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Oregon Free Printable 2023 Form OR-20-INC Instructions, Oregon Corporation Income Tax, 150-102-021-1 for 2024 Oregon Form 20-INC Instructions

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Form 20-INC Instructions
2023 Form OR-20-INC Instructions, Oregon Corporation Income Tax, 150-102-021-1

Form OR-20-INC Instructions Oregon Corporation Income Tax 2023 Contents Purpose of Form OR-20-INC.............................. 2 Important reminders............................................. 2 What’s new and Looking ahead................ 2, 3 Estimated tax payments...................................... 3 Filing information Filing checklist Due date of return, Extensions........................................... 7 Payments................................................................................ 7 Assembling you return........................................................ 8 Mailing addresses..................................................... 8 Form instructions Who must file with Oregon? Excise or income tax?........ 4 What form do I use?.............................................................. 5 Filing requirements: consolidated returns, unitary business, insurance affiliates, separate returns........... 5 E-file........................................................................................ 5 Federal audit changes........................................................... 6 Amended returns.................................................................. 6 Protective claims................................................................... 6 Heading and checkboxes..................................................... 8 Questions................................................................................ 9 Line instructions Additions.............................................................................. 10 Subtractions......................................................................... 11 Tax......................................................................................... 14 Credits................................................................................... 14 LIFO benefit recapture....................................................... 14 Net income tax..................................................................... 14 Payments, penalty, interest, and UND............................. 14 Schedule ES—Estimated tax payments, other prepayments, and refundable credits......................... 14 Total due or refund............................................................. 16 Special filing requirements Agricultural or horticultural cooperatives........................ 6 Broadcasters........................................................................... 6 Exempt organizations........................................................... 6 Homeowners associations................................................... 6 Insurers................................................................................... 6 IC-DISCs ................................................................................ 6 Limited liability companies (LLCs).................................... 6 Political organizations.......................................................... 7 Publicly traded partnerships............................................... 7 Real Estate Investment Trusts (REITs) and Regulated Investment Companies (RICs)........................................ 7 Real Estate Mortgage Investment Conduits (REMICs)..... 7 Do you have questions?..................................... 16 Appendices Appendix A, 2023 Schedule OR-ASC-CORP code list.... 17 Appendix B, 2023 Tax rates................................................ 19 Appendix C, Alternative apportionment........................ 20 Information contained herein is a guide. For complete details of law, refer to Oregon Revised Statutes (ORS) and Oregon Administrative Rules (OAR). Go electronic! Fast • Accurate • Secure File corporation tax returns through the Federal/State Electronic Filing Program. See “E-file.” Visit us online: ­­w ww.oregon.gov/dor • Registration and account status. • Online payments and communication. • Forms, instructions, and law. • Announcements and FAQ. • Updates to instructions. 150-102-021-1 (Rev. 10-17-23) 1 2023 Form OR-20-INC Instructions 1, 2023, and before January 1, 2029, and any tax year to which the NOL may be carried back. For example, a taxpayer with a loss in tax year 2023 may carry their loss to tax year 2020. Visit our website at ­www.oregon.gov/dor for additional information. Purpose of Form OR-20-INC Use Form OR-20-INC, Oregon Corporation Income Tax Return, to calculate and report the Oregon corporate income tax liability of a business entity taxable as a C corporation with Oregon sources of income but not doing business in Oregon. Credits Agricultural Employer Overtime Tax Credit Important reminders HB 4002 (2022) creates a refundable tax credit for overtime paid to agricultural workers. The measure requires agricultural employers to pay certain workers for overtime hours worked and creates a refundable personal income or corporate tax credit for employers for a percentage of wages paid as overtime pay to agricultural workers for tax years beginning on or after January 1, 2023, and before January 1, 2029. Taxpayers must apply for the tax credit through the department. Note that this credit can offset corporation minimum tax determined under 317.090. Visit our website at ­www.oregon.gov/dor for additional information. If your registered corporation or insurance company isn’t doing business in Oregon and has no Oregonsource income, then you don’t need to file a corporation tax return. Revenue Online. Revenue Online provides convenient, secure access to tools for managing your Oregon tax account. With Revenue Online, you may: • View your tax account. • Make payments. • View correspondence we sent you. • Check the status of your refund. Forest Conservation Tax Credit (FCTC) SB 1502 (2022) creates a non-refundable Forest Conservation Tax Credit (FCTC) for the stumpage value of timber left standing on the land of a small forestland owner. The amount of the tax credit is certified by the Department of Forestry (ODF) and applies to tax years beginning on or after January 1, 2023. For more information and instructions on setting up your Revenue Online account, visit ­www.oregon.gov/ dor. What’s new Additionally, HB 2161 (2023) amended the FCTC from SB 1502 (2022) to increase the computation of the credit under certain conditions. See the House Bill for additional information. Note: Not all information in this section pertains to all taxpayers or form types. If applicable, refer to House Bills (HB) or Senate Bills (SB) as shown. Visit ­ w ww.oregon.gov/dor for possible updates to these instructions. Opportunity Grant Fund (auction) tax credit sunset (ORS 315.643) General The Opportunity Grant Fund (auction) tax credit sunset on January 1, 2023. The tax credit may be claimed in tax years beginning on or after January 1, 2023, if the credit is purchased at auction on or after January 1, 2023, and before March 1, 2023. Tie to federal tax law In general, Oregon tax law is based on federal tax law. Oregon is tied to the federal definition of taxable income as of December 31, 2022; however, Oregon is still disconnected from: Extended credits The following credit is extended to tax years beginning before January 1, 2028: • Federal subsidies for prescription drug plans (IRC §139A; ORS 317.401). • Deferral of certain deductions for tax years beginning on or after January 1, 2009 and before January 1, 2011 may require subsequent Oregon modifications (IRC §168(k) and §179; ORS 317.301). • Cultural Trust contribution (ORS 315.675).........code 807 The following credits are extended to tax years beginning before January 1, 2030: • Employer scholarship (ORS 315.237)...................code 847 • Individual Development Account (IDA) donation (ORS 315.271)..........................................code 852 • Reservation enterprise zone (ORS 315.506)........code 810 • Short line railroad rehabilitation (ORS 315.593).........................................................code 872 • University venture fund (ORS 315.640)..............code 864 Net Operating Loss (NOL) carryback SB 1524 (2022) allows taxpayers who use NAIC codes 111 or 112 (referring to taxpayers engaged in crop produc¬tion, animal production or aquaculture) to claim a three-year NOL carryback. The three-year NOL carryback applies in tax years beginning on or after January 150-102-021-1 (Rev. 10-17-23) 2 2023 Form OR-20-INC Instructions The following credits are extended to tax years beginning before January 1, 2032: Sale of publicly supported housing credit HB 2071 (2023) creates a tax credit for the sale of publicly supported housing. The tax credit equals 2.5 percent of the lesser of the sales price or appraisal value if the owner held the publicly supported housing for at least five years and 5.0 percent of the lesser of the sales price or appraisal if the owner held the publicly supported housing for at least ten years. • Agricultural workforce housing (ORS 315.164)...........................................................code 835 • Oregon affordable housing lender’s credit (ORS 317.097)...........................................................code 854 Sunset credits no longer available, including carryforward The new tax credit applies to tax years beginning on or after January 1, 2024, and before January 1, 2030. It will be certified by Oregon Housing and Community Services. The following credits are no longer available, including carryforward, for tax years beginning before January 1, 2023. Any remaining credit amount not used is lost. Short-line railroad rehabilitation (ORS 315.593) • Alternative qualified research activities (ORS 317.154)............................................................code 837 • Qualified research activities (ORS 317.152).......code 858 • Repatriation credit (due to IRC §965)..................code 870 HB 3406 (2023) amended ORS 315.593 to eliminate the distinction between Tier 1 and Tier 2 railroads for purposes of the short-line railroad tax credit. All taxpayers may claim 50 percent of the costs incurred to rehabilitate the short-line railroad. A credit is not allowed for an amount equal to the greater of costs used to claim the IRC 45G credit or the credit limitation in IRC 45G(b)(1). Rehabilitation costs that are funded by a federal or state grant cannot be used to claim the credit. Looking ahead Credits Oregon Affordable Housing Lender’s Credit (ORS 317.097) The credit is certified by Oregon department of Transportation (ODOT). The changes described here apply to tax years beginning on or after January 1, 2024, and before January 1, 2026. Two separate bills amended this credit: • HB 2071 (2023) amended ORS 317.097 to allow financiers of limited equity cooperatives to claim the ORS 317.097 tax credit if the tax credit savings are passed on to the tenants of the limited equity cooperative. This change applies to tax years beginning on or after January 1, 2024. • SB 892 (2023) amended ORS 317.097 to apply to projects involving households earning 80 percent or less of the area median income. Prior to the amendment, ORS 317.097 applies to projects involving households earning less than 80 percent of the area median income. Estimated tax payments Requirements Oregon estimated tax payment requirements aren’t the same as federal estimated tax payment requirements. You must make estimated tax payments if you expect to owe tax of $500 or more. See ORS 314.505 to 314.525 and supporting administrative rules. If you don’t make estimated payments as required, you may be subject to interest on underpayment of estimated tax (UND). Refer to Form OR-37 if you have an underpayment of estimated tax. Qualified semiconductor company research credit HB 2009 (2023) allows a qualified semiconductor company to claim a tax credit based on research and development expenses. The qualifying research and development expenses are determined based on IRC 41. Oregon allows a credit equal to 15 percent of the qualifying research and development expenses as determined in IRC 41. The maximum amount of credit varies based on employee numbers. A portion of the tax credit is refundable if the taxpayer has fewer than 3,000 employees. The exact refund percentage depends on how many employees the taxpayer has. Payment due dates Estimated tax payments are due quarterly, as follows: • Calendar year filers: April 15, June 15, September 15, and December 15. • Fiscal year filers: The 15th day of the 4th, 6th, 9th, and 12th months of your fiscal year. • If the due date falls on a Saturday, Sunday, or legal holiday, use the next regular business day. The new tax credit applies to tax years beginning on or after January 1, 2024, and before January 1, 2030. The tax credit will be certified by Oregon Business Development Department (OBDD). 150-102-021-1 (Rev. 10-17-23) Payment options Important: For details about making payments with your return, see “Filing checklist” below. 3 2023 Form OR-20-INC Instructions Estimated payments may be made by electronic funds transfer (EFT), online, or by mail. Example: During the year, Corporation A’s expected net tax increased from $2,000 to $6,000. Corporation A made timely first and second quarter estimated payments of $500 before its expected net tax increased. EFT. You must make your Oregon estimated payments by EFT if you’re required to make your federal estimated payments by EFT. We may grant a waiver from EFT payments if you’d be disadvantaged by the requirement (ORS 314.518 and supporting administrative rules). Corporation A should make four payments of $1,500 each during the year. Because of its increased net tax, Corporation A will be subject to UND charges for the first and second quarters. To avoid UND charges for the third and fourth quarters, Corporation A must make timely payments of $3,500* for the third quarter and $1,500 for the fourth quarter. If you don’t meet the federal requirements for mandatory EFT payments, you may still make voluntary EFT payments. You can make EFT payments through Revenue Online or through your financial institution. To learn more about Revenue Online or to make an EFT payment, visit ­www. oregon.gov/dor. If you pay by EFT, don’t send Form OR‑20-V, Oregon Corporation Tax Payment Voucher. *$1,000 for the first-quarter underpayment, plus $1,000 for the second-quarter underpayment, plus $1,500 for the required third-quarter installment equals $3,500. Mail. If paying by mail, send each payment with a Form OR-20-V, payment voucher, to: Oregon Department of Revenue, PO Box 14950, Salem OR 97309-0950. Who must file with Oregon? Filing information Corporations that are doing business in Oregon, or with income from an Oregon source, are required to file an Oregon corporation tax return. If you have tangible or intangible property or other assets in Oregon, any income you receive from that property or assets is Oregon-source income. Public Law (Pub.L.) 86-272 provides exceptions to the Oregon filing requirement for certain corporations doing business in Oregon. Include on your check: • Federal employer identification number (FEIN). • Tax year beginning and ending dates. • Contact phone. Estimated tax payments’ worksheet Exemption for emergency service providers. An outof-state emergency service provider is exempt from tax when operating solely for the purposes of performing disaster or emergency-related work on critical infrastructure. Disaster or emergency-related work conducted by an out-of-state business may not be used as the sole basis for determining that a corporation is doing business in Oregon. (Keep for your records—don’t file with your payment.) 1. Oregon net income expected in upcoming tax year. 1. 2. Tax on Oregon net income (see Appendix B). 2. 3. Subtract tax credits allowable in upcoming tax year. 3. 4. Net tax (line 2 minus line 3). 4. Note: Oregon follows the federal entity classification regulations. If an entity is classified or taxed as a corporation for federal income tax purposes, it will be treated as a corporation for Oregon tax purposes. If the amount on line 4 is less than $500, stop. You don’t have to make estimated tax payments. Caution: If your final tax liability when you file your return is $500 or more, you may be subject to UND. 5. Amount of each payment. (Divide line 4 by the number of payments you need to make. This is usually 4.) Excise or income tax? Oregon has two types of corporate taxes: excise and income. Excise tax is the most common. Most corporations don’t qualify for Oregon’s income tax. 5. Excise tax is a tax for the privilege of doing business in Oregon. It’s measured by net income. Excise tax filers are subject to corporate minimum tax. Corporation excise tax laws are in Chapter 317 of the Oregon Revised Statutes. If your expected net tax changes during the year, refigure your estimated tax payments using the Estimated tax payments’ worksheet. Note: All interest on obligations of the 50 states and their subdivisions are subject to Oregon excise tax. Interest on obligations of the United States and its instrumentalities are also subject to tax if the interest is taxable under the Internal Revenue Code and Congress has not chosen to To avoid additional charges for UND, you must pay the amount of any prior underpayment plus the amount of the current required payment. 150-102-021-1 (Rev. 10-17-23) 4 2023 Form OR-20-INC Instructions prevent the states from taxing the interest in question. A taxpayer has the burden of showing that Oregon can’t tax the interest on a federal obligation. • At least one of the affiliated corporations doing business in Oregon or have Oregon-source income. Note: S corporations can’t be included in consolidated federal returns. IRC §1361(b) provides that a corporation that’s a Qualified Subchapter S Subsidiary (QSSS) isn’t treated as a separate corporation. All income, deductions, and credits of the QSSS will be treated as belonging to the parent S corporation. Income tax is for corporations not doing business in Oregon, but with income from an Oregon source. Income tax filers aren’t subject to corporate excise or minimum tax. Corporation income tax laws are in Chapter 318 of the Oregon Revised Statutes. Unitary business. A business that has, directly or indirectly between members or parts of the enterprise, either a sharing or an exchange of value shown by: What form do I use? Except as provided by Pub.L. 86-272, all corporations doing business in Oregon must file Form OR-20, and are subject to the minimum excise tax. Any corporation doing business in Oregon is also required to register with the Secretary of State Corporation Division. See ­www.­sos.oregon.gov. • Centralized management or a common executive force, • Centralized administrative services or functions resulting in economies of scale, or • Flow of goods, capital resources, or services showing functional integration. Unitary insurance affiliates. If a unitary insurance affiliate has a separate return filing requirement, they’re excluded from the Oregon return of the consolidated group. The insurance affiliate is treated as if it’s a nonunitary affiliate of the consolidated group by subtracting income or adding losses to federal taxable income. The other members of the insurer’s federal consolidated group receive a 100 percent dividend-received deduction for any dividend received from the insurer. See “Additions” and “Subtractions” below. “Doing business” means carrying on or being engaged in any profit-seeking activity in Oregon. A taxpayer having one or more of the following in this state is clearly doing business in Oregon: • A stock of goods. • An office. • A place of business (other than an office) where affairs of the corporation are regularly conducted. • Employees or representatives providing services to customers as the primary business activity (such as accounting or personal services), or services incidental to the sale of tangible or intangible personal property (such as installation, inspection, maintenance, warranty, or repair of a product). • An economic presence through which the taxpayer regularly takes advantage of Oregon’s economy to produce income. Separate federal returns. Any corporation that files a separate federal return must file a separate Oregon return if it’s doing business in Oregon or has income from an Oregon source. However, see special filing requirements for REITs. A corporation subject to Oregon taxation must also file a separate Oregon return if it was included in a consolidated federal return, but wasn’t unitary with any of the other affiliates. To determine your Oregon taxable income, take the taxable income from the consolidated federal return and use Oregon additions or subtractions to remove the nonunitary affiliates. Corporations not doing business in Oregon, but with income from an Oregon source generally must file Form  OR-20-INC. There is no minimum tax for Form OR-20-INC filers. Most corporations don’t fall within Oregon’s income tax provisions. E-file Corporations not doing business in Oregon, and with no Oregon source income, even if incorporated in or registered to do business in the state, aren’t required to file a corporation tax return. If you’re required to e-file with the IRS, you’re also required to e-file for Oregon (ORS 314.364). We accept calendar year, fiscal year, short year, and amended electronic corporation tax returns utilizing the IRS Modernized e-file platform (MeF). Beginning January 2024, we’ll accept e-filed returns for tax year 2023, and will continue accepting returns for 2022 and 2021. Filing requirements Consolidated federal returns (ORS 317.705–317.725). If a corporation is a member of an affiliated group of corporations that filed a consolidated federal return, it must file an Oregon return based on that federal return. An Oregon return, based on the federal consolidated return, is required when two or more affiliated corporations are: Your tax return software also allows you to make electronic payments when e-filing your original return. Note: Your paper return may be rejected if you’re required to electronically file your Oregon corporation tax return, unless a waiver request has been approved by us prior to the filing of the paper return. • Included in a consolidated federal return; • Unitary; and 150-102-021-1 (Rev. 10-17-23) 5 2023 Form OR-20-INC Instructions If you’d like to request a waiver, send an email with the FEIN, tax year, and reason you’re unable to e-file to bus.electronicfiling@​ dor.oregon.gov, prior to paper-filing your return. years. Oregon allows corporations to carry net operating losses forward only. On the estimated tax payments line on your amended Form OR-20-INC, enter the net income tax per the original return or as previously adjusted. Don’t include any penalty or interest portions of payments already made. For a list of software vendors or for more information, search “e-filing” at w ­ ww.oregon.gov/dor. If paying additional tax with your amended return, you must include interest with your payment. Interest is figured from the day after the due date of your original return up to the day we receive your full payment. See “Interest rates.” Federal or other state audit changes If the IRS or other taxing authority changes or corrects your federal or other state return for any tax year, you must notify us. File an amended Oregon return and include a copy of the federal or other state audit report. Mail this separately from your current year’s return. Pay all tax and interest due with your amended return or within 30 days after receiving a billing notice from us to avoid being charged a 5 percent late payment penalty. If you don’t amend or send a copy of the federal or other state report, we have two years from the date we’re notified of the change to issue a deficiency notice. To receive a refund, you must file a claim for refund of tax within two years of the date of the federal or other state report. Protective claims Don’t file an amended return as a protective claim. Use Oregon Form OR-PCR, Protective Claim for Refund, 150‑101-184, when your claim to a refund is contingent on a pending court decision or legislative action. Notify us within 90 days of the final determination by filing an amended return. Don’t file an amended return before the pending action is final. Amended returns Oregon doesn’t have an amended return form for corporations. Use the form for the tax year you’re amending and check the amended box. Always use your current address. If your address has changed, don’t use your old address or our system will revert your current address to the old address. Special filing requirements See Oregon Corporation Excise Tax Form OR-20 Instructions, for filing information for the following entity types: Fill in all amounts on your amended return, even if they’re the same as originally filed. If you’re amending to change additions, subtractions, or credits, include detail of all items and amounts, including carryovers. • Agricultural or horticultural cooperatives. • Broadcasters. • Exempt organizations. • Homeowners associations. • Insurers. • IC-DISCs. (These entities don’t file Form OR-20-INC.) If you change taxable income by filing an original or amended federal or other state return, you must file an amended Oregon return within 90 days of when the original or amended federal or other state return is filed (ORS 314.380). Include a copy of your original or amended federal or other state return with your amended Oregon return and explain the changes. Limited liability companies (LLCs) Oregon follows federal law in determining how an LLC is taxed. Federal law doesn’t recognize an LLC as a classification for federal tax purposes. An LLC business entity must file a corporation, partnership, or sole proprietorship tax return, depending on elections made by the LLC and the number of members. If you filed Form OR-20-S, and later determined you should file Form  OR-20-INC, amend your return using Form OR-20-INC and check the amended box. You may make payments online for your amended return at ­www.oregon.gov/dor. Don’t make payments for amended returns with EFT. This also applies to e-filed amended returns. For paper returns, you may pay online or include a check or money order with your return. For e-filed returns, you may pay online or send a check or money order separately. If you mail your payment separate from your return, write “Amended” on the payment and include a completed Form OR-20-V with the amended box checked. A multi-member LLC can be either a partnership or a corporation, including an S corporation. A single member LLC (SMLLC) can be either a corporation or a single member “disregarded entity.” Refer to federal law for more information and requirements. An LLC taxed as a C corporation must file Form OR-20 if doing business in Oregon, or Form OR-20-INC if not doing business in Oregon but receiving Oregon-source income. The LLC must file Form OR-20-S if the entity files federal Form 1120-S. Don’t amend your Oregon return if you amend the federal return to carry a net operating loss back to prior 150-102-021-1 (Rev. 10-17-23) 6 2023 Form OR-20-INC Instructions An LLC taxed as a partnership must file Form OR-65, Oregon Partnership Return, if doing business in Oregon, or if receiving Oregon-source income, or if it has any Oregon resident members. If the LLC has a corporate member, the member is taxed on its share of the LLC’s Oregon income. A REIT or RIC that isn’t required to be included in an Oregon consolidated return is subject to tax under ORS chapter 317 or 318 and calculates their Oregon apportionment factors and Oregon net income in the same manner as a corporation with a separate filing requirement under ORS 317.710. REITs or RICs doing business in Oregon are subject to Oregon minimum tax. Business trusts that qualify as REITs filing separate returns aren’t allowed an Oregon deduction for net losses of prior years. If an LLC is part of a corporation’s overall business operations and is treated as a partnership, include the corporation’s ownership share of LLC property, payroll, and sales in the corporation’s apportionment percentage calculation on Schedule OR-AP (ORS 314.650 and supporting administrative rules). Distributions from a REIT or RIC to its shareholders are treated the same as distributions from a corporation to its shareholders for purposes of ORS chapters 316, 317, and 318. Foreign LLCs are identified as unincorporated associations organized under the laws of a state other than Oregon, or a foreign country. Oregon’s definition of a foreign LLC includes an unincorporated association organized under the laws of a federally recognized American Indian tribe, no matter when organized. Real Estate Mortgage Investment Conduits (REMICs) A REMIC isn’t subject to Oregon tax; the income is taxable to the holders of the REMIC’s interests under ORS Chapter 316, 317, or 318, whichever is applicable. A REMIC must file Form OR-20-INC if it receives prohibited transaction income from Oregon sources. Political organizations Political organizations (for example, campaign committees and political parties) normally don’t pay state or federal taxes. However, income earned from investments is taxable. Examples include interest earned on deposits; dividends from contributed stock, rents, or royalties; and gains from the sale of contributed property. We follow the federal definitions of political organizations and taxable income. All REMICs required to file must include a complete copy of federal Form 1066. The REMIC must also include a federal Schedule Q for each residual interest holder for each quarter of the tax year. Report the amount of net income from prohibited transactions from federal Form 1066 Schedule J (ORS 314.260). Filing checklist A political organization that isn’t incorporated and hasn’t elected to be taxed as a corporation should file a personal income tax return [ORS 316.277(2)]. Rounding to whole dollars. Enter amounts on the return and accompanying schedules as whole dollars only. Example: $4,681.55 becomes $4,682; and $8,775.22 becomes $8,775. For more information, including how to file your return, go to ­www.oregon.gov/dor/business. Publicly traded partnerships • Due date of your return. Returns are due by the 15th day of the month following the due date of your federal corporation return. When the 15th falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. A “publicly traded partnership” is a partnership treated as a corporation for federal tax purposes under IRC §7704. The partners in a publicly traded partnership aren’t subject to tax on their distributive shares of partnership income. A publicly traded partnership taxed as a corporation must file a Form OR-20 if doing business in Oregon, or Form OR-20-INC if not doing business in Oregon, but is receiving Oregon-source income. • Extensions. See the instructions below for the extension checkbox. When you file, include the extension as the final page of your return. • Payments. ° Payments received after the original due date will be applied first to penalty, then to interest, and then to tax [ORS 305.265(13)]. ° Estimated payments and prepayments. Identify all estimated payments claimed by completing Schedule ES on page 5 of your return. List all payments that were submitted prior to filing your return. Include the corporation name and FEIN if a payment was made by an affiliate of the filing corporation. Missing or incomplete information on payments made by an affiliate could result in a billing. Real Estate Investment Trusts (REITs) and Regulated Investment Companies (RICs) A REIT or RIC that isn’t included in a federal consolidated return based on the provisions of IRC §1504(b)(4) must be included in the Oregon consolidated return. These REITs or RICs are subject to the provisions of ORS 317.715 and supporting administrative rules. For apportioning taxpayers, factors from the REIT or RIC are included in the apportionment calculation of the consolidated Oregon return. 150-102-021-1 (Rev. 10-17-23) 7 2023 Form OR-20-INC Instructions ° Online payments. You may pay online for any return at w ­ ww.oregon.gov/dor. Search “payments.” ° Making electronic payments with your e-filed return. We accept electronic payments when e-filing your original return. ° Making check or money order payments with your paper return. Make your check or money order payable to Oregon Department of Revenue. Write the following on your check or money order: — Filer FEIN. — Tax year beginning and ending dates. — Contact phone. Form instructions Heading and checkboxes • Extension checkbox. For an Oregon extension when you’re also filing for a federal extension: Send a copy of the federal extension with the Oregon return when you file. Check the extension checkbox on your Oregon return and include a copy of the extension after all other enclosures. For an “Oregon only” extension: Answer question 1 on federal extension Form 7004, write “For Oregon Only” at the top of the form and include it with your Oregon return when you file. Check the extension checkbox on the Oregon return. ° To speed up processing of your return: — Don’t use Form OR-20-V payment voucher. — Don’t staple payment to the return. — Don’t send cash or postdated checks. — Don’t use red or purple or any gel ink. The Oregon extension due date is the 15th day of the month following the federal exten­sion’s due date. Don’t send the extension until you file your Oregon return. • Assembling your return. Assemble your Oregon return forms in the following order: More time to file doesn’t mean more time to pay your tax. To avoid penalty and interest, pay tax due prepayments online, or by mail with Form OR-20-V, on or before the original due date of your return. Note: Filing Form OR-20-V isn’t an extension of time to file your tax return. 1. Form OR-20-INC, Oregon Corporation Income Tax Return; 2. Schedule OR-AP, Apportionment of Income for Corporations and Partnerships; 3. Schedule OR-AF, Schedule of Affiliates; 4. Schedule OR-PI, Schedule of Partnership Information; 5. Schedule OR-ASC-CORP, Oregon Adjustments; 6. Form OR-37, Underpayment of Oregon Corporation Estimated Tax; 7. Form OR-DRD, Dividends-Received Deduction. 8. Form OR-24, Like-Kind Exchanges/Involuntary Conversions; 9. Other Oregon statements; 10. Oregon credit forms including notice of credit transfers; 11. Copy of federal tax return and schedules; 12. Form 7004, Federal extension. If you’re making an extension payment by mail, send the payment to: Oregon Department of Revenue, PO Box 14950, Salem OR 97309-0950. Include on your check: — FEIN. — “Extension.” — Tax year beginning and ending dates. — Contact phone. • Form OR-37 checkbox. If you have an underpayment of estimated tax, you must include a completed Form OR-37. Check the Form  37 box in the header of your return. Mailing Addresses Use Form OR-37 to: ° Calculate the amount of underpayment of estimated tax; ° Compute the amount of interest you owe on the underpayment; or ° Show you meet an exception to the payment of interest. Tax-due returns, with or without payment, mail to: Oregon Department of Revenue PO Box 14790 Salem OR 97309-0470 (Do NOT include a payment voucher.) Refunds or no tax-due returns, mail to: Oregon Department of Revenue PO Box 14777 Salem OR 97309-0960 • REIT/RIC checkbox. If you participated in a REIT or RIC, you must check the appropriate box in the header area of the Oregon tax return. • Amended checkbox. Check the amended box if this is an amended return. Check or money order payments only, mail to: Oregon Department of Revenue PO Box 14950 Salem OR 97309-0950 (Include Form OR-20-V payment voucher.) 150-102-021-1 (Rev. 10-17-23) • Form OR-24 checkbox. Corporations may defer, for Oregon tax purposes, all gains realized in the exchange of like-kind property and involuntary conversions under IRC §1031 or §1033, even though the 8 2023 Form OR-20-INC Instructions replacement property is outside Oregon. Oregon will tax the deferred gain when it’s included in federal taxable income. with your federal tax return instructions. Only enter the code if this is your first return, the current code is dif­ ferent than you reported last year, or your code begins with “111” or “112”. Include a copy of your Oregon Form OR-24, Like-Kind Exchanges/Involuntary Conversions, 150-800-734, with your Oregon return and check the Form OR-24 box if all of the following apply: Question E(1). Check this box if you filed a consolidated federal return. Include a list of the corporations included in the consolidated federal return. ° The corporation reported deferred gain on a federal Form 8824; ° All or part of the property exchanged or given up was located in Oregon; and ° All or part of the acquired property was located outside of Oregon. Question E(2). Check this box if you filed a consolidated Oregon return. Complete Schedule OR-AF, Schedule of Affiliates, and list only the corporations included in the consolidated Oregon return that: • Are doing business in Oregon; or • Have income from Oregon sources. For a more detailed explanation, see ORS 314.650 and 314.665 and supporting administrative rules regarding apportionment of deferred gain. Question E(3). Check this box if it applies. Include a list of corporations included in the consolidated federal return that aren’t included in this Oregon return. List each corporation’s name and FEIN. Note: Include a copy of your federal return and schedules as filed with the IRS. • Federal Form 8886 checkbox and reportable transactions. If you’re required to report listed or reportable transactions to the IRS on federal Form 8886, you must check this box. We’ll assess penalties if you don’t comply with this requirement. Question F. If the filing corporation (shown above as legal name) is a subsidiary in an affiliated group, or a subsidiary in a parent-subsidiary controlled group, enter the name and FEIN of the parent corporation. For definition of a subsidiary in an affiliated group or a parent-subsidiary controlled group, see federal Form 1120, Schedule K. • Global intangible low-taxed income (GILTI) included on federal return. If you included GILTI on your federal return, check this box. • Alternative apportionment checkbox. See Appendix C for complete information. Check this box if you have included a request with your return. Question K. Utility or telecommunications companies. Taxpayers primarily engaged in utilities or telecommunications may elect to apportion income using a double-weighted sales factor formula (ORS 314.280 and supporting administrative rules). Check the box if making this election. Name. Generally, a consolidated Oregon return is filed in the name of the common parent corporation. If the parent corporation isn’t doing business in Oregon, file the return in the name of the member of the group having the greatest presence in Oregon. “Having the greatest presence” means that the member has the largest Oregon property value as determined under ORS 314.655 (see Schedule OR-AP and OAR 150-317.0540). Question L. Limited partner income only. Check this box if your corporation is filing a Form OR-20-INC and has no other connection to Oregon other than an ownership interest as a limited partner in a partnership that’s doing business in Oregon. • Legal name. Enter the corporation’s current legal name as set forth in the articles of incorporation or other legal document. • FEIN. Enter the FEIN of the corporation named as the filer on the consolidated Oregon return. • DBA/ABN. If the corporation is doing business under a different name, for example, DBA or ABN, enter that name. • Current address. Always enter the corporation’s current address. If the address for the year you’re filing was different, don’t use the old address or our system will revert your current address to the old address. Don’t check this box if you’re a general partner. A corporate general partner of a partnership that’s doing business in Oregon is subject to the greater of calculated excise tax or minimum tax imposed under Chapter 317 and must file Form OR-20. Question M. Total Oregon sales. • Apportioned returns. Enter the amount of Oregon sales from Schedule OR-AP, line 22(a). • Nonapportioned returns. Enter the amount of sales as defined by ORS 314.665. Questions Line instructions Questions A–C. Complete only if this is your first return or the answer changed during the tax year. Line 1. Taxable income from U.S. corporation income tax return. Enter the taxable income reported for federal Question D. Refer to the current list of North American Industry Classification System (NAICS) codes found 150-102-021-1 (Rev. 10-17-23) 9 2023 Form OR-20-INC Instructions income tax purposes before net operating loss or special deductions (federal Form 1120, line 28). decreased income (ORS 314.733). Visit our website for more information. • Deferred gain recognized from out-of-state disposition of property acquired in an IRC §1031 or §1033 exchange. See ORS 317.327 regarding the computation of the addition if gain or loss is recognized for federal tax purposes but not taken into account in the computation of Oregon taxable income. Additions Line 2. Total additions from Schedule OR-ASC-CORP, Section A. The amount by which any item of income is greater under Oregon law than under federal law, or the amount by which any allowable deduction is less under Oregon law than under federal law, is an addition on your Oregon return. • Depletion (percentage in excess of cost). Add the federal deduction that is in excess of the Oregon allowance for depletion (ORS 317.374). Use Schedule OR-ASC-CORP, Section A, to report the amount and description code of each difference. Use the description code from the list in Appendix A. The total of all additions is entered on Form OR-20-INC, line 2. • Depreciation differences. If your Oregon depreciation isn’t the same as your federal depreciation, the difference is a required modification to your Oregon return (ORS 317.301). Use Schedule OR-DEPR to determine the Oregon modification. Additions include: • Bad debt reserve addition of a financial institution to the extent that the federal amount exceeds the amount that’s allowable for Oregon. The bad debt method for financial institutions is tied to the federal method. For taxpayers required to use the specific write-off method, an addition must be made if the amortization of the federal reserve is less than the amortization of the Oregon reserve (ORS 317.310). • Gain or loss on the disposition of depreciable property. Add the difference in gain or loss on sale of business assets when your Oregon basis is less than your federal basis (ORS 317.356 and OAR 150-317-0420). • Global intangible low-taxed income (GILTI) under IRC Section 250. You must add back any GILTI amount not included in Line 1 of your Oregon return. Generally, the federal deduction is taken on line 29b of federal Form 1120 and doesn’t impact the Oregon return. However, if any amount was omitted or deducted in determining federal income carried to line 1 of your Oregon return, it must be added back before a subtraction can be claimed. Report the Oregon addition (if any) on Schedule OR-ASC-CORP using code number 186 ORS 317.267). • Capital construction fund. Amounts deferred under Section 607 of the Merchant Marine Act of 1936 and IRC §7518 must be added back to federal taxable income (ORS 317.319). • Charitable donations not allowed for Oregon. Donations to a charitable organization that has received a disqualifying order from the Attorney General aren’t deductible as charitable donations for Oregon tax purposes. Such organizations are required to provide a disclosure to a donor to acknowledge this. The Attorney General will publish online and otherwise make publicly available information identifying the charitable organizations receiving a disqualification order. If you claimed a federal deduction, an addition must be made on your Oregon return for donations to such charitable organizations (ORS 317.491). • Income from sources outside the United States. Add income from sources outside the United States, as defined in IRC §862, not included in federal taxable income under IRC §§861 to 864 (ORS 317.625). • Income of related FSC or DISC. Net income or loss must be included in the net income of the related U.S. affiliate if the related FSC or DISC doesn’t qualify for ORS 317.283(2) treatment (ORS 317.283 and 317.286). • Claim of right income repayment adjustment when credit’s claimed. The deduction under IRC §1341 on the federal return must be added back to federal taxable income on your Oregon return if the Oregon credit’s claimed (ORS 317.388). • Individual Development Account credit. Donations deducted on the federal return must be added back to federal taxable income if the Oregon credit’s claimed [ORS 315.271(2)]. • Intercompany transactions involving intangible assets. The user of the intangible asset must add the royalty or other expense for such use to federal taxable income as an addition on the Oregon tax return if: • CPAR addition. If you’re an owner of a partnership that was subject to a partnership-level audit by the IRS (or you’re an owner of a tiered partner of such a partnership), you may have to increase or decrease your Oregon income as a result of the audit. Report an increase in income using addition code 187 or report a decrease in income using subtraction code 384, whichever is applicable. Use these codes even if another code is assigned for the specific type of increased or 150-102-021-1 (Rev. 10-17-23) ° An intangible asset is owned by one corporation or business (the owner), and used by another (the user) for a royalty or other fee; ° Both the owner and the user are “owned by the same interests,” as defined in Treas. Reg. §1.469-4T(j); 10 2023 Form OR-20-INC Instructions ° The owner and the user aren’t included in the same Oregon tax return; and ° The separation of ownership of the intangible asset from the user of the intangible asset results in either: evasion of tax or a computation of Oregon taxable income that isn’t clearly reflective of Oregon business income. • Opportunity Grant Fund (auction). Any federal deduction for contributions for which an Opportunity Grant Fund tax credit certification is made must be added to federal taxable income (ORS 315.643). • Oregon excise tax and other state or foreign taxes on or measured by net income. Oregon excise tax may not be deducted on the Oregon return. Taxes of other states or foreign governments on or measured by net income or profits may not be deducted on the Oregon return. If you subtracted these taxes on your federal return, you must add them back on your Oregon return. However, the Oregon minimum tax and some local taxes, such as the Multnomah County Business Income tax, are deductible, and aren’t required to be added back (ORS 317.314). If the owner also files an Oregon return, the owner of the intangible asset must report the corresponding royalty or other income as a negative addition on Schedule OR-ASC-CORP, Section A (ORS 314.295 and supporting administrative rules). • Interest income excluded from the federal return. Oregon gross income includes interest on all state and municipal bonds or other interest excluded for federal tax purposes. Reduce the addition by any interest incurred to carry the obligations and by any expenses incurred in producing this interest income (ORS 317.309). • Oregon production investment fund. Add back the amount of contribution for which a tax credit certification is made that’s allowed as a deduction for federal tax purposes (ORS 315.514). • Inventory costs. The costs allocable to inventory are the same as those included in IRC §263A. Differences in depreciation and depletion allocable to inventory result in a modification [ORS 314.287(3)]. • REITs and RICs. A REIT or RIC meeting the federal affiliate definition must be included in the consolidated Oregon return. This is an Oregon modification (addition or subtraction) to federal taxable income. For apportioning taxpayers, factors from the REIT or RIC are included in the apportionment calculation of the consolidated Oregon return (ORS 317.010 and supporting administrative rules). • IRC §139A federal subsidies for prescription drug plans. For federal purposes, taxpayers can exclude from taxable income certain federal subsidies for prescription drug plans per IRC §139A. However, for Oregon purposes, this federally excluded income is an addition on the Oregon return (ORS 317.401). • Safe harbor lease agreements. Oregon doesn’t tie to the federal safe harbor lease provisions. See ORS 317.349 and supporting administrative rules for details about the adjustments required for Oregon. • IRC §631(a) treatment of timber isn’t recognized by Oregon. Both beginning and ending inventories must be adjusted for IRC §631(a) gain. For Oregon purposes, there’s no taxable event until actual sale (ORS 317.362). • University venture development fund contributions. Add to federal taxable income the amount of contributions used to calculate the University Venture Fund Contribution credit that were deducted from federal taxable income (ORS 315.640). • Losses of nonunitary corporations. Net losses of nonunitary corporations included in a consolidated federal return must be eliminated from the Oregon return. Net losses include the separate loss as determined under Treasury Regulations adopted for IRC  §1502, and deductions, additions, or items of income, expense, gain, or loss for which the consolidated treatment is prescribed. Include a schedule showing your computation of the total net loss eliminated [ORS 317.715(2)]. • Unused business credits. Unused business credits taken as a federal deduction under IRC §196 must be added back to federal taxable income (ORS 317.304). Line 3. Income after additions (line 1 plus line 2). • Losses of unitary insurance affiliates. If a unitary insurance affiliate has a separate return filing requirement, they’re excluded from the consolidated Oregon return. The insurance affiliate is treated as if it’s a nonunitary affiliate of its consolidated group and the loss (if any) is an addition (ORS 317.715). Subtractions Line 4. Total subtractions from Schedule OR-ASC-CORP, Section B. The amount by which an item of income is less under Oregon law than federal law, or the amount by which an allowable deduc­tion is greater under Oregon law than federal law, is a subtraction on your Oregon return. • Net federal capital loss deduction. If the Oregon and federal capital loss deductions are different, add the federal capital loss back to federal taxable income. The Oregon capital loss will be deducted after subtractions (and apportionment for corporations required to apportion income) to arrive at Oregon taxable income (ORS 317.013 and supporting administrative rules). 150-102-021-1 (Rev. 10-17-23) Use Schedule OR-ASC-CORP, Section B, to report the amount and description code of each difference. Use the description code from the list in Appendix A. The total of all subtractions is entered on Form OR-20-INC, line 4. 11 2023 Form OR-20-INC Instructions Subtractions include: • Film production labor rebate. Subtract the amount received as a labor rebate that’s included in federal taxable income (ORS 317.394). • Bad debt reserve addition of a financial institution to the extent that the Oregon amount exceeds the amount that’s allowed on the federal return. A subtraction is also made if the amortization of the federal reserve is greater than the amortization of the Oregon reserve (ORS 317.310). • Foreign derived intangible income (FDII) under IRC Section 250. Oregon is connected with the FDII deduction on your federal return. Generally, the federal deduction amount is reported on federal Form 8993, Part IV, line 8. Report your Oregon subtraction on Schedule OR-ASC-CORP using code number 382. Don’t use Form OR-DRD for this subtraction [SB 851 (2019)]. • Charitable contribution. Subtract the amount by which a corporation must reduce its charitable contribution deduction [IRC §170(d)(2)(B)] (ORS 317.307 and OAR 150-317-0350). • Gain or loss on the sale of depreciable property. The difference in gain or loss on the sale of business assets when your Oregon basis is less than your federal basis (ORS 317.356). • CPAR subtraction. If you’re an owner of a partnership that was subject to a partnership-level audit by the IRS (or you’re an owner of a tiered partner of such a partnership), you may have to increase or decrease your Oregon income as a result of the audit. Report an increase in income using addition code 187 or report a decrease in income using subtraction code 384, whichever is applicable. Use these codes even if another code is assigned for the specific type of increased or decreased income (ORS 314.733). Visit our website for more information. • Global intangible low-taxed income (GILTI) under IRC Section 250. Oregon allows an 80 percent subtraction of GILTI amounts under IRC Section 951A that are included in your Oregon income. Report the Oregon subtraction on Schedule OR-ASC-CORP using code number 381. Don’t use Form OR-DRD for this subtraction (ORS 317.267). • IC-DISC commission payments. For tax years beginning on or after January 1, 2013, a deduction is allowed for commission payments made to an IC-DISC if the DISC was formed on or before January 1, 2014 (ORS 317.283). • Deferred gain recognized from out-of-state disposition of property acquired in an IRC §1031 or §1033 exchange. See ORS 317.327 regarding the computation of the subtraction if gain or loss is recognized for federal tax purposes but not taken into account in the computation of Oregon taxable income. • Income of nonunitary corporations. Net income of nonunitary corporations included in a consolidated federal return must be eliminated from the Oregon return. Net income includes the separate taxable income, as determined under Treasury Regulations adopted for IRC §1502, and any deductions, additions, or items of income, expense, gain, or loss for which consolidated treatment is prescribed. Include a schedule showing computation of the total net income eliminated [ORS 317.715(2)]. • Depletion. Subtract the Oregon allowance for depletion that is in excess of the federal deduction for depletion (ORS 317.374). • Depreciation differences. If your Oregon depreciation isn’t the same as your federal depreciation, the difference is a required modification to your Oregon return (ORS 317.301). Use Schedule OR-DEPR to determine the Oregon modification. • Income of unitary insurance affiliates. If a unitary insurance affiliate has a separate return filing requirement, they’re excluded from the consolidated Oregon return. The insurance affiliate is treated as if it’s a nonunitary affiliate of its consolidated group and any income is a subtraction (ORS 317.715). • Dividend deduction. A 70 percent deduction is allowed for qualifying dividends regardless of geographic source. An 80 percent deduction is allowed for dividends received from corporations whose stock is owned 20 percent or more. Use Oregon Form OR-DRD for computing the Oregon dividend deduction and include it with your return (ORS 317.267). • Income on a composite return. A corporate owner of a pass-through entity (PTE) may subtract its share of distributive income that has already been reported on an Oregon composite return. See Publication OR-OC and OAR 150-314-0515 for more information. • Federal credits. Subtract the amount of expense not deducted on the federal return attributable to claiming a federal credit (ORS 317.303). • Interest on obligations of the U.S. and its instrumentalities included in Form OR-20-INC, line 1. This applies to income tax filers only. Reduce the subtraction by any expenses incurred to produce this interest income. • Federal investment tax credit on certain assets. If you take a federal tax credit on certain assets, and your federal basis is less than your Oregon basis, you must recalculate the gain or loss on disposal of those assets and subtract the difference (ORS 317.356). 150-102-021-1 (Rev. 10-17-23) • Inventory costs. The costs allocable to inventory are the same as those included in IRC §263A. Differences 12 2023 Form OR-20-INC Instructions in depreciation and depletion allocable to inventory result in a modification [ORS 314.287(3)]. • Taxes paid to a foreign country. You may subtract from federal taxable income the taxes paid to a foreign country upon the payment of interest or royalties arising from sources within such foreign country, if such taxes are not deductible in arriving at federal taxable income and if the interest or royalties are included in arriving at Oregon taxable income [ORS 317.314.(3)]. • IRC Section 245A foreign-source portion dividends. Oregon allows a 100 percent subtraction of the foreignsource portion of dividends from certain foreign corporations under IRC Section 245A. The subtraction is allowed only if the amount is included in federal taxable income reported on line 1 of your Oregon return. Generally, the federal deduction amount is reported on federal Form 1120, Schedule C, line 13. Report your Oregon subtraction on Schedule OR-ASC-CORP using code number 383. Don’t use Form OR-DRD for this subtraction (ORS 317.267). • Work opportunity credit wages not deducted on the federal return. Subtract the amount of wages that weren’t deducted on the federal return because the work opportunity credit was claimed (ORS 317.303). Line 5. Net income before apportionment (line 3 minus line 4). This amount is carried to Schedule OR-AP, part 2, line 1. • Losses from outside the United States. Subtract losses from sources outside the United States, as defined in IRC §862, not included in federal taxable income under IRC §§861 to 864 (ORS 317.625). Net loss and net capital loss deductions are entered on Schedule OR-AP for Form OR-20-INC filers. Net loss deduction. • Manufactured dwelling park tenant payments made under ORS 90.505 to 90.840 to compensate a tenant for costs incurred due to the closure of the park may be subtracted (ORS 317.092). • Enter the deduction on Schedule OR-AP-2, line 10a for net losses assigned to Oregon during the preceding taxable years (and not previously deducted). Enter as a positive number. • Include a schedule showing your computations. • A net loss is the amount determined under IRC Chapter 1, Subtitle A, with the modifications specifically prescribed under Oregon law. • The Oregon deduction is the sum of unused net losses assigned to Oregon for preceding taxable years. • A net operating loss carryforward is required to be reduced by the entire Oregon net income of intervening tax years [ORS 317.476(4)(b)]. • Net losses can be carried forward up to 15 years. • Oregon doesn’t allow net losses to be carried back. • For losses, and built-in losses occurring before a change in ownership [separate return loss year (SRLY) limitations], Oregon is tied to the federal limitations (IRC §382 and §384; ORS 317.476 and 317.478). • The total net loss deduction on a consolidated Oregon return is the sum of the net losses available to each of the corporations subject to the limitations in OAR 150-317-0460. • REITs, if qualified under IRC §856, aren’t allowed a net loss deduction [ORS 317.476(5)]. • Marijuana business expenses. ORS 317.363 allows Oregon taxpayers filing a corporate excise or income tax return to deduct business expenses otherwise barred by IRC §280E if the taxpayer is engaged in marijuana-related activities authorized by ORS 475C.005 to 475C.525, or ORS 475C.700 to 475C.919. • Psilocybin business expenses. ORS 317.363 allows Oregon corporation excise and income tax filers to subtract certain business expenses otherwise barred by IRC §280E if the corporation is engaged in psilocybin-related activities authorized by ORS 475A.210 to 475A.722, the Oregon Psilocybin Services Act. Use subtraction code 385 on Schedule OR-ASC-CORP. • REITs and RICs. A REIT or RIC meeting the federal affiliate definition must be included in the consolidated Oregon return. This is an Oregon modification (addition or subtraction) to federal taxable income. For apportioning taxpayers, factors from the REIT or RIC are included in the apportionment calculation of the consolidated Oregon return (ORS 317.010 and supporting administrative rules). • Sale of manufactured dwelling park. The net gain attributable to the sale of a manufactured dwelling park to a tenant’s association, facility purchase association, or tenant’s association supported nonprofit organization is exempt from tax (Note following ORS 317.401). Net capital loss deduction. • Enter the deduction on Schedule OR-AP-2, line 10b. Enter as a positive number. • Oregon allows a net capital loss deduction for losses apportioned to Oregon and carried from another year. • The deductible loss is limited to net capital gain included in Oregon income. Capital losses must be carried back three tax years and then may be carried forward for up to five tax years. • Include a schedule showing your computations including the tax year the net capital loss originated (ORS 317.476 and supporting administrative rules). • State of Oregon interest income included on line 2 (Form OR-20-INC only). Interest income from obligations of the state of Oregon isn’t taxable if the obligation was issued after May 24, 1961. Reduce the subtraction by any expenses incurred to produce this interest income. 150-102-021-1 (Rev. 10-17-23) 13 2023 Form OR-20-INC Instructions Line 6. Apportionment percentage. Enter the apportionment percentage from Schedule OR-AP, part 1, line 23. tax that was deferred from the last year of the C corporation (ORS 314.771). Line 7. Oregon taxable income from Schedule OR-AP, part 2, line 12. Net income tax Tax Line 16. Net income tax (line 14 minus line 15). Income filers don’t pay a minimum tax. Line 8. Calculated income tax. See Appendix B for computation. Payments, penalty, interest, and UND Line 9. Tax adjustments. Line 17. Estimated tax payments, other prepayments, and refundable credits (from Schedule ES on page 5). Installment sales interest. If you owe interest on deferred tax liabilities with respect to installment obligations under ORS 314.302, enter the amount as a positive number. Include a schedule showing how you figured the interest. • Fill in the total estimated tax payments made before filing your Oregon return. • List name and FEIN of the payer only if different from the corporation filing this return. Note: Consolidated return filers. If estimated payments were made under a different name, fill in the paying corporation’s name and FEIN on Schedule ES for correct application of estimated payments. Line 10. Tax before credits (line 8 plus line 9). Credits For a list and description of Oregon corporation cred­its, visit ­www.oregon.gov/dor. Note: Missing or incomplete information on payment made by an affiliate could result in a billing. Important: • All credits are claimed on Schedule OR-ASC-CORP. • Use the description code from the list in Appendix A. • List credits and codes on the OR-ASC-CORP in the order you want them used. • Generally, taxpayers must claim the full amount of a credit allowed per year (ORS 314.078). • Include any refunds applied from other years on line 5. • Enter payments made with your extension or other prepayments on line 6. • Fill in on line 7 the refundable credits from Schedule OR-ASC-CORP, Section E. • Carry the total from line 8 to Form OR-20-INC, line 17. Line 11. Total standard credits from Schedule OR-ASCCORP, Section C. Enter as a positive number. Line 18. Withholding payments made on your behalf from pass-through entity or real estate income. If taxes were paid on the corporation’s behalf, enter the amount on this line. Line 12. Tax after standard credits (line 10 minus line 11). There’s a requirement to withhold tax from the proceeds of sales of Oregon real property by nonresidents. This applies to individual nonresidents as well as C corporations that aren’t doing business in Oregon. The amount to be withheld is the lesser of: Line 13. Total carryforward credits from Schedule ORASC-CORP, Section D. Enter as a positive number. Line 14. Income tax after standard an
Extracted from PDF file 2023-oregon-form-20-inc-instructions.pdf, last modified October 2023

More about the Oregon Form 20-INC Instructions Corporate Income Tax TY 2023

Oregon Corporation Income Tax Form OR-20-INC Instructions

We last updated the Form 20-INC Instructions in January 2024, so this is the latest version of Form 20-INC Instructions, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form 20-INC Instructions directly from TaxFormFinder. You can print other Oregon tax forms here.

Other Oregon Corporate Income Tax Forms:

TaxFormFinder has an additional 50 Oregon income tax forms that you may need, plus all federal income tax forms.

Form Code Form Name
Form 20 Instructions Form 20 Instructions
Schedule K-1 Distributive Share of Income Schedule
Form 20-INS Instructions Form 20-INS Instructions
Form 65 Oregon Partnership Return of Income
Form 20-V Oregon Corporation Tax Payment Voucher

Download all OR tax forms View all 51 Oregon Income Tax Forms


Form Sources:

Oregon usually releases forms for the current tax year between January and April. We last updated Oregon Form 20-INC Instructions from the Department of Revenue in January 2024.

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About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Oregon Form 20-INC Instructions

We have a total of ten past-year versions of Form 20-INC Instructions in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2023 Form 20-INC Instructions

2023 Form OR-20-INC Instructions, Oregon Corporation Income Tax, 150-102-021-1

2022 Form 20-INC Instructions

2022 Form OR-20-INC Instructions, Oregon Corporation Income Tax, 150-102-021-1

2021 Form 20-INC Instructions

2021 Form OR-20-INC Instructions, Oregon Corporation Income Tax, 150-102-021-1

2020 Form 20-INC Instructions

2020 Form OR-20-INC, Oregon Corporation Income Tax Instructions 150-102-021-1

2019 Form 20-INC Instructions

2019 Form OR-20-INC Instructions, Oregon Corporation Income Tax, 150-102-021-1

2018 Form 20-INC Instructions

2018 Form OR-20-INC Instructions, Oregon Corporation Income Tax, 150-102-017

2017 Form 20-INC Instructions

2017, Form OR-20-INC Instructions, Oregon Corporation Income Tax Return Form 20-I Instructions, 150-102-017

2016 Form 20-INC Instructions

2015 Form 20-I Instructions, Oregon Corporation Income Tax Return Form 20-I Instructions, 150-102-021-1

2015 Form 20-INC Instructions

2015 Form 20-I Instructions, Oregon Corporation Income Tax Return Form 20-I Instructions, 150-102-021-1

Tax Return for Corporations to file and pay Oregon income tax (excise tax is most common) Instructions only. 2014 Form 20-INC Instructions

Form 20-I Instructions, Oregon Corporation Income Tax Return Form 20-I Instructions, 150-102-021-1


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