Oregon Enacts Qualified Business Income Addition, Grant Credit

Oregon has enacted income tax legislation creating:

  • an addition to federal taxable income for the amount of deductions allowed under IRC Sec. 199A(a); and
  • a credit for Opportunity Grant contributions.

199A Addition

The federal Tax Cuts and Jobs Act created a deduction generally equal to 20% of a pass through’s qualified business income. Oregon generally conforms to the IRC. Requiring an addition for the IRC Sec. 199A deduction means Oregon will not be conforming with this deduction.

The addition will apply to tax years beginning after 2017.

Opportunity Grant Credit

The Oregon Opportunity Grant is a need-based grant program for college students. Personal or corporate (excise) income taxpayers that make certified Opportunity Grant contributions to the fund are eligible for a credit.

The Department of Revenue will conduct an auction of available tax credits. No more than $14 million a year can be certified for tax credits. Unused portions of the tax credit can be carried forward up to three succeeding tax years.

The tax credit is available after 2017 and through December 31, 2023.

Ch. 108 (S.B. 1528), Laws 2018, effective on the 91st day following adjournment of the 2018 legislative session

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CCHTaxGroup

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