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Schedule OR-REZT Instructions 2023
Reservation Enterprise Zone Tax 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.
A tax credit is available to offset certain tribal taxes paid • The amount of any tribal tax paid or incurred by the eli-
or incurred by an eligible business in operating a qualified gible business if the eligible business didn’t previously
new business facility. The qualified new business facility is conduct business operations within the reservation
required to conduct revenue producing activities within a enterprise zone prior to that tax year.
reservation enterprise zone or reservation partnership zone.
The credit is based on the applicable tribal tax paid or
An “eligible business” is one that owns or occupies the incurred during the tax year.
new business facility and engages in virtually any type of
business activity, other than leasing the facility to another The credit may not exceed the tax liability of the taxpayer
person. and may not be carried forward to a succeeding year. It also
cannot reduce minimum tax.
“Tribal tax” includes, but isn’t limited to, an income or
excise tax, an ad valorem property tax, a gross receipts tax, Corporations. The credit is claimed on Schedule
or a sales and use tax. OR-ASC-CORP .
Fiduciaries. The credit is claimed on Schedule OR-ASC-FID.
What qualifies a business to claim this Individuals and partnerships. The credit is claimed on
credit? Schedule OR-ASC.
A qualified, new business facility is an asset acquired, or for Nonresident and part-year resident personal income tax-
which construction or installation is completed, on or after payers who meet the eligibility requirements may receive
January 1, 2002, located within a reservation/partnership a credit. The credit must be multiplied by the Oregon per-
enterprise zone, and used in operating a revenue produc- centage on Form OR-40-N or OR-40-P (ORS 316.117).
ing enterprise. Tribal designation of a reservation enterprise If a change in the taxable year of a taxpayer occurs as
zone is approved by the Oregon Business Development described in ORS 314.085, or if the Department of Revenue
Department (Business Oregon). A reservation partnership
terminates the taxpayer’s taxable year under ORS 314.440,
zone is based on an intergovernmental agreement between
the credit allowed under this section shall be prorated or
the tribal government and one or more city, port or county
computed in a manner consistent with ORS 314.085. Keep
governments.
your computations with this schedule.
The following don’t qualify as a new business facility:
• A facility used in substantially the same enterprise as it Is the schedule included with the tax
was previously used immediately before being acquired,
if located on the reservation. return when filed?
• Property that merely replaces existing property and
Corporations and fiduciaries. Include a copy of this sched-
doesn’t expand the capacity of the enterprise to produce
ule with your return and also keep a copy for your records.
revenue.
• Activities as a lessor of the property. Individuals and partnerships. Don’t include the schedule
with your tax return. Keep the completed schedule with
your tax records. Upon audit or examination, make the
Who may claim the credit?
information available to the department to verify any credit
Eligible businesses located in Oregon reservation enterprise claimed.
zones may claim the credit. The credit is available to indi-
viduals, partnerships, fiduciaries, and corporations.
When may the credit be claimed?
The credit may be claimed for a tax year beginning on or
How is the credit computed?
after January 1, 2002, and before January 1, 2028.
The amount of the credit is:
For assistance in determining whether you qualify to use
• The amount of tribal property tax imposed on a new this credit, contact the tribal government or local zone
business facility of an eligible business; or sponsor, as well as your tax advisor.
150-102-046-1 (Rev. 10-05-23) 1 2023 Schedule OR-REZT Instructions
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