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                                       Schedule OR-LTEZ Instructions                            2023 
                              Long-term Enterprise Zone Facilities Credit

This publication is a guide, not a complete statement, of Oregon Revised Statutes (ORS) and Oregon Administrative 
Rules (OAR). For more information, refer to the laws and rules at www.oregon.gov/dor.

                                                                  the taxpayer is entitled. Tax credits allowable under this 
Important                                                         section or any other provision of law creating a tax credit 
                                                                  against corporation excise or income tax, may not be used 
If you're claiming the Long-Term Enterprise Zone Facili-          to  offset  the  first $1  million, or  a  lesser  credit  threshold 
ties Credit for this tax year, you must submit the Schedule 
                                                                  amount that's allowed under ORS 317.124(7) of corporate 
OR-LTEZ with your return. If you're eligible for the Long-
                                                                  excise tax paid by the corporation to this state in any taxable 
Term Enterprise Zone Facilities Credit for this tax year, but 
                                                                  year. The first $1 million paid or any lesser credit threshold 
choose not to use it, you must also submit the Schedule OR-
                                                                  amount that's allowed and paid includes taxes generally 
LTEZ with your return.
                                                                  attributable to operations of the taxpayer throughout the 
                                                                  state of Oregon.
What qualifies a business to claim this                           A taxpayer may forgo using a tax credit otherwise allowed 
credit?                                                           under ORS 317.124 in order to use other tax credits in a tax 
                                                                  year (ORS 317.125).
A tax credit is available for subchapter C corporations (and 
the shareholders of subchapter S corporations) that own a         Note: Round all percentages to 4 digits to the right of the 
facility that's exempt from property tax due to its location in   decimal. For example, .1234567 becomes 12.3457%.
a rural enterprise zone.
The facility must be located in a county that satisfies speci-    How is the credit claimed?
fied economic criteria at the time of approval by the written 
agreement with the local zone sponsor.                            The credit is claimed on Schedule OR-ASC-CORP. S corpo-
                                                                  ration shareholders may claim it on their personal returns 
Receipt of the credit also depends on:                            on Schedule OR-ASC.
  (i)  Written approval by the governor;                          This tax credit may not be transferred to another taxpayer.
  (ii)  Local certification for exemption of the facility from 
property  taxes  no  later  than June  30,  2018  (ORS 
285C.406); and                                                    What happens if the credit exceeds the 
 (iii)  Satisfaction of applicable requirements under ORS 
                                                                  tax?
285C.412 for the exemption.
                                                                  A taxpayer  claiming a  credit against  tax must claim  the 
                                                                  full amount of any credit that's allowed for the tax year, to  
What is the applicable law?
                                                                  the extent of the tax liability. The credit cannot reduce mini-
ORS 317.124.                                                      mum tax.
                                                                  The credit is limited to the tax liability for the tax year. Tax 
How is the amount of credit determined?                           credit not used by the taxpayer in a particular tax year may 
                                                                  be carried forward and used by the taxpayer for a period of 
The amount of the credit is equal to 62.5 percent of the          up to five years.
taxpayer’s payroll and employee benefit costs, including 
but not limited to workers’  compensation insurance  and 
payroll taxes, relating to the qualifying facility. The credit    What evidence must be kept to verify 
is available for a period of at least five, but not more than     the claimed credit?
15 consecutive tax years. This period may commence only 
after the facility is placed in service, but no later than the    Include this form with your return and keep a copy with 
tax year beginning in the third calendar year after the year      your tax records. Upon audit or examination, a copy of this 
in which the facility is placed in service. The tax credit may    form may be requested by the department to verify the 
be used to offset corporate excise or income tax levied or        credit claimed.
imposed by the State of Oregon relating to the facility that's 
                                                                  Other evidence may be requested including, but not lim-
owned by the corporation.
                                                                  ited to, annual gross payroll expenses at the facility, and 
This credit isn't in lieu of any deduction for depreciation,      local enterprise zone certification and qualification for the 
amortization, payroll costs, or any other expense to which        exemption on taxable property.
150-102-043-1 (Rev. 10-05-23)                                   1                               2023 Schedule OR-LTEZ Instructions



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For assistance in determining whether you qualify for this 
credit, contact the local zone sponsor that certified your   Do you have questions or need help?
business firm or the Oregon Business Development Depart-
                                                               www.oregon.gov/dor
ment (Business Oregon), as well as your tax advisor.
                                                             503-378-4988 or 800-356-4222
                                                             questions.dor@ dor.oregon.gov
                                                             Contact us for ADA accommodations or assistance in other 
                                                             languages.
                                                             Oregon Business Development Department:
                                                             Internet .................................... www.oregon4biz.com
                                                             Telephone ................................................ 503-986-0123
                                                             Email ........................................... biz.info@oregon.gov

150-102-043-1 (Rev. 10-05-23)                              2                              2023 Schedule OR-LTEZ Instructions






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