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:
- 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.
- 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