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2022
Form OR-20-INC Instructions

Oregon Corporation Income Tax

Contents

Purpose of Form OR-20-INC ............................. 2 Filing checklist
Important reminders ............................................ 2 Due date of return, Extensions .......................................... 7
Payments ............................................................................... 7
What’s new and Looking ahead ...................2 Assembling you return .......................................................7
Estimated tax payments ..................................... 3
Mailing addresses ....................................................7
Filing information
Who must file with Oregon? Excise or income tax? ....... 4 Form instructions
What form do I use? .............................................................4 Heading and checkboxes ....................................................7
Filing requirements: consolidated returns, unitary Questions ...............................................................................8
business, insurance affiliates, separate returns .......... 4
E-file .......................................................................................5 Line instructions
Federal audit changes ..........................................................5 Additions ...............................................................................9
Amended returns ................................................................. 5 Subtractions ........................................................................ 11
Protective claims ..................................................................6 Tax ........................................................................................ 13
Credits .................................................................................. 13
Special filing requirements LIFO benefit recapture ...................................................... 13
Agricultural or horticultural cooperatives .......................6 Net income tax .................................................................... 14
Broadcasters .......................................................................... 6 Payments, penalty, interest, and UND ............................ 14
Exempt organizations ..........................................................6 Schedule ES—Estimated tax payments, other
Homeowners associations .................................................. 6 prepayments, and refundable credits......................... 14
Insurers .................................................................................. 6 Total due or refund ............................................................ 15
IC-DISCs ...............................................................................6
Limited liability companies (LLCs) ................................... 6 Do you have questions? .................................... 15
Political organizations ......................................................... 6
Publicly traded partnerships .............................................. 6 Appendices
Real Estate Investment Trusts (REITs) and Regulated Appendix A, 2022 Schedule OR-ASC-CORP code list ... 16
Investment Companies (RICs) ....................................... 6 Appendix B, 2022 Tax rates ............................................... 18
Real Estate Mortgage Investment Conduits (REMICs) .... 7 Appendix C, Alternative apportionment ....................... 19

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

Go electronic!
Fast • Accurate • Secure
File corporation tax returns through the Federal/State Electronic Filing Program. See “E-file.”

Visit us online: www.oregon.gov/dor

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

150-102-021-1 (Rev. 10-28-22) 1 2022 Form OR-20-INC Instructions

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                                                               If a corporation manufactures or sells psilocybin prod-
Purpose of Form OR-20-INC                                      ucts,  operates a psilocybin service center, or  facilitates 
                                                               psilocybin  services  licensed  by  the  Oregon  Health 
Use Form OR-20-INC, Oregon Corporation Income 
                                                               Authority (OHA) under ORS Chapter 475A, the corpo-
Tax Return, to calculate and report the Oregon corpo-
                                                               ration may subtract certain business expenses on the 
rate income tax liability of a business entity taxable as 
                                                               Oregon return that can’t be deducted on the federal 
a C corporation with Oregon sources of income but not 
                                                               return due to IRC §280E. Federal law prohibits deduc-
doing business in Oregon. 
                                                               tions for certain business expenses if the business 
                                                               involves the cultivation, manufacture, distribution, or 
Important reminders                                            sale of certain controlled substances. Oregon law, how-
                                                               ever, allows a subtraction for the same ordinary and 
If your registered corporation or insurance company            necessary  expenses  incurred  for  the  business  that  are 
isn’t doing business in Oregon and has no Oregon-              allowed for other types of businesses operating in this 
source income, then you don’t need to file a corporation       state. If the expense would have been allowed for fed eral 
tax return.                                                    purposes, but the business falls within the Controlled 
Revenue Online. Revenue Online provides convenient,            Substances Act (21 U.S.C. Sections 801 et seq.), a subtrac-
secure access to tools for  managing your Oregon tax           tion is allowed on your Oregon return. 
account. With Revenue Online, you may:
                                                               Credits
• View your tax account.
• Make payments.                                               Individual Development Account (IDA) donations 
• View correspondence we sent you.                             (ORS 315.271)
• Check the status of your refund.                             For tax years beginning on or after January 1, 2022 
For more information and instructions on setting up            and before January 1, 2028, this credit is allowed to be 
your Revenue Online account, visit   www.oregon.gov/           claimed for the prior year if the donation is made not 
dor.                                                           later than April 15 following December 31 of the tax year 
                                                               for which the credit is claimed. This change is effective 
                                                               for tax years 2022 through 2027, for donations made prior 
What’s new                                                     to April 15, 2028. See HB 2433 (2021).
Note: Not all information in this section pertains to all      Oregon affordable housing lender’s credit (ORS 
taxpayers or form types. If applicable, refer to House Bills   317.097)
(HB) or Senate Bills (SB) as shown.                            Oregon statute was amended to allow a financial insti-
Visit   www.oregon.gov/dor for possible updates to             tution to claim the tax credit by purchasing bonds if 
these instructions.                                            the bond proceeds are used to finance the purchase of 
                                                               afford able housing. These amendments apply between 
General                                                        January 1, 2022 and January 1, 2026. See HB 2433 (2021).

Tie to federal tax law                                         Expired credits
In general, Oregon is tied to the federal definition of tax-   The following tax credits are no longer available, includ-
able income as of December 31, 2021; however, Oregon is        ing carryforwards:
still disconnected from: 
                                                               • Biomass production/collection (ORS 315.141) ...code 838
• Federal subsidies for prescription drug plans (IRC           • Pollution control facilities (ORS 315.304) ...........code 857
§139A; ORS 317.401).                                           • Reforestation of underproductive forestlands 
• Deferral of certain deductions for tax years beginning       (ORS 315.104) ..........................................................code 867
on or after January 1, 2009 and before January 1, 2011         • Renewable Energy Development Fund contributions 
may require subsequent Oregon modifications (IRC               (ORS 315.326) ..........................................................code 859
§168(k) and §179; ORS 317.301). 

Psilocybin business expenses                                   Looking ahead

ORS 317.363 allows Oregon corporation excise and income 
                                                               NOL carryback
tax filers to subtract certain business expenses otherwise 
barred by IRC §280E if the corporation is engaged in psi-      SB 1524 (2022) allows taxpayers who use NAIC codes 111 
locybin-related activities authorized by ORS 475A.210 to       or 112 (referring to taxpayers engaged in crop produc-
475A.722, the Oregon Psilocybin Services Act. Use sub-         tion, animal production or aquaculture) to claim a three-
traction code 385 on Schedule OR-ASC-CORP.                     year NOL carryback. The three-year NOL carryback first 
150-102-021-1 (Rev. 10-28-22)                                2                   2022 Form OR-20-INC Instructions

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applies in tax years beginning on or after January 1, 2023, EFT. You must make your Oregon estimated payments
and before January 1, 2029, and any tax year to which the by EFT if you’re required to make your federal estimated
NOL may be carried back. For example, a taxpayer with a payments by EFT. We may grant a waiver from EFT pay-
loss in tax year 2023 may carry their loss to tax year 2020. ments if you’d be disadvantaged by the requirement
(ORS 314.518 and supporting administrative rules).
Tax credits If you don’t meet the federal requirements for manda-
HB 4002 (2022) creates a refundable tax credit for over- tory EFT payments, you may still make voluntary EFT
time paid to agricultural workers. The tax credit equals a payments.
percentage of actual agricultural worker overtime costs You can make EFT payments through Revenue Online or
paid by the taxpayer. The exact amount of the percent- through your financial institution. To learn more about
age depends on the year the overtime is paid, how many Revenue Online or to make an EFT payment, visit www.
agricultural workers the taxpayer employs, and the type oregon.gov/dor. If you pay by EFT, don’t send Form
of agriculture the taxpayer practices. The credit applies OR-20-V, Oregon Corporation Tax Payment Voucher.
to tax years beginning on or after January 1, 2023, and
before January 1, 2029, and taxpayers will apply for the Mail. If paying by mail, send each payment with a Form
tax credit through the department. Note that this tax OR-20-V, payment voucher, to: Oregon Department of
credit can offset corporation minimum tax determined Revenue, PO Box 14950, Salem OR 97309-0950.
under ORS 317.090.
Include on your check:
SB 1502 (2022) creates a non-refundable tax credit equal • Federal employer identification number (FEIN).
to the stumpage value of timber (plus cost of appraisal • Tax year beginning and ending dates.
and cost of filing and recording a deed restriction, minus • Contact phone.
costs of transportation to a mill) left standing on the land
of a small forestland owner. The amount of the tax credit Estimated tax payments’ worksheet
is certified by the Department of Forestry. The tax credit
applies to tax years beginning on or after January 1, 2023. (Keep for your records—don’t file with your payment.)

1. Oregon net income expected in 1.
Estimated tax payments upcoming tax year.
2. Tax on Oregon net income (see 2.
Requirements Appendix B).
Oregon estimated tax payment requirements aren’t the 3. Subtract tax credits allowable in 3.
same as federal estimated tax payment requirements. upcoming tax year.
You must make estimated tax payments if you expect to
4. Net tax (line 2 minus line 3). 4.
owe tax of $500 or more. See ORS 314.505 to 314.525 and
supporting administrative rules. If the amount on line 4 is less
than $500, stop. You don’t have
If you don’t make estimated payments as required, you to make estimated tax payments.
may be subject to interest on underpayment of estimated Caution: If your final tax
tax (UND). Refer to Form OR-37 if you have an under- liability when you file your
payment of estimated tax. return is $500 or more, you may
be subject to UND.
Payment due dates
5. Amount of each payment. 5.
Estimated tax payments are due quarterly, as follows: (Divide line 4 by the number of
payments you need to make.
• Calendar year filers: April 15, June 15, September 15,
This is usually 4.)
and December 15.
• Fiscal year filers: The 15th day of the 4th, 6th, 9th, and If your expected net tax changes during the year, refig-
12th months of your fiscal year. ure your estimated tax payments using the Estimated tax
• If the due date falls on a Saturday, Sunday, or legal payments’ worksheet.
holiday, use the next regular business day.
To avoid additional charges for UND, you must pay the
amount of any prior underpayment plus the amount of
Payment options
the current required payment.
Important: For details about making payments with
Example: During the year, Corporation A’s expected net
your return, see “Filing checklist.”
tax increased from $2,000 to $6,000. Corporation A made
Estimated payments may be made by electronic funds timely first and second quarter estimated payments of
transfer (EFT), online, or by mail. $500 before its expected net tax increased.
150-102-021-1 (Rev. 10-28-22) 3 2022 Form OR-20-INC Instructions

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Corporation A should make four payments of $1,500 each Income tax is for corporations not doing business in
during the year. Because of its increased net tax, Corpo- Oregon, but with income from an Oregon source. Income
ration A will be subject to UND charges for the first and tax filers aren’t subject to corporate excise or minimum
second quarters. To avoid UND charges for the third and tax. Corporation income tax laws are in Chapter 318 of
fourth quarters, Corporation A must make timely pay- the Oregon Revised Statutes.
ments of $3,500* for the third quarter and $1,500 for the
fourth quarter. What form do I use?
*$1,000 for the first-quarter underpayment, plus $1,000 Except as provided by Pub.L. 86-272, all corporations
for the second-quarter underpayment, plus $1,500 for the doing business in Oregon must file Form OR-20, and
required third-quarter installment equals $3,500. 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
Filing information
www. sos.oregon.gov.
Who must file with Oregon? “Doing business” means carrying on or being engaged
Corporations that are doing business in Oregon, or with in any profit-seeking activity in Oregon. A taxpayer
income from an Oregon source, are required to file an having one or more of the following in this state is clearly
Oregon corporation tax return. If you have tangible doing business in Oregon:
or intangible property or other assets in Oregon, any • A stock of goods.
income you receive from that property or assets is Ore- • An office.
gon-source income. Public Law (Pub.L.) 86-272 provides • A place of business (other than an office) where affairs
exceptions to the Oregon filing requirement for certain of the corporation are regularly conducted.
corporations doing business in Oregon. • Employees or representatives with activities of which
go beyond the mere solicitation of orders for sales of
Exemption for emergency service providers. An out-
tangible personal property.
of-state emergency service provider is exempt from tax
• An economic presence through which the taxpayer
when operating solely for the purposes of performing
regularly takes advantage of Oregon’s economy to pro-
disaster or emergency-related work on critical infrastruc-
duce income.
ture. Disaster or emergency-related work conducted by
an out-of-state business may not be used as the sole basis Corporations not doing business in Oregon, but with
for determining that a corporation is doing business in income from an Oregon source generally must file
Oregon. Form OR-20-INC. There is no minimum tax for Form
OR-20-INC filers. Most corporations don’t fall within
Note: Oregon follows the federal entity classification
Oregon’s income tax provisions.
regulations. If an entity is classified or taxed as a corpo-
ration for federal income tax purposes, it will be treated Corporations not doing business in Oregon, and with
as a corporation for Oregon tax purposes. no Oregon source income, even if incorporated in or
registered to do business in the state, aren’t required to
Excise or income tax? file a corporation tax return.
Oregon has two types of corporate taxes: excise and
Filing requirements
income. Excise tax is the most common. Most corpora-
tions don’t qualify for Oregon’s income tax. Consolidated federal returns (ORS 317.705–317.725). If a
corporation is a member of an affiliated group of corpo-
Excise tax is a tax for the privilege of doing business
rations that filed a consolidated federal return, it must
in Oregon. It’s measured by net income. Excise tax fil-
file an Oregon return based on that federal return. An
ers are subject to corporate minimum tax. Corporation
Oregon return, based on the federal consolidated return,
excise tax laws are in Chapter 317 of the Oregon Revised
is required when two or more affiliated corporations are:
Statutes.
• Included in a consolidated federal return;
Note: All interest on obligations of the 50 states and their
• Unitary; and
subdivisions are subject to Oregon excise tax. Interest on
• At least one of the affiliated corporations doing busi-
obligations of the United States and its instrumentalities
ness in Oregon or have Oregon-source income.
are also subject to tax if the interest is taxable under the
Internal Revenue Code and Congress has not chosen to Note: S corporations can’t be included in consolidated
prevent the states from taxing the interest in question. A federal returns. IRC §1361(b) provides that a corporation
taxpayer has the burden of showing that Oregon can’t that’s a Qualified Subchapter S Subsidiary (QSSS) isn’t
tax the interest on a federal obligation. treated as a separate corporation. All income, deductions,
150-102-021-1 (Rev. 10-28-22) 4 2022 Form OR-20-INC Instructions

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and credits of the QSSS will be treated as belonging to          Federal or other state audit changes
the parent S corporation.
                                                                 If the IRS or other taxing authority changes or corrects 
Unitary business. A business that has, directly or indi-         your federal or other state return for any tax year, you 
rectly between members or parts of the enterprise, either        must notify us. File an amended Oregon return and 
a sharing or an exchange of value shown by:                      include a copy of the federal or other state audit report. 
• Centralized management or a common executive force,            Mail this separately from your current year’s return.
• Centralized administrative services or functions result-       If you don’t amend or send a copy of the federal or other 
ing in economies of scale, or
                                                                 state report, we have two years from the date we’re noti-
• Flow of goods, capital resources, or services showing 
                                                                 fied of the change to issue a deficiency notice. To receive 
functional integration.
                                                                 a refund, you must file a claim for refund of tax within 
Unitary insurance affiliates. If a unitary insurance             two years of the date of the federal or other state report.
affiliate has a separate return filing requirement, they’re 
excluded from the Oregon return of the consolidated              Amended returns
group. The insurance affiliate is treated as if it’s a non-
unitary affiliate of the consolidated group by subtract-         Oregon doesn’t have an amended return form for corpo-
ing income or adding losses to federal taxable income.           rations. Use the form for the tax year you’re amending 
The other members of the insurer’s federal consolidated          and check the amended box. Always use your current 
group receive a 100 percent dividend-received deduction          address. If your address has changed, don’t use your old 
for any dividend received from the insurer. See “Addi-           address or our system will revert your current address 
tions” and “Subtractions” below.                                 to the old address.
Separate federal returns.     Any corporation that files         Fill in all amounts on your amended return, even if 
a separate federal return must file a separate Oregon            they’re the same as originally filed. If you’re amend-
return  if  it’s  doing  business  in  Oregon  or  has  income   ing to change additions, subtractions, or credits, include 
from an Oregon source. However, see special filing               detail of all items and amounts, including carryovers.
requirements for REITs.
                                                                 If you change taxable income by filing an original or 
A corporation subject to Oregon taxation must also file          amended federal or other state return, you must file an 
a separate Oregon return if it was included in a con-            amended Oregon return within    90 days of when the 
solidated federal return, but wasn’t unitary with any of         original or amended federal or other state return is filed 
the other affiliates. To determine your Oregon taxable           (ORS 314.380). Include a copy of your original or amended 
income, take the taxable income from the consolidated            federal or other state return with your amended Oregon 
federal return and use Oregon additions or subtractions          return and explain the changes. 
to remove the nonunitary affiliates. 
                                                                 If  you  filed  Form  OR-20-S,  and  later  determined  you 
E-file                                                           should file Form OR-20-INC, amend your return using 
                                                                 Form OR-20-INC and check the amended box. 
If you’re required to e-file with the IRS, you’re also 
required to e-file for Oregon. We accept calendar year,          You may make payments online for your amended 
fiscal year, short year, and amended electronic corpora-         return at  www.oregon.gov/dor.
tion tax returns utilizing the IRS Modernized e-file plat-       Don’t  make payments  for amended returns with EFT. 
form (MeF). Beginning January 2023, we’ll accept e-filed         This also applies to e-filed amended returns. For paper 
returns for tax year 2022, and will continue accepting 
                                                                 returns, you may pay online or include a check or money 
returns for 2021 and 2020. 
                                                                 order with your return. For e-filed returns, you may pay 
Your tax return software also allows you to make elec-           online or send a check or money order separately. If you 
tronic payments when e-filing your original return.              mail your payment separate from your return, write 
Note: Your paper return may be rejected if you’re                “Amended”  on  the  payment  and  include  a  completed 
required to electronically file your Oregon corporation          Form OR-20-V with the amended box checked.
tax return, unless a waiver request has been approved by         Don’t amend your Oregon return if you amend the fed-
us prior to the filing of the paper return.                      eral return to carry a net operating loss back to prior 
If you’d like to request a waiver, send an email with            years. Oregon allows corporations to  carry net operat-
the FEIN, tax year, and reason you’re unable to e-file to        ing losses forward only.
bus.electronicfiling@ dor.oregon.gov, prior to  paper-fil-       On the estimated tax payments   line on your amended 
ing your return.                                                 Form OR-20-INC, enter the net income tax per the origi-
For a list of software vendors or for more information,          nal return or as previously adjusted. Don’t include any 
search “e-filing” at  www.oregon.gov/dor.                        penalty or interest portions of payments already made.
150-102-021-1 (Rev. 10-28-22)                                  5                                 2022 Form OR-20-INC Instructions

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If paying additional tax with your amended return, you        If an LLC is part of a corporation’s overall business oper-
must include interest with your payment. Interest is fig-     ations and is treated as a partnership, include the corpo-
ured from the day after the due date of your original         ration’s ownership share of LLC property, payroll, and 
return up to the day we receive your full payment. See        sales in the corporation’s apportionment percentage cal-
“Interest rates.”                                             culation on Schedule OR-AP (ORS 314.650 and support-
                                                              ing administrative rules).
Pay all tax and interest due with your amended return 
or within 30 days after receiving a billing notice from us    Foreign LLCs are identified as unincorporated associa-
to avoid being charged a 5 percent late payment penalty.      tions organized under the laws of a state other than Ore-
                                                              gon, or a foreign country. Oregon’s definition of a foreign 
Protective claims                                             LLC includes an unincorporated association organized 
                                                              under the laws of a federally recognized American 
Don’t file an  amended return as a protective claim.          Indian tribe, no matter when organized.
Use Oregon Form OR-PCR,       Protective Claim for Refund, 
150-101-184, when your claim to a refund is contingent        Political organizations
on a pending court decision or legislative action. Notify 
us within 90 days of the final determination by filing an     Political organizations (for example, campaign commit-
amended return. Don’t file an amended return before           tees and political parties) normally don’t pay state or fed-
the pending action is final.                                  eral taxes. However, income earned from investments is 
                                                              taxable. Examples include interest earned on deposits; 
                                                              dividends from contributed stock, rents, or royalties; and 
Special filing requirements                                   gains from the sale of contributed property. We follow 
                                                              the federal definitions of political organizations and tax-
See Oregon Corporation Excise Tax Form OR-20 Instructions,    able income.
for filing information for the following entity types:
                                                              A political organization that isn’t incorporated and hasn’t 
• Agricultural or horticultural cooperatives.                 elected to be taxed as a corporation should file a personal 
• Broadcasters.                                               income tax return [ORS 316.277(2)].
• Exempt organizations.
• Homeowners associations.                                    For more information, including how to file your return, 
• Insurers.                                                   go to  www.oregon.gov/dor/business.

• IC-DISCs.                                                   Publicly traded partnerships
(These entities don’t file Form OR-20-INC.)
                                                              A “publicly traded partnership” is a partnership treated 
                                                              as a corporation for federal tax purposes under IRC §7704.
Limited liability companies (LLCs)
                                                              The partners in a publicly traded partnership aren’t 
Oregon follows federal law in determining how an LLC 
                                                              subject to tax on their distributive shares of partnership 
is taxed. Federal law doesn’t recognize an LLC as a clas-
                                                              income. A publicly traded partnership taxed as a corpo-
sification  for  federal  tax  purposes.  An  LLC  business 
                                                              ration must file a Form OR-20 if doing business in Ore-
entity must file a corporation, partnership, or sole pro-
                                                              gon, or Form OR-20-INC if not doing business in Oregon, 
prietorship tax return, depending on elections made by 
                                                              but is receiving Oregon-source income.
the LLC and the number of members. 
A multi-member LLC can be either a partnership or a           Real Estate Investment Trusts (REITs) and 
corporation, including an S corporation. A single mem-        Regulated Investment Companies (RICs)
ber LLC (SMLLC) can be either a corporation or a single 
member “disregarded entity.” Refer to federal law for         A REIT or RIC that isn’t included in a federal consoli-
more information and requirements.                            dated return based on the provisions of IRC §1504(b)(4) 
                                                              must be included in the Oregon consolidated return. 
An LLC taxed as a C corporation must file Form OR-20          These REITs or RICs are subject to the provisions of 
if doing business in Oregon, or Form OR-20-INC if not         ORS 317.715 and supporting administrative rules. For 
doing business in Oregon but receiving Oregon-source          apportioning taxpayers, factors from the REIT or RIC are 
income. The  LLC must  file Form OR-20-S  if the  entity      included in the apportionment calculation of the consoli-
files federal Form 1120-S.                                    dated Oregon return.
An LLC taxed as a partnership must file Form OR-65,           A REIT or RIC that isn’t required to be included in an 
Oregon Partnership Return,    if doing business in Oregon,    Oregon consolidated return is subject to tax under ORS 
or if receiving Oregon-source income, or if it has any        chapter 317 or 318 and calculates their Oregon apportion-
Oregon resident members. If the LLC has a corporate           ment factors and Oregon net income in the same manner 
member, the member is taxed on its share of the LLC’s         as a corporation with a separate filing requirement under 
Oregon income.                                                ORS 317.710. REITs or RICs doing business in Oregon are 
150-102-021-1 (Rev. 10-28-22)                               6                           2022 Form OR-20-INC Instructions

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subject to Oregon minimum tax. Business trusts that ° Making check or money order payments with your
qualify as REITs filing separate returns aren’t allowed paper return. Make your check or money order pay-
an Oregon deduction for net losses of prior years. able to Oregon Department of Revenue. Write the
following on your check or money order:
Distributions from a REIT or RIC to its shareholders are
— Filer FEIN.
treated the same as distributions from a corporation to
— Tax year beginning and ending dates.
its shareholders for purposes of ORS chapters 316, 317,
— Contact phone.
and 318.
° To speed up processing of your return:
— Don’t use Form OR-20-V payment voucher.
Real Estate Mortgage Investment Conduits
— Don’t staple payment to the return.
(REMICs) — Don’t send cash or postdated checks.
A REMIC isn’t subject to Oregon tax; the income is — Don’t use red or purple or any gel ink.
taxable to the holders of the REMIC’s interests under • Assembling your return. Assemble your Oregon
ORS Chapter 316, 317, or 318, whichever is applicable. A return forms in the following order:
REMIC must file Form OR-20-INC if it receives prohib-
ited transaction income from Oregon sources. 1. Form OR-20-INC, Oregon Corporation Income Tax
Return;
All REMICs required to file must include a complete 2. Schedule OR-AP, Apportionment of Income for Corpo-
copy of federal Form 1066. The REMIC must also include rations and Partnerships;
a federal Schedule Q for each residual interest holder for 3. Schedule OR-AF, Schedule of Affiliates;
each quarter of the tax year. Report the amount of net 4. Schedule OR-PI, Schedule of Partnership Information;
income from prohibited transactions from federal Form 5. Schedule OR-ASC-CORP, Oregon Adjustments;
1066 Schedule J (ORS 314.260). 6. Form OR-37, Underpayment of Oregon Corporation
Estimated Tax;
7. Form OR-DRD, Dividends-Received Deduction.
Filing checklist
8. Form OR-24, Like-Kind Exchanges/Involuntary
Rounding to whole dollars. Enter amounts on the Conversions;
return and accompanying schedules as whole dollars 9. Other Oregon statements;
only. Example: $4,681.55 becomes $4,682; and $8,775.22 10. Oregon credit forms including notice of credit transfers;
becomes $8,775. 11. Copy of federal tax return and schedules;
12. Form 7004, Federal extension.
• Due date of your return. Returns are due by the 15th
day of the month following the due date of your fed-
eral corporation return. When the 15th falls on a Sat- Mailing Addresses
urday, Sunday, or legal holiday, the due date is the next
Tax-due returns, with or without payment, mail to:
business day.
Oregon Department of Revenue
• Extensions. See the instructions below for the exten- PO Box 14790
sion checkbox. When you file, include the extension as Salem OR 97309-0470
the final page of your return. (Do NOT include a payment voucher.)
• Payments. Refunds or no tax-due returns, mail to:
Oregon Department of Revenue
° Payments received after the original due date will be
PO Box 14777
applied first to penalty, then to interest, and then to
Salem OR 97309-0960
tax [ORS 305.265(13)].
° Estimated payments and prepayments. Identify all Check or money order payments only, mail to:
estimated payments claimed by completing Sched- Oregon Department of Revenue
ule ES on page 5 of your return. List all payments that PO Box 14950
were submitted prior to filing your return. Include Salem OR 97309-0950
the corporation name and FEIN if a payment was (Include Form OR-20-V payment voucher.)
made by an affiliate of the filing corporation. Miss-
ing or incomplete information on payments made by
an affiliate could result in a billing. Form instructions
° Online payments. You may pay online for any
Heading and checkboxes
return at www.oregon.gov/dor. Search “payments.”
° Making electronic payments with your e-filed • Extension checkbox. For an Oregon extension when
return. We accept electronic payments when e-filing you’re also filing for a federal extension: Send a copy
your original return. of the federal extension with the Oregon return when
150-102-021-1 (Rev. 10-28-22) 7 2022 Form OR-20-INC Instructions

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you file. Check the extension checkbox on your Ore-           ° The corporation reported deferred gain on a federal 
gon return and include a copy of the extension after all    Form 8824;
other enclosures.                                             ° All or part of the property exchanged or given up 
                                                            was located in Oregon; and
  For an “Oregon only” extension: Answer question 1 on 
                                                              ° All or part of the acquired property was located out-
federal extension Form 7004, write “For Oregon Only” 
                                                            side of Oregon.
at the top of the form and include it with your Oregon 
return when you file. Check the extension checkbox on         For a more detailed explanation, see ORS 314.650 and 
the Oregon return.                                          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 exten sion’s due date. Don’t    • Federal Form 8886 checkbox and reportable transac-
send the extension until you file your Oregon return.       tions. If you’re required to report listed or reportable 
                                                            transactions to the IRS on federal Form 8886, you must 
  More time to file doesn’t mean more time to pay your 
                                                            check this box. We’ll assess penalties if you don’t com-
tax. To avoid penalty and interest, pay tax due prepay-
                                                            ply with this requirement.
ments online, or by mail with Form OR-20-V, on or 
before the original due date of your return. Note: Fil-     • Global intangible low-taxed income (GILTI) included 
ing Form OR-20-V isn’t an extension of time to file your    on federal return.  If you included GILTI on your fed-
tax return.                                                 eral return, check this box.
  If you’re making an extension payment by mail, send       • Alternative apportionment checkbox. See Appendix 
the payment to: Oregon Department of Revenue, PO            C for complete information. Check this box if you have 
Box 14950, Salem OR 97309-0950.                             included a request with your return.
  Include on your check:                                    Name. Generally, a consolidated Oregon return is filed 
— FEIN.                                                     in the name of the common parent corporation. If the 
— “Extension.”                                              parent corporation isn’t doing business in Oregon, file 
— Tax year beginning and ending dates.                      the return in the name of the member of the group hav-
— Contact phone.                                            ing the greatest presence in Oregon. “Having the great-
                                                            est presence” means that the member has the largest 
• Form OR-37 checkbox.        If you have an underpayment   Oregon property value as determined under ORS 314.655 
of estimated tax, you must include a completed Form         (see Schedule OR-AP and OAR 150-317.0540).
OR-37. Check the Form 37 box in the header of your 
return.                                                     • Legal  name. Enter  the corporation’s  current  legal 
                                                            name as set forth in the articles of incorporation or 
  Use Form OR-37 to:
                                                            other legal document. 
  ° Calculate the amount of underpayment of estimated       • FEIN. Enter the FEIN of the corporation named as the 
tax;                                                        filer on the consolidated Oregon return.
  ° Compute the amount of interest you owe on the under-    • DBA/ABN. If the corporation is doing business under 
payment; or                                                 a different name, for example, DBA or ABN, enter that 
  ° Show you meet an exception to the payment of            name.
interest.                                                   • Current address. Always enter the corporation’s cur-
• REIT/RIC checkbox. If you participated in a REIT or       rent address. If the address for the year you’re filing 
RIC, you must check the appropriate box in the header       was different, don’t use the old address or our system 
area of the Oregon tax return.                              will revert your current address to the old address.

• Amended checkbox. Check the amended box if this is 
                                                            Questions
an amended return.
                                                            Questions A–C. Complete only if this is your first return 
• Form OR-24 checkbox.        Corporations may  defer, 
                                                            or the answer changed during the tax year.
for Oregon tax purposes, all gains realized in the 
exchange of like-kind property and involuntary con-         Question D. Refer to the current list of North American 
versions under IRC §1031 or §1033, even though the          Industry Classification System (NAICS) codes found 
replacement property is outside Oregon. Oregon will         with your federal tax return instructions. Only enter the 
tax the deferred gain when it’s included in federal tax-    code if this is your first return, the current code is dif-
able income.                                                ferent than you reported last year, or your code begins 
                                                            with “111” or “112”.
  Include a copy of your Oregon Form OR-24, Like-Kind 
Exchanges/Involuntary Conversions,  150-800-734, with       Question E(1). Check this box if you filed a consolidated 
your Oregon return and check the Form OR-24 box if          federal return. Include a list of the corporations included 
all of the following apply:                                 in the consolidated federal return.
150-102-021-1 (Rev. 10-28-22)                             8                             2022 Form OR-20-INC Instructions

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Question E(2). Check this box if you filed a consolidated    Oregon law than under federal law, is an addition on 
Oregon return. Complete Schedule OR-AF,  Schedule of         your Oregon return.
Affiliates, and list only the corporations included in the 
                                                             Use Schedule OR-ASC-CORP, Section A, to report the 
consolidated Oregon return that:
                                                             amount and description code of each difference. Use the 
• Are doing business in Oregon; or                           description code from the list in Appendix A. The total 
• Have income from Oregon sources.                           of all additions is entered on Form OR-20-INC, line 2.
Question E(3). Check this box if it applies. Include a       Additions include:
list of corporations included in the consolidated federal    • Bad debt reserve addition of a financial institution 
return that aren’t included in this Oregon return. List        to the extent that the federal amount exceeds the 
each corporation’s name and FEIN. Note: Include a copy         amount that’s allowable for Oregon.    The bad debt 
of your federal return and schedules as filed with the         method for financial institutions is tied to the fed-
IRS.                                                           eral method. For taxpayers required to use the spe-
Question F. If the filing corporation (shown above as          cific write-off method, an addition must be made if 
legal name) is a subsidiary in an affiliated group, or a       the amortization of the federal reserve is less than the 
subsidiary in a parent-subsidiary controlled group, enter      amortization of the Oregon reserve (ORS 317.310).
the name and FEIN of the parent corporation. For def-        • Capital construction fund. Amounts deferred under 
inition of a subsidiary in an affiliated group or a par-       Section 607 of the Merchant Marine Act of 1936 and 
ent-subsidiary controlled group, see federal Form 1120,        IRC  §7518  must  be  added  back  to  federal  taxable 
Schedule K.                                                    income (ORS 317.319).
Question K. Utility or telecommunications compa-             • Charitable donations not allowed for Oregon. Dona-
nies. Taxpayers primarily engaged in utilities or tele-        tions to a charitable organization that has received a 
communications may elect to apportion income using a           disqualifying order from the Attorney General aren’t 
double-weighted sales factor formula (ORS 314.280 and          deductible as charitable donations for Oregon tax pur-
supporting administrative rules). Check the box if mak-        poses. Such organizations are required to provide a 
ing this election.                                             disclosure to a donor to acknowledge this. The Attor-
Question L. Limited partner income only. Check this            ney General will publish online and otherwise make 
box if your corporation is filing a Form OR-20-INC and         publicly available  information identifying the  chari-
has no other connection to Oregon other than an owner-         table organizations receiving a disqualification order. 
ship interest as a limited partner in a partnership that’s     If you claimed a federal deduction, an addition must 
doing business in Oregon.                                      be made on your Oregon return for donations to such 
                                                               charitable organizations (ORS 317.491).
Don’t check this box if you’re a general partner. A corpo-
rate general partner of a partnership that’s doing busi-     • Child  Care  Office  contributions  carryover.  Any 
ness in Oregon is subject to the greater of calculated         deduction claimed on your federal return must be 
excise tax or minimum tax imposed under Chapter 317            added back to federal taxable income on your Oregon 
and must file Form OR-20.                                      return if you claim the Oregon credit (ORS 315.213).
Question M. Total Oregon sales.                              • Claim of right income repayment adjustment when 
                                                               credit’s claimed. The deduction under IRC §1341 on 
• Apportioned returns.        Enter the amount of Oregon       the federal return must be added back to federal tax-
sales from Schedule OR-AP, line 22(a).                         able income on your Oregon return if the Oregon cred-
• Nonapportioned returns. Enter the amount of sales as         it’s claimed (ORS 317.388).
defined by ORS 314.665.                                      • CPAR addition. If you’re an owner of a partnership 
                                                               that was subject to a partnership-level audit by the 
Line instructions                                              IRS (or you’re an owner of a tiered partner of such a 
                                                               partnership), you may have to increase or decrease 
Line 1. Taxable income from U.S. corporation income            your Oregon income as a result of the audit. Report an 
tax return. Enter the taxable income reported for federal      increase in income using addition code 187 or report a 
income tax purposes before net operating loss or special       decrease in income using subtraction code 384, which-
deductions (federal Form 1120, line 28).                       ever is applicable.  Use  these  codes  even  if  another 
                                                               code is assigned for the specific type of increased or 
Additions                                                      decreased income (ORS 314.733). Visit our website for 
                                                               more information.
Line 2. Total additions from Schedule OR-ASC-CORP, 
Section A. The amount by which any item of income is         • Deferred gain recognized from out-of-state disposi-
greater under Oregon law than under federal law, or the        tion of property acquired in an IRC §1031 or §1033 
amount by which any allowable deduction is less under          exchange. See ORS 317.327 regarding the computation 
150-102-021-1 (Rev. 10-28-22)                              9                              2022 Form OR-20-INC Instructions

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  of the addition if gain or loss is recognized for federal    income that isn’t clearly reflective of Oregon busi-
  tax purposes but not taken into account in the compu-        ness income. 
  tation of Oregon taxable income.
                                                                 If the owner also files an Oregon return, the owner 
• Depletion (percentage in excess of cost). Add the fed-       of the intangible asset must report the correspond-
  eral deduction that is in excess of the Oregon allow-        ing royalty or other income as a negative addition on 
  ance for depletion (ORS 317.374).                            Schedule OR-ASC-CORP, Section A (ORS 314.295 and 
                                                               supporting administrative rules).
• Depreciation differences. If your Oregon deprecia-
  tion isn’t the same as your federal depreciation, the        • Interest income excluded from the federal return. 
  difference is a required modification to your Oregon         Oregon gross income includes interest on all state and 
  return (ORS 317.301). Use Schedule OR-DEPR to deter-         municipal bonds or other interest excluded for fed-
  mine the Oregon modification.                                eral tax purposes. Reduce the addition by any interest 
                                                               incurred to carry the obligations and by any expenses 
• Gain or loss on the disposition of depreciable prop-         incurred in producing this interest income (ORS 317.309).
  erty. Add the difference in gain or loss on sale of busi-
  ness assets when your Oregon basis is less than your         • Inventory costs. The costs allocable to inventory are 
  federal basis (ORS 317.356 and OAR 150-317-0420).            the same as those included in IRC §263A. Differences 
                                                               in depreciation and depletion allocable to inventory 
• Global intangible low-taxed income (GILTI) under             result in a modification [ORS 314.287(3)].
  IRC Section 250. You must add back any GILTI amount 
  not included in Line 1 of your Oregon return. Gener-         • IRC §139A federal subsidies for prescription drug 
  ally, the federal deduction is taken on line 29b of fed-     plans. For  federal  purposes,  taxpayers  can  exclude 
  eral Form 1120 and doesn’t impact the Oregon return.         from taxable income certain federal subsidies for 
  However, if any amount was omitted or deducted in            prescription drug plans per IRC §139A. However, for 
                                                               Oregon purposes, this federally excluded income is an 
  determining federal income carried to line 1 of your 
                                                               addition on the Oregon return (ORS 317.401).
  Oregon return, it must be added back before a subtrac-
  tion can be claimed. Report the Oregon addition (if          • IRC §631(a) treatment of timber isn’t recognized by 
  any) on Schedule OR-ASC-CORP using code number               Oregon. Both beginning and ending inventories must 
  186 ORS 317.267).                                            be adjusted for IRC §631(a) gain. For Oregon purposes, 
                                                               there’s no taxable event until actual sale (ORS 317.362).
• Income from sources outside the United States. Add 
  income from sources outside the United States, as            • Losses of nonunitary corporations. Net losses of non-
  defined in IRC §862, not included in federal taxable         unitary corporations included in a consolidated federal 
  income under IRC §§861 to 864 (ORS 317.625).                 return must be eliminated from the Oregon return. 
                                                               Net losses include the separate loss as determined 
• Income of related FSC or DISC.    Net income or loss 
                                                               under Treasury Regulations adopted for IRC  §1502, 
  must be included in the net income of the related U.S.       and deductions, additions, or items of income, expense, 
  affiliate if the related FSC or DISC doesn’t qualify for     gain, or loss for which the consolidated treatment is 
  ORS 317.283(2) treatment (ORS 317.283 and 317.286).          prescribed. Include a schedule showing your compu-
• Individual Development Account credit.    Donations          tation of the total net loss eliminated [ORS 317.715(2)].
  deducted on the federal return must be added back to         • Losses of unitary insurance affiliates. If a unitary 
  federal taxable income if the Oregon credit’s claimed        insurance affiliate has a separate return filing require-
  [ORS 315.271(2)].                                            ment, they’re excluded from the consolidated Oregon 
• Intercompany  transactions  involving  intangible            return. The insurance affiliate is treated as if it’s a non-
  assets. The user of the intangible asset must add the        unitary affiliate of its consolidated group and the loss 
  royalty or other expense for such use to federal taxable     (if any) is an addition (ORS 317.715).
  income as an addition on the Oregon tax return if:           • Net federal capital loss deduction. If the Oregon and 
    ° An intangible asset is owned by one corporation or       federal capital loss deductions are different, add the 
  business (the owner), and used by another (the user)         federal capital loss back to federal taxable income. The 
  for a royalty or other fee;                                  Oregon capital loss will be deducted after subtrac-
    ° Both the owner and the user are “owned by the same       tions (and apportionment for corporations required to 
  interests,” as defined in Treas. Reg. §1.469-4T(j);          apportion income) to arrive at Oregon taxable income 
                                                               (ORS 317.013 and supporting administrative rules).
    ° The owner and the user aren’t included in the same 
  Oregon tax return; and                                       • Opportunity Grant Fund (auction). Any federal deduc-
    ° The separation of ownership of the intangible asset      tion for contributions for which an Opportunity Grant 
  from the user of the intangible asset results in either:     Fund tax credit certification is made must be added to 
  evasion of tax or a computation of Oregon taxable            federal taxable income (ORS 315.643).
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• Oregon excise tax and other state or foreign taxes on reserve is greater than the amortization of the Oregon
or measured by net income. Oregon excise tax may reserve (ORS 317.310).
not be deducted on the Oregon return. Taxes of other
• Charitable contribution. Subtract the amount by
states or foreign governments on or measured by net
which a corporation must reduce its charitable contri-
income or profits may not be deducted on the Oregon
bution deduction [IRC §170(d)(2)(B)] (ORS 317.307 and
return. If you subtracted these taxes on your federal
OAR 150-317-0350).
return, you must add them back on your Oregon
return. However, the Oregon minimum tax and some • CPAR subtraction. If you’re an owner of a partner-
local taxes, such as the Multnomah County Business ship that was subject to a partnership-level audit by
Income tax, are deductible, and aren’t required to be the IRS (or you’re an owner of a tiered partner of such
added back (ORS 317.314). a partnership), you may have to increase or decrease
your Oregon income as a result of the audit. Report an
• Oregon production investment fund. Add back the
increase in income using addition code 187 or report a
amount of contribution for which a tax credit certifica-
decrease in income using subtraction code 384, which-
tion is made that’s allowed as a deduction for federal
ever is applicable. Use these codes even if another
tax purposes (ORS 315.514).
code is assigned for the specific type of increased or
• REITs and RICs. A REIT or RIC meeting the federal decreased income (ORS 314.733). Visit our website for
affiliate definition must be included in the consoli- more information.
dated Oregon return. This is an Oregon modification
• Deferred gain recognized from out-of-state disposi-
(addition or subtraction) to federal taxable income. For
tion of property acquired in an IRC §1031 or §1033
apportioning taxpayers, factors from the REIT or RIC
exchange. See ORS 317.327 regarding the computa-
are included in the apportionment calculation of the
tion of the subtraction if gain or loss is recognized for
consolidated Oregon return (ORS 317.010 and support-
federal tax purposes but not taken into account in the
ing administrative rules).
computation of Oregon taxable income.
• Safe harbor lease agreements. Oregon doesn’t tie
• Depletion. Subtract the Oregon allowance for deple-
to the federal safe harbor lease provisions. See ORS
317.349 and supporting administrative rules for details tion that is in excess of the federal deduction for deple-
about the adjustments required for Oregon. tion (ORS 317.374).
• University venture development fund contributions. • Depreciation differences. If your Oregon deprecia-
Add to federal taxable income the amount of contri- tion isn’t the same as your federal depreciation, the
butions used to calculate the University Venture Fund difference is a required modification to your Oregon
Contribution credit that were deducted from federal return (ORS 317.301). Use Schedule OR-DEPR to deter-
taxable income (ORS 315.521). mine the Oregon modification.
• Unused business credits. Unused business credits • Dividend deduction. A 70 percent deduction is allowed
taken as a federal deduction under IRC §196 must be for qualifying dividends regardless of geographic
added back to federal taxable income (ORS 317.304). source. An 80 percent deduction is allowed for divi-
dends received from corporations whose stock is owned
Line 3. Income after additions (line 1 plus line 2). 20 percent or more. Use Oregon Form OR-DRD for com-
puting the Oregon dividend deduction and include it
Subtractions with your return (ORS 317.267).
Line 4. Total subtractions from Schedule OR-ASC-CORP, • Federal credits. Subtract the amount of expense not
Section B. The amount by which an item of income is less deducted on the federal return attributable to claiming
under Oregon law than federal law, or the amount by a federal credit (ORS 317.303).
which an allowable deduc tion is greater under Oregon
• Federal investment tax credit on certain assets. If you
law than federal law, is a subtraction on your Oregon
take a federal tax credit on certain assets, and your
return.
federal basis is less than your Oregon basis, you must
Use Schedule OR-ASC-CORP, Section B, to report the recalculate the gain or loss on disposal of those assets
amount and description code of each difference. Use the and subtract the difference (ORS 317.356).
description code from the list in Appendix A. The total
• Film production labor rebate. Subtract the amount
of all subtractions is entered on Form OR-20-INC, line 4.
received as a labor rebate that’s included in federal tax-
Subtractions include: able income (ORS 317.394).
• Bad debt reserve addition of a financial institution • Foreign derived intangible income (FDII) under IRC
to the extent that the Oregon amount exceeds the Section 250. Oregon is connected with the FDII deduc-
amount that’s allowed on the federal return. A sub- tion on your federal return. Generally, the federal deduc-
traction is also made if the amortization of the federal tion amount is reported on federal Form 8993, Part IV,
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line 8. Report your Oregon subtraction on Schedule taxable income reported on line 1 of your Oregon
OR-ASC-CORP using code number 382. Don’t use return. Generally, the federal deduction amount is
Form OR-DRD for this subtraction [SB 851 (2019)]. reported on federal Form 1120, Schedule C, line 13.
• Gain or loss on the sale of depreciable property. The Report your Oregon subtraction on Schedule OR-ASC-
difference in gain or loss on the sale of business assets CORP using code number 383. Don’t use Form OR-
when your Oregon basis is less than your federal basis DRD for this subtraction (ORS 317.267).
(ORS 317.356). • Land donation or bargain sale of land to educa-
• Global intangible low-taxed income (GILTI) under tional institutions. Enter the fair market value of land
IRC Section 250. Oregon allows an 80 percent subtrac- donated or the amount of the reduction in sales price of
tion of GILTI amounts under IRC Section 951A that are land sold to a school district. The subtraction is limited
included in your Oregon income. Report the Oregon to 50 percent of Oregon taxable income (ORS 317.488).
subtraction on Schedule OR-ASC-CORP using code • Losses from outside the United States. Subtract losses
number 381. Don’t use Form OR-DRD for this subtrac- from sources outside the United States, as defined in
tion (ORS 317.267). IRC §862, not included in federal taxable income under
• IC-DISC commission payments. For tax years begin- IRC §§861 to 864 (ORS 317.625).
ning on or after January 1, 2013, a deduction is allowed
• Manufactured dwelling park tenant payments made
for commission payments made to an IC-DISC if
under ORS 90.505 to 90.840 to compensate a tenant for
the DISC was formed on or before January 1, 2014
costs incurred due to the closure of the park may be
(ORS 317.283).
subtracted (ORS 317.092).
• Income of nonunitary corporations. Net income of non-
• Marijuana business expenses. ORS 317.363 allows
unitary corporations included in a consolidated federal
Oregon taxpayers filing a corporate excise or income
return must be eliminated from the Oregon return. Net
income includes the separate taxable income, as deter- tax return to deduct business expenses otherwise
mined under Treasury Regulations adopted for IRC barred by IRC §280E if the taxpayer is engaged in mar-
§1502, and any deductions, additions, or items of income, ijuana-related activities authorized by ORS 475C.005 to
expense, gain, or loss for which consolidated treatment 475C.525, or ORS 475C.700 to 475C.919.
is prescribed. Include a schedule showing computation • Psilocybin business expenses. ORS 317.363 allows
of the total net income eliminated [ORS 317.715(2)]. Oregon corporation excise and income tax filers to
• Income of unitary insurance affiliates. If a unitary subtract certain business expenses otherwise barred
insurance affiliate has a separate return filing require- by IRC §280E if the corporation is engaged in psilo-
ment, they’re excluded from the consolidated Oregon cybin-related activities authorized by ORS 475A.210 to
return. The insurance affiliate is treated as if it’s a 475A.722, the Oregon Psilocybin Services Act. Use sub-
nonunitary affiliate of its consolidated group and any traction code 385 on Schedule OR-ASC-CORP.
income is a subtraction (ORS 317.715).
• REITs and RICs. A REIT or RIC meeting the federal
• Income on a composite return. A corporate owner of affiliate definition must be included in the consoli-
a pass-through entity (PTE) may subtract its share of dated Oregon return. This is an Oregon modification
distributive income that has already been reported on (addition or subtraction) to federal taxable income. For
an Oregon composite return. See Publication OR-OC apportioning taxpayers, factors from the REIT or RIC
and OAR 150-314-0515 for more information. are included in the apportionment calculation of the
• Interest on obligations of the U.S. and its instru- consolidated Oregon return (ORS 317.010 and support-
mentalities included in Form OR-20-INC, line 1. This ing administrative rules).
applies to income tax filers only. Reduce the subtrac- • Sale of manufactured dwelling park. The net gain
tion by any expenses incurred to produce this interest attributable to the sale of a manufactured dwelling
income. park to a tenant’s association, facility purchase asso-
• Inventory costs. The costs allocable to inventory are ciation, or tenant’s association supported nonprofit
the same as those included in IRC §263A. Differences organization is exempt from tax (Note following ORS
in depreciation and depletion allocable to inventory 317.401).
result in a modification [ORS 314.287(3)]. • State of Oregon interest income included on line
• IRC Section 245A foreign-source portion dividends. 2 (Form OR-20-INC only). Interest income from
Oregon allows a 100 percent subtraction of the foreign- obligations of the state of Oregon isn’t taxable if the
source portion of dividends from certain foreign cor- obligation was issued after May 24, 1961. Reduce the
porations under IRC Section 245A. The subtraction subtraction by any expenses incurred to produce this
is allowed only if the amount is included in federal interest income.
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• Taxes paid to a foreign country. You may subtract Line 6. Apportionment percentage.Enter the apportion-
from federal taxable income the taxes paid to a foreign ment percentage from Schedule OR-AP, part 1, line 23.
country upon the payment of interest or royalties aris-
Line 7. Oregon taxable income from Schedule OR-AP,
ing from sources within such foreign country, if such
part 2, line 12.
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)]. Tax
• Work opportunity credit wages not deducted on the Line 8. Calculated income tax. See Appendix B for
federal return. Subtract the amount of wages that computation.
weren’t deducted on the federal return because the Line 9. Tax adjustments.
work opportunity credit was claimed (ORS 317.303).
Installment sales interest. If you owe interest on
Line 5. Net income before apportionment (line 3 minus deferred tax liabilities with respect to installment obliga-
line 4). This amount is carried to Schedule OR-AP, part tions under ORS 314.302, enter the amount as a positive
2, line 1. number. Include a schedule showing how you figured
Net loss and net capital loss deductions are entered on Sched- the interest.
ule OR-AP for Form OR-20-INC filers. Line 10. Tax before credits (line 8 plus line 9).
Net loss deduction.
• Enter the deduction on Schedule OR-AP-2, line 10a for Credits
net losses assigned to Oregon during the preceding For a list and description of Oregon corporation cred its,
taxable years (and not previously deducted). Enter as visit www.oregon.gov/dor.
a positive number.
Important:
• Include a schedule showing your computations.
• A net loss is the amount determined under IRC Chap- • All credits are claimed on Schedule OR-ASC-CORP.
ter 1, Subtitle A, with the modifications specifically • Use the description code from the list in Appendix A.
prescribed under Oregon law. • List credits and codes on the OR-ASC-CORP in the
• The Oregon deduction is the sum of unused net losses order you want them used.
assigned to Oregon for preceding taxable years. • Generally, taxpayers must claim the full amount of a
• A net operating loss carryforward is required to be credit allowed per year (ORS 314.078).
reduced by the entire Oregon net income of interven- Line 11. Total standard credits from Schedule OR-ASC-
ing tax years [ORS 317.476(4)(b)]. CORP, Section C .Enter as a positive number.
• Net losses can be carried forward up to 15 years.
• Oregon doesn’t allow net losses to be carried back. Line 12. Tax after standard credits (line 10 minus line
• For losses, and built-in losses occurring before a 11).
change in ownership [separate return loss year (SRLY) Line 13. Total carryforward credits from Schedule OR-
limitations], Oregon is tied to the federal limitations ASC-CORP, Section D .Enter as a positive number.
(IRC §382 and §384; ORS 317.476 and 317.478).
• The total net loss deduction on a consolidated Ore- Line 14. Income tax after standard and carryforward
gon return is the sum of the net losses available to credits (line 12 minus line 13). Enter 0 if line 13 is greater
each of the corporations subject to the limitations in than line 12.
OAR 150-317-0460. Line 15. LIFO benefit recapture subtraction. This
• REITs, if qualified under IRC §856, aren’t allowed a net amount is a subtraction from tax after credits. Oregon
loss deduction [ORS 317.476(5)]. has adopted the provisions of IRC §1363(d) for S corpora-
Net capital loss deduction. tions. LIFO benefits are included in taxable income for
the last year of the C corporation under these provisions.
• Enter the deduction on Schedule OR-AP-2, line 10b.
On a separate schedule, compute the difference between
Enter as a positive number.
tax (after credits and any surplus refund) on income per
• Oregon allows a net capital loss deduction for losses
the return and income without the recapture of LIFO
apportioned to Oregon and carried from another year.
benefits. Multiply this difference by 75 percent and enter
• The deductible loss is limited to net capital gain
the result on Form OR-20-INC, line 15 as a subtraction
included in Oregon income. Capital losses must be
from the tax after standard and carryforward cred-
carried back three tax years and then may be carried
its. Include the computation schedule with the Oregon
forward for up to five tax years.
return.
• Include a schedule showing your computations
including the tax year the net capital loss originated On the LIFO benefits line of each of the first three
(ORS 317.476 and supporting administrative rules). returns of the new S corporation, add one-third of the
150-102-021-1 (Rev. 10-28-22) 13 2022 Form OR-20-INC Instructions

- 14 -

tax that was deferred from the last year of the C corpora-       See instructions for Oregon Form OR-18-WC,          Report of 
tion (ORS 314.750).                                              Tax Payment or Written Affirmation for Oregon Real Prop-
                                                                 erty Conveyance, for more information (ORS 314.258 and 
Net income tax                                                   supporting administrative rules).
Line 16. Net income tax       (line 14 minus line 15). Income    Pass-through entity withholding requirement.        A pass-
filers don’t pay a minimum tax.                                  through entity (partnership, S corporation, LLP, LLC, or 
                                                                 certain trusts) with distributive income from Oregon 
                                                                 sources must withhold tax from its nonresident owners.
Payments, penalty, interest, and UND
                                                                 The requirement is waived if the nonresident owner 
Line 17. Estimated tax payments, other prepayments, 
                                                                 makes an  election to join  in the  filing of a composite 
and refundable credits (from Schedule ES on page 5).             return, sends us a signed Form OR-19-AF, Oregon Affi-
• Fill in the total estimated tax payments made before           davit for a Nonresident Owner of a Pass-through Entity, or 
filing your Oregon return.                                       meets another exception listed in ORS 314.775 and sup-
• List name and FEIN of the payer only if different from         porting administrative rules. For more information, see 
the corporation filing this return.                              instructions for Oregon Form OR-19,   Annual Report of 
                                                                 Nonresident Owner Tax Payments.
Note: Consolidated return filers. If estimated payments 
were made under a different name, fill in the paying             Line 19. Tax due. Is line 16 more than line 17 plus 18? If 
corporation’s name and FEIN on Schedule ES for correct           so, line 16 minus lines 17 and 18.
application of estimated payments.                               Line 20. Overpayment. Is line 16 less than line 17 plus 
                                                                 line 18? If so, line 17 plus line 18, minus line 16.
Note: Missing or incomplete information on payment 
made by an affiliate could result in a billing.                  Line 21. Penalty due with this return. To avoid penalty 
                                                                 and interest, you must make any tax payment owed by 
• Include any refunds applied from other years on line 5. 
                                                                 the original due date of the tax return, excluding exten-
• Enter payments made with your extension or other               sions. You must also e-file or mail your tax return by 
prepayments on line 6.                                           the original due date. If you file with a valid extension, 
• Fill in on line 7 the refundable credits from Schedule         include the extension with your return and file by the 
OR-ASC-CORP, Section E.                                          extended due date. 
• Carry the total from line 8 to Form OR-20-INC, line 17.
                                                                 Enter the following penalties on your return if they apply.
Line 18. Withholding payments made on your behalf 
from pass-through entity or real estate income. If taxes         • 5 percent failure-to-pay penalty. Include a penalty 
were paid on the corporation’s behalf, enter the amount          payment of 5 percent of your unpaid tax if you don’t 
                                                                 pay by the original due date, even if you have an exten-
on this line.
                                                                 sion of time to file. 
There’s a requirement to withhold tax from the proceeds 
of sales of Oregon real property by nonresidents. This             Exception: You won’t be charged the 5 percent fail-
applies to individual nonresidents as well as C corpora-         ure-to-pay penalty  if  you  meet  all  of  the  following 
tions that aren’t doing business in Oregon. The amount           requirements:
to be withheld is the lesser of:                                   ° You have a valid federal or Oregon extension, and 
                                                                   ° You pay at least 90 percent of your tax after credits 
• 4 percent of the consideration (sales price);
                                                                     by the original due date of the return, and
• 4 percent of the net proceeds (amount dispersed to the 
                                                                   ° You file your return within the extension period, and
seller); or
                                                                   ° You pay the balance of tax due when you file your 
• 8 percent of the gain that’s includible in Oregon tax-
                                                                     return, and
able income for the year.                                          ° You pay the interest on the balance of tax due when 
Withholding isn’t required if one of the following require-          you file your return or within 30 days of the date of 
ments is met:                                                        the bill you receive from us.
• The consideration for the real property doesn’t exceed           If you filed with a valid extension, but didn’t pay 
$100,000;                                                        90 percent of your tax by the original due date, you’ll 
• The property is acquired through foreclosure;                  be charged the 5 percent failure-to-pay penalty.
• The transferor (owner) is a resident of Oregon—or if a         • 20 percent failure-to-file penalty. Include a penalty 
C corporation—has a permanent place of business in               payment of 20 percent of your unpaid tax if you don’t 
this state; or                                                   file your return within three months after the due date 
• The transferor meets one of the requirements in ORS            (including extensions). The failure-to-file penalty is in 
314.258(3)(d) through (f).                                       addition to the 5 percent failure-to-pay penalty.
150-102-021-1 (Rev. 10-28-22)                                 14                                   2022 Form OR-20-INC Instructions

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• 100 percent late pay and late filing penalty. Include • Show you meet an exception to the payment of interest.
a penalty payment of 100 percent of your unpaid tax
If you have an underpayment of estimated tax, include
if you don’t file returns for three consecutive years by
Form OR-37 with your tax return, check the box on page
the original or extended return filing due date of the
1 of your Form OR-20-INC, and file them before the due
third year. A 100 percent penalty is assessed on each
date of the return.
year’s tax balance.
If your current year corporation tax liability is less than
Line 22. Interest due with this return. You must pay
$500, you aren’t required to make estimated payments.
interest on unpaid taxes if:
Don’t complete this form. However, this provision doesn’t
• You don’t pay the tax balance by the original filing due apply to a high-income taxpayer. A “high-income tax-
date, excluding extensions. payer” is one that had federal taxable income before net
• You file an amended return and have tax to pay. operating loss and capital loss carryovers and carrybacks
• Your taxable income is changed because of a federal or of $1 million or more in any one of the last three years,
state audit and you owe more tax. not including the current year.
Interest owed on tax starts the day after the due date of Line 24. Total penalty and interest (add lines 21
your original return, excluding extensions, and ends on through 23).
the date of your payment. Interest is computed daily.
Even if you have an extension to file, you’ll owe interest Total due or refund
if you pay after the return’s original due date. Line 25. Total due (line 19 plus line 24). See “Filing
To calculate interest: checklist” for payment options. Don’t include a Form
OR-20-V, payment voucher, with your payment if you’re
Tax × Daily interest rate × Number of days. including a payment with your return.
Interest rates and effective dates: Note: Any payments received after the original due date
will be applied first to penalty, then to interest, and then
For periods
to tax [ORS 305.265(13)].
beginning Annually Daily
January 1, 2023 6% 0.0164% Special instructions. If you owe penalty or interest and
January 1, 2022 4% 0.0110% have an overpayment on line 20, and your overpayment
January 1, 2021 4% 0.0110% is less than total penalty and interest, then fill in the
result of line 24 minus line 20, on line 25.
Interest accrues on any unpaid tax during an extension
of time to file. Line 26. Refund available (line 20 minus line 24).
Interest will increase by one-third of 1 percent per month Line 27. Amount of refund to be credited to estimated
(4 percent yearly) on delinquencies if: tax. You may elect to apply part or all of your refund
to your next year’s estimated tax payments. Fill in the
• You file a return showing tax due, or we assessed an amount you want to apply. Your election is irrevocable.
existing deficiency; and
• The assessment isn’t paid within 60 days after the Elected amounts that are attributable to estimated tax
notice of assessment is issued; and payments received prior to the following year’s first
• You haven’t filed a timely appeal with us. quarter estimated tax due date, will be applied as a
timely first quarter installment of the following year.
Line 23. Interest on underpayment of estimated tax Elected amounts attributable to payments received after
(UND). You must make quarterly estimated tax pay- the following year’s first quarter estimated tax due date,
ments if you expect to owe $500 or more in tax. Oregon will be applied to the following year’s estimated tax
charges UND if: account as of the date the payment is received. See ORS
• The quarterly payment is less than the amount due for 314.515 and OAR 150-314-0302.
that quarter; or Line 28. Net refund (line 26 minus line 27).
• We receive the quarterly payment after that quarter’s
due date; or
• No quarterly payments are made during the year and Do you have questions or need help?
the final tax debt is $500 or more.
www.oregon.gov/dor
Use Form OR-37 to: 503-378-4988 or 800-356-4222
• Calculate the amount of underpayment of estimated questions.dor@ dor.oregon.gov
tax. Contact us for ADA accommodations or assistance in
• Compute the interest you owe on the underpayment. other languages.

150-102-021-1 (Rev. 10-28-22) 15 2022 Form OR-20-INC Instructions

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Appendix A
Corporation Form OR-20-INC

2022 Schedule OR-ASC-CORP codes

Additions
Description Code Description Code
Bad debt reserve federal exceeding Oregon ................. 156 Interest income excluded from the federal return
Capital construction fund ............................................... 152 (state, municipal, and other interest income) ........... 150
Charitable donations not allowed for Oregon ............. 132 Inventory costs ................................................................. 161
Child Care Office contributions carryover ................... 153 IRC §139A federal subsidies for prescription drugs ... 123
Claim of right income repayment .................................. 173 IRC §631(a) treatment of timber not recognized by
CPAR addition .................................................................. 187 Oregon ............................................................................ 162
Deferred gain from out-of-state disposition of Losses of nonunitary corporations ................................ 164
property ......................................................................... 118 Losses of unitary insurance affiliates ........................... 183
Depletion (percentage in excess of cost) ....................... 166 Net federal capital loss deduction ................................. 165
Depreciation differences..................................................174 Opportunity Grant Fund (auction) ................................ 185
Gain or loss on disposition of depreciable property ... 158 Oregon excise tax and other tax ..................................... 151
Global intangible low-taxed income (GILTI) ............... 186 Oregon production investment fund ............................ 157
Income from sources outside U.S. ................................. 159 REITs and RICs ................................................................. 168
Income of related FSC or DISC ...................................... 178 Safe harbor lease agreements ......................................... 169
Individual Development Account credit ...................... 113 Uncategorized addition (must include explanation) .. 199
Intercompany transactions involving intangible University venture development fund
assets ............................................................................... 160 contributions ................................................................. 171
Unused business credits .................................................. 122

Subtractions
Description Code Description Code
Bad debt reserve Oregon exceeding federal ................. 359 Interest on obligations of the U.S. and
Charitable contribution ................................................... 351 its instrumentalities ..................................................... 361
CPAR subtraction ............................................................. 384 Inventory costs ................................................................. 357
Deferred gain from out-of-state disposition of IRC Section 245A foreign-source portion dividends... 383
property ......................................................................... 352 Land donation or bargain sale of land to
Depletion (Oregon in excess of federal allowance) ..... 362 educational institutions ............................................... 350
Depreciation differences..................................................353 Losses from outside U.S. ................................................. 358
Dividend deduction ........................................................ 370 Manufactured dwelling park tenant payments ........... 344
Federal credits .................................................................. 354 Marijuana business expenses ......................................... 375
Federal investment tax credit on certain assets ........... 355 Psilocybin business expenses ......................................... 385
Film production labor rebate .......................................... 336 REITs and RICs ................................................................. 360
Foreign derived intangible income (FDII) ................... 382 Sale of manufactured dwelling park ............................. 338
Gain or loss on sale of depreciable property ................ 356 State of Oregon interest income included on line 2 .... 364
Global intangible low-taxed income (GILTI) ............... 381 Taxes paid to a foreign country ...................................... 378
IC-DISC commission payments Uncategorized subtraction (must attach
(DISC formed before 01/02/2014) ............................. 366 explanation) ................................................................... 399
Income of nonunitary corporations ............................... 371 Work opportunity credit wages not deducted on
Income of unitary insurance affiliates .......................... 376 the federal return ......................................................... 372
Income on a composite return ........................................ 341

Standard credits
Description Code
Oregon Cultural Trust contribution (ORS 315.675) ..... 807
Reservation enterprise zone (ORS 285C.309) ............... 810
Uncategorized credit (must include explanation) ....... 899

150-102-021-1 (Rev. 10-28-22) 16 2022 Form OR-20-INC Instructions

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Carryforward credits
Description                                       Code                                  Description                                        Code
Alternative qualified research activities                                               Oregon Low-Income Community Jobs Initiative 
(carryforward only) (ORS 317.154) ............................ 837                      (carryforward only) (ORS 315.533) ................................ 855
Bovine manure (carryforward only)(ORS 315.176                                           Oregon production investment fund (auction)  
and 315.179) ................................................................... 869    (ORS 315.514) ................................................................ 856
Business energy (carryforward only) (ORS 315.354) ... 839                               Qualified research activities (carryforward only)  
Child Care Fund contributions (carryforward only)                                       (ORS 317.152) ................................................................ 858
(ORS 315.213) .................................................................841      Renewable energy resource equipment  
Crop donation (ORS 315.156) ......................................... 843               manufacturing facility (carryforward only)  
Electronic commerce zone investment (carryforward                                       (ORS 315.341) ................................................................ 860
only) (ORS 315.507) ...................................................... 845          Repatriation credit (due to IRC §965) (carryforward  
Employer-provided dependent care assistance                                             only) (must include copy of 2017 form) .................... 870 
(carryforward only) (ORS 315.204) ............................ 846                      Rural technology workforce development 
Employer scholarship (ORS 315.237) ............................ 847                       (ORS 315.523) ................................................................ 868 
Energy conservation projects (carryforward only)                                        Short line railroad rehabilitation (ORS 315.593) .......... 872
(ORS 315.331) ................................................................ 849      Transportation projects (carryforward only)  
Individual Development Account (IDA) donation                                           (ORS 315.336) ................................................................ 863
(ORS 315.271) ................................................................ 852      Uncategorized carryforward credit (must include  
Lender’s credit: energy conservation (carryforward                                      explanation) ................................................................... 999
only) (ORS 317.112) ...................................................... 848          University venture fund (ORS 315.521) ........................ 864
Long-term enterprise zone facilities (carryforward                                      Weatherization lender’s credit (carryforward only) 
only) (ORS 317.124) ...................................................... 853          (ORS 317.111) ................................................................. 866
Opportunity Grant Fund (auction) (ORS 315.643) .......871
Oregon affordable housing lender’s credit  
(ORS 317.097) ................................................................ 854

Refundable credits
Description                                       Code
Claim of right (ORS 315.068) .......................................... 890

150-102-021-1 (Rev. 10-28-22)                                                        17             2022 Form OR-20-INC Instructions

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                              Appendix B
                              Oregon Corporation Form OR-20-INC
                              2022 Tax rates 

Calculated tax (ORS 318.020, 317.061)

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

150-102-021-1 (Rev. 10-28-22)        18                                                   2022 Form OR-20-INC Instructions

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                                          Appendix C

                              Oregon Corporation Form OR-20-INC
                                  Alternative apportionment

Oregon law allows taxpayers to request an alterna-           Note: Taxpayers filing amended returns for 2015 or prior 
tive method of apportionment using the instructions          must use the form year corresponding to the tax year 
below. Uniform Division of Income for Tax Purposes Act       even though there’s no alternative apportionment check-
(UDITPA) taxpayers filing under ORS 314.605 to ORS           box on the return. Clearly identify that you’re requesting 
314.675, as well as insurers, and taxpayers filing under     alternative apportionment by writing the words “Alter-
ORS 314.280, must use this procedure to apply for alter-     native apportionment request” at the top and adhere 
native apportionment.                                        to all other requirements. Determinations to amended 
                                                             returns may take longer to process.
Administration
                                                             Method 2 —Alternative apportionment petition 
We will review the alternative apportionment request 
                                                             submitted separately from your original or amended 
and issue a decision letter.
                                                             return 
If your alternative apportionment petition is denied, you    • Your written petition must have the title “Alternative 
may appeal the denial of your petition to Oregon Tax         apportionment request.”
Court as provided in ORS 305.275.                            • We will not rule on your alternative apportionment 
If your alternative apportionment petition is approved,      request until you file your original or amended return 
you may amend your returns within the normal statute         using standard apportionment provisions.
of limitations. The approval of your petition will remain    • Your original or amended return, for which the writ-
in effect unless and until we revoke it during audit or      ten petition requests alternative apportionment, must 
you file a new petition and receive our approval of the      use standard apportionment provisions.
new proposal.                                                • Mail  your  petition  to:  Oregon  Department  of  Reve-
                                                             nue, Corporation Section, 955 Center St NE, Salem OR 
Allow at least 6 months for us to make a determination. 
                                                             97301-2555.
Also, note that all petitions for alternative apportion-
ment may result in additional review and documenta-          Both methods of petition
tion requests.
                                                             • The petition must be signed by the taxpayer or the tax-
                                                             payer’s representative.
Instructions                                                 • You must use standard apportionment provisions to 
• Your written petition for alternative apportionment        complete your original or amended return while the 
  can be submitted with your original or amended             department rules, in writing, on your request for alter-
  return (Method 1) or separate from your original or        native apportionment. 
  amended return (Method 2).                                 • In the case of a UDITPA taxpayer, the petition must 
• For administrative purposes, we prefer Method 2.           fully explain the  extent of the taxpayer’s business 
                                                             activity in Oregon and why standard apportionment 
Method 1 —Alternative apportionment petition                 doesn’t fairly and equitably represent the taxpayer’s 
submitted with your original or amended return               business activity in Oregon. An ORS 314.280 taxpayer 
• Check the alternative apportionment checkbox on            must fully explain why standard apportionment 
  the front of the return and include a written peti-        doesn’t fairly and equitably represent the amount of 
  tion for alternative apportionment with your original      net income the taxpayer earns inside and outside Ore-
  or amended return. Failure to do so could result in        gon. An  insurer  must explain  why standard  appor-
  your request being overlooked. This box is to denote       tionment  doesn’t  fairly  and  equitably  represent  the 
  requests only and isn’t to be used after a request is      insurer’s business activity within Oregon.
  approved.                                                  • Your petition must fully explain your proposed 
• You must include a written petition for alternative        method of alternative apportionment and explain why 
  apportionment with your original or amended return         this proposed method is more accurate in reflecting 
  if you check the alternative apportionment checkbox.       business activity or net income, as appropriate, in Ore-
• Do not complete the original or amended return using       gon than the standard formula. 
  an alternative method of apportionment unless/until        • The petition must show how the Oregon return (Form 
  that  alternative  method  of  apportionment  has  been    OR-20, OR-20-INC, OR-20-INS, or OR-20-S) would be 
  approved.                                                  completed, including the net tax calculation, using the 
• Include your petition with your return.                    proposed method of alternative apportionment.
150-102-021-1 (Rev. 10-28-22)                             19                         2022 Form OR-20-INC Instructions

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