Oregon ~ Corporate Income Tax: Case Addressing Application of Business Energy Tax Credit Appealed to State Supreme Court

The Department of Revenue (DOR) has advised that it has appealed to the Oregon Supreme Court in the case of Con-Way, Inc. v. Department of Revenue, which held that a corporation was allowed to apply its business energy tax credit (BETC) against its Oregon corporation excise (income) minimum tax. According to the DOR, the previously reported Oregon Tax Court decision (TAXDAY, 2012/01/04, S.16) suggests that all corporate tax credits, unless specifically prohibited by statute, may be applied against the corporate minimum tax. The DOR stated that the Tax Court’s decision contradicts the DOR’s long-standing position that credits cannot reduce corporation excise tax below the minimum tax.

Until the appeal is final, the DOR’s position remains unchanged, i.e., taxpayers cannot use tax credits to reduce the corporate minimum tax. Taxpayers may file protective claims with the DOR to secure the right to a refund pending the Supreme Court proceedings.

Revenews, Oregon Department of Revenue, March 12, 2012

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Wolters Kluwer Tax and Accounting

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