Can Companies Claim
R&D Tax Credits in Oregon?
Yes. The Oregon Research and Development Tax Credit for Semiconductors was created by the Oregon State Legislature to strengthen the state’s role as a global hub for semiconductor research and production, and to help regain America’s technological leadership in this critical industry
Effective Dates:
Applies to tax years beginning on or after January 1, 2024, and before January 1, 2030.
Credit Rate:
Roughly 15% of qualified research expenses (QREs) or basic research payments conducted in Oregon
Credit Cap:
Limited to $4 million per taxpayer, per year, with an overall statewide cap on available credits
Refundability:
Partially refundable for companies with 3,000 or fewer employees. Non-refundable amounts may be carried forward until 2029.
Certification Requirement:
Companies must apply annually to the Oregon Business Development Department (Business Oregon) for certification as a qualified semiconductor company.
Application Deadline:
For the 2024 tax year, the deadline is October 15, 2024. For subsequent years, applications are due October 15 of each calendar year.
Get More Information About the R&D Tax Credit
First enacted in 1981, the R&D Tax Credit remains one of the most valuable incentives available to U.S. businesses. Each year, it provides billions of dollars in federal and state benefits to companies engaged in qualified research activities.
The credit delivers vital cash flow that businesses can use to:
Hire and retain skilled employees
Increase investment in R&D
Expand facilities and operations
Accelerate innovation and product development
Today, thousands of companies across industries leverage the R&D Tax Credit to fuel growth and stay competitive in both domestic and global markets.
Qualifying Research Activities
The four-part test below defines what counts as qualified research activities
Purpose of the Research
The activity should develop or improve a business component, such as a product, process, software, formula, technique, or invention, by enhancing functionality, performance, reliability, or quality.
Resolving Uncertainty
The work must address technical uncertainties, such as determining the optimal design, method, or approach to achieve the desired outcome. The results should not be known in advance.
Systematic Experimentation
Eligible research must follow a structured experimentation process, including trial and error, modeling, simulation, or testing alternatives to reach the intended improvement.
Technological Basis
The activity must rely on hard sciences such as engineering, physical or biological sciences, or computer science. Artistic, social science, or routine data collection work does not qualify.
Why the R&D Tax Credit Matters ?
Since 1981, the R&D Tax Credit has helped businesses save billions in federal and state taxes. The credit enables companies to hire more staff, expand R&D, invest in facilities, and drive innovation. Thousands of businesses across multiple industries take advantage of this benefit each year.