Oregon Form 20-INC Instructions

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

2023

Contents
Purpose of Form OR-20-INC.............................. 2
Important reminders............................................. 2
What’s new and Looking ahead................ 2, 3
Estimated tax payments...................................... 3
Filing information

Filing checklist

Due date of return, Extensions........................................... 7	
Payments................................................................................ 7
Assembling you return........................................................ 8

Mailing addresses..................................................... 8
Form instructions

Who must file with Oregon? Excise or income tax?........ 4
What form do I use?.............................................................. 5
Filing requirements: consolidated returns, unitary
	 business, insurance affiliates, separate returns........... 5
E-file........................................................................................ 5
Federal audit changes........................................................... 6
Amended returns.................................................................. 6
Protective claims................................................................... 6

Heading and checkboxes..................................................... 8
Questions................................................................................ 9

Line instructions

Additions.............................................................................. 10
Subtractions......................................................................... 11
Tax......................................................................................... 14
Credits................................................................................... 14
LIFO benefit recapture....................................................... 14
Net income tax..................................................................... 14
Payments, penalty, interest, and UND............................. 14
Schedule ES—Estimated tax payments, other
	 prepayments, and refundable credits......................... 14
Total due or refund............................................................. 16

Special filing requirements

Agricultural or horticultural cooperatives........................ 6
Broadcasters........................................................................... 6
Exempt organizations........................................................... 6
Homeowners associations................................................... 6
Insurers................................................................................... 6
IC-DISCs ................................................................................ 6
Limited liability companies (LLCs).................................... 6
Political organizations.......................................................... 7
Publicly traded partnerships............................................... 7
Real Estate Investment Trusts (REITs) and Regulated
	 Investment Companies (RICs)........................................ 7
Real Estate Mortgage Investment Conduits (REMICs)..... 7

Do you have questions?..................................... 16
Appendices

Appendix A, 2023 Schedule OR-ASC-CORP code list.... 17
Appendix B, 2023 Tax rates................................................ 19
Appendix C, Alternative apportionment........................ 20

Information contained herein is a guide. For complete details of law, refer to
Oregon Revised Statutes (ORS) and Oregon Administrative Rules (OAR).

Go electronic!
Fast • Accurate • Secure
File corporation tax returns through the Federal/State Electronic Filing Program. See “E-file.”
Visit us online: ­­w ww.oregon.gov/dor

•	 Registration and account status.
•	 Online payments and communication.
•	 Forms, instructions, and law.
•	 Announcements and FAQ.
•	 Updates to instructions.

150-102-021-1 (Rev. 10-17-23)	

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2023 Form OR-20-INC Instructions

1, 2023, and before January 1, 2029, and any tax year to
which the NOL may be carried back. For example, a taxpayer with a loss in tax year 2023 may carry their loss to
tax year 2020. Visit our website at ­www.oregon.gov/dor
for additional information.

Purpose of Form OR-20-INC
Use Form OR-20-INC, Oregon Corporation Income
Tax Return, to calculate and report the Oregon corporate income tax liability of a business entity taxable as
a C corporation with Oregon sources of income but not
doing business in Oregon.

Credits
Agricultural Employer Overtime Tax Credit

Important reminders

HB 4002 (2022) creates a refundable tax credit for overtime paid to agricultural workers. The measure requires
agricultural employers to pay certain workers for overtime hours worked and creates a refundable personal
income or corporate tax credit for employers for a percentage of wages paid as overtime pay to agricultural
workers for tax years beginning on or after January 1,
2023, and before January 1, 2029. Taxpayers must apply
for the tax credit through the department. Note that this
credit can offset corporation minimum tax determined
under 317.090. Visit our website at ­www.oregon.gov/dor
for additional information.

If your registered corporation or insurance company
isn’t doing business in Oregon and has no Oregonsource income, then you don’t need to file a corporation
tax return.
Revenue Online. Revenue Online provides convenient,
secure access to tools for managing your Oregon tax
account. With Revenue Online, you may:
•	View your tax account.
•	Make payments.
•	View correspondence we sent you.
•	Check the status of your refund.

Forest Conservation Tax Credit (FCTC)
SB 1502 (2022) creates a non-refundable Forest Conservation Tax Credit (FCTC) for the stumpage value of timber
left standing on the land of a small forestland owner. The
amount of the tax credit is certified by the Department of
Forestry (ODF) and applies to tax years beginning on or
after January 1, 2023.

For more information and instructions on setting up
your Revenue Online account, visit ­www.oregon.gov/
dor.

What’s new

Additionally, HB 2161 (2023) amended the FCTC from
SB 1502 (2022) to increase the computation of the credit
under certain conditions. See the House Bill for additional information.

Note: Not all information in this section pertains to all
taxpayers or form types. If applicable, refer to House Bills
(HB) or Senate Bills (SB) as shown.
Visit ­
w ww.oregon.gov/dor for possible updates to
these instructions.

Opportunity Grant Fund (auction) tax credit sunset
(ORS 315.643)

General

The Opportunity Grant Fund (auction) tax credit sunset
on January 1, 2023. The tax credit may be claimed in tax
years beginning on or after January 1, 2023, if the credit
is purchased at auction on or after January 1, 2023, and
before March 1, 2023.

Tie to federal tax law
In general, Oregon tax law is based on federal tax law.
Oregon is tied to the federal definition of taxable income
as of December 31, 2022; however, Oregon is still disconnected from:

Extended credits
The following credit is extended to tax years beginning
before January 1, 2028:

•	Federal subsidies for prescription drug plans (IRC
§139A; ORS 317.401).
•	Deferral of certain deductions for tax years beginning
on or after January 1, 2009 and before January 1, 2011
may require subsequent Oregon modifications (IRC
§168(k) and §179; ORS 317.301).

•		Cultural Trust contribution (ORS 315.675).........code 807
The following credits are extended to tax years beginning before January 1, 2030:
•		Employer scholarship (ORS 315.237)...................code 847
•	Individual Development Account (IDA)
donation (ORS 315.271)..........................................code 852
•		Reservation enterprise zone (ORS 315.506)........code 810
•	Short line railroad rehabilitation
(ORS 315.593).........................................................code 872
•		University venture fund (ORS 315.640)..............code 864

Net Operating Loss (NOL) carryback
SB 1524 (2022) allows taxpayers who use NAIC codes
111 or 112 (referring to taxpayers engaged in crop
produc¬tion, animal production or aquaculture) to claim
a three-year NOL carryback. The three-year NOL carryback applies in tax years beginning on or after January
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2023 Form OR-20-INC Instructions

The following credits are extended to tax years beginning before January 1, 2032:

Sale of publicly supported housing credit
HB 2071 (2023) creates a tax credit for the sale of publicly
supported housing. The tax credit equals 2.5 percent
of the lesser of the sales price or appraisal value if the
owner held the publicly supported housing for at least
five years and 5.0 percent of the lesser of the sales price
or appraisal if the owner held the publicly supported
housing for at least ten years.

•		Agricultural workforce housing
(ORS 315.164)...........................................................code 835
•	Oregon affordable housing lender’s credit
(ORS 317.097)...........................................................code 854

Sunset credits no longer available, including
carryforward

The new tax credit applies to tax years beginning on or
after January 1, 2024, and before January 1, 2030. It will be
certified by Oregon Housing and Community Services.

The following credits are no longer available, including
carryforward, for tax years beginning before January 1,
2023. Any remaining credit amount not used is lost.

Short-line railroad rehabilitation (ORS 315.593)

•	Alternative qualified research activities
(ORS 317.154)............................................................code 837
•	Qualified research activities (ORS 317.152).......code 858
•		Repatriation credit (due to IRC §965)..................code 870

HB 3406 (2023) amended ORS 315.593 to eliminate the
distinction between Tier 1 and Tier 2 railroads for purposes of the short-line railroad tax credit. All taxpayers
may claim 50 percent of the costs incurred to rehabilitate the short-line railroad. A credit is not allowed for an
amount equal to the greater of costs used to claim the
IRC 45G credit or the credit limitation in IRC 45G(b)(1).
Rehabilitation costs that are funded by a federal or state
grant cannot be used to claim the credit.

Looking ahead
Credits
Oregon Affordable Housing Lender’s Credit
(ORS 317.097)

The credit is certified by Oregon department of Transportation (ODOT). The changes described here apply
to tax years beginning on or after January 1, 2024, and
before January 1, 2026.

Two separate bills amended this credit:
•	HB 2071 (2023) amended ORS 317.097 to allow financiers of limited equity cooperatives to claim the ORS
317.097 tax credit if the tax credit savings are passed on
to the tenants of the limited equity cooperative. This
change applies to tax years beginning on or after January 1, 2024.
•	SB 892 (2023) amended ORS 317.097 to apply to projects involving households earning 80 percent or less of
the area median income. Prior to the amendment, ORS
317.097 applies to projects involving households earning less than 80 percent of the area median income.

Estimated tax payments
Requirements
Oregon estimated tax payment requirements aren’t the
same as federal estimated tax payment requirements.
You must make estimated tax payments if you expect to
owe tax of $500 or more. See ORS 314.505 to 314.525 and
supporting administrative rules.
If you don’t make estimated payments as required, you
may be subject to interest on underpayment of estimated
tax (UND). Refer to Form OR-37 if you have an underpayment of estimated tax.

Qualified semiconductor company research credit
HB 2009 (2023) allows a qualified semiconductor company to claim a tax credit based on research and
development expenses. The qualifying research and
development expenses are determined based on IRC 41.
Oregon allows a credit equal to 15 percent of the qualifying research and development expenses as determined
in IRC 41. The maximum amount of credit varies based
on employee numbers. A portion of the tax credit is
refundable if the taxpayer has fewer than 3,000 employees. The exact refund percentage depends on how many
employees the taxpayer has.

Payment due dates
Estimated tax payments are due quarterly, as follows:
•	Calendar year filers: April 15, June 15, September 15,
and December 15.
•	Fiscal year filers: The 15th day of the 4th, 6th, 9th, and
12th months of your fiscal year.
•	If the due date falls on a Saturday, Sunday, or legal
holiday, use the next regular business day.

The new tax credit applies to tax years beginning on or
after January 1, 2024, and before January 1, 2030. The tax
credit will be certified by Oregon Business Development
Department (OBDD).

150-102-021-1 (Rev. 10-17-23)	

Payment options
Important: For details about making payments with
your return, see “Filing checklist” below.
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2023 Form OR-20-INC Instructions

Estimated payments may be made by electronic funds
transfer (EFT), online, or by mail.

Example: During the year, Corporation A’s expected net
tax increased from $2,000 to $6,000. Corporation A made
timely first and second quarter estimated payments of
$500 before its expected net tax increased.

EFT. You must make your Oregon estimated payments
by EFT if you’re required to make your federal estimated
payments by EFT. We may grant a waiver from EFT payments if you’d be disadvantaged by the requirement
(ORS 314.518 and supporting administrative rules).

Corporation A should make four payments of $1,500 each
during the year. Because of its increased net tax, Corporation A will be subject to UND charges for the first and
second quarters. To avoid UND charges for the third and
fourth quarters, Corporation A must make timely payments of $3,500* for the third quarter and $1,500 for the
fourth quarter.

If you don’t meet the federal requirements for mandatory EFT payments, you may still make voluntary EFT
payments.
You can make EFT payments through Revenue Online or
through your financial institution. To learn more about
Revenue Online or to make an EFT payment, visit ­www.
oregon.gov/dor. If you pay by EFT, don’t send Form
OR‑20-V, Oregon Corporation Tax Payment Voucher.

*$1,000 for the first-quarter underpayment, plus $1,000
for the second-quarter underpayment, plus $1,500 for the
required third-quarter installment equals $3,500.

Mail. If paying by mail, send each payment with a Form
OR-20-V, payment voucher, to: Oregon Department of
Revenue, PO Box 14950, Salem OR 97309-0950.

Who must file with Oregon?

Filing information
Corporations that are doing business in Oregon, or with
income from an Oregon source, are required to file an
Oregon corporation tax return. If you have tangible
or intangible property or other assets in Oregon, any
income you receive from that property or assets is Oregon-source income. Public Law (Pub.L.) 86-272 provides
exceptions to the Oregon filing requirement for certain
corporations doing business in Oregon.

Include on your check:
•	Federal employer identification number (FEIN).
•	Tax year beginning and ending dates.
•	Contact phone.

Estimated tax payments’ worksheet

Exemption for emergency service providers. An outof-state emergency service provider is exempt from tax
when operating solely for the purposes of performing
disaster or emergency-related work on critical infrastructure. Disaster or emergency-related work conducted by
an out-of-state business may not be used as the sole basis
for determining that a corporation is doing business in
Oregon.

(Keep for your records—don’t file with your payment.)
1. Oregon net income expected in
upcoming tax year.

1.

2. Tax on Oregon net income (see
Appendix B).

2.

3. Subtract tax credits allowable in
upcoming tax year.

3.

4. Net tax (line 2 minus line 3).

4.

Note: Oregon follows the federal entity classification
regulations. If an entity is classified or taxed as a corporation for federal income tax purposes, it will be treated
as a corporation for Oregon tax purposes.

If the amount on line 4 is less
than $500, stop. You don’t have
to make estimated tax payments.
Caution: If your final tax
liability when you file your
return is $500 or more, you may
be subject to UND.
5. Amount of each payment.
(Divide line 4 by the number of
payments you need to make.
This is usually 4.)

Excise or income tax?
Oregon has two types of corporate taxes: excise and
income. Excise tax is the most common. Most corporations don’t qualify for Oregon’s income tax.

5.

Excise tax is a tax for the privilege of doing business
in Oregon. It’s measured by net income. Excise tax filers are subject to corporate minimum tax. Corporation
excise tax laws are in Chapter 317 of the Oregon Revised
Statutes.

If your expected net tax changes during the year, refigure your estimated tax payments using the Estimated tax
payments’ worksheet.

Note: All interest on obligations of the 50 states and their
subdivisions are subject to Oregon excise tax. Interest on
obligations of the United States and its instrumentalities
are also subject to tax if the interest is taxable under the
Internal Revenue Code and Congress has not chosen to

To avoid additional charges for UND, you must pay the
amount of any prior underpayment plus the amount of
the current required payment.
150-102-021-1 (Rev. 10-17-23)	

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2023 Form OR-20-INC Instructions

prevent the states from taxing the interest in question. A
taxpayer has the burden of showing that Oregon can’t
tax the interest on a federal obligation.

•	At least one of the affiliated corporations doing business in Oregon or have Oregon-source income.
Note: S corporations can’t be included in consolidated
federal returns. IRC §1361(b) provides that a corporation
that’s a Qualified Subchapter S Subsidiary (QSSS) isn’t
treated as a separate corporation. All income, deductions, and credits of the QSSS will be treated as belonging to the parent S corporation.

Income tax is for corporations not doing business in
Oregon, but with income from an Oregon source. Income
tax filers aren’t subject to corporate excise or minimum
tax. Corporation income tax laws are in Chapter 318 of
the Oregon Revised Statutes.

Unitary business. A business that has, directly or indirectly between members or parts of the enterprise, either
a sharing or an exchange of value shown by:

What form do I use?
Except as provided by Pub.L. 86-272, all corporations
doing business in Oregon must file Form OR-20, and
are subject to the minimum excise tax. Any corporation
doing business in Oregon is also required to register
with the Secretary of State Corporation Division. See
­www.­sos.oregon.gov.

•	Centralized management or a common executive force,
•	Centralized administrative services or functions resulting in economies of scale, or
•	Flow of goods, capital resources, or services showing
functional integration.
Unitary insurance affiliates. If a unitary insurance
affiliate has a separate return filing requirement, they’re
excluded from the Oregon return of the consolidated
group. The insurance affiliate is treated as if it’s a nonunitary affiliate of the consolidated group by subtracting income or adding losses to federal taxable income.
The other members of the insurer’s federal consolidated
group receive a 100 percent dividend-received deduction
for any dividend received from the insurer. See “Additions” and “Subtractions” below.

“Doing business” means carrying on or being engaged
in any profit-seeking activity in Oregon. A taxpayer
having one or more of the following in this state is clearly
doing business in Oregon:
•	A stock of goods.
•	An office.
•	A place of business (other than an office) where affairs
of the corporation are regularly conducted.
•	Employees or representatives providing services to
customers as the primary business activity (such as
accounting or personal services), or services incidental
to the sale of tangible or intangible personal property
(such as installation, inspection, maintenance, warranty, or repair of a product).
•	An economic presence through which the taxpayer
regularly takes advantage of Oregon’s economy to produce income.

Separate federal returns. Any corporation that files
a separate federal return must file a separate Oregon
return if it’s doing business in Oregon or has income
from an Oregon source. However, see special filing
requirements for REITs.
A corporation subject to Oregon taxation must also file
a separate Oregon return if it was included in a consolidated federal return, but wasn’t unitary with any of
the other affiliates. To determine your Oregon taxable
income, take the taxable income from the consolidated
federal return and use Oregon additions or subtractions
to remove the nonunitary affiliates.

Corporations not doing business in Oregon, but with
income from an Oregon source generally must file
Form  OR-20-INC. There is no minimum tax for Form
OR-20-INC filers. Most corporations don’t fall within
Oregon’s income tax provisions.

E-file

Corporations not doing business in Oregon, and with
no Oregon source income, even if incorporated in or
registered to do business in the state, aren’t required to
file a corporation tax return.

If you’re required to e-file with the IRS, you’re also
required to e-file for Oregon (ORS 314.364). We accept
calendar year, fiscal year, short year, and amended electronic corporation tax returns utilizing the IRS Modernized e-file platform (MeF). Beginning January 2024, we’ll
accept e-filed returns for tax year 2023, and will continue
accepting returns for 2022 and 2021.

Filing requirements
Consolidated federal returns (ORS 317.705–317.725). If a
corporation is a member of an affiliated group of corporations that filed a consolidated federal return, it must
file an Oregon return based on that federal return. An
Oregon return, based on the federal consolidated return,
is required when two or more affiliated corporations are:

Your tax return software also allows you to make electronic payments when e-filing your original return.
Note: Your paper return may be rejected if you’re
required to electronically file your Oregon corporation
tax return, unless a waiver request has been approved by
us prior to the filing of the paper return.

•	Included in a consolidated federal return;
•	Unitary; and
150-102-021-1 (Rev. 10-17-23)	

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2023 Form OR-20-INC Instructions

If you’d like to request a waiver, send an email with
the FEIN, tax year, and reason you’re unable to e-file to
bus.electronicfiling@​
dor.oregon.gov, prior to paper-filing your return.

years. Oregon allows corporations to carry net operating losses forward only.
On the estimated tax payments line on your amended
Form OR-20-INC, enter the net income tax per the original return or as previously adjusted. Don’t include any
penalty or interest portions of payments already made.

For a list of software vendors or for more information,
search “e-filing” at w
­ ww.oregon.gov/dor.

If paying additional tax with your amended return, you
must include interest with your payment. Interest is figured from the day after the due date of your original
return up to the day we receive your full payment. See
“Interest rates.”

Federal or other state audit changes
If the IRS or other taxing authority changes or corrects
your federal or other state return for any tax year, you
must notify us. File an amended Oregon return and
include a copy of the federal or other state audit report.
Mail this separately from your current year’s return.

Pay all tax and interest due with your amended return
or within 30 days after receiving a billing notice from us
to avoid being charged a 5 percent late payment penalty.

If you don’t amend or send a copy of the federal or other
state report, we have two years from the date we’re notified of the change to issue a deficiency notice. To receive
a refund, you must file a claim for refund of tax within
two years of the date of the federal or other state report.

Protective claims
Don’t file an amended return as a protective claim.
Use Oregon Form OR-PCR, Protective Claim for Refund,
150‑101-184, when your claim to a refund is contingent
on a pending court decision or legislative action. Notify
us within 90 days of the final determination by filing an
amended return. Don’t file an amended return before
the pending action is final.

Amended returns
Oregon doesn’t have an amended return form for corporations. Use the form for the tax year you’re amending
and check the amended box. Always use your current
address. If your address has changed, don’t use your old
address or our system will revert your current address
to the old address.

Special filing requirements
See Oregon Corporation Excise Tax Form OR-20 Instructions,
for filing information for the following entity types:

Fill in all amounts on your amended return, even if
they’re the same as originally filed. If you’re amending to change additions, subtractions, or credits, include
detail of all items and amounts, including carryovers.

•	Agricultural or horticultural cooperatives.
•	Broadcasters.
•	Exempt organizations.
•	Homeowners associations.
•	Insurers.
•	IC-DISCs.
(These entities don’t file Form OR-20-INC.)

If you change taxable income by filing an original or
amended federal or other state return, you must file an
amended Oregon return within 90 days of when the
original or amended federal or other state return is filed
(ORS 314.380). Include a copy of your original or amended
federal or other state return with your amended Oregon
return and explain the changes.

Limited liability companies (LLCs)
Oregon follows federal law in determining how an LLC
is taxed. Federal law doesn’t recognize an LLC as a classification for federal tax purposes. An LLC business
entity must file a corporation, partnership, or sole proprietorship tax return, depending on elections made by
the LLC and the number of members.

If you filed Form OR-20-S, and later determined you
should file Form  OR-20-INC, amend your return using
Form OR-20-INC and check the amended box.
You may make payments online for your amended
return at ­www.oregon.gov/dor.
Don’t make payments for amended returns with EFT.
This also applies to e-filed amended returns. For paper
returns, you may pay online or include a check or money
order with your return. For e-filed returns, you may pay
online or send a check or money order separately. If you
mail your payment separate from your return, write
“Amended” on the payment and include a completed
Form OR-20-V with the amended box checked.

A multi-member LLC can be either a partnership or a
corporation, including an S corporation. A single member LLC (SMLLC) can be either a corporation or a single
member “disregarded entity.” Refer to federal law for
more information and requirements.
An LLC taxed as a C corporation must file Form OR-20
if doing business in Oregon, or Form OR-20-INC if not
doing business in Oregon but receiving Oregon-source
income. The LLC must file Form OR-20-S if the entity
files federal Form 1120-S.

Don’t amend your Oregon return if you amend the federal return to carry a net operating loss back to prior
150-102-021-1 (Rev. 10-17-23)	

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2023 Form OR-20-INC Instructions

An LLC taxed as a partnership must file Form OR-65,
Oregon Partnership Return, if doing business in Oregon,
or if receiving Oregon-source income, or if it has any
Oregon resident members. If the LLC has a corporate
member, the member is taxed on its share of the LLC’s
Oregon income.

A REIT or RIC that isn’t required to be included in an
Oregon consolidated return is subject to tax under ORS
chapter 317 or 318 and calculates their Oregon apportionment factors and Oregon net income in the same manner
as a corporation with a separate filing requirement under
ORS 317.710. REITs or RICs doing business in Oregon are
subject to Oregon minimum tax. Business trusts that
qualify as REITs filing separate returns aren’t allowed
an Oregon deduction for net losses of prior years.

If an LLC is part of a corporation’s overall business operations and is treated as a partnership, include the corporation’s ownership share of LLC property, payroll, and
sales in the corporation’s apportionment percentage calculation on Schedule OR-AP (ORS 314.650 and supporting administrative rules).

Distributions from a REIT or RIC to its shareholders are
treated the same as distributions from a corporation to
its shareholders for purposes of ORS chapters 316, 317,
and 318.

Foreign LLCs are identified as unincorporated associations organized under the laws of a state other than Oregon, or a foreign country. Oregon’s definition of a foreign
LLC includes an unincorporated association organized
under the laws of a federally recognized American
Indian tribe, no matter when organized.

Real Estate Mortgage Investment Conduits
(REMICs)
A REMIC isn’t subject to Oregon tax; the income is
taxable to the holders of the REMIC’s interests under
ORS Chapter 316, 317, or 318, whichever is applicable. A
REMIC must file Form OR-20-INC if it receives prohibited transaction income from Oregon sources.

Political organizations
Political organizations (for example, campaign committees and political parties) normally don’t pay state or federal taxes. However, income earned from investments is
taxable. Examples include interest earned on deposits;
dividends from contributed stock, rents, or royalties; and
gains from the sale of contributed property. We follow
the federal definitions of political organizations and taxable income.

All REMICs required to file must include a complete
copy of federal Form 1066. The REMIC must also include
a federal Schedule Q for each residual interest holder for
each quarter of the tax year. Report the amount of net
income from prohibited transactions from federal Form
1066 Schedule J (ORS 314.260).

Filing checklist

A political organization that isn’t incorporated and hasn’t
elected to be taxed as a corporation should file a personal
income tax return [ORS 316.277(2)].

Rounding to whole dollars. Enter amounts on the
return and accompanying schedules as whole dollars
only. Example: $4,681.55 becomes $4,682; and $8,775.22
becomes $8,775.

For more information, including how to file your return,
go to ­www.oregon.gov/dor/business.

Publicly traded partnerships

•	Due date of your return. Returns are due by the 15th
day of the month following the due date of your federal corporation return. When the 15th falls on a Saturday, Sunday, or legal holiday, the due date is the next
business day.

A “publicly traded partnership” is a partnership treated
as a corporation for federal tax purposes under IRC §7704.
The partners in a publicly traded partnership aren’t
subject to tax on their distributive shares of partnership
income. A publicly traded partnership taxed as a corporation must file a Form OR-20 if doing business in Oregon, or Form OR-20-INC if not doing business in Oregon,
but is receiving Oregon-source income.

•	Extensions. See the instructions below for the extension checkbox. When you file, include the extension as
the final page of your return.
•	Payments.
°	 Payments received after the original due date will be
applied first to penalty, then to interest, and then to
tax [ORS 305.265(13)].
°	 Estimated payments and prepayments. Identify all
estimated payments claimed by completing Schedule ES on page 5 of your return. List all payments that
were submitted prior to filing your return. Include
the corporation name and FEIN if a payment was
made by an affiliate of the filing corporation. Missing or incomplete information on payments made by
an affiliate could result in a billing.

Real Estate Investment Trusts (REITs) and
Regulated Investment Companies (RICs)
A REIT or RIC that isn’t included in a federal consolidated return based on the provisions of IRC §1504(b)(4)
must be included in the Oregon consolidated return.
These REITs or RICs are subject to the provisions of
ORS 317.715 and supporting administrative rules. For
apportioning taxpayers, factors from the REIT or RIC are
included in the apportionment calculation of the consolidated Oregon return.
150-102-021-1 (Rev. 10-17-23)	

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2023 Form OR-20-INC Instructions

°	 Online payments. You may pay online for any
return at w
­ ww.oregon.gov/dor. Search “payments.”
°	 Making electronic payments with your e-filed
return. We accept electronic payments when e-filing
your original return.
°	 Making check or money order payments with your
paper return. Make your check or money order payable to Oregon Department of Revenue. Write the
following on your check or money order:
—	Filer FEIN.
—	Tax year beginning and ending dates.
—	Contact phone.

Form instructions
Heading and checkboxes
•	Extension checkbox. For an Oregon extension when
you’re also filing for a federal extension: Send a copy
of the federal extension with the Oregon return when
you file. Check the extension checkbox on your Oregon return and include a copy of the extension after all
other enclosures.
	 For an “Oregon only” extension: Answer question 1 on
federal extension Form 7004, write “For Oregon Only”
at the top of the form and include it with your Oregon
return when you file. Check the extension checkbox on
the Oregon return.

°	 To speed up processing of your return:
—	Don’t use Form OR-20-V payment voucher.
—	Don’t staple payment to the return.
—	Don’t send cash or postdated checks.
—	Don’t use red or purple or any gel ink.

	 The Oregon extension due date is the 15th day of the
month following the federal exten­sion’s due date. Don’t
send the extension until you file your Oregon return.

•	Assembling your return. Assemble your Oregon
return forms in the following order:

	 More time to file doesn’t mean more time to pay your
tax. To avoid penalty and interest, pay tax due prepayments online, or by mail with Form OR-20-V, on or
before the original due date of your return. Note: Filing Form OR-20-V isn’t an extension of time to file your
tax return.

1.	 Form OR-20-INC, Oregon Corporation Income Tax
Return;
2.	 Schedule OR-AP, Apportionment of Income for Corporations and Partnerships;
3.	 Schedule OR-AF, Schedule of Affiliates;
4.	 Schedule OR-PI, Schedule of Partnership Information;
5.	 Schedule OR-ASC-CORP, Oregon Adjustments;
6.	 Form OR-37, Underpayment of Oregon Corporation
Estimated Tax;
7.	 Form OR-DRD, Dividends-Received Deduction.
8.	 Form OR-24, Like-Kind Exchanges/Involuntary
Conversions;
9.	 Other Oregon statements;
10.	 Oregon credit forms including notice of credit transfers;
11.	Copy of federal tax return and schedules;
12.	Form 7004, Federal extension.

	 If you’re making an extension payment by mail, send
the payment to: Oregon Department of Revenue, PO
Box 14950, Salem OR 97309-0950.
	 Include on your check:
—	FEIN.
—	“Extension.”
—	Tax year beginning and ending dates.
—	Contact phone.
•	Form OR-37 checkbox. If you have an underpayment
of estimated tax, you must include a completed Form
OR-37. Check the Form  37 box in the header of your
return.

Mailing Addresses

	 Use Form OR-37 to:
°	 Calculate the amount of underpayment of estimated
tax;
°	 Compute the amount of interest you owe on the underpayment; or
°	 Show you meet an exception to the payment of
interest.

Tax-due returns, with or without payment, mail to:
Oregon Department of Revenue
PO Box 14790
Salem OR 97309-0470
(Do NOT include a payment voucher.)
Refunds or no tax-due returns, mail to:
Oregon Department of Revenue
PO Box 14777
Salem OR 97309-0960

•	REIT/RIC checkbox. If you participated in a REIT or
RIC, you must check the appropriate box in the header
area of the Oregon tax return.
•	Amended checkbox. Check the amended box if this is
an amended return.

Check or money order payments only, mail to:
Oregon Department of Revenue
PO Box 14950
Salem OR 97309-0950
(Include Form OR-20-V payment voucher.)
150-102-021-1 (Rev. 10-17-23)	

•	Form OR-24 checkbox. Corporations may defer,
for Oregon tax purposes, all gains realized in the
exchange of like-kind property and involuntary conversions under IRC §1031 or §1033, even though the
8	

2023 Form OR-20-INC Instructions

replacement property is outside Oregon. Oregon will
tax the deferred gain when it’s included in federal taxable income.

with your federal tax return instructions. Only enter the
code if this is your first return, the current code is dif­
ferent than you reported last year, or your code begins
with “111” or “112”.

	 Include a copy of your Oregon Form OR-24, Like-Kind
Exchanges/Involuntary Conversions, 150-800-734, with
your Oregon return and check the Form OR-24 box if
all of the following apply:

Question E(1). Check this box if you filed a consolidated
federal return. Include a list of the corporations included
in the consolidated federal return.

°	 The corporation reported deferred gain on a federal
Form 8824;
°	 All or part of the property exchanged or given up
was located in Oregon; and
°	 All or part of the acquired property was located outside of Oregon.

Question E(2). Check this box if you filed a consolidated
Oregon return. Complete Schedule OR-AF, Schedule of
Affiliates, and list only the corporations included in the
consolidated Oregon return that:
•	Are doing business in Oregon; or
•	Have income from Oregon sources.

	 For a more detailed explanation, see ORS 314.650 and
314.665 and supporting administrative rules regarding
apportionment of deferred gain.

Question E(3). Check this box if it applies. Include a
list of corporations included in the consolidated federal
return that aren’t included in this Oregon return. List
each corporation’s name and FEIN. Note: Include a copy
of your federal return and schedules as filed with the
IRS.

•	Federal Form 8886 checkbox and reportable transactions. If you’re required to report listed or reportable
transactions to the IRS on federal Form 8886, you must
check this box. We’ll assess penalties if you don’t comply with this requirement.

Question F. If the filing corporation (shown above as
legal name) is a subsidiary in an affiliated group, or a
subsidiary in a parent-subsidiary controlled group, enter
the name and FEIN of the parent corporation. For definition of a subsidiary in an affiliated group or a parent-subsidiary controlled group, see federal Form 1120,
Schedule K.

•	Global intangible low-taxed income (GILTI) included
on federal return. If you included GILTI on your federal return, check this box.
•	Alternative apportionment checkbox. See Appendix
C for complete information. Check this box if you have
included a request with your return.

Question K. Utility or telecommunications companies. Taxpayers primarily engaged in utilities or telecommunications may elect to apportion income using a
double-weighted sales factor formula (ORS 314.280 and
supporting administrative rules). Check the box if making this election.

Name. Generally, a consolidated Oregon return is filed
in the name of the common parent corporation. If the
parent corporation isn’t doing business in Oregon, file
the return in the name of the member of the group having the greatest presence in Oregon. “Having the greatest presence” means that the member has the largest
Oregon property value as determined under ORS 314.655
(see Schedule OR-AP and OAR 150-317.0540).

Question L. Limited partner income only. Check this
box if your corporation is filing a Form OR-20-INC and
has no other connection to Oregon other than an ownership interest as a limited partner in a partnership that’s
doing business in Oregon.

•	Legal name. Enter the corporation’s current legal
name as set forth in the articles of incorporation or
other legal document.
•	FEIN. Enter the FEIN of the corporation named as the
filer on the consolidated Oregon return.
•	DBA/ABN. If the corporation is doing business under
a different name, for example, DBA or ABN, enter that
name.
•	Current address. Always enter the corporation’s current address. If the address for the year you’re filing
was different, don’t use the old address or our system
will revert your current address to the old address.

Don’t check this box if you’re a general partner. A corporate general partner of a partnership that’s doing business in Oregon is subject to the greater of calculated
excise tax or minimum tax imposed under Chapter 317
and must file Form OR-20.
Question M. Total Oregon sales.
•	Apportioned returns. Enter the amount of Oregon
sales from Schedule OR-AP, line 22(a).
•	Nonapportioned returns. Enter the amount of sales as
defined by ORS 314.665.

Questions

Line instructions

Questions A–C. Complete only if this is your first return
or the answer changed during the tax year.

Line 1. Taxable income from U.S. corporation income
tax return. Enter the taxable income reported for federal

Question D. Refer to the current list of North American
Industry Classification System (NAICS) codes found
150-102-021-1 (Rev. 10-17-23)	

9	

2023 Form OR-20-INC Instructions

income tax purposes before net operating loss or special
deductions (federal Form 1120, line 28).

decreased income (ORS 314.733). Visit our website for
more information.
•	Deferred gain recognized from out-of-state disposition of property acquired in an IRC §1031 or §1033
exchange. See ORS 317.327 regarding the computation
of the addition if gain or loss is recognized for federal
tax purposes but not taken into account in the computation of Oregon taxable income.

Additions
Line 2. Total additions from Schedule OR-ASC-CORP,
Section A. The amount by which any item of income is
greater under Oregon law than under federal law, or the
amount by which any allowable deduction is less under
Oregon law than under federal law, is an addition on
your Oregon return.

•	Depletion (percentage in excess of cost). Add the federal deduction that is in excess of the Oregon allowance for depletion (ORS 317.374).

Use Schedule OR-ASC-CORP, Section A, to report the
amount and description code of each difference. Use the
description code from the list in Appendix A. The total
of all additions is entered on Form OR-20-INC, line 2.

•	Depreciation differences. If your Oregon depreciation isn’t the same as your federal depreciation, the
difference is a required modification to your Oregon
return (ORS 317.301). Use Schedule OR-DEPR to determine the Oregon modification.

Additions include:
•	Bad debt reserve addition of a financial institution
to the extent that the federal amount exceeds the
amount that’s allowable for Oregon. The bad debt
method for financial institutions is tied to the federal method. For taxpayers required to use the specific write-off method, an addition must be made if
the amortization of the federal reserve is less than the
amortization of the Oregon reserve (ORS 317.310).

•	Gain or loss on the disposition of depreciable property. Add the difference in gain or loss on sale of business assets when your Oregon basis is less than your
federal basis (ORS 317.356 and OAR 150-317-0420).
•	Global intangible low-taxed income (GILTI) under
IRC Section 250. You must add back any GILTI amount
not included in Line 1 of your Oregon return. Generally, the federal deduction is taken on line 29b of federal Form 1120 and doesn’t impact the Oregon return.
However, if any amount was omitted or deducted in
determining federal income carried to line 1 of your
Oregon return, it must be added back before a subtraction can be claimed. Report the Oregon addition (if
any) on Schedule OR-ASC-CORP using code number
186 ORS 317.267).

•	Capital construction fund. Amounts deferred under
Section 607 of the Merchant Marine Act of 1936 and
IRC §7518 must be added back to federal taxable
income (ORS 317.319).
•	Charitable donations not allowed for Oregon. Donations to a charitable organization that has received a
disqualifying order from the Attorney General aren’t
deductible as charitable donations for Oregon tax purposes. Such organizations are required to provide a
disclosure to a donor to acknowledge this. The Attorney General will publish online and otherwise make
publicly available information identifying the charitable organizations receiving a disqualification order.
If you claimed a federal deduction, an addition must
be made on your Oregon return for donations to such
charitable organizations (ORS 317.491).

•	Income from sources outside the United States. Add
income from sources outside the United States, as
defined in IRC §862, not included in federal taxable
income under IRC §§861 to 864 (ORS 317.625).
•	Income of related FSC or DISC. Net income or loss
must be included in the net income of the related U.S.
affiliate if the related FSC or DISC doesn’t qualify for
ORS 317.283(2) treatment (ORS 317.283 and 317.286).

•	Claim of right income repayment adjustment when
credit’s claimed. The deduction under IRC §1341 on
the federal return must be added back to federal taxable income on your Oregon return if the Oregon credit’s claimed (ORS 317.388).

•	Individual Development Account credit. Donations
deducted on the federal return must be added back to
federal taxable income if the Oregon credit’s claimed
[ORS 315.271(2)].
•	Intercompany transactions involving intangible
assets. The user of the intangible asset must add the
royalty or other expense for such use to federal taxable
income as an addition on the Oregon tax return if:

•	CPAR addition. If you’re an owner of a partnership
that was subject to a partnership-level audit by the
IRS (or you’re an owner of a tiered partner of such a
partnership), you may have to increase or decrease
your Oregon income as a result of the audit. Report an
increase in income using addition code 187 or report a
decrease in income using subtraction code 384, whichever is applicable. Use these codes even if another
code is assigned for the specific type of increased or
150-102-021-1 (Rev. 10-17-23)	

°	 An intangible asset is owned by one corporation or
business (the owner), and used by another (the user)
for a royalty or other fee;
°	 Both the owner and the user are “owned by the same
interests,” as defined in Treas. Reg. §1.469-4T(j);
10	

2023 Form OR-20-INC Instructions

°	 The owner and the user aren’t included in the same
Oregon tax return; and
°	 The separation of ownership of the intangible asset
from the user of the intangible asset results in either:
evasion of tax or a computation of Oregon taxable
income that isn’t clearly reflective of Oregon business income.

•	Opportunity Grant Fund (auction). Any federal deduction for contributions for which an Opportunity Grant
Fund tax credit certification is made must be added to
federal taxable income (ORS 315.643).
•	Oregon excise tax and other state or foreign taxes on
or measured by net income. Oregon excise tax may
not be deducted on the Oregon return. Taxes of other
states or foreign governments on or measured by net
income or profits may not be deducted on the Oregon
return. If you subtracted these taxes on your federal
return, you must add them back on your Oregon
return. However, the Oregon minimum tax and some
local taxes, such as the Multnomah County Business
Income tax, are deductible, and aren’t required to be
added back (ORS 317.314).

	 If the owner also files an Oregon return, the owner
of the intangible asset must report the corresponding royalty or other income as a negative addition on
Schedule OR-ASC-CORP, Section A (ORS 314.295 and
supporting administrative rules).
•	Interest income excluded from the federal return.
Oregon gross income includes interest on all state and
municipal bonds or other interest excluded for federal tax purposes. Reduce the addition by any interest
incurred to carry the obligations and by any expenses
incurred in producing this interest income (ORS 317.309).

•	Oregon production investment fund. Add back the
amount of contribution for which a tax credit certification is made that’s allowed as a deduction for federal
tax purposes (ORS 315.514).

•	Inventory costs. The costs allocable to inventory are
the same as those included in IRC §263A. Differences
in depreciation and depletion allocable to inventory
result in a modification [ORS 314.287(3)].

•	REITs and RICs. A REIT or RIC meeting the federal
affiliate definition must be included in the consolidated Oregon return. This is an Oregon modification
(addition or subtraction) to federal taxable income. For
apportioning taxpayers, factors from the REIT or RIC
are included in the apportionment calculation of the
consolidated Oregon return (ORS 317.010 and supporting administrative rules).

•	IRC §139A federal subsidies for prescription drug
plans. For federal purposes, taxpayers can exclude
from taxable income certain federal subsidies for
prescription drug plans per IRC §139A. However, for
Oregon purposes, this federally excluded income is an
addition on the Oregon return (ORS 317.401).

•	Safe harbor lease agreements. Oregon doesn’t tie
to the federal safe harbor lease provisions. See ORS
317.349 and supporting administrative rules for details
about the adjustments required for Oregon.

•	IRC §631(a) treatment of timber isn’t recognized by
Oregon. Both beginning and ending inventories must
be adjusted for IRC §631(a) gain. For Oregon purposes,
there’s no taxable event until actual sale (ORS 317.362).

•	University venture development fund contributions.
Add to federal taxable income the amount of contributions used to calculate the University Venture Fund
Contribution credit that were deducted from federal
taxable income (ORS 315.640).

•	Losses of nonunitary corporations. Net losses of nonunitary corporations included in a consolidated federal
return must be eliminated from the Oregon return.
Net losses include the separate loss as determined
under Treasury Regulations adopted for IRC  §1502,
and deductions, additions, or items of income, expense,
gain, or loss for which the consolidated treatment is
prescribed. Include a schedule showing your computation of the total net loss eliminated [ORS 317.715(2)].

•	Unused business credits. Unused business credits
taken as a federal deduction under IRC §196 must be
added back to federal taxable income (ORS 317.304).
Line 3. Income after additions (line 1 plus line 2).

•	Losses of unitary insurance affiliates. If a unitary
insurance affiliate has a separate return filing requirement, they’re excluded from the consolidated Oregon
return. The insurance affiliate is treated as if it’s a nonunitary affiliate of its consolidated group and the loss
(if any) is an addition (ORS 317.715).

Subtractions
Line 4. Total subtractions from Schedule OR-ASC-CORP,
Section B. The amount by which an item of income is less
under Oregon law than federal law, or the amount by
which an allowable deduc­tion is greater under Oregon
law than federal law, is a subtraction on your Oregon
return.

•	Net federal capital loss deduction. If the Oregon and
federal capital loss deductions are different, add the
federal capital loss back to federal taxable income. The
Oregon capital loss will be deducted after subtractions (and apportionment for corporations required to
apportion income) to arrive at Oregon taxable income
(ORS 317.013 and supporting administrative rules).
150-102-021-1 (Rev. 10-17-23)	

Use Schedule OR-ASC-CORP, Section B, to report the
amount and description code of each difference. Use the
description code from the list in Appendix A. The total
of all subtractions is entered on Form OR-20-INC, line 4.
11	

2023 Form OR-20-INC Instructions

Subtractions include:	

•	Film production labor rebate. Subtract the amount
received as a labor rebate that’s included in federal taxable income (ORS 317.394).

•	Bad debt reserve addition of a financial institution
to the extent that the Oregon amount exceeds the
amount that’s allowed on the federal return. A subtraction is also made if the amortization of the federal
reserve is greater than the amortization of the Oregon
reserve (ORS 317.310).

•	Foreign derived intangible income (FDII) under IRC
Section 250. Oregon is connected with the FDII deduction on your federal return. Generally, the federal deduction amount is reported on federal Form 8993, Part IV,
line 8. Report your Oregon subtraction on Schedule
OR-ASC-CORP using code number 382. Don’t use
Form OR-DRD for this subtraction [SB 851 (2019)].

•	Charitable contribution. Subtract the amount by
which a corporation must reduce its charitable contribution deduction [IRC §170(d)(2)(B)] (ORS 317.307 and
OAR 150-317-0350).

•	Gain or loss on the sale of depreciable property. The
difference in gain or loss on the sale of business assets
when your Oregon basis is less than your federal basis
(ORS 317.356).

•	CPAR subtraction. If you’re an owner of a partnership that was subject to a partnership-level audit by
the IRS (or you’re an owner of a tiered partner of such
a partnership), you may have to increase or decrease
your Oregon income as a result of the audit. Report an
increase in income using addition code 187 or report a
decrease in income using subtraction code 384, whichever is applicable. Use these codes even if another
code is assigned for the specific type of increased or
decreased income (ORS 314.733). Visit our website for
more information.

•	Global intangible low-taxed income (GILTI) under
IRC Section 250. Oregon allows an 80 percent subtraction of GILTI amounts under IRC Section 951A that are
included in your Oregon income. Report the Oregon
subtraction on Schedule OR-ASC-CORP using code
number 381. Don’t use Form OR-DRD for this subtraction (ORS 317.267).
•	IC-DISC commission payments. For tax years beginning on or after January 1, 2013, a deduction is allowed
for commission payments made to an IC-DISC if
the DISC was formed on or before January 1, 2014
(ORS 317.283).

•	Deferred gain recognized from out-of-state disposition of property acquired in an IRC §1031 or §1033
exchange. See ORS 317.327 regarding the computation of the subtraction if gain or loss is recognized for
federal tax purposes but not taken into account in the
computation of Oregon taxable income.

•	Income of nonunitary corporations. Net income of nonunitary corporations included in a consolidated federal
return must be eliminated from the Oregon return. Net
income includes the separate taxable income, as determined under Treasury Regulations adopted for IRC
§1502, and any deductions, additions, or items of income,
expense, gain, or loss for which consolidated treatment
is prescribed. Include a schedule showing computation
of the total net income eliminated [ORS 317.715(2)].

•	Depletion. Subtract the Oregon allowance for depletion that is in excess of the federal deduction for depletion (ORS 317.374).
•	Depreciation differences. If your Oregon depreciation isn’t the same as your federal depreciation, the
difference is a required modification to your Oregon
return (ORS 317.301). Use Schedule OR-DEPR to determine the Oregon modification.

•	Income of unitary insurance affiliates. If a unitary
insurance affiliate has a separate return filing requirement, they’re excluded from the consolidated Oregon
return. The insurance affiliate is treated as if it’s a
nonunitary affiliate of its consolidated group and any
income is a subtraction (ORS 317.715).

•	Dividend deduction. A 70 percent deduction is allowed
for qualifying dividends regardless of geographic
source. An 80 percent deduction is allowed for dividends received from corporations whose stock is owned
20 percent or more. Use Oregon Form OR-DRD for computing the Oregon dividend deduction and include it
with your return (ORS 317.267).

•	Income on a composite return. A corporate owner of
a pass-through entity (PTE) may subtract its share of
distributive income that has already been reported on
an Oregon composite return. See Publication OR-OC
and OAR 150-314-0515 for more information.

•	Federal credits. Subtract the amount of expense not
deducted on the federal return attributable to claiming
a federal credit (ORS 317.303).

•	Interest on obligations of the U.S. and its instrumentalities included in Form OR-20-INC, line 1. This
applies to income tax filers only. Reduce the subtraction by any expenses incurred to produce this interest
income.

•	Federal investment tax credit on certain assets. If you
take a federal tax credit on certain assets, and your
federal basis is less than your Oregon basis, you must
recalculate the gain or loss on disposal of those assets
and subtract the difference (ORS 317.356).
150-102-021-1 (Rev. 10-17-23)	

•	Inventory costs. The costs allocable to inventory are
the same as those included in IRC §263A. Differences
12	

2023 Form OR-20-INC Instructions

in depreciation and depletion allocable to inventory
result in a modification [ORS 314.287(3)].

•	Taxes paid to a foreign country. You may subtract
from federal taxable income the taxes paid to a foreign
country upon the payment of interest or royalties arising from sources within such foreign country, if such
taxes are not deductible in arriving at federal taxable
income and if the interest or royalties are included in
arriving at Oregon taxable income [ORS 317.314.(3)].

•	IRC Section 245A foreign-source portion dividends.
Oregon allows a 100 percent subtraction of the foreignsource portion of dividends from certain foreign corporations under IRC Section 245A. The subtraction is
allowed only if the amount is included in federal taxable income reported on line 1 of your Oregon return.
Generally, the federal deduction amount is reported
on federal Form 1120, Schedule C, line 13. Report your
Oregon subtraction on Schedule OR-ASC-CORP using
code number 383. Don’t use Form OR-DRD for this
subtraction (ORS 317.267).

•	Work opportunity credit wages not deducted on the
federal return. Subtract the amount of wages that
weren’t deducted on the federal return because the
work opportunity credit was claimed (ORS 317.303).
Line 5. Net income before apportionment (line 3 minus
line 4). This amount is carried to Schedule OR-AP, part
2, line 1.

•	Losses from outside the United States. Subtract losses
from sources outside the United States, as defined in
IRC §862, not included in federal taxable income under
IRC §§861 to 864 (ORS 317.625).

Net loss and net capital loss deductions are entered on Schedule OR-AP for Form OR-20-INC filers.
Net loss deduction.

•	Manufactured dwelling park tenant payments made
under ORS 90.505 to 90.840 to compensate a tenant for
costs incurred due to the closure of the park may be
subtracted (ORS 317.092).

•	Enter the deduction on Schedule OR-AP-2, line 10a for
net losses assigned to Oregon during the preceding
taxable years (and not previously deducted). Enter as
a positive number.
•	Include a schedule showing your computations.
•	A net loss is the amount determined under IRC Chapter 1, Subtitle A, with the modifications specifically
prescribed under Oregon law.
•	The Oregon deduction is the sum of unused net losses
assigned to Oregon for preceding taxable years.
•	A net operating loss carryforward is required to be
reduced by the entire Oregon net income of intervening tax years [ORS 317.476(4)(b)].
•	Net losses can be carried forward up to 15 years.
•	Oregon doesn’t allow net losses to be carried back.
•	For losses, and built-in losses occurring before a
change in ownership [separate return loss year (SRLY)
limitations], Oregon is tied to the federal limitations
(IRC §382 and §384; ORS 317.476 and 317.478).
•	The total net loss deduction on a consolidated Oregon return is the sum of the net losses available to
each of the corporations subject to the limitations in
OAR 150-317-0460.
•	REITs, if qualified under IRC §856, aren’t allowed a net
loss deduction [ORS 317.476(5)].

•	Marijuana business expenses. ORS 317.363 allows
Oregon taxpayers filing a corporate excise or income
tax return to deduct business expenses otherwise
barred by IRC §280E if the taxpayer is engaged in marijuana-related activities authorized by ORS 475C.005 to
475C.525, or ORS 475C.700 to 475C.919.
•	Psilocybin business expenses. ORS 317.363 allows
Oregon corporation excise and income tax filers to
subtract certain business expenses otherwise barred
by IRC §280E if the corporation is engaged in psilocybin-related activities authorized by ORS 475A.210 to
475A.722, the Oregon Psilocybin Services Act. Use subtraction code 385 on Schedule OR-ASC-CORP.
•	REITs and RICs. A REIT or RIC meeting the federal
affiliate definition must be included in the consolidated Oregon return. This is an Oregon modification
(addition or subtraction) to federal taxable income. For
apportioning taxpayers, factors from the REIT or RIC
are included in the apportionment calculation of the
consolidated Oregon return (ORS 317.010 and supporting administrative rules).
•	Sale of manufactured dwelling park. The net gain
attributable to the sale of a manufactured dwelling
park to a tenant’s association, facility purchase association, or tenant’s association supported nonprofit
organization is exempt from tax (Note following ORS
317.401).

Net capital loss deduction.
•	Enter the deduction on Schedule OR-AP-2, line 10b.
Enter as a positive number.
•	Oregon allows a net capital loss deduction for losses
apportioned to Oregon and carried from another year.
•	The deductible loss is limited to net capital gain
included in Oregon income. Capital losses must be
carried back three tax years and then may be carried
forward for up to five tax years.
•	Include a schedule showing your computations
including the tax year the net capital loss originated
(ORS 317.476 and supporting administrative rules).

•	State of Oregon interest income included on line
2 (Form OR-20-INC only). Interest income from
obligations of the state of Oregon isn’t taxable if the
obligation was issued after May 24, 1961. Reduce the
subtraction by any expenses incurred to produce this
interest income.
150-102-021-1 (Rev. 10-17-23)	

13	

2023 Form OR-20-INC Instructions

Line 6. Apportionment percentage. Enter the apportionment percentage from Schedule OR-AP, part 1, line 23.

tax that was deferred from the last year of the C corporation (ORS 314.771).

Line 7. Oregon taxable income from Schedule OR-AP,
part 2, line 12.

Net income tax

Tax

Line 16. Net income tax (line 14 minus line 15). Income
filers don’t pay a minimum tax.

Line 8. Calculated income tax. See Appendix B for
computation.

Payments, penalty, interest, and UND

Line 9. Tax adjustments.

Line 17. Estimated tax payments, other prepayments,
and refundable credits (from Schedule ES on page 5).

Installment sales interest. If you owe interest on
deferred tax liabilities with respect to installment obligations under ORS 314.302, enter the amount as a positive
number. Include a schedule showing how you figured
the interest.

•	Fill in the total estimated tax payments made before
filing your Oregon return.
•	List name and FEIN of the payer only if different from
the corporation filing this return.
Note: Consolidated return filers. If estimated payments
were made under a different name, fill in the paying
corporation’s name and FEIN on Schedule ES for correct
application of estimated payments.

Line 10. Tax before credits (line 8 plus line 9).

Credits
For a list and description of Oregon corporation cred­its,
visit ­www.oregon.gov/dor.

Note: Missing or incomplete information on payment
made by an affiliate could result in a billing.

Important:
•	All credits are claimed on Schedule OR-ASC-CORP.
•	Use the description code from the list in Appendix A.
•	List credits and codes on the OR-ASC-CORP in the
order you want them used.
•	Generally, taxpayers must claim the full amount of a
credit allowed per year (ORS 314.078).

•	Include any refunds applied from other years on line 5.
•	Enter payments made with your extension or other
prepayments on line 6.
•	Fill in on line 7 the refundable credits from Schedule
OR-ASC-CORP, Section E.
•	Carry the total from line 8 to Form OR-20-INC, line 17.

Line 11. Total standard credits from Schedule OR-ASCCORP, Section C. Enter as a positive number.

Line 18. Withholding payments made on your behalf
from pass-through entity or real estate income. If taxes
were paid on the corporation’s behalf, enter the amount
on this line.

Line 12. Tax after standard credits (line 10 minus line
11).

There’s a requirement to withhold tax from the proceeds
of sales of Oregon real property by nonresidents. This
applies to individual nonresidents as well as C corporations that aren’t doing business in Oregon. The amount
to be withheld is the lesser of:

Line 13. Total carryforward credits from Schedule ORASC-CORP, Section D. Enter as a positive number.
Line 14. Income tax after standard an