Oregon Administrative Code

150-317-0170 Minimum Tax (1)(a) For tax years beginning on or after January 1, 2009, the tax liability of an affiliated group of corporations filing a consolidated return may not be less than the minimum tax as defined in ORS 317.090. Only one minimum tax is charged per return, r…

150-317-0190 Affordable Housing Credit; Definitions; Transfers; Carry Forward of Unused Credit (1) Definitions, as used in ORS 317.097. (a) Community Rehabilitation Program. A "community rehabilitation program" is a program sponsored by a nonprofit corporation or local government…

150-317-0200 Commercial Lending Institution Loans for Underground Storage Tanks or Soil Remediation (1) ORS 317.099 was repealed December 31, 1991. On January 1, 1992, any finance charge that would have been eligible for a tax credit to a commercial lending institution under ORS …

150-317-0210 Carryover of the Lender’s Credit for Weatherization Loans An excess Lender’s Credit may be carried forward for up to 15 years. Carryovers from tax years beginning in 1977 may not be claimed on the taxpayer’s 1985 or 1986 corporation excise tax returns. Carryovers fro…

150-317-0220 Lender’s Credit: Loans to Wood Heat and Fuel Oil Heat Customers (1) A credit is available to commercial lending institutions for tax years beginning on or after January 1, 1982, for low interest loans made to wood heat and fuel oil heat customers to finance energy co…

150-317-0230 Lender’s Credit: Computation The credit is computed as follows: Step 1: Calculate the interest that would have been charged during the tax year if the qualifying loans had been issued at the commercial lending institution’s normal fixed rate of interest at the time t…

150-317-0240 Lender’s Credit: Definitions (1) Fuel oil is defined under rules adopted by the Office of Energy. (2) “Commercial lending institution” is defined in Section 22, Chapter 894, Oregon Laws 1981 to include state and federal credit unions maintaining an office in the stat…

150-317-0245 Commencement of Long Term Enterprise Zone Tax Credit For purposes of determining the commencement of the tax credit under ORS 317.124, a facility is “placed in service” when a certified business has received a permit to occupy and use the building for its intended pu…

150-317-0250 Long Term Enterprise Zone Distributions (1) Distributions from the Long Term Enterprise Zone Fund to local taxing districts under ORS 317.131 include only corporate tax liability payments received prior to the department’s calculation of the distribution for the year…

150-317-0260 Lender's Credit for Agriculture Workforce Housing (1) A credit is available to commercial lending institutions that make low interest loans to finance the construction or rehabilitation of agriculture workforce housing. (2) Qualifications for the Tax Credit: (a) The …

150-317-0270 Credit for Contributions of Computers, Scientific Equipment, and Research (1) In General. Charitable contributions of tangible personal property shall not be eligible for the credit if the donee educational institution does not use the property primarily for the educ…

150-317-0280 Qualified Research Credit (1) This rule applies to tax years beginning on or after January 1, 1989 and before January 1, 2018. (2) The Qualified Research credit may be calculated in any manner allowed under the applicable version of IRC 41. The applicable percentage …

150-317-0290 Research Tax Credit: Notice of Election The election to compute the credit under ORS 317.152 or 317.154 shall be made on the Oregon return for the tax year in which the credit is claimed. The election can be changed on an amended return subject to the limitations pro…

150-317-0300 Research Tax Credit: Alternative Computation (1) The research credit based on Oregon sales is the lesser of the following: (a) Five percent of the amount by which the qualified research expenses exceed 10 percent of Oregon sales, (b) $10,000 times the number of perce…

150-317-0310 Bad Debt Reserve of Financial Institutions Not Qualifying as Large Banks that Have Differences in Reserve for Federal and Oregon Tax Purposes (1) For tax years beginning on or after January 1, 1987, Oregon has adopted the federal provisions for treatment of bad debts…

150-317-0320 Modification of Federal Taxable Income: Dividends from Certain Subsidiaries (1) For taxable years beginning before January 1, 1986, a corporation owning 50 percent or more of the voting stock of another corporation is allowed to subtract from federal taxable income a…

150-317-0330 Modification for Dividends Received (1) For dividends received or accrued after December 31, 1987, in tax years ending after December 31, 1987, a corporation is allowed to subtract from federal taxable income 80 percent of dividends received or deemed received from a…

150-317-0340 Modification of Federal Taxable Income: Internal Revenue Code Subpart F Income A taxpayer that owns stock in a “Controlled Foreign Corporation,” as defined in IRC Section 957, may be required to include in federal taxable income its pro rata share of the subpart F in…

150-317-0350 Oregon Subtraction Where Charitable Contribution Is Reduced Under Federal Law Under IRC section 170(d)(2)(B), a corporation’s current year charitable contribution must be reduced by a corresponding increase in the corporation’s NOL carryover. To derive Oregon taxable…

150-317-0360 Definition of “State” For purposes of ORS 317.309, the term “state” shall mean any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and a territory or possession of the United States, and any foreign country or political subdivis…

150-317-0370 Bad Debt Reserve of Financial Institutions that Have Changed From Reserve Method to Specific Charge-off Method (1) For tax years beginning on or after January 1, 1987, Oregon has adopted the federal provisions for treatment of bad debts of financial institutions prov…

150-317-0380 Taxes on Net Income or Profits Imposed by any State or Foreign Country For purposes of ORS 317.314, “net income” is income subject to taxation after allowable deductions and exemptions have been subtracted from gross or total income. This rule shall apply to all taxa…

150-317-0390 IRC Section 338: Application to Oregon (1) Internal Revenue Code (IRC) Section 338 applies when at least 80 percent of the voting power and total value of the stock of a target corporation is acquired by a purchasing corporation. Under the election provided by IRC 33…

150-317-0400 Payments Received Under Federal Safe Harbor Lease Agreements For Transactions Entered Into in Tax Years Beginning on or After January 1, 1983 (1) Oregon law provides that safe harbor lease transactions will not be treated as a lease, or in “any other way” be recogniz…

150-317-0410 Payments Received Under Federal Safe Harbor Lease Agreements for Transactions Entered Into in Tax Years Beginning Prior to 1983 (1) Oregon has not adopted the safe harbor lease provisions contained in the federal Economic Recovery Tax Act of 1981 (IRC 168(f)(8)). Sal…

150-317-0420 Modification of Federal Taxable Income: Difference Between Oregon and Federal Bases on Assets Sold, Exchanged or Otherwise Disposed Of (1) Oregon law and federal law differ substantially with respect to allowable methods of depreciation, depletion, or other cost reco…

150-317-0430 Modification of Federal Taxable Income: Timber Cut but Unsold (1) For federal tax purposes, a taxpayer may elect under Section 631(a) of the Internal Revenue Code to treat the cutting of timber as a sale or exchange of such timber, even if it remains unsold at the en…

150-317-0440 Depletion Allowance; Method of Computation Except in the case of metal mines with respect to which percentage depletion is allowed, the computation of the allowance for depletion of mines, oil and gas wells, other natural deposits and timber, for a given year shall b…

150-317-0450 Depletion of Metal Mines In the case of metal mines, a taxpayer may compute its depletion allowance based on the cost of the property, as provided in ORS 317.374(2), or by using percentage depletion. For purposes of this section, metal mines include those mines where…

150-317-0460 Limitation on Oregon Net Loss Deduction (1) The Oregon net loss which is deductible in any year is the Oregon net loss of a prior year reduced by taxable income, if any, in the intervening tax year or years between the year of loss and the succeeding tax year in whic…

150-317-0470 Pre-change and Built-in Losses (1) Pre-change and built-in losses, other than capital losses, which the taxpayer elects to carry back under federal law, must be carried forward and subtracted in computing Oregon taxable income to the extent that such losses are appor…

150-317-0480 Definition of “Premiums” in the Insurance Sales Factor For purposes of computing the Insurance Sales Factor, the term “premiums” shall mean “premiums written” as required to be reported in the Annual Statement filed with the Department of Consumer and Business Servic…

150-317-0490 Insurers; Wage and Commission Factor (1) For tax years beginning on or after January 1, 2007, ORS 317.660 provides that the apportionment factor for insurance companies consists of only the insurance sales factor. (2) For tax years beginning prior to January 1, 2007,…

150-317-0500 Applicable Date OAR 150-317-0500 to 150-317-0670, concerning consolidated Oregon returns, apply to tax years beginning on or after January 1, 1986. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.705 History: Renumbered from 150-317.705, RE…

150-317-0510 Unitary Business (1) This rule is based partially on a model regulation adopted by the Multistate Tax Commission to promote uniform treatment of the unitary business principle by the states. Sections (3) through (10) of this rule apply to tax years beginning on or af…

150-317-0520 Direct or Indirect Relationships In determining whether a unitary business exists, all direct and indirect relationships may be considered. This is true even when the relationships extend to corporations not includable in the consolidated return. Example 1: Corporati…

150-317-0530 Corporations Doing Business Outside the United States A corporation included in a consolidated federal return shall not be excluded from a consolidated Oregon return simply because its business operations are conducted outside the United States. Statutory/Other Autho…

150-317-0540 Consolidated Oregon Return: Format and Information Required (1) Generally, the consolidated Oregon return must be filed by and in the name of the common parent corporation. If the common parent corporation is not a member of the affiliated group filing the consolidat…

150-317-0550 Consolidated Oregon Return: Affiliated Group (1) A corporation filing a consolidated federal return must file a consolidated Oregon return. The consolidated Oregon return must include the same affiliated group included in the consolidated federal return, except as pr…

150-317-0560 Consolidated Oregon Return: Credits The amount of credit that may offset tax on a consolidated Oregon return is not limited to the tax attributable to the corporation earning the credit. This provision applies to credits carried forward from years in which a separate…

150-317-0570 Different Apportionment Factors for Purposes of ORS 317.710(5)(b) (1) An Oregon taxpayer that is permitted or required to use different apportionment factors under Oregon law cannot be included in an Oregon consolidated return with another Oregon taxpayer using the s…

150-317-0580 Consolidated Oregon Return: Copy of Federal Return Required (1) A complete copy of the taxpayer’s federal return must be attached to the Oregon return. (2) If an affiliated group filing a consolidated federal return is required to file more than one Oregon return und…

150-317-0590 Interinsurance and Reciprocal Exchanges (1) Affiliated interinsurance and reciprocal exchanges may elect to file a consolidated return under ORS 317.710(7). The election shall be made by attaching a statement to the timely filed (including extensions) consolidated ta…

150-317-0600 Limitations on Deduction of Group Losses (1) Oregon has adopted the provisions of IRC Section 1503(f) that apply to corporations filing consolidated returns and limit the use of group losses to offset income of a subsidiary paying dividends on preferred stock. (2) Th…

150-317-0610 Modified Federal Consolidated Taxable Income Federal consolidated taxable income must be modified if the affiliated group of corporations consists of more than one unitary group or includes any alien, domestic, or foreign insurer that is excluded from the consolidate…

150-317-0620 Modified Federal Consolidated Taxable Income — Contribution Deduction for the Oregon Consolidated Group (1) In general. The contribution deduction allowed corporations subject to taxation under Oregon Revised Statutes (ORS) Chapter 317 or 318, that file federal conso…

150-317-0630 Oregon Return: Apportionment Formula (1) Each member of an affiliated group of corporations must be treated as a separate corporation for purposes of determining whether it is subject to the tax jurisdiction of Oregon. A corporation is subject to the tax jurisdiction…

150-317-0640 Member of a Unitary Group Incorporated in a Listed Foreign Jurisdiction The following provisions are intended as guidance for any corporation doing business in this state that is part of a unitary group that includes a member incorporated in a foreign jurisdiction li…

150-317-0651 Repatriation Tax Credit (1)(a) For tax years beginning on or after January 1, 2017, and before January 1, 2018 (the 2017 tax year), a repatriation tax credit is allowed under ORS chapter 317 or 318 for Oregon tax attributable to income reported under section 965 of t…

150-317-0652 Modification for Listed Jurisdiction Amounts Previously Included in Income; Election in Lieu of Claiming the Repatriation Tax Credit (1) A taxpayer may elect to claim a modification under ORS 317.038 for tax year 2017, 2018, or, when applicable, both years, to subtra…