Also, Senate Bill (SB) 1524 (2022) added the provision that a three-year net operating loss carryback is allowed for eligible taxpayers.
HB 4002 tasks the Oregon Department of Revenue (DOR) with creating the refundable tax credit program with associated application process, tax forms, and apportionment criteria if all applications exceed the $55 million annual cap on the total credit approved by the Legislature.
Getting started
Applications for the tax credit open January 1, 2024 and are due by January 31, 2024.
Written notice to all qualifying applicants will be provided no later than June 1, 2024. The notice will state the maximum amount of the credit the taxpayer is eligible to claim on their return.
Listening sessions
The department hosted several listening sessions between July 11, 2022 and July 21, 2022 with representatives from different agricultural sectors and groups. Representatives from the Bureau of Labor and Industries (BOLI), Employment Department, Department of Agriculture, and Business Oregon were also at each session. The purpose of the listening sessions was for the department to better understand:
- The various payment methods, eg., piece-rate, hourly, salary used in different agricultural sectors.
- How different agricultural sectors expect to calculate overtime payments.
- Challenges to calculating overtime payments.
The information gathered will help the department move forward with design of the application process and determine the information employers will need to apply for the overtime wage tax credit. We appreciate the knowledge shared and are eager to continue with the implementation process.
A PDF file of the PowerPoint used during the listening sessions and a one-page summary of the information shared with participants is available in the quick links. If you need to reach out to the team, please email us.
Program implementation timeline
2022
- Host agricultural sector listening sessions.
- Establish communications with agricultural employers.
- Create guidance and draft form for tax credit application process. This may allow employers to consider pay data – gathering and reporting – during 2023.
2023
- Employers collect information about overtime paid to employees.
- Establish the tax credit application process.
- Create Revenue Online application program.
- Create taxpayer form(s) and letters.
- Approve administrative rules for the program.
2024
- Employers apply for tax credit January 1 through January 31, 2024.
- Applicants will be granted an automatic filing extension.
- Department apportions credit to approved applicants, if approved tax credit requests exceed the $55 million program cap.
- Taxpayers are notified of eligible tax credit no later than June 1, 2024.