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Form OR-20 Instructions 2022

Oregon Corporation Excise Tax

Contents

Purpose of Form OR-20........................................ 2 Filing checklist
Important reminders ............................................ 2 Due date of return, Extensions .......................................... 8
Payments ............................................................................... 8
What’s new and Looking ahead ............... 2, 3 Assembling your return ...................................................... 8
Estimated tax payments ..................................... 3
Mailing Addresses ................................................... 9
Filing information Form instructions
Who must file with Oregon? ..............................................4 Heading and checkboxes ....................................................9
Filing requirements: consolidated returns, unitary Questions ............................................................................. 10
business, insurance affiliates, separate returns .......... 5
E-file .......................................................................................5 Line instructions
Federal audit changes, Amended returns ........................ 5 Additions ............................................................................. 11
Protective claims ..................................................................6 Subtractions ........................................................................ 13
Tax ........................................................................................ 15
Special filing requirements Credits .................................................................................. 16
Agricultural or horticultural cooperatives .......................6 LIFO benefit recapture ...................................................... 16
Broadcasters .......................................................................... 6 Net excise tax ...................................................................... 16
Exempt organizations ..........................................................6 Payments, penalty, interest, and UND ............................ 16
Homeowners associations .................................................. 7 Schedule ES—Estimated tax payments, other
Insurers .................................................................................. 7 prepayments, and refundable credits......................... 16
Interest charge domestic international Total due or refund ............................................................ 18
sales corporations (IC-DISCs) ........................................7
Limited liability companies (LLCs) ................................... 7 Do you have questions? .................................... 18
Political organizations ......................................................... 8
Appendices
Publicly traded partnerships .............................................. 8
Appendix A, 2022 Schedule OR-ASC-CORP code list .... 19
Real Estate Investment Trusts (REITs) and Regulated
Appendix B, 2022 Tax rates and minimum tax table .... 21
Investment Companies (RICs) ....................................... 8
Appendix C, Alternative apportionment .......................22
Real Estate Mortgage Investment Conduits (REMICs) ..... 8

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

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

Visit us online: www.oregon.gov/dor

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

150-102-020-1 (Rev. 10-28-22) 1 2022 Form OR-20 Instructions

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                                                               If a corporation manufactures or sells psilocybin prod-
Purpose of Form OR-20                                          ucts,  operates a psilo cybin  service  center,  or facilitates 
                                                               psilocybin  ser vices licensed  by  the  Oregon  Health 
Use Form OR-20, Oregon Corporation Excise Tax Return, 
                                                               Authority (OHA) under ORS Chapter 475A, the corpora-
to calculate and report the Oregon corporate excise tax 
                                                               tion may subtract cer tain business expenses on the Ore-
liability of a business entity taxable as a C corporation 
                                                               gon return that can’t be deducted on the federal return 
doing business in Oregon.
                                                               due to IRC §280E. Federal law prohibits deductions 
                                                               for certain busi ness expenses if the business involves 
Important reminders                                            the cul tivation, manufacture, distribution, or sale of 
                                                               certain controlled substances. Oregon law, however, 
If your registered corporation or insurance company            allows a subtraction for the same ordinary and neces-
isn’t doing business in Oregon and has no Oregon-              sary expenses incurred for the business that are allowed 
source income, then you don’t need to file a corporation       for other types of businesses operating in this state. If 
tax return.                                                    the expense would have been allowed for federal pur-
                                                               poses, but the business falls within the Con trolled Sub-
Revenue Online. Revenue Online provides convenient, 
                                                               stances Act (21 U.S.C. Sections 801 et seq.), a subtraction 
secure access to tools for  managing your Oregon tax 
                                                               is allowed on your Oregon return. 
account. With Revenue Online, you may:

• View your tax account.                                       Credits
• Make payments.
• View correspondence we sent you.                             Individual Development Account (IDA) donations 
• Check the status of your refund.                             (ORS 315.271) 
For more information and instructions on setting up your       For tax years beginning on or after January 1, 2022 
Revenue Online account, visit  www.oregon.gov/dor.             and before January 1, 2028, this credit is allowed to be 
                                                               claimed for the prior year if the donation is made not 
                                                               later than April 15 following December 31 of the tax year 
What’s new                                                     for which the credit is claimed. This change is effective 
                                                               for tax years 2022 through 2027, for donations made prior 
Note: Not all information in this section pertains to all      to April 15, 2028. See HB 2433 (2021). 
taxpayers or form types. If applicable, refer to House Bills 
(HB) or Senate Bills (SB) as shown.                            Oregon affordable housing lender’s credit (ORS 
                                                               317.097)
Visit   www.oregon.gov/dor for possible updates to 
these instructions.                                            Oregon statute was amended to allow a financial insti-
                                                               tution to claim the tax credit by purchasing bonds if 
General                                                        the bond proceeds are used to finance the purchase of 
                                                               afford able housing. These amendments apply between 
Tie to federal tax law                                         January 1, 2022 and January 1, 2026. See HB 2433 (2021).
In general, Oregon is tied to the federal definition of tax-
able income as of December 31, 2021; however, Oregon is        Expired credits
still disconnected from:                                       The following tax credits are no longer available, includ-
• Federal subsidies for prescription drug plans (IRC           ing carryforwards:
§139A; ORS 317.401).                                           • Biomass production/collection (ORS 315.141) ...code 838
• Deferral of certain deductions for tax years beginning       • Pollution control facilities (ORS 315.304) ...........code 857
on or after January 1, 2009 and before January 1, 2011         • Reforestation of underproductive forestlands 
may require subsequent Oregon modifications (IRC               (ORS 315.104) ..........................................................code 867
§168(k) and §179; ORS 317.301).                                • Renewable Energy Development Fund contributions 
                                                               (ORS 315.326) ..........................................................code 859
Psilocybin business expenses
ORS 317.363 allows Oregon corporation excise and income        Form changes
tax filers to subtract certain business expenses otherwise     Question M has been repurposed. For 2022, check this 
barred by IRC §280E if the corporation is engaged in psi-      box only if you or an affiliate included in this return 
locybin-related activities authorized by ORS 475A.210 to       claim Oregon sales are protected from Oregon taxation 
475A.722, the Oregon Psilocybin Services Act. Use sub-         because of Public Law 86-272.
traction code 385 on Schedule OR-ASC-CORP.

150-102-020-1 (Rev. 10-28-22)                                2                                        2022 Form OR-20 Instructions

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• Fiscal year filers: The 15th day of the 4th, 6th, 9th, and
Looking ahead 12th months of your fiscal year.
• If the due date falls on a Saturday, Sunday, or legal
NOL carryback holiday, use the next regular business day.

SB 1524 (2022) allows taxpayers who use NAIC codes 111 Payment options
or 112 (referring to taxpayers engaged in crop produc-
tion, animal production or aquaculture) to claim a three- Important: For details about making payments with
year NOL carryback. The three-year NOL carryback first your return, see “Filing checklist.”
applies in tax years beginning on or after January 1, 2023,
Estimated payments may be made by electronic funds
and before January 1, 2029, and any tax year to which the
transfer (EFT), online, or by mail.
NOL may be carried back. For example, a taxpayer with
a loss in tax year 2023 may carry their loss to tax year EFT. You must make your Oregon estimated payments
2020. by EFT if you’re required to make your federal estimated
payments by EFT. We may grant a waiver from EFT pay-
Tax credits ments if you’d be disadvantaged by the requirement
HB 4002 (2022) creates a refundable tax credit for over- (ORS 314.518 and supporting administrative rules).
time paid to agricultural workers. The tax credit equals a If you don’t meet the federal requirements for manda-
percentage of actual agricultural worker overtime costs tory EFT payments, you may still make voluntary EFT
paid by the taxpayer. The exact amount of the percent- payments.
age depends on the year the overtime is paid, how many
agricultural workers the taxpayer employs, and the type You can make EFT payments through Revenue Online or
of agriculture the taxpayer practices. The credit applies through your financial institution. To learn more about
to tax years beginning on or after January 1, 2023, and Revenue Online or to make an EFT payment, visit www.
before January 1, 2029, and taxpayers will apply for the oregon.gov/dor. If you pay by EFT, don’t send Form
tax credit through the department. Note that this tax OR-20-V, Oregon Corporation Tax Payment Voucher.
credit can offset corporation minimum tax determined
under ORS 317.090. Mail. If paying by mail, send each payment with a
Form OR-20-V, payment voucher, to: Oregon Department
SB 1502 (2022) creates a non-refundable tax credit equal of Revenue, PO Box 14950, Salem OR 97309-0950.
to the stumpage value of timber (plus cost of appraisal
and cost of filing and recording a deed restriction, minus Include on your check:
costs of transportation to a mill) left standing on the land • Federal employer identification number (FEIN).
of a small forestland owner. The amount of the tax credit
• Tax year beginning and ending dates.
is certified by the Department of Forestry. The tax credit
• Contact phone.
applies to tax years beginning on or after January 1, 2023.

Estimated tax payments’ worksheet
Estimated tax payments
(Keep for your records—don’t file with your payment.)
Requirements
1. Oregon net income expected in 1.
Oregon estimated tax payment requirements aren’t the upcoming tax year.
same as federal estimated tax payment requirements. 2. Tax on Oregon net income (see 2.
You must make estimated tax payments if you expect to Appendix B).
owe tax of $500 or more. This includes Oregon’s mini-
mum tax. See ORS 314.505 to 314.525 and supporting 3. Subtract tax credits allowable 3.
administrative rules. in upcoming tax year. Tax
credits can’t be used to reduce
If you don’t make estimated payments as required, you minimum tax.
may be subject to interest on underpayment of estimated
4. Net tax (line 2 minus line 3). 4.
tax (UND). Refer to Form OR-37 if you have an under-
payment of estimated tax. If the amount on line 4 is less
than $500, stop. You don’t have
to make estimated tax payments.
Payment due dates
Caution: If your final tax
Estimated tax payments are due quarterly, as follows: liability when you file your
return is $500 or more, you may
• Calendar year filers: April 15, June 15, September 15,
be subject to UND.
and December 15.
150-102-020-1 (Rev. 10-28-22) 3 2022 Form OR-20 Instructions

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5. Amount of each payment. 5. Excise or income tax?
(Divide line 4 by the number of Oregon has two types of corporate taxes: excise and
payments you need to make. income. Excise tax is the most common. Most corpora-
This is usually 4.)
tions don’t qualify for Oregon’s income tax.
If your expected net tax changes during the year, refig- Excise tax is a tax for the privilege of doing business
ure your estimated tax payments using the Estimated tax in Oregon. It’s measured by net income. Excise tax fil-
payments’ worksheet. ers are subject to corporate minimum tax. Corporation
excise tax laws are in Chapter 317 of the Oregon Revised
To avoid additional charges for UND, you must pay the Statutes.
amount of any prior underpayment plus the amount of
Note: All interest on obligations of the 50 states and their
the current required payment.
subdivisions are subject to Oregon excise tax. Interest on
Example: During the year, Corporation A’s expected net obligations of the United States and its instrumentalities
tax increased from $2,000 to $6,000. Corporation A made are also subject to tax if the interest is taxable under the
timely first and second quarter estimated payments of Internal Revenue Code and Congress has not chosen to
$500 before its expected net tax increased. prevent the states from taxing the interest in question. A
taxpayer has the burden of showing that Oregon can’t
Corporation A should make four payments of $1,500 each tax the interest on a federal obligation.
during the year. Because of its increased net tax, Corpo- Income tax is for corporations not doing business in
ration A will be subject to UND charges for the first and Oregon, but with income from an Oregon source. Income
second quarters. To avoid UND charges for the third and tax filers aren’t subject to corporate excise or minimum
fourth quarters, Corporation A must make timely pay- tax. Corporation income tax laws are in Chapter 318 of
ments of $3,500* for the third quarter and $1,500 for the the Oregon Revised Statutes.
fourth quarter.
What form do I use?
*$1,000 for the first-quarter underpayment, plus $1,000
for the second-quarter underpayment, plus $1,500 for the Except as provided by Pub.L. 86-272, all corporations
required third-quarter installment equals $3,500. doing business in Oregon must file Form OR-20, and
are subject to the minimum excise tax. Any corporation
doing business in Oregon is also required to register
Filing information with the Secretary of State, Corporation Division. See
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
doing business in Oregon:
Oregon corporation tax return. If you have tangible
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
of the corporation are regularly conducted.
exceptions to the Oregon filing requirement for certain
• Employees or representatives with activities which go
corporations doing business in Oregon. beyond the solicitation of orders for sales of tangible per-
Exemption for emergency service providers. An out- sonal property.
of-state emergency service provider is exempt from tax • An economic presence through which the taxpayer
regularly takes advantage of Oregon’s economy to pro-
when operating solely for the purposes of performing
duce income.
disaster or emergency-related work on critical infrastruc-
ture. Disaster or emergency-related work conducted by Corporations not doing business in Oregon, but with
an out-of-state business may not be used as the sole basis income from an Oregon source, must file Form OR-20-INC.
Most corporations don’t fall within Oregon’s income tax
for determining that a corporation is doing business in
provisions.
Oregon.
Corporations not doing business in Oregon, and with
Note: Oregon follows the federal entity classification no Oregon source income, even if incorporated in or
regulations. If an entity is classified or taxed as a corpo- registered to do business in the state, aren’t subject to the
ration for federal income tax purposes, it will be treated excise, income, or minimum tax, and aren’t required to
as a corporation for Oregon tax purposes. file a corporation tax return.
150-102-020-1 (Rev. 10-28-22) 4 2022 Form OR-20 Instructions

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Important: Don’t file a Form OR-20 unless you’re required        E-file
to do so. Filing an unnecessary return may result in a bill-
                                                                 If you’re required to e-file with the IRS, you’re also 
ing for minimum tax.
                                                                 required to e-file for Oregon. We accept calendar year, 
                                                                 fiscal year, short year, and amended electronic corpora-
Filing requirements
                                                                 tion tax returns utilizing the IRS Modernized e-file plat-
Consolidated federal returns (ORS 317.705–317.725). If a         form (MeF). Beginning January 2023, we’ll accept e-filed 
corporation is a member of an affiliated group of corpo-         returns for tax year 2022, and will continue accepting 
rations that filed a consolidated federal return, it must        returns for 2021 and 2020. 
file an Oregon return based on that federal return. An           Your tax return software also allows you to make elec-
Oregon return, based on the federal consolidated return,         tronic payments when e-filing your original return.
is required when two or more affiliated corporations are:
                                                                 Note: Your paper return may be rejected if you’re 
• Included in a consolidated federal return;                     required to electronically file your Oregon corporation 
• Unitary; and                                                   tax return, unless a waiver request has been approved by 
• At least one of the affiliated corporations doing busi-        us prior to the filing of the paper return.
ness in Oregon or have Oregon-source income.                     If you’d like to request a waiver, send an email with 
Note: S corporations can’t be included in consolidated           the FEIN, tax year, and reason you’re unable to e-file to 
federal returns. IRC §1361(b) provides that a corporation        bus.electronicfiling @ dor.oregon.gov, prior to  paper-fil-
that’s a Qualified Subchapter S Subsidiary (QSSS) isn’t          ing your return. 
treated as a separate corporation. All income, deduc-            For a list of software vendors or for more information, 
tions, and credits of the QSSS will be treated as belong-        search “e-filing” at   www.oregon.gov/dor.
ing to the parent S corporation.
Unitary business. A business that has, directly or indi-         Federal or other state audit changes
rectly between members or parts of the enterprise, either 
                                                                 If the IRS or other taxing authority changes or corrects 
a sharing or an exchange of value shown by:
                                                                 your federal or other state return for any tax year, you 
• Centralized management or a common executive force;            must notify us. File an amended Oregon return and 
• Centralized administrative services or functions result-       include a copy of the federal or other state audit report. 
ing in economies of scale; or                                    Mail this separately from your current year’s return.
• Flow of goods, capital resources, or services showing          If you don’t amend or send a copy of the federal or other 
functional integration.                                          state report, we have two years from the date we’re noti-
Unitary insurance affiliates. If a unitary insurance             fied of the change to issue a deficiency notice. To receive 
affiliate has a separate return filing requirement, it’s         a refund you must file a claim for refund of tax within 
excluded from the Oregon return of the consolidated              two years of the date of the federal or other state report.
group. The insurance affiliate is treated as if it’s a non-
unitary affiliate of the consolidated group by subtract-         Amended returns
ing income or adding losses to federal taxable income.           Oregon doesn’t have an amended return form for corpo-
The other members of the insurer’s federal consolidated          rations. Use the form for the tax year you’re amending 
group receive a 100 percent dividend-received deduction          and check the amended box. Always use your current 
for any dividend received from the insurer. See “Addi-           address. If your address has changed, don’t use your old 
tions” and “Subtractions” below.                                 address or our system will revert your current address 
Separate federal returns.      Any corporation that files        to the old address.
a separate federal return must file a separate Oregon            Fill in all amounts on your amended return, even if 
return  if  it’s  doing  business  in  Oregon  or  has  income   they’re the same as originally filed. If you’re amend-
from an Oregon source. However, see special filing               ing to change additions, subtractions, or credits, include 
requirements for REITs.                                          detail of all items and amounts, including carryovers.
A corporation subject to Oregon taxation must also file          If you change taxable income by filing an original or 
a separate Oregon return if it was included in a consoli-        amended federal or other state return, you must file an 
dated federal return, but wasn’t unitary with any of the         amended Oregon return within    90 days of when the 
other affiliates. To determine Oregon taxable income,            original or amended federal or other state return is filed 
begin with taxable income from the consolidated fed-             (ORS 314.380). Include a copy of your original or amended 
eral return and use Oregon additions or subtractions to          federal or other state return with your amended Oregon 
remove the nonunitary affiliates.                                return and explain the changes. 
150-102-020-1 (Rev. 10-28-22)                                  5                                    2022 Form OR-20 Instructions

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If  you  filed  Form  OR-20-S,  and  later  determined  you      OR-AP, under the heading “Describe the nature and 
should file Form OR-20, amend your return using Form             provide the location(s) of your Oregon business activi-
OR-20 and check the amended box.                                 ties.” Include the description “Sales not done with or for 
You may make payments online for your amended                    members of the co-op.”
return at   www.oregon.gov/dor.                                  Note: Generally, co-ops filing federal Form 1120-C 
Don’t  make payments  for amended returns with EFT.              begin the Oregon return with line 25a from the federal 
This also applies to e-filed amended returns. For paper          return (not line 28). You are also allowed a subtraction 
returns, you may pay online or include a check or money          for patronage dividends, which is taken  on Schedule 
order with your return. For e-filed returns, you may pay         OR-ASC-CORP, code number 379 (ORS 317.010).
online or send a check or money order separately. If you 
mail your payment separate from your return, write               Broadcasters
“Amended”  on  the  payment  and  include  a  completed          SB 136 (2021) defines broadcasting sales and repeals the 
Form OR-20-V with the amended box checked.                       interstate broadcaster provisions applicable before Janu-
Don’t amend your Oregon return if you amend the fed-             ary 1, 2020. 
eral return to carry a net operating loss back to prior 
                                                                 For tax years beginning on or after January 1, 2020,  tax-
years. Oregon allows corporations to carry net operat-
                                                                 payers with broadcasting sales must use an audience/
ing losses forward only.
                                                                 subscriber factor, as demonstrated through the  use of 
On the estimated tax payments   line of your amended             third-party ratings information or the taxpayer’s books, 
Form OR-20, enter the net excise tax per the original            papers, records, or memoranda, to source their broad-
return or as previously adjusted. Don’t include any pen-         casting sales to Oregon. Taxpayers with broadcasting 
alty or interest portions of payments already made.              sales may elect to apply their audience/subscriber factor 
If paying additional tax with your amended return, you           to all their gross receipts except sales of real property 
must include interest with your payment. Interest is fig-        and tangible personal property. In certain circumstances, 
ured from the day after the due date of your original            taxpayers may source receipts from advertising on or 
return up to the day we receive your full payment. See           licensing to subscription services using a statutorily pre-
“Interest rates.”                                                scribed 0.6% apportionment factor. See SB 136 for more 
                                                                 information. 
Pay all tax and interest due with your amended return 
or within 30 days of receiving a billing notice from us to 
                                                                 Exempt organizations
avoid being charged a 5 percent late payment penalty.
                                                                 If  you’re  an  exempt  organization  under  IRC  §§501(c) 
Protective claims                                                through (f), 501(j), 501(n), 521, or 529, you’re exempt from 
                                                                 Oregon corporation taxes [ORS 317.080 (1)–(8)]. Apply to 
Don’t file an amended return as a protective claim.              the IRS for exempt status, don’t apply to us. Two excep-
Use Oregon Form OR-PCR,        Protective Claim for Refund,      tions are nonprofit homes for the elderly and people’s 
150-101-184, when your claim to a refund is contingent 
                                                                 utility districts established under ORS Chapter 261.
on a pending court decision or legislative action. Notify 
us within 90 days of the final determination by filing an        If you’re exempt from Oregon tax and don’t have unre-
amended return. Don’t file an amended return before              lated business taxable income (UBTI) as defined in IRC 
the pending action is final.                                     §512, don’t file an Oregon tax return. UBTI is gross unre-
                                                                 lated business income less allowable deductions, includ-
                                                                 ing a special $1,000 deduction.
Special filing requirements
                                                                 If you have UBTI, file Form OR-20 and include a copy 
Agricultural or horticultural cooperatives                       of your federal Form 990-T. Organizations exempt from 
                                                                 federal tax, but not exempt from Oregon tax, must also 
For purposes of the            corporate minimum tax only, the 
                                                                 file Form OR-20 and include a copy of federal Form 990-T.  
Oregon sales of agricultural or horticultural coopera-
tives doesn’t include sales representing business done           An exempt organization filing Oregon Form OR-20 is 
with or for the cooperative’s members. If you’re an agri-        subject to the greater of calculated excise tax based on 
cultural or horticultural cooperative, check the box in the      UBTI apportioned or allocated to Oregon or Oregon 
header for Ag co-op.                                             minimum tax.  For  minimum  tax  purposes,  include  in 
                                                                 “Oregon sales” only gross unrelated business income 
Your Schedule OR-AP, part 1, must show     all sales 
                                                                 apportioned or allocated to Oregon. Tax-exempt gross 
in Oregon and elsewhere to correctly compute your 
                                                                 income isn’t included.
apportionment percentage. However, for minimum tax 
purposes, show the amount of sales not done with or              Note: Some religious organizations that qualify under 
for members of the co-op in the header of the Schedule           IRC § 501(d) may file as partnerships.
150-102-020-1 (Rev. 10-28-22)                                  6                                2022 Form OR-20 Instructions

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Homeowners associations                                         extent it has transactions with related parties. If you 
                                                                have transactions other than with related parties, com-
A homeowners association organized and operated                 plete your Form OR-20 as a normal corporation filer, 
under IRC §528(c) may elect to be treated as a tax-exempt       and check the IC-DISC checkbox in the return header.
organization (ORS 317.080). The association must make 
the election no later than the time prescribed by law for      The Oregon IC-DISC return is due by the 15th day of the 
filing the return. A copy of the federal Form 1120-H filed     month following the due date of the federal return. For 
with the IRS will constitute this election when filed with     example, a calendar-year federal Form 1120-IC-DISC is 
us. Tax-exempt status will only exempt the association         due nine months after the year-end (September 15). The 
from tax on the exempt function income, such as mem-           Oregon return for the IC-DISC is due October 15. 
bership dues, fees, and assessments from member-own-           If the 15th falls on a Saturday, Sunday, or legal holiday, 
ers of residential units in the particular condominium or      the due date is the next business day. No extensions are 
subdivision involved. Oregon follows the federal defini-       allowed for IC-DISC returns per federal and Oregon laws.
tion of nonexempt function income. 
Don’t file Form OR-20 if you don’t have nonexempt              Form OR-20 line instructions for IC-DISCs 
function income for Oregon tax purposes. Only file a           (formed on or before January 1, 2014)
copy of your federal Form 1120-H with us.
                                                               Important: Check the IC-DISC box at the top of the form.
File an Oregon Form OR-20, with a copy of federal Form 
1120-H, if the association has taxable income. Homeown-        Line 1. Taxable income from the U.S. Corporation Income 
ers  association taxable  income  for  Oregon  is  generally   Tax Return. Enter the “total commissions received” 
the same as for federal purposes. It’s gross nonexempt         reported for federal income tax purposes [federal 
income less directly-related deductions, less the specific     Form 1120-IC-DISC, Schedule B, column c, lines 1c, 2k, and 
$100 deduction. However, net capital gains are included        3g]. Carry this amount to:
in the computation and receive no special treatment.           • Line 3—Income after additions; 
An association filing Oregon Form OR-20 is subject to          • Line 5—Income before net loss deductions; and
the greater of calculated excise tax or Oregon minimum         • Line 9—Oregon taxable income.
tax. For minimum tax purposes, include in “Oregon              Line 10. Calculated excise tax. Multiply the amount 
sales” only Oregon nonexempt function income.                  from line 9 by 2.5 percent. Enter the result. Carry this 
                                                               amount to: 
Insurers
                                                               • Line 14—Tax; 
Insurers that have a separate return filing require-           • Line 16—Tax before credits;
ment under ORS 317.710(5) and (7) can’t be included in         • Line 20—Excise tax after credits; and
an Oregon consolidated return. Instead, they generally         • Line 22—Net excise tax.
determine Oregon corporate excise tax  on a  separate 
basis. The remaining affiliates in the Oregon consoli-         Limited liability companies (LLCs)
dated  return  compute  their  modified  federal  consoli-
dated taxable income after exclusion of the insurer with       Oregon follows federal law in determining how an LLC 
the separate return filing requirement. Also, the Oregon       is taxed. Federal law doesn’t recognize an LLC as a clas-
consolidated return receives a 100 percent dividends-          sification  for  federal  tax  purposes.  An  LLC  business 
received deduction if a dividend is paid by an insurer         entity must file a corporation, partnership, or sole pro-
that has a separate return filing requirement. See Form        prietorship tax return, depending on elections made by 
OR-20-INS and instructions for more information about          the LLC and the number of members. 
insurance company filing requirements.                         A multi-member LLC can be either a partnership or a 
                                                               corporation, including an S corporation. A single mem-
Interest charge domestic international sales                   ber LLC (SMLLC) can be either a corporation or a single 
corporations (IC-DISCs) (ORS 317.283, 317.635)                 member “disregarded entity.” Refer to federal law for 
                                                               more information and requirements.
If your corporation is an IC-DISC, file Form OR-20 and 
check the IC-DISC checkbox at the top of the form.             An LLC taxed as a C corporation must file Form OR-20 
                                                               if doing business in Oregon, or Form OR-20-INC if not 
• An IC-DISC formed on or before January 1, 2014 is 
                                                               doing business in Oregon but receiving Oregon-source 
exempt from minimum tax. Complete your Form 
                                                               income. The  LLC must  file Form OR-20-S  if the  entity 
OR-20 using the instructions below.
                                                               files federal Form 1120-S.
• Commissions received by an IC-DISC formed on or 
before January 1, 2014 are taxed at 2.5 percent.               An LLC taxed as a partnership must file Form OR-65, 
• An IC-DISC formed after January 1, 2014 isn’t exempt         Oregon Partnership Return, if doing business in Oregon, 
from minimum tax. However, it’s disregarded to the             or if receiving Oregon-source income, or if it has any 
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Oregon resident members. If the LLC has a corporate chapter 317 or 318 and calculates their Oregon apportion-
member, the member is taxed on its share of the LLC’s ment factors and Oregon net income in the same manner
Oregon income. as a corporation with a separate filing requirement under
ORS 317.710. REITs or RICs doing business in Oregon are
If an LLC is part of a corporation’s overall business oper-
subject to Oregon minimum tax. Business trusts that
ations and is treated as a partnership, include the corpo-
qualify as REITs filing separate returns aren’t allowed
ration’s ownership share of LLC property, payroll, and
an Oregon deduction for net losses of prior years.
sales in the corporation’s apportionment percentage cal-
culation on Schedule OR-AP (ORS 314.650 and support- Distributions from a REIT or RIC to its shareholders are
ing administrative rules). treated the same as distributions from a corporation to
its shareholders for purposes of ORS chapters 316, 317,
Foreign LLCs are identified as unincorporated associa-
and 318.
tions organized under the laws of a state other than Ore-
gon, or a foreign country. Oregon’s definition of a foreign
LLC includes an unincorporated association organized Real Estate Mortgage Investment Conduits
under the laws of a federally recognized American (REMICs)
Indian tribe, no matter when organized. A REMIC isn’t subject to Oregon tax; the income is tax-
able to the holders of the REMIC’s interests under ORS
Political organizations Chapter 316, 317, or 318, whichever is applicable. A
Political organizations (for example, campaign commit- REMIC must file Form OR-20-INC if it receives prohib-
tees and political parties) normally don’t pay state or fed- ited transaction income from Oregon sources.
eral taxes. However, income earned from investments is All REMICs required to file must include a complete
taxable. Examples include interest earned on deposits; copy of federal Form 1066. The REMIC must also include
dividends from contributed stock, rents, or royalties; and a federal Schedule Q for each residual interest holder for
gains from the sale of contributed property. We follow each quarter of the tax year. Report the amount of net
the federal definitions of political organizations and tax- income from prohibited transactions from federal Form
able income. 1066 Schedule J (ORS 314.260).
A political organization that isn’t incorporated and hasn’t
elected to be taxed as a corporation should file a personal Filing checklist
income tax return under ORS 316.277(2).
Rounding to whole dollars. Enter amounts on the return
For more information, including how to file your return,
and accompanying schedules as whole dollars only.
go to www.oregon.gov/dor/business.
Example: $4,681.55 becomes $4,682; and $8,775.22 becomes
$8,775.
Publicly traded partnerships
• Due date of your return. Returns are due by the 15th
A “publicly traded partnership” is a partnership treated day of the month following the due date of your fed-
as a corporation for federal tax purposes under IRC §7704. eral corporation return. When the 15th day falls on a
The partners in a publicly traded partnership aren’t Saturday, Sunday, or legal holiday, the due date is the
subject to tax on their distributive shares of partnership next business day.
income. A publicly traded partnership taxed as a corpo- • Extensions. See the instructions below for the exten-
ration must file Form OR-20 if doing business in Oregon, sion checkbox. When you file, include the extension as
or Form OR-20-INC if not doing business in Oregon but the final page of your return.
is receiving Oregon-source income.
• Payments.
Real Estate Investment Trusts (REITs) and ° Payments received after the original due date will be
Regulated Investment Companies (RICs) applied first to penalty, then to interest, and then to
tax [ORS 305.265(13)].
A REIT or RIC that isn’t included in a federal consoli-
° Estimated payments and prepayments. Identify all
dated return based on the provisions of IRC §1504(b)(4)
estimated payments claimed by completing Sched-
must be included in the Oregon consolidated return.
ule ES on page 5 of your return. List all payments
These REITs or RICs are subject to the provisions of
that were submitted prior to filing your return.
ORS 317.715 and supporting administrative rules. For
Include the corporation name and FEIN if a payment
apportioning taxpayers, factors from the REIT or RIC are
was made by an affiliate of the filing corporation.
included in the apportionment calculation of the consoli-
Missing or incomplete information on payments
dated Oregon return.
made by an affiliate could result in a billing.
A REIT or RIC that isn’t required to be included in an ° Online payments. You may pay online for any
Oregon consolidated return is subject to tax under ORS return at www.oregon.gov/dor. Search “payments.”
150-102-020-1 (Rev. 10-28-22) 8 2022 Form OR-20 Instructions

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° Making electronic payments with your e-filed
return. We accept electronic payments when e-filing Form instructions
your original return.
Heading and checkboxes
° Making check or money order payments with your
paper return. Make your check or money order pay- • OR-FCG-20 checkbox. A reduced tax rate is available
able to Oregon Department of Revenue. Write the if you sold or exchanged capital assets used in farm-
following on your check or money order: ing. Complete Schedule OR-FCG-20 and check the box
— Filer FEIN. in the header of the form.
— Tax year beginning and ending dates. • Extension checkbox. For an Oregon extension when
— Contact phone. you’re also filing for a federal extension: Send a copy
° To speed up processing of your return: of the federal extension with the Oregon return when
— Don’t use Form OR-20-V payment voucher. you file. Check the extension checkbox on your Ore-
— Don’t staple payment to the return. gon return and include a copy of the extension after all
— Don’t send cash or postdated checks. other enclosures.
— Don’t use red or purple or any gel ink. For an “Oregon only” extension: Answer question 1 on
• Assembling your return. Assemble your Oregon federal extension Form 7004, write “For Oregon Only”
return forms in the following order: at the top of the form, and include it with your Oregon
1. Form OR-20, Oregon Corporation Excise Tax Return; return when you file. Check the extension checkbox
2. Schedule OR-AP, Apportionment of Income for Corpo- on the Oregon return.
rations and Partnerships; The Oregon extension due date is the 15th day of the
3. Schedule OR-AF, Schedule of Affiliates; month following the federal extension’s due date. Don’t
4. Schedule OR-PI, Schedule of Partnership Information; send the extension before you file your Oregon return.
5. Schedule OR-ASC-CORP, Oregon Adjustments; More time to file doesn’t mean more time to pay your
6. Form OR-37, Underpayment of Oregon Corporation tax. To avoid penalty and interest, pay your tax due
Estimated Tax; online, or by mail with Form OR-20-V, by the original
7. Form OR-DRD, Dividends-Received Deduction; due date of your return. Note: Filing Form OR-20-V
8. Form OR-24, Like-Kind Exchanges/Involuntary isn’t an extension of time to file your tax return.
Conversions;
If you’re making an extension payment by mail, send
9. Schedule OR-FCG-20, Farm Liquidation Long-Term the payment to: Oregon Department of Revenue, PO
Capital Gain Tax Adjustment; Box 14950, Salem OR 97309-0950.
10. Other Oregon statements;
11. Oregon credit forms including notice of credit Include on your check:
transfers; ° FEIN.
12. Copy of federal tax return and schedules; and ° “Extension.”
Form 7004, Federal extension. ° Tax year beginning and ending dates.
° Contact phone.
• Form OR-37 checkbox. If you have an underpayment
Mailing Addresses
of estimated tax, you must include a completed Form
Tax-due returns, with or without payment, mail to: OR-37. Check the Form OR-37 box in the header of your
Oregon Department of Revenue return.
PO Box 14790 Use Form OR-37 to:
Salem OR 97309-0470
° Calculate the amount of underpayment of estimated
(Do NOT include a payment voucher.)
tax;
Refunds or no tax-due returns, mail to: ° Compute the amount of interest you owe on the
Oregon Department of Revenue underpayment; or
PO Box 14777 ° Show you meet an exception to the payment of
Salem OR 97309-0960 interest.
Check or money order payments only, mail to: • REIT/RIC checkbox. If you participated in a REIT or
Oregon Department of Revenue RIC, you must check the appropriate box in the header
PO Box 14950 area of the Oregon tax return.
Salem OR 97309-0950 • Amended checkbox. Check the amended box if this is
(Include Form OR-20-V payment voucher.) an amended return.

150-102-020-1 (Rev. 10-28-22) 9 2022 Form OR-20 Instructions

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• Form OR-24 checkbox.         Corporations may  defer,           the minimum tax, your minimum tax shall be appor-
  for Oregon tax purposes, all gains realized in the              tioned as follows:
  exchange of like-kind property and involuntary con-
                                                                    Annualize Oregon sales by multiplying actual Oregon 
  versions under IRC §1031 or §1033, even though the              sales by 12 and dividing by the number of months in 
  replacement property is outside Oregon. Oregon will             the short period. Use the minimum tax table in Appen-
  tax the deferred gain when it’s included in federal tax-        dix B to determine minimum tax on annualized Ore-
  able income.                                                    gon sales.
  Include a copy of your Oregon Form OR-24, Like-Kind               Apportion  the  minimum  tax  determined  above  by 
  Exchanges/Involuntary Conversions,  150-800-734, with           multiplying by the total number of months in the short 
  your Oregon return and check the Form OR-24 box if              period and dividing it by 12.
  all of the following apply:
                                                                  • Alternative apportionment checkbox. See Appendix 
    ° The corporation reported deferred gain on a federal         C for complete information. Check this box if you have 
  Form 8824;                                                      included a request with your return.
    ° All or part of the property exchanged or given up 
                                                                  Name. Generally, a consolidated Oregon return is filed 
  was located in Oregon; and
                                                                  in the name of the common parent corporation. If the 
    ° All or part of the acquired property was located out-
                                                                  parent corporation isn’t doing business in Oregon, file 
  side of Oregon.
                                                                  the return in the name of the member of the group hav-
  For a more detailed explanation, see ORS 314.650 and            ing the greatest presence in Oregon. “Having the great-
  314.665 and supporting administrative rules regarding           est presence” means that the member has the largest 
  apportionment of deferred gain.                                 Oregon property value as determined under ORS 314.655 
                                                                  (see Schedule OR-AP).
• IC-DISC checkbox.            Check this box if you are an IC-
  DISC regardless of what date you were formed. See               • Legal  name. Enter  the corporation’s  current  legal 
  “Special filing requirements” for more information.             name as set forth in the articles of incorporation or 
                                                                  other legal document.
• Ag co-op checkbox. Check this box if your corporation 
                                                                  • FEIN. Enter the FEIN of the corporation named as the 
  qualifies as an agricultural or horticultural coopera-
                                                                  filer on the consolidated Oregon return.
  tive and you’re determining Oregon sales for mini-
  mum tax purposes differently than the Oregon sales              • DBA/ABN. If the corporation is doing business under 
  reported on Schedule OR-AP, part 1. See “Special filing         a different name, for example, DBA or ABN, enter that 
  requirements” for more information.                             name.
• Federal Form 8886 checkbox and reportable transac-              • Current address. Always enter the corporation’s cur-
  tions. If you’re required to report listed or reportable        rent address. If the address for the year you’re filing 
                                                                  has changed, don’t use the old address or our system 
  transactions to the IRS on federal Form 8886, you must 
                                                                  will revert your current address to the old address.
  check this box. We’ll assess penalties if you don’t com-
  ply with this requirement.
                                                                  Questions
• Global intangible low-taxed income (GILTI) included 
                                                                  Questions A–C. Complete only if this is your first return 
  on federal return. If you included GILTI on your federal 
                                                                  or the answer changed during the tax year.
  return, check this box.
                                                                  Question D. Refer to the current list of North American 
• Accounting period change checkbox. Check this box 
                                                                  Industry Classification System (NAICS) codes found 
  only if both of the following apply:
                                                                  with your federal tax return instructions. Only enter the 
    ° The excise tax return covers a period of less than 12       code if this is your first return, the current code is dif-
  months; and                                                     ferent than you reported last year, or your code begins 
    ° The short-period return is due to a qualified change        with “111” or “112”.
  in accounting period per IRC §§441 to 444.                      Question E(1). Check this box if you filed a consolidated 
  Note: A short-period return doesn’t automatically con-          federal return. Include a list of the corporations included 
  stitute a qualified change in accounting period. A tax-         in the consolidated federal return.
  payer that isn’t in existence for the entire year shouldn’t     Question E(2). Check this box if you filed a consolidated 
  check this box. This includes subsidiaries that join or         Oregon return. Complete Schedule OR-AF,   Schedule of 
  leave a consolidated filing group, and newly formed or          Affiliates, and list only the corporations included in the 
  dissolved corporations.                                         consolidated Oregon return that:
  If you file a short-period return due to a qualified            • Are doing business in Oregon; or
  change in accounting period and you’re subject to               • Have income from Oregon sources.
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Question E(3). Check this box if it applies. Include a        Additions
list of corporations included in the consolidated federal 
                                                              Line 2. Total additions from Schedule OR-ASC-CORP, 
return that aren’t included in this Oregon return. List 
                                                              Section A. The amount by which any item of income is 
each corporation’s name and FEIN. Note: Include a copy        greater under Oregon law than under federal law, or the 
of your federal return and schedules as filed with the        amount by which any allowable deduction is less under 
IRS.                                                          Oregon law than under federal law, is an addition on 
Question F. If the filing corporation (shown above as         your Oregon return.
legal name) is a subsidiary in an affiliated group, or a      Use Schedule OR-ASC-CORP, Section A, to report the 
subsidiary in a parent-subsidiary controlled group, enter     amount and description code of each difference. Use the 
the name and FEIN of the parent corporation. For def-         description code from the list in Appendix A. The total 
inition of a subsidiary in an affiliated group or a par-      of all additions are entered on Form OR-20, line 2.
ent-subsidiary controlled group, see federal Form 1120,       Additions include:
Schedule K.
                                                              • Bad debt reserve addition of a financial institution 
Question G. Enter the total number of corporations              to the extent that the federal amount exceeds the 
doing business in Oregon that are included in this return.      amount that’s allowable for Oregon.    The bad debt 
                                                                method of financial institutions is tied to the federal 
Question L. Utility or telecommunications compa-                method. For taxpayers required to use the specific 
nies. Taxpayers primarily engaged in utilities or tele-         write-off method, an addition must be made if the 
communications may elect to apportion income using a            amortization of the federal reserve is less than the 
double-weighted sales factor formula (ORS 314.280 and           amortization of the Oregon reserve (ORS 317.310).
supporting administrative rules). Check the box if mak-
                                                              • Capital construction fund. Amounts deferred under 
ing this election.
                                                                Section 607 of the Merchant Marine Act of 1936 and 
Question M. PL86-272 protected affiliate(s). Check this         IRC  §7518  must  be  added  back  to  federal  taxable 
box only if you or an affiliate included in this return         income (ORS 317.319).
claim Oregon sales are protected from Oregon taxation         • Charitable donations not allowed for Oregon. Dona-
because of Public Law 86-272.                                   tions to a charitable organization that has received a 
                                                                disqualifying order from the Attorney General aren’t 
Question N. Total Oregon sales. 
                                                                deductible as charitable donations for Oregon tax pur-
• Apportioned returns.         Enter the amount of Oregon       poses. Such organizations are required to provide a 
sales from Schedule OR-AP, line 22(a) and OAR                   disclosure to a donor to acknowledge this. The Attor-
150-317-0540.                                                   ney General will publish online and otherwise make 
                                                                publicly available  information identifying the  chari-
• Nonapportioned returns.      Enter the amount of sales        table organizations receiving a disqualification order. 
as defined by ORS 314.665. Generally, C corporations            If you claimed a federal deduction, an addition must 
doing business only within Oregon will calculate Ore-           be made on your Oregon return for donations to such 
gon sales by adding:                                            charitable organizations (ORS 317.491).
  ° Gross receipts from sales of inventory (less returns      • Child  Care  Office  contributions  carryover.  Any 
and allowances), equipment, and other assets;                   deduction claimed on your federal return must be 
  ° Gross rent and lease payments received; and                 added back to federal taxable income on your Oregon 
  ° Gross receipts from the performance of services.            return if you claim the Oregon credit (ORS 315.213).
     Note: (This is a non-exclusive list.)                    • Claim of right income repayment adjustment when 
                                                                credit’s claimed. The deduction under IRC §1341 on 
Generally, for purposes of determining minimum tax, 
                                                                the federal return must be added back to federal tax-
the calculation for Oregon sales includes gross business 
                                                                able income on your Oregon return if the Oregon cred-
income amounts from federal Form 1120, lines 1c and 5           it’s claimed (ORS 317.388).
through 10. Include positive numbers only.
                                                              • 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 
150-102-020-1 (Rev. 10-28-22)                              11                                  2022 Form OR-20 Instructions

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code is assigned for the specific type of increased or ° The owner and the user aren’t included in the same
decreased income (ORS 314.733). Visit our website for Oregon tax return; and
more information. ° The separation of ownership of the intangible asset
from the user of the intangible asset results in either:
• Deferred gain recognized from out-of-state disposi-
evasion of tax or a computation of Oregon taxable
tion of property acquired in an IRC §1031 or §1033
income that isn’t clearly reflective of Oregon busi-
exchange. See ORS 317.327 regarding the computation
ness income.
of the addition if gain or loss is recognized for federal
tax purposes but not taken into account in the compu- If the owner also files an Oregon return, the owner
tation of Oregon taxable income. of the intangible asset must report the correspond-
ing royalty or other income as a negative addition on
• Depletion (percentage in excess of cost). Add the fed-
Schedule OR-ASC-CORP, Section A (ORS 314.295 and
eral deduction that is in excess of the Oregon allow-
supporting administrative rules).
ance for depletion (ORS 317.374).
• Interest income excluded from the federal return.
• Depreciation differences. If your Oregon deprecia-
Oregon gross income includes interest on all state and
tion isn’t the same as your federal depreciation, the
municipal bonds excluded for federal tax purposes.
difference is a required modification to your Oregon
Reduce the addition by any interest incurred to carry
return (ORS 317.301). Use Schedule OR-DEPR to deter-
the obligations and by any expenses incurred in pro-
mine the Oregon modification.
ducing this interest income (ORS 317.309).
• Gain or loss on the disposition of depreciable prop-
• Inventory costs. The costs allocable to inventory are
erty. Add the difference in gain or loss on sale of busi-
the same as those included in IRC §263A. Differences
ness assets when your Oregon basis is less than your
in depreciation and depletion allocable to inventory
federal basis (ORS 317.356 and OAR 150-317-0420).
result in a modification [ORS 314.287(3)].
• Global intangible low-taxed income (GILTI) under
• IRC §139A federal subsidies for prescription drug
IRC Section 250. You must add back any GILTI amount
plans. For federal purposes, taxpayers can exclude
not included in Line 1 of your Oregon return. Gener-
from taxable income certain federal subsidies for
ally, the federal deduction is taken on line 29b of fed-
prescription drug plans per IRC §139A. However, for
eral Form 1120 and doesn’t impact the Oregon return.
Oregon purposes, this federally excluded income is an
However, if any amount was omitted or deducted in
addition on the Oregon return (ORS 317.401).
determining federal income carried to line 1 of your
Oregon return, it must be added back before a subtrac- • IRC §631(a) treatment of timber isn’t recognized by
tion can be claimed. Report the Oregon addition (if Oregon. Both beginning and ending inventories must
any) on Schedule OR-ASC-CORP using code number be adjusted for IRC §631(a) gain. For Oregon purposes,
186 (ORS 317.267). there’s no taxable event until actual sale (ORS 317.362).
• Income from sources outside the United States. Add • Losses of nonunitary corporations. Net losses of non-
income from sources outside the United States, as unitary corporations included in a consolidated federal
defined in IRC §862, not included in federal taxable return must be eliminated from the Oregon return.
income under IRC §§861 to 864 (ORS 317.625). Net losses include the separate loss as determined
under Treasury Regulations adopted for IRC §1502,
• Income of related FSC or DISC. Net income or loss
and deductions, additions, or items of income, expense,
must be included in the net income of the related U.S.
gain, or loss for which the consolidated treatment is
affiliate if the related FSC or DISC doesn’t qualify for
prescribed. Include a schedule showing your compu-
ORS 317.283(2) treatment. (ORS 317.283 and 317.286).
tation of the total net loss eliminated [ORS 317.715(2)].
• Individual Development Account credit. Donations
• Losses of unitary insurance affiliates. If a unitary
deducted on the federal return must be added back to
insurance affiliate has a separate return filing require-
federal taxable income if the Oregon credit’s claimed
ment, they’re excluded from the consolidated Oregon
[ORS 315.271(2)].
return. The insurance affiliate is treated as if it’s a non-
• Intercompany transactions involving intangible unitary affiliate of its consolidated group and the loss
assets. The user of the intangible asset must add the (if any) is an addition (ORS 317.715).
royalty or other expense for such use to federal taxable
• Net federal capital loss deduction. If the Oregon and
income as an addition on the Oregon tax return if:
federal capital loss deductions are different, add the
° An intangible asset is owned by one corporation or federal capital loss back to federal taxable income. The
business (the owner), and used by another (the user) Oregon capital loss will be deducted after subtrac-
for a royalty or other fee; tions (and apportionment for corporations required to
° Both the owner and the user are “owned by the same apportion income) to arrive at Oregon taxable income
interests,” as defined in Treas. Reg. §1.469-4T(w); (ORS 317.013 and supporting administrative rules).

150-102-020-1 (Rev. 10-28-22) 12 2022 Form OR-20 Instructions

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• Opportunity Grant Fund (auction). Any federal deduc- • Bad debt reserve addition of a financial institution
tion for contributions for which an Opportunity Grant to the extent that the Oregon amount exceeds the
Fund tax credit certification is made must be added to amount that’s allowed on the federal return. A sub-
federal taxable income ORS 315.643). traction is also made if the amortization of the federal
reserve is greater than the amortization of the Oregon
• Oregon excise tax and other state or foreign taxes
reserve (ORS 317.310).
on or measured by net income. Oregon excise tax
may not be deducted on the Oregon return. Taxes of • Charitable contribution. Subtract the amount by
other states or foreign governments on or measured which a corporation must reduce its charitable contri-
by net income or profits may not be deducted on the bution deduction under IRC §170(d)(2)(B) (ORS 317.307
Oregon return. If you subtracted these taxes on your and OAR 150-317-0350).
federal return, you must add them back on your Ore-
gon return. However, the Oregon minimum tax and • CPAR subtraction. If you’re an owner of a partner-
local taxes, such as the Multnomah County Business ship that was subject to a partnership-level audit by
Income tax, are deductible, and aren’t required to be the IRS (or you’re an owner of a tiered partner of such
added back (ORS 317.314). a partnership), you may have to increase or decrease
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 tion that is in excess of the federal deduction for deple-
317.349 and supporting administrative rules for details tion (ORS 317.374).
about the adjustments required for Oregon.
• Depreciation differences. If your Oregon deprecia-
• University venture development fund contributions.
tion isn’t the same as your federal depreciation, the
Add to federal taxable income the amount of contri-
difference is a required modification to your Oregon
butions used to calculate the University Venture Fund
return (ORS 317.301). Use Schedule OR-DEPR to deter-
Contribution credit that were deducted from federal
mine the Oregon modification.
taxable income (ORS 315.521).
• Dividend deduction. A 70 percent deduction is
• Unused business credits. Unused business credits
allowed for qualifying dividends regardless of geo-
taken as a federal deduction under IRC §196 must be
graphic source. An 80 percent deduction is allowed for
added back to federal taxable income (ORS 317.304).
dividends received from corporations whose stock is
Line 3. Income after additions (line 1 minus line 2). owned 20 percent or more. Use Oregon Form OR-DRD
for computing the Oregon dividend deduction and
Subtractions include it with your return (ORS 317.267).
Line 4. Total subtractions from Schedule OR-ASC-CORP, • Energy conservation payments. Any amount received
Section B. The amount by which an item of income is less as a cash payment for energy conservation measures
under Oregon law than federal law, or the amount by is exempt from Oregon excise tax (ORS 469.631 to
which an allowable deduc tion is greater under Oregon 469.687). Subtract any amount that’s included in fed-
law than federal law, is a subtraction on your Oregon eral taxable income (ORS 317.386).
return.
• Federal credits. Subtract the amount of expense not
Use Schedule OR-ASC-CORP, Section B, to report the deducted on the federal return attributable to claiming
amount and description code of each difference. Use the a federal credit (ORS 317.303).
description code from the list in Appendix A. The total
• Federal investment tax credit on certain assets. If you
of all subtractions are entered on Form OR-20, line 4.
take a federal tax credit on certain assets, and your
Subtractions include: federal basis is less than your Oregon basis, you must
150-102-020-1 (Rev. 10-28-22) 13 2022 Form OR-20 Instructions

- 14 -

recalculate the gain or loss on disposal of those assets • IRC Section 245A foreign-source portion dividends.
and subtract the difference (ORS 317.356). Oregon allows a 100 percent subtraction of the foreign-
source portion of dividends from certain foreign cor-
• Film production labor rebate. Subtract the amount
received as a labor rebate that’s included in federal tax- porations under IRC Section 245A. The subtraction is
able income (ORS 317.394). allowed only if the amount is included in federal tax-
able income reported on line 1 of your Oregon return.
• Foreign derived intangible income (FDII) under IRC Generally, the federal deduction amount is reported
Section 250. Oregon is connected with the FDII deduc- on federal Form 1120, Schedule C, line 13. Report your
tion on your federal return. Generally, the federal deduc- Oregon subtraction on Schedule OR-ASC-CORP using
tion amount is reported on federal Form 8993, Part IV, code number 383. Don’t use Form OR-DRD for this
line 8. Report your Oregon subtraction on Schedule OR- subtraction (ORS 317.267).
ASC-CORP using code number 382. Don’t use Form
OR-DRD for this subtraction [SB 851 (2019)]. • Land donation or bargain sale of land to educa-
tional institutions. Enter the fair market value of land
• Gain or loss on the sale of depreciable property. The donated or the amount of the reduction in sales price of
difference in gain or loss on the sale of business assets
land sold to a school district. The subtraction is limited
when your Oregon basis is greater than your federal
to 50 percent of Oregon taxable income (ORS 317.488).
basis (ORS 317.356).
• Losses from outside the United States. Subtract losses
• Global intangible low-taxed income (GILTI) under
from sources outside the United States, as defined in
IRC Section 250. Oregon allows an 80 percent subtrac-
IRC §862, not included in federal taxable income under
tion of GILTI amounts under IRC Section 951A that are
IRC §§861 to 864 (ORS 317.625).
included in your Oregon income. Report the Oregon
subtraction on Schedule OR-ASC-CORP using code • Manufactured dwelling park tenant payments made
number 381. Don’t use Form OR-DRD for this subtrac- under ORS 90.505 to 90.840 to compensate a tenant for
tion (ORS 317.267). costs incurred due to the closure of the park may be
• IC-DISC commission payments. For tax years begin- subtracted (ORS 317.092).
ning on or after January 1, 2013, a deduction is allowed • Marijuana business expenses. ORS 317.363 allows
for commission payments made to an IC-DISC if the Oregon taxpayers filing a corporate excise or income
IC-DISC was formed on or before January 1, 2014 tax return to deduct business expenses otherwise
(ORS 317.283 and 317.635). barred by IRC §280E if the taxpayer is engaged in mar-
• Income of nonunitary corporations. Net income of ijuana-related activities authorized by ORS 475C.005 to
nonunitary corporations included in a consolidated 475C.525, or ORS 475C.700 to 475C.919.
federal return must be eliminated from the Oregon • Oregon Investment Advantage. To qualify, facilities
return. Net income includes the separate taxable
must be certified by the Oregon Business Develop-
income, as determined under Treasury Regulations
ment Department (dba Business Oregon). For more
adopted for IRC §1502, and any deductions, additions,
information about the program or to get an applica-
or items of income, expense, gain, or loss for which
tion, visit www.oregon.gov/biz. This applies to excise
consolidated treatment is prescribed. Include a sched-
tax filers only.
ule showing computation of the total net income elimi-
nated [ORS 317.715(2)]. How is the subtraction computed? Multiply the Ore-
• Income of unitary insurance affiliates. If a unitary gon taxable income figure (Form OR-20, line 9) as com-
insurance affiliate has a separate return filing require- puted without applying this subtraction by the sum of:
ment, they’re excluded from the consolidated Oregon ° 50 percent of the ratio of the payroll from the cer-
return. The insurance affiliate is treated as if it’s a tified facility over the corporation’s total payroll
nonunitary affiliate of its consolidated group and any within Oregon; and
income is a subtraction (ORS 317.715). ° 50 percent of the ratio of the average value of prop-
• Income on a composite return. A corporate owner of erty from the certified facility over the corporation’s
a pass-through entity (PTE) may subtract its share of total average value of property within Oregon.
distributive income that has already been reported on Corporations that do business both inside and outside
an Oregon composite return. See Publication OR-OC of Oregon and complete Schedule OR-AP must claim
and OAR 150-314-0515 for more information. the subtraction on Schedule OR-AP, part 2, line 10b.
• Inventory costs. The costs allocable to inventory are Corporations with activity only in Oregon (that don’t
the same as those included in IRC §263A. Differences apportion income and don’t use Schedule OR-AP)
in depreciation and depletion allocable to inventory claim the subtraction on Schedule OR-ASC-CORP
result in a modification [ORS 314.287(3)]. using subtraction code 342. (ORS 317.391).
150-102-020-1 (Rev. 10-28-22) 14 2022 Form OR-20 Instructions

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Note: There is no subtraction code associated with • The Oregon deduction is the sum of unused net losses
Schedule OR-AP for apportioning taxpayers. Subtrac- assigned to Oregon for preceding taxable years.
tion code 342 is only used on Schedule OR-ASC-CORP • A net operating loss carryforward is required to be
for taxpayers who do not apportion income. reduced by the entire Oregon net income of interven-
ing tax years [ORS 317.476(4)(b)].
• Patronage dividends (cooperatives only). Coopera-
• Net losses can be carried forward up to 15 years.
tives filing federal Form 1120-C may subtract patron-
• Oregon doesn’t allow net losses to be carried back.
age dividends that are included in Oregon taxable
• For losses, and built-in losses occurring before a
income (ORS 317.010).
change in ownership [separate return loss year (SRLY)
• Psilocybin business expenses. ORS 317.363 allows limitations], Oregon is tied to the federal limitations
Oregon corporation excise and income tax filers to (IRC §382 and §384; ORS 317.476 and 317.478).
subtract certain business expenses otherwise barred • The total net loss deduction on a consolidated Oregon
by IRC §280E if the corporation is engaged in psilo- return is the sum of the net losses available to each
cybin-related activities authorized by ORS 475A.210 to of the corporations subject to the limitations in ORS
475A.722, the Oregon Psilocybin Services Act. Use sub- 317.476 and supporting administrative rules.
traction code 385 on Schedule OR-ASC-CORP. • REITs, if qualified under IRC §856, aren’t allowed a net
loss deduction [ORS 317.476(5)].
• REITs and RICs. A REIT or RIC meeting the federal
affiliate definition must be included in the consoli- Line 7. Net capital loss deduction.
dated Oregon return. This is an Oregon modification
• Enter the deduction on line 7 if taxable only by Ore-
(addition or subtraction) to federal taxable income. For
gon. Enter as a positive number.
apportioning taxpayers, factors from the REIT or RIC
• Enter the deduction on Schedule OR-AP, part 2, line
are included in the apportionment calculation of the
10b if taxable both in Oregon and another state.
consolidated Oregon return (ORS 317.010 and support-
• Include a schedule showing your computations,
ing administrative rules).
including the tax year the net capital loss originated
• Sale of manufactured dwelling park. The net gain (ORS 317.013 and supporting administrative rules).
attributable to the sale of a manufactured dwelling • Oregon allows a net capital loss deduction for losses
park to a tenant’s association, facility purchase asso- apportioned to Oregon and carried from another year.
ciation, or tenant’s association supported nonprofit • The deductible loss is limited to net capital gain
organization is exempt from tax (see note following included in Oregon income. Capital losses must be
ORS 317.401). carried back three tax years and then may be carried
forward for up to five tax years.
• Taxes paid to a foreign country. You may subtract
from federal taxable income the taxes paid to a foreign Line 8. Apportionment percentage. Enter the appor-
country upon the payment of interest or royalties aris- tionment percentage from Schedule OR-AP, part 1, line
ing from sources within such foreign country, if such 23. If you have income only in Oregon and don’t appor-
taxes are not deductible in arriving at federal taxable tion, enter 100.0000.
income and if the interest or royalties are included in
Line 9. Oregon taxable income (line 5 minus lines 6 and
arriving at Oregon taxable income [ORS 317.314.(3)].
7, or Schedule OR-AP, part 2, line 12).
• Work opportunity credit wages not deducted on the
federal return. Subtract the amount of wages that Tax
weren’t deducted on the federal return because the
Line 10. Calculated excise tax. Don’t enter the mini-
work opportunity credit was claimed (ORS 317.303).
mum tax on this line. See Appendix B for computation.
Line 5. Income before net loss deduction (line 3 minus Line 11. Schedule OR-FCG-20 adjustment. A reduced
line 4). tax rate is available if you sold or exchanged capital assets
used in farming. Subtract the amount of adjustment for
Line 6. Net loss deduction. tax on net long-term capital gain from farm property
from line 9 of Schedule OR-FCG-20 (ORS 317.063).
• Enter the deduction on line 6 if taxable only by Ore-
gon. Enter as a positive number. Line 12. Total calculated excise tax (line 10 minus line 11).
• Enter the deduction on Schedule OR-AP, part 2, line
Line 13. Minimum tax. The minimum tax for C corpora-
10a if taxable both in Oregon and another state.
tions and insurance companies doing business in Oregon
• Include a schedule showing your computations.
is based on Oregon sales. Use the table in Appendix B.
• A net loss is the amount determined under IRC Chap-
ter 1, Subtitle A, with the modifications specifically • Consolidated returns: the minimum tax is based on
prescribed under Oregon law. Oregon sales of the affiliated group of corporations

150-102-020-1 (Rev. 10-28-22) 15 2022 Form OR-20 Instructions

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filing an Oregon return. One minimum tax applies Credits
to the affiliated group filing the consolidated return,
For a list and description of Oregon corporation cred its,
not to each individual affiliate included in the consoli-
visit www.oregon.gov/dor.
dated return doing business in Oregon.
• The minimum tax isn’t apportionable for a short tax Note: Minimum tax can’t be “reduced, paid, or otherwise
year (except a change of accounting period). satisfied through the use of any tax credit” (ORS 317.090).
Nonapportioned returns—C corporations doing busi- Important:
ness only within Oregon will calculate Oregon sales by
• All credits are claimed on Schedule OR-ASC-CORP.
adding: • Use the description code from the list in Appendix A.
• Gross receipts from sales of inventory (less returns • List credits and codes on the OR-ASC-CORP in the
and allowances), equipment, and other assets; order you want them used.
• Gross rent and lease payments received; • Generally, taxpayers must claim the full amount of a
• Gross receipts from the performance of services; and credit allowed per year (ORS 314.078).
• Gross receipts from the sale, exchange, redemption, or • Credits can’t be used to offset minimum tax, unless
holding of intangible assets developed by or used in specified in statute.
the business operations.
Note: (This is a non-exclusive list.) Line 17. Total standard credits from Schedule OR-ASC-
CORP, Section C. Enter as a positive number.
Generally, for purposes of determining minimum tax,
Oregon sales includes gross business income amounts Line 18. Tax after standard credit (line 16 minus line 17).
from federal Form 1120, lines 1c, and 5 through 10. Don’t enter less than minimum tax.
Include positive numbers only. Line 19. Total carryforward credits from Schedule OR-
Apportioned returns —C corporations and insurance ASC-CORP, Section D. Enter as a positive number.
companies doing business in more than one state that Line 20. Excise tax after standard and carryforward
apportion business income for Oregon tax purposes, use credits (line 18 minus 19). This can’t be less than mini-
the Oregon sales amount from line 22(a) on Schedule mum tax on line 15.
OR-AP, part 1.
Line 21. LIFO benefit recapture subtraction. This
Note: Some entity structures have specific minimum amount is a subtraction from tax after credits. Oregon
tax and filing instructions. See “Special filing require- has adopted the provisions of IRC §1363(d) for S corpora-
ments.” These include: tions. LIFO benefits are included in taxable income for
the last year of the C corporation under these provisions.
• Agricultural and horticultural cooperatives.
On a separate schedule, compute the difference between
• Exempt organizations.
tax (after credits and any surplus refund) on income per
• Homeowners associations.
the return and income without the recapture of LIFO
• Insurers.
benefits. Multiply this difference by 75 percent and enter
• IC-DISCs.
the result on Form OR-20, line 21 as a subtraction from
• LLCs. the tax after standard and carryforward credits. Include
• Political organizations. the computation schedule with the Oregon return.
• Publicly traded partnerships.
• REITs and RICs. On the LIFO benefits line of each of the first three returns
• REMICs. of the new S corporation, add one-third of the tax that
was deferred from the last year of the C corporation. The
Corporations and partnerships with Oregon source
tax on LIFO benefit recapture will be in addition to the
income who aren’t doing business in Oregon aren’t sub-
Oregon minimum tax, if any (ORS 314.771).
ject to the minimum tax. See “What form do I use?”
Line 14. Tax (greater of line 12 or line 13). Oregon tax is Net excise tax
the greater of total calculated tax or minimum tax.
Line 22. Net excise tax (line 20 minus line 21). Don’t
Line 15. Tax adjustments. enter less than minimum tax.
Installment sales interest. If you owe interest on
deferred tax liabilities with respect to installment obli- Payments, penalty, interest, and UND
gations under ORS 314.302, enter the amount of interest Line 23. Estimated tax payments, other prepayments,
as a positive number. Include a schedule showing how and refundable credits (from Schedule ES on page 5).
you figured the interest.
• Fill in the total estimated tax payments made before
Line 16. Tax before credits (line 14 plus line 15). filing your Oregon return.
150-102-020-1 (Rev. 10-28-22) 16 2022 Form OR-20 Instructions

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• List name and FEIN of the payer only if different from            Line 25. Tax due. Is line 22 more than line 23 plus line 
the corporation filing this return.                                 24? If so, line 22 minus lines 23 and 24.
Note: Consolidated return filers. If estimated payments             Line 26. Overpayment. Is line 22 less than line 23 plus 
were made under a different name, fill in the paying cor-           line 24? If so, line 23 plus line 24, minus line 22.
poration’s name and FEIN on Schedule ES for the correct 
application of estimated payments.                                  Line 27. Penalty due with this return. To avoid penalty 
                                                                    and interest, you must make any tax payment owed by 
Note: Missing  or incomplete information on  payment                the original due date of the tax return, excluding exten-
made by an affiliate could result in a billing.                     sions. You must also e-file or mail your tax return by the 
• Include any refunds applied from other years on line 5.           original due date, or by the extended due date if you file 
• Enter  payments  made  with  your  extension  or  other           with a valid extension included. 
prepayments on line 6.                                              Enter the following penalties on your return if applicable. 
• Fill in on line 7 the refundable credits from Schedule 
OR-ASC-CORP, Section E.                                             • 5 percent failure-to-pay penalty. Include a penalty 
• Carry the total from line 8 to Form OR-20, line 23.               payment of 5 percent of your unpaid tax if you don’t 
                                                                    pay by the original due date, even if you have an exten-
Line 24. Withholding payments made on your behalf from 
                                                                    sion of time to file. 
pass-through entity or real estate income. If taxes were paid 
on the corporation’s behalf, enter the amount on this line.           Exception: You won’t be charged the 5 percent failure-to-
                                                                    pay penalty if you meet all of the following requirements:
There’s a requirement to withhold tax from the proceeds 
of sales of Oregon real property by nonresidents. This                ° You have a valid federal or Oregon extension, and 
applies to individual nonresidents as well as C corpora-              ° You pay at least 90 percent of your tax after credits 
tions that aren’t doing business in Oregon. The amount                  by the original due date of the return, and
to be withheld is the lesser of:                                      ° You file your return within the extension period, and
• 4 percent of the consideration (sales price);                       ° You pay the balance of tax due when you file your 
• 4 percent of the net proceeds (amount dispersed to the                return, and
seller); or                                                           ° You pay the interest on the balance of tax due when 
• 8 percent of the gain that’s includible in Oregon tax-                you file your return or within 30 days of the date of 
able income for the year.                                               the bill you receive from us.
Withholding isn’t required if one of the following require-           If  you filed with  a valid extension  but  didn’t  pay 
ments is met:                                                       90 percent of your tax by the original due date, you’ll 
                                                                    be charged the 5 percent failure-to-pay penalty.
• The consideration for the real property doesn’t exceed 
$100,000;                                                           • 20 percent failure-to-file penalty. Include a penalty pay-
• The property is acquired through foreclosure;                     ment of 20 percent of your unpaid tax if you don’t file 
• The transferor (owner) is a resident of Oregon or, if a C cor-    your return within three months after the original filing 
poration, has a permanent place of business in this state; or       due date (including extensions). The failure-to-file pen-
• The transferor meets one of the requirements in ORS               alty is in addition to the 5 percent failure-to-pay penalty.
314.258(3)(d) through (f).
                                                                    • 100 percent late pay and late filing penalty. Include 
See instructions for Oregon Form OR-18-WC,        Report of         a penalty payment of 100 percent of your unpaid tax 
Tax Payment or Written Affirmation for Oregon Real Prop-            if you don’t file returns for three consecutive years by 
erty Conveyance, for more information (ORS 314.258 and              the original filing due date (including extensions) of 
supporting administrative rules).                                   the third year. A 100 percent penalty is assessed on 
Pass-through entity withholding requirement. A pass-                each year’s tax balance.
through entity (partnership, S corporation, LLP, LLC, or            Line 28.  Interest  due with  this  return. You must pay 
certain trusts) with distributive income from Oregon                interest on unpaid taxes if:
sources must withhold tax from its nonresident owners.
                                                                    • You don’t pay the tax balance by the original filing due 
The requirement is waived if the nonresident owner                  date, excluding extensions;
makes an election to join in the filing of a composite              • You file an amended return and have tax to pay; or
return, sends us a signed Form OR-19-AF, Oregon Affidavit 
                                                                    • Your taxable income is changed because of a federal or 
for a Nonresident Owner of a Pass-through Entity, or meets 
                                                                    state audit and you owe more tax.
another exception listed in ORS 314.775 and supporting 
administrative rules. For more information, see instruc-            Interest owed on tax starts the day after the due date of 
tions for Oregon Form OR-19, Annual Report of Nonresident           your original return, excluding extensions, and ends on 
Owner Tax Payments.                                                 the date of your payment. Interest is computed daily. 
150-102-020-1 (Rev. 10-28-22)                                    17                                       2022 Form OR-20 Instructions

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To calculate interest: “high-income taxpayer” is one that had federal taxable
income before net operating loss and capital loss carry-
Tax × daily interest rate × number of days.
overs and carrybacks of $1 million or more in any one of
Interest rates and effective dates: the last three years, not including the current year.
For periods Line 30. Total penalty and interest (add lines 27 through 29).
beginning Annually Daily
January 1, 2023 6% 0.0164% Total due or refund
January 1, 2022 4% 0.0110% Line 31. Total due (line 25 plus line 30). See “Filing
January 1, 2021 4% 0.0110% checklist” for payment options. Don’t include a Form
Interest accrues on any unpaid tax during an extension OR-20-V, payment voucher, with your payment if you’re
of time to file. including a payment with your return.
Interest will increase by one-third of 1 percent per month Note: Any payments received after the original due date
(4 percent yearly) on delinquencies if: will be applied first to penalty, then to interest, and then
to tax [ORS 305.265(13)].
• You file a return showing tax due, or we assessed an
existing deficiency; and Special instructions. If you owe penalty or interest and
• The assessment isn’t paid within 60 days after the have an overpayment on line 26, and your overpayment
notice of assessment is issued; and is less than total penalty and interest, then fill in the
• You haven’t filed a timely appeal with us. result of line 30 minus line 26, on line 31.
Line 29. Interest on underpayment of estimated tax Line 32. Refund available (line 26 minus line 30).
(UND). You must make quarterly estimated tax payments Line 33. Amount of refund to be credited to estimated
if you expect to owe $500 or more in tax. This includes tax. You may elect to apply part or all of your refund
Oregon minimum tax. Oregon charges UND if: to your next year’s estimated tax payments. Fill in the
• The quarterly payment is less than the amount due for amount you want to apply. Your election is irrevocable.
that quarter; or Elected amounts that are attributable to estimated tax pay-
• We receive the quarterly payment after that quarter’s ments received prior to the following year’s first quarter
due date; or estimated tax due date, will be applied as a timely first
• No quarterly payments are made during the year and quarter installment of the following year. Elected amounts
the final tax debt is $500 or more. attributable to payments received after the following year’s
Use Form OR-37 to: first quarter estimated tax due date, will be applied to the
following year’s estimated tax account as of the date the pay-
• Calculate the amount of underpayment of estimated tax; ment is received. See ORS 314.515 and OAR 150-314-0302.
• Compute the interest you owe on the underpayment; or
• Show you meet an exception to the payment of interest. Line 34. Net refund (line 32 minus line 33).

If you have an underpayment of estimated tax, include
Form OR-37 with your tax return, check the box on page 1 of Do you have questions or need help?
Form OR-20, and file them before the due date of the return.
www.oregon.gov/dor
If your current year corporation tax liability, including the 503-378-4988 or 800-356-4222
minimum tax, is less than $500, you don’t need to make questions.dor@ dor.oregon.gov
estimated payments. Don’t complete this form. However,
this provision doesn’t apply to a high-income taxpayer. A Contact us for ADA accommodations or assistance in
other languages.

150-102-020-1 (Rev. 10-28-22) 18 2022 Form OR-20 Instructions

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Appendix A

Corporation Form OR-20
2022 Schedule OR-ASC-CORP codes

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

Subtractions
Description Code Description Code
Bad debt reserve Oregon exceeding federal ................. 359 Income on a composite return ........................................ 341
Charitable contribution ................................................... 351 Inventory costs ................................................................. 357
CPAR subtraction ............................................................. 384 IRC Section 245A foreign-source portion dividends... 383
Deferred gain from out-of-state disposition of Land donation or bargain sale of land to
property ......................................................................... 352 educational institutions ............................................... 350
Depletion (Oregon in excess of federal allowance) ..... 362 Losses from outside U.S. ................................................. 358
Depreciation differences.................................................. 353 Manufactured dwelling park tenant payments ........... 344
Dividend deduction ......................................................... 370 Marijuana business expenses ......................................... 375
Energy conservation payments ...................................... 368 Oregon Investment Advantage ...................................... 342
Federal credits .................................................................. 354 Patronage dividends (cooperatives only) ..................... 379
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 Taxes paid to a foreign country ...................................... 378
Global intangible low-taxed income (GILTI) ............... 381 Uncategorized subtraction (must include
IC-DISC commission payments explanation) ................................................................... 399
(DISC formed before 01/02/2014) ............................. 366 Work opportunity credit wages not deducted on the
Income of nonunitary corporations .............................. 371 federal return ................................................................ 372
Income of unitary insurance affiliates .......................... 376

Standard credits
Description Code
Oregon Cultural Trust contribution (ORS 315.675) ..... 807
Reservation enterprise zone (ORS 285C.309) ............... 810
Uncategorized credit (must include explanation) ....... 899
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Carryforward credits
Description                                       Code                                      Description                                        Code
Agricultural workforce housing (ORS 315.164 and                                             Opportunity Grant Fund (auction) (ORS 315.643) ...... 871
315.169) ........................................................................... 835    Oregon affordable housing lender’s credit (ORS 
Alternative qualified research activities                                                   317.097) ........................................................................... 854
(carryforward only) (ORS 317.154) ............................ 837                          Oregon Low-Income Community Jobs Initiative 
Bovine manure (carryforward only)(ORS 315.176                                               (carryforward only) (ORS 315.533) ............................ 855
and 315.179) ................................................................... 869        Oregon production investment fund (auction)  
Business energy (carryforward only) (ORS 315.354) ..... 839                                 (ORS 315.514) ................................................................ 856
Child Care Fund contributions (carryforward only)                                           Qualified research activities (carryforward only)  
(ORS 315.213) ................................................................ 841          (ORS 317.152) ................................................................ 858
Crop donation (ORS 315.156) ......................................... 843                   Renewable energy resource equipment  
Electronic commerce zone investment (carryforward                                           manufacturing facility (carryforward only)  
only) (ORS 315.507) ...................................................... 845              (ORS 315.341) ................................................................ 860
Employer-provided dependent care assistance                                                 Repatriation credit (due to IRC §965) (carryforward  
(carryforward only) (ORS 315.204) ............................ 846                          only) (must include copy of 2017 form) .................... 870 
Employer scholarship (ORS 315.237) ............................ 847                         Rural technology workforce development  
Energy conservation projects (carryforward only)                                            (ORS 315.523) ................................................................ 868
(ORS 315.331) ................................................................ 849          Short line railroad rehabilitation (ORS 315.593) .......... 872 
Fish screening devices (ORS 315.138)............................ 850                        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

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

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                                               Appendix B

                               Oregon Corporation Form OR-20
                               2022 Tax rates and minimum tax table

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

Calculated tax (ORS 317.061)

If Oregon taxable income is:
•  $1 million or less, multiply Oregon taxable income by 6.6 percent (not below zero).
•  More than $1 million, multiply the amount that’s more than $1 million by 7.6 percent, and add $66,000.

Minimum tax (ORS 317.090)

                               Minimum tax table —C corporations only

                               Oregon sales of filing group     Minimum tax

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

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                                          Appendix C

                               Oregon Corporation Form OR-20
                                  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 
                                                             request until you file your original or amended return 
If your alternative apportionment petition is approved, 
                                                             using standard apportionment provisions.
you may amend your returns within the normal statute 
                                                             • Your original or amended return, for which the writ-
of limitations. The approval of your petition will remain 
                                                             ten petition requests alternative apportionment, must 
in effect unless and until we revoke it during audit or      use standard apportionment provisions.
you file a new petition and receive our approval of the      • Mail  your  petition  to:  Oregon  Department  of  Reve-
new proposal.                                                nue, Corporation Section, 955 Center St NE, Salem OR 
Allow at least 6 months for us to make a determination.      97301-2555.
Also, note that all petitions for alternative apportion-
ment may result in additional review and documenta-          Both methods of petition
tion requests.                                               • The petition must be signed by the taxpayer or the tax-
                                                             payer’s representative.
Instructions                                                 • You must use standard apportionment provisions to 
                                                             complete your original or amended return while the 
• Your written petition for alternative apportionment        department rules, in writing, on your request for alter-
  can be submitted with your original or amended             native apportionment.
  return (Method 1) or separate from your original or        • In the case of a UDITPA taxpayer, the petition must 
  amended return (Method 2).                                 fully explain the  extent of the taxpayer’s business 
• For administrative purposes, we prefer Method 2.           activity in Oregon and why standard apportionment 
                                                             doesn’t fairly and equitably represent the taxpayer’s 
Method 1 —Alternative apportionment petition                 business activity in Oregon. An ORS 314.280 taxpayer 
submitted with your original or amended return               must fully explain why standard apportionment 
• Check the alternative apportionment checkbox on            doesn’t fairly and equitably represent the amount of 
  the front of the return and include a written peti-        net income the taxpayer earns inside and outside Ore-
  tion for alternative apportionment with your original      gon. An  insurer  must explain  why standard  appor-
  or amended return. Failure to do so could result in        tionment  doesn’t  fairly  and  equitably  represent  the 
  your request being overlooked. This box is to denote       insurer’s business activity within Oregon.
  requests only and isn’t to be used after a request is      • Your petition must fully explain your proposed 
  approved.                                                  method of alternative apportionment and explain why 
• You must include a written petition for alternative        this proposed method is more accurate in reflecting 
  apportionment with your original or amended return         business activity or net income, as appropriate, in Ore-
  if you check the alternative apportionment checkbox.       gon than the standard formula. 
• Do not complete the original or amended return using an    • The petition must show how the Oregon return (Form 
  alternative method of apportionment unless/until that      OR-20, OR-20-INC, OR-20-INS, or OR-20-S) would be 
  alternative method of apportionment has been approved.     completed, including the net tax calculation, using the 
• Include your petition with your return.                    proposed method of alternative apportionment.
150-102-020-1 (Rev. 10-28-22)                             22                                    2022 Form OR-20 Instructions

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