(1) The research credit based on Oregon sales
is the lesser of the following:
(a) Five
percent of the amount by which the qualified research expenses exceed 10
percent of Oregon sales,
(b)
$10,000 times the number of percentage points by which the qualifying research
expenses exceed 10 percent of Oregon sales; or
(c) The taxpayer's liability after other
credits.
(2) For tax
years beginning on or after January 1, 2006, the credit may not exceed
$2,000,000. The limit applies to the consolidated group when a consolidated
Oregon return is filed.
(3) For
tax years beginning on or after January 1, 1995 and before January 1, 2006, the
credit may not exceed $500,000. The limit applies to the consolidated group
when a consolidated Oregon return is filed.
(4) For tax years beginning before January 1,
1995, the credit may not exceed $50,000 or one-third of the excise tax
liability of the taxpayer before credits, whichever is less. These limits apply
to the consolidated group when a consolidated Oregon return is filed.
(5) Credits otherwise allowable
for tax years beginning before January 1, 1995 and not used in such years may
not be carried forward. Credits otherwise allowable for tax years beginning on
or after January 1, 1995 and not used in such years may be carried forward for
up to 5 years.
Example: A corporation has 1994 Oregon sales of
$40,000,000, qualified research expenses of $4,900,000 and Oregon excise tax of
$264,000 before credits. The allowable 1994 credit is calculated as
follows:
Credit before limitations:
Qualified research expenses - $4,900,000
Less: Oregon sales - $40,000,000 x .10
10% of Oregon sales - (4,000,000)
Excess - $900,000 x .05
Credit before limitations - $45,000
Limitations:
Qualified research expenses in
excess of 10% of Oregon sales - $900,000
Divide by Oregon sales - ÷ 40,000,000
Excess percentage points - 2.25
Multiply by $10,000 - x $10,000
$22,500
Maximum credit amount - $50,000
One-third of excise tax liability before credits ($264,000
÷ 3) $88,000
The credit allowed is $22,500.
Notes
Or. Admin. Code §
150-317-0300
12-31-93; RD
7-1993, f. 12-30-93, cert. ef. 12-31-93; RD 3-1995, f. 12-29-95, cert. ef.
12-31-95; REV 8-2001, f. & cert. ef. 12-31-01; REV 5-2006, f. & cert.
ef. 7-31-06; Renumbered from 150-317.154,
REV
68-2016, f. 8-15-16, cert. ef.
9/1/2016
Stat. Auth.: ORS
305.100
Stats. Implemented: ORS
317.154
