Dividends received by corporation from certain other corporations
(1) To derive Oregon taxable income, there shall be added to federal taxable income amounts received as dividends from corporations deducted for federal purposes pursuant to section 243 or 245 of the Internal Revenue Code, except section 245(c) of the Internal Revenue Code, amounts paid as dividends by a public utility or telecommunications utility and deducted for federal purposes pursuant to section 247 of the Internal Revenue Code or dividends eliminated under Treasury Regulations adopted under section 1502 of the Internal Revenue Code that are paid by members of an affiliated group that are eliminated from a consolidated federal return pursuant to ORS 317.715 (Tax return of corporation in affiliated group making consolidated federal return) (2).
(2) To derive Oregon taxable income, after the modification prescribed under subsection (1) of this section, there shall be subtracted from federal taxable income an amount equal to 70 percent of dividends (determined without regard to section 78 of the Internal Revenue Code) received or deemed received from corporations if such dividends are included in federal taxable income. However:
(a) In the case of any dividend on debt-financed portfolio stock as described in section 246A of the Internal Revenue Code, the subtraction allowed under this subsection shall be reduced under the same conditions and in same amount as the dividends received deduction otherwise allowable for federal income tax purposes is reduced under section 246A of the Internal Revenue Code.
(b) In the case of any dividend received from a 20 percent owned corporation, as defined in section 243(c) of the Internal Revenue Code, this subsection shall be applied by substituting “80 percent” for “70 percent.”
(c) A dividend that is not treated as a dividend under section 243(d) or 965(c)(3) of the Internal Revenue Code may not be treated as a dividend for purposes of this subsection.
(d) If a dividends received deduction is not allowed for federal tax purposes because of section 246(a) or (c) of the Internal Revenue Code, a subtraction may not be made under this subsection for received dividends that are described in section 246(a) or (c) of the Internal Revenue Code.
(e) In the case of any dividend received from an alien, domestic or foreign insurer, as defined in ORS 731.082 (“Domestic,” “foreign,” “alien” insurer), that would be included in the taxpayer’s consolidated Oregon return but for the application of ORS 317.710 (Corporation tax return requirements) (5) or (7), this subsection shall be applied by substituting “100 percent” for “70 percent.”
(3) There shall be excluded from the sales factor of any apportionment formula employed to attribute income to this state any amount subtracted from federal taxable income under subsection (2) of this section. [1983 c.162 §13; 1984 c.1 §9; 1985 c.802 §33; 1987 c.293 §38; 1987 c.447 §119; 1987 c.911 §8i; 1989 c.625 §21; 2003 c.77 §21; 2005 c.80 §2; 2005 c.832 §33; 2013 c.707 §3; 2015 c.755 §5; 2017 c.316 §1]
Note: Section 4, chapter 316, Oregon Laws 2017, provides:
Sec. 4. The amendments to ORS 317.267 (Dividends received by corporation from certain other corporations), 317.710 (Corporation tax return requirements) and 317.715 (Tax return of corporation in affiliated group making consolidated federal return) by sections 1 to 3 of this 2017 Act apply to any tax year for which:
(1) A return is subject to audit or adjustment by the Department of Revenue on or after the effective date of this 2017 Act [October 6, 2017];
(2) A return is subject to an appeal on or after the effective date of this 2017 Act; or
(3) A claim of refund may be made on or after the effective date of this 2017 Act. [2017 c.316 §4]
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.