HB 3713
Removes the 15-year limitation on the carryforward of net operating losses by corporate excise taxpayers.
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Sign in to take action- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill removes a 15-year limit on businesses’ ability to carry forward net operating losses (NOLs) for tax purposes. Currently, corporate excise taxpayers could only use NOLs to offset income for 15 years. This bill expands that timeframe, allowing NOLs to be carried forward indefinitely, but limits the deduction to 95% of taxable income in the year the loss is applied. The changes apply to Oregon taxable income beginning January 1, 2026, and to losses arising in tax years beginning January 1, 2010.
Key provisions
- Removes the 15-year limit on NOL carryforward.
- Allows NOLs to be carried forward indefinitely.
- Limits NOL deduction to 95% of taxable income in the year of application.
- Applies to Oregon taxable income beginning January 1, 2026.
- Applies to net losses arising in tax years beginning January 1, 2010.
- Specifies that the earliest NOL must be exhausted before later losses can be deducted.
- Excludes business trusts that qualify as real estate investment trusts from NOL deductions.
Who is affected
- Corporate excise taxpayers
- Businesses
- Taxpayers
Notable changes
- Expands the carryforward period for net operating losses from 15 years to indefinite.
- Introduces a limitation on the amount of NOLs that can be deducted in any given year (95% of taxable income).
Sponsors
Official sponsors from legislative records.
Primary sponsor
E. Werner Reschke
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