State R&D Tax Credits


Credit Name: Qualified Research Activities Credit

Expiration Date: Years beginning before January 1, 2018

Does it apply to C corps and pass-through entities?: Unknown

Credit Carry forward: Carry Forward 5 years, may not offset the minimum excise tax


Two calculation methods –

  • Method 1 – Credit is based on federal computation. QREs and base amount definitions follow IRC Sec. 41, for both the regular credit and the alternative simplified credit:
    1. Credit equals 5% of the QREs that exceed the base amount. The base amount is equal to a ratio of Oregon QREs to federal revenue multiplied by the taxpayer’s prior four years average revenue.
    2. Alternative Simplified credit method- Credit is 5% of the current year QREs over the base amount, which is 50% of the average of the three prior year QREs.
  • Method 2 – Credit based on Oregon Sales – The alternative credit is 5% of the QREs that exceed 10% of Oregon sales.

Other Notes: Maximum credit equals $1,000,000

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