Fish and Wildlife, 800-720-6339.
Description: The credit is available for installations of fish screening devices, bypass devices, or fish​ways. The credit equals 50 percent of installation costs, not to exceed $5,000 per device.
Individual development account donation 
ORS 315.271
No. Donations made on or after October 23, 2000 and before January 1, 2022. Yes, 3 years. Lender must keep records for audit verification.
Description: The credit is available for donations made on or after October 23, 2000, to a fiduciary organization approved by Oregon Housing and Community Services. The credit may not exceed 70% of the donation amount.
Lender's credit: Energy conservation (for carryforward purposes only) ORS 317.112 (see Form 150-102-125) No. Loans made on or after January 1, 1982 and before January 1, 2012. Yes, 15 years for loans made on or after September 28, 1991.
Lender must keep records for audit verification.
Description: The credit is available to lenders who provide loans to improve space heating efficiency for oil- and wood-heated residences.
Long-term enterprise zone facilities 
ORS 317.124, 317.125, 285C.406 (see Form 150-102-043)
No. For a five to 15-year period; for tax years beginning on or after January 1, 1998 and within three years of the facility being placed in service. For facilities certified on or before June 30, 2018. Yes, 5 years. Taxpayer must receive written approval from the governor and keep records for audit verification.
Contact Business Oregon, 503-986-0123 or www.oregon4biz.com.
Description: The credit is available for 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. The credit is 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. Important: If you're eligible for this credit, you must submit the credit form, Schedule OR-LTEZ, with your return, regardless of whether you claim the credit. 
OLHIGA (Oregon Life and Health Insurance Guaranty Association) offset (available only to insurance companies) 
ORS 734.835
No. Tax years beginning before January 1, 2022. No. Taxpayer must keep records for audit verification.
Description: The credit equals 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.
​Opportunity Grant Fund (auction) ORS 315.643 ​No. ​Tax years beginning on or after January 1, 2018 and before January 1, 2024. ​Yes, 3 years. Certified by the Oregon Higher Education Coordinating Commission, www.oregon.gov/highered​
Description: This credit is by auction conducted by us, in cooperation with the Higher Education Coordinating Commission (HECC). The amount of the credit claimed may not exceed the taxpayer’s Oregon tax liability for a tax year.
Oregon's affordable housing lender's credit ORS 317.097 (see Form 150-102-125) No. Loans made on or after January 1, 1990 and before January 1, 2026. Yes, 5 years. File annual statement with Oregon Housing and Community Services, 503-986-2000.
Description: The credit is available to lending institutions who 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.
Oregon Cultural Trust contribution ORS 315.675 No. Donations made on or after December 1, 2002 in tax years beginning on or after January 1, 2002 and before January 1, 2026. No. Proof of contribution must be provided if requested by Department of Revenue. Contact Oregon Cultural Trust, 503-986-0088.
Description: The credit is 100 percent of contributions to the account that are matched by an equal contribution to an Oregon cultural organization, limited to the lesser of the tax liability or $2,500 for a tax year.
Oregon low-income community jobs initiative/new markets (for carryforward purposes only) ORS 315.533 No. For investments made on or after July 1, 2012 and before July 1, 2016. Yes, 5 years on investments made on or after January 1, 2014 and before July 1, 2016. Certified by Business Oregon, 503-986-0123 or www.oregon4biz.com.
Description: A tax credit was allowed for qualified equity investments in low-income community businesses. The credit equals 39 percent of the purchase price of the qualified equity investment spread over seven years, beginning with the year of investment. The credit cannot be more than your tax liability and cannot be transferred or sold. The allowable tax credit is: Years 1 and 2 - 0%, Year 3 - 7%, Years 4-7 - 8% each. Note: For investments made on or after July 1, 2012 and before January 1, 2014, any unused credit may be carried forward indefinitely.
Oregon Production Investment Fund (auction) ORS 315.514 No. Tax years beginning before January 1, 2024. Yes, 3 years. Certified by the Oregon Film and Video Office, 503-229-5832.
Description: Credit is available for contributions to the Oregon Production Investment Fund. The credit equals the amount certified by the Oregon Film and Video Office, except that a contribution must equal at least 90 percent of the credit. An addition to your Oregon income for deducted expenses may be required if you claim this credit.
Pollution control facilities 
ORS 315.304
No. For construction completed before January 1, 2008. Yes, generally 3 years. Up to 3 additional years if certain conditions are met. See instructions for Form OR-20.
Description: The credit is available 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.
The credit is based on cost of the facility and percentage allocable to pollution control. The amount is spread over 10 years, plus applicable carryforward.
Qualified research activities and alternative qualified research activities (for carryforward purposes only) ORS 317.152, 317.153, 317.154 (see Form 150-102-128)
No. Tax years beginning on or after January 1, 1989 and before January 1, 2018. Yes, 5 years. Taxpayer must keep records for audit verification.
Description: Credit is available for increases in qualified research expenses and research payments. The credit equals 5 percent of qualified research expenses and basic research payments in excess of base amount (IRC §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 million. For tax years beginning on or after January 1, 2006 and before January 1, 2012, the maximum credit is $2 million. For tax years prior to January 1, 2006, the maximum credit 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.
Reforestation of underproductive forestlands (for carryforward purposes only) ORS 315.104 and 315.106 No. Preliminary certifications must have been requested before December 31, 2012. Yes, 3 years. Certified by Department of Forestry, 503-945-7200.​
Description: The credit equals 50 percent of the reforestation project costs paid or incurred to reforest underproductive Oregon forestlands. Taxpayer is allowed one-half of the credit in the tax year of preliminary certification and one-half in the tax year when the new forest is certified as established. Refer to the ORS regarding credits for tax years before 2002. See ORS 315.104(3) for cost limitations.
Renewable energy development contributions (for carryforward purposes only) ORS 315.326
No. Beginning on or after July 1, 2011 and before January 1, 2018. Yes, 3 years. Certified by Department of Energy,
800-221-8035.
Description: 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 websites. An addition to your Oregon income for deducted expenses may be required if you claim this credit.
Renewable energy resource equipment manufacturing facility (for carryforward purposes only) ORS 315.341 Yes. Beginning January 1, 2012. Preliminary certification must be received before January 1, 2014. Yes, 8 years. Certified by Business Oregon, (503) 986-0123 or www.oregon4biz.com.
Description: The program allowed 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").
Repatriation credit (due to IRC 965) (for carryforward purposes only)​

No. Tax years beginning on or after January 1, 2017 and before January 1, 2018. Yes, 5 years. Use and include Oregon Form OR-REPAT-CR
Description: SB 1529 (2018) created a one-time tax credit equal to the lesser of Oregon tax attributable to the 2014-2016 ORS 317.716 addition or the 2017 one-time repatriation. See Oregon Form OR-REPAT-CR. This form must be included with your OR-20 or OR-20-INC return to claim the credit. This credit is not allowed if you took a subtraction for listed foreign jurisdiction income previously included in Oregon income. See OAR 150-317-0652 for more information.  
Reservation enterprise zone 
ORS 315.506 (see Form 150-102-046)
No. Tax years beginning on or after January 1, 2002 and before January 1, 2028. No. Contact Business Oregon, 503-986-0123 or www.oregon4biz.com.
Description: The credit is available to eligible businesses operating a new business facility in a reservation enterprise zone. The credit equals 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.  
Rural technology workforce development ORS 315.523 No. Tax years beginning on or after January 1, 2017. ​Yes, 3 years. ​Taxpayers must keep records for audit verification.
Description: The credit equals 12 percent of a taxpayer’s expenses that are incurred to establish and implement an employee training program. A qualifying employee training program must be operated in collaboration with a local community college operated under ORS Chapter 341. In addition, the program must be operated in a qualifying county. The term qualifying county is defined in statute.
​Short line railroad rehabilitation ORS 315.593
​Yes. 
​For tax years beginning on or after January 1, 2020 and before January 1, 2026.
​Yes, 5 years.
​Certified by Oregon Department of Transportation, www.oregon.gov/odot. 
​Description: The short line railroad rehabilitation tax credit is a new tax credit awarded for railroad rehabilitation. The credit is calculated as the least of:

(1) $1,000 per mile of a Tier 1 short line railroad owned by a taxpayer, 

(2) $3,500 per mile of a Tier 2 short line railroad owned by a taxpayer, or 

(3) 50% of the short line railroad rehabilitation project costs paid or incurred by a taxpayer during the tax year in which the credit is claimed.​
​ ​
Transportation projects (for carryforward purposes only)​ ORS 315.336
Yes.
Transportation project credits, other than alternative fuel vehicle infrastructure project credits, available for tax years beginning on or after January 1, 2011 and before January 1, 2016. Alternative fuel vehicle infrastructure project credits available for tax years beginning on or after January 1, 2011 and before January 1, 2018.  ​
Yes, 5 years.
Certified by Department of Energy, 800-221-8035.
Description: This 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").
University venture development fund
ORS 315.640
No. Tax years beginning on or after January 1, 2006 and before January 1, 2022. No. Certified by the Oregon university that established the fund.
Description: The credit is available for contributions to a university venture development fund when a tax credit certificate has been issued. The credit equals 60 percent of the certified amount with limitations as to how much may be claimed yearly. The tax credit may not exceed $600,000.

For tax years beginning on or after January 1, 2014, the university venture development fund contribution credit shall be claimed in three consecutive tax years, beginning with the year in which the credit's initially allowed.

An addition to your Oregon income for deducted expenses may be required if you claim this credit.  
Weatherization lender's credit
(for carryforward purposes only)
ORS 317.111

No. For loans made before November 1, 1981. Yes, 15 years. Lender must keep records for audit verification.
Description: The credit is available to commercial lending institutions for below market rate loans made before November 1, 1981 for financing weatherization projects. The credit was equal to the difference between the amount of interest charged at a rate of 6.5 percent and the amount that would have been charged at a lesser of 12 percent or the average percent the lending institution charged for home improvement loans.









​​​​