If you are going to start a new business in the state of Oregon, you should look for sources of business tax credits for Oregon companies. These credits are available not only when starting a new business, but also when expanding an existing business. Here is some information to help you get tax credits for companies in Oregon.
The government of the state of Oregon is very concerned about the environment. If you are planning to invest in any business that helps the environment, then the Oregon Department of Energy is ready to provide financial assistance. This benefit is known as the Business Energy Tax Credit. If you invest in environment friendly projects such as recycling, energy conservation, less polluting fuels for transportation and renewable energy resources, you may qualify for this tax credit.
To find out how much tax credit you can get, you have to calculate the eligible project cost. The eligible project cost is the amount of money you have invested to make the project environment friendly, over and above the amount that would have otherwise been invested. You can use 35% of this amount as the tax credit over a five-year period. Here is the annual break-down of how to use the tax credit:
First year 10%
Second year 10%
Third year 5%
Fourth year 5%
Fifth year 5%
The unused tax credit can be transported forward each year up to a maximum of eight years. You also have the option of using the entire tax credit in the first year if the cost of the project does not exceed $ 20,000.
Another business credit for Oregon companies is the pollution control facilities tax credit. The Oregon Department of Environmental Quality provides this tax credit to anyone who is a taxpayer, not just a business. As a business, however, you can use this credit to pay less tax by making business assets such as building, factories and other structures more environmentally friendly by controlling the pollution that they put out.