(1) Except as provided in ORS § 314.766 (5)(b), the tax credits allowed or allowable to a C corporation for purposes of ORS Chapter 317 or 318 shall not be allowed to an S corporation. The business tax credits allowed or allowable for purposes of ORS Chapter 316 shall be allowed or are allowable to the shareholders of the S corporation.

Terms Used In Oregon Statutes 314.772

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Dependent: A person dependent for support upon another.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.

(2) In determining the tax imposed under ORS Chapter 316, as provided under ORS § 314.763, on income of the shareholder of an S corporation, there shall be taken into account the shareholder’s pro rata share of business tax credit (or item thereof) that would be allowed to the corporation (but for subsection (1) of this section) or recapture or recovery thereof. The credit (or item thereof), recapture or recovery shall be passed through to shareholders in pro rata shares as determined in the manner prescribed under section 1377(a) of the Internal Revenue Code.

(3) The character of any item included in a shareholder’s pro rata share under subsection (2) of this section shall be determined as if such item were realized directly from the source from which realized by the corporation, or incurred in the same manner as incurred by the corporation.

(4) If the shareholder is a nonresident and there is a requirement applicable for the business tax credit that in the case of a nonresident the credit be allowed in the proportion provided in ORS § 316.117, then that provision shall apply to the nonresident shareholder.

(5) As used in this section, ‘business tax credit’ means the following credits: ORS § 315.104 (forestation and reforestation), ORS § 315.124 (small forest option), ORS § 315.133 (agricultural overtime pay), ORS § 315.138 (fish screening, by-pass devices, fishways), ORS § 315.141 (biomass production for biofuel), ORS § 315.156 (crop gleaning), ORS § 315.164 and 315.169 (agriculture workforce housing), ORS § 315.176 (bovine manure), ORS § 315.204 (dependent care assistance), ORS § 315.208 (dependent care facilities), ORS § 315.213 (contributions for child care), ORS § 315.237 (employee and dependent scholarships), ORS § 315.271 (individual development accounts), ORS § 315.283 (affordable housing sales), ORS § 315.304 (pollution control facility), ORS § 315.326 (renewable energy development contributions), ORS § 315.331 (energy conservation projects), ORS § 315.336 (transportation projects), ORS § 315.341 (renewable energy resource equipment manufacturing facilities), ORS § 315.354 and 469B.151 (energy conservation facilities), ORS § 315.506 (tribal taxes on reservation enterprise zones and reservation partnership zones), ORS § 315.507 (electronic commerce), ORS § 315.514 (film production development contributions), ORS § 315.518 (semiconductors), ORS § 315.523 (employee training programs), ORS § 315.533 (low income community jobs initiative), ORS § 315.593 (short line railroads), ORS § 315.640 (university venture development funds), ORS § 315.643 (Opportunity Grant Fund contributions), ORS § 315.675 (Trust for Cultural Development Account contributions), ORS § 317.097 (loans for affordable housing), ORS § 317.124 (long term enterprise zone facilities), ORS § 317.147 (loans for agriculture workforce housing), ORS § 317.152 (qualified research expenses) and ORS § 317.154 (alternative qualified research expenses) and section 9, chapter 774, Oregon Laws 2013 (alternative fuel vehicle contributions). [Formerly 314.752; 2022 c.34 § 11; 2022 c.115 § 15; 2023 c.298 § 11; 2023 c.490 § 23]

 

PASS-THROUGH ENTITIES

 

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