Instructions For Form 20 - Oregon Corporation Excise Tax

reported on line 18, Schedule C of federal Form 5471.

• Renewable

energy

development

contributions

Report each subject corporation’s income or loss as a

(auction). If you claimed a federal deduction for the

separate amount on Schedule ASC-CORP; don’t com-

amount you paid for your Oregon Renewable Energy

bine amounts of multiple corporations.

Development tax credit, you’ll have an Oregon addi-

If a subject corporation’s loss or item of expense has

tion for the amount of your deduction. (ORS 315.326)

been excluded from your federal consolidated tax-

• Safe harbor lease agreements. Oregon doesn’t tie to

able income as carried to your Oregon return, it is a

the federal safe harbor lease provisions. See OAR 150-

negative “Other addition” to arrive at Oregon taxable

317.349-(A) and 150-317.349-(B) for details about the

income. For more information, see ORS 317.715 and the

corresponding administrative rules.

adjustments required for Oregon.

• Listed foreign jurisdictions —previously included

• Trust for Cultural Development Account contri-

loss or expense. If any portion of loss or expense

butions. Add to federal taxable income the amount

of a foreign corporation (subject corporation) that’s

deducted as a charitable contribution on the federal

required to be included in the determination of federal

return. (ORS 315.675)

taxable income per ORS 317.715 was already included

• University venture development fund contributions.

in your Oregon taxable income, it won’t be included

Add to federal taxable income the amount of contri-

again. Reduce the “Other addition” loss for the portion

butions used to calculate the University Venture Fund

of the loss or expense that was previously included.

Contribution credit that were deducted from federal

Include a schedule with your return to explain how

each amount is determined. For more information,

taxable income. (ORS 315.521)

see ORS 317.715 and the corresponding administrative

• Unused business credits. Unused business credits

rules.

taken as a federal deduction under IRC §196 must be

• Long-term care insurance premiums. Premiums

added back to Oregon income. (ORS 317.304)

deducted on the federal return must be added back if

Subtractions

the Oregon credit’s claimed under ORS 315.610. (ORS

317.322)

Line 8. Work opportunity credit wages not deducted

• Losses of nonunitary corporations. Net losses of

on the federal return. Enter the amount of wages that

nonunitary corporations included in a consolidated

weren’t deducted on the federal return because the work

federal return must be eliminated from the Oregon

opportunity credit was claimed. (ORS 317.303)

return. Net losses include the separate loss as deter-

mined under Treasury Regulations adopted for IRC

Line 9. Dividend deduction. Claim all Oregon divi-

§1502, and deductions, additions, or items of income,

dend deductions on this line. A 70 percent deduction

expense, gain, or loss for which the consolidated treat-

is allowed for qualifying dividends regardless of geo-

ment is prescribed. Attach a schedule showing compu-

graphic source. An 80 percent deduction is allowed

tation of the net loss eliminated. [ORS 317.715(2)]

for dividends received from corporations whose stock

• Net federal capital loss deduction. If the Oregon and

is owned 20 percent or more. Use the following work-

federal capital loss deductions are different, add the

federal capital loss back to income. The Oregon capital

sheet for computing the Oregon dividend deduction and

loss will be deducted after subtractions (and apportion-

include a copy with your return. (ORS 317.267)

ment for corporations required to apportion income) to

The following are also included in the Oregon dividend

arrive at Oregon taxable income. (OAR 150-317.013)

deduction calculation, if they were included in federal

• QPAI deduction. Add to federal taxable income the

amount of QPAI deduction per IRC §199 claimed on

taxable income carried to the Oregon return:

the federal return. Agricultural or horticultural coop-

• Dividends from debt financed stock, to the extent

eratives, reduce the addition by the amount passed

deductible for federal tax purposes (see IRC §246A).

through to cooperative patrons under IRC §199(d)(3)

[ORS 317.267(2)]

(A). (ORS 317.398)

• Qualified research and development credit. After

• Dividends from foreign sales corporations and

you have calculated the credit, you must add the

domestic international sales corporations, the net

amount back to your Oregon taxable income.

income of which was included on line 4. (ORS 317.283,

• REITs and RICs. A REIT or RIC meeting the federal

317.286)

affiliate definition, must be included in the consoli-

• Dividends from other corporations in this consoli-

dated Oregon return. This is an Oregon modification

dated Oregon return. Subtract 100 percent from fed-

(addition or subtraction) to federal taxable income. For

eral taxable income. [ORS 317.267(1)]

apportioning taxpayers, factors from the REIT or RIC

• IRC §78 dividends (gross-up dividends) are subtracted

are included in the apportionment calculation. (ORS

in full from federal taxable income. (ORS 317.273)

317.010 and rules)

150-102-020-1 (Rev. 10-14)

Form 20 Instructions

Instructions For Form 20 - Oregon Corporation Excise Tax - 2014 Page 12

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