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Form OR-20 Instructions 2023

Oregon Corporation Excise Tax

Contents

Purpose of Form OR-20........................................ 2 Filing checklist
Important reminders ............................................ 2 Due date of return, Extensions .......................................... 9
Payments ............................................................................... 9
What’s new and Looking ahead ............... 2, 3 Assembling your return ...................................................... 9
Estimated tax payments ..................................... 3
Mailing Addresses ................................................... 9
Filing information Form instructions
Who must file with Oregon? ..............................................4 Heading and checkboxes ....................................................9
Filing requirements: consolidated returns, unitary Questions ............................................................................. 11
business, insurance affiliates, separate returns .......... 5
E-file .......................................................................................5 Line instructions
Federal audit changes, Amended returns ........................ 6 Additions ............................................................................. 11
Protective claims ..................................................................6 Subtractions ........................................................................ 13
Tax ........................................................................................ 16
Special filing requirements Credits .................................................................................. 16
Agricultural or horticultural cooperatives .......................6 LIFO benefit recapture ...................................................... 17
Broadcasters .......................................................................... 7 Net excise tax ...................................................................... 17
Exempt organizations ..........................................................7 Payments, penalty, interest, and UND ............................ 17
Homeowners associations .................................................. 7 Schedule ES—Estimated tax payments, other
Insurers .................................................................................. 7 prepayments, and refundable credits......................... 17
Interest charge domestic international Total due or refund ............................................................ 18
sales corporations (IC-DISCs) ........................................7
Limited liability companies (LLCs) ................................... 8 Do you have questions? .................................... 19
Political organizations ......................................................... 8
Appendices
Publicly traded partnerships .............................................. 8
Appendix A, 2023 Schedule OR-ASC-CORP code list .... 20
Real Estate Investment Trusts (REITs) and Regulated
Appendix B, 2023 Tax rates and minimum tax table ....22
Investment Companies (RICs) ....................................... 8
Appendix C, Alternative apportionment ....................... 23
Real Estate Mortgage Investment Conduits (REMICs) ..... 9

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.

150-102-020-1 (Rev. 10-17-23) 1 2023 Form OR-20 Instructions

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taxpayer with a loss in tax year 2023 may carry their loss
Purpose of Form OR-20 to tax year 2020. Visit our website at www.oregon.gov/dor
for additional information.
Use Form OR-20, Oregon Corporation Excise Tax Return,
to calculate and report the Oregon corporate excise tax
liability of a business entity taxable as a C corporation Credits
doing business in Oregon. Agricultural Employer Overtime Tax Credit
HB 4002 (2022) creates a refundable tax credit for over-
Important reminders time paid to agricultural workers. The measure requires
agricultural employers to pay certain workers for over-
If your registered corporation or insurance company time hours worked and creates a refundable personal
isn’t doing business in Oregon and has no Oregon- income or corporate tax credit for employers for a per-
source income, then you don’t need to file a corporation centage of wages paid as overtime pay to agricultural
tax return. workers for tax years beginning on or after January 1,
Revenue Online. Revenue Online provides convenient, 2023, and before January 1, 2029. Taxpayers must apply
secure access to tools for managing your Oregon tax for the tax credit through the department. Note that this
account. With Revenue Online, you may: credit can offset corporation minimum tax determined
under 317.090. Visit our website at www.oregon.gov/dor
• View your tax account. for additional information.
• Make payments.
• View correspondence we sent you. Forest Conservation Tax Credit (FCTC)
• Check the status of your refund. SB 1502 (2022) creates a non-refundable Forest Conserva-
For more information and instructions on setting up your tion Tax Credit (FCTC) for the stumpage value of timber
Revenue Online account, visit www.oregon.gov/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 modify the computation of the credit
(HB) or Senate Bills (SB) as shown. under certain conditions. See HB 2161 for additional
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
on or after January 1, 2009 and before January 1, 2011 • Cultural Trust contribution (ORS 315.675) ........code 807
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:
Net Operating Loss (NOL) carryback • Employer scholarship (ORS 315.237) ..................code 847
• 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 car- (ORS 315.593) ........................................................code 872
ryback applies in tax years beginning on or after Janu- • University venture fund (ORS 315.640) .............code 864
ary 1, 2023, and before January 1, 2029, and any tax year
to which the NOL may be carried back. For example, a

150-102-020-1 (Rev. 10-17-23) 2 2023 Form OR-20 Instructions

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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 
                                                                                   HB 3406 (2023) amended ORS 315.593 to eliminate the 
(ORS 317.154) ...........................................................code 837
                                                                                   distinction between Tier 1 and Tier 2 railroads for pur-
• Qualified research activities (ORS 317.152) ......code 858
                                                                                   poses of the short-line railroad tax credit. All taxpayers 
•  Repatriation credit (due to IRC §965) .................code 870
                                                                                   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). 
                                                                                   Rehabilitation costs that are funded by a federal or state 
Credits                                                                            grant cannot be used to claim the credit.
Oregon Affordable Housing Lender’s Credit                                          The credit is certified by Oregon department of Trans-
(ORS 317.097)                                                                      portation (ODOT). The changes described here apply 
Two separate bills amended this credit:                                            to tax years beginning on or after January 1, 2024, and 
                                                                                   before January 1, 2026.
• HB 2071 (2023) amended ORS 317.097 to allow finan-
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.                                                                       Oregon estimated tax payment requirements aren’t the 
• SB 892 (2023) amended ORS 317.097 to apply to proj-                              same  as federal estimated  tax payment requirements. 
ects involving households earning 80 percent or less of                            You must make estimated tax payments if you expect to 
the area median income. Prior to the amendment, ORS                                owe tax of $500 or more. This includes Oregon’s mini-
317.097 applies to projects involving households earn-                             mum tax. See ORS 314.505 to 314.525 and supporting 
ing less than 80 percent of the area median income.                                administrative rules.
Qualified semiconductor company research credit                                    If you don’t make estimated payments as required, you 
HB 2009 (2023) allows a qualified semiconductor com-                               may be subject to interest on underpayment of estimated 
pany  to  claim a  tax  credit  based  on  research  and                           tax (UND). Refer to Form OR-37 if you have an under-
development expenses. The qualifying research and                                  payment of estimated tax.
development expenses are determined based on IRC 41. 
Oregon allows a credit equal to 15 percent of the qualify-                         Payment due dates
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 
on employee numbers. A portion of the tax credit is                                • Calendar year filers: April 15, June 15, September 15, 
refundable if the taxpayer has fewer than 3,000 employ-                            and December 15.
ees. The exact refund percentage depends on how many                               • Fiscal year filers: The 15th day of the 4th, 6th, 9th, and 
employees the taxpayer has.                                                        12th months of your fiscal year.
                                                                                   • 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.
150-102-020-1 (Rev. 10-17-23)                                                    3                                 2023 Form OR-20 Instructions

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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
payments. ments of $3,500* for the third quarter and $1,500 for the
fourth quarter.
You can make EFT payments through Revenue Online or
through your financial institution. To learn more about *$1,000 for the first-quarter underpayment, plus $1,000
Revenue Online or to make an EFT payment, visit www. for the second-quarter underpayment, plus $1,500 for the
oregon.gov/dor. If you pay by EFT, don’t send Form required third-quarter installment equals $3,500.
OR-20-V, Oregon Corporation Tax Payment Voucher.
Mail. If paying by mail, send each payment with a Filing information
Form OR-20-V, payment voucher, to: Oregon Department
of Revenue, PO Box 14950, Salem OR 97309-0950. Who must file with Oregon?
Include on your check: Corporations that are doing business in Oregon, or with
income from an Oregon source, are required to file an
• Federal employer identification number (FEIN). Oregon corporation tax return. If you have tangible
• Tax year beginning and ending dates. or intangible property or other assets in Oregon, any
• Contact phone. income you receive from that property or assets is Ore-
gon source income. Public Law (Pub.L.) 86-272 provides
Estimated tax payments’ worksheet exceptions to the Oregon filing requirement for certain
(Keep for your records—don’t file with your payment.) corporations doing business in Oregon.
Exemption for emergency service providers. An out-
1. Oregon net income expected in 1.
of-state emergency service provider is exempt from tax
upcoming tax year.
when operating solely for the purposes of performing
2. Tax on Oregon net income (see 2. disaster or emergency-related work on critical infrastruc-
Appendix B). ture. Disaster or emergency-related work conducted by
3. Subtract tax credits allowable 3. an out-of-state business may not be used as the sole basis
in upcoming tax year. Tax for determining that a corporation is doing business in
credits can’t be used to reduce Oregon.
minimum tax. 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 Oregon has two types of corporate taxes: excise and
return is $500 or more, you may income. Excise tax is the most common. Most corpora-
be subject to UND.
tions don’t qualify for Oregon’s income tax.
5. Amount of each payment. 5.
Excise tax is a tax for the privilege of doing business
(Divide line 4 by the number of
in Oregon. It’s measured by net income. Excise tax fil-
payments you need to make.
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
Note: All interest on obligations of the 50 states and their
payments’ worksheet.
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
150-102-020-1 (Rev. 10-17-23) 4 2023 Form OR-20 Instructions

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prevent the states from taxing the interest in question. A      • Included in a consolidated federal return;
taxpayer has the burden of showing that Oregon can’t            • Unitary; and
tax the interest on a federal obligation.                       • At least one of the affiliated corporations doing busi-
                                                                ness in Oregon or have Oregon-source income.
Income tax is for corporations not doing business in 
Oregon, but with income from an Oregon source. Income           Note: S corporations can’t be included in consolidated 
tax filers aren’t subject to corporate excise or minimum        federal returns. IRC §1361(b) provides that a corporation 
tax. Corporation income tax laws are in Chapter 318 of          that’s a Qualified Subchapter S Subsidiary (QSSS) isn’t 
the Oregon Revised Statutes.                                    treated as a separate corporation. All income, deduc-
                                                                tions, and credits of the QSSS will be treated as belong-
What form do I use?                                             ing to the parent S corporation.
Except  as  provided  by  Pub.L.  86-272,  all  corporations    Unitary business. A business that has, directly or indi-
doing business in Oregon must file Form OR-20, and              rectly between members or parts of the enterprise, either 
are subject to the minimum excise tax. Any corporation          a sharing or an exchange of value shown by:
doing business in Oregon is also required to register           • Centralized management or a common executive force;
with the Secretary of State, Corporation Division. See          • Centralized administrative services or functions result-
www.  sos.oregon.gov.                                           ing in economies of scale; or 
“Doing business” means carrying on or being engaged             • Flow of goods, capital resources, or services showing 
in any profit-seeking activity in Oregon. A taxpayer            functional integration.
having one or more of the following in this state is clearly    Unitary insurance affiliates. If a unitary insurance 
doing business in Oregon:                                       affiliate has a separate return filing requirement, it’s 
• A stock of goods.                                             excluded from the Oregon return of the consolidated 
• An office.                                                    group. The insurance affiliate is treated as if it’s a non-
• A place of business (other than an office) where affairs      unitary affiliate of the consolidated group by subtract-
of the corporation are regularly conducted.                     ing income or adding losses to federal taxable income. 
• Employees or representatives providing services to cus-       The other members of the insurer’s federal consolidated 
tomers as the primary business activity (such as account-       group receive a 100 percent dividend-received deduction 
ing or personal services), or services incidental to the        for any dividend received from the insurer. See “Addi-
sale of tangible or intangible personal property (such as       tions” and “Subtractions” below.
installation, inspection, maintenance, warranty, or repair      Separate federal returns. Any corporation that files 
of a product).
                                                                a separate federal return must file a separate Oregon 
• An economic presence through which the taxpayer 
                                                                return  if  it’s  doing  business  in  Oregon  or  has  income 
regularly takes advantage of Oregon’s economy to pro-
                                                                from an Oregon source. However, see special filing 
duce income.
                                                                requirements for REITs.
Corporations not doing business in Oregon, but with 
                                                                A corporation subject to Oregon taxation must also file 
income from an Oregon source, must file Form OR-20-INC. 
                                                                a separate Oregon return if it was included in a consoli-
Most corporations don’t fall within Oregon’s income tax 
                                                                dated federal return, but wasn’t unitary with any of the 
provisions.
                                                                other affiliates. To determine Oregon taxable income, 
Corporations not doing business in Oregon, and with             begin with taxable income from the consolidated fed-
no  Oregon  source  income,    even  if  incorporated  in  or   eral return and use Oregon additions or subtractions to 
registered to do business in the state, aren’t subject to the   remove the nonunitary affiliates.
excise, income, or minimum tax, and aren’t required to 
file a corporation tax return.                                  E-file
Important: Don’t file a Form OR-20 unless you’re required       If you’re required to e-file with the IRS, you’re also 
to do so. Filing an unnecessary return may result in a bill-    required to e-file for Oregon (ORS 314.364). We accept 
ing for minimum tax.                                            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 
                                                                accept e-filed returns for tax year 2023, and will continue 
Consolidated federal returns (ORS 317.705–317.725). If a 
                                                                accepting returns for 2022 and 2021. 
corporation is a member of an affiliated group of corpo-
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 
150-102-020-1 (Rev. 10-17-23)                                 5                                      2023 Form OR-20 Instructions

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tax return, unless a waiver request has been approved by      Don’t amend your Oregon return if you amend the fed-
us prior to the filing of the paper return.                   eral return to carry a net operating loss back to prior 
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 of your amended 
ing your return.                                              Form OR-20, enter the net excise tax per the original 
For a list of software vendors or for more information,       return or as previously adjusted. Don’t include any pen-
search “e-filing” at   www.oregon.gov/dor.                    alty 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. 
Mail this separately from your current year’s return.         Pay all tax and interest due with your amended return 
                                                              or within 30 days of receiving a billing notice from us to 
If you don’t amend or send a copy of the federal or other 
state report, we have two years from the date we’re noti-     avoid being charged a 5 percent late payment penalty.
fied of the change to issue a deficiency notice. To receive 
a refund you must file a claim for refund of tax within       Protective claims
two years of the date of the federal or other state report.   Don’t file an amended return as a protective claim. 
                                                              Use Oregon Form OR-PCR,      Protective Claim for Refund, 
Amended returns                                               150-101-184, when your claim to a refund is contingent 
Oregon doesn’t have an amended return form for corpo-         on a pending court decision or legislative action. Notify 
rations. Use the form for the tax year you’re amending        us within 90 days of the final determination by filing an 
and check the amended box.    Always use your current         amended return. Don’t file an amended return before 
address. If your address has changed, don’t use your old      the pending action is final. 
address or our system will revert your current address 
to the old address.
                                                              Special filing requirements
Fill in all amounts on your amended return, even if 
they’re the same as originally filed. If you’re amend-
                                                              Agricultural or horticultural cooperatives
ing to change additions, subtractions, or credits, include 
detail of all items and amounts, including carryovers.        For purposes of the  corporate minimum tax only, the 
If you change taxable income by filing an original or         Oregon sales of agricultural or horticultural coopera-
amended federal or other state return, you must file an       tives doesn’t include sales representing business done 
amended Oregon return within    90 days of when the           with or for the cooperative’s members. If you’re an agri-
original or amended federal or other state return is filed    cultural or horticultural cooperative, check the box in the 
(ORS 314.380). Include a copy of your original or amended     header for Ag co-op. 
federal or other state return with your amended Oregon 
return and explain the changes.                               Your Schedule OR-AP, part 1, must show     all sales 
                                                              in Oregon and elsewhere to correctly compute your 
If  you  filed  Form  OR-20-S,  and  later  determined  you   apportionment percentage. However, for minimum tax 
should file Form OR-20, amend your return using Form 
                                                              purposes, show the amount of sales not done with or 
OR-20 and check the amended box. 
                                                              for members of the co-op in the header of the Sched-
You may make payments online for your amended                 ule OR-AP, under the heading “Describe the nature and 
return at   www.oregon.gov/dor.                               provide the location(s) of your Oregon business activi-
Don’t  make payments  for amended returns with EFT.           ties.” Include the description “Sales not done with or for 
This also applies to e-filed amended returns. For paper       members of the co-op.”
returns, you may pay online or include a check or money 
order with your return. For e-filed returns, you may pay      Note: Generally, co-ops filing federal Form 1120-C 
online or send a check or money order separately. If you      begin the Oregon return with line 25a from the federal 
mail your payment separate from your return, write            return (not line 28). You are also allowed a subtraction 
“Amended”  on  the  payment  and  include  a  completed       for patronage dividends, which is taken  on Schedule 
Form OR-20-V with the amended box checked.                    OR-ASC-CORP, code number 379 (ORS 317.010).
150-102-020-1 (Rev. 10-17-23)                               6                               2023 Form OR-20 Instructions

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Broadcasters                                                   membership dues, fees, and assessments from member-
                                                               owners of residential units in the particular condomin-
SB 136 (2021) defines broadcasting sales and repeals the       ium or subdivision involved. Oregon follows the federal 
interstate broadcaster provisions applicable before Janu-      definition of nonexempt function income. 
ary 1, 2020. 
                                                               Don’t file Form OR-20 if you don’t have nonexempt 
For tax years beginning on or after January 1, 2020,  tax-     function income for Oregon tax purposes. Only file a 
payers with broadcasting sales must use an audience/           copy of your federal Form 1120-H with us.
subscriber factor, as demonstrated through the  use of 
third-party ratings information or the taxpayer’s books,       File an Oregon Form OR-20, with a copy of federal Form 
papers, records, or memoranda, to source their broad-          1120-H, if the association has taxable income. Homeown-
casting sales to Oregon. Taxpayers with broadcasting           ers  association taxable  income  for  Oregon  is  generally 
sales may elect to apply their audience/subscriber factor      the same as for federal purposes. It’s gross nonexempt 
to all their gross receipts except sales of real property      income less directly-related deductions, less the specific 
and tangible personal property. In certain circumstances,      $100 deduction. However, net capital gains are included 
taxpayers may source receipts from advertising on or           in the computation and receive no special treatment.
licensing to subscription services using a statutorily pre-    An association filing Oregon Form OR-20 is subject to 
scribed 0.6% apportionment factor. See SB 136 for more         the greater of calculated excise tax or Oregon minimum 
information.                                                   tax. For minimum tax purposes, include in “Oregon 
                                                               sales” only Oregon nonexempt function income.
Exempt organizations
If  you’re  an  exempt  organization  under  IRC  §§501(c)     Insurers
through (f), 501(j), 501(n), 521, or 529, you’re exempt from   Insurers that have a separate return filing require-
Oregon corporation taxes [ORS 317.080 (1)–(8)]. Apply to       ment under ORS 317.710(5) and (7) can’t be included in 
the IRS for exempt status, don’t apply to us. Two excep-       an Oregon consolidated return. Instead, they generally 
tions are nonprofit homes for the elderly and people’s         determine Oregon corporate excise tax  on a  separate 
utility districts established under ORS Chapter 261.           basis. The remaining affiliates in the Oregon consoli-
                                                               dated  return  compute  their  modified  federal  consoli-
If you’re exempt from Oregon tax and don’t have unre-
                                                               dated taxable income after exclusion of the insurer with 
lated business taxable income (UBTI) as defined in IRC 
                                                               the separate return filing requirement. Also, the Oregon 
§512, don’t file an Oregon tax return. UBTI is gross unre-
                                                               consolidated return receives a 100 percent dividends-
lated business income less allowable deductions, includ-
                                                               received deduction if a dividend is paid by an insurer 
ing a special $1,000 deduction.
                                                               that has a separate return filing requirement. See Form 
If you have UBTI, file Form OR-20 and include a copy           OR-20-INS and instructions for more information about 
of your federal Form 990-T. Organizations exempt from          insurance company filing requirements.
federal tax, but not exempt from Oregon tax, must also 
file Form OR-20 and include a copy of federal Form 990-T.      Interest charge domestic international sales 
An exempt organization filing Oregon Form OR-20 is             corporations (IC-DISCs) (ORS 317.283, 317.635)
subject to the greater of calculated excise tax based on       If your corporation is an IC-DISC, file Form OR-20 and 
UBTI apportioned or allocated to Oregon or Oregon              check the IC-DISC checkbox at the top of the form.
minimum tax.  For  minimum  tax  purposes,  include  in 
“Oregon sales” only gross unrelated business income            • An IC-DISC formed on or before January 1, 2014 is 
apportioned or allocated to Oregon. Tax-exempt gross           exempt from minimum tax. Complete your Form 
income isn’t included.                                         OR-20 using the instructions below.
                                                               • Commissions received by an IC-DISC formed on or 
Note: Some religious organizations that qualify under          before January 1, 2014 are taxed at 2.5 percent. 
IRC § 501(d) may file as partnerships.                         • An IC-DISC formed after January 1, 2014 isn’t exempt 
                                                               from minimum tax. However, it’s disregarded to the 
Homeowners associations                                        extent it has transactions with related parties. If you 
                                                               have transactions other than with related parties, com-
A homeowners association organized and operated 
                                                               plete your Form OR-20 as a normal corporation filer, 
under IRC §528(c) may elect to be treated as a tax-exempt 
                                                               and check the IC-DISC checkbox in the return header.
organization (ORS 317.080). The association must make 
the election no later than the time prescribed by law          The Oregon IC-DISC return is due by the 15th day of the 
for filing the return. A copy of the federal Form 1120-H       month following the due date of the federal return. For 
filed with the IRS will constitute this election when filed    example, a calendar-year federal Form 1120-IC-DISC is 
with us. Tax-exempt status will only exempt the asso-          due nine months after the year-end (September 15). The 
ciation from tax on the exempt function income, such as        Oregon return for the IC-DISC is due October 15. 
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If the 15th falls on a Saturday, Sunday, or legal holiday, Foreign LLCs are identified as unincorporated associa-
the due date is the next business day. No extensions are tions organized under the laws of a state other than Ore-
allowed for IC-DISC returns per federal and Oregon laws. gon, or a foreign country. Oregon’s definition of a foreign
LLC includes an unincorporated association organized
Form OR-20 line instructions for IC-DISCs under the laws of a federally recognized American
(formed on or before January 1, 2014) Indian tribe, no matter when organized.

Important: Check the IC-DISC box at the top of the form. Political organizations
Line 1. Taxable income from the U.S. Corporation Income Political organizations (for example, campaign commit-
Tax Return. Enter the “total commissions received” tees and political parties) normally don’t pay state or fed-
reported for federal income tax purposes [federal eral taxes. However, income earned from investments is
Form 1120-IC-DISC, Schedule B, column c, lines 1c, 2k, and taxable. Examples include interest earned on deposits;
3g]. Carry this amount to: dividends from contributed stock, rents, or royalties; and
• Line 3—Income after additions; gains from the sale of contributed property. We follow
• Line 5—Income before net loss deductions; and the federal definitions of political organizations and tax-
• Line 9—Oregon taxable income. able income.
Line 10. Calculated excise tax. Multiply the amount A political organization that isn’t incorporated and hasn’t
from line 9 by 2.5 percent. Enter the result. Carry this elected to be taxed as a corporation should file a personal
amount to: income tax return under ORS 316.277(2).
• Line 14—Tax; For more information, including how to file your return,
• Line 16—Tax before credits; go to www.oregon.gov/dor/business.
• Line 20—Excise tax after credits; and
• Line 22—Net excise tax. Publicly traded partnerships
A “publicly traded partnership” is a partnership treated
Limited liability companies (LLCs) as a corporation for federal tax purposes under IRC §7704.
Oregon follows federal law in determining how an LLC The partners in a publicly traded partnership aren’t
is taxed. Federal law doesn’t recognize an LLC as a clas- subject to tax on their distributive shares of partnership
sification for federal tax purposes. An LLC business income. A publicly traded partnership taxed as a corpo-
entity must file a corporation, partnership, or sole pro- ration must file Form OR-20 if doing business in Oregon,
prietorship tax return, depending on elections made by or Form OR-20-INC if not doing business in Oregon but
the LLC and the number of members. is receiving Oregon-source income.
A multi-member LLC can be either a partnership or a
corporation, including an S corporation. A single mem- Real Estate Investment Trusts (REITs) and
ber LLC (SMLLC) can be either a corporation or a single Regulated Investment Companies (RICs)
member “disregarded entity.” Refer to federal law for
more information and requirements. A REIT or RIC that isn’t included in a federal consoli-
dated return based on the provisions of IRC §1504(b)(4)
An LLC taxed as a C corporation must file Form OR-20 must be included in the Oregon consolidated return.
if doing business in Oregon, or Form OR-20-INC if not These REITs or RICs are subject to the provisions of
doing business in Oregon but receiving Oregon-source ORS 317.715 and supporting administrative rules. For
income. The LLC must file Form OR-20-S if the entity apportioning taxpayers, factors from the REIT or RIC are
files federal Form 1120-S. included in the apportionment calculation of the consoli-
dated Oregon return.
An LLC taxed as a partnership must file Form OR-65,
Oregon Partnership Return, if doing business in Oregon, A REIT or RIC that isn’t required to be included in an
or if receiving Oregon-source income, or if it has any Oregon consolidated return is subject to tax under ORS
Oregon resident members. If the LLC has a corporate chapter 317 or 318 and calculates their Oregon apportion-
member, the member is taxed on its share of the LLC’s ment factors and Oregon net income in the same manner
Oregon income. as a corporation with a separate filing requirement under
ORS 317.710. REITs or RICs doing business in Oregon are
If an LLC is part of a corporation’s overall business oper-
subject to Oregon minimum tax. Business trusts that
ations and is treated as a partnership, include the corpo-
qualify as REITs filing separate returns aren’t allowed
ration’s ownership share of LLC property, payroll, and
an Oregon deduction for net losses of prior years.
sales in the corporation’s apportionment percentage cal-
culation on Schedule OR-AP (ORS 314.650 and support- Distributions from a REIT or RIC to its shareholders are
ing administrative rules). treated the same as distributions from a corporation to
150-102-020-1 (Rev. 10-17-23) 8 2023 Form OR-20 Instructions

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its shareholders for purposes of ORS chapters 316, 317, — Contact phone.
and 318. ° To speed up processing of your return:
— Don’t use Form OR-20-V payment voucher.
Real Estate Mortgage Investment Conduits — Don’t staple payment to the return.
(REMICs) — Don’t send cash or postdated checks.
— Don’t use red or purple or any gel ink.
A REMIC isn’t subject to Oregon tax; the income is tax- • Assembling your return. Assemble your Oregon
able to the holders of the REMIC’s interests under ORS return forms in the following order:
Chapter 316, 317, or 318, whichever is applicable. A
REMIC must file Form OR-20-INC if it receives prohib- 1. Form OR-20, Oregon Corporation Excise Tax Return;
ited transaction income from Oregon sources. 2. Schedule OR-AP, Apportionment of Income for Corpo-
rations and Partnerships;
All REMICs required to file must include a complete 3. Schedule OR-AF, Schedule of Affiliates;
copy of federal Form 1066. The REMIC must also include 4. Schedule OR-PI, Schedule of Partnership Information;
a federal Schedule Q for each residual interest holder for 5. Schedule OR-ASC-CORP, Oregon Adjustments;
each quarter of the tax year. Report the amount of net 6. Form OR-37, Underpayment of Oregon Corporation
income from prohibited transactions from federal Form Estimated Tax;
1066 Schedule J (ORS 314.260). 7. Form OR-DRD, Dividends-Received Deduction;
8. Form OR-24, Like-Kind Exchanges/Involuntary
Conversions;
Filing checklist
9. Schedule OR-FCG-20, Farm Liquidation Long-Term
Rounding to whole dollars. Enter amounts on the return Capital Gain Tax Adjustment;
and accompanying schedules as whole dollars only. 10. Other Oregon statements;
Example: $4,681.55 becomes $4,682; and $8,775.22 becomes 11. Oregon credit forms including notice of credit
$8,775. transfers;
12. Copy of federal tax return and schedules; and
• Due date of your return. Returns are due by the 15th Form 7004, Federal extension.
day of the month following the due date of your fed-
eral corporation return. When the 15th day falls on a
Saturday, Sunday, or legal holiday, the due date is the Mailing Addresses
next business day.
Tax-due returns, with or without payment, mail to:
• Extensions. See the instructions below for the exten- Oregon Department of Revenue
sion checkbox. When you file, include the extension as PO Box 14790
the final page of your return. Salem OR 97309-0470
• Payments. (Do NOT include a payment voucher.)
° Payments received after the original due date will be Refunds or no tax-due returns, mail to:
applied first to penalty, then to interest, and then to Oregon Department of Revenue
tax [ORS 305.265(13)]. PO Box 14777
° Estimated payments and prepayments. Identify all Salem OR 97309-0960
estimated payments claimed by completing Sched- Check or money order payments only, mail to:
ule ES on page 5 of your return. List all payments Oregon Department of Revenue
that were submitted prior to filing your return. PO Box 14950
Include the corporation name and FEIN if a payment Salem OR 97309-0950
was made by an affiliate of the filing corporation. (Include Form OR-20-V payment voucher.)
Missing or incomplete information on payments
made by an affiliate could result in a billing.
° Online payments. You may pay online for any Form instructions
return at www.oregon.gov/dor. Search “payments.”
° Making electronic payments with your e-filed Heading and checkboxes
return. We accept electronic payments when e-filing
• OR-FCG-20 checkbox. A reduced tax rate is available
your original return.
if you sold or exchanged capital assets used in farm-
° Making check or money order payments with your
ing. Complete Schedule OR-FCG-20 and check the box
paper return. Make your check or money order pay-
in the header of the form.
able to Oregon Department of Revenue. Write the
following on your check or money order: • Extension checkbox. For an Oregon extension when
— Filer FEIN. you’re also filing for a federal extension: Send a copy
— Tax year beginning and ending dates. of the federal extension with the Oregon return when

150-102-020-1 (Rev. 10-17-23) 9 2023 Form OR-20 Instructions

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you file. Check the extension checkbox on your Ore-               ° The corporation reported deferred gain on a federal 
gon return and include a copy of the extension after all        Form 8824;
other enclosures.                                                 ° All or part of the property exchanged or given up 
  For an “Oregon only” extension: Answer question 1 on          was located in Oregon; and
federal extension Form 7004, write “For Oregon Only ”             ° All or part of the acquired property was located out-
at the top of the form, and include it with your Oregon         side of Oregon.
return when you file. Check the    extension checkbox           For a more detailed explanation, see ORS 314.650 and 
on the Oregon return.                                           314.665 and supporting administrative rules regarding 
  The Oregon extension due date is the 15th day of the          apportionment of deferred gain.
month following the federal extension’s due date. Don’t       • IC-DISC checkbox.  Check this box if you are an IC-
send the extension before you file your Oregon return.
                                                                DISC regardless of what date you were formed. See 
  More time to file doesn’t mean more time to pay your          “Special filing requirements” for more information.
tax. To avoid penalty and interest, pay your tax due 
                                                              • Ag co-op checkbox. Check this box if your corporation 
online, or by mail with Form OR-20-V, by the original 
                                                                qualifies as an agricultural or horticultural coopera-
due  date  of  your  return.  Note:  Filing  Form  OR-20-V 
isn’t an extension of time to file your tax return.             tive and you’re determining Oregon sales for mini-
                                                                mum tax purposes differently than the Oregon sales 
  If you’re making an extension payment by mail, send           reported on Schedule OR-AP, part 1. See “Special filing 
the payment to: Oregon Department of Revenue, PO                requirements” for more information.
Box 14950, Salem OR 97309-0950.
                                                              • Federal Form 8886 checkbox and reportable transac-
  Include on your check:                                        tions. If you’re required to report listed or reportable 
  ° FEIN.                                                       transactions to the IRS on federal Form 8886, you must 
  ° “Extension.”                                                check this box. We’ll assess penalties if you don’t com-
  ° Tax year beginning and ending dates.                        ply with this requirement.
  ° Contact phone.
                                                              • Global intangible low-taxed income (GILTI) included 
• Form OR-37 checkbox.        If you have an underpayment       on federal return. If you included GILTI on your federal 
of estimated tax, you must include a completed Form             return, check this box.
OR-37. Check the Form OR-37 box in the header of your 
return.                                                       • Accounting period change checkbox. Check this box 
                                                                only if both of the following apply:
  Use Form OR-37 to:
                                                                  ° The excise tax return covers a period of less than 12 
  ° Calculate the amount of underpayment of estimated 
                                                                months; and
tax;
                                                                  ° The short-period return is due to a qualified change 
  ° Compute the amount of interest you owe on the 
                                                                in accounting period per IRC §§441 to 444.
underpayment; or
  ° Show you meet an exception to the payment of                Note: A short-period return doesn’t automatically con-
interest.                                                       stitute a qualified change in accounting period. A tax-
• REIT/RIC checkbox. If you participated in a REIT or           payer that isn’t in existence for the entire year shouldn’t 
RIC, you must check the appropriate box in the header           check this box. This includes subsidiaries that join or 
area of the Oregon tax return.                                  leave a consolidated filing group, and newly formed or 
                                                                dissolved corporations.
• Amended checkbox. Check the amended box if this is 
an amended return.                                              If you file a short-period return due to a qualified 
                                                                change in accounting period and you’re subject to 
• Form OR-24 checkbox.        Corporations may  defer,          the minimum tax, your minimum tax shall be appor-
for Oregon tax purposes, all gains realized in the              tioned as follows:
exchange of like-kind property and involuntary con-
versions under IRC §1031 or §1033, even though the              Annualize Oregon sales by multiplying actual Oregon 
replacement property is outside Oregon. Oregon will             sales by 12 and dividing by the number of months in 
tax the deferred gain when it’s included in federal tax-        the short period. Use the minimum tax table in Appen-
able income.                                                    dix B to determine minimum tax on annualized Ore-
                                                                gon sales.
  Include a copy of your Oregon Form OR-24, Like-Kind 
Exchanges/Involuntary Conversions,  150-800-734, with           Apportion  the  minimum  tax  determined  above  by 
your Oregon return and check the Form OR-24 box if              multiplying by the total number of months in the short 
all of the following apply:                                     period and dividing it by 12.
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• Alternative apportionment checkbox. See Appendix             definition of a subsidiary in an affiliated group or a par-
C for complete information. Check this box if you have         ent-subsidiary controlled group, see federal Form 1120,      
included a request with your return.                           Schedule K.
Name. Generally, a consolidated Oregon return is filed         Question G. Enter the total number of corporations 
in the name of the common parent corporation. If the           doing business in Oregon that are included in this return.
parent corporation isn’t doing business in Oregon, file 
the return in the name of the member of the group hav-         Question L. Utility or telecommunications compa-
ing the greatest presence in Oregon. “Having the great-        nies. Taxpayers primarily engaged in utilities or tele-
est presence” means that the member has the largest            communications may elect to apportion income using a 
Oregon property value as determined under ORS 314.655          double-weighted sales factor formula (ORS 314.280 and 
(see Schedule OR-AP).                                          supporting administrative rules). Check the box if mak-
                                                               ing this election.
• Legal  name.    Enter  the corporation’s  current  legal 
name as set forth in the articles of incorporation or          Question M. PL86-272 protected affiliate(s). Check this 
other legal document.                                          box only if you or an affiliate included in this return 
                                                               claim Oregon sales are protected from Oregon taxation 
• FEIN. Enter the FEIN of the corporation named as the 
                                                               because of Public Law 86-272.
filer on the consolidated Oregon return.
• DBA/ABN. If the corporation is doing business under          Question N. Total Oregon sales. 
a different name, for example, DBA or ABN, enter that          • Apportioned returns. Enter the amount of Oregon 
name.                                                          sales from Schedule OR-AP, line 22(a) and OAR 
• Current address. Always enter the corporation’s cur-         150-317-0540.
rent address. If the address for the year you’re filing        • Nonapportioned returns. Enter the amount of sales 
has changed, don’t use the old address or our system           as defined by ORS 314.665. Generally, C corporations 
will revert your current address to the old address.           doing business only within Oregon will calculate Ore-
                                                               gon sales by adding:
Questions
                                                                 ° Gross receipts from sales of inventory (less returns 
Questions A–C. Complete only if this is your first return      and allowances), equipment, and other assets;
or the answer changed during the tax year.                       ° Gross rent and lease payments received; and
Question D. Refer to the current list of North American          ° Gross receipts from the performance of services.
Industry Classification System (NAICS) codes  found                 Note: (This is a non-exclusive list.)
with your federal tax return instructions. Only enter the 
                                                               Generally, for purposes of determining minimum tax, 
code if this is your first return, the current code is dif-
                                                               the calculation for Oregon sales includes gross business 
ferent than you reported last year, or your code begins 
                                                               income amounts from federal Form 1120, lines 1c and 5 
with “111” or “112”.
                                                               through 10. Include positive numbers only.
Question E(1). Check this box if you filed a consolidated 
federal return. Include a list of the corporations included 
in the consolidated federal return.                            Line instructions

Question E(2). Check this box if you filed a consolidated      Line 1. Taxable income from U.S. corporation income 
Oregon return. Complete Schedule OR-AF,     Schedule of        tax return. Enter the taxable income reported for federal 
Affiliates, and list only the corporations included in the     income tax purposes before net operating loss or special 
consolidated Oregon return that:                               deductions (federal Form 1120, line 28).
• Are doing business in Oregon; or
• Have income from Oregon sources.                             Additions
Question E(3). Check this box if it applies. Include a         Line 2. Total additions from Schedule OR-ASC-CORP, 
list of corporations included in the consolidated federal      Section A. The amount by which any item of income is 
return that aren’t included in this Oregon return. List        greater under Oregon law than under federal law, or the 
each corporation’s name and FEIN. Note: Include a copy         amount by which any allowable deduction is less under 
of your federal return and schedules as filed with the         Oregon law than under federal law, is an addition on 
IRS.                                                           your Oregon return.
Question F.   If the filing corporation (shown above as        Use Schedule OR-ASC-CORP, Section A, to report the 
legal name) is a subsidiary in an affiliated group, or a       amount and description code of each difference. Use the 
subsidiary in a parent-subsidiary controlled group,            description code from the list in Appendix A. The total 
enter the name and FEIN of the parent corporation. For         of all additions are entered on Form OR-20, line 2.
150-102-020-1 (Rev. 10-17-23)                               11                                 2023 Form OR-20 Instructions

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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 of financial institutions is tied to the federal         ness assets when your Oregon basis is less than your 
  method.  For  taxpayers  required  to  use  the  specific       federal basis (ORS 317.356 and OAR 150-317-0420).
  write-off  method,  an  addition  must  be  made  if  the 
                                                                  • Global intangible low-taxed income (GILTI) under 
  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(w);
  decreased income (ORS 314.733). Visit our website for             ° The owner and the user aren’t included in the same 
  more information.                                               Oregon tax return; and 
                                                                    ° The separation of ownership of the intangible asset 
• Deferred gain recognized from out-of-state disposi-             from the user of the intangible asset results in either: 
  tion of property acquired in an IRC §1031 or §1033              evasion of tax or a computation of Oregon taxable 
  exchange. See ORS 317.327 regarding the computation             income that  isn’t  clearly  reflective of Oregon  busi-
  of the addition if gain or loss is recognized for federal       ness income.
  tax purposes but not taken into account in the compu-
                                                                    If the owner also files an Oregon return, the owner 
  tation of Oregon taxable income.
                                                                  of the intangible asset must report the correspond-
• Depletion (percentage in excess of cost). Add the fed-          ing royalty or other income as a negative addition on 
  eral deduction that is in excess of the Oregon allow-           Schedule OR-ASC-CORP, Section A (ORS 314.295 and 
  ance for depletion (ORS 317.374).                               supporting administrative rules).
• Depreciation differences. If your Oregon deprecia-              • Interest  income  excluded  from  the  federal  return. 
  tion isn’t the same as your federal depreciation, the           Oregon gross income includes interest on all state and 
  difference is a required modification to your Oregon            municipal bonds excluded for federal tax purposes. 
150-102-020-1 (Rev. 10-17-23)                                  12                                  2023 Form OR-20 Instructions

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Reduce the addition by any interest incurred to carry • Oregon production investment fund. Add back the
the obligations and by any expenses incurred in pro- amount of contribution for which a tax credit certifica-
ducing this interest income (ORS 317.309). tion is made that’s allowed as a deduction for federal
tax purposes (ORS 315.514).
• Inventory costs. The costs allocable to inventory are
the same as those included in IRC §263A. Differences • 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
(addition or subtraction) to federal taxable income. For
• IRC §139A federal subsidies for prescription drug
apportioning taxpayers, factors from the REIT or RIC
plans. For federal purposes, taxpayers can exclude
are included in the apportionment calculation of the
from taxable income certain federal subsidies for
consolidated Oregon return (ORS 317.010 and support-
prescription drug plans per IRC §139A. However, for
ing administrative rules).
Oregon purposes, this federally excluded income is an
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, • Unused business credits. Unused business credits
and deductions, additions, or items of income, expense, taken as a federal deduction under IRC §196 must be
gain, or loss for which the consolidated treatment is added back to federal taxable income (ORS 317.304).
prescribed. Include a schedule showing your compu-
tation of the total net loss eliminated [ORS 317.715(2)]. Line 3. Income after additions (line 1 minus line 2).

• Losses of unitary insurance affiliates. If a unitary Subtractions
insurance affiliate has a separate return filing require-
ment, they’re excluded from the consolidated Oregon Line 4. Total subtractions from Schedule OR-ASC-CORP,
return. The insurance affiliate is treated as if it’s a non- Section B. The amount by which an item of income is less
unitary affiliate of its consolidated group and the loss under Oregon law than federal law, or the amount by
(if any) is an addition (ORS 317.715). which an allowable deduc tion is greater under Oregon
law than federal law, is a subtraction on your Oregon
• Net federal capital loss deduction. If the Oregon and return.
federal capital loss deductions are different, add the
federal capital loss back to federal taxable income. The Use Schedule OR-ASC-CORP, Section B, to report the
Oregon capital loss will be deducted after subtrac- amount and description code of each difference. Use the
tions (and apportionment for corporations required to description code from the list in Appendix A. The total
apportion income) to arrive at Oregon taxable income of all subtractions are entered on Form OR-20, line 4.
(ORS 317.013 and supporting administrative rules). Subtractions include:
• Opportunity Grant Fund (auction). Any federal deduc- Bad debt reserve addition of a financial institution
•
tion for contributions for which an Opportunity Grant to the extent that the Oregon amount exceeds the
Fund tax credit certification is made must be added to
amount that’s allowed on the federal return. A sub-
federal taxable income ORS 315.643).
traction is also made if the amortization of the federal
• Oregon excise tax and other state or foreign taxes reserve is greater than the amortization of the Oregon
on or measured by net income. Oregon excise tax reserve (ORS 317.310).
may not be deducted on the Oregon return. Taxes of
• Charitable contribution. Subtract the amount by
other states or foreign governments on or measured
which a corporation must reduce its charitable contri-
by net income or profits may not be deducted on the
bution deduction under IRC §170(d)(2)(B) (ORS 317.307
Oregon return. If you subtracted these taxes on your
and OAR 150-317-0350).
federal return, you must add them back on your Ore-
gon return. However, the Oregon minimum tax and • CPAR subtraction. If you’re an owner of a partner-
local taxes, such as the Multnomah County Business ship that was subject to a partnership-level audit by
Income tax, are deductible, and aren’t required to be the IRS (or you’re an owner of a tiered partner of such
added back (ORS 317.314). a partnership), you may have to increase or decrease
150-102-020-1 (Rev. 10-17-23) 13 2023 Form OR-20 Instructions

- 14 -

your Oregon income as a result of the audit. Report an when your Oregon basis is greater than your federal
increase in income using addition code 187 or report a basis (ORS 317.356).
decrease in income using subtraction code 384, which-
• Global intangible low-taxed income (GILTI) under
ever is applicable. Use these codes even if another
IRC Section 250. Oregon allows an 80 percent subtrac-
code is assigned for the specific type of increased or
tion of GILTI amounts under IRC Section 951A that are
decreased income (ORS 314.733). Visit our website for
included in your Oregon income. Report the Oregon
more information.
subtraction on Schedule OR-ASC-CORP using code
• Deferred gain recognized from out-of-state disposi- number 381. Don’t use Form OR-DRD for this subtrac-
tion of property acquired in an IRC §1031 or §1033 tion (ORS 317.267).
exchange. See ORS 317.327 regarding the computa-
• IC-DISC commission payments. For tax years begin-
tion of the subtraction if gain or loss is recognized for
ning on or after January 1, 2013, a deduction is allowed
federal tax purposes but not taken into account in the
for commission payments made to an IC-DISC if the
computation of Oregon taxable income.
IC-DISC was formed on or before January 1, 2014
• Depletion. Subtract the Oregon allowance for deple- (ORS 317.283 and 317.635).
tion that is in excess of the federal deduction for deple-
• Income of nonunitary corporations. Net income of
tion (ORS 317.374).
nonunitary corporations included in a consolidated
• Depreciation differences. If your Oregon deprecia- federal return must be eliminated from the Oregon
tion isn’t the same as your federal depreciation, the return. Net income includes the separate taxable
difference is a required modification to your Oregon income, as determined under Treasury Regulations
return (ORS 317.301). Use Schedule OR-DEPR to deter- adopted for IRC §1502, and any deductions, additions,
mine the Oregon modification. or items of income, expense, gain, or loss for which
consolidated treatment is prescribed. Include a sched-
• Dividend deduction. A 70 percent deduction is
ule showing computation of the total net income elimi-
allowed for qualifying dividends regardless of geo-
nated [ORS 317.715(2)].
graphic source. An 80 percent deduction is allowed for
dividends received from corporations whose stock is • Income of unitary insurance affiliates. If a unitary
owned 20 percent or more. Use Oregon Form OR-DRD insurance affiliate has a separate return filing require-
for computing the Oregon dividend deduction and ment, they’re excluded from the consolidated Oregon
include it with your return (ORS 317.267). return. The insurance affiliate is treated as if it’s a
nonunitary affiliate of its consolidated group and any
• Energy conservation payments. Any amount received
income is a subtraction (ORS 317.715).
as a cash payment for energy conservation measures
is exempt from Oregon excise tax (ORS 469.631 to • Income on a composite return. A corporate owner of
469.687). Subtract any amount that’s included in fed- a pass-through entity (PTE) may subtract its share of
eral taxable income (ORS 317.386). distributive income that has already been reported on
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
a federal credit (ORS 317.303). • Inventory costs. The costs allocable to inventory are
the same as those included in IRC §263A. Differences
• Federal investment tax credit on certain assets. If you
in depreciation and depletion allocable to inventory
take a federal tax credit on certain assets, and your
result in a modification [ORS 314.287(3)].
federal basis is less than your Oregon basis, you must
recalculate the gain or loss on disposal of those assets • IRC Section 245A foreign-source portion dividends.
and subtract the difference (ORS 317.356). Oregon allows a 100 percent subtraction of the foreign-
source portion of dividends from certain foreign cor-
• Film production labor rebate. Subtract the amount
porations under IRC Section 245A. The subtraction is
received as a labor rebate that’s included in federal tax-
allowed only if the amount is included in federal tax-
able income (ORS 317.394).
able income reported on line 1 of your Oregon return.
• Foreign derived intangible income (FDII) under IRC Generally, the federal deduction amount is reported
Section 250. Oregon is connected with the FDII deduc- on federal Form 1120, Schedule C, line 13. Report your
tion on your federal return. Generally, the federal deduc- Oregon subtraction on Schedule OR-ASC-CORP using
tion amount is reported on federal Form 8993, Part IV, code number 383. Don’t use Form OR-DRD for this
line 8. Report your Oregon subtraction on Schedule OR- subtraction (ORS 317.267).
ASC-CORP using code number 382. Don’t use Form
• Losses from outside the United States. Subtract losses
OR-DRD for this subtraction [SB 851 (2019)].
from sources outside the United States, as defined in
• Gain or loss on the sale of depreciable property. The IRC §862, not included in federal taxable income under
difference in gain or loss on the sale of business assets IRC §§861 to 864 (ORS 317.625).
150-102-020-1 (Rev. 10-17-23) 14 2023 Form OR-20 Instructions

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• Manufactured dwelling park tenant payments made consolidated Oregon return (ORS 317.010 and support-
under ORS 90.505 to 90.840 to compensate a tenant for ing administrative rules).
costs incurred due to the closure of the park may be
• Sale of manufactured dwelling park. The net gain
subtracted (ORS 317.092).
attributable to the sale of a manufactured dwelling
• Marijuana business expenses. ORS 317.363 allows park to a tenant’s association, facility purchase asso-
Oregon taxpayers filing a corporate excise or income ciation, or tenant’s association supported nonprofit
tax return to deduct business expenses otherwise organization is exempt from tax (see note following
barred by IRC §280E if the taxpayer is engaged in mar- ORS 317.401).
ijuana-related activities authorized by ORS 475C.005 to
• Taxes paid to a foreign country. You may subtract
475C.525, or ORS 475C.700 to 475C.919.
from federal taxable income the taxes paid to a foreign
• Oregon Investment Advantage. To qualify, facilities country upon the payment of interest or royalties aris-
must be certified by the Oregon Business Develop- ing from sources within such foreign country, if such
ment Department (dba Business Oregon). For more taxes are not deductible in arriving at federal taxable
information about the program or to get an applica- income and if the interest or royalties are included in
tion, visit www.oregon.gov/biz. This applies to excise arriving at Oregon taxable income [ORS 317.314.(3)].
tax filers only.
• Work opportunity credit wages not deducted on the
How is the subtraction computed? Multiply the Ore- federal return. Subtract the amount of wages that
gon taxable income figure (Form OR-20, line 9) as com- weren’t deducted on the federal return because the
puted without applying this subtraction by the sum of: work opportunity credit was claimed (ORS 317.303).
° 50 percent of the ratio of the payroll from the cer-
tified facility over the corporation’s total payroll Line 5. Income before net loss deduction (line 3 minus
within Oregon; and line 4).
° 50 percent of the ratio of the average value of prop-
erty from the certified facility over the corporation’s Line 6. Net loss deduction.
total average value of property within Oregon. • Enter the deduction on line 6 if taxable only by Ore-
Corporations that do business both inside and outside gon. Enter as a positive number.
of Oregon and complete Schedule OR-AP must claim • Enter the deduction on Schedule OR-AP, part 2, line
the subtraction on Schedule OR-AP, part 2, line 10b. 10a if taxable both in Oregon and another state.
Corporations with activity only in Oregon (that don’t • Include a schedule showing your computations.
apportion income and don’t use Schedule OR-AP) • A net loss is the amount determined under IRC Chap-
claim the subtraction on Schedule OR-ASC-CORP ter 1, Subtitle A, with the modifications specifically
using subtraction code 342. (ORS 317.391). prescribed under Oregon law.
• The Oregon deduction is the sum of unused net losses
Note: There is no subtraction code associated with assigned to Oregon for preceding taxable years.
Schedule OR-AP for apportioning taxpayers. Subtrac- • A net operating loss carryforward is required to be
tion code 342 is only used on Schedule OR-ASC-CORP reduced by the entire Oregon net income of interven-
for taxpayers who do not apportion income. ing tax years [ORS 317.476(4)(b)].
• Patronage dividends (cooperatives only). Coopera- • Net losses can be carried forward up to 15 years.
tives filing federal Form 1120-C may subtract patron- • Oregon doesn’t allow net losses to be carried back.
age dividends that are included in Oregon taxable • For losses, and built-in losses occurring before a
income (ORS 317.010). change in ownership [separate return loss year (SRLY)
limitations], Oregon is tied to the federal limitations
• Psilocybin business expenses. ORS 317.363 allows (IRC §382 and §384; ORS 317.476 and 317.478).
Oregon corporation excise and income tax filers to • The total net loss deduction on a consolidated Oregon
subtract certain business expenses otherwise barred
return is the sum of the net losses available to each
by IRC §280E if the corporation is engaged in psilo-
of the corporations subject to the limitations in ORS
cybin-related activities authorized by ORS 475A.210 to
317.476 and supporting administrative rules.
475A.722, the Oregon Psilocybin Services Act. Use sub-
• REITs, if qualified under IRC §856, aren’t allowed a net
traction code 385 on Schedule OR-ASC-CORP.
loss deduction [ORS 317.476(5)].
• REITs and RICs. A REIT or RIC meeting the federal
Line 7. Net capital loss deduction.
affiliate definition must be included in the consoli-
dated Oregon return. This is an Oregon modification • Enter the deduction on line 7 if taxable only by Ore-
(addition or subtraction) to federal taxable income. For gon. Enter as a positive number.
apportioning taxpayers, factors from the REIT or RIC • Enter the deduction on Schedule OR-AP, part 2, line
are included in the apportionment calculation of the 10b if taxable both in Oregon and another state.
150-102-020-1 (Rev. 10-17-23) 15 2023 Form OR-20 Instructions

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• Include a schedule showing your computations, Apportioned returns —C corporations and insurance
including the tax year the net capital loss originated companies doing business in more than one state that
(ORS 317.013 and supporting administrative rules). apportion business income for Oregon tax purposes, use
• Oregon allows a net capital loss deduction for losses the Oregon sales amount from line 22(a) on Schedule
apportioned to Oregon and carried from another year. OR-AP, part 1.
• The deductible loss is limited to net capital gain
Note: Some entity structures have specific minimum
included in Oregon income. Capital losses must be
tax and filing instructions. See “Special filing require-
carried back three tax years and then may be carried
ments.” These include:
forward for up to five tax years.
• Agricultural and horticultural cooperatives.
Line 8. Apportionment percentage. Enter the appor-
• Exempt organizations.
tionment percentage from Schedule OR-AP, part 1, line
• Homeowners associations.
23. If you have income only in Oregon and don’t appor-
• Insurers.
tion, enter 100.0000.
• IC-DISCs.
Line 9. Oregon taxable income (line 5 minus lines 6 and • LLCs.
7, or Schedule OR-AP, part 2, line 12). • Political organizations.
• Publicly traded partnerships.
Tax • REITs and RICs.
• REMICs.
Line 10. Calculated excise tax. Don’t enter the mini-
mum tax on this line. See Appendix B for computation. Corporations and partnerships with Oregon source
income who aren’t doing business in Oregon aren’t sub-
Line 11. Schedule OR-FCG-20 adjustment. A reduced ject to the minimum tax. See “What form do I use?”
tax rate is available if you sold or exchanged capital assets
used in farming. Subtract the amount of adjustment for Line 14. Tax (greater of line 12 or line 13). Oregon tax is
tax on net long-term capital gain from farm property the greater of total calculated tax or minimum tax.
from line 9 of Schedule OR-FCG-20 (ORS 317.063). Line 15. Tax adjustments.
Line 12. Total calculated excise tax (line 10 minus line 11). Installment sales interest. If you owe interest on
Line 13. Minimum tax. The minimum tax for C corpora- deferred tax liabilities with respect to installment obli-
tions and insurance companies doing business in Oregon gations under ORS 314.302, enter the amount of interest
is based on Oregon sales. Use the table in Appendix B. as a positive number. Include a schedule showing how
you figured the interest.
• Consolidated returns: the minimum tax is based on
Oregon sales of the affiliated group of corporations fil- Line 16. Tax before credits (line 14 plus line 15).
ing an Oregon return. One minimum tax applies to the
affiliated group filing the consolidated return, not to Credits
each individual affiliate included in the consolidated For a list and description of Oregon corporation cred its,
return doing business in Oregon. visit www.oregon.gov/dor.
• The minimum tax isn’t apportionable for a short tax
year (except a change of accounting period). Note: Minimum tax can’t be “reduced, paid, or otherwise
satisfied through the use of any tax credit” (ORS 317.090).
Nonapportioned returns—C corporations doing busi-
ness only within Oregon will calculate Oregon sales by Important:
adding: • All credits are claimed on Schedule OR-ASC-CORP.
• Gross receipts from sales of inventory (less returns • Use the description code from the list in Appendix A.
and allowances), equipment, and other assets; • List credits and codes on the OR-ASC-CORP in the
• Gross rent and lease payments received; order you want them used.
• Gross receipts from the performance of services; and • Generally, taxpayers must claim the full amount of a
• Gross receipts from the sale, exchange, redemption, or credit allowed per year (ORS 314.078).
holding of intangible assets developed by or used in • Credits can’t be used to offset minimum tax, unless
the business operations. specified in statute.
Note: (This is a non-exclusive list.)
Line 17. Total standard credits from Schedule OR-ASC-
Generally, for purposes of determining minimum tax, CORP, Section C. Enter as a positive number.
Oregon sales includes gross business income amounts
from federal Form 1120, lines 1c, and 5 through 10. Line 18. Tax after standard credit (line 16 minus line 17).
Include positive numbers only. Don’t enter less than minimum tax.
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Line 19. Total carryforward credits from Schedule OR- applies to individual nonresidents as well as C corpora-
ASC-CORP, Section D. Enter as a positive number. tions that aren’t doing business in Oregon. The amount
to be withheld is the lesser of:
Line 20. Excise tax after standard and carryforward
credits (line 18 minus 19). This can’t be less than mini- • 4 percent of the consideration (sales price);
mum tax on line 15. • 4 percent of the net proceeds (amount dispersed to the
seller); or
Line 21. LIFO benefit recapture subtraction. This • 8 percent of the gain that’s includible in Oregon tax-
amount is a subtraction from tax after credits. Oregon able income for the year.
has adopted the provisions of IRC §1363(d) for S corpora-
tions. LIFO benefits are included in taxable income for Withholding isn’t required if one of the following require-
the last year of the C corporation under these provisions. ments is met:
On a separate schedule, compute the difference between • The consideration for the real property doesn’t exceed
tax (after credits and any surplus refund) on income per $100,000;
the return and income without the recapture of LIFO • The property is acquired through foreclosure;
benefits. Multiply this difference by 75 percent and enter • The transferor (owner) is a resident of Oregon or, if a C cor-
the result on Form OR-20, line 21 as a subtraction from poration, has a permanent place of business in this state; or
the tax after standard and carryforward credits. Include • The transferor meets one of the requirements in ORS
the computation schedule with the Oregon return. 314.258(3)(d) through (f).
On the LIFO benefits line of each of the first three returns See instructions for Oregon Form OR-18-WC, Report of
of the new S corporation, add one-third of the tax that Tax Payment or Written Affirmation for Oregon Real Prop-
was deferred from the last year of the C corporation. The erty Conveyance, for more information (ORS 314.258 and
tax on LIFO benefit recapture will be in addition to the supporting administrative rules).
Oregon minimum tax, if any (ORS 314.771).
Pass-through entity withholding requirement. A pass-
through entity (partnership, S corporation, LLP, LLC, or
Net excise tax
certain trusts) with distributive income from Oregon
Line 22. Net excise tax (line 20 minus line 21). Don’t sources must withhold tax from its nonresident owners.
enter less than minimum tax.
The requirement is waived if the nonresident owner
makes an election to join in the filing of a composite
Payments, penalty, interest, and UND return, sends us a signed Form OR-19-AF, Oregon Affidavit
Line 23. Estimated tax payments, other prepayments, for a Nonresident Owner of a Pass-through Entity, or meets
and refundable credits (from Schedule ES on page 5). another exception listed in ORS 314.775 and supporting
administrative rules. For more information, see instruc-
• Fill in the total estimated tax payments made before tions for Oregon Form OR-19, Annual Report of Nonresident
filing your Oregon return. Owner Tax Payments.
• List name and FEIN of the payer only if different from
the corporation filing this return. Line 25. Tax due. Is line 22 more than line 23 plus line
24? If so, line 22 minus lines 23 and 24.
Note: Consolidated return filers. If estimated payments
were made under a different name, fill in the paying cor- Line 26. Overpayment. Is line 22 less than line 23 plus
poration’s name and FEIN on Schedule ES for the correct line 24? If so, line 23 plus line 24, minus line 22.
application of estimated payments. Line 27. Penalty due with this return. To avoid penalty
Note: Missing or incomplete information on payment and interest, you must make any tax payment owed by
made by an affiliate could result in a billing. the original due date of the tax return, excluding exten-
sions. You must also e-file or mail your tax return by the
• Include any refunds applied from other years on line 5. original due date, or by the extended due date if you file
• Enter payments made with your extension or other with a valid extension included.
prepayments on line 6.
Enter the following penalties on your return if applicable.
• Fill in on line 7 the refundable credits from Schedule
OR-ASC-CORP, Section E. • 5 percent failure-to-pay penalty. Include a penalty
• Carry the total from line 8 to Form OR-20, line 23. payment of 5 percent of your unpaid tax if you don’t
pay by the original due date, even if you have an exten-
Line 24. Withholding payments made on your behalf from
sion of time to file.
pass-through entity or real estate income. If taxes were paid
on the corporation’s behalf, enter the amount on this line. Exception: You won’t be charged the 5 percent failure-to-
pay penalty if you meet all of the following requirements:
There’s a requirement to withhold tax from the proceeds
of sales of Oregon real property by nonresidents. This ° You have a valid federal or Oregon extension, and
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° You pay at least 90 percent of your tax after credits Line 29. Interest on underpayment of estimated tax
by the original due date of the return, and (UND). You must make quarterly estimated tax payments
° You file your return within the extension period, and if you expect to owe $500 or more in tax. This includes
° You pay the balance of tax due when you file your Oregon minimum tax. Oregon charges UND if:
return, and • The quarterly payment is less than the amount due for
° You pay the interest on the balance of tax due when that quarter; or
you file your return or within 30 days of the date of • We receive the quarterly payment after that quarter’s
the bill you receive from us. due date; or
• No quarterly payments are made during the year and
If you filed with a valid extension but didn’t pay
the final tax debt is $500 or more.
90 percent of your tax by the original due date, you’ll
be charged the 5 percent failure-to-pay penalty. Use Form OR-37 to:
• 20 percent failure-to-file penalty. Include a penalty pay- • Calculate the amount of underpayment of estimated tax;
ment of 20 percent of your unpaid tax if you don’t file • Compute the interest you owe on the underpayment; or
your return within three months after the original filing • Show you meet an exception to the payment of interest.
due date (including extensions). The failure-to-file pen- If you have an underpayment of estimated tax, include
alty is in addition to the 5 percent failure-to-pay penalty. Form OR-37 with your tax return, check the box on page 1 of
• 100 percent late pay and late filing penalty. Include Form OR-20, and file them before the due date of the return.
a penalty payment of 100 percent of your unpaid tax If your current year corporation tax liability, including the
if you don’t file returns for three consecutive years by minimum tax, is less than $500, you don’t need to make
the original filing due date (including extensions) of estimated payments. Don’t complete this form. However,
the third year. A 100 percent penalty is assessed on this provision doesn’t apply to a high-income taxpayer. A
each year’s tax balance. “high-income taxpayer” is one that had federal taxable
income before net operating loss and capital loss carry-
Line 28. Interest due with this return. You must pay overs and carrybacks of $1 million or more in any one of
interest on unpaid taxes if: the last three years, not including the current year.
• You don’t pay the tax balance by the original filing due Line 30. Total penalty and interest (add lines 27 through 29).
date, excluding extensions;
• You file an amended return and have tax to pay; or Total due or refund
• Your taxable income is changed because of a federal or
state audit and you owe more tax. Line 31. Total due (line 25 plus line 30). See “Filing
checklist” for payment options. Don’t include a Form
Interest owed on tax starts the day after the due date of OR-20-V, payment voucher, with your payment if you’re
your original return, excluding extensions, and ends on including a payment with your return.
the date of your payment. Interest is computed daily.
Note: Any payments received after the original due date
To calculate interest: will be applied first to penalty, then to interest, and then
to tax [ORS 305.265(13)].
Tax × daily interest rate × number of days.
Special instructions. If you owe penalty or interest and
Interest rates and effective dates:
have an overpayment on line 26, and your overpayment
For periods is less than total penalty and interest, then fill in the
beginning Annually Daily result of line 30 minus line 26, on line 31.
January 1, 2024 8% 0.0219% Line 32. Refund available (line 26 minus line 30).
January 1, 2023 6% 0.0164%
Line 33. Amount of refund to be credited to estimated
January 1, 2022 4% 0.0110% tax. You may elect to apply part or all of your refund
Interest accrues on any unpaid tax during an extension to your next year’s estimated tax payments. Fill in the
of time to file. amount you want to apply. Your election is irrevocable.
Interest will increase by one-third of 1 percent per month Elected amounts that are attributable to estimated tax pay-
(4 percent yearly) on delinquencies if: ments received prior to the following year’s first quarter
estimated tax due date, will be applied as a timely first
• You file a return showing tax due, or we assessed an quarter installment of the following year. Elected amounts
existing deficiency; and attributable to payments received after the following year’s
• The assessment isn’t paid within 60 days after the first quarter estimated tax due date, will be applied to the
notice of assessment is issued; and following year’s estimated tax account as of the date the pay-
• You haven’t filed a timely appeal with us. ment is received. See ORS 314.515 and OAR 150-314-0302.
150-102-020-1 (Rev. 10-17-23) 18 2023 Form OR-20 Instructions

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Line 34. Net refund (line 32 minus line 33).
                                                            Do you have questions or need help?
Authorize your preparer. To authorize a preparer other 
than taxpayer to discuss this return with us, check the       www.oregon.gov/dor
box located above the signature line for “Preparer sig-     503-378-4988 or 800-356-4222
nature other than taxpayer.” To authorize a person other    questions.dor@ dor.oregon.gov
than the preparer, include a signed Form 150-800-005, 
                                                            Contact us for ADA accommodations or assistance in 
Tax Information Authorization and Power of Attorney for 
                                                            other languages.
Representation.

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Appendix A

Corporation Form OR-20
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 of unitary insurance affiliates .......................... 376
Charitable contribution ................................................... 351 Income on a composite return ........................................ 341
CPAR subtraction ............................................................. 384 Inventory costs ................................................................. 357
Deferred gain from out-of-state disposition of IRC Section 245A foreign-source portion dividends... 383
property ......................................................................... 352 Losses from outside U.S. ................................................. 358
Depletion (Oregon in excess of federal allowance) ..... 362 Manufactured dwelling park tenant payments ........... 344
Depreciation differences.................................................. 353 Marijuana business expenses ......................................... 375
Dividend deduction ......................................................... 370 Oregon Investment Advantage ...................................... 342
Energy conservation payments ...................................... 368 Patronage dividends (cooperatives only) ..................... 379
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 Taxes paid to a foreign country ...................................... 378
Gain or loss on sale of depreciable property ................ 356 Uncategorized subtraction (must include
Global intangible low-taxed income (GILTI) ............... 381 explanation) ................................................................... 399
IC-DISC commission payments Work opportunity credit wages not deducted on the
(DISC formed before 01/02/2014) ............................. 366 federal return ................................................................ 372
Income of nonunitary corporations .............................. 371

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

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Carryforward credits
Description                                       Code                                Description                                      Code
Agricultural workforce housing (ORS 315.164) ........... 835                          Opportunity Grant Fund (auction) (carryforward only) 
Bovine manure (carryforward only)(ORS 315.176) ..... 869                              (ORS 315.643) ................................................................ 871
Business energy (carryforward only) (ORS 315.354) ..... 839                           Oregon affordable housing lender’s credit (ORS 
Child Care Fund contributions (carryforward only)                                     317.097) ........................................................................... 854
(ORS 315.213) ................................................................ 841    Oregon Low-Income Community Jobs Initiative 
Crop donation (ORS 315.156) ......................................... 843             (carryforward only) (ORS 315.533) ............................ 855
Electronic commerce zone investment (carryforward                                     Oregon production investment fund (auction)  
only) (ORS 315.507) ...................................................... 845        (ORS 315.514) ................................................................ 856
Employer-provided dependent care assistance                                           Renewable energy resource equipment  
(carryforward only) (ORS 315.204) ............................ 846                    manufacturing facility (carryforward only)  
Employer scholarship (ORS 315.237) ............................ 847                   (ORS 315.341) ................................................................ 860
Energy conservation projects (carryforward only)                                      Rural technology workforce development (carryforward 
(ORS 315.331) ................................................................ 849    only) (ORS 315.523) ...................................................... 868
Fish screening devices (ORS 315.138)............................ 850                  Short line railroad rehabilitation (ORS 315.593) .......... 872 
Forest Conservation Tax Credit (FCTC)                                                 Transportation projects (carryforward only)  
(Or Laws 2022, ch 24) ................................................... 873         (ORS 315.336) ................................................................ 863
Individual Development Account (IDA) donation                                         Uncategorized carryforward credit (must include  
(ORS 315.271) ................................................................ 852    explanation) ................................................................... 999
Lender’s credit: energy conservation (carryforward                                    University venture fund (ORS 315.640) ........................ 864
only) (ORS 317.112) ...................................................... 848        Weatherization lender’s credit (carryforward only) 
Long-term enterprise zone facilities (carryforward only)                              (ORS 317.111) ................................................................. 866
(ORS 317.124) ................................................................ 853

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

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                                              Appendix B

                              Oregon Corporation Form OR-20
                              2023 Tax rates and minimum tax table

Note: Corporation excise tax filers pay the greater of calculated tax or minimum tax.
See “Special filing requirements” for entity types with alternate tax requirements.

Calculated tax (ORS 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.

Minimum tax (ORS 317.090)

                              Minimum tax table —C corporations only

                              Oregon sales of filing group     Minimum tax

                               under $500,000                                          $150
                               $500,000 to $999,999                                    500
                               $1,000,000 to $1,999,999                                1,000
                               $2,000,000 to $2,999,999                                1,500
                               $3,000,000 to $4,999,999                                2,000
                               $5,000,000 to $6,999,999                                4,000
                               $7,000,000 to $9,999,999                                7,500
                               $10,000,000 to $24,999,999                              15,000
                               $25,000,000 to $49,999,999                              30,000
                               $50,000,000 to $74,999,999                              50,000
                               $75,000,000 to $99,999,999                              75,000
                               $100,000,000 and above          100,000

150-102-020-1 (Rev. 10-17-23)                              22                                2023 Form OR-20 Instructions

- 23 -

                                          Appendix C
                              Oregon Corporation Form OR-20
                                  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 
• Your written petition for alternative apportionment        complete your original or amended return while the 
  can be submitted with your original or amended             department rules, in writing, on your request for alter-
  return (Method 1) or separate from your original or        native apportionment.
  amended return (Method 2).                                 • In the case of a UDITPA taxpayer, the petition must 
• For administrative purposes, we prefer Method 2.           fully explain the  extent of the taxpayer’s business 
                                                             activity in Oregon and why standard apportionment 
Method 1 —Alternative apportionment petition                 doesn’t fairly and equitably represent the taxpayer’s 
submitted with your original or amended return               business activity in Oregon. An ORS 314.280 taxpayer 
                                                             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 an    • The petition must show how the Oregon return (Form 
  alternative method of apportionment unless/until that      OR-20, OR-20-INC, OR-20-INS, or OR-20-S) would be 
  alternative method of apportionment has been approved.     completed, including the net tax calculation, using the 
• Include your petition with your return.                    proposed method of alternative apportionment.

150-102-020-1 (Rev. 10-17-23)                             23                                    2023 Form OR-20 Instructions

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