Oregon Form 20 Instructions

Form 20 Instructions
2023 Form OR-20 Instructions, Oregon Corporation Excise Tax, 150-102-020-1
Form OR-20 Instructions
Oregon Corporation Excise Tax

2023

Contents
Purpose of Form OR-20........................................ 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........................................... 9
Payments................................................................................ 9
Assembling your return....................................................... 9

Mailing Addresses.................................................... 9
Form instructions

Who must file with Oregon?............................................... 4
Filing requirements: consolidated returns, unitary
	 business, insurance affiliates, separate returns........... 5
E-file........................................................................................ 5
Federal audit changes, Amended returns......................... 6
Protective claims................................................................... 6

Heading and checkboxes..................................................... 9
Questions.............................................................................. 11

Line instructions

Additions.............................................................................. 11
Subtractions......................................................................... 13
Tax......................................................................................... 16
Credits................................................................................... 16
LIFO benefit recapture....................................................... 17
Net excise tax....................................................................... 17
Payments, penalty, interest, and UND............................. 17
Schedule ES—Estimated tax payments, other
	 prepayments, and refundable credits......................... 17
Total due or refund............................................................. 18

Special filing requirements

Agricultural or horticultural cooperatives........................ 6
Broadcasters........................................................................... 7
Exempt organizations........................................................... 7
Homeowners associations................................................... 7
Insurers................................................................................... 7
Interest charge domestic international
	 sales corporations (IC-DISCs)......................................... 7
Limited liability companies (LLCs).................................... 8
Political organizations.......................................................... 8
Publicly traded partnerships............................................... 8
Real Estate Investment Trusts (REITs) and Regulated
	 Investment Companies (RICs)........................................ 8
Real Estate Mortgage Investment Conduits (REMICs)...... 9

Do you have questions?..................................... 19
Appendices

Appendix A, 2023 Schedule OR-ASC-CORP code list..... 20
Appendix B, 2023 Tax rates and minimum tax table..... 22
Appendix C, Alternative apportionment........................ 23

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.

150-102-020-1 (Rev. 10-17-23)	

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2023 Form OR-20 Instructions

taxpayer with a loss in tax year 2023 may carry their loss
to tax year 2020. Visit our website at w
­ ww.oregon.gov/dor
for additional information.

Purpose of Form OR-20
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
doing business in Oregon.

Credits
Agricultural Employer Overtime Tax Credit
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.

Important reminders
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 modify the computation of the credit
under certain conditions. See HB 2161 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

•	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).

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

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 1, 2023, and before January 1, 2029, and any tax year
to which the NOL may be carried back. For example, a

•		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

150-102-020-1 (Rev. 10-17-23)	

•		Cultural Trust contribution (ORS 315.675).........code 807
The following credits are extended to tax years beginning before January 1, 2030:

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2023 Form OR-20 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. This includes Oregon’s minimum tax. See ORS 314.505 to 314.525 and supporting
administrative rules.

Qualified semiconductor company research credit

If you don’t make estimated payments as required, you
may be subject to interest on underpayment of estimated
tax (UND). Refer to Form OR-37 if you have an underpayment of estimated tax.

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).

150-102-020-1 (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 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.

Filing information

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?
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
(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. Tax
credits can’t be used to reduce
minimum tax.

3.

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

4.

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.
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.
150-102-020-1 (Rev. 10-17-23)	

4	

2023 Form OR-20 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.

•	Included in a consolidated federal return;
•	Unitary; and
•	At least one of the affiliated corporations doing business 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
tax filers aren’t subject to corporate excise or minimum
tax. Corporation income tax laws are in Chapter 318 of
the Oregon Revised Statutes.

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.

What form do I use?

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:

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.

“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:

Unitary insurance affiliates. If a unitary insurance
affiliate has a separate return filing requirement, it’s
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.

•	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.

Corporations not doing business in Oregon, but with
income from an Oregon source, must file Form OR‑20‑INC.
Most corporations don’t fall within Oregon’s income tax
provisions.

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 Oregon taxable income,
begin with taxable income from the consolidated federal return and use Oregon additions or subtractions to
remove the nonunitary affiliates.

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 subject to the
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
to do so. Filing an unnecessary return may result in a billing for minimum tax.

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:
150-102-020-1 (Rev. 10-17-23)	

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
5	

2023 Form OR-20 Instructions

tax return, unless a waiver request has been approved by
us prior to the filing of the paper return.

Don’t amend your Oregon return if you amend the federal return to carry a net operating loss back to prior
years. Oregon allows corporations to carry net operating losses forward only.

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.

On the estimated tax payments line of your amended
Form OR-20, enter the net excise 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 www.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 of 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

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
For purposes of the corporate minimum tax only, the
Oregon sales of agricultural or horticultural cooperatives doesn’t include sales representing business done
with or for the cooperative’s members. If you’re an agricultural or horticultural cooperative, check the box in the
header for Ag co-op.

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.

Your Schedule OR-AP, part 1, must show all sales
in Oregon and elsewhere to correctly compute your
apportionment percentage. However, for minimum tax
purposes, show the amount of sales not done with or
for members of the co-op in the header of the Schedule OR-AP, under the heading “Describe the nature and
provide the location(s) of your Oregon business activities.” Include the description “Sales not done with or for
members of the co-op.”

If you filed Form OR-20-S, and later determined you
should file Form OR-20, amend your return using Form
OR-20 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.
150-102-020-1 (Rev. 10-17-23)	

Note: Generally, co-ops filing federal Form 1120-C
begin the Oregon return with line 25a from the federal
return (not line 28). You are also allowed a subtraction
for patronage dividends, which is taken on Schedule
OR‑ASC-CORP, code number 379 (ORS 317.010).
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2023 Form OR-20 Instructions

Broadcasters

membership dues, fees, and assessments from memberowners of residential units in the particular condominium or subdivision involved. Oregon follows the federal
definition of nonexempt function income.

SB 136 (2021) defines broadcasting sales and repeals the
interstate broadcaster provisions applicable before January 1, 2020.

Don’t file Form OR-20 if you don’t have nonexempt
function income for Oregon tax purposes. Only file a
copy of your federal Form 1120-H with us.

For tax years beginning on or after January 1, 2020, taxpayers with broadcasting sales must use an audience/
subscriber factor, as demonstrated through the use of
third-party ratings information or the taxpayer’s books,
papers, records, or memoranda, to source their broadcasting sales to Oregon. Taxpayers with broadcasting
sales may elect to apply their audience/subscriber factor
to all their gross receipts except sales of real property
and tangible personal property. In certain circumstances,
taxpayers may source receipts from advertising on or
licensing to subscription services using a statutorily prescribed 0.6% apportionment factor. See SB 136 for more
information.

File an Oregon Form OR-20, with a copy of federal Form
1120-H, if the association has taxable income. Homeowners association taxable income for Oregon is generally
the same as for federal purposes. It’s gross nonexempt
income less directly-related deductions, less the specific
$100 deduction. However, net capital gains are included
in the computation and receive no special treatment.
An association filing Oregon Form OR-20 is subject to
the greater of calculated excise tax or Oregon minimum
tax. For minimum tax purposes, include in “Oregon
sales” only Oregon nonexempt function income.

Exempt organizations

Insurers

If you’re an exempt organization under IRC §§501(c)
through (f), 501(j), 501(n), 521, or 529, you’re exempt from
Oregon corporation taxes [ORS 317.080 (1)–(8)]. Apply to
the IRS for exempt status, don’t apply to us. Two exceptions are nonprofit homes for the elderly and people’s
utility districts established under ORS Chapter 261.

Insurers that have a separate return filing requirement under ORS 317.710(5) and (7) can’t be included in
an Oregon consolidated return. Instead, they generally
determine Oregon corporate excise tax on a separate
basis. The remaining affiliates in the Oregon consolidated return compute their modified federal consolidated taxable income after exclusion of the insurer with
the separate return filing requirement. Also, the Oregon
consolidated return receives a 100 percent dividendsreceived deduction if a dividend is paid by an insurer
that has a separate return filing requirement. See Form
OR-20-INS and instructions for more information about
insurance company filing requirements.

If you’re exempt from Oregon tax and don’t have unrelated business taxable income (UBTI) as defined in IRC
§512, don’t file an Oregon tax return. UBTI is gross unrelated business income less allowable deductions, including a special $1,000 deduction.
If you have UBTI, file Form OR-20 and include a copy
of your federal Form 990-T. Organizations exempt from
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
corporations (IC-DISCs) (ORS 317.283, 317.635)

An exempt organization filing Oregon Form OR-20 is
subject to the greater of calculated excise tax based on
UBTI apportioned or allocated to Oregon or Oregon
minimum tax. For minimum tax purposes, include in
“Oregon sales” only gross unrelated business income
apportioned or allocated to Oregon. Tax-exempt gross
income isn’t included.

If your corporation is an IC-DISC, file Form OR-20 and
check the IC-DISC checkbox at the top of the form.
•	An IC-DISC formed on or before January 1, 2014 is
exempt from minimum tax. Complete your Form
OR-20 using the instructions below.
•	Commissions received by an IC-DISC formed on or
before January 1, 2014 are taxed at 2.5 percent.
•	An IC-DISC formed after January 1, 2014 isn’t exempt
from minimum tax. However, it’s disregarded to the
extent it has transactions with related parties. If you
have transactions other than with related parties, complete your Form OR-20 as a normal corporation filer,
and check the IC-DISC checkbox in the return header.

Note: Some religious organizations that qualify under
IRC § 501(d) may file as partnerships.

Homeowners associations
A homeowners association organized and operated
under IRC §528(c) may elect to be treated as a tax-exempt
organization (ORS 317.080). The association must make
the election no later than the time prescribed by law
for filing the return. A copy of the federal Form 1120-H
filed with the IRS will constitute this election when filed
with us. Tax-exempt status will only exempt the association from tax on the exempt function income, such as
150-102-020-1 (Rev. 10-17-23)	

The Oregon IC-DISC return is due by the 15th day of the
month following the due date of the federal return. For
example, a calendar-year federal Form 1120-IC-DISC is
due nine months after the year-end (September 15). The
Oregon return for the IC-DISC is due October 15.
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2023 Form OR-20 Instructions

If the 15th falls on a Saturday, Sunday, or legal holiday,
the due date is the next business day. No extensions are
allowed for IC-DISC returns per federal and Oregon laws.

Form OR-20 line instructions for IC-DISCs
(formed on or before January 1, 2014)

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.

Important: Check the IC-DISC box at the top of the form.

Political organizations

Line 1. Taxable income from the U.S. Corporation Income
Tax Return. Enter the “total commissions received”
reported for federal income tax purposes [federal
Form 1120-IC-DISC, Schedule B, column c, lines 1c, 2k, and
3g]. Carry this amount to:
•	Line 3—Income after additions;
•	Line 5—Income before net loss deductions; and
•	Line 9—Oregon taxable income.

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.

Line 10. Calculated excise tax. Multiply the amount
from line 9 by 2.5 percent. Enter the result. Carry this
amount to:

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

•	Line 14—Tax;
•	Line 16—Tax before credits;
•	Line 20—Excise tax after credits; and
•	Line 22—Net excise tax.

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

Publicly traded partnerships

Limited liability companies (LLCs)

A “publicly traded partnership” is a partnership treated
as a corporation for federal tax purposes under IRC §7704.

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.

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 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.

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.

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.

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.
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).
150-102-020-1 (Rev. 10-17-23)	

Distributions from a REIT or RIC to its shareholders are
treated the same as distributions from a corporation to
8	

2023 Form OR-20 Instructions

its shareholders for purposes of ORS chapters 316, 317,
and 318.

—	Contact phone.
°	 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.
•	Assembling your return. Assemble your Oregon
return forms in the following order:

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.

1.	 Form OR-20, Oregon Corporation Excise 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.	 Schedule OR-FCG-20, Farm Liquidation Long-Term
Capital Gain Tax Adjustment;
10.	 Other Oregon statements;
11.	 Oregon credit forms including notice of credit
transfers;
12.	 Copy of federal tax return and schedules; and
Form 7004, Federal extension.

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
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.
•	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 day falls on a
Saturday, Sunday, or legal holiday, the due date is the
next business day.

Mailing Addresses
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.)

•	Extensions. See the instructions below for the extension checkbox. When you file, include the extension as
the final page of your return.
•	Payments.

Refunds or no tax-due returns, mail to:
Oregon Department of Revenue
PO Box 14777
Salem OR 97309-0960

°	 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.
°	 Online payments. You may pay online for any
return at www.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.
150-102-020-1 (Rev. 10-17-23)	

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.)

Form instructions
Heading and checkboxes
•	OR-FCG-20 checkbox. A reduced tax rate is available
if you sold or exchanged capital assets used in farming. Complete Schedule OR-FCG-20 and check the box
in the header of the form.
•	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
9	

2023 Form OR-20 Instructions

you file. Check the extension checkbox on your Oregon return and include a copy of the extension after all
other enclosures.

°	 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.

	 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.

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

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

•	IC-DISC checkbox. Check this box if you are an ICDISC regardless of what date you were formed. See
“Special filing requirements” for more information.

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

•	Ag co-op checkbox. Check this box if your corporation
qualifies as an agricultural or horticultural cooperative and you’re determining Oregon sales for minimum tax purposes differently than the Oregon sales
reported on Schedule OR-AP, part 1. See “Special filing
requirements” for more information.

	 If you’re making an extension payment by mail, send
the payment to: Oregon Department of Revenue, PO
Box 14950, Salem OR 97309-0950.

•	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.

	 Include on your check:
°	 FEIN.
°	 “Extension.”
°	 Tax year beginning and ending dates.
°	 Contact phone.

•	Global intangible low-taxed income (GILTI) included
on federal return. If you included GILTI on your federal
return, check this box.

•	Form OR-37 checkbox. If you have an underpayment
of estimated tax, you must include a completed Form
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
months; and
°	 The short-period return is due to a qualified change
in accounting period per IRC §§441 to 444.

°	 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.

	Note: A short-period return doesn’t automatically constitute a qualified change in accounting period. A taxpayer that isn’t in existence for the entire year shouldn’t
check this box. This includes subsidiaries that join or
leave a consolidated filing group, and newly formed or
dissolved corporations.

•	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.

	 If you file a short-period return due to a qualified
change in accounting period and you’re subject to
the minimum tax, your minimum tax shall be apportioned as follows:

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

	 Annualize Oregon sales by multiplying actual Oregon
sales by 12 and dividing by the number of months in
the short period. Use the minimum tax table in Appendix B to determine minimum tax on annualized Oregon sales.

	 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:
150-102-020-1 (Rev. 10-17-23)	

	 Apportion the minimum tax determined above by
multiplying by the total number of months in the short
period and dividing it by 12.
10	

2023 Form OR-20 Instructions

•	Alternative apportionment checkbox. See Appendix
C for complete information. Check this box if you have
included a request with your return.

definition of a subsidiary in an affiliated group or a parent-subsidiary controlled group, see federal Form 1120,
Schedule K.

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).

Question G. Enter the total number of corporations
doing business in Oregon that are included in this return.
Question L. 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.

•	Legal name. Enter the corporation’s current legal
name as set forth in the articles of incorporation or
other legal document.

Question M. PL86-272 protected affiliate(s). Check this
box only if you or an affiliate included in this return
claim Oregon sales are protected from Oregon taxation
because of Public Law 86-272.

•	FEIN. Enter the FEIN of the corporation named as the
filer on the consolidated Oregon return.

Question N. Total Oregon sales.

•	DBA/ABN. If the corporation is doing business under
a different name, for example, DBA or ABN, enter that
name.

•	Apportioned returns. Enter the amount of Oregon
sales from Schedule OR-AP, line 22(a) and OAR
150-317-0540.

•	Current address. Always enter the corporation’s current address. If the address for the year you’re filing
has changed, don’t use the old address or our system
will revert your current address to the old address.

•	Nonapportioned returns. Enter the amount of sales
as defined by ORS 314.665. Generally, C corporations
doing business only within Oregon will calculate Oregon sales by adding:

Questions

°	 Gross receipts from sales of inventory (less returns
and allowances), equipment, and other assets;
°	 Gross rent and lease payments received; and
°	 Gross receipts from the performance of services.
	 Note: (This is a non-exclusive list.)

Questions A–C. Complete only if this is your first return
or the answer changed during the tax year.
Question D. Refer to the current list of North American
Industry Classification System (NAICS) codes found
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”.

Generally, for purposes of determining minimum tax,
the calculation for Oregon sales includes gross business
income amounts from federal Form 1120, lines 1c and 5
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
Oregon return. Complete Schedule OR-AF, Schedule of
Affiliates, and list only the corporations included in the
consolidated Oregon return that:

Line 1. Taxable income from U.S. corporation income
tax return. Enter the taxable income reported for federal
income tax purposes before net operating loss or special
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
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.

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.

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

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 are entered on Form OR-20, line 2.

150-102-020-1 (Rev. 10-17-23)	

11	

2023 Form OR-20 Instructions

Additions include:

return (ORS 317.301). Use Schedule OR-DEPR to determine the Oregon modification.

•	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 of 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
decreased income (ORS 314.733). Visit our website for
more information.

°	 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(w);
°	 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.

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

	 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).

•	Depreciation differences. If your Oregon depreciation isn’t the same as your federal depreciation, the
difference is a required modification to your Oregon

•	Interest income excluded from the federal return.
Oregon gross income includes interest on all state and
municipal bonds excluded for federal tax purposes.

150-102-020-1 (Rev. 10-17-23)	

12	

2023 Form OR-20 Instructions

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 minus 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).

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 are entered on Form OR-20, line 4.
Subtractions include:

•	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).

•	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).

•	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
local taxes, such as the Multnomah County Business
Income tax, are deductible, and aren’t required to be
added back (ORS 317.314).
150-102-020-1 (Rev. 10-17-23)	

•	Charitable contribution. Subtract the amount by
which a corporation must reduce its charitable contribution deduction under IRC §170(d)(2)(B) (ORS 317.307
and OAR 150-317-0350).
•	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
13	

2023 Form OR-20 Instructions

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.

when your Oregon basis is greater than your federal
basis (ORS 317.356).
•	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).

•	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.

•	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
IC-DISC was formed on or before January 1, 2014
(ORS 317.283 and 317.635).

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

•	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)].

•	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.
•	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 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).

•	Energy conservation payments. Any amount received
as a cash payment for energy conservation measures
is exempt from Oregon excise tax (ORS 469.631 to
469.687). Subtract any amount that’s included in federal taxable income (ORS 317.386).

•	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 clai