reglab/statecodes huggingface dataset:
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0150 - Adoption of Federal Exempt Organizations

Current through Register Vol. 63, No. 7, July 1, 2024
NOTE:
Health Maintenance Organizations. With the
				adoption of Oregon Laws 1987, Ch. 293, Section 36, (Enrolled HB 2225), Oregon
				exempts the same organizations from Oregon corporation income or excise tax as
				tax exempt for federal tax purposes, with the exception of health maintenance
				organizations (HMOs). HMOs are not exempt from the Oregon Corporation income or
				excise tax for tax years beginning prior to January 1, 1989, if a substantial
				part of their activities consists of providing commercial type insurance. For
				tax years beginning on or after January 1, 1989, HMOs are exempt for Oregon tax
				purposes to the same extent they are exempt for federal tax purposes. For
				taxable years beginning prior to January 1, 1987, the law and corresponding
				rules applicable for those years shall remain in full force and effect.
Insurance Companies. For tax years beginning on or after
				January 1, 1987 and before January 1, 1997, corporations exempt from Oregon
				corporation excise or income tax include;
1) Foreign or alien insurance companies and
			 foreign or alien interinsurance and reciprocal exchanges, upon which a tax on
			 premiums is levied;
2) Domestic
			 insurance companies organized after January 1, 1971, owned or controlled by a
			 foreign insurance company or by a foreign corporation owning or controlling a
			 foreign insurance company, upon which a tax on premiums is levied. Effective
			 for tax years beginning on or after January 1, 1997, foreign or alien insurance
			 companies are exempt from the corporation excise tax only with respect to the
			 underwriting profit derived from writing wet marine and transportation
			 insurance subject to tax under ORS
			 731.824 and ORS
			 731.828.
Other Exempt Corporation. Oregon specifically exempts those
				corporations listed under ORS
				317.080, including:
1) Corporations organized and operated
			 primarily for the purpose of furnishing permanent residential, recreational and
			 social facilities primarily for elderly persons;
2) People's utility districts established
			 under ORS Chapter 261;
3)
			 Charitable risk pools described in section
			 501(n) of the
			 Internal Revenue Code; and
4)
			 Qualified state tuition programs described in section
			 529 of the Internal Revenue
			 Code.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.080
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0160 - Exemption and Return Requirements

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For taxable years beginning on or after
			 January 1, 1987, corporations exempt for federal tax purposes, will no longer
			 need to submit an affidavit or a federal determination letter to the department
			 as previously required. This does not, however, preclude the department from
			 requesting information regarding the activities or other information from the
			 exempt corporation.
(2) In order to
			 establish its exemption and thus be relieved of the duty of filing returns and
			 paying taxes, each organization claiming exemption for Oregon purposes but
			 which is not exempt for federal purposes must file with the department:
(a) An affidavit showing the character of the
			 organization, the purpose for which it was organized, its actual activities,
			 the sources and the disposition of its income, whether or not any of its income
			 is credited to surplus or may inure to the benefit of any private stockholder
			 or individual (see below), and in general all other facts relating to its
			 operations which affect its right to exemption;
(b) A copy of the articles of association or
			 incorporation;
(c) The by-laws of
			 the organization; and
(d) The
			 latest financial statement showing the assets, liabilities, receipts and
			 disbursements of the organization. The articles should clearly indicate the
			 disposition to be made of surpluses in the event of termination.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0170 - Minimum Tax

Current through Register Vol. 63, No. 7, July 1, 2024
(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, regardless of the number of corporations in the group that
			 are doing business in Oregon.
Example
			 1
:
X Corporation and its only subsidiary, Y
			 Corporation, are doing business in Oregon and file a consolidated Oregon excise
			 tax return showing a net loss for the 2009 tax year. The consolidated Oregon
			 excise tax return properly shows Oregon sales for X of $500,000 and for Y of
			 $250,000. The minimum tax for the year is $500 based on Oregon sales of
			 $750,000.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0180

Current through Register Vol. 63, No. 7, July 1, 2024
Stat. Auth.: ORS
				  305.100,
				  317.092
Stats. Implemented: ORS
				  317.092
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0190 - Affordable Housing Credit; Definitions; Transfers; Carry Forward of Unused Credit

Current through Register Vol. 63, No. 7, July 1, 2024
(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 unit for the rehabilitation of low income
			 housing.
(b) Project. A "project"
			 is one or more units of housing that will be sold or rented to households whose
			 incomes are less than 80 percent of the area median income.
(c) Time the qualified loan for housing
			 construction, development, acquisition or rehabilitation is made. The "time the
			 qualified loan for housing construction, development, acquisition or
			 rehabilitation is made" is the date a note is signed for a loan and the
			 interest rate becomes effective with the closing of the loan, or the date a
			 conversion loan becomes a permanent loan. Either date may be used to determine
			 the interest rate on nonsubsidized loans made under like terms and conditions
			 as the qualifying affordable housing loan.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0200 - Commercial Lending Institution Loans for Underground Storage Tanks or Soil Remediation

Current through Register Vol. 63, No. 7, July 1, 2024
(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
			 317.099 on the outstanding term
			 of any loan made under ORS
			 317.099, shall cease to be
			 eligible for a tax credit. Such finance charges accrued after December 31,
			 1991, shall be eligible for reimbursement by the Department of Environmental
			 Quality, under the provisions of ORS
			 466.705 to
			 466.835.
(2) A commercial lending institution with a
			 fiscal tax year ending after January 1, 1992, shall receive a tax credit on all
			 eligible finance charges received or accrued before that date.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.099
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0210 - Carryover of the Lender's Credit for Weatherization Loans

Current through Register Vol. 63, No. 7, July 1, 2024
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 from tax
				years beginning in 1978 may not be claimed on the taxpayer's 1986 corporation
				excise tax return. For purposes of computing the remaining carryover from tax
				years beginning in 1977 and 1978, the years in which the credit carryover was
				not allowed reduces the number of carryover years remaining. Credit carryovers
				from tax years beginning in 1979 and later may be claimed in tax years
				beginning in 1985 and 1986. In addition to the Lender's Credit Form
				(150-102-125) a separate schedule showing how the amount of unused credit
				carryover is computed shall be attached to the return for tax years that the
				unused credit carryover is being claimed.
Forms referenced are available from the
				  agency.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.111
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0220 - Lender's Credit: Loans to Wood Heat and Fuel Oil Heat Customers

Current through Register Vol. 63, No. 7, July 1, 2024
(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 conservation measures. To qualify, the loans
			 must be made on or after January 1, 1982.
(2) The amount of the credit is equal to the
			 difference between the interest charged on a qualifying loan, at an interest
			 rate of 6 percent, and the interest that would have been charged if the loan
			 had been issued at the lending institution's normal fixed interest rate. The
			 fixed interest rate cannot exceed a maximum rate set by the director of the
			 Office of Energy. The normal fixed interest rate is the rate that would have
			 been charged on a similar loan made on the same day as the qualifying loan. The
			 initial rate of interest charged on variable rate loans may be substituted for
			 the fixed rate if the lending institution does not make fixed rate
			 nonsubsidized loans. If the credit exceeds the commercial lending institution's
			 tax liability, the balance may be carried forward for up to 15 years.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.112
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0230 - Lender's Credit: Computation

Current through Register Vol. 63, No. 7, July 1, 2024
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 the loans were
				made.
Step 2: Determine the actual interest charged on the qualifying
				loans during the tax year at an interest rate of 6 ½ percent.
Step 3: Subtract the interest charged as determined in Step 2
				from the interest calculated in Step 1. The difference is the available
				lender's credit.
Normal loan fees and prepayment penalties do not affect the
				eligibility of a low interest loan. Loan fees financed as part of the
				qualifying loan are includable in computing the interest that would have been
				charged at the lending institution's normal interest rate as well as the actual
				interest charged on the qualifying loan. If a qualified loan is terminated
				because of a prepayment or default, interest is computed from the start of the
				tax year through the date of termination at both the 6 ½ percent rate
				and the normal fixed interest rate determined at the time the loan was made.
				The amount by which the interest charged at the normal fixed interest rate
				exceeds the interest charged at 6 ½ percent is included in computing the
				available lender's credit.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.112
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0240 - Lender's Credit: Definitions

Current through Register Vol. 63, No. 7, July 1, 2024
(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 state. Although credit
			 unions are included in the definition, they are exempt from the Oregon
			 Corporate Excise Tax by ORS
			 317.080(12).
			 Section 28, Chapter 894, Oregon Laws 1981 grants a credit "...against taxes
			 otherwise due under this chapter for the taxable year." Therefore, unless a
			 credit union loses its exemption from the Oregon Corporation Excise Tax by
			 either paying more than 8 percent interest on share accounts or by having
			 unrelated business taxable income, it would not be eligible for the refundable
			 credit.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.112
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0245 - Commencement of Long Term Enterprise Zone Tax Credit

Current through Register Vol. 63, No. 7, July 1, 2024
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 purpose.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  317.124
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0250 - Long Term Enterprise Zone Distributions

Current through Register Vol. 63, No. 7, July 1, 2024
(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.
(2) Any
			 reduction of corporate tax liability of a taxpayer for a tax year, which is
			 recognized and accepted subsequent to the deposit of that taxpayer's tax
			 payments for the tax year into the Fund, will not be considered when
			 determining the amount of the distribution to local taxing districts.
(3) If the department errs when
			 calculating the correct amount of a distribution, the department may adjust the
			 erroneous distribution and may require the return of any erroneously
			 distributed payments made to local taxing districts.
(4) If the department requires the return of
			 erroneously distributed payments made to local taxing districts; the department
			 shall, if practicable, subtract the amount of the erroneously distributed
			 payment to the local taxing district from the next distribution to the local
			 taxing district. Otherwise, the department shall bill the local taxing district
			 for any amount of an erroneously distributed payment that the department is
			 unable to recover from the local taxing district by subtracting funds from the
			 next distribution to the local taxing district.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.131
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0260 - Lender's Credit for Agriculture Workforce Housing

Current through Register Vol. 63, No. 7, July 1, 2024
(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 agriculture workforce housing must be
			 located in Oregon.
(b) The
			 interest rate charged by the lending institution cannot exceed 13.5 percent per
			 annum. If the interest rate exceeds 13.5 percent for a short period of time,
			 but the annual rate for the year is 13.5 percent or less, the credit would not
			 be lost for that year. Each year will stand alone in determining whether the
			 credit is available for the year.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0270 - Credit for Contributions of Computers, Scientific Equipment, and Research

Current through Register Vol. 63, No. 7, July 1, 2024
(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 education of students in Oregon. The requirement that the
			 property be used primarily for the education of students in Oregon is met if
			 the donee provides the donor (taxpayer) with a written statement that the
			 property's use is in accordance with this requirement. Such written statement
			 shall be made available to the department upon request. For purposes of this
			 rule "primarily" means at least 80 percent.
(2) Substantiation of Fair Market Value.
(a) When the taxpayer files its Oregon return
			 claiming a credit under this section, a schedule shall be attached to the
			 Oregon return listing the following information:
(A) The name and address of the donee;
(B) A description of the property
			 contributed;
(C) The date or dates
			 of the donation;
(D) The fair
			 market value of the donation.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0280 - Qualified Research Credit

Current through Register Vol. 63, No. 7, July 1, 2024
(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 for Oregon purposes is 5%
			 regardless of the method used to calculate the credit.
Publications: Contact the Oregon Department of Revenue to
				  learn how to obtain a copy of the publication referred to or incorporated by
				  reference in this rule pursuant to ORS
				  183.360(2) and
				  183.355(1)(b).
Statutory/Other Authority: ORS
				  305.100 & ORS
				  317.152
Statutes/Other Implemented: ORS
				  317.152
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0290 - Research Tax Credit: Notice of Election

Current through Register Vol. 63, No. 7, July 1, 2024
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 provided in 314.410
				and 314.415.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.153
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0300 - Research Tax Credit: Alternative Computation

Current through Register Vol. 63, No. 7, July 1, 2024
(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.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 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

Current through Register Vol. 63, No. 7, July 1, 2024
(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:
The addition to reserve for bad debts is the amount necessary
				to increase the balance of the reserve (at the close of the current year) to
				the greater of: [Table not included. See ED. NOTE.]
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0320 - Modification of Federal Taxable Income: Dividends from Certain Subsidiaries

Current through Register Vol. 63, No. 7, July 1, 2024
(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.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.267
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0330 - Modification for Dividends Received

Current through Register Vol. 63, No. 7, July 1, 2024
(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 another corporation. Dividends deemed received
			 includes subpart F income included in federal taxable income pursuant to IRC
			 section 951. In order to take the Oregon dividends received deduction, however,
			 the taxpayer must first add back the federal dividend received deductions
			 allowed by IRC sections 243 and 245 and the dividends eliminated under the
			 federal consolidation rules. Exceptions to this general rule are as follows:
(a) Dividends received from corporations
			 owned less than 20 percent by the recipient must be reduced by a 70 percent
			 rather than 80 percent dividends received deduction for dividends received or
			 accrued after December 31, 1987.
(b) Dividends received from a foreign sales
			 corporation and deducted under IRC section 245(c) are not added back. These
			 dividends are totally excluded from Oregon taxable income.
(c) Dividends received from a related
			 domestic international sales corporation are totally excluded from Oregon
			 taxable income. A subtraction is allowed for these dividends to the extent they
			 are included in federal taxable income.
(d) Dividend income included in federal
			 taxable income pursuant to the "gross-up" provisions of IRC section 78 is not
			 taxable by Oregon. These dividends are subtracted in full under ORS
			 317.273.
(e) Dividends eliminated under IRC section
			 243(a)(3) are not added back to federal taxable income on the Oregon return if
			 the recipient and the payer corporations are both members of the same unitary
			 group filing an Oregon consolidated tax return. If they are not members of the
			 same Oregon consolidated group, the 100 percent federal dividend deduction is
			 added back to federal taxable income and the appropriate Oregon dividends
			 received deduction is subtracted.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0340 - Modification of Federal Taxable Income: Internal Revenue Code Subpart F Income

Current through Register Vol. 63, No. 7, July 1, 2024
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.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.288
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0350 - Oregon Subtraction Where Charitable Contribution Is Reduced Under Federal Law

Current through Register Vol. 63, No. 7, July 1, 2024
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.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  315.311
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0360 - Definition of "State"

Current through Register Vol. 63, No. 7, July 1, 2024
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.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.309
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0370 - Bad Debt Reserve of Financial Institutions that Have Changed From Reserve Method to Specific Charge-off Method

Current through Register Vol. 63, No. 7, July 1, 2024
(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 Section
			 585(c) of the
			 Internal Revenue Code (IRC). Financial institutions considered large banks,
			 defined in IRC 585(c)(2), must recapture the balance in their reserve for bad
			 debts over a four-year period unless they elect the federal "cut-off" method.
(a) The recapture provisions of IRC 585(c)(3)
			 shall be applied to the ending reserve balance calculated for Oregon tax
			 purposes for the 1986 tax year.
(b)
			 For each of the four recapture years, an Oregon addition modification shall be
			 made if the Oregon reserve recaptured exceeds the federal reserve recaptured.
			 An Oregon subtraction modification shall be made if the federal reserve
			 recaptured exceeds the Oregon reserve recaptured.
Example:
Lending Corp., a calendar year filer, has
				a bad debt reserve of $5,000,000 for federal and $3,000,000 for Oregon tax
				purposes on December 31, 1986. Lending Corp. qualifies as a large bank. It
				elects to recapture 10 percent of the bad debt reserve as income on its 1987
				federal return. An Oregon subtraction modification of $200,000 is calculated as
				follows: [Table not included. See ED. NOTE.]
(c) Financially troubled banks don't have to
			 recapture existing bad debt reserves as long as their nonperforming loans
			 exceed seventy-five percent of the average of their equity capital for the
			 year.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0380 - Taxes on Net Income or Profits Imposed by any State or Foreign Country

Current through Register Vol. 63, No. 7, July 1, 2024
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.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.314
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0390 - IRC Section 338: Application to Oregon

Current through Register Vol. 63, No. 7, July 1, 2024
(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 338(g), the acquiring corporation treats the
			 purchase of the target corporation's stock as the purchase of its assets. The
			 target's assets are given a stepped-up basis and the target reports gain as if
			 its assets were sold at fair market value. The seller recognizes a gain on the
			 sale of stock.
(2) For all Oregon
			 apportionment computations discussed in this rule, the gross receipts from the
			 deemed sale of assets are not included in the target's sales factor.
(3) If the target filed a separate federal
			 return for the period ending with the date of acquisition, the gain from the
			 deemed sale of assets must be included in the separately filed final return of
			 the target corporation for the period which ends on the date of acquisition.
(a) For Oregon apportionment purposes, the
			 apportionment factors computed on the separate Oregon return for the period
			 ending with the date of acquisition must be used.
(b) The deemed gain on sale of assets is
			 subject to Oregon apportionment if the target is doing business in Oregon.
(c) The gain on sale of stock is
			 taxed by Oregon to the selling corporation through apportionment if the stock
			 is considered a business asset and the seller is doing business in Oregon.
(d) The gain on sale of stock is
			 taxed by Oregon to the selling corporation through allocation if the stock is
			 considered a nonbusiness asset and the seller's commercial domicile is in
			 Oregon.
Example:
S Corporation, a calendar year filer, and
				its nonunitary subsidiary, T Corporation, file separate federal returns. T does
				business in Oregon. S does not. On July 31, 2002, P Corporation purchases all
				of T's stock from S and makes an election under IRC 338. T files a separate
				short period Oregon return through July 31, 2002, and apportions income,
				including the deemed sale of assets, to Oregon using its apportionment factors
				for the year to date. S's gain on the sale of T's stock, an intangible, is not
				taxed by Oregon.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 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

Current through Register Vol. 63, No. 7, July 1, 2024
(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.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0410 - Payments Received Under Federal Safe Harbor Lease Agreements for Transactions Entered Into in Tax Years Beginning Prior to 1983

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Oregon has not adopted the safe harbor
			 lease provisions contained in the federal Economic Recovery Tax Act of 1981
			 (IRC 168(f)(8)). Sale and leaseback transactions must meet the prior federal
			 sale and leaseback provisions to qualify as a sale and leaseback for Oregon
			 corporation tax purposes. The Oregon treatment of a safe harbor lease
			 transaction for safe harbor lease transactions entered into in tax years
			 beginning prior to January 1, 1983 is as follows:
(a) The down payment received by the
			 seller-lessee is not taxable as income in the year received or accrued.
(b) The down payment made by the
			 purchaser-lessor is not deductible from income. The payment is considered a
			 payment in lieu of federal income taxes which are not deductible under ORS
			 Chapters 317 and 318.
(c) The
			 purchaser-lessor is not taxable in Oregon under ORS Chapter 317 or 318 solely
			 due to federal tax ownership under a safe harbor lease agreement.
(d) The property subject to the safe harbor
			 lease agreement is considered property of the seller-lessee. Depreciation is
			 allowed based upon the original cost less the down payment received.
(e) If the corporation is doing business
			 within and without Oregon and the apportionment provisions (ORS
			 314.650 through
			 314.667) apply, the property
			 subject to the safe harbor lease agreement is included in the property factor
			 of the seller-lessee. Lease payments made by the seller-lessee under the
			 agreement are not included in the computation of the property factor.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0420 - Modification of Federal Taxable Income: Difference Between Oregon and Federal Bases on Assets Sold, Exchanged or Otherwise Disposed Of

Current through Register Vol. 63, No. 7, July 1, 2024
(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.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.356
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0430 - Modification of Federal Taxable Income: Timber Cut but Unsold

Current through Register Vol. 63, No. 7, July 1, 2024
(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.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.362
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0440 - Depletion Allowance; Method of Computation

Current through Register Vol. 63, No. 7, July 1, 2024
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.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.068
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0450 - Depletion of Metal Mines

Current through Register Vol. 63, No. 7, July 1, 2024
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.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.374
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0460 - Limitation on Oregon Net Loss Deduction

Current through Register Vol. 63, No. 7, July 1, 2024
(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).
Attachment referenced is not included in rule text.
Click here for PDF of
				  attachment
.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.476