OR-LTEZ: Schedule OR-LTEZ, Long-term Enterprise Zone Facilities Credit (2025)
Oregon · Oregon DOR · Used for tax years 2025
Schedule OR-LTEZ calculates Oregon’s Long-Term Enterprise Zone Facilities Credit. It reports payroll and employee benefit costs at a qualifying facility, the share of tax attributable to the facility, and the allowable credit.
Who files this form
Use Schedule OR-LTEZ to claim the Long-Term Enterprise Zone Facilities Credit with your 2025 Oregon corporation or insurance tax return. The form says to include this schedule with that return.
The form refers to a qualifying enterprise zone facility but does not explain the full eligibility requirements.
What you'll need
Have the following information available to complete the schedule:
- Corporation legal name as shown on your Oregon return and federal employer identification number (FEIN).
- Year the qualifying facility was placed in service and first tax year the credit was claimed.
- Number of full-time employees working at the qualifying facility during 2025.
- Payroll and employee benefit costs at the facility, plus total Oregon excise tax.
- County population and, if applicable, the facility’s distance from Interstate 5 for the tax credit threshold calculation.
If you have other Oregon income or operations, you may also need the facility’s and Oregon’s net income, compensation, or property book values, depending on the calculation that applies.
How to file
Include the completed Schedule OR-LTEZ with your Oregon corporation or insurance tax return.
Submit the original form, not a photocopy. The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Submitting a photocopy: The form specifically says to submit the original form, not a photocopy.
- Leaving the schedule out of your return: The form says to include it with your Oregon corporation or insurance tax return.
Questions people ask
How is the tentative credit calculated?
Multiply payroll and employee benefit costs at the qualifying enterprise zone facility by 62.5%. Enter the result on line 3.
How is the tax credit threshold determined?
Line 6 is the smaller of $1,000,000 or the applicable employee-based amount on line 5b. Line 5b lists $10,000 per full-time employee for a county with a population of 10,000 or less; $12,500 for a county with a population of 40,000 or less; or $15,000 for a county with a population over 40,000 when the facility is at least 10 miles from Interstate 5. If there is no amount on line 5b, enter $1,000,000 on line 6.
What if the facility provides all my Oregon income?
Enter 100% on line 8 if income from the qualifying facility is your only Oregon income. Otherwise, the form directs you to line 9 or 11.
How much credit is allowable?
Line 15 is the smaller of the tentative credit on line 3 or the qualified tax liability available for offset on line 14. Line 14 is line 7 multiplied by the applicable percentage on line 13.