Bill > HB2117

This bill aims to enhance tax incentives for research and development activities in Oregon by making several key changes to existing tax laws. It increases the maximum research tax credit from $1 million to $2 million for corporations conducting qualified research within the state, and introduces provisions for making these credits refundable and transferable. Specifically, if a company's research tax credit exceeds its tax liability, the excess can now be refunded, and companies can transfer all or part of their unused credits to other taxpayers subject to Oregon state taxes. The bill also allows businesses to fully deduct research and development expenses in the tax year they are incurred, rather than amortizing them over five years, which provides more immediate tax relief. These changes apply to tax years beginning between January 1, 2025, and January 1, 2031, and are designed to encourage innovation and investment in research activities within Oregon by providing more flexible and generous tax treatment. The bill will take effect 91 days after the 2025 regular legislative session adjourns, giving businesses time to understand and plan for the new tax provisions.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2117