Or. Admin. Code § 123-401-0400

Current through Register Vol. 63, No. 12, December 1, 2024

Section 123-401-0400 - Certification Process

(1) For the 2024 tax year, a taxpayer that submitted a valid registration form to the Oregon Business Development Department by December 1, 2023, and seeks to claim a Research and Development Tax Credit for Semiconductors for tax year 2024 must file a written application for certification with the department no later than October 15, 2024. For tax years 2025 through 2029, a taxpayer that seeks to claim the credit must file a written application for certification with the department no later than October 15 each calendar year for the tax year that begins or is deemed to begin in that calendar year. If the deadline falls on a Saturday or a legal holiday (per ORS 187.010), the deadline is the next business day.

(2) All eligible taxpayers, whether they file based on a calendar year, fiscal year or otherwise, must submit their application for certification to Business Oregon by the specified deadline each calendar year. An eligible taxpayer with a 52-53-week tax year that has two tax years beginning in the same calendar year should submit the application for the later tax year by the deadline in the following calendar year. (Example: An eligible taxpayer with a 52-53-week tax year has taxable years beginning Jan 1, 2025, and Dec 31, 2025. The certification application for the tax year beginning Dec 31, 2025, should be submitted by the 2026 calendar year deadline).

(3) The department provides a certification application form to taxpayers via its website. Certification application materials that the applicant must submit include the application form, along with supporting documentation, and the applicable fee.

(4) To be complete, the certification application must include, but is not limited to, the following:

(a) A description of how the taxpayer meets the definition of a qualified semiconductor company, as defined in the Act;

(b) A description of how proposed research and development activities for which the taxpayer seeks a tax credit under the Act will support the taxpayer in conducting a business or trade directly related to semiconductors;

(c) An attestation that the proposed research and development activities for which the taxpayer seeks the credit will support the taxpayer in conducting trade or business directly related to semiconductors;

(d) An attestation of the taxpayer's expected qualified research expenses and basic research payments in Oregon, each as documented in the taxpayer's documented internal financial projections, for the tax year;

(e) A report of the taxpayer's qualified research expenses and basic research payments from the three (3) preceding tax years;

(f) The amount of the potential tax credit for which the taxpayer is seeking certification;

(g) Payment of the fee required under OAR 123-401-0500; and

(h) Any other information required by the department.

(5) Certification application forms must be signed by the taxpayer or an authorized representative of the taxpayer.

(6) As part of its review of submitted materials, the department may require the taxpayer or the taxpayer's authorized representative to provide additional information.

(7) The department shall review all completed certification applications and determine the taxpayer's eligibility for certification for the Research and Development Tax Credit for Semiconductors.

(8) The department shall issue certifications to eligible taxpayers on or before November 15th of the calendar year in which the certification application is submitted.

Or. Admin. Code § 123-401-0400

OBDD 16-2024, adopt filed 07/01/2024, effective 7/1/2024

Statutory/Other Authority: ORS 285A.075

Statutes/Other Implemented: ORS 315.518 - 315.522 & Oregon Laws 2023, chapter 298, section 5