justicedao/ipfs_state_laws huggingface dataset:
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 percentage points by which the qualifying research expenses exceed 10 percent of Oregon sales; or (c) The taxpayer’s liability after other credits. (2) For tax years beginning on or after January 1, 2006, the credit may not exceed $2,000,000. The limit applies to the consolidated group when a consolidated Oregon return is filed. (3) For tax years beginning on or after January 1, 1995 and before January 1, 2006, the credit may not exceed $500,000. The limit applies to the consolidated group when a consolidated Oregon return is filed. (4) For tax years beginning before January 1, 1995, the credit may not exceed $50,000 or one-third of the excise tax liability of the taxpayer before credits, whichever is less. These limits apply to the consolidated group when a consolidated Oregon return is filed. (5) Credits otherwise allowable for tax years beginning before January 1, 1995 and not used in such years may not be carried forward. Credits otherwise allowable for tax years beginning on or after January 1, 1995 and not used in such years may be carried forward for up to 5 years. Example: A corporation has 1994 Oregon sales of $40,000,000, qualified research expenses of $4,900,000 and Oregon excise tax of $264,000 before credits. The allowable 1994 credit is calculated as follows: Credit before limitations: Qualified research expenses — $4,900,000 Less: Oregon sales — $40,000,000 x .10 10% of Oregon sales — (4,000,000) Excess — $900,000 x .05 Credit before limitations — $45,000 Limitations: Qualified research expenses in excess of 10% of Oregon sales — $900,000 Divide by Oregon sales — ÷ 40,000,000 Excess percentage points — 2.25 Multiply by $10,000 — x $10,000 $22,500 Maximum credit amount — $50,000 One-third of excise tax liability before credits ($264,000 ÷ 3) $88,000 The credit allowed is $22,500. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.154 History: Renumbered from 150-317.154, REV 68-2016, f. 8-15-16, cert. ef. 9-1-16 REV 5-2006, f. & cert. ef. 7-31-06 REV 8-2001, f. & cert. ef. 12-31-01 RD 3-1995, f. 12-29-95, cert. ef. 12-31-95 12-31-93 RD 7-1993, f. 12-30-93, cert. ef. 12-31-93
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 of financial institutions provided in Sections 585(a) and 585(b) of the Internal Revenue Code (IRC). These provisions apply to financial institutions not considered large banks, as defined in IRC 585(c)(2). (2) For Oregon tax purposes, the allowable addition to the reserve for bad debts shall be computed using the method provided in IRC 585(b), starting with the ending balance in the bad debt reserve calculated for Oregon tax purposes for the 1986 tax year. (a) For 1987 tax years, the federal law provides that the addition to reserve for bad debts shall be the greater of the amounts computed using the percentage method in IRC 585(b)(2) or the experience method in IRC 585(b)(3), as revised in 1986. (b) For tax years beginning on or after January 1, 1988, federal law provides that the addition to reserve for bad debts shall be no greater than the amount computed using the experience method in IRC 585(b)(2). (c) An Oregon addition modification shall be made if the federal addition exceeds the Oregon addition to the reserve for bad debts for the tax year. An Oregon subtraction modification shall be made if the Oregon addition exceeds the federal addition to the reserve for bad debts for the tax year. Example: Small Bank, Inc., must calculate its 1991 addition to its reserve for bad debts based on the following information: Base Year—1987 Federal reserve balance, 12/31/87—$600 Oregon reserve balance, 12/31/87—$400 Bad debts charged against Oregon and federal reserves during 1991—$500 Federal reserve balance, 12/31/91—$300 Oregon reserve balance, 12/31/91—$200 Total bad debts, after recoveries, sustained in current and 5 preceding years—$2,500 Outstanding loans, 12/31/87—$150,000 Outstanding loans, 12/31/91—$180,000 Sum of loans outstanding at end of current and 5 preceding years—$960,000 Using the experience method, the addition to the reserves for bad debts for 1991 is computed as follows:[Table not included. See ED. NOTE.] [Publications: The publication(s) referred to or incorporated by reference in this rule is available from the Department of Revenue pursuant to ORS 183.360(2) and ORS 183.355(6).] [ED. NOTE: To view attachments referenced in rule text, click here to view rule.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.259 History: REV 59-2017, f. & cert. ef. 8-8-17 Renumbered from 150-317.259-(A), REV 68-2016, f. 8-15-16, cert. ef. 9-1-16 RD 9-1992, f. 12-29-92, cert. ef. 12-31-92 RD 11-1988, f. 12-19-88, cert. ef. 12-31-88
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 amounts included as dividends from the subsidiary. The subtraction is limited, however, to the extent that the payor corporation is subject to Oregon tax. Example: Corporation S is a wholly-owned subsidiary of Corporation P. Corporation P does business only in Oregon, but Corporation S has activities within and without the state and an Oregon apportionment factor of 10 percent. In 1983, S pays dividends of $10,000, all of which are included in P’s federal taxable income. The allowable subtraction for P is $1,000 ($10,000 x 10 percent). (2) For tax years beginning on or after January 1, 1985, Oregon does not recognize any transaction between a corporation and a related domestic international sales corporation (DISC) or foreign sales corporation (FSC). Therefore, any dividends received in these years from a related DISC or FSC that are included in federal taxable income shall be subtracted to derive Oregon taxable income. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.267 History: Renumbered from 150-317.267-(A), REV 68-2016, f. 8-15-16, cert. ef. 9-1-16 RD 12-1985, f. 12-16-85, cert. ef. 12-31-85 RD 7-1983, f. 12-20-83, cert. ef. 12-31-83, Renumbered from 150-317.267
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 income (as defined in IRC Section 952) of the foreign corporation. If the foreign corporation is included with the taxpayer in a combined report permitted or required under ORS 314.363, any subpart F income attributable to the foreign subsidiary shall be subtracted from federal taxable income in arriving at Oregon taxable income. NOTE: With the adoption of Oregon Laws 1984, Ch. 1, (Enrolled HB 3029), ORS 317.288 was repealed. This rule will no longer be in effect for taxable years beginning on or after January 1, 1986. For all prior years, this rule shall remain in full force and effect. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.288 History: Renumbered from 150-317.288, REV 68-2016, f. 8-15-16, cert. ef. 9-1-16 RD 7-1983, f. 12-20-83, cert. ef. 12-31-83
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 income, the amount by which a corporation reduces its charitable contribution shall be subtracted from federal taxable income. Example: ABC corporation has current year federal taxable income (pre-NOL application) of $100,000 and NOL carry forward amounts from prior years of $120,000. The corporation has a current year charitable contribution of $15,000. Since the NOL application exceeds taxable income, ABC’s otherwise deductible $10,000 charitable contribution is converted to an additional NOL carry forward under IRC section 170(d)(2)(B). The remaining $5,000 excess contribution may be carried forward for five years under IRC section 170(d)(2)(A). For Oregon, ABC corporation reports federal taxable income (pre-NOL application) of $100,000 in the current year. The $10,000 reduction of the federal charitable contribution is shown as an “other subtraction” on the Oregon return. The remaining $5,000 excess charitable contribution is carried forward as under federal law. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.307 History: Renumbered from 150-317.307, REV 68-2016, f. 8-15-16, cert. ef. 9-1-16 RD 6-1996, f. 12-23-96, cert. ef. 12-31-96
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 subdivision thereof. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.309 History: Renumbered from 150-317.309, REV 68-2016, f. 8-15-16, cert. ef. 9-1-16 RD 12-1985, f. 12-16-85, cert. ef. 12-31-85
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 taxable years which are open to examination. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.314 History: Renumbered from 150-317.314, REV 68-2016, f. 8-15-16, cert. ef. 9-1-16 REV 2-2014, f. & cert. ef. 7-31-14 RD 11-1988, f. 12-19-88, cert. ef. 12-31-88 RD 12-1984, f. 12-5-84, cert. ef. 12-31-84
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 recognized for Oregon tax purposes. Therefore, for safe harbor lease transactions entered into in tax years beginning on or after January 1, 1983, the following Oregon modifications are required: (a) Seller-Lessee: (A) A depreciation subtraction is allowable based upon the original cost of the safe harbor lease property. (B) Lease payments made to the purchaser-lessor and deducted for federal tax purposes must be added to income. (C) Interest payments received from the purchaser-lessor and included in income for federal tax purposes must be subtracted from income. (b) Purchaser-Lessor: (A) Depreciation deducted for federal tax purposes must be added to income. (B) Lease payments received from the seller-lessee and included for federal tax purposes must be subtracted from income. (C) Interest payments made to the seller-lessee and deducted for federal tax purposes must be added to income. (2) Legal fees, accounting costs or similar expenses incurred or paid to third parties in connection with safe harbor leases are deductible. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.349 History: Renumbered from 150-317.349-(A), REV 68-2016, f. 8-15-16, cert. ef. 9-1-16 RD 12-1990, f. 12-20-90, cert. ef. 12-31-90 RD 12-1984, f. 12-5-84, cert. ef. 12-31-84 RD 7-1983, f. 12-20-83, cert. ef. 12-31-83
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 recovery. Therefore, the adjusted basis of a particular asset for Oregon tax purposes will often differ from federal adjusted basis. Upon the sale, exchange, or other disposition of such an asset, federal taxable income must be increased or decreased by the difference in depreciation, depletion, etc., allowed or allowable in previous years for Oregon and federal tax purposes. Example. B corporation purchased property in 1982 for $5,000. For federal tax purposes, B elected to expense the total cost under IRC Section 179 and, therefore, had a basis in the property of zero. For Oregon tax purposes, B had claimed $3,000 of depreciation on the property in 1982 and 1983, and had an adjusted basis of $2,000 in the property when it was sold in 1983. Federal taxable income for 1983 must be reduced by $2,000 ($5,000–3,000) in arriving at Oregon taxable income. (2) Effective for tax years ending after December 31, 1986, for property dispositions after February 28, 1986, the provisions of section 453C of the Internal Revenue Code concerning the proportionate disallowance rule have been adopted by Oregon as part of its tie to federal accounting methods. Under the federal provisions, a taxpayer’s average indebtedness is treated as an installment payment in the ratio of the face amount of installment obligations receivable to the adjusted basis in all assets. (3) In computing Oregon taxable income, a modification shall be made to reflect the difference in deemed installment income created for federal and Oregon tax purposes by the proportionate disallowance rule. Such a difference arises when the basis of assets for federal and Oregon tax purposes is not the same. If the Oregon deemed income is greater than the federal, the difference shall be an addition. If the Oregon deemed income is less than the federal, the difference shall be a subtraction. (4) Oregon has also adopted the repeal of IRC Section 453C through its tie to federal accounting methods. The repeal applies to dispositions in taxable years beginning after December 31, 1987. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.356 History: Renumbered from 150-317.356, REV 68-2016, f. 8-15-16, cert. ef. 9-1-16 RD 11-1988, f. 12-19-88, cert. ef. 12-31-88 RD 7-1983, f. 12-20-83, cert. ef. 12-31-83
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 end of the tax year. For Oregon tax purposes, the gain is not included in income until the actual sale takes place. (2) The gain from the sale or cutting of timber that is included as capital gain income for federal tax purposes under IRC 631(a) does not automatically qualify as capital gain income for Oregon tax purposes. Gain from the sale or cutting of timber not qualifying as capital assets under IRC 1221 shall not be used to offset capital losses. However, such gain may be used as an offset to ordinary losses. (3) In order to modify federal taxable income to reverse the effects of IRC Section 631(a), the taxpayer must compare the amount of Section 631(a) gain in beginning and ending inventory. If the amount of such gain in ending inventory exceeds the amount in beginning inventory, the difference is subtracted from federal taxable income. If the amount of Section 631(a) gain in beginning inventory exceeds the amount in ending inventory, the difference must be added to federal taxable income in arriving at Oregon taxable income. [Publications: Publications referenced are available from the agency.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.362 History: Renumbered from 150-317.362, REV 68-2016, f. 8-15-16, cert. ef. 9-1-16 RD 9-1992, f. 12-29-92, cert. ef. 12-31-92 RD 7-1983, f. 12-20-83, cert. ef. 12-31-83
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 be based upon the number of units of the particular class removed during that year and the unit cost for depletion purposes of such deposits or timber. The unit cost for depletion purposes of any taxable period is to be determined by dividing the sum of the amount to be recovered by depletion of the particular class at the beginning of the taxable period and the additions at cost during the period by the sum of the units of the particular class on hand at the beginning of the taxable period and the number of units acquired during such period. As to capitalization of carrying charges (items of expenses which do not add to the value of the property, such as interest and taxes), see IRC Section 266. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.374 History: Renumbered from 150-317.374(2), REV 68-2016, f. 8-15-16, cert. ef. 9-1-16 RD 7-1983, f. 12-20-83, cert. ef. 12-31-83 6-68, Renumbered from 150-317.290(2)
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 the metal being extracted occurs in a pure state, such as gold or silver, or where it is found in combination with other substances, such as in the case of aluminum obtained from bauxite. The percentage depletion allowance is equal to 15 percent of the gross income from the property during the tax year, but shall not in any case exceed 50 percent of the net income of the taxpayer (computed without allowance for depletion) from the property. In its first return made under the tax law, the taxpayer must state, as to each property with respect to which it has any item of income or deduction (in case of metal mines), whether it elects to have the depletion allowance for each such property for the tax year computed with or without reference to percentage depletion. An election once exercised under this paragraph cannot thereafter be changed by the taxpayer, and the depletion allowance in respect to each such property will for all succeeding tax years be computed in accordance with the election so made. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.374 History: Renumbered from 150-317.374(3), REV 68-2016, f. 8-15-16, cert. ef. 9-1-16 RD 12-1990, f. 12-20-90, cert. ef. 12-31-90 RD 7-1983, f. 12-20-83, cert. ef. 12-31-83 12-31-83, Renumbered from 150-317.290(3) 6-68
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 which the Oregon net loss deduction is claimed. Net losses occurring in tax years beginning prior to January 1, 1987, can be carried forward five tax years. Net losses occurring in tax years beginning on or after January 1, 1987, can be carried forward fifteen tax years. See the limitation on “apportioned” taxpayers in ORS 314.675. In computing the taxable income which will reduce the Oregon net loss which is carried forward, any refund of an expense used in computing the Oregon net loss which is excluded from gross income shall be added to and included in the taxable income of an intervening tax year. (2) If a consolidated Oregon return is filed in tax years beginning on or after January 1, 1986, the separate return limitation year (SRLY) rules as defined in Treasury Regulation §1.1502-1, shall be followed. Oregon net losses incurred in tax years beginning prior to January 1, 1986, shall be considered losses from a separate return limitation year. Therefore, the Oregon net losses from those years can be deducted in tax years beginning on or after January 1, 1986, only to the extent the same corporation that incurred the loss has Oregon net income on a separate basis. This limitation does not apply to a corporation that qualifies as a common parent. The provisions of this paragraph are demonstrated by the following examples: [Example not included. See ED. NOTE.] [Publications: The publication(s) referred to or incorporated by reference in this rule is available from the Department of Revenue pursuant to ORS 183.360(2) and 183.355(6).] [ED. NOTE: To view attachments referenced in rule text, click here to view rule.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.476 History: REV 32-2017, f. & cert. ef. 7-21-17 Renumbered from 150-317.476(4), REV 68-2016, f. 8-15-16, cert. ef. 9-1-16 RD 9-1992, f. 12-29-92, cert. ef. 12-31-92 RD 15-1987, f. 12-10-87, cert. ef. 12-31-87 RD 10-1986, f. & cert. ef. 12-31-86 12-31-83 1-69, Renumbered from 150-317.297(4)
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 apportioned or allocated to Oregon. All limitations imposed under ORS 317.478 apply to the loss carryforward amount. If the pre-change or built-in loss carried back for federal purposes is a capital loss, the provisions of OAR 150-317-0060 apply. (2) When the assets of a corporation are acquired by another corporation and the provisions of IRC section 382 apply, the Oregon apportionment factors of the old loss corporation for the reporting period ending on the date of ownership change are considered the Oregon apportionment factors of the new loss corporation existing at the time of the change in ownership. These apportionment factors must be used to compute the IRC section 382 limitation applicable to Oregon. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.478 History: Renumbered from 150-317.478, REV 69-2016, f. 8-15-16, cert. ef. 9-1-16 REV 5-2000, f. & cert. ef. 8-3-00 RD 9-1992, f. 12-29-92, cert. ef. 12-31-92
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 Services, Insurance Division. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.660 History: Renumbered from 150-317.660(1), REV 69-2016, f. 8-15-16, cert. ef. 9-1-16 REV 12-1999, f. 12-30-99, cert. ef. 12-31-99
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, the wages, salaries, commissions and other compensation for personal services included in the wage and commission apportionment factor denominator for insurers are the amounts required to be included in appropriate schedules of the annual report filed with the Insurance Division of the Department of Consumer and Business Services. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.660 History: Renumbered from 150-317.660(2), REV 69-2016, f. 8-15-16, cert. ef. 9-1-16 REV 5-2008, f. 8-29-08 REV 5-2000, f. & cert. ef. 8-3-00
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, REV 69-2016, f. 8-15-16, cert. ef. 9-1-16 RD 12-1990, f. 12-20-90, cert. ef. 12-31-90 RD 12-1985, f. 12-16-85, cert. ef. 12-31-85