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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 3713
Sponsored by Representative RESCHKE
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act allows corporate NOLs to be carried forward to all tax years. (Flesch Read-
ability Score: 61.3).
Removes the 15-year limitation on the carryforward of net operating losses by corporate excise
taxpayers. Limits the net operation loss deduction to 95 percent of taxable income in a tax year.
Applies to the determination of Oregon taxable income for all tax years beginning on or after
January 1, 2026, and to net losses arising in tax years beginning on or after January 1, 2010.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to tax treatment of net losses; creating new provisions; amending ORS 317.476; and pre-
scribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 317.476 is amended to read:
317.476. (1) In computing Oregon taxable income there shall be allowed as a deduction an
amount equal to the aggregate of the Oregon net losses of prior years to the extent provided in this
section.
(2) As used in this section, “Oregon net loss” means Oregon net loss as defined in ORS 317.010
(9).
(3) In computing Oregon net loss for any [taxable] tax year the Oregon net loss for a prior year
[shall] may not be allowed as a deduction.
(4)(a) The Oregon net loss in any [taxable] tax year shall be allowed as a deduction in any [of
the 15 succeeding taxable years] succeeding tax year.
(b) The amount of the Oregon net loss deductible in any [taxable] tax year shall be the Oregon
net loss of a prior year reduced by the net income (computed without the Oregon net loss deduction)
of any intervening [taxable] tax year or years between the year of loss and the succeeding
[taxable] tax year in which the Oregon net loss deduction is claimed, but may not exceed 95 per-
cent of taxable income for the tax year prior to the calculation under this subsection .
(c) The Oregon net loss of the earliest [taxable] tax year shall be exhausted before an Oregon
net loss from a later year may be deducted.
(5) [No deduction shall be allowed under this section] A deduction under this section is not
allowed to a business trust which qualifies as a “real estate investment trust” under sections 856,
857 and 858 of the Internal Revenue Code.
SECTION 2.Notwithstanding ORS 315.037, the amendments to ORS 317.476 by section 1
of this 2025 Act apply to the determination of Oregon taxable income in all tax years begin-
ning on or after January 1, 2026, and to net losses arising in tax years beginning on or after
January 1, 2010.
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 4265 HB3713
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SECTION 3. This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
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