Research and Development Tax Credit Rulemaking Begins
By Oregon Business & Industry
In 2023, the Legislature passed HB 2009, which created a research and development tax available to Oregon-based semiconductor industry manufacturers. This credit will be an important tool to enhance Oregon’s semiconductor footing in the short run. In 2025, OBI will be leading the effort to increase the size of the credit and expand eligibility to all Oregon manufacturers. That’s why OBI is closely watching the process by which the state’s economic development agency, Business Oregon, is developing and rolling out the credit. In adopting rules for this credit, Business Oregon must minimize bureaucratic hurdles for its use. While it’s positive that Oregon now has this tool, so does almost every competitor state. If Oregon’s modest R&D credit is much harder to use than other states’ versions, Oregon will risk losing research opportunities and investments. OBI is advocating for reasonable rulemaking and will support technical legislation in 2025 to simplify the credit structure.
Disclaimer: Articles featured on Oregon Report are the creation, responsibility and opinion of the authoring individual or organization which is featured at the top of every article.