Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for Oregon.

April 6, 2026

Oregon Extends PTE-E Tax and Updates Key Tax Provisions

Authored by: Brian Meier, MSA and Courtney Easterday, MSA

Oregon recently enacted omnibus legislation that continues the state’s pass-through entity elective (PTE-E) tax and corresponding credit through the 2027 tax year, providing ongoing relief for eligible owners navigating the federal SALT deduction cap. The legislation also introduces administrative flexibility by allowing pass-through entities to apply tax overpayments toward future estimated tax installments. In addition, Oregon updated its income tax statutes to conform with federal terminology by replacing references to global intangible low-taxed income (GILTI) with the newer concept of net controlled foreign corporation tested income.

Beyond the PTE-E extension, the bill makes several notable policy adjustments across Oregon’s tax code. These include aligning portions of the earned income tax credit statute with the credit’s extended sunset date, broadening the scope of the certified film production development contribution credit to include commercials, and extending the property tax exemption for cargo containers through the early 2030s. Collectively, these changes reflect the state’s efforts to modernize its tax laws while providing continued incentives and tax certainty for businesses and individuals.

If you have questions about how Oregon’s tax changes may affect your business or personal taxes, please contact a member of the Withum SALT Team.

May 13, 2025

Oregon Courts Amends, Restates Microsoft Opinion on Reconsideration

Authored by: Courtney Easterday, MSA and Joe Petrucci

The Oregon Tax Court reaffirmed its prior ruling in Microsoft Corporation v. Department of Revenue that the 20% Subpart F repatriation amount must be included in the denominator of the Oregon sales factor when paid by a controlled foreign corporation (CFC) engaged in a unitary business with a water’s edge group sharing the same primary business activity. The court rejected Microsoft’s additional claims, finding that the assessment fairly represented the taxpayer’s business activity in Oregon and that Microsoft failed to prove entitlement to factor relief or any constitutional violations.

If you have questions about apportionment issues tied to IRC conformity, please reach out Withum SALT Team.

January 30, 2025

Oregon Releases Voluntary Self-Identification Form

Authored by: Jessie Racioppi and Penny Sweeting, CPA

Beginning tax year 2024, Oregon taxpayers will be allowed to voluntarily disclose their race and ethnicity on new Form OR-VSI. The voluntary self-identification program is a response to the 2023 legislation (Senate Bill 1) that allows taxpayers to provide their race and ethnicity when they file their personal income tax returns. Taxpayers can file Form OR-VSI with their tax returns or they can choose to opt out of the program. No form is required for a taxpayer to opt out of the disclosure. The information provided will be compiled annually to assist lawmakers with ensuring equity in the tax policy.

If you have questions about state tax compliance, please reach out to a member of the Withum SALT Team.

October 11, 2024

Oregon – Subpart F Income May Require Sales Factor Denominator Representation

Authored by: Katerine Velasquez and Penny Sweeting, CPA

On September 24, 2024, the Oregon tax court considered the 20% Subpart F repatriation included in state taxable income, which may need to be included in the denominator of the Oregon sales factor under OR. Rev. Stat. 314.665(6). Denominator representation for the 20% Subpart F inclusion is required when the payor is a controlled foreign corporation (CFC) involved in a unitary business with a water’s edge group. A unitary relationship is proved by the CFC and the water’s edge group engaging in similar and/or related lines of business.

If you have questions about how states treat Subpart F income, please reach out to a member of the Withum SALT Team.

Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.