OR-PTE-NR: Schedule OR-PTE-NR, Qualified Business Income Reduced Tax Rate for Oregon Nonresidents (2024)
Oregon · Oregon DOR · Used for tax years 2024
Schedule OR-PTE-NR is Oregon’s 2024 qualified business income reduced tax rate schedule for nonresidents. It reports qualifying business information and calculates tax on qualifying and nonqualifying income to compare the reduced-rate result with the regular tax calculation.
Who files this form
For tax year 2024, Oregon nonresidents seeking the qualified business income reduced tax rate must complete both sections of Schedule OR-PTE-NR and submit it with Oregon Form OR-40-N.
Section A covers qualifying sole proprietorships, S corporations, and partnerships. List only businesses that qualify. The form refers to instructions for more information about qualification, but those instructions were not provided.
If Section A, line 7, is zero or less, you cannot use the reduced tax rate. Return to Form OR-40-N, line 46, and complete the rest of the return.
When it's due
For tax year 2024, the form lists these deadlines for amending a return to make or revoke the reduced-rate election:
- April 15, 2025: Original return due date.
- October 15, 2025: Due date if filing an extension.
After filing your original return, you can amend to make or revoke the election only on or before the applicable deadline. If you amend after the return's due date, including extensions, you must use the tax on Section B, line 12a, even if line 13a is lower.
What you'll need
Have your Oregon Form OR-40-N 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 or NAICS code, entity type, and number of qualifying employees.
- Each qualifying business's nonpassive income or loss and Oregon PTE-E tax deducted.
- Section 179 expenses attributable to qualifying S corporations and partnerships.
- Oregon taxable income from Form OR-40-N, line 45.
- Depreciation additions from Form OR-40-N, line 30S, and depreciation subtractions from line 33S that are attributable to qualifying businesses.
Section B also refers to instructions for tax calculations, including Tax rate chart B. Those instructions were not provided.
How to file
- Complete Section A using only qualifying businesses, then calculate the total on line 7.
- If line 7 is more than zero, enter it on Section B, line 2b, and complete each applicable worksheet line.
- Enter the lesser of Section B, line 12a, or line 13a, on line 14a.
- If line 12a is lower than line 13a, enter line 14a on Form OR-40-N, line 46, and check box 46c. If line 13a is lower, enter line 14a on Form OR-40-N, line 46, and complete the rest of the return.
- Submit the original Schedule OR-PTE-NR with your Oregon Form OR-40-N. Do not submit a photocopy.
The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Submitting a photocopy: The form requires the original.
- Leaving a section unfinished or omitting the schedule: Complete both sections to qualify and include the schedule with Form OR-40-N.
- 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: The form says you cannot use it in that case.
- Entering negative amounts where prohibited: Section B, lines 3a, 5a, and 9b, must not be less than zero.
- Changing 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 are listed on this schedule?
Section A lists qualifying sole proprietorships, S corporations, and partnerships. Only qualifying businesses belong on the schedule.
What happens if my qualifying income total 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-N, line 46, and complete the rest of the form.
Does the reduced rate always result in lower tax?
No. Section B compares the tax with the reduced rate on line 12a against the tax on line 13a. If line 13a is lower, the form says using the reduced rate is not more beneficial.
Do I submit this schedule separately?
No. The form says to include Schedule OR-PTE-NR with your Oregon Form OR-40-N.