PDF document

- 1 -

2023
Form OR-20-INC Instructions

Oregon Corporation Income Tax

Contents

Purpose of Form OR-20-INC ............................. 2 Filing checklist
Important reminders ............................................ 2 Due date of return, Extensions .......................................... 7
Payments ............................................................................... 7
What’s new and Looking ahead ............... 2, 3 Assembling you return .......................................................8
Estimated tax payments ..................................... 3
Mailing addresses ....................................................8
Filing information
Who must file with Oregon? Excise or income tax? ....... 4 Form instructions
What form do I use? .............................................................5 Heading and checkboxes ....................................................8
Filing requirements: consolidated returns, unitary Questions ...............................................................................9
business, insurance affiliates, separate returns .......... 5
E-file .......................................................................................5 Line instructions
Federal audit changes ..........................................................6 Additions ............................................................................. 10
Amended returns ................................................................. 6 Subtractions ........................................................................ 11
Protective claims ..................................................................6 Tax ........................................................................................ 14
Credits .................................................................................. 14
Special filing requirements LIFO benefit recapture ...................................................... 14
Agricultural or horticultural cooperatives .......................6 Net income tax .................................................................... 14
Broadcasters .......................................................................... 6 Payments, penalty, interest, and UND ............................ 14
Exempt organizations ..........................................................6 Schedule ES—Estimated tax payments, other
Homeowners associations .................................................. 6 prepayments, and refundable credits......................... 14
Insurers .................................................................................. 6 Total due or refund ............................................................ 16
IC-DISCs ...............................................................................6
Limited liability companies (LLCs) ................................... 6 Do you have questions? .................................... 16
Political organizations ......................................................... 7
Publicly traded partnerships .............................................. 7 Appendices
Real Estate Investment Trusts (REITs) and Regulated Appendix A, 2023 Schedule OR-ASC-CORP code list ... 17
Investment Companies (RICs) ....................................... 7 Appendix B, 2023 Tax rates ............................................... 19
Real Estate Mortgage Investment Conduits (REMICs) .... 7 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: www.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

- 2 -

                                                               1, 2023, and before January 1, 2029, and any tax year to 
Purpose of Form OR-20-INC                                      which the NOL may be carried back. For example, a tax-
                                                               payer with a loss in tax year 2023 may carry their loss to 
Use Form OR-20-INC, Oregon Corporation Income 
                                                               tax year 2020. Visit our website at  www.oregon.gov/dor 
Tax Return, to calculate and report the Oregon corpo-
                                                               for additional information.
rate 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 over-
                                                               time paid to agricultural workers. The measure requires 
If your registered corporation or insurance company            agricultural employers to pay certain workers for over-
isn’t doing business in Oregon and has no Oregon-              time hours worked and creates a refundable personal 
source income, then you don’t need to file a corporation       income or corporate tax credit for employers for a per-
tax return.                                                    centage of wages paid as overtime pay to agricultural 
Revenue Online. Revenue Online provides convenient,            workers for tax years beginning on or after January 1, 
secure access to tools for  managing your Oregon tax           2023, and before January 1, 2029. Taxpayers must apply 
account. With Revenue Online, you may:                         for the tax credit through the department. Note that this 
                                                               credit can offset corporation minimum tax determined 
• View your tax account.                                       under 317.090. Visit our website at  www.oregon.gov/dor 
• Make payments.                                               for additional information.
• View correspondence we sent you.
• Check the status of your refund.                             Forest Conservation Tax Credit (FCTC) 
For more information and instructions on setting up            SB 1502 (2022) creates a non-refundable Forest Conserva-
your Revenue Online account, visit   www.oregon.gov/           tion Tax Credit (FCTC) for the stumpage value of timber 
dor.                                                           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 
What’s new                                                     after January 1, 2023.
Note: Not all information in this section pertains to all      Additionally, HB 2161 (2023) amended the FCTC from 
taxpayers or form types. If applicable, refer to House Bills   SB 1502 (2022) to increase the computation of the credit 
(HB) or Senate Bills (SB) as shown.                            under certain conditions. See the House Bill for addi-
                                                               tional information. 
Visit   www.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 
Tie to federal tax law                                         years beginning on or after January 1, 2023, if the credit 
In general, Oregon tax law is based on federal tax law.        is purchased at auction on or after January 1, 2023, and 
Oregon is tied to the federal definition of taxable income     before March 1, 2023.
as of December 31, 2022; however, Oregon is still discon-
nected from:                                                   Extended credits 
• Federal subsidies for prescription drug plans (IRC           The following credit is extended to tax years beginning 
§139A; ORS 317.401).                                           before January 1, 2028:
• Deferral of certain deductions for tax years beginning       •  Cultural Trust contribution (ORS 315.675) ........code 807
on or after January 1, 2009 and before January 1, 2011 
may require subsequent Oregon modifications (IRC               The following credits are extended to tax years begin-
§168(k) and §179; ORS 317.301).                                ning before January 1, 2030:
                                                               •  Employer scholarship (ORS 315.237) ..................code 847
Net Operating Loss (NOL) carryback                             • Individual Development Account (IDA) 
SB 1524 (2022) allows taxpayers who use NAIC codes             donation (ORS 315.271) .........................................code 852
111 or 112 (referring to taxpayers engaged in crop             •  Reservation enterprise zone (ORS 315.506) .......code 810
produc¬tion, animal production or aquaculture) to claim        • Short line railroad rehabilitation 
a three-year NOL carryback. The three-year NOL carry-          (ORS 315.593) ........................................................code 872
back applies in tax years beginning on or after January        •  University venture fund (ORS 315.640) .............code 864
150-102-021-1 (Rev. 10-17-23)                                2                             2023 Form OR-20-INC Instructions

- 3 -

The following credits are extended to tax years begin-                              Sale of publicly supported housing credit  
ning before January 1, 2032:
                                                                                    HB 2071 (2023) creates a tax credit for the sale of publicly 
•  Agricultural workforce housing                                                   supported housing. The tax credit equals 2.5 percent 
(ORS 315.164) ..........................................................code 835    of the lesser of the sales price or appraisal value if the 
• Oregon affordable housing lender’s credit                                         owner held the publicly supported housing for at least 
(ORS 317.097) ..........................................................code 854    five years and 5.0 percent of the lesser of the sales price 
                                                                                    or appraisal if the owner held the publicly supported 
Sunset credits no longer available, including                                       housing for at least ten years.
carryforward 
                                                                                    The new tax credit applies to tax years beginning on or 
The following credits are no longer available, including                            after January 1, 2024, and before January 1, 2030. It will be 
carryforward, for tax years beginning before January 1,                             certified by Oregon Housing and Community Services. 
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   HB 3406 (2023) amended ORS 315.593 to eliminate the 
• Qualified research activities (ORS 317.152) ......code 858                        distinction between Tier 1 and Tier 2 railroads for pur-
•  Repatriation credit (due to IRC §965) .................code 870                  poses of the short-line railroad tax credit. All taxpayers 
                                                                                    may claim 50 percent of the costs incurred to rehabili-
                                                                                    tate the short-line railroad. A credit is not allowed for an 
Looking ahead                                                                       amount equal to the greater of costs used to claim the 
                                                                                    IRC 45G credit or the credit limitation in IRC 45G(b)(1). 
Credits                                                                             Rehabilitation costs that are funded by a federal or state 
                                                                                    grant cannot be used to claim the credit.
Oregon Affordable Housing Lender’s Credit 
(ORS 317.097)                                                                       The credit is certified by Oregon department of Trans-
                                                                                    portation (ODOT). The changes described here apply 
Two separate bills amended this credit:                                             to tax years beginning on or after January 1, 2024, and 
• HB 2071 (2023) amended ORS 317.097 to allow finan-                                before January 1, 2026.
ciers of limited equity cooperatives to claim the ORS 
317.097 tax credit if the tax credit savings are passed on                          Estimated tax payments
to the tenants of the limited equity cooperative. This 
change applies to tax years beginning on or after Janu-                             Requirements
ary 1, 2024.
• SB 892 (2023) amended ORS 317.097 to apply to proj-                               Oregon estimated tax payment requirements aren’t the 
ects involving households earning 80 percent or less of                             same as federal estimated tax payment requirements. 
the area median income. Prior to the amendment, ORS                                 You must make estimated tax payments if you expect to 
317.097 applies to projects involving households earn-                              owe tax of $500 or more. See ORS 314.505 to 314.525 and 
ing less than 80 percent of the area median income.                                 supporting administrative rules.
Qualified semiconductor company research credit                                     If you don’t make estimated payments as required, you 
                                                                                    may be subject to interest on underpayment of estimated 
HB 2009 (2023) allows a qualified semiconductor com-                                tax (UND). Refer to Form OR-37 if you have an under-
pany to claim a tax credit based on research and                                    payment of estimated tax.
development expenses. The qualifying research and 
development expenses are determined based on IRC 41.                                Payment due dates
Oregon allows a credit equal to 15 percent of the qualify-
ing research and development expenses as determined                                 Estimated tax payments are due quarterly, as follows:
in IRC 41. The maximum amount of credit varies based                                • Calendar year filers: April 15, June 15, September 15, 
on  employee numbers.  A  portion  of  the  tax  credit  is                         and December 15.
refundable if the taxpayer has fewer than 3,000 employ-                             • Fiscal year filers: The 15th day of the 4th, 6th, 9th, and 
ees. The exact refund percentage depends on how many                                12th months of your fiscal year.
employees the taxpayer has.                                                         • If the due date falls on a Saturday, Sunday, or legal 
The new tax credit applies to tax years beginning on or                             holiday, use the next regular business day.
after January 1, 2024, and before January 1, 2030. The tax 
credit will be certified by Oregon Business Development                             Payment options
Department (OBDD). 
                                                                                    Important: For details about making payments      with 
                                                                                    your return, see “Filing checklist” below.
150-102-021-1 (Rev. 10-17-23)                                                     3                                 2023 Form OR-20-INC Instructions

- 4 -

Estimated payments may be made by electronic funds Example: During the year, Corporation A’s expected net
transfer (EFT), online, or by mail. tax increased from $2,000 to $6,000. Corporation A made
timely first and second quarter estimated payments of
EFT. You must make your Oregon estimated payments $500 before its expected net tax increased.
by EFT if you’re required to make your federal estimated
payments by EFT. We may grant a waiver from EFT pay- Corporation A should make four payments of $1,500 each
ments if you’d be disadvantaged by the requirement during the year. Because of its increased net tax, Corpo-
(ORS 314.518 and supporting administrative rules). ration A will be subject to UND charges for the first and
second quarters. To avoid UND charges for the third and
If you don’t meet the federal requirements for manda- fourth quarters, Corporation A must make timely pay-
tory EFT payments, you may still make voluntary EFT ments of $3,500* for the third quarter and $1,500 for the
payments. fourth quarter.
You can make EFT payments through Revenue Online or *$1,000 for the first-quarter underpayment, plus $1,000
through your financial institution. To learn more about for the second-quarter underpayment, plus $1,500 for the
Revenue Online or to make an EFT payment, visit www. required third-quarter installment equals $3,500.
oregon.gov/dor. If you pay by EFT, don’t send Form
OR-20-V, Oregon Corporation Tax Payment Voucher. Filing information
Mail. If paying by mail, send each payment with a Form
Who must file with Oregon?
OR-20-V, payment voucher, to: Oregon Department of
Revenue, PO Box 14950, Salem OR 97309-0950. Corporations that are doing business in Oregon, or with
income from an Oregon source, are required to file an
Include on your check: Oregon corporation tax return. If you have tangible
• Federal employer identification number (FEIN). or intangible property or other assets in Oregon, any
• Tax year beginning and ending dates. income you receive from that property or assets is Ore-
• Contact phone. gon-source income. Public Law (Pub.L.) 86-272 provides
exceptions to the Oregon filing requirement for certain
Estimated tax payments’ worksheet corporations doing business in Oregon.
(Keep for your records—don’t file with your payment.) Exemption for emergency service providers. An out-
of-state emergency service provider is exempt from tax
1. Oregon net income expected in 1. when operating solely for the purposes of performing
upcoming tax year. disaster or emergency-related work on critical infrastruc-
2. Tax on Oregon net income (see 2. ture. Disaster or emergency-related work conducted by
Appendix B). an out-of-state business may not be used as the sole basis
for determining that a corporation is doing business in
3. Subtract tax credits allowable in 3. Oregon.
upcoming tax year.
Note: Oregon follows the federal entity classification
4. Net tax (line 2 minus line 3). 4.
regulations. If an entity is classified or taxed as a corpo-
If the amount on line 4 is less ration for federal income tax purposes, it will be treated
than $500, stop. You don’t have as a corporation for Oregon tax purposes.
to make estimated tax payments.
Caution: If your final tax Excise or income tax?
liability when you file your
return is $500 or more, you may Oregon has two types of corporate taxes: excise and
be subject to UND. income. Excise tax is the most common. Most corpora-
tions don’t qualify for Oregon’s income tax.
5. Amount of each payment. 5.
(Divide line 4 by the number of Excise tax is a tax for the privilege of doing business
payments you need to make. in Oregon. It’s measured by net income. Excise tax fil-
This is usually 4.) ers are subject to corporate minimum tax. Corporation
excise tax laws are in Chapter 317 of the Oregon Revised
If your expected net tax changes during the year, refig- Statutes.
ure 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
To avoid additional charges for UND, you must pay the obligations of the United States and its instrumentalities
amount of any prior underpayment plus the amount of are also subject to tax if the interest is taxable under the
the current required payment. Internal Revenue Code and Congress has not chosen to
150-102-021-1 (Rev. 10-17-23) 4 2023 Form OR-20-INC Instructions

- 5 -

prevent the states from taxing the interest in question. A     • At least one of the affiliated corporations doing busi-
taxpayer has the burden of showing that Oregon can’t           ness in Oregon or have Oregon-source income.
tax the interest on a federal obligation.
                                                               Note: S corporations can’t be included in consolidated 
Income tax is for corporations not doing business in           federal returns. IRC §1361(b) provides that a corporation 
Oregon, but with income from an Oregon source. Income          that’s a Qualified Subchapter S Subsidiary (QSSS) isn’t 
tax filers aren’t subject to corporate excise or minimum       treated as a separate corporation. All income, deduc-
tax. Corporation income tax laws are in Chapter 318 of         tions, and credits of the QSSS will be treated as belong-
the Oregon Revised Statutes.                                   ing to the parent S corporation.
                                                               Unitary business. A business that has, directly or indi-
What form do I use?                                            rectly between members or parts of the enterprise, either 
                                                               a sharing or an exchange of value shown by:
Except  as  provided  by  Pub.L.  86-272,  all  corporations 
doing business in Oregon must file Form OR-20, and             • Centralized management or a common executive force,
are subject to the minimum excise tax. Any corporation         • Centralized administrative services or functions result-
doing business in Oregon is also required to register          ing in economies of scale, or
with the Secretary of State Corporation Division. See          • Flow of goods, capital resources, or services showing 
  www. sos.oregon.gov.                                         functional integration.
“Doing business” means carrying on or being engaged            Unitary insurance affiliates.   If a unitary insurance 
in any profit-seeking activity in Oregon. A taxpayer           affiliate has a separate return filing requirement, they’re 
having one or more of the following in this state is clearly   excluded from the Oregon return of the consolidated 
doing business in Oregon:                                      group. The insurance affiliate is treated as if it’s a non-
                                                               unitary affiliate of the consolidated group by subtract-
• A stock of goods.                                            ing income or adding losses to federal taxable income. 
• An office.                                                   The other members of the insurer’s federal consolidated 
• A place of business (other than an office) where affairs     group receive a 100 percent dividend-received deduction 
of the corporation are regularly conducted.                    for any dividend received from the insurer. See “Addi-
• Employees or representatives providing services to           tions” and “Subtractions” below. 
customers as the primary business activity (such as 
accounting or personal services), or services incidental       Separate federal returns. Any corporation that files 
to the sale of tangible or intangible personal property        a separate federal return must file a separate Oregon 
                                                               return  if  it’s  doing  business  in  Oregon  or  has  income 
(such  as installation,  inspection, maintenance,  war-
                                                               from an Oregon source. However, see special filing 
ranty, or repair of a product).
                                                               requirements for REITs.
• An economic presence through which the taxpayer 
regularly takes advantage of Oregon’s economy to pro-          A corporation subject to Oregon taxation must also file 
duce income.                                                   a separate Oregon return if it was included in a con-
                                                               solidated federal return, but wasn’t unitary with any of 
Corporations not  doing business in  Oregon,  but with 
                                                               the other affiliates. To determine your Oregon taxable 
income from an  Oregon  source generally must file 
                                                               income, take the taxable income from the consolidated 
Form  OR-20-INC. There is no minimum tax for Form              federal return and use Oregon additions or subtractions 
OR-20-INC filers. Most corporations don’t fall within          to remove the nonunitary affiliates. 
Oregon’s income tax provisions.
Corporations not doing business in Oregon, and with            E-file
no  Oregon  source  income,   even  if  incorporated  in  or 
                                                               If you’re required to e-file with the IRS, you’re also 
registered to do business in the state, aren’t required to 
                                                               required to e-file for Oregon (ORS 314.364). We accept 
file a corporation tax return.
                                                               calendar year, fiscal year, short year, and amended elec-
                                                               tronic corporation tax returns utilizing the IRS Modern-
Filing requirements                                            ized e-file platform (MeF). Beginning January 2024, we’ll 
Consolidated federal returns (ORS 317.705–317.725). If a       accept e-filed returns for tax year 2023, and will continue 
corporation is a member of an affiliated group of corpo-       accepting returns for 2022 and 2021. 
rations that filed a consolidated federal return, it must      Your tax return software also allows you to make elec-
file an Oregon return based on that federal return. An         tronic payments when e-filing your original return.
Oregon return, based on the federal consolidated return, 
                                                               Note: Your paper return may be rejected if you’re 
is required when two or more affiliated corporations are:
                                                               required to electronically file your Oregon corporation 
• Included in a consolidated federal return;                   tax return, unless a waiver request has been approved by 
• Unitary; and                                                 us prior to the filing of the paper return.
150-102-021-1 (Rev. 10-17-23)                                5                                  2023 Form OR-20-INC Instructions

- 6 -

If you’d like to request a waiver, send an email with         years. Oregon allows corporations to carry net operat-
the FEIN, tax year, and reason you’re unable to e-file to     ing losses forward only.
bus.electronicfiling@ dor.oregon.gov, prior to  paper-fil-
                                                              On the estimated tax payments line on your amended 
ing your return. 
                                                              Form OR-20-INC, enter the net income tax per the origi-
For a list of software vendors or for more information,       nal return or as previously adjusted. Don’t include any 
search “e-filing” at  www.oregon.gov/dor.                     penalty or interest portions of payments already made.
                                                              If paying additional tax with your amended return, you 
Federal or other state audit changes                          must include interest with your payment. Interest is fig-
If the IRS or other taxing authority changes or corrects      ured from the day after the due date of your original 
your federal or other state return for any tax year, you      return up to the day we receive your full payment. See 
must notify us. File an amended Oregon return and             “Interest rates.”
include a copy of the federal or other state audit report.    Pay all tax and interest due with your amended return 
Mail this separately from your current year’s return.         or within 30 days after receiving a billing notice from us 
If you don’t amend or send a copy of the federal or other     to avoid being charged a 5 percent late payment penalty.
state report, we have two years from the date we’re noti-
fied of the change to issue a deficiency notice. To receive   Protective claims
a refund, you must file a claim for refund of tax within      Don’t file an  amended return  as a protective claim. 
two years of the date of the federal or other state report.   Use Oregon Form OR-PCR,     Protective Claim for Refund, 
                                                              150-101-184, when your claim to a refund is contingent 
Amended returns                                               on a pending court decision or legislative action. Notify 
                                                              us within 90 days of the final determination by filing an 
Oregon doesn’t have an amended return form for corpo-
                                                              amended return. Don’t file an amended return before 
rations. Use the form for the tax year you’re amending 
                                                              the pending action is final.
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        Special filing requirements
to the old address.
                                                              See Oregon Corporation Excise Tax Form OR-20 Instructions, 
Fill in all amounts on your amended return, even if 
                                                              for filing information for the following entity types:
they’re the same as originally filed. If you’re amend-
ing to change additions, subtractions, or credits, include    • Agricultural or horticultural cooperatives.
detail of all items and amounts, including carryovers.        • Broadcasters.
                                                              • Exempt organizations.
If you change taxable income by filing an original or 
                                                              • Homeowners associations. 
amended federal or other state return, you must file an 
                                                              • Insurers.
amended Oregon return within    90 days of when the 
                                                              • IC-DISCs.
original or amended federal or other state return is filed 
                                                              (These entities don’t file Form OR-20-INC.)
(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)
If  you  filed  Form  OR-20-S,  and  later  determined  you   Oregon follows federal law in determining how an LLC 
                                                              is taxed. Federal law doesn’t recognize an LLC as a clas-
should file Form OR-20-INC, amend your return using 
                                                              sification  for  federal  tax  purposes.  An  LLC  business 
Form OR-20-INC and check the amended box. 
                                                              entity must file a corporation, partnership, or sole pro-
You may make payments online for your amended                 prietorship tax return, depending on elections made by 
return at  www.oregon.gov/dor.                                the LLC and the number of members. 
Don’t  make payments  for amended returns with EFT.           A multi-member LLC can be either a partnership or a 
This also applies to e-filed amended returns. For paper       corporation, including an S corporation. A single mem-
returns, you may pay online or include a check or money       ber LLC (SMLLC) can be either a corporation or a single 
order with your return. For e-filed returns, you may pay      member “disregarded entity.” Refer to federal law for 
online or send a check or money order separately. If you      more information and requirements.
mail your payment separate from your return, write 
                                                              An LLC taxed as a C corporation must file Form OR-20 
“Amended”  on  the  payment  and  include  a  completed 
                                                              if doing business in Oregon, or Form OR-20-INC if not 
Form OR-20-V with the amended box checked.
                                                              doing business in Oregon but receiving Oregon-source 
Don’t amend your Oregon return if you amend the fed-          income. The  LLC must  file Form OR-20-S  if the  entity 
eral return to carry a net operating loss back to prior       files federal Form 1120-S.
150-102-021-1 (Rev. 10-17-23)                               6                               2023 Form OR-20-INC Instructions

- 7 -

An LLC taxed as a partnership must file Form OR-65, A REIT or RIC that isn’t required to be included in an
Oregon Partnership Return, if doing business in Oregon, Oregon consolidated return is subject to tax under ORS
or if receiving Oregon-source income, or if it has any chapter 317 or 318 and calculates their Oregon apportion-
Oregon resident members. If the LLC has a corporate ment factors and Oregon net income in the same manner
member, the member is taxed on its share of the LLC’s as a corporation with a separate filing requirement under
Oregon income. ORS 317.710. REITs or RICs doing business in Oregon are
subject to Oregon minimum tax. Business trusts that
If an LLC is part of a corporation’s overall business oper-
qualify as REITs filing separate returns aren’t allowed
ations and is treated as a partnership, include the corpo-
an Oregon deduction for net losses of prior years.
ration’s ownership share of LLC property, payroll, and
sales in the corporation’s apportionment percentage cal- Distributions from a REIT or RIC to its shareholders are
culation on Schedule OR-AP (ORS 314.650 and support- treated the same as distributions from a corporation to
ing administrative rules). its shareholders for purposes of ORS chapters 316, 317,
and 318.
Foreign LLCs are identified as unincorporated associa-
tions organized under the laws of a state other than Ore-
gon, or a foreign country. Oregon’s definition of a foreign Real Estate Mortgage Investment Conduits
LLC includes an unincorporated association organized (REMICs)
under the laws of a federally recognized American A REMIC isn’t subject to Oregon tax; the income is
Indian tribe, no matter when organized. taxable to the holders of the REMIC’s interests under
ORS Chapter 316, 317, or 318, whichever is applicable. A
Political organizations REMIC must file Form OR-20-INC if it receives prohib-
Political organizations (for example, campaign commit- ited transaction income from Oregon sources.
tees and political parties) normally don’t pay state or fed- All REMICs required to file must include a complete
eral taxes. However, income earned from investments is copy of federal Form 1066. The REMIC must also include
taxable. Examples include interest earned on deposits; a federal Schedule Q for each residual interest holder for
dividends from contributed stock, rents, or royalties; and each quarter of the tax year. Report the amount of net
gains from the sale of contributed property. We follow income from prohibited transactions from federal Form
the federal definitions of political organizations and tax- 1066 Schedule J (ORS 314.260).
able income.

A political organization that isn’t incorporated and hasn’t Filing checklist
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
For more information, including how to file your return, return and accompanying schedules as whole dollars
go to www.oregon.gov/dor/business. only. Example: $4,681.55 becomes $4,682; and $8,775.22
becomes $8,775.
Publicly traded partnerships • Due date of your return. Returns are due by the 15th
A “publicly traded partnership” is a partnership treated day of the month following the due date of your fed-
as a corporation for federal tax purposes under IRC §7704. eral corporation return. When the 15th falls on a Sat-
urday, Sunday, or legal holiday, the due date is the next
The partners in a publicly traded partnership aren’t business day.
subject to tax on their distributive shares of partnership
income. A publicly traded partnership taxed as a corpo- • Extensions. See the instructions below for the exten-
ration must file a Form OR-20 if doing business in Ore- sion checkbox. When you file, include the extension as
gon, or Form OR-20-INC if not doing business in Oregon, the final page of your return.
but is receiving Oregon-source income. • Payments.
Real Estate Investment Trusts (REITs) and ° Payments received after the original due date will be
applied first to penalty, then to interest, and then to
Regulated Investment Companies (RICs)
tax [ORS 305.265(13)].
A REIT or RIC that isn’t included in a federal consoli- ° Estimated payments and prepayments. Identify all
dated return based on the provisions of IRC §1504(b)(4) estimated payments claimed by completing Sched-
must be included in the Oregon consolidated return. ule ES on page 5 of your return. List all payments that
These REITs or RICs are subject to the provisions of were submitted prior to filing your return. Include
ORS 317.715 and supporting administrative rules. For the corporation name and FEIN if a payment was
apportioning taxpayers, factors from the REIT or RIC are made by an affiliate of the filing corporation. Miss-
included in the apportionment calculation of the consoli- ing or incomplete information on payments made by
dated Oregon return. an affiliate could result in a billing.
150-102-021-1 (Rev. 10-17-23) 7 2023 Form OR-20-INC Instructions

- 8 -

° Online payments. You may pay online for any
return at www.oregon.gov/dor. Search “payments.” Form instructions
° Making electronic payments with your e-filed
Heading and checkboxes
return. We accept electronic payments when e-filing
your original return. • Extension checkbox. For an Oregon extension when
° Making check or money order payments with your you’re also filing for a federal extension: Send a copy
paper return. Make your check or money order pay- of the federal extension with the Oregon return when
able to Oregon Department of Revenue. Write the you file. Check the extension checkbox on your Ore-
following on your check or money order: gon return and include a copy of the extension after all
— Filer FEIN. other enclosures.
— Tax year beginning and ending dates. For an “Oregon only” extension: Answer question 1 on
— Contact phone. federal extension Form 7004, write “For Oregon Only”
° To speed up processing of your return: at the top of the form and include it with your Oregon
— Don’t use Form OR-20-V payment voucher. return when you file. Check the extension checkbox on
the Oregon return.
— Don’t staple payment to the return.
— Don’t send cash or postdated checks. The Oregon extension due date is the 15th day of the
— Don’t use red or purple or any gel ink. month following the federal exten sion’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 prepay-
1. Form OR-20-INC, Oregon Corporation Income Tax ments online, or by mail with Form OR-20-V, on or
Return; before the original due date of your return. Note: Fil-
2. Schedule OR-AP, Apportionment of Income for Corpo- ing Form OR-20-V isn’t an extension of time to file your
rations and Partnerships; tax return.
3. Schedule OR-AF, Schedule of Affiliates;
If you’re making an extension payment by mail, send
4. Schedule OR-PI, Schedule of Partnership Information;
the payment to: Oregon Department of Revenue, PO
5. Schedule OR-ASC-CORP, Oregon Adjustments;
Box 14950, Salem OR 97309-0950.
6. Form OR-37, Underpayment of Oregon Corporation
Estimated Tax; Include on your check:
7. Form OR-DRD, Dividends-Received Deduction. — FEIN.
8. Form OR-24, Like-Kind Exchanges/Involuntary — “Extension.”
Conversions; — Tax year beginning and ending dates.
9. Other Oregon statements; — Contact phone.
10. Oregon credit forms including notice of credit transfers; • Form OR-37 checkbox. If you have an underpayment
11. Copy of federal tax return and schedules; of estimated tax, you must include a completed Form
12. Form 7004, Federal extension. 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-due returns, with or without payment, mail to: tax;
Oregon Department of Revenue ° Compute the amount of interest you owe on the under-
PO Box 14790 payment; or
Salem OR 97309-0470 ° Show you meet an exception to the payment of
(Do NOT include a payment voucher.) interest.
Refunds or no tax-due returns, mail to: • REIT/RIC checkbox. If you participated in a REIT or
Oregon Department of Revenue RIC, you must check the appropriate box in the header
PO Box 14777 area of the Oregon tax return.
Salem OR 97309-0960 • Amended checkbox. Check the amended box if this is
Check or money order payments only, mail to: an amended return.
Oregon Department of Revenue • Form OR-24 checkbox. Corporations may defer,
PO Box 14950 for Oregon tax purposes, all gains realized in the
Salem OR 97309-0950 exchange of like-kind property and involuntary con-
(Include Form OR-20-V payment voucher.) versions under IRC §1031 or §1033, even though the
150-102-021-1 (Rev. 10-17-23) 8 2023 Form OR-20-INC Instructions

- 9 -

replacement property is outside Oregon. Oregon will                with your federal tax return instructions. Only enter the 
tax the deferred gain when it’s included in federal tax-           code if this is your first return, the current code is dif-
able income.                                                       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               Question E(1). Check this box if you filed a consolidated 
your Oregon return and check the Form OR-24 box if                 federal return. Include a list of the corporations included 
all of the following apply:                                        in the consolidated federal return.
  ° The corporation reported deferred gain on a federal            Question E(2). Check this box if you filed a consolidated 
Form 8824;                                                         Oregon return. Complete Schedule OR-AF,  Schedule of 
  ° All or part of the property exchanged or given up              Affiliates, and list only the corporations included in the 
was located in Oregon; and                                         consolidated Oregon return that:
  ° All or part of the acquired property was located out-
                                                                   • Are doing business in Oregon; or
side of Oregon.
                                                                   • Have income from Oregon sources.
  For a more detailed explanation, see ORS 314.650 and 
                                                                   Question E(3). Check this box if it applies. Include a 
314.665 and supporting administrative rules regarding 
                                                                   list of corporations included in the consolidated federal 
apportionment of deferred gain.
                                                                   return that aren’t included in this Oregon return. List 
• Federal Form 8886 checkbox and reportable transac-               each corporation’s name and FEIN. Note: Include a copy 
tions. If you’re required to report listed or reportable           of your federal return and schedules as filed with the 
transactions to the IRS on federal Form 8886, you must             IRS.
check this box. We’ll assess penalties if you don’t com-
                                                                   Question F. If the filing corporation (shown above as 
ply with this requirement.
                                                                   legal name) is a subsidiary in an affiliated group, or a 
• Global intangible low-taxed income (GILTI) included              subsidiary in a parent-subsidiary controlled group, enter 
on federal return.            If you included GILTI on your fed-   the name and FEIN of the parent corporation. For def-
eral return, check this box.                                       inition of a subsidiary in an affiliated group or a par-
                                                                   ent-subsidiary controlled group, see federal Form 1120,          
• Alternative apportionment checkbox. See Appendix 
                                                                   Schedule K.
C for complete information. Check this box if you have 
included a request with your return.                               Question K. Utility or telecommunications compa-
                                                                   nies. Taxpayers primarily engaged in utilities or tele-
Name. Generally, a consolidated Oregon return is filed 
                                                                   communications may elect to apportion income using a 
in the name of the common parent corporation. If the 
                                                                   double-weighted sales factor formula (ORS 314.280 and 
parent corporation isn’t doing business in Oregon, file 
                                                                   supporting administrative rules). Check the box if mak-
the return in the name of the member of the group hav-
                                                                   ing this election.
ing the greatest presence in Oregon. “Having the great-
est presence” means that the member has the largest                Question L. Limited partner income only. Check this 
Oregon property value as determined under ORS 314.655              box if your corporation is filing a Form OR-20-INC and 
(see Schedule OR-AP and OAR 150-317.0540).                         has no other connection to Oregon other than an owner-
                                                                   ship interest as a limited partner in a partnership that’s 
• Legal  name. Enter  the corporation’s  current  legal 
                                                                   doing business in Oregon.
name as set forth in the articles of incorporation or 
other legal document.                                              Don’t check this box if you’re a general partner. A corpo-
• FEIN. Enter the FEIN of the corporation named as the             rate general partner of a partnership that’s doing busi-
filer on the consolidated Oregon return.                           ness in Oregon is subject to the greater of calculated 
• DBA/ABN. If the corporation is doing business under              excise tax or minimum tax imposed under Chapter 317 
a different name, for example, DBA or ABN, enter that              and must file Form OR-20.
name.
                                                                   Question M. Total Oregon sales. 
• Current address. Always enter the corporation’s cur-
rent address. If the address for the year you’re filing            • Apportioned returns. Enter the amount of Oregon 
was different, don’t use the old address or our system             sales from Schedule OR-AP, line 22(a).
will revert your current address to the old address.
                                                                   • Nonapportioned returns. Enter the amount of sales as 
                                                                   defined by ORS 314.665.
Questions

Questions A–C. Complete only if this is your first return          Line instructions
or the answer changed during the tax year.
                                                                   Line 1. Taxable income from U.S. corporation income 
Question D. Refer to the current list of North American 
                                                                   tax return. Enter the taxable income reported for federal 
Industry Classification System (NAICS) codes  found 

150-102-021-1 (Rev. 10-17-23)                                    9                                 2023 Form OR-20-INC Instructions

- 10 -

income tax purposes before net operating loss or special decreased income (ORS 314.733). Visit our website for
deductions (federal Form 1120, line 28). more information.
• Deferred gain recognized from out-of-state disposi-
Additions tion of property acquired in an IRC §1031 or §1033
Line 2. Total additions from Schedule OR-ASC-CORP, exchange. See ORS 317.327 regarding the computation
Section A. The amount by which any item of income is of the addition if gain or loss is recognized for federal
greater under Oregon law than under federal law, or the tax purposes but not taken into account in the compu-
amount by which any allowable deduction is less under tation of Oregon taxable income.
Oregon law than under federal law, is an addition on • Depletion (percentage in excess of cost). Add the fed-
your Oregon return. eral deduction that is in excess of the Oregon allow-
Use Schedule OR-ASC-CORP, Section A, to report the ance for depletion (ORS 317.374).
amount and description code of each difference. Use the • Depreciation differences. If your Oregon deprecia-
description code from the list in Appendix A. The total tion isn’t the same as your federal depreciation, the
of all additions is entered on Form OR-20-INC, line 2. difference is a required modification to your Oregon
Additions include: return (ORS 317.301). Use Schedule OR-DEPR to deter-
mine the Oregon modification.
• Bad debt reserve addition of a financial institution
to the extent that the federal amount exceeds the • Gain or loss on the disposition of depreciable prop-
amount that’s allowable for Oregon. The bad debt erty. Add the difference in gain or loss on sale of busi-
method for financial institutions is tied to the fed- ness assets when your Oregon basis is less than your
eral method. For taxpayers required to use the spe- federal basis (ORS 317.356 and OAR 150-317-0420).
cific write-off method, an addition must be made if
• Global intangible low-taxed income (GILTI) under
the amortization of the federal reserve is less than the
IRC Section 250. You must add back any GILTI amount
amortization of the Oregon reserve (ORS 317.310).
not included in Line 1 of your Oregon return. Gener-
• Capital construction fund. Amounts deferred under ally, the federal deduction is taken on line 29b of fed-
Section 607 of the Merchant Marine Act of 1936 and eral Form 1120 and doesn’t impact the Oregon return.
IRC §7518 must be added back to federal taxable However, if any amount was omitted or deducted in
income (ORS 317.319). determining federal income carried to line 1 of your
Oregon return, it must be added back before a subtrac-
• Charitable donations not allowed for Oregon. Dona-
tion can be claimed. Report the Oregon addition (if
tions to a charitable organization that has received a
any) on Schedule OR-ASC-CORP using code number
disqualifying order from the Attorney General aren’t
186 ORS 317.267).
deductible as charitable donations for Oregon tax pur-
poses. Such organizations are required to provide a • Income from sources outside the United States. Add
disclosure to a donor to acknowledge this. The Attor- income from sources outside the United States, as
ney General will publish online and otherwise make defined in IRC §862, not included in federal taxable
publicly available information identifying the chari- income under IRC §§861 to 864 (ORS 317.625).
table organizations receiving a disqualification order.
• Income of related FSC or DISC. Net income or loss
If you claimed a federal deduction, an addition must
must be included in the net income of the related U.S.
be made on your Oregon return for donations to such
affiliate if the related FSC or DISC doesn’t qualify for
charitable organizations (ORS 317.491).
ORS 317.283(2) treatment (ORS 317.283 and 317.286).
• Claim of right income repayment adjustment when
• Individual Development Account credit. Donations
credit’s claimed. The deduction under IRC §1341 on
deducted on the federal return must be added back to
the federal return must be added back to federal tax-
federal taxable income if the Oregon credit’s claimed
able income on your Oregon return if the Oregon cred-
[ORS 315.271(2)].
it’s claimed (ORS 317.388).
• Intercompany transactions involving intangible
• CPAR addition. If you’re an owner of a partnership
assets. The user of the intangible asset must add the
that was subject to a partnership-level audit by the
royalty or other expense for such use to federal taxable
IRS (or you’re an owner of a tiered partner of such a
income as an addition on the Oregon tax return if:
partnership), you may have to increase or decrease
your Oregon income as a result of the audit. Report an ° An intangible asset is owned by one corporation or
increase in income using addition code 187 or report a business (the owner), and used by another (the user)
decrease in income using subtraction code 384, which- for a royalty or other fee;
ever is applicable. Use these codes even if another ° Both the owner and the user are “owned by the same
code is assigned for the specific type of increased or interests,” as defined in Treas. Reg. §1.469-4T(j);
150-102-021-1 (Rev. 10-17-23) 10 2023 Form OR-20-INC Instructions

- 11 -

° The owner and the user aren’t included in the same • Opportunity Grant Fund (auction). Any federal deduc-
Oregon tax return; and tion for contributions for which an Opportunity Grant
° The separation of ownership of the intangible asset Fund tax credit certification is made must be added to
from the user of the intangible asset results in either: federal taxable income (ORS 315.643).
evasion of tax or a computation of Oregon taxable
income that isn’t clearly reflective of Oregon busi- • Oregon excise tax and other state or foreign taxes on
ness income. or measured by net income. Oregon excise tax may
not be deducted on the Oregon return. Taxes of other
If the owner also files an Oregon return, the owner states or foreign governments on or measured by net
of the intangible asset must report the correspond- income or profits may not be deducted on the Oregon
ing royalty or other income as a negative addition on return. If you subtracted these taxes on your federal
Schedule OR-ASC-CORP, Section A (ORS 314.295 and return, you must add them back on your Oregon
supporting administrative rules). return. However, the Oregon minimum tax and some
• Interest income excluded from the federal return. local taxes, such as the Multnomah County Business
Oregon gross income includes interest on all state and Income tax, are deductible, and aren’t required to be
municipal bonds or other interest excluded for fed- added back (ORS 317.314).
eral tax purposes. Reduce the addition by any interest • Oregon production investment fund. Add back the
incurred to carry the obligations and by any expenses
amount of contribution for which a tax credit certifica-
incurred in producing this interest income (ORS 317.309).
tion is made that’s allowed as a deduction for federal
• Inventory costs. The costs allocable to inventory are tax purposes (ORS 315.514).
the same as those included in IRC §263A. Differences
• REITs and RICs. A REIT or RIC meeting the federal
in depreciation and depletion allocable to inventory
affiliate definition must be included in the consoli-
result in a modification [ORS 314.287(3)].
dated Oregon return. This is an Oregon modification
• IRC §139A federal subsidies for prescription drug (addition or subtraction) to federal taxable income. For
plans. For federal purposes, taxpayers can exclude apportioning taxpayers, factors from the REIT or RIC
from taxable income certain federal subsidies for are included in the apportionment calculation of the
prescription drug plans per IRC §139A. However, for consolidated Oregon return (ORS 317.010 and support-
Oregon purposes, this federally excluded income is an ing administrative rules).
addition on the Oregon return (ORS 317.401).
• Safe harbor lease agreements. Oregon doesn’t tie
• IRC §631(a) treatment of timber isn’t recognized by to the federal safe harbor lease provisions. See ORS
Oregon. Both beginning and ending inventories must 317.349 and supporting administrative rules for details
be adjusted for IRC §631(a) gain. For Oregon purposes, about the adjustments required for Oregon.
there’s no taxable event until actual sale (ORS 317.362).
• University venture development fund contributions.
• Losses of nonunitary corporations. Net losses of non- Add to federal taxable income the amount of contri-
unitary corporations included in a consolidated federal butions used to calculate the University Venture Fund
return must be eliminated from the Oregon return. Contribution credit that were deducted from federal
Net losses include the separate loss as determined
taxable income (ORS 315.640).
under Treasury Regulations adopted for IRC §1502,
and deductions, additions, or items of income, expense, • Unused business credits. Unused business credits
gain, or loss for which the consolidated treatment is taken as a federal deduction under IRC §196 must be
prescribed. Include a schedule showing your compu- added back to federal taxable income (ORS 317.304).
tation of the total net loss eliminated [ORS 317.715(2)].
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 require- Subtractions
ment, they’re excluded from the consolidated Oregon
return. The insurance affiliate is treated as if it’s a non- Line 4. Total subtractions from Schedule OR-ASC-CORP,
unitary affiliate of its consolidated group and the loss Section B. The amount by which an item of income is less
(if any) is an addition (ORS 317.715). under Oregon law than federal law, or the amount by
which an allowable deduc tion is greater under Oregon
• Net federal capital loss deduction. If the Oregon and law than federal law, is a subtraction on your Oregon
federal capital loss deductions are different, add the return.
federal capital loss back to federal taxable income. The
Oregon capital loss will be deducted after subtrac- Use Schedule OR-ASC-CORP, Section B, to report the
tions (and apportionment for corporations required to amount and description code of each difference. Use the
apportion income) to arrive at Oregon taxable income description code from the list in Appendix A. The total
(ORS 317.013 and supporting administrative rules). of all subtractions is entered on Form OR-20-INC, line 4.
150-102-021-1 (Rev. 10-17-23) 11 2023 Form OR-20-INC Instructions

- 12 -

Subtractions include: • Film production labor rebate. Subtract the amount
received as a labor rebate that’s included in federal tax-
• Bad debt reserve addition of a financial institution
able income (ORS 317.394).
to the extent that the Oregon amount exceeds the
amount that’s allowed on the federal return. A sub- • Foreign derived intangible income (FDII) under IRC
traction is also made if the amortization of the federal Section 250. Oregon is connected with the FDII deduc-
reserve is greater than the amortization of the Oregon tion on your federal return. Generally, the federal deduc-
reserve (ORS 317.310). tion amount is reported on federal Form 8993, Part IV,
line 8. Report your Oregon subtraction on Schedule
• Charitable contribution. Subtract the amount by OR-ASC-CORP using code number 382. Don’t use
which a corporation must reduce its charitable contri- Form OR-DRD for this subtraction [SB 851 (2019)].
bution deduction [IRC §170(d)(2)(B)] (ORS 317.307 and
• Gain or loss on the sale of depreciable property.
OAR 150-317-0350). The
difference in gain or loss on the sale of business assets
• CPAR subtraction. If you’re an owner of a partner- when your Oregon basis is less than your federal basis
ship that was subject to a partnership-level audit by (ORS 317.356).
the IRS (or you’re an owner of a tiered partner of such
• Global intangible low-taxed income (GILTI) under
a partnership), you may have to increase or decrease
IRC Section 250. Oregon allows an 80 percent subtrac-
your Oregon income as a result of the audit. Report an tion of GILTI amounts under IRC Section 951A that are
increase in income using addition code 187 or report a included in your Oregon income. Report the Oregon
decrease in income using subtraction code 384, which- subtraction on Schedule OR-ASC-CORP using code
ever is applicable. Use these codes even if another number 381. Don’t use Form OR-DRD for this subtrac-
code is assigned for the specific type of increased or tion (ORS 317.267).
decreased income (ORS 314.733). Visit our website for
more information. • IC-DISC commission payments. For tax years begin-
ning on or after January 1, 2013, a deduction is allowed
• Deferred gain recognized from out-of-state disposi- for commission payments made to an IC-DISC if
tion of property acquired in an IRC §1031 or §1033 the DISC was formed on or before January 1, 2014
exchange. See ORS 317.327 regarding the computa- (ORS 317.283).
tion of the subtraction if gain or loss is recognized for
• Income of nonunitary corporations. Net income of non-
federal tax purposes but not taken into account in the
unitary corporations included in a consolidated federal
computation of Oregon taxable income.
return must be eliminated from the Oregon return. Net
• Depletion. Subtract the Oregon allowance for deple- income includes the separate taxable income, as deter-
tion that is in excess of the federal deduction for deple- mined under Treasury Regulations adopted for IRC
tion (ORS 317.374). §1502, and any deductions, additions, or items of income,
expense, gain, or loss for which consolidated treatment
• Depreciation differences. If your Oregon deprecia- is prescribed. Include a schedule showing computation
tion isn’t the same as your federal depreciation, the of the total net income eliminated [ORS 317.715(2)].
difference is a required modification to your Oregon
return (ORS 317.301). Use Schedule OR-DEPR to deter- • Income of unitary insurance affiliates. If a unitary
mine the Oregon modification. insurance affiliate has a separate return filing require-
ment, they’re excluded from the consolidated Oregon
• Dividend deduction. A 70 percent deduction is allowed return. The insurance affiliate is treated as if it’s a
for qualifying dividends regardless of geographic nonunitary affiliate of its consolidated group and any
source. An 80 percent deduction is allowed for divi- income is a subtraction (ORS 317.715).
dends received from corporations whose stock is owned
• Income on a composite return. A corporate owner of
20 percent or more. Use Oregon Form OR-DRD for com- a pass-through entity (PTE) may subtract its share of
puting the Oregon dividend deduction and include it distributive income that has already been reported on
with your return (ORS 317.267). an Oregon composite return. See Publication OR-OC
• Federal credits. Subtract the amount of expense not and OAR 150-314-0515 for more information.
deducted on the federal return attributable to claiming • Interest on obligations of the U.S. and its instru-
a federal credit (ORS 317.303). mentalities included in Form OR-20-INC, line 1. This
• Federal investment tax credit on certain assets. If you applies to income tax filers only. Reduce the subtrac-
take a federal tax credit on certain assets, and your tion by any expenses incurred to produce this interest
income.
federal basis is less than your Oregon basis, you must
recalculate the gain or loss on disposal of those assets • Inventory costs. The costs allocable to inventory are
and subtract the difference (ORS 317.356). the same as those included in IRC §263A. Differences
150-102-021-1 (Rev. 10-17-23) 12 2023 Form OR-20-INC Instructions

- 13 -

in depreciation and depletion allocable to inventory • Taxes paid to a foreign country. You may subtract
result in a modification [ORS 314.287(3)]. from federal taxable income the taxes paid to a foreign
country upon the payment of interest or royalties aris-
• IRC Section 245A foreign-source portion dividends.
ing from sources within such foreign country, if such
Oregon allows a 100 percent subtraction of the foreign-
taxes are not deductible in arriving at federal taxable
source portion of dividends from certain foreign cor-
porations under IRC Section 245A. The subtraction is income and if the interest or royalties are included in
allowed only if the amount is included in federal tax- arriving at Oregon taxable income [ORS 317.314.(3)].
able income reported on line 1 of your Oregon return. • Work opportunity credit wages not deducted on the
Generally, the federal deduction amount is reported federal return. Subtract the amount of wages that
on federal Form 1120, Schedule C, line 13. Report your weren’t deducted on the federal return because the
Oregon subtraction on Schedule OR-ASC-CORP using work opportunity credit was claimed (ORS 317.303).
code number 383. Don’t use Form OR-DRD for this
subtraction (ORS 317.267). Line 5. Net income before apportionment (line 3 minus
line 4). This amount is carried to Schedule OR-AP, part
• Losses from outside the United States. Subtract losses 2, line 1.
from sources outside the United States, as defined in
IRC §862, not included in federal taxable income under Net loss and net capital loss deductions are entered on Sched-
IRC §§861 to 864 (ORS 317.625). ule OR-AP for Form OR-20-INC filers.
• Manufactured dwelling park tenant payments made Net loss deduction.
under ORS 90.505 to 90.840 to compensate a tenant for • Enter the deduction on Schedule OR-AP-2, line 10a for
costs incurred due to the closure of the park may be net losses assigned to Oregon during the preceding
subtracted (ORS 317.092). taxable years (and not previously deducted). Enter as
• Marijuana business expenses. ORS 317.363 allows a positive number.
Oregon taxpayers filing a corporate excise or income • Include a schedule showing your computations.
tax return to deduct business expenses otherwise • A net loss is the amount determined under IRC Chap-
barred by IRC §280E if the taxpayer is engaged in mar- ter 1, Subtitle A, with the modifications specifically
ijuana-related activities authorized by ORS 475C.005 to prescribed under Oregon law.
475C.525, or ORS 475C.700 to 475C.919. • The Oregon deduction is the sum of unused net losses
assigned to Oregon for preceding taxable years.
• Psilocybin business expenses. ORS 317.363 allows • A net operating loss carryforward is required to be
Oregon corporation excise and income tax filers to reduced by the entire Oregon net income of interven-
subtract certain business expenses otherwise barred ing tax years [ORS 317.476(4)(b)].
by IRC §280E if the corporation is engaged in psilo- • Net losses can be carried forward up to 15 years.
cybin-related activities authorized by ORS 475A.210 to • Oregon doesn’t allow net losses to be carried back.
475A.722, the Oregon Psilocybin Services Act. Use sub- • For losses, and built-in losses occurring before a
traction code 385 on Schedule OR-ASC-CORP. change in ownership [separate return loss year (SRLY)
• REITs and RICs. A REIT or RIC meeting the federal limitations], Oregon is tied to the federal limitations
affiliate definition must be included in the consoli- (IRC §382 and §384; ORS 317.476 and 317.478).
dated Oregon return. This is an Oregon modification • The total net loss deduction on a consolidated Ore-
(addition or subtraction) to federal taxable income. For gon return is the sum of the net losses available to
apportioning taxpayers, factors from the REIT or RIC each of the corporations subject to the limitations in
are included in the apportionment calculation of the OAR 150-317-0460.
consolidated Oregon return (ORS 317.010 and support- • REITs, if qualified under IRC §856, aren’t allowed a net
ing administrative rules). loss deduction [ORS 317.476(5)].
• Sale of manufactured dwelling park. The net gain Net capital loss deduction.
attributable to the sale of a manufactured dwelling • Enter the deduction on Schedule OR-AP-2, line 10b.
park to a tenant’s association, facility purchase asso- Enter as a positive number.
ciation, or tenant’s association supported nonprofit • Oregon allows a net capital loss deduction for losses
organization is exempt from tax (Note following ORS apportioned to Oregon and carried from another year.
317.401). • The deductible loss is limited to net capital gain
• State of Oregon interest income included on line included in Oregon income. Capital losses must be
2 (Form OR-20-INC only). Interest income from carried back three tax years and then may be carried
obligations of the state of Oregon isn’t taxable if the forward for up to five tax years.
obligation was issued after May 24, 1961. Reduce the • Include a schedule showing your computations
subtraction by any expenses incurred to produce this including the tax year the net capital loss originated
interest income. (ORS 317.476 and supporting administrative rules).
150-102-021-1 (Rev. 10-17-23) 13 2023 Form OR-20-INC Instructions

- 14 -

Line 6. Apportionment percentage.Enter the apportion- tax that was deferred from the last year of the C corpora-
ment percentage from Schedule OR-AP, part 1, line 23. tion (ORS 314.771).
Line 7. Oregon taxable income from Schedule OR-AP,
part 2, line 12. Net income tax
Line 16. Net income tax (line 14 minus line 15). Income
Tax 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 obliga- • Fill in the total estimated tax payments made before
tions under ORS 314.302, enter the amount as a positive filing your Oregon return.
number. Include a schedule showing how you figured • List name and FEIN of the payer only if different from
the interest. the corporation filing this return.
Line 10. Tax before credits (line 8 plus line 9). Note: Consolidated return filers. If estimated payments
were made under a different name, fill in the paying
Credits corporation’s name and FEIN on Schedule ES for correct
application of estimated payments.
For a list and description of Oregon corporation cred its,
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. • Include any refunds applied from other years on line 5.
• Use the description code from the list in Appendix A. • Enter payments made with your extension or other
• List credits and codes on the OR-ASC-CORP in the prepayments on line 6.
order you want them used. • Fill in on line 7 the refundable credits from Schedule
• Generally, taxpayers must claim the full amount of a OR-ASC-CORP, Section E.
credit allowed per year (ORS 314.078). • Carry the total from line 8 to Form OR-20-INC, line 17.
Line 11. Total standard credits from Schedule OR-ASC- Line 18. Withholding payments made on your behalf
CORP, Section C . Enter as a positive number. from pass-through entity or real estate income. If taxes
were paid on the corporation’s behalf, enter the amount
Line 12. Tax after standard credits (line 10 minus line
on this line.
11).
There’s a requirement to withhold tax from the proceeds
Line 13. Total carryforward credits from Schedule OR-
of sales of Oregon real property by nonresidents. This
ASC-CORP, Section D . Enter as a positive number.
applies to individual nonresidents as well as C corpora-
Line 14. Income tax after standard and carryforward tions that aren’t doing business in Oregon. The amount
credits (line 12 minus line 13). Enter 0 if line 13 is greater to be withheld is the lesser of:
than line 12.
• 4 percent of the consideration (sales price);
Line 15. LIFO benefit recapture subtraction. This • 4 percent of the net proceeds (amount dispersed to the
amount is a subtraction from tax after credits. Oregon seller); or
has adopted the provisions of IRC §1363(d) for S corpora- • 8 percent of the gain that’s includible in Oregon tax-
tions. LIFO benefits are included in taxable income for able income for the year.
the last year of the C corporation under these provisions.
On a separate schedule, compute the difference between Withholding isn’t required if one of the following require-
tax (after credits and any surplus refund) on income per ments is met:
the return and income without the recapture of LIFO • The consideration for the real property doesn’t exceed
benefits. Multiply this difference by 75 percent and enter $100,000;
the result on Form OR-20-INC, line 15 as a subtraction • The property is acquired through foreclosure;
from the tax after standard and carryforward cred- • The transferor (owner) is a resident of Oregon—or if a
its. Include the computation schedule with the Oregon
C corporation—has a permanent place of business in
return.
this state; or
On the LIFO benefits line of each of the first three • The transferor meets one of the requirements in ORS
returns of the new S corporation, add one-third of the 314.258(3)(d) through (f).
150-102-021-1 (Rev. 10-17-23) 14 2023 Form OR-20-INC Instructions

- 15 -

See instructions for Oregon Form OR-18-WC,          Report of      • 100 percent late pay and late filing penalty. Include 
Tax Payment or Written Affirmation for Oregon Real Prop-            a penalty payment of 100 percent of your unpaid tax 
erty Conveyance, for more information (ORS 314.258 and              if you don’t file returns for three consecutive years by 
supporting administrative rules).                                   the original or extended return filing due date of the 
                                                                    third year. A 100 percent penalty is assessed on each 
Pass-through entity withholding requirement. A pass-
                                                                    year’s tax balance.
through entity (partnership, S corporation, LLP, LLC, or 
certain trusts) with distributive income from Oregon               Line 22. Interest due with this return. You must pay 
sources must withhold tax from its nonresident owners.             interest on unpaid taxes if:
The requirement is waived if the nonresident owner                 • You don’t pay the tax balance by the original filing due 
makes an election to join in the filing of a composite              date, excluding extensions.
return, sends us a signed Form OR-19-AF, Oregon Affi-              • You file an amended return and have tax to pay.
davit for a Nonresident Owner of a Pass-through Entity, or         • Your taxable income is changed because of a federal or 
meets another exception listed in ORS 314.775 and sup-              state audit and you owe more tax.
porting administrative rules. For more information, see 
                                                                   Interest owed on tax starts the day after the due date of 
instructions for Oregon Form OR-19,   Annual Report of 
                                                                   your original return, excluding extensions, and ends on 
Nonresident Owner Tax Payments.
                                                                   the date of your payment. Interest is computed daily. 
Line 19. Tax due. Is line 16 more than line 17 plus 18? If 
                                                                   Even if you have an extension to file, you’ll owe interest 
so, line 16 minus lines 17 and 18.
                                                                   if you pay after the return’s original due date.
Line 20. Overpayment.         Is line 16 less than line 17 plus 
                                                                   To calculate interest:
line 18? If so, line 17 plus line 18, minus line 16.
                                                                        Tax × Daily interest rate × Number of days.
Line 21. Penalty due with this return. To avoid penalty 
and interest, you must make any tax payment owed by                Interest rates and effective dates:
the original due date of the tax return, excluding exten-
sions. You must also e-file or mail your tax return by                     For periods 
the original due date. If you file with a valid extension,                 beginning         Annually      Daily
include the extension with your return and file by the                    January 1, 2024      8%         0.0219%
extended due date.                                                        January 1, 2023      6%         0.0164%
                                                                          January 1, 2022      4%          0.0110%
Enter the following penalties on your return if they apply.
                                                                   Interest accrues on any unpaid tax during an extension 
• 5 percent failure-to-pay penalty. Include a penalty 
                                                                   of time to file.
payment of 5 percent of your unpaid tax if you don’t 
pay by the original due date, even if you have an exten-           Interest will increase by one-third of 1 percent per month 
sion of time to file.                                              (4 percent yearly) on delinquencies if:
  Exception: You won’t be charged the 5 percent fail-              • You file a return showing tax due, or we assessed an 
ure-to-pay penalty if you meet all of the following                 existing deficiency; and
requirements:                                                      • The assessment isn’t paid within 60 days after the 
                                                                    notice of assessment is issued; and
  ° You have a valid federal or Oregon extension, and              • You haven’t filed a timely appeal with us.
  ° You pay at least 90 percent of your tax after credits 
    by the original due date of the return, and                    Line 23. Interest on underpayment of estimated tax 
  ° You file your return within the extension period, and          (UND). You must make quarterly estimated tax pay-
  ° You pay the balance of tax due when you file your              ments if you expect to owe $500 or more in tax. Oregon 
    return, and                                                    charges UND if:
  ° You pay the interest on the balance of tax due when            • The quarterly payment is less than the amount due for 
    you file your return or within 30 days of the date of           that quarter; or
    the bill you receive from us.                                  • We receive the quarterly payment after that quarter’s 
  If you filed with a valid extension, but didn’t pay               due date; or
90 percent of your tax by the original due date, you’ll            • No quarterly payments are made during the year and 
be charged the 5 percent failure-to-pay penalty.                    the final tax debt is $500 or more.
• 20 percent failure-to-file penalty. Include a penalty            Use Form OR-37 to:
payment of 20 percent of your unpaid tax if you don’t              • Calculate the amount of underpayment of estimated 
file your return within three months after the due date             tax.
(including extensions). The failure-to-file penalty is in          • Compute the interest you owe on the underpayment.
addition to the 5 percent failure-to-pay penalty.                  • Show you meet an exception to the payment of interest.

150-102-021-1 (Rev. 10-17-23)                                   15                                    2023 Form OR-20-INC Instructions

- 16 -

If you have an underpayment of estimated tax, include Line 27. Amount of refund to be credited to estimated
Form OR-37 with your tax return, check the box on page tax. You may elect to apply part or all of your refund
1 of your Form OR-20-INC, and file them before the due to your next year’s estimated tax payments. Fill in the
date of the return. amount you want to apply. Your election is irrevocable.
If your current year corporation tax liability is less than Elected amounts that are attributable to estimated tax
$500, you aren’t required to make estimated payments. payments received prior to the following year’s first
Don’t complete this form. However, this provision doesn’t quarter estimated tax due date, will be applied as a
apply to a high-income taxpayer. A “high-income tax- timely first quarter installment of the following year.
payer” is one that had federal taxable income before net Elected amounts attributable to payments received after
operating loss and capital loss carryovers and carrybacks the following year’s first quarter estimated tax due date,
of $1 million or more in any one of the last three years, will be applied to the following year’s estimated tax
not including the current year. account as of the date the payment is received. See ORS
314.515 and OAR 150-314-0302.
Line 24. Total penalty and interest (add lines 21
through 23). Line 28. Net refund (line 26 minus line 27).
Authorize your preparer. To authorize a preparer other
Total due or refund than taxpayer to discuss this return with us, check the
Line 25. Total due (line 19 plus line 24). See “Filing box located above the signature line for “Preparer sig-
checklist” for payment options. Don’t include a Form nature other than taxpayer.” To authorize a person other
OR-20-V, payment voucher, with your payment if you’re than the preparer, include a signed Form 150-800-005,
including a payment with your return. Tax Information Authorization and Power of Attorney for
Representation.
Note: Any payments received after the original due date
will be applied first to penalty, then to interest, and then
to tax [ORS 305.265(13)]. Do you have questions or need help?

Special instructions. If you owe penalty or interest and www.oregon.gov/dor
have an overpayment on line 20, and your overpayment 503-378-4988 or 800-356-4222
is less than total penalty and interest, then fill in the questions.dor@ dor.oregon.gov
result of line 24 minus line 20, on line 25.
Contact us for ADA accommodations or assistance in
Line 26. Refund available (line 20 minus line 24). other languages.

150-102-021-1 (Rev. 10-17-23) 16 2023 Form OR-20-INC Instructions

- 17 -

Appendix A
Corporation Form OR-20-INC

2023 Schedule OR-ASC-CORP codes

Additions
Description Code Description Code
Bad debt reserve federal exceeding Oregon ................. 156 Inventory costs ................................................................. 161
Capital construction fund ............................................... 152 IRC §139A federal subsidies for prescription drugs ... 123
Charitable donations not allowed for Oregon ............. 132 IRC §631(a) treatment of timber not recognized by
Claim of right income repayment .................................. 173 Oregon ............................................................................ 162
CPAR addition .................................................................. 187 Losses of nonunitary corporations ................................ 164
Deferred gain from out-of-state disposition of Losses of unitary insurance affiliates ........................... 183
property ......................................................................... 118 Net federal capital loss deduction ................................. 165
Depletion (percentage in excess of cost) ....................... 166 Opportunity Grant Fund (auction) ................................ 185
Depreciation differences..................................................174 Oregon excise tax and other tax ..................................... 151
Gain or loss on disposition of depreciable property ... 158 Oregon production investment fund ............................ 157
Global intangible low-taxed income (GILTI) ............... 186 REITs and RICs ................................................................. 168
Income from sources outside U.S. ................................. 159 Safe harbor lease agreements ......................................... 169
Income of related FSC or DISC ...................................... 178 Uncategorized addition (must include explanation) .. 199
Individual Development Account credit ...................... 113 University venture development fund
Intercompany transactions involving intangible contributions ................................................................. 171
assets ............................................................................... 160 Unused business credits .................................................. 122
Interest income excluded from the federal return
(state, municipal, and other interest income) ........... 150

Subtractions
Description Code Description Code
Bad debt reserve Oregon exceeding federal ................. 359 Income on a composite return ........................................ 341
Charitable contribution ................................................... 351 Interest on obligations of the U.S. and
CPAR subtraction ............................................................. 384 its instrumentalities ..................................................... 361
Deferred gain from out-of-state disposition of Inventory costs ................................................................. 357
property ......................................................................... 352 IRC Section 245A foreign-source portion dividends... 383
Depletion (Oregon in excess of federal allowance) ..... 362 Losses from outside U.S. ................................................. 358
Depreciation differences..................................................353 Manufactured dwelling park tenant payments ........... 344
Dividend deduction ........................................................ 370 Marijuana business expenses ......................................... 375
Federal credits .................................................................. 354 Psilocybin business expenses ......................................... 385
Federal investment tax credit on certain assets ........... 355 REITs and RICs ................................................................. 360
Film production labor rebate .......................................... 336 Sale of manufactured dwelling park ............................. 338
Foreign derived intangible income (FDII) ................... 382 State of Oregon interest income included on line 2 .... 364
Gain or loss on sale of depreciable property ................ 356 Taxes paid to a foreign country ...................................... 378
Global intangible low-taxed income (GILTI) ............... 381 Uncategorized subtraction (must attach
IC-DISC commission payments explanation) ................................................................... 399
(DISC formed before 01/02/2014) ............................. 366 Work opportunity credit wages not deducted on
Income of nonunitary corporations ............................... 371 the federal return ......................................................... 372
Income of unitary insurance affiliates .......................... 376

Standard credits
Description Code
Oregon Cultural Trust contribution (ORS 315.675) ..... 807
Reservation enterprise zone (ORS 315.506) .................. 810
Uncategorized credit (must include explanation) ....... 899

150-102-021-1 (Rev. 10-17-23) 17 2023 Form OR-20-INC Instructions

- 18 -

Carryforward credits
Description                                       Code                                Description                                      Code
Bovine manure (carryforward only)(ORS 315.176) ..... 869                              Opportunity Grant Fund (auction) 
Business energy (carryforward only) (ORS 315.354) ... 839                             (carryforward only) (ORS 315.643) .............................871
Child Care Fund contributions (carryforward only)                                     Oregon affordable housing lender’s credit  
(ORS 315.213) .................................................................841    (ORS 317.097) ................................................................ 854
Crop donation (ORS 315.156) ......................................... 843             Oregon Low-Income Community Jobs Initiative 
Electronic commerce zone investment (carryforward                                     (carryforward only) (ORS 315.533) ................................ 855
only) (ORS 315.507) ...................................................... 845        Oregon production investment fund (auction)  
Employer-provided dependent care assistance                                           (ORS 315.514) ................................................................ 856
(carryforward only) (ORS 315.204) ............................ 846                    Renewable energy resource equipment  
Employer scholarship (ORS 315.237) ............................ 847                   manufacturing facility (carryforward only)  
Energy conservation projects (carryforward only)                                      (ORS 315.341) ................................................................ 860
(ORS 315.331) ................................................................ 849    Rural technology workforce development 
Forest Conservation Tax Credit (FCTC)                                                   (carryforward only) (ORS 315.523) ............................ 868 
(Or Laws 2022, ch 24) ................................................... 873         Short line railroad rehabilitation (ORS 315.593) .......... 872
Individual Development Account (IDA) donation                                         Transportation projects (carryforward only)  
(ORS 315.271) ................................................................ 852    (ORS 315.336) ................................................................ 863
Lender’s credit: energy conservation (carryforward                                    Uncategorized carryforward credit (must include  
only) (ORS 317.112) ...................................................... 848        explanation) ................................................................... 999
Long-term enterprise zone facilities (carryforward                                    University venture fund (ORS 315.640) ........................ 864
only) (ORS 317.124) ...................................................... 853        Weatherization lender’s credit (carryforward only) 
                                                                                      (ORS 317.111) ................................................................. 866

Refundable credits
Description                                       Code
Agricultural Employer Overtime Tax Credit (Or Laws 
2022, ch 115, § 8) ............................................................ 901
Claim of right (ORS 315.068) .......................................... 890

150-102-021-1 (Rev. 10-17-23)                                                      18             2023 Form OR-20-INC Instructions

- 19 -

                              Appendix B
                              Oregon Corporation Form OR-20-INC
                              2023 Tax rates 

Calculated tax (ORS 318.020, 317.061)

If Oregon taxable income is:
     • $1 million or less, multiply Oregon taxable income by 6.6 percent (not below zero).
     • More than $1 million, multiply the amount that’s more than $1 million by 7.6 percent, and add $66,000.
Note: Income tax filers pay only calculated tax. They aren’t subject to minimum tax.

150-102-021-1 (Rev. 10-17-23)        19                                                   2023 Form OR-20-INC Instructions

- 20 -

                                         Appendix C
                              Oregon Corporation Form OR-20-INC
                                  Alternative apportionment
               Please read carefully. This information is not the same for all tax programs.
Oregon law allows taxpayers to request an alterna-           Note: Taxpayers filing amended returns for 2015 or prior 
tive method of apportionment using the instructions          must use the form year corresponding to the tax year 
below. Uniform Division of Income for Tax Purposes Act       even though there’s no alternative apportionment check-
(UDITPA) taxpayers filing under ORS 314.605 to ORS           box on the return. Clearly identify that you’re requesting 
314.675, as well as insurers, and taxpayers filing under     alternative apportionment by writing the words “Alter-
ORS 314.280, must use this procedure to apply for alter-     native apportionment request” at the top and adhere 
native apportionment.                                        to all other requirements. Determinations to amended 
                                                             returns may take longer to process.
Administration
                                                             Method 2 —Alternative apportionment petition 
We will review the alternative apportionment request         submitted separately from your original or amended 
and issue a decision letter.                                 return 
If your alternative apportionment petition is denied, you    • Your written petition must have the title “Alternative 
may appeal the denial of your petition to Oregon Tax         apportionment request.”
Court as provided in ORS 305.275.                            • We will not rule on your alternative apportionment 
                                                             request until you file your original or amended return 
If your alternative apportionment petition is approved, 
                                                             using standard apportionment provisions.
you may amend your returns within the normal statute 
                                                             • Your original or amended return, for which the writ-
of limitations. The approval of your petition will remain 
                                                             ten petition requests alternative apportionment, must 
in effect unless and until we revoke it during audit or 
                                                             use standard apportionment provisions.
you file a new petition and receive our approval of the 
                                                             • Mail  your  petition  to:  Oregon  Department  of  Reve-
new proposal.
                                                             nue, Corporation Section, 955 Center St NE, Salem OR 
Allow at least 6 months for us to make a determination.      97301-2555.
Also, note that all petitions for alternative apportion-
ment may result in additional review and documenta-          Both methods of petition
tion requests.                                               • The petition must be signed by the taxpayer or the tax-
                                                             payer’s representative.
Instructions                                                 • You must use standard apportionment provisions to 
                                                             complete your original or amended return while the 
• Your written petition for alternative apportionment 
                                                             department rules, in writing, on your request for alter-
  can be submitted with your original or amended 
                                                             native apportionment. 
  return (Method 1) or separate from your original or 
                                                             • In the case of a UDITPA taxpayer, the petition must 
  amended return (Method 2).
                                                             fully explain the  extent of the taxpayer’s business 
• For administrative purposes, we prefer Method 2.
                                                             activity in Oregon and why standard apportionment 
                                                             doesn’t fairly and equitably represent the taxpayer’s 
Method 1 —Alternative apportionment petition 
                                                             business activity in Oregon. An ORS 314.280 taxpayer 
submitted with your original or amended return 
                                                             must fully explain why standard apportionment 
• Check the alternative apportionment checkbox on            doesn’t fairly and equitably represent the amount of 
  the front of the return and include a written peti-        net income the taxpayer earns inside and outside Ore-
  tion for alternative apportionment with your original      gon. An  insurer  must explain  why standard  appor-
  or amended return. Failure to do so could result in        tionment  doesn’t  fairly  and  equitably  represent  the 
  your request being overlooked. This box is to denote       insurer’s business activity within Oregon.
  requests only and isn’t to be used after a request is      • Your petition must fully explain your proposed 
  approved.                                                  method of alternative apportionment and explain why 
• You must include a written petition for alternative        this proposed method is more accurate in reflecting 
  apportionment with your original or amended return         business activity or net income, as appropriate, in Ore-
  if you check the alternative apportionment checkbox.       gon than the standard formula. 
• Do not complete the original or amended return using       • The petition must show how the Oregon return (Form 
  an alternative method of apportionment unless/until        OR-20, OR-20-INC, OR-20-INS, or OR-20-S) would be 
  that  alternative  method  of  apportionment  has  been    completed, including the net tax calculation, using the 
  approved.                                                  proposed method of alternative apportionment.
• Include your petition with your return.
150-102-021-1 (Rev. 10-17-23)                             20                         2023 Form OR-20-INC Instructions

PDF file checksum: 3091108118

(Plugin #1/9.12/13.0)