OR-PTE-FY: Schedule OR-PTE-FY, Qualified Business Income Reduced Tax Rate Schedule for Oregon Full-year Residents (2024)
Oregon · Oregon DOR · Used for tax years 2024
Schedule OR-PTE-FY is Oregon’s qualified business income reduced tax rate schedule for full-year residents. It reports qualifying business information and calculates tax on qualifying and nonqualifying income to compare with tax calculated without the reduced rate.
Who files this form
Schedule OR-PTE-FY is for Oregon full-year residents claiming the qualified business income reduced tax rate for 2024.
To qualify, you must complete both sections and submit the schedule with Oregon Form OR-40. Section A covers qualifying sole proprietorships, S corporations, and partnerships. List only businesses that qualify.
If Section A, line 7, is zero or less, you cannot use the reduced tax rate.
When it's due
For tax year 2024, the form lists these deadlines for amending your return to make or revoke the reduced-rate election after filing your original return:
- April 15, 2025: Original return due date.
- October 15, 2025: Due date if filing an extension.
After the return due date, including extensions, an amended return must use the tax on Section B, line 12a, even if line 13a is less.
What you'll need
Have your Oregon Form OR-40 and the following information ready:
- Your name and Social Security number, plus your spouse’s information if filing jointly.
- Each qualifying business’s name, FEIN, business code or NAICS code, entity type, and number of qualifying employees.
- Each qualifying business’s nonpassive income or loss, Section 179 expense, and Oregon PTE-E tax deducted.
- Oregon taxable income from Form OR-40, line 19.
- Depreciation additions and subtractions attributable to qualifying businesses from Form OR-40, lines 8 and 13.
How to file
Submit the original Schedule OR-PTE-FY with your Oregon Form OR-40. Do not submit a photocopy.
Complete Section A to determine whether you qualify. If line 7 is greater than zero, carry that amount to Section B, line 2b, and complete each applicable worksheet line.
Enter the smaller of Section B, lines 12a and 13a, on line 14a. If line 12a is less than line 13a, enter line 14a on Form OR-40, line 20, and check box 20c. If line 13a is less, enter line 14a on Form OR-40, line 20, and complete the rest of the return.
Common mistakes
- Submitting a photocopy: The form requires the original.
- Leaving out a section or the schedule: Complete both sections to qualify and include the schedule with Form OR-40.
- Listing businesses that do not qualify: Section A says to list only qualifying businesses.
- Using the reduced rate when Section A, line 7, is zero or less: Instead, return to Form OR-40, line 20, and complete the rest of that form.
- Entering negative amounts where prohibited: Section B, lines 3a, 5a, and 9b, cannot be less than zero.
- Trying to change the election too late: You cannot amend to make or revoke the election after the applicable return due date.
Questions people ask
Which business types are listed on this schedule?
Section A lists qualifying sole proprietorships, S corporations, and partnerships, using entity codes SP, SC, and P.
What if Section A, line 7, is zero or less?
You cannot use the reduced tax rate. Return to Form OR-40, line 20, and complete the rest of the form.
Does the reduced rate always produce a lower tax?
No. The form says that if Section B, line 13a, is less than line 12a, using the reduced rate is not more beneficial.
Which tax rate chart does the worksheet require for qualifying income?
Section B, line 11b, directs you to use Tax rate chart B in the instructions to calculate tax on the qualifying income from line 9b.