OR-RESEARCH: Schedule OR-RESEARCH, Research and Development for Semiconductor Companies Credit (2025)
Oregon · Oregon DOR · Used for tax years 2025
2025 Schedule OR-RESEARCH calculates Oregon’s Research and Development for Semiconductor Companies Credit using Oregon research payments and qualified research expenses. It applies the Oregon credit limitation and determines the refundable and nonrefundable portions of the credit
Who files this form
Taxpayers claiming the Research and Development for Semiconductor Companies Credit use Schedule OR-RESEARCH. For tax year 2025, include this schedule with your Oregon tax return or your credit may be denied.
What you'll need
Have the following information ready to complete the schedule:
- Your legal name as shown on your return and your FEIN or SSN, as applicable.
- Your number of Oregon employees at year-end.
- Basic Oregon research payments to qualified organizations and the base period amount.
- Qualified research expenses in Oregon for the current tax year.
- For the regular credit: your fixed-base percentage and average Oregon gross receipts.
- For the alternative simplified credit: your qualified research expenses in Oregon for the prior three tax years.
- The credit amount certified by the Oregon Business Development Department (OBDD).
The form refers to instructions for some calculations, including the refund percentage based on Oregon employees. Those instructions were not provided.
How to file
Include the completed Schedule OR-RESEARCH with your Oregon tax return. The supplied form does not give a mailing address or e-filing directions.
- Complete Part I for the regular credit, or Part II if you are electing, or previously elected and are not revoking, the alternative simplified credit.
- Include only amounts paid or incurred in Oregon in Part I or Part II.
- Complete Part III to apply the Oregon credit limitation.
- Complete Part IV to separate the refundable and nonrefundable portions.
- Report line 27 as a refundable credit and line 28 as a carryforward credit on the appropriate Oregon schedule for your filing type. The form refers to instructions for those schedules, but no instructions were provided.
Common mistakes
- Leaving out the schedule: The form warns that your credit may be denied if you do not include it with your Oregon tax return.
- Ignoring formatting requirements: Use UPPERCASE letters and blue or black ink. Print at actual size (100%). Do not submit photocopies or use staples.
- Completing both credit methods: Skip Part I if you are using the alternative simplified credit. Skip Part II if you are completing Part I.
- Including amounts outside Oregon: Parts I and II say to include only amounts paid or incurred in Oregon.
- Missing the alternative-credit note: If you did not have qualifying expenses in any of the prior three years, skip lines 16–19 and use the calculation on line 20.
Questions people ask
What limits the credit amount?
Line 23 uses the credit amount certified by OBDD or $4 million, whichever is less. Line 24 limits the research tax credit to the lesser of that amount or the calculated credit on line 22.
Is the credit refundable?
Part IV separates the credit into refundable and nonrefundable portions. The refund percentage is based on the number of Oregon employees. The supplied form does not list those percentages and refers to instructions.
What is the maximum fixed-base percentage for the regular credit?
Line 5 limits the fixed-base percentage to 16% and says to round it to four decimal places.
What if a subtraction produces a negative amount?
Lines 3, 8, 14, and 18 direct you to enter zero if the result is less than zero.