Oregon has three kinds of credits: standard, carryforward, and refundable. Standard credits can be claimed up to the amount of your tax liability for the year, but any extra amount can't be refunded. Carryforward credits can't be refunded, either, but any amount that is more than your tax liability for the year can be carried forward to another tax year. Refundable credits that are more than your tax liability for the year may be refunded to you.
A few credits are claimed on the return. All other credits are claimed using a credit code on Schedule OR-ASC or Schedule OR-ASC-NP. Some credits must be prorated (multiplied by the Oregon percentage) on a part-year or nonresident return. A few credits can be claimed only by shareholders of an S corporation that earned the credit.
See Tax benefits for families, and Oregon Surplus “Kicker" Credit for information about credits that can benefit individuals and families.
Credits claimed on the return
Standard credits claimed with a code
Carryforward credits
Refundable credits claimed with a code
Tax recaptures
Two refundable credits—the credit for contributions to an ABLE account and the credit for contributions to an Oregon 529 College Savings Network account—must be forfeited if the contributions are later withdrawn from the account and used for an unrelated purpose. The forfeited credit amount is added back to tax on the Oregon personal income return for the year when the withdrawal is made.