Are R&D Tax Credits Available in Oregon?

Are R&D Tax Credits Available in Oregon?

Yes. The Research and Development Tax Credit for Semiconductors was passed by the Oregon State Legislature to recognize and further the contributions of the semiconductor industry to regional and national economies.

• As a global center for semiconductor research & development, many Oregon companies play a critical role in regaining America’s technological leadership in the production of semiconductors.
• The Research and Development Tax Credit for Semiconductors is intended to build on Oregon’s strengths by recognizing and furthering the contributions of this industry to the economy.
• The credit applies to tax years beginning on or after January 1, 2024, and before January 1, 2030.
• The R&D Tax Credit offers eligible companies roughly 15% in tax credits for qualified research expenses or basic research payments in Oregon.
• The credit is limited to $4 million per taxpayer, per year.
• The credit is available through tax year 2029 with a cap on the total credit available each year.
• The R&D Tax Credit is partially refundable for companies with 3,000 employees or fewer, and non-refundable amounts may be carried forward until 2029.
• Certification Requirement: Oregon has a certification requirement. Taxpayers must apply annually to the Oregon Business Development Department (Business Oregon) for certification as a qualified semiconductor company.
• Application Deadline: For the 2024 tax year, applications must be submitted by October 15, 2024. For subsequent years, the deadline is October 15 of each calendar year.