OR-PTE-FY: Schedule OR-PTE-FY, Qualified Business Income Reduced Tax Rate Schedule for Oregon Full-year Residents (2025)
Oregon · Oregon DOR · Used for tax years 2025
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, comparing the result with tax calculated without the reduced rate.
Who files this form
Schedule OR-PTE-FY is for Oregon full-year residents seeking the qualified business income reduced tax rate for 2025.
To qualify for the reduced rate, you must complete both sections and submit the schedule with Oregon Form OR-40. Section A lists qualifying sole proprietorships, S corporations, and partnerships. Only list businesses that qualify.
If Section A, line 7, is zero or less, you cannot use the reduced tax rate. The form refers to instructions for more information about business eligibility, but those instructions are not provided here.
When it's due
For tax year 2025, the form lists these deadlines for amending a filed return to make or revoke the reduced-rate election:
- April 15, 2026: The original return due date.
- October 15, 2026: The deadline if filing an extension.
You cannot amend to make or revoke the election after the applicable deadline. If you amend after the return due date, including extensions, you must use the tax on Section B, line 12a, even if line 13a is less.
What you'll need
Have Oregon Form OR-40 available. The schedule uses taxable income from line 19 and any depreciation additions or subtractions attributable to qualifying businesses from lines 8 and 13.
You will also need:
- Your name and Social Security number, plus your spouse’s information if filing jointly.
- Each qualifying business’s name, FEIN, business or NAICS code, and entity type.
- Each business’s number of qualifying employees, nonpassive income or loss, Section 179 expense, and Oregon PTE-E tax deducted.
Submit the original Schedule OR-PTE-FY, not a photocopy.
How to file
Complete Section A to determine whether you qualify, then complete each applicable line in Section B to determine your tax.
Include the original Schedule OR-PTE-FY with your Oregon Form OR-40. Do not submit a photocopy.
If Section B, 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 than line 12a, enter line 14a on Form OR-40, line 20, and complete the rest of the return.
The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Submitting a photocopy: The form requires the original schedule.
- Leaving out a section or the schedule itself: To qualify, complete both sections 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: In that case, return to Form OR-40, line 20, and complete the rest of the form.
- Entering negative amounts where prohibited: Section B, lines 3a, 5a, and 9b, must not be less than zero.
- Trying to change the election after the amendment deadline: The form limits when you may amend to make or revoke the election.
Questions people ask
Which business types can I list?
Section A allows qualifying sole proprietorships (SP), S corporations (SC), and partnerships (P). Only list businesses that qualify.
What if my total qualifying income is zero or negative?
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 lower my tax?
No. Section B compares the total tax using the reduced rate on line 12a with the tax on line 13a. If line 13a is less, the form says using the reduced rate is not more beneficial.
Do I need to attach this schedule to my return?
Yes. The form requires you to include Schedule OR-PTE-FY with Oregon Form OR-40 and submit the original, not a photocopy.
Can I change my election after filing?
For tax year 2025, you may amend to make or revoke the election only on or before April 15, 2026, or October 15, 2026, if filing an extension. If you amend after the applicable due date, you must use Section B, line 12a, even if line 13a is less.