150-102-020-1 (Rev. 10-15-21) 1 2021 Form OR-20 Instructions
Form OR-20 Instructions
Oregon Corporation Excise Tax
Table of contents
Purpose of Form OR-20........................................ 2
Important reminders ............................................ 2
What’s new .................................................................... 2
Looking ahead............................................................ 3
Estimated tax payments ..................................... 3
Filing information
Who must file with Oregon? .............................................. 4
Filing requirements: consolidated returns, unitary
business, insurance affiliates, separate returns .......... 5
E-file ....................................................................................... 5
Federal audit changes, Amended returns ........................ 6
Protective claims .................................................................. 6
Special filing requirements
Agricultural or horticultural cooperatives ....................... 6
Broadcasters .......................................................................... 6
Exempt organizations .......................................................... 7
Homeowners associations .................................................. 7
Insurers .................................................................................. 7
Interest charge domestic international
sales corporations (IC-DISCs) ........................................ 7
Limited liability companies (LLCs) ................................... 8
Political organizations ......................................................... 8
Publicly traded partnerships .............................................. 8
Real Estate Investment Trusts (REITs) and Regulated
Investment Companies (RICs) ....................................... 8
Real Estate Mortgage Investment Conduits (REMICs) ... 9
Filing checklist
Due date of return, Extensions .......................................... 9
Payments ............................................................................... 9
Assembling your return ...................................................... 9
Mailing Addresses ................................................... 9
Form instructions
Heading and checkboxes .................................................... 9
Questions ............................................................................. 11
Line instructions
Additions ............................................................................. 11
Subtractions ........................................................................ 13
Tax ........................................................................................ 16
Credits .................................................................................. 16
LIFO benefit recapture ...................................................... 17
Net excise tax ...................................................................... 17
Payments, penalty, interest, and UND ............................ 17
Schedule ES—Estimated tax payments, other
prepayments, and refundable credits......................... 17
Total due or refund ............................................................ 19
Do you have questions? .................................... 19
Appendices
Appendix A, 2021 Schedule OR-ASC-CORP code list ... 20
Appendix B, 2021 Tax rates and minimum tax table .... 22
Appendix C, Alternative apportionment ....................... 23
Information contained herein is a guide. For complete details of law, refer to
Oregon Revised Statutes (ORS) and Oregon Administrative Rules (OAR).
Go electronic!
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File corporate tax returns through the Federal/State Electronic Filing Program. If you’re mandated to e-file your fed-
eral return, you’re required to e-file your Oregon return.
With approved third-party software, you can e-file your return with all schedules, attachments, and required federal
return. You can also conveniently include an electronic payment with your e-filed original return. See“E-file.”
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• Announcements and FAQ.
2021
150-102-020-1 (Rev. 10-15-21) 2 2021 Form OR-20 Instructions
Purpose of Form OR-20
Use Form OR-20, Oregon Corporation Excise Tax Return,
to calculate and report the Oregon corporate excise tax
liability of a business entity taxable as a C corporation
doing business in Oregon.
Important reminders
If your registered corporation or insurance company
isn’t doing business in Oregon and has no Oregon-
source income, then you don’t need to file a corporation
tax return.
Revenue Online. Revenue Online provides convenient,
secure access to tools for managing your Oregon tax
account. With Revenue Online, you may:
• View your tax account.
• Make payments.
• View correspondence we sent you.
• Check the status of your refund.
For more information and instructions on setting up your
Revenue Online account, visit www.oregon.gov/dor.
What’s new
Note: Not all information in this section pertains to all
taxpayers or form types. If applicable, refer to House Bills
(HB) or Senate Bills (SB) as shown.
Visit www.oregon.gov/dor for possible updates to these
instructions.
General
Tie to federal tax law
In general, Oregon is tied to the federal definition of tax-
able income as of April 1, 2021; however, Oregon is still
disconnected from:
• Federal subsidies for prescription drug plans (IRC
§139A; ORS 317.401).
• Deferral of certain deductions for tax years beginning
on or after January 1, 2009 and before January 1, 2011
may require subsequent Oregon modifications (IRC
§168(k) and §179; ORS 317.301).
Broadcasters
SB 136 (2021) defines broadcasting sales and repeals
the interstate broadcaster provisions applicable before
January 1, 2020.
For tax years beginning on or after January 1, 2020, tax-
payers with broadcasting sales must use an audience/
subscriber factor, as demonstrated through the use of
third-party ratings information or the taxpayer’s books,
papers, records, or memoranda, to source their broad-
casting sales to Oregon. Taxpayers with broadcasting
sales may elect to apply their audience/subscriber factor
to all their gross receipts except sales of real property
and tangible personal property. In certain circumstances,
taxpayers may source receipts from advertising on or
licensing to subscription services using a statutorily pre-
scribed 0.6 percent apportionment factor. See SB 136 for
more information.
Facsimile signatures
OAR 150-305-0460 has been amended to allow taxpay-
ers, tax preparers, and authorized representatives of the
taxpayer or declarant to sign paper returns, statements,
other documents, or reports using a facsimile signature.
A facsimile signature is a signature visibly affixed to a
paper return using electronic or mechanical equipment
or an electronic or mechanical device. This amendment
applies to all open tax years.
Reduced tax rate for qualifying non-passive
and business income
For tax years beginning on or after January 1, 2021, SB
139 (2021) modifies Oregon’s reduced ORS chapter 316
tax rate for non-passive income of partners and S corpo-
ration shareholders and business income of sole propri-
etors. Note that SB 139 modifies the conditions that need
to be met to claim the benefit of Oregon’s reduced tax
rate for non-passive and business income. SB 139 doesn’t
apply to C corporations who file under ORS chapter 317
or 318.
Unitary percentage
OAR 150-317-0510(10) has been amended to clarify that
common ownership of greater than 50 percent of the vot-
ing stock of a corporation is required to include a cor-
poration in a unitary business. This amendment doesn’t
affect who’s included in the affiliated group of corpora-
tions filing a consolidated federal return and is appli-
cable to all open tax years.
Credits
Opportunity Grant Contributions Credit (ORS 315.643)
For tax years beginning on or after January 1, 2021, and
before January 1, 2024, this credit can apply toward the
current tax year or the previous tax year for contribu-
tions made before April 15 if a return has not yet been
filed. This change is effective for tax years 2021 through
2023, for donations made prior to April 15, 2024. See HB
2456 (2021).
150-102-020-1 (Rev. 10-15-21) 3 2021 Form OR-20 Instructions
Oregon Production Investment Fund Contributions
Credit (ORS 315.514)
For tax years beginning on or after January 1, 2021, and
before January 1, 2024, this credit can apply toward the
current tax year or the previous tax year for contribu-
tions made before April 15 if a return has not yet been
filed. This change is effective for tax years 2021 through
2023, for donations made prior to April 15, 2024. See HB
2456 (2021).
Extended credits
• Individual Development Account (IDA) donation
credit (ORS 315.271) is extended to tax years beginning
before January 1, 2028.
• Oregon Life and Health Insurance Guaranty Asso-
ciation (OLHIGA) offset (ORS 734.835) is allowed for
tax years beginning before January 1, 2028. (Form OR-
20-INS only)
• Oregon production investment fund (auction) credit
(ORS 315.514) is allowed for tax years beginning before
January 1, 2030.
• University Venture Fund Contributions credit (ORS
315.521) is allowed for tax years beginning before Jan-
uary 1, 2028.
Sunset credits
Beginning January 1, 2022, the following tax credits are
no longer available, except for applicable carryforward
purposes:
• Child Care Fund contributions (ORS 315.213).
• Bovine manure (ORS 315.176).
Looking ahead
General
Business Alternative Income Tax
SB 727 (2021) doesn’t allow an LLC, partnership, or S cor-
poration to pay taxes imposed under ORS chapter 317 or
318 on behalf of a C corporation partner or shareholder.
For tax years beginning on or after January 1, 2022, and
before January 1, 2024, SB 727 allows electing LLCs, part-
nerships and S corporations to pay taxes imposed under
ORS chapter 316 related to a partner’s or shareholder’s
distributive share on behalf of their partners and share-
holders. The partner or shareholder is then allowed a tax
credit on their Oregon personal income tax return equal
to the tax paid on their behalf by the LLC, partnership, or
S corporation. SB 727 will automatically sunset if the fed-
eral government repeals the state and local tax deduc-
tion limitation for personal income taxpayers.
Credits
Individual Development Account (IDA) donations
(ORS 315.271)
For tax years beginning on or after January 1, 2022 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 for which
the credit is claimed. This change is effective for tax years
2022 through 2027, for donations made prior to April 15,
2028. See HB 2433 (2021).
Oregon affordable housing lender’s credit (ORS 317.097)
Oregon statute was amended to allow a financial insti-
tution to claim the tax credit by purchasing bonds if the
bond proceeds are used to finance the purchase of afford-
able housing. These amendments apply between January
1, 2022 and January 1, 2026. See HB 2433 (2021).
Estimated tax payments
Requirements
Oregon estimated tax payment requirements aren’t the
same as federal estimated tax payment requirements.
You must make estimated tax payments if you expect to
owe tax of $500 or more. This includes Oregon’s mini-
mum tax. See ORS 314.505 to 314.525 and supporting
administrative rules.
If you don’t make estimated payments as required, you
may be subject to interest on underpayment of estimated
tax (UND). Refer to Form OR-37 if you have an under-
payment of estimated tax.
Payment due dates
Estimated tax payments are due quarterly, as follows:
• Calendar year filers: April 15, June 15, September 15,
and December 15.
• Fiscal year filers: The 15th day of the 4th, 6th, 9th, and
12th months of your fiscal year.
• If the due date falls on a Saturday, Sunday, or legal
holiday, use the next regular business day.
Payment options
Important: For details about making payments with
your return, see “Filing checklist.”
Estimated payments may be made by electronic funds
transfer (EFT), online, or by mail.
EFT. You must make your Oregon estimated payments
by EFT if you’re required to make your federal estimated
payments by EFT. We may grant a waiver from EFT pay-
ments if you’d be disadvantaged by the requirement
(ORS 314.518 and supporting administrative rules).
150-102-020-1 (Rev. 10-15-21) 4 2021 Form OR-20 Instructions
If you don’t meet the federal requirements for manda-
tory EFT payments, you may still make voluntary EFT
payments.
For more information, visit www.oregon.gov/dor/business.
You can make EFT payments through Revenue Online or
through your financial institution. To learn more about
Revenue Online or to make an EFT payment, visit www.
oregon.gov/dor. If you pay by EFT, don’t send Form
OR-20 -V, Oregon Corporation Tax Payment Voucher.
Mail. If paying by mail, send each payment with a
FormOR-20-V, payment voucher, to: Oregon Department
of Revenue, PO Box 14950, Salem OR 97309-0950.
Include on your check:
• Federal employer identification number (FEIN).
• Tax year beginning and ending dates.
• Contact phone.
Estimated tax payments’ worksheet
(Keep for your records—don’t file with your payment.)
1. Oregon net income expected in
upcoming tax year.
1.
2. Tax on Oregon net income (see
Appendix B).
2.
3. Subtract tax credits allowable
in upcoming tax year. Tax
credits can’t be used to reduce
minimum tax.
3.
4. Net tax (line 2 minus line 3). 4.
If the amount on line 4 is less
than $500, stop. You don’t have
to make estimated tax payments.
Caution: If your final tax
liability when you file your
return is $500 or more, you may
be subject to UND.
5. Amount of each payment.
(Divide line 4 by the number of
payments you need to make.
This is usually 4.)
5.
If your expected net tax changes during the year, refig-
ure your estimated tax payments using the Estimated tax
payments’ worksheet.
To avoid additional charges for UND, you must pay the
amount of any prior underpayment plus the amount of
the current required payment.
Example: During the year, Corporation A’s expected net
tax increased from $2,000 to $6,000. Corporation A made
timely first and second quarter estimated payments of
$500 before its expected net tax increased.
Corporation A should make four payments of $1,500 each
during the year. Because of its increased net tax, Corpo-
ration A will be subject to UND charges for the first and
second quarters. To avoid UND charges for the third and
fourth quarters, Corporation A must make timely pay-
ments of $3,500* for the third quarter and $1,500 for the
fourth quarter.
*$1,000 for the first-quarter underpayment, plus $1,000
for the second-quarter underpayment, plus $1,500 for the
required third-quarter installment equals $3,500.
Filing information
Who must file with Oregon?
Corporations that are doing business in Oregon, or with
income from an Oregon source, are required to file an
Oregon corporation tax return. If you have tangible
or intangible property or other assets in Oregon, any
income you receive from that property or assets is Ore-
gon source income. Public Law (Pub.L.) 86-272 provides
exceptions to the Oregon filing requirement for certain
corporations doing business in Oregon.
Exemption for emergency service providers. An out-
of-state emergency service provider is exempt from tax
when operating solely for the purposes of performing
disaster or emergency-related work on critical infrastruc-
ture. Disaster or emergency-related work conducted by
an out-of-state business may not be used as the sole basis
for determining that a corporation is doing business in
Oregon.
Note: Oregon follows the federal entity classification
regulations. If an entity is classified or taxed as a corpo-
ration for federal income tax purposes, it will be treated
as a corporation for Oregon tax purposes.
Excise or income tax?
Oregon has two types of corporate taxes: excise and
income. Excise tax is the most common. Most corpora-
tions don’t qualify for Oregon’s income tax.
Excise tax is a tax for the privilege of doing business
in Oregon. It’s measured by net income. Excise tax fil-
ers are subject to corporate minimum tax. Corporation
excise tax laws are in Chapter 317 of the Oregon Revised
Statutes.
Note: All interest on obligations of the 50 states and their
subdivisions are subject to Oregon excise tax. Interest on
obligations of the United States and its instrumentalities
are also subject to tax if the interest is taxable under the
Internal Revenue Code and Congress has not chosen to
prevent the states from taxing the interest in question. A
taxpayer has the burden of showing that Oregon can’t
tax the interest on a federal obligation.
150-102-020-1 (Rev. 10-15-21) 5 2021 Form OR-20 Instructions
Income tax is for corporations not doing business in
Oregon, but with income from an Oregon source. Income
tax filers aren’t subject to corporate excise or minimum
tax. Corporation income tax laws are in Chapter 318 of
the Oregon Revised Statutes.
What form do I use?
Except as provided by Pub.L. 86-272, all corporations
doing business in Oregon must file Form OR-20, and
are subject to the minimum excise tax. Any corporation
doing business in Oregon is also required to register
with the Secretary of State, Corporation Division. See
www. sos.oregon.gov.
“Doing business” means carrying on or being engaged
in any profit-seeking activity in Oregon. A taxpayer
having one or more of the following in this state is clearly
doing business in Oregon:
• A stock of goods.
• An office.
• A place of business (other than an office) where affairs
of the corporation are regularly conducted.
• Employees or representatives with activities which go
beyond the solicitation of orders for sales of tangible per-
sonal property.
• An economic presence through which the taxpayer
regularly takes advantage of Oregon’s economy to pro-
duce income.
Corporations not doing business in Oregon, but with
income from an Oregon source, must file Form OR-20-INC.
Most corporations don’t fall within Oregon’s income tax
provisions.
Corporations not doing business in Oregon, and with
no Oregon source income, even if incorporated in or
registered to do business in the state, aren’t subject to the
excise, income, or minimum tax, and aren’t required to
file a corporation tax return.
Important: Don’t file a Form OR-20 unless you’re required
to do so. Filing an unnecessary return may result in a bill-
ing for minimum tax.
Filing requirements
Consolidated federal returns (ORS 317.705–317.725). If a
corporation is a member of an affiliated group of corpo-
rations that filed a consolidated federal return, it must
file an Oregon return based on that federal return. An
Oregon return, based on the federal consolidated return,
is required when two or more affiliated corporations are:
• Included in a consolidated federal return;
• Unitary; and
• At least one of the affiliated corporations doing busi-
ness in Oregon or have Oregon-source income.
Note: S corporations can’t be included in consolidated
federal returns. IRC §1361(b) provides that a corporation
that’s a Qualified Subchapter S Subsidiary (QSSS) isn’t
treated as a separate corporation. All income, deduc-
tions, and credits of the QSSS will be treated as belong-
ing to the parent S corporation.
Unitary business. A business that has, directly or indi-
rectly between members or parts of the enterprise, either
a sharing or an exchange of value shown by:
• Centralized management or a common executive force;
• Centralized administrative services or functions result-
ing in economies of scale; or
• Flow of goods, capital resources, or services showing
functional integration.
Unitary insurance affiliates. If a unitary insurance
affiliate has a separate return filing requirement, it’s
excluded from the Oregon return of the consolidated
group. The insurance affiliate is treated as if it’s a non-
unitary affiliate of the consolidated group by subtract-
ing income or adding losses to federal taxable income.
The other members of the insurer’s federal consolidated
group receive a 100 percent dividend-received deduction
for any dividend received from the insurer. See “Addi-
tions” and “Subtractions” below.
Separate federal returns. Any corporation that files
a separate federal return must file a separate Oregon
return if it’s doing business in Oregon or has income
from an Oregon source. However, see special filing
requirements for REITs.
A corporation subject to Oregon taxation must also file
a separate Oregon return if it was included in a consoli-
dated federal return, but wasn’t unitary with any of the
other affiliates. To determine Oregon taxable income,
begin with taxable income from the consolidated fed-
eral return and use Oregon additions or subtractions to
remove the nonunitary affiliates.
E-file
If you’re required to e-file with the IRS, you’re also
required to e-file for Oregon. We accept calendar year,
fiscal year, short year, and amended electronic corpora-
tion tax returns utilizing the IRS Modernized e-file plat-
form (MeF). Beginning January 2022, we’ll accept e-filed
returns for tax year 2021, and will continue accepting
returns for 2020 and 2019.
Your tax return software also allows you to make elec-
tronic payments when e-filing your original return.
Note: Your paper return may be rejected if you’re
required to electronically file your Oregon corporation
tax return, unless a waiver request has been approved by
us prior to the filing of the paper return.
If you’d like to request a waiver, send an email with
the FEIN, tax year, and reason you’re unable to e-file to
bus.electronicfiling @ dor.oregon.gov, prior to paper-fil-
ing your return.
150-102-020-1 (Rev. 10-15-21) 6 2021 Form OR-20 Instructions
For a list of software vendors or for more information,
search “e-filing” at www.oregon.gov/dor.
Federal or other state audit changes
If the IRS or other taxing authority changes or corrects
your federal or other state return for any tax year, you
must notify us. File an amended Oregon return and
include a copy of the federal or other state audit report.
Mail this separately from your current year’s return.
If you don’t amend or send a copy of the federal or other
state report, we have two years from the date we’re noti-
fied of the change to issue a deficiency notice. To receive
a refund you must file a claim for refund of tax within
two years of the date of the federal or other state report.
Amended returns
Oregon doesn’t have an amended return form for corpo-
rations. Use the form for the tax year you’re amending
and check the amended box. Always use your current
address. If your address has changed, don’t use your old
address or our system will revert your current address
to the old address.
Fill in all amounts on your amended return, even if
they’re the same as originally filed. If you’re amend-
ing to change additions, subtractions, or credits, include
detail of all items and amounts, including carryovers.
If you change taxable income by filing an original or
amended federal or other state return, you must file an
amended Oregon return within 90 days of when the
original or amended federal or other state return is filed
(ORS 314.380). Include a copy of your original or amended
federal or other state return with your amended Oregon
return and explain the changes.
If you filed Form OR-20-S, and later determined you
should file Form OR-20, amend your return using Form
OR-20 and check the amended box.
You may make payments online for your amended
return at www.oregon.gov/dor.
Don’t make payments for amended returns with EFT.
This also applies to e-filed amended returns. For paper
returns, you may pay online or include a check or money
order with your return. For e-filed returns, you may pay
online or send a check or money order separately. If you
mail your payment separate from your return, write
“Amended” on the payment and include a completed
Form OR-20-V with the amended box checked.
Don’t amend your Oregon return if you amend the fed-
eral return to carry a net operating loss back to prior
years. Oregon allows corporations to carry net operat-
ing losses forward only.
On the estimated tax payments line of your amended
Form OR-20, enter the net excise tax per the original
return or as previously adjusted. Don’t include any pen-
alty or interest portions of payments already made.
If paying additional tax with your amended return, you
must include interest with your payment. Interest is fig-
ured from the day after the due date of your original
return up to the day we receive your full payment. See
“Interest rates.”
Pay all tax and interest due with your amended return
or within 30 days of receiving a billing notice from us to
avoid being charged a 5 percent late payment penalty.
Protective claims
Don’t file an amended return as a protective claim.
Use Oregon Form OR-PCR, Protective Claim for Refund,
150-101-184, when your claim to a refund is contingent
on a pending court decision or legislative action. Notify
us within 90 days of the final determination by filing an
amended return. Don’t file an amended return before
the pending action is final.
Special filing requirements
Agricultural or horticultural cooperatives
For purposes of the corporate minimum tax only, the
Oregon sales of agricultural or horticultural coopera-
tives doesn’t include sales representing business done
with or for the cooperative’s members. If you’re an agri-
cultural or horticultural cooperative, check the box in the
header for Ag co-op.
Your Schedule OR-AP, part 1, must show all sales
in Oregon and elsewhere to correctly compute your
apportionment percentage. However, for minimum tax
purposes, show the amount of sales not done with or
for members of the co-op in the header of the Sched-
ule OR-AP, under the heading “Describe the nature and
provide the location(s) of your Oregon business activi-
ties.” Include the description “Sales not done with or for
members of the co-op.”
Note: Generally, co-ops filing federal Form 1120-C
begin the Oregon return with line 25a from the federal
return (not line 28). You are also allowed a subtraction
for patronage dividends, which is taken on Schedule
OR-ASC-CORP, code number 379 (ORS 317.010).
Broadcasters
SB 136 (2021) defines broadcasting sales and repeals the
interstate broadcaster provisions applicable before Janu-
ary 1, 2020.
For tax years beginning on or after January 1, 2020,
taxpayers with broadcasting sales must use an audi-
ence/subscriber factor, as demonstrated through the
use of third-party ratings information or the taxpayer’s
books, papers, records, or memoranda, to source their
150-102-020-1 (Rev. 10-15-21) 7 2021 Form OR-20 Instructions
broadcasting sales to Oregon. Taxpayers with broadcast-
ing sales may elect to apply their audience/subscriber
factor to all their gross receipts except sales of real prop-
erty and tangible personal property. In certain circum-
stances, taxpayers may source receipts from advertising
on or licensing to subscription services using a statuto-
rily prescribed 0.6% apportionment factor. See SB 136 for
more information.
If your corporation, or one or more of the affiliates filing
as part of your consoli dated return, is engaged in broad-
casting, check the box for Question M on your Form
OR-20.
Exempt organizations
If you’re an exempt organization under IRC §§501(c)
through (f), 501(j), 501(n), 521, or 529, you’re exempt from
Oregon corporation taxes [ORS 317.080 (1)–(8)]. Apply to
the IRS for exempt status, don’t apply to us. Two excep-
tions are nonprofit homes for the elderly and people’s
utility districts established under ORS Chapter 261.
If you’re exempt from Oregon tax and don’t have unre-
lated business taxable income (UBTI) as defined in IRC
§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.
If you have UBTI, file Form OR-20 and include a copy
of your federal Form 990-T. Organizations exempt from
federal tax, but not exempt from Oregon tax, must also
file FormOR-20 and include a copy of federal Form 990-T.
An exempt organization filing Oregon Form OR-20 is
subject to the greater of calculated excise tax based on
UBTI apportioned or allocated to Oregon or Oregon
minimum tax. For minimum tax purposes, include in
“Oregon sales” only gross unrelated business income
apportioned or allocated to Oregon. Tax-exempt gross
income isn’t included.
Note: Some religious organizations that qualify under
IRC § 501(d) may file as partnerships.
Homeowners associations
A homeowners association organized and operated
under IRC §528(c) may elect to be treated as a tax-exempt
organization (ORS 317.080). The association must make
the election no later than the time prescribed by law for
filing the return. A copy of the federal Form 1120-H filed
with the IRS will constitute this election when filed with
us. Tax-exempt status will only exempt the association
from tax on the exempt function income, such as mem-
bership dues, fees, and assessments from member-own-
ers of residential units in the particular condominium or
subdivision involved. Oregon follows the federal defini-
tion of nonexempt function income.
Don’t file Form OR-20 if you don’t have nonexempt
function income for Oregon tax purposes. Only file a
copy of your federal Form 1120-H with us.
File an Oregon Form OR-20, with a copy of federal Form
1120-H, if the association has taxable income. Homeown-
ers association taxable income for Oregon is generally
the same as for federal purposes. It’s gross nonexempt
income less directly-related deductions, less the specific
$100 deduction. However, net capital gains are included
in the computation and receive no special treatment.
An association filing Oregon Form OR-20 is subject to
the greater of calculated excise tax or Oregon minimum
tax. For minimum tax purposes, include in “Oregon
sales” only Oregon nonexempt function income.
Insurers
Insurers that have a separate return filing require-
ment under ORS 317.710(5) and (7) can’t be included in
an Oregon consolidated return. Instead, they generally
determine Oregon corporate excise tax on a separate
basis. The remaining affiliates in the Oregon consoli-
dated return compute their modified federal consoli-
dated taxable income after exclusion of the insurer with
the separate return filing requirement. Also, the Oregon
consolidated return receives a 100 percent dividends-
received deduction if a dividend is paid by an insurer
that have a separate return filing requirement. See Form
OR-20-INS and instructions for more information about
insurance company filing requirements.
Interest charge domestic international sales
corporations (IC-DISCs) (ORS 317.283)
If your corporation is an IC-DISC, file Form OR-20 and
check the IC-DISC checkbox at the top of the form.
• An IC-DISC formed on or before January 1, 2014 is
exempt from minimum tax. Complete your Form
OR-20 using the instructions below.
• Commissions received by an IC-DISC formed on or
before January 1, 2014 are taxed at 2.5 percent.
• An IC-DISC formed after January 1, 2014 isn’t exempt
from minimum tax. However, it’s disregarded to the
extent it has transactions with related parties. If you
have transactions other than with related parties, com-
plete your Form OR-20 as a normal corporation filer,
and check the IC-DISC checkbox in the return header.
The Oregon IC-DISC return is due by the 15th day of the
month following the due date of the federal return. For
example, a calendar-year federal Form 1120-IC-DISC is
due nine months after the year-end (September 15). The
Oregon return for the IC-DISC is due October 15.
If the 15th falls on a Saturday, Sunday, or legal holiday,
the due date is the next business day. No extensions are
allowed for IC-DISC returns per federal and Oregon laws.
150-102-020-1 (Rev. 10-15-21) 8 2021 Form OR-20 Instructions
Form OR-20 line instructions for IC-DISCs
(formed on or before January 1, 2014)
Important: Check the IC-DISC box at the top of the form.
Line 1. Taxable income from the U.S. Corporation Income
Tax Return. Enter the “total commissions received”
reported for federal income tax purposes [federal
Form1120-IC-DISC, Schedule B, column c, lines 1c, 2k, and
3g]. Carry this amount to:
• Line 3—Income after additions;
• Line 5—Income before net loss deductions; and
• Line 9—Oregon taxable income.
Line 10. Calculated excise tax. Multiply the amount
from line 9 by 2.5 percent. Enter the result. Carry this
amount to:
• Line 14—Tax;
• Line 16—Tax before credits;
• Line 20—Excise tax after credits; and
• Line 22—Net excise tax.
Limited liability companies (LLCs)
Oregon follows federal law in determining how an LLC
is taxed. Federal law doesn’t recognize an LLC as a clas-
sification for federal tax purposes. An LLC business
entity must file a corporation, partnership, or sole pro-
prietorship tax return, depending on elections made by
the LLC and the number of members.
A multi-member LLC can be either a partnership or a
corporation, including an S corporation. A single mem-
ber LLC (SMLLC) can be either a corporation or a single
member “disregarded entity.” Refer to federal law for
more information and requirements.
An LLC taxed as a C corporation must file Form OR-20
if doing business in Oregon, or Form OR-20-INC if not
doing business in Oregon but receiving Oregon-source
income. The LLC must file Form OR-20-S if the entity
files federal Form 1120-S.
An LLC taxed as a partnership must file Form OR-65,
Oregon Partnership Return, if doing business in Oregon,
or if receiving Oregon-source income, or if it has any
Oregon resident members. If the LLC has a corporate
member, the member is taxed on its share of the LLC’s
Oregon income.
If an LLC is part of a corporation’s overall business oper-
ations and is treated as a partnership, include the corpo-
ration’s ownership share of LLC property, payroll, and
sales in the corporation’s apportionment percentage cal-
culation on Schedule OR-AP (ORS 314.650 and support-
ing administrative rules).
Foreign LLCs are identified as unincorporated associa-
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
under the laws of a federally recognized American
Indian tribe, no matter when organized.
Political organizations
Political organizations (for example, campaign commit-
tees and political parties) normally don’t pay state or fed-
eral taxes. However, income earned from investments is
taxable. Examples include interest earned on deposits;
dividends from contributed stock, rents, or royalties; and
gains from the sale of contributed property. We follow
the federal definitions of political organizations and tax-
able income.
A political organization that isn’t incorporated and hasn’t
elected to be taxed as a corporation should file a personal
income tax return under ORS 316.277(2).
For more information, including how to file your return,
go to www.oregon.gov/dor/business.
Publicly traded partnerships
A “publicly traded partnership” is a partnership treated
as a corporation for federal tax purposes under IRC §7704.
The partners in a publicly traded partnership aren’t
subject to tax on their distributive shares of partnership
income. A publicly traded partnership taxed as a corpo-
ration must file Form OR-20 if doing business in Oregon,
or Form OR-20-INC if not doing business in Oregon but
is receiving Oregon-source income.
Real Estate Investment Trusts (REITs) and
Regulated Investment Companies (RICs)
A REIT or RIC that isn’t included in a federal consoli-
dated return based on the provisions of IRC §1504(b)(4)
must be included in the Oregon consolidated return.
These REITs or RICs are subject to the provisions of
ORS 317.715 and supporting administrative rules. For
apportioning taxpayers, factors from the REIT or RIC are
included in the apportionment calculation of the consoli-
dated Oregon return.
A REIT or RIC that isn’t required to be included in an
Oregon consolidated return is subject to tax under ORS
chapter 317 or 318 and calculates their Oregon apportion-
ment factors and Oregon net income in the same manner
as a corporation with a separate filing requirement under
ORS 317.710. REITs or RICs doing business in Oregon are
subject to Oregon minimum tax. Business trusts that
qualify as REITs filing separate returns aren’t allowed
an Oregon deduction for net losses of prior years.
Distributions from a REIT or RIC to its shareholders are
treated the same as distributions from a corporation to
its shareholders for purposes of ORS chapters 316, 317,
and 318.
150-102-020-1 (Rev. 10-15-21) 9 2021 Form OR-20 Instructions
Real Estate Mortgage Investment Conduits
(REMICs)
A REMIC isn’t subject to Oregon tax; the income is tax-
able to the holders of the REMIC’s interests under ORS
Chapter 316, 317, or 318, whichever is applicable. A
REMIC must file Form OR-20-INC if it receives prohib-
ited transaction income from Oregon sources.
All REMICs required to file must include a complete
copy of federal Form 1066. The REMIC must also include
a federal Schedule Q for each residual interest holder for
each quarter of the tax year. Report the amount of net
income from prohibited transactions from federal Form
1066 Schedule J (ORS 314.260).
Filing checklist
Rounding to whole dollars. Enter amounts on the return
and accompanying schedules as whole dollars only.
Example: $4,681.55 becomes $4,682; and $8,775.22 becomes
$8,775.
• Due date of your return. Returns are due by the 15th
day of the month following the due date of your fed-
eral corporation return. When the 15th day falls on a
Saturday, Sunday, or legal holiday, the due date is the
next business day.
• Extensions. See the instructions below for the exten-
sion checkbox. When you file, include the extension as
the final page of your return.
• Payments.
⚬ Estimated payments and prepayments. Identify all
estimated payments claimed by completing Sched-
ule ES on page 5 of your return. List all payments
that were submitted prior to filing your return.
Include the corporation name and FEIN if a payment
was made by an affiliate of the filing corporation.
Missing or incomplete information on payments
made by an affiliate could result in a billing.
⚬ Online payments. You may pay online for any
return at www.oregon.gov/dor. Search “payments.”
⚬ Making electronic payments with your e-filed
return. We accept electronic payments when e-filing
your original return.
⚬ Making check or money order payments with your
paper return. Make your check or money order pay-
able to Oregon Department of Revenue. Write the
following on your check or money order:
— Filer FEIN.
— Tax year beginning and ending dates.
— Contact phone.
⚬ To speed up processing of your return:
— Don’t use Form OR-20-V payment voucher.
— Don’t staple payment to the return.
— Don’t send cash or postdated checks.
— Don’t use red or purple or any gel ink.
• Assembling your return. Assemble your Oregon
return forms in the following order:
1. Form OR-20, Oregon Corporation Excise Tax Return;
2. Schedule OR-AP, Apportionment of Income for Corpo-
rations and Partnerships;
3. Schedule OR-AF, Schedule of Affiliates;
4. Schedule OR-PI, Schedule of Partnership Information;
5. Schedule OR-ASC-CORP, Oregon Adjustments;
6. Form OR-37, Underpayment of Oregon Corporation
Estimated Tax;
7. Form OR-DRD, Dividends-Received Deduction;
8. Form OR-24, Like-Kind Exchanges/Involuntary
Conversions;
9. Schedule OR-FCG-20, Farm Liquidation Long-Term
Capital Gain Tax Adjustment;
10. Other Oregon statements;
11. Oregon credit forms including notice of credit
transfers;
12. Copy of federal tax return and schedules; and
Form 7004, Federal extension.
Mailing Addresses
Tax-due returns, with or without payment, mail to:
Oregon Department of Revenue
PO Box 14790
Salem OR 97309-0470
(Do NOT include a payment voucher.)
Refunds or no tax-due returns, mail to:
Oregon Department of Revenue
PO Box 14777
Salem OR 97309-0960
Check or money order payments only, mail to:
Oregon Department of Revenue
PO Box 14950
Salem OR 97309-0950
(Include Form OR-20-V payment voucher.)
Form instructions
Heading and checkboxes
• OR-FCG-20 checkbox. A reduced tax rate is available
if you sold or exchanged capital assets used in farm-
ing. Complete Schedule OR-FCG-20 and check the box
in the header of the form.
• Extension checkbox. For an Oregon extension when
you’re also filing for a federal extension: Send a copy
of the federal extension with the Oregon return when
you file. Check the extension checkbox on your Ore-
gon return and include a copy of the extension after all
other enclosures.
For an “Oregon only” extension: Answer question 1 on
federal extension Form 7004, write “For Oregon Only”
at the top of the form, and include it with your Oregon
150-102-020-1 (Rev. 10-15-21) 10 2021 Form OR-20 Instructions
return when you file. Check the extension checkbox
on the Oregon return.
The Oregon extension due date is the 15th day of the
month following the federal extension’s due date. Don’t
send the extension before you file your Oregon return.
More time to file doesn’t mean more time to pay your
tax. To avoid penalty and interest, pay your tax due
online, or by mail with Form OR-20-V, by the original
due date of your return. Note: Filing Form OR-20-V
isn’t an extension of time to file your tax return.
If you’re making an extension payment by mail, send
the payment to: Oregon Department of Revenue, PO
Box 14950, Salem OR 97309-0950.
Include on your check:
⚬ FEIN.
⚬ “Extension.”
⚬ Tax year beginning and ending dates.
⚬ Contact phone.
• Form OR-37 checkbox. If you have an underpayment
of estimated tax, you must include a completed Form
OR-37. Check the FormOR-37 box in the header of your
return.
Use Form OR-37 to:
⚬ Calculate the amount of underpayment of estimated
tax;
⚬ Compute the amount of interest you owe on the
underpayment; or
⚬ Show you meet an exception to the payment of
interest.
• REIT/RIC checkbox. If you participated in a REIT or
RIC, you must check the appropriate box in the header
area of the Oregon tax return.
• Amended checkbox. Check the amended box if this is
an amended return.
• Form OR-24 checkbox. Corporations may defer,
for Oregon tax purposes, all gains realized in the
exchange of like-kind property and involuntary con-
versions under IRC §1031 or §1033, even though the
replacement property is outside Oregon. Oregon will
tax the deferred gain when it’s included in federal tax-
able income.
Include a copy of your Oregon Form OR-24, Like-Kind
Exchanges/Involuntary Conversions, 150-800-734, with
your Oregon return and check the Form OR-24 box if
all of the following apply:
⚬ The corporation reported deferred gain on a federal
Form 8824;
⚬ All or part of the property exchanged or given up
was located in Oregon; and
⚬ All or part of the acquired property was located out-
side of Oregon.
For a more detailed explanation, see ORS 314.650 and
314.665 and supporting administrative rules regarding
apportionment of deferred gain.
• IC-DISC checkbox. Check this box if you are an IC-
DISC regardless of what date you were formed. See
“Special filing requirements” for more information.
• Ag co-op checkbox. Check this box if your corporation
qualifies as an agricultural or horticultural coopera-
tive and you’re determining Oregon sales for mini-
mum tax purposes differently than the Oregon sales
reported on Schedule OR-AP, part 1. See “Special filing
requirements” for more information.
• Federal Form 8886 checkbox and reportable transac-
tions. If you’re required to report listed or reportable
transactions to the IRS on federal Form 8886, you must
check this box. We’ll assess penalties if you don’t com-
ply with this requirement.
• Global intangible low-taxed income (GILTI) included
on federal return. If you included GILTI on your federal
return, check this box.
• Accounting period change checkbox. Check this box
only if both of the following apply:
⚬ The excise tax return covers a period of less than 12
months; and
⚬ The short-period return is due to a qualified change
in accounting period per IRC §§441 to 444.
Note: A short-period return doesn’t automatically con-
stitute a qualified change in accounting period. A tax-
payer that isn’t in existence for the entire year shouldn’t
check this box. This includes subsidiaries that join or
leave a consolidated filing group, and newly formed or
dissolved corporations.
If you file a short-period return due to a qualified
change in accounting period and you’re subject to
the minimum tax, your minimum tax shall be appor-
tioned as follows:
Annualize Oregon sales by multiplying actual Oregon
sales by 12 and dividing by the number of months in
the short period. Use the minimum tax table in Appen-
dix B to determine minimum tax on annualized Ore-
gon sales.
Apportion the minimum tax determined above by
multiplying by the total number of months in the short
period and dividing it by 12.
• Alternative apportionment checkbox. See Appendix
C for complete information. Check this box if you have
included a request with your return.
Name. Generally, a consolidated Oregon return is filed
in the name of the common parent corporation. If the
parent corporation isn’t doing business in Oregon, file
the return in the name of the member of the group
having the greatest presence in Oregon. “Having the
150-102-020-1 (Rev. 10-15-21) 11 2021 Form OR-20 Instructions
greatest presence” means that the member has the larg-
est Oregon property value as determined under ORS
314.655 (see Schedule OR-AP).
• Legal name. Enter the corporation’s current legal
name as set forth in the articles of incorporation or
other legal document.
• FEIN. Enter the FEIN of the corporation named as the
filer on the consolidated Oregon return.
• DBA/ABN. If the corporation is doing business under
a different name, for example, DBA or ABN, enter that
name.
• Current address. Always enter the corporation’s cur-
rent address. If the address for the year you’re filing
has changed, don’t use the old address or our system
will revert your current address to the old address.
Questions
Questions A–C. Complete only if this is your first return
or the answer changed during the tax year.
Question D. Refer to the current list of North American
Industry Classification System (NAICS) codes found
with your federal tax return instructions. Only enter the
code if this is your first return or the current code is dif-
ferent than you reported last year.
Question E(1). Check this box if you filed a consolidated
federal return. Include a list of the corporations included
in the consolidated federal return.
Question E(2). Check this box if you filed a consolidated
Oregon return. Complete Schedule OR-AF, Schedule of
Affiliates, and list only the corporations included in the
consolidated Oregon return that:
• Are doing business in Oregon; or
• Have income from Oregon sources.
Question E(3). Check this box if it applies. Include a
list of corporations included in the consolidated federal
return that aren’t included in this Oregon return. List
each corporation’s name and FEIN. Note: Include a copy
of your federal return and schedules as filed with the
IRS.
Question F. If the filing corporation (shown above as
legal name) is a subsidiary in an affiliated group, or a
subsidiary in a parent-subsidiary controlled group, enter
the name and FEIN of the parent corporation. For def-
inition of a subsidiary in an affiliated group or a par-
ent-subsidiary controlled group, see federal Form 1120,
Schedule K.
Question G. Enter the total number of corporations
doing business in Oregon that are included in this return.
Question L. Utility or telecommunications compa-
nies. Taxpayers primarily engaged in utilities or tele-
communications may elect to apportion income using a
double-weighted sales factor formula (ORS 314.280 and
supporting administrative rules). Check the box if mak-
ing this election.
Question M. Broadcaster. Check this box only if you or
an affiliate included in this return engages in the for-
profit business of broadcasting to persons located both
within and outside this state.
Question N. Total Oregon sales.
• Apportioned returns. Enter the amount of Oregon
sales from Schedule OR-AP, line 22(a) and OAR
150-317-0540.
• Nonapportioned returns. Enter the amount of sales
as defined by ORS 314.665. Generally, C corporations
doing business only within Oregon will calculate Ore-
gon sales by adding:
⚬ Gross receipts from sales of inventory (less returns
and allowances), equipment, and other assets;
⚬ Gross rent and lease payments received; and
⚬ Gross receipts from the performance of services.
Note: (This is a non-exclusive list.)
Generally, for purposes of determining minimum tax,
the calculation for Oregon sales includes gross business
income amounts from federal Form 1120, lines 1c and 5
through 10. Include positive numbers only.
Line instructions
Line 1. Taxable income from U.S. corporation income
tax return. Enter the taxable income reported for federal
income tax purposes before net operating loss or special
deductions (federal Form 1120, line 28).
Additions
Line 2. Total additions from Schedule OR-ASC-CORP,
Section A. The amount by which any item of income is
greater under Oregon law than under federal law, or the
amount by which any allowable deduction is less under
Oregon law than under federal law, is an addition on
your Oregon return.
Use Schedule OR-ASC-CORP, Section A, to report the
amount and description code of each difference. Use the
description code from the list in Appendix A. The total
of all additions are entered on Form OR-20, line 2.
Additions include:
• Bad debt reserve addition of a financial institution
to the extent that the federal amount exceeds the
amount that’s allowable for Oregon. The bad debt
method of financial institutions is tied to the federal
method. For taxpayers required to use the specific
write-off method, an addition must be made if the
amortization of the federal reserve is less than the
amortization of the Oregon reserve (ORS 317.310).
150-102-020-1 (Rev. 10-15-21) 12 2021 Form OR-20 Instructions
• Capital construction fund. Amounts deferred under
Section 607 of the Merchant Marine Act of 1936 and
IRC §7518 must be added back to federal taxable
income (ORS 317.319).
• Charitable donations not allowed for Oregon. Dona-
tions to a charitable organization that has received a
disqualifying order from the Attorney General aren’t
deductible as charitable donations for Oregon tax pur-
poses. Such organizations are required to provide a
disclosure to a donor to acknowledge this. The Attor-
ney General will publish online and otherwise make
publicly available information identifying the chari-
table organizations receiving a disqualification order.
If you claimed a federal deduction, an addition must
be made on your Oregon return for donations to such
charitable organizations (ORS 317.491).
• Child Care Office contributions. The deduction
claimed on the federal return must be added back to
federal taxable income on the Oregon return if the
Oregon credit’s claimed (ORS 315.213).
• Claim of right income repayment adjustment when
credit’s claimed. The deduction under IRC §1341 on
the federal return must be added back to federal tax-
able income on your Oregon return if the Oregon cred-
it’s claimed (ORS 317.388).
• CPAR addition. If you’re an owner of a partnership
that was subject to a partnership-level audit by the
IRS (or you’re an owner of a tiered partner of such a
partnership), you may have to increase or decrease
your Oregon income as a result of the audit. Report an
increase in income using addition code 187 or report a
decrease in income using subtraction code 384, which-
ever is applicable. Use these codes even if another
code is assigned for the specific type of increased or
decreased income (ORS 314.733). Visit our website for
more information.
• Deferred gain recognized from out-of-state disposi-
tion of property acquired in an IRC §1031 or §1033
exchange. See ORS 317.327 regarding the computation
of the addition if gain or loss is recognized for federal
tax purposes but not taken into account in the compu-
tation of Oregon taxable income.
• Depletion (percentage in excess of cost). Add the fed-
eral deduction that is in excess of the Oregon allow-
ance for depletion (ORS 317.374).
• Depreciation differences. If your Oregon deprecia-
tion isn’t the same as your federal depreciation, the
difference is a required modification to your Oregon
return (ORS 317.301). Use Schedule OR-DEPR to deter-
mine the Oregon modification.
• Gain or loss on the disposition of depreciable prop-
erty. Add the difference in gain or loss on sale of busi-
ness assets when your Oregon basis is less than your
federal basis (ORS 317.356 and OAR 150-317-0420).
• Global intangible low-taxed income (GILTI) under
IRC Section 250. You must add back any GILTI amount
not included in Line 1 of your Oregon return. Gener-
ally, the federal deduction is taken on line 29b of fed-
eral Form 1120 and doesn’t impact the Oregon return.
However, if any amount was omitted or deducted in
determining federal income carried to line 1 of your
Oregon return, it must be added back before a subtrac-
tion can be claimed. Report the Oregon addition (if
any) on Schedule OR-ASC-CORP using code number
186 (ORS 317.267).
• Income from sources outside the United States. Add
income from sources outside the United States, as
defined in IRC §862, not included in federal taxable
income under IRC §§861 to 864 (ORS 317.625).
• Income of related FSC or DISC. Net income or loss
must be included in the net income of the related U.S.
affiliate if the related FSC or DISC doesn’t qualify for
ORS 317.283(2) treatment. (ORS 317.283 and 317.286).
• Individual Development Account credit. Donations
deducted on the federal return must be added back to
federal taxable income if the Oregon credit’s claimed
[ORS 315.271(2)].
• Intercompany transactions involving intangible
assets. The user of the intangible asset must add the
royalty or other expense for such use to federal taxable
income as an addition on the Oregon tax return if:
⚬ An intangible asset is owned by one corporation or
business (the owner), and used by another (the user)
for a royalty or other fee;
⚬ Both the owner and the user are “owned by the same
interests,” as defined in Treas. Reg. §1.469-4T(w);
⚬ The owner and the user aren’t included in the same
Oregon tax return; and
⚬ The separation of ownership of the intangible asset
from the user of the intangible asset results in either:
evasion of tax or a computation of Oregon taxable
income that isn’t clearly reflective of Oregon busi-
ness income.
If the owner also files an Oregon return, the owner
of the intangible asset must report the correspond-
ing royalty or other income as a negative addition on
Schedule OR-ASC-CORP, Section A (ORS 314.295 and
supporting administrative rules).
• Interest income excluded from the federal return.
Oregon gross income includes interest on all state and
municipal bonds excluded for federal tax purposes.
Reduce the addition by any interest incurred to carry
the obligations and by any expenses incurred in pro-
ducing this interest income (ORS 317.309).
• Inventory costs. The costs allocable to inventory are
the same as those included in IRC §263A. Differences
in depreciation and depletion allocable to inventory
result in a modification [ORS 314.287(3)].
150-102-020-1 (Rev. 10-15-21) 13 2021 Form OR-20 Instructions
• IRC §139A federal subsidies for prescription drug
plans. For federal purposes, taxpayers can exclude
from taxable income certain federal subsidies for
prescription drug plans per IRC §139A. However, for
Oregon purposes, this federally excluded income is an
addition on the Oregon return (ORS 317.401).
• IRC §631(a) treatment of timber isn’t recognized by
Oregon. Both beginning and ending inventories must
be adjusted for IRC §631(a) gain. For Oregon purposes,
there’s no taxable event until actual sale (ORS 317.362).
• Losses of nonunitary corporations. Net losses of non-
unitary corporations included in a consolidated federal
return must be eliminated from the Oregon return.
Net losses include the separate loss as determined
under Treasury Regulations adopted for IRC §1502,
and deductions, additions, or items of income, expense,
gain, or loss for which the consolidated treatment is
prescribed. Include a schedule showing your compu-
tation of the total net loss eliminated [ORS 317.715(2)].
• Losses of unitary insurance affiliates. If a unitary
insurance affiliate has a separate return filing require-
ment, they’re excluded from the consolidated Oregon
return. The insurance affiliate is treated as if it’s a non-
unitary affiliate of its consolidated group and the loss
(if any) is an addition (ORS 317.715).
• Net federal capital loss deduction. If the Oregon and
federal capital loss deductions are different, add the
federal capital loss back to federal taxable income. The
Oregon capital loss will be deducted after subtrac-
tions (and apportionment for corporations required to
apportion income) to arrive at Oregon taxable income
(ORS 317.013 and supporting administrative rules).
• Opportunity Grant Fund (auction). Any federal deduc-
tion for contributions for which an Opportunity Grant
Fund tax credit certification is made must be added to
federal taxable income ORS 315.643).
• Oregon excise tax and other state or foreign taxes
on or measured by net income. Oregon excise tax
may not be deducted on the Oregon return. Taxes of
other states or foreign governments on or measured
by net income or profits may not be deducted on the
Oregon return. If you subtracted these taxes on your
federal return, you must add them back on your Ore-
gon return. However, the Oregon minimum tax and
local taxes, such as the Multnomah County Business
Income tax, are deductible, and aren’t required to be
added back (ORS317.314).
• Oregon production investment fund. Add back the
amount of contribution for which a tax credit certifica-
tion is made that’s allowed as a deduction for federal
tax purposes (ORS 315.514).
• REITs and RICs. A REIT or RIC meeting the federal
affiliate definition, must be included in the consoli-
dated Oregon return. This is an Oregon modification
(addition or subtraction) to federal taxable income. For
apportioning taxpayers, factors from the REIT or RIC
are included in the apportionment calculation of the
consolidated Oregon return (ORS317.010 and support-
ing administrative rules).
• Safe harbor lease agreements. Oregon doesn’t tie
to the federal safe harbor lease provisions. See ORS
317.349 and supporting administrative rules for details
about the adjustments required for Oregon.
• University venture development fund contributions.
Add to federal taxable income the amount of contri-
butions used to calculate the University Venture Fund
Contribution credit that were deducted from federal
taxable income (ORS 315.521).
• Unused business credits. Unused business credits
taken as a federal deduction under IRC §196 must be
added back to federal taxable income (ORS 317.304).
Line 3. Income after additions (line 1 minus line 2).
Subtractions
Line 4. Total subtractions from Schedule OR-ASC-CORP,
Section B. The amount by which an item of income is less
under Oregon law than federal law, or the amount by
which an allowable deduc tion is greater under Oregon
law than federal law, is a subtraction on your Oregon
return.
Use Schedule OR-ASC-CORP, Section B, to report the
amount and description code of each difference. Use the
description code from the list in Appendix A. The total
of all subtractions are entered on Form OR-20, line 4.
Subtractions include:
• Bad debt reserve addition of a financial institution
to the extent that the Oregon amount exceeds the
amount that’s allowed on the federal return. A sub-
traction is also made if the amortization of the federal
reserve is greater than the amortization of the Oregon
reserve (ORS 317.310).
• Charitable contribution. Subtract the amount by
which a corporation must reduce its charitable contri-
bution deduction under IRC §170(d)(2)(B) (ORS 317.307
and OAR 150-317-0350).
• CPAR subtraction. If you’re an owner of a partner-
ship that was subject to a partnership-level audit by
the IRS (or you’re an owner of a tiered partner of such
a partnership), you may have to increase or decrease
your Oregon income as a result of the audit. Report an
increase in income using addition code 187 or report a
decrease in income using subtraction code 384, which-
ever is applicable. Use these codes even if another
code is assigned for the specific type of increased or
decreased income (ORS 314.733). Visit our website for
more information.
150-102-020-1 (Rev. 10-15-21) 14 2021 Form OR-20 Instructions
• Deferred gain recognized from out-of-state disposi-
tion of property acquired in an IRC §1031 or §1033
exchange. See ORS 317.327 regarding the computa-
tion of the subtraction if gain or loss is recognized for
federal tax purposes but not taken into account in the
computation of Oregon taxable income.
• Depletion. Subtract the Oregon allowance for deple-
tion that is in excess of the federal deduction for deple-
tion (ORS 317.374).
• Depreciation differences. If your Oregon deprecia-
tion isn’t the same as your federal depreciation, the
difference is a required modification to your Oregon
return (ORS 317.301). Use Schedule OR-DEPR to deter-
mine the Oregon modification.
• Dividend deduction. A 70 percent deduction is
allowed for qualifying dividends regardless of geo-
graphic source. An 80 percent deduction is allowed for
dividends received from corporations whose stock is
owned 20 percent or more. Use Oregon Form OR-DRD
for computing the Oregon dividend deduction and
include it with your return (ORS 317.267).
• Energy conservation payments. Any amount received
as a cash payment for energy conservation measures
is exempt from Oregon excise tax (ORS 469.631 to
469.687). Subtract any amount that’s included in fed-
eral taxable income (ORS 317.386).
• Federal credits. Subtract the amount of expense not
deducted on the federal return attributable to claiming
a federal credit (ORS 317.303).
• Federal investment tax credit on certain assets. If you
take a federal tax credit on certain assets, and your
federal basis is less than your Oregon basis, you must
recalculate the gain or loss on disposal of those assets
and subtract the difference (ORS 317.356).
• Film production labor rebate. Subtract the amount
received as a labor rebate that’s included in federal tax-
able income (ORS 317.394).
• Foreign derived intangible income (FDII) under IRC
Section 250. Oregon is connected with the FDII deduc-
tion on your federal return. Generally, the federal deduc-
tion amount is reported on federal Form 8993, Part IV,
line 8. Report your Oregon subtraction on Schedule OR-
ASC-CORP using code number 382. Don’t use Form
OR-DRD for this subtraction [SB 851 (2019)].
• Gain or loss on the sale of depreciable property. The
difference in gain or loss on the sale of business assets
when your Oregon basis is greater than your federal
basis (ORS 317.356).
• Global intangible low-taxed income (GILTI) under
IRC Section 250. Oregon allows an 80 percent subtrac-
tion of GILTI amounts under IRC Section 951A that are
included in your Oregon income. Report the Oregon
subtraction on Schedule OR-ASC-CORP using code
number 381. Don’t use Form OR-DRD for this subtrac-
tion (ORS 317.267).
• IC-DISC commission payments. For tax years begin-
ning on or after January 1, 2013, a deduction is allowed
for commission payments made to an IC-DISC if the
IC-DISC was formed on or before January 1, 2014
(ORS317.283).
• Income of nonunitary corporations. Net income of
nonunitary corporations included in a consolidated
federal return must be eliminated from the Oregon
return. Net income includes the separate taxable
income, as determined under Treasury Regulations
adopted for IRC §1502, and any deductions, additions,
or items of income, expense, gain, or loss for which
consolidated treatment is prescribed. Include a sched-
ule showing computation of the total net income elimi-
nated [ORS317.715(2)].
• Income of unitary insurance affiliates. If a unitary
insurance affiliate has a separate return filing require-
ment, they’re excluded from the consolidated Oregon
return. The insurance affiliate is treated as if it’s a
nonunitary affiliate of its consolidated group and any
income is a subtraction (ORS 317.715).
• Income on a composite return. A corporate owner of
a pass-through entity (PTE) may subtract its share of
distributive income that has already been reported on
an Oregon composite return. See Publication OR-OC
and OAR 150-314-0515 for more information.
• Inventory costs. The costs allocable to inventory are
the same as those included in IRC §263A. Differences
in depreciation and depletion allocable to inventory
result in a modification [ORS 314.287(3)].
• IRC Section 245A foreign-source portion dividends.
Oregon allows a 100 percent subtraction of the foreign-
source portion of dividends from certain foreign cor-
porations under IRC Section 245A. The subtraction is
allowed only if the amount is included in federal tax-
able income reported on line 1 of your Oregon return.
Generally, the federal deduction amount is reported
on federal Form 1120, Schedule C, line 13. Report your
Oregon subtraction on Schedule OR-ASC-CORP using
code number 383. Don’t use Form OR-DRD for this
subtraction (ORS 317.267).
• Land donation or bargain sale of land to educa-
tional institutions. Enter the fair market value of land
donated or the amount of the reduction in sales price of
land sold to a school district. The subtraction is limited
to 50 percent of Oregon taxable income (ORS 317.488).
• Losses from outside the United States. Subtract losses
from sources outside the United States, as defined in
IRC §862, not included in federal taxable income under
IRC §§861 to 864 (ORS 317.625).
150-102-020-1 (Rev. 10-15-21) 15 2021 Form OR-20 Instructions
• Manufactured dwelling park tenant payments made
under ORS 90.505 to 90.840 to compensate a tenant for
costs incurred due to the closure of the park may be
subtracted (ORS 317.092).
• Marijuana business expenses. ORS 317.363 allows
Oregon taxpayers filing a corporate excise or income
tax return to deduct business expenses otherwise
barred by IRC §280E if the taxpayer is engaged in mar-
ijuana-related activities authorized by ORS 475B.010 to
475B.395.
• Oregon Investment Advantage. To qualify, facilities
must be certified by the Oregon Business Development
Department (dba Business Oregon). For more informa-
tion about the program or to get an application, visit
www.oregon4biz.com. This applies to excise tax fil-
ers only.
How is the subtraction computed? Multiply the Ore-
gon taxable income figure (Form OR-20, line 9) as com-
puted without applying this subtraction by the sum of:
⚬ 50 percent of the ratio of the payroll from the cer-
tified facility over the corporation’s total payroll
within Oregon; and
⚬ 50 percent of the ratio of the average value of prop-
erty from the certified facility over the corporation’s
total average value of property within Oregon.
Corporations that do business both inside and outside
of Oregon and complete Schedule OR-AP must claim
the subtraction on Schedule OR-AP, part 2, line 10b.
Corporations with activity only in Oregon (that don’t
apportion income and don’t use Schedule OR-AP)
claim the subtraction on Schedule OR-ASC-CORP
using subtraction code 342. (ORS 317.391).
Note: There is no subtraction code associated with
Schedule OR-AP for apportioning taxpayers. Subtrac-
tion code 342 is only used on Schedule OR-ASC-CORP
for taxpayers who do not apportion income.
• Patronage dividends (cooperatives only). Coopera-
tives filing federal Form 1120-C may subtract patron-
age dividends that are included in Oregon taxable
income (ORS 317.010).
• REITs and RICs. A REIT or RIC meeting the federal
affiliate definition must be included in the consoli-
dated Oregon return. This is an Oregon modification
(addition or subtraction) to federal taxable income. For
apportioning taxpayers, factors from the REIT or RIC
are included in the apportionment calculation of the
consolidated Oregon return (ORS317.010 and support-
ing administrative rules).
• Sale of manufactured dwelling park. The net gain
attributable to the sale of a manufactured dwelling
park to a tenant’s association, facility purchase asso-
ciation, or tenant’s association supported nonprofit
organization is exempt from tax (see note following
ORS317.401).
• Taxes paid to a foreign country. You may subtract
from federal taxable income the taxes paid to a foreign
country upon the payment of interest or royalties aris-
ing from sources within such foreign country, if such
taxes are not deductible in arriving at federal taxable
income and if the interest or royalties are included in
arriving at Oregon taxable income [ORS 317.314.(3)].
• Work opportunity credit wages not deducted on the
federal return. Subtract the amount of wages that
weren’t deducted on the federal return because the
work opportunity credit was claimed (ORS 317.303).
Line 5. Income before net loss deduction (line 3 minus
line 4).
Line 6. Net loss deduction.
• Enter the deduction on line 6 if taxable only by Ore-
gon. Enter as a positive number.
• Enter the deduction on Schedule OR-AP, part 2, line
10a if taxable both in Oregon and another state.
• Include a schedule showing your computations.
• A net loss is the amount determined under IRC Chap-
ter 1, Subtitle A, with the modifications specifically
prescribed under Oregon law.
• The Oregon deduction is the sum of unused net losses
assigned to Oregon for preceding taxable years.
• A net operating loss carryforward is required to be
reduced by the entire Oregon net income of interven-
ing tax years [ORS 317.476(4)(b)].
• Net losses can be carried forward up to 15 years.
• Oregon doesn’t allow net losses to be carried back.
• For losses, and built-in losses occurring before a
change in ownership [separate return loss year (SRLY)
limitations], Oregon is tied to the federal limitations
(IRC §382 and §384; ORS317.476 and 317.478).
• The total net loss deduction on a consolidated Oregon
return is the sum of the net losses available to each
of the corporations subject to the limitations in ORS
317.476 and supporting administrative rules.
• REITs, if qualified under IRC §856, aren’t allowed a net
loss deduction [ORS 317.476(5)].
Line 7. Net capital loss deduction.
• Enter the deduction on line 7 if taxable only by Ore-
gon. Enter as a positive number.
• Enter the deduction on Schedule OR-AP, part 2, line
10b if taxable both in Oregon and another state.
• Include a schedule showing your computations,
including the tax year the net capital loss originated
(ORS 317.013 and supporting administrative rules).
• Oregon allows a net capital loss deduction for losses
apportioned to Oregon and carried from another year.
150-102-020-1 (Rev. 10-15-21) 16 2021 Form OR-20 Instructions
• The deductible loss is limited to net capital gain
included in Oregon income. Capital losses must be
carried back three tax years and then may be carried
forward for up to five tax years.
Line 8. Apportionment percentage. Enter the appor-
tionment percentage from Schedule OR-AP, part 1, line
23. If you have income only in Oregon and don’t appor-
tion, enter 100.0000.
Line 9. Oregon taxable income (line 5 minus lines 6 and
7, or Schedule OR-AP, part 2, line 12).
Tax
Line 10. Calculated excise tax. Don’t enter the mini-
mum tax on this line. See Appendix B for computation.
Line 11. Schedule OR-FCG-20 adjustment. A reduced
tax rate is available if you sold or exchanged capital assets
used in farming. Subtract the amount of adjustment for
tax on net long-term capital gain from farm property
from line 9 of Schedule OR-FCG-20 (ORS 317.063).
Line 12. Total calculated excise tax (line 10 minus line 11).
Line 13. Minimum tax. The minimum tax for C corpora-
tions and insurance companies doing business in Oregon
is based on Oregon sales. Use the table in Appendix B.
• Consolidated returns: the minimum tax is based on
Oregon sales of the affiliated group of corporations fil-
ing an Oregon return. One minimum tax applies to the
affiliated group filing the consolidated return, not to
each individual affiliate included in the consolidated
return doing business in Oregon.
• The minimum tax isn’t apportionable for a short tax
year (except a change of accounting period).
Nonapportioned returns—C corporations doing busi-
ness only within Oregon will calculate Oregon sales by
adding:
• Gross receipts from sales of inventory (less returns
and allowances), equipment, and other assets;
• Gross rent and lease payments received;
• Gross receipts from the performance of services; and
• Gross receipts from the sale, exchange, redemption, or
holding of intangible assets developed by or used in
the business operations.
Note: (This is a non-exclusive list.)
Generally, for purposes of determining minimum tax,
Oregon sales includes gross business income amounts
from federal Form 1120, lines 1c, and 5 through 10.
Include positive numbers only.
Apportioned returns —C corporations and insurance
companies doing business in more than one state that
apportion business income for Oregon tax purposes, use
the Oregon sales amount from line 22(a) on Schedule
OR-AP, part 1.
Note: Some entity structures have specific minimum
tax and filing instructions. See “Special filing require-
ments.” These include:
• Agricultural and horticultural cooperatives.
• Exempt organizations.
• Homeowners associations.
• Insurers.
• IC-DISCs.
• LLCs.
• Political organizations.
• Publicly traded partnerships.
• REITs and RICs.
• REMICs.
Corporations and partnerships with Oregon source
income who aren’t doing business in Oregon aren’t sub-
ject to the minimum tax. See “What form do I use?”
Line 14. Tax (greater of line 12 or line 13). Oregon tax is
the greater of total calculated tax or minimum tax.
Line 15. Tax adjustments.
Installment sales interest. If you owe interest on
deferred tax liabilities with respect to installment obli-
gations under ORS 314.302, enter the amount of interest
as a positive number. Include a schedule showing how
you figured the interest.
Line 16. Tax before credits (line 14 plus line 15).
Credits
For a complete list and description of all Oregon corpora-
tion cred its, visit www.oregon.gov/dor/business.
Note: Minimum tax can’t be reduced, paid, or otherwise
satisfied through the use of any tax credit (ORS 317.090).
Important:
• All credits are claimed on Schedule OR-ASC-CORP.
• Use the description code from the list in Appendix A.
• List credits and codes on the OR-ASC-CORP in the
order you want them used.
• Taxpayers must claim the full amount of a credit
allowed per year (ORS 314.078).
• Credits can’t be used to offset minimum tax.
Pollution control facilities credit. Enter the following
information from the face of the Pollution Control Facil-
ity Certificate to compute the annual tax credit.
1. Actual cost of pollution control
facility.
1. ____________
2. Percent of actual cost properly
allocable to pollution control.
2. ____________
3. Line 1 multiplied by line 2. 3. ____________
4. Maximum tax credit allowed
(50%).
4. ____________
150-102-020-1 (Rev. 10-15-21) 17 2021 Form OR-20 Instructions
5. Eligible tax credit (line 3
multiplied by line 4).
5. ____________
6. Remaining useful life (see
below).
6. ____________
7. Yearly allowable credit (line 5
divided by line 6).
7. ____________
Remaining useful life
The useful life of the facility begins on the date the tax-
payer places the facility into operation. The taxpayer
may take the tax credit over the remaining useful life
at the time of certification but not less than one year or
more than 10 years. Calculate the spent life by subtract-
ing the date you placed the facility into operation from
the date of certificate issuance.
Example
Year in date of issue _________ 2001
Year in placed in operation _________ 2000
Spent life _________ 1
Subtract the spent life from the useful life (one-year min-
imum, 10-year maximum).
The 2001 legislature provided an additional three-year
carryforward on any unexpired tax credit that exists
as of the tax year that begins in the 2001 calendar year.
This means that the certificate holder may carry forward
unused credits for a total of six years.
Unexpired tax credits defined as “Any tax credit other-
wise allowable under this section which isn’t used by the
taxpayer in a particular year,” may be carried forward
and offset against the taxpayer’s tax liability for the next
succeeding tax year [ORS 315.304(9)].
Computation of credit for current year:
1. Annual credit. 1. _________
2. Add credit carryover from prior
years.
2. _________
The certificate holder may carry forward any unused
credit in any one tax year for up to three years. The
taxpayer should carry forward the oldest credit first.
Prepare and include a schedule to show how you com-
puted the credit carryover amount entered on line2.
3. Total credit available. 3. _________
4a. Net tax after other credits. 4a. ________
4b. Less: minimum tax per table. 4b. ________
4c. Maximum tax that can be offset
by credit.
4c. ________
You may choose the order in which tax credits will
reduce the current year tax. Prepare and include a
schedule to show which credits you want to apply to
your tax liability before the pollution control credit.
Enter the net tax from your schedule on line 4a.
5.
Pollution control facility tax credit for
this year (lesser of line 3 or line 4c).
5. _________
Carry this amount to the line on your Oregon tax return.
6. Credit potentially carried forward
to future years (line 3 minus line 5).
6. _________
Line 17. Total standard credits from Schedule OR-ASC-
CORP, Section C. Enter as a positive number.
Line 18. Tax after standard credit (line 16 minus line 17).
Don’t enter less than minimum tax.
Line 19. Total carryforward credits from Schedule OR-
ASC-CORP, Section D. Enter as a positive number.
Line 20. Excise tax after standard and carryforward
credits (line 18 minus 19). This can’t be less than mini-
mum tax on line 15.
Line 21. LIFO benefit recapture subtraction. This
amount is a subtraction from tax after credits. Oregon
has adopted the provisions of IRC §1363(d) for S corpora-
tions. LIFO benefits are included in taxable income for
the last year of the C corporation under these provisions.
On a separate schedule, compute the difference between
tax (after credits and any surplus refund) on income per
the return and income without the recapture of LIFO
benefits. Multiply this difference by 75 percent and enter
the result on Form OR-20, line 21 as a subtraction from
the tax after standard and carryforward credits. Include
the computation schedule with the Oregon return.
On the LIFO benefits line of each of the first three returns
of the new S corporation, add one-third of the tax that
was deferred from the last year of the C corporation. The
tax on LIFO benefit recapture will be in addition to the
Oregon minimum tax, if any (ORS 314.750).
Net excise tax
Line 22. Net excise tax (line 20 minus line 21). Don’t
enter less than minimum tax.
Payments, penalty, interest, and UND
Line 23. Estimated tax payments, other prepayments,
and refundable credits (from Schedule ES on page 5).
• Fill in the total estimated tax payments made before
filing your Oregon return.
• List name and FEIN of the payer only if different from
the corporation filing this return.
Note: Consolidated return filers. If estimated payments
were made under a different name, fill in the paying
150-102-020-1 (Rev. 10-15-21) 18 2021 Form OR-20 Instructions
corporation’s name and FEIN on Schedule ES for the cor-
rect application of estimated payments.
Note: Missing or incomplete information on payment
made by an affiliate could result in a billing.
• Include any refunds applied from other years on line 5.
• Enter payments made with your extension or other
prepayments on line 6.
• Fill in on line 7 the refundable credits from Schedule
OR-ASC-CORP, Section E.
• Carry the total from line 8 to Form OR-20, line 23.
Line 24. Withholding payments made on your behalf from
pass-through entity or real estate income. If taxes were paid
on the corporation’s behalf, enter the amount on this line.
There’s a requirement to withhold tax from the proceeds
of sales of Oregon real property by nonresidents. This
applies to individual nonresidents as well as Ccorpora-
tions that aren’t doing business in Oregon. The amount
to be withheld is the lesser of:
• 4 percent of the consideration (sales price);
• 4 percent of the net proceeds (amount dispersed to the
seller); or
• 8 percent of the gain that’s includible in Oregon tax-
able income for the year.
Withholding isn’t required if one of the following require-
ments is met:
• The consideration for the real property doesn’t exceed
$100,000;
• The property is acquired through foreclosure;
• The transferor (owner) is a resident of Oregon or, if a C cor-
poration, has a permanent place of business in this state; or
• The transferor meets one of the requirements in ORS
314.258(3)(d) through (f).
See instructions for Oregon Form OR-18-WC, Report of
Tax Payment or Written Affirmation for Oregon Real Prop-
erty Conveyance, for more information (ORS 314.258 and
supporting administrative rules).
Pass-through entity withholding requirement. A pass-
through entity (partnership, S corporation, LLP, LLC, or
certain trusts) with distributive income from Oregon
sources must withhold tax from its nonresident owners.
The requirement is waived if the nonresident owner
makes an election to join in the filing of a composite
return, sends us a signed Form OR-19-AF, Oregon Affidavit
for a Nonresident Owner of a Pass-through Entity, or meets
another exception listed in ORS 314.775 and supporting
administrative rules. For more information, see instruc-
tions for Oregon Form OR-19, Annual Report of Nonresident
Owner Tax Payments.
Line 25. Tax due. Is line 22 more than line 23 plus line
24? If so, line 22 minus lines 23 and 24.
Line 26. Overpayment. Is line 22 less than line 23 plus
line 24? If so, line 23 plus line 24, minus line 22.
Line 27. Penalty due with this return. To avoid penalty
and interest, you must make any tax payment owed by
the original due date of the tax return, excluding exten-
sions. You must also e-file or mail your tax return by the
original due date, or by the extended due date if you file
with a valid extension included.
Enter the following penalties on your return if applicable.
• 5 percent failure-to-pay penalty. Include a penalty
payment of 5 percent of your unpaid tax if you don’t
pay by the original due date, even if you have an exten-
sion of time to file.
Exception: You won’t be charged the 5 percent failure-to-
pay penalty if you meet all of the following requirements:
⚬ You have a valid federal or Oregon extension, and
⚬ You pay at least 90 percent of your tax after credits
by the original due date of the return, and
⚬ You file your return within the extension period, and
⚬ You pay the balance of tax due when you file your
return, and
⚬ You pay the interest on the balance of tax due when
you file your return or within 30 days of the date of
the bill you receive from us.
If you filed with a valid extension but didn’t pay
90percent of your tax by the original due date, you’ll
be charged the 5 percent failure-to-pay penalty.
• 20 percent failure-to-file penalty. Include a penalty pay-
ment of 20 percent of your unpaid tax if you don’t file
your return within three months after the original filing
due date (including extensions). The failure-to-file pen-
alty is in addition to the 5 percent failure-to-pay penalty.
• 100 percent late pay and late filing penalty. Include
a penalty payment of 100 percent of your unpaid tax
if you don’t file returns for three consecutive years by
the original filing due date (including extensions) of
the third year. A 100 percent penalty is assessed on
each year’s tax balance.
Line 28. Interest due with this return. You must pay
interest on unpaid taxes if:
• You don’t pay the tax balance by the original filing due
date, excluding extensions;
• You file an amended return and have tax to pay; or
• Your taxable income is changed because of a federal or
state audit and you owe more tax.
Interest owed on tax starts the day after the due date of
your original return, excluding extensions, and ends on
the date of your payment. Interest is computed daily.
To calculate interest:
Tax × daily interest rate × number of days.
Interest rates and effective dates:
150-102-020-1 (Rev. 10-15-21) 19 2021 Form OR-20 Instructions
For periods
beginning Annually Daily
January 1, 2022 4% 0.0110%
January 1, 2021 4% 0.0110%
January 1, 2020 6% 0.0164%
Interest accrues on any unpaid tax during an extension
of time to file.
Interest will increase by one-third of 1 percent per month
(4 percent yearly) on delinquencies if:
• You file a return showing tax due, or we assessed an
existing deficiency; and
• The assessment isn’t paid within 60 days after the
notice of assessment is issued; and
• You haven’t filed a timely appeal with us.
Line 29. Interest on underpayment of estimated tax
(UND). You must make quarterly estimated tax payments
if you expect to owe $500 or more in tax. This includes
Oregon’s minimum tax. Oregon charges UND if:
• The quarterly payment is less than the amount due for
that quarter; or
• We receive the quarterly payment after that quarter’s
due date; or
• No quarterly payments are made during the year and
the final tax debt is $500 or more.
Use Form OR-37 to:
• Calculate the amount of underpayment of estimated tax;
• Compute the interest you owe on the underpayment; or
• Show you meet an exception to the payment of interest.
If you have an underpayment of estimated tax, include
Form OR-37 with your tax return, check the box on page 1 of
Form OR-20, and file them before the due date of the return.
If your current year corporation tax liability, includ-
ing the minimum tax, is less than $500, you don’t need
to make estimated payments. Don’t complete this form.
However, this provision doesn’t apply to a high-income
taxpayer. A “high-income taxpayer” is one that had fed-
eral taxable income before net operating loss and capital
loss carryovers and carrybacks of $1 million or more in
any one of the last three years, not including the current
year.
Line 30. Total penalty and interest (add lines 27 through 29).
Total due or refund
Line 31. Total due (line 25 plus line 30). See “Filing
checklist” for payment options. Don’t include a Form
OR-20-V, payment voucher, with your payment if you’re
including a payment with your return.
Special instructions. If you owe penalty or interest and
have an overpayment on line 26, and your overpayment
is less than total penalty and interest, then fill in the
result of line 30 minus line 26, on line 31.
Line 32. Refund available (line 26 minus line 30).
Line 33. Amount of refund to be credited to estimated
tax. You may elect to apply part or all of your refund
to your next year’s estimated tax payments. Fill in the
amount you want to apply. Your election is irrevocable.
Elected amounts that are attributable to estimated tax pay-
ments received prior to the following year’s first quarter
estimated tax due date, will be applied as a timely first
quarter installment of the following year. Elected amounts
attributable to payments received after the following year’s
first quarter estimated tax due date, will be applied to the
following year’s estimated tax account as of the date the pay-
ment is received. See ORS 314.515 and OAR 150-314-0302.
Line 34. Net refund (line 32 minus line 33).
Do you have questions or need help?
www.oregon.gov/dor
503-378-4988 or 800-356-4222
questions.dor@ dor.oregon.gov
Contact us for ADA accommodations or assistance in
other languages.
150-102-020-1 (Rev. 10-15-21) 20 2021 Form OR-20 Instructions
Additions
Description Code Description Code
Bad debt reserve federal exceeding Oregon ................. 156
Capital construction fund ............................................... 152
Charitable donations not allowed for Oregon ............. 132
Child Care Office contributions ..................................... 153
Claim of right income repayment .................................. 173
CPAR addition .................................................................. 187
Deferred gain from out-of-state disposition of
property ......................................................................... 118
Depletion (percentage in excess of cost) ....................... 166
Depreciation differences.................................................. 174
Gain or loss on disposition of depreciable property ... 158
Global intangible low-taxed income (GILTI) ............... 186
Income from sources outside U.S. ................................. 159
Income of related FSC or DISC ...................................... 178
Individual Development Account credit ...................... 113
Intercompany transactions involving intangible
assets ............................................................................... 160
Interest income excluded from the federal return
(state, municipal, and other interest income) ........... 150
Inventory costs ................................................................. 161
IRC §139A federal subsidies for prescription drugs ... 123
IRC §631(a) treatment of timber not recognized by
Oregon ............................................................................ 162
Losses of nonunitary corporations ................................ 164
Losses of unitary insurance affiliates ........................... 183
Net federal capital loss deduction ................................. 165
Opportunity Grant Fund (auction) ................................ 185
Oregon excise tax and other tax ..................................... 151
Oregon production investment fund ............................ 157
REITs and RICs ................................................................. 168
Safe harbor lease agreements ......................................... 169
Uncategorized addition (must include explanation) ... 199
University venture development fund
contributions ................................................................. 171
Unused business credits .................................................. 122
Subtractions
Description Code Description Code
Bad debt reserve Oregon exceeding federal ................. 359
Charitable contribution ................................................... 351
CPAR subtraction ............................................................. 384
Deferred gain from out-of-state disposition of
property ......................................................................... 352
Depletion (Oregon in excess of federal allowance) ..... 362
Depreciation differences.................................................. 353
Dividend deduction ......................................................... 370
Energy conservation payments ...................................... 368
Federal credits .................................................................. 354
Federal investment tax credit on certain assets ........... 355
Film production labor rebate .......................................... 336
Foreign derived intangible income (FDII) .................... 382
Gain or loss on sale of depreciable property ................ 356
Global intangible low-taxed income (GILTI) ............... 381
IC-DISC commission payments
(DISC formed before 01/02/2014) ............................. 366
Income of nonunitary corporations .............................. 371
Income of unitary insurance affiliates .......................... 376
Income on a composite return ........................................ 341
Inventory costs ................................................................. 357
IRC Section 245A foreign-source portion dividends... 383
Land donation or bargain sale of land to
educational institutions ............................................... 350
Losses from outside U.S. ................................................. 358
Manufactured dwelling park tenant payments ........... 344
Marijuana business expenses ......................................... 375
Oregon Investment Advantage ...................................... 342
Patronage dividends (cooperatives only) ..................... 379
REITs and RICs ................................................................. 360
Sale of manufactured dwelling park ............................. 338
Taxes paid to a foreign country ...................................... 378
Uncategorized subtraction (must include
explanation) ................................................................... 399
Work opportunity credit wages not deducted on the
federal return ................................................................ 372
Appendix A
Corporation Form OR-20
2021 Schedule OR-ASC-CORP codes
150-102-020-1 (Rev. 10-15-21) 21 2021 Form OR-20 Instructions
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
Carryforward credits
Description Code Description Code
Agricultural workforce housing (ORS 315.164 and
315.169) ........................................................................... 835
Alternative qualified research activities
(carryforward only) (ORS 317.154) ............................ 837
Biomass production/collection (carryforward only)
(ORS 315.141) ................................................................ 838
Bovine manure (ORS 315.176 and 315.179) .................. 869
Business energy (carryforward only) (ORS 315.354) ... 839
Child Care Fund contributions (ORS 315.213) ............. 841
Crop donation (ORS 315.156) ......................................... 843
Electronic commerce zone investment (carryforward
only) (ORS 315.507) ...................................................... 845
Employer-provided dependent care assistance
(carryforward only) (ORS 315.204) ............................ 846
Employer scholarship (ORS 315.237) ............................ 847
Energy conservation projects (carryforward only)
(ORS 315.331) ................................................................ 849
Fish screening devices (ORS 315.138)............................ 850
Individual Development Account (IDA) donation
(ORS 315.271) ................................................................ 852
Lender’s credit: energy conservation (carryforward
only) (ORS 317.112) ...................................................... 848
Long-term enterprise zone facilities (carryforward
only) (ORS 317.124) ...................................................... 853
Opportunity Grant Fund (auction) (ORS 315.643) ...... 871
Oregon affordable housing lender’s credit (ORS
317.097) ........................................................................... 854
Oregon Low-Income Community Jobs Initiative
(carryforward only) (ORS 315.533) ............................ 855
Oregon production investment fund (auction)
(ORS 315.514) ................................................................ 856
Pollution control facilities (ORS 315.304)......................857
Qualified research activities (carryforward only)
(ORS 317.152) ................................................................ 858
Reforestation of underproductive forestlands
(carryforward only) (ORS 315.104) ............................ 867
Renewable energy development contributions
(carryforward only) (ORS 315.326) ............................ 859
Renewable energy resource equipment
manufacturing facility (carryforward only)
(ORS 315.341) ................................................................ 860
Repatriation credit (due to IRC §965) (carryforward
only) (must include copy of 2017 form) .................... 870
Rural technology workforce development
(ORS 315.523) ................................................................ 868
Short line railroad rehabilitation (ORS 315.593) .......... 872
Transportation projects (carryforward only)
(ORS 315.336) ................................................................ 863
Uncategorized carryforward credit (must include
explanation) ................................................................... 999
University venture fund (ORS 315.521) ........................ 864
Weatherization lender’s credit (carryforward only)
(ORS 317.111) ................................................................. 866
Refundable credits
Description Code
Claim of right (ORS 315.068) .......................................... 890
150-102-020-1 (Rev. 10-15-21) 22 2021 Form OR-20 Instructions
Appendix B
Oregon Corporation Form OR-20
2021 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, 5 0 0
$10,000,000 to $24,999,999 15,000
$25,000,000 to $49,999,999 30,000
$50,000,000 to $74,999,999 50,000
$75,000,000 to $99,999,999 75,000
$100,000,000 and above 100,000
150-102-020-1 (Rev. 10-15-21) 23 2021 Form OR-20 Instructions
Appendix C
Oregon Corporation Form OR-20
Alternative apportionment
Oregon law allows taxpayers to request an alterna-
tive method of apportionment using the instructions
below. Uniform Division of Income for Tax Purposes Act
(UDITPA) taxpayers filing under ORS 314.605 to ORS
314.675, as well as insurers, and taxpayers filing under
ORS 314.280, must use this procedure to apply for alter-
native apportionment.
Administration
We will review the alternative apportionment request
and issue a decision letter.
If your alternative apportionment petition is denied, you
may appeal the denial of your petition to Oregon Tax
Court as provided in ORS 305.275.
If your alternative apportionment petition is approved,
you may amend your returns within the normal statute
of limitations. The approval of your petition will remain
in effect unless and until we revoke it during audit or
you file a new petition and receive our approval of the
new proposal.
Allow at least 6 months for us to make a determination.
Also, note that all petitions for alternative apportion-
ment may result in additional review and documenta-
tion requests.
Instructions
• Your written petition for alternative apportionment
can be submitted with your original or amended
return (Method 1) or separate from your original or
amended return (Method 2).
• For administrative purposes, we prefer Method 2.
Method 1 —Alternative apportionment petition
submitted with your original or amended return
• Check the alternative apportionment checkbox on
the front of the return and include a written peti-
tion for alternative apportionment with your original
or amended return. Failure to do so could result in
your request being overlooked. This box is to denote
requests only and isn’t to be used after a request is
approved.
• You must include a written petition for alternative
apportionment with your original or amended return
if you check the alternative apportionment checkbox.
• Don’t complete the original or amended return using an
alternative method of apportionment unless/until that
alternative method of apportionment has been approved.
• Mail your petition to our normal return filing addresses.
See “Filing checklist.”
Note: Taxpayers filing amended returns for 2015 or prior
must use the form year corresponding to the tax year
even though there’s no alternative apportionment check-
box on the return. Clearly identify that you’re requesting
alternative apportionment by writing the words “Alter-
native apportionment request” at the top and adhere
to all other requirements. Determinations to amended
returns may take longer to process.
Method 2 —Alternative apportionment petition
submitted separately from your original or amended
return
• Your written petition must have the title “Alternative
apportionment request.”
• Mail your petition to: Oregon Department of Reve-
nue, Corporation Section, 955 Center St NE, Salem OR
97301-2555.
Both methods of petition
• The petition must be signed by the taxpayer or the tax-
payer’s representative.
• In the case of a UDITPA taxpayer, the petition must
fully explain the extent of the taxpayer’s business
activity in Oregon and why standard apportionment
doesn’t fairly and equitably represent the taxpayer’s
business activity in Oregon. An ORS 314.280 taxpayer
must fully explain why standard apportionment
doesn’t fairly and equitably represent the amount of
net income the taxpayer earns inside and outside Ore-
gon. An insurer must explain why standard appor-
tionment doesn’t fairly and equitably represent the
insurer’s business activity within Oregon.
• Your petition must fully explain your proposed
method of alternative apportionment and explain why
this proposed method is more accurate in reflecting
business activity or net income, as appropriate, in Ore-
gon than the standard formula.
• The petition must show how the Oregon return (Form
OR-20, OR-20-INC, OR-20-INS, or OR-20-S) would be
completed, including the net tax calculation, using the
proposed method of alternative apportionment.
