Modification for Listed Jurisdiction Amounts Previously Included in Income; Election in Lieu of Claiming the Repatriation Tax Credit

# (1)

(1) A taxpayer may elect to claim a modification under ORS 317.038 for tax year 2017, 2018, or, when applicable, both years, to subtract listed jurisdiction income amounts included in income due to the mandatory repatriation under IRC section 965, as amended by Section 14103 of H.R. 1 (2017) (an IRC 965 repatriation), to the extent those amounts were previously included in income for tax year 2014, 2015, or 2016 pursuant to ORS 317.715(2) (2013) or ORS 317.716 (2015). The election to claim the modification is made in lieu of claiming the repatriation tax credit under section 33 of SB 1529 (2018). The election may be claimed on an original or amended tax return.

# (2)

(2)(a) A taxpayer may elect to claim a modification under section (1) of this rule or a repatriation tax credit under section 33 of SB 1529 (2018), but not both.

(b) A taxpayer who has an IRC 965 repatriation in tax years 2017 and 2018 must use the modification in both tax years if the taxpayer elected the modification described in section (1) in one tax year. The election by a taxpayer with an IRC 965 repatriation for tax years 2017 and 2018 to use the modification described in section (1) may not be changed on an amended tax return if the taxpayer's return for either one of tax years 2017 or 2018 is closed to refund or adjustment.

# (3)

(3) The modification is claimed on Schedule OR-ASC-CORP using the subtraction code prescribed by department instructions for tax year 2017 or 2018. Use of the subtraction code prescribed by department instructions on Schedule OR-ASC-CORP signifies a taxpayer's election and agreement to claim the modification in lieu of the repatriation tax credit.

# (4)

(4)The modification, if elected, affects the calculation of the amount of IRC 965 repatriation income eligible for subtraction under ORS 317.267(2) for tax years 2017 and 2018. When computing the subtraction under ORS 317.267(2) that is attributable to IRC 965 repatriation income, the repatriation income amount (upon which the dividend received subtraction percentage is applied) must be reduced by the amount of the modification.

[Publications: Contact the Oregon Department of Revenue for information about how to obtain a copy of the publication referred to or incorporated by reference in this rule pursuant to ORS 183.360(2) and ORS 183.355(1)(b).]