Oregon Enacts Legislation in Response to Federal Tax Reform   

Scott Schiefelbein is a managing director in Deloitte Tax LLP’s Washington National Tax Multistate practice.
In this article, the author provides an overview of two bills enacted by the Oregon Legislature and signed by Governor Kate Brown that respond to federal tax reform legislation, as well as some related taxpayer considerations.

This article does not constitute tax, legal, or other advice from Deloitte, which assumes no responsibility regarding assessing or advising the reader about tax, legal, or other consequences arising from the reader’s particular situation.

Copyright 2018 Deloitte Development LLC. All rights reserved.

Introduction – Federal Tax Reform Legislation Imposes Changes on Oregon Taxes

On December 22, 2017, President Trump signed the federal tax reform bill[1] (P.L. 115-97, or “the Act”), which is the most comprehensive tax reform legislation passed in over thirty years.  The Act lowers tax rates on individuals, C corporations, passthrough entities[2] and estates as well as moving the United States toward a territorial-style system for taxing foreign-source income of domestic multinational corporations.  To offset these costs, a number of deductions, credits and incentives were reduced or eliminated.

Oregon’s Conformity to the Internal Revenue Code and the Act

While the Act’s changes only amended federal tax statutes, those changes have had a considerable impact on Oregon’s tax law and the law of numerous other states.  Oregon, like many states, utilizes the Internal Revenue Code (IRC) as the foundation for calculating taxable income for corporate and personal income tax purposes.  Oregon does so on a “rolling conformity” basis with regard to the definition of taxable income by conforming to the corresponding provisions of the IRC in effect for the tax year of the taxpayer.[3]  In other words, as changes are made to the definition of federal taxable income in the IRC (e.g., amounts included in income, deductions, etc.), Oregon generally adopts those provisions absent specific legislation disconnecting from a specific federal provision.[4]

As a rolling conformity state, Oregon faced the task of measuring the corresponding state budget impact of conformity to these changes.  While the Act is projected to reduce federal revenues for the federal budget by $1.5 trillion over 10 years, Oregon is required to run a balanced budget.[5]  Accordingly, the Oregon government needed to assess whether Oregon’s conformity to these changes would result in a budget deficit.[6]

The Oregon Legislature engaged in an active debate of tax policy during the “short session” of the 2018 Legislature.[7]  This article analyzes two of the relevant bills – S.B. 1528[8] and S.B. 1529[9] – that were enacted and how these changes may affect Oregon taxpayers.

S.B. 1528 – Pass-through entities and a new tax credit

The 199A Deduction for QBI of Pass-through Entities

The Act created a new deduction under IRC Section 199A for pass-through businesses equal to 20 percent of the entity’s “qualified business income” (QBI).[10]  This deduction applies to tax years that begin after December 31, 2017 and expires for tax years beginning after December 31, 2025.  The deduction is limited to taxpayers other than corporations (e.g., individuals, estates, and trusts).

The QBI deduction is generally taken at the partner/owner level and applies against taxable income rather than adjusted gross income.  This is an important distinction for many taxpayers at the state level because many states use adjusted gross income as the starting point for calculating income for personal income tax purposes.  Oregon, however, is one of a handful of states that uses “federal taxable income” as the starting point for calculating taxable income for personal income tax purposes.[11]  Accordingly, as a rolling conformity state, Oregon automatically conformed to the new IRC Section 199A deduction, which was projected by the Oregon Legislative Revenue Office to significantly reduce Oregon tax revenues.[12]

To some observers, the federal enactment of a QBI deduction is similar conceptually to Oregon’s 2014 passage of a reduced personal income tax rate for “nonpassive income” earned by partnerships and S corporations where the owners of the pass-through entity met specific requirements, such as “materially participating” in the day-to-day operations of the trade or business of the pass-through entity.[13]  This reduced rate went into effect in Oregon for tax years beginning on or after January 1, 2015.[14]

Not surprisingly, S.B. 1528 requires taxpayers subject to Oregon’s personal income tax, starting in the 2018 tax year, to add back any QBI deduction claimed for federal purposes.[15]

The New Opportunity Grant Fund Credit

While the Act may have been scored as a $1.5 trillion reduction in federal revenues over the next ten years, the Act contains several provisions that are projected to raise federal revenues.  One of these provisions is the cap on the personal income tax deduction for state and local taxes.  For tax years 2018 through 2025, married individuals filing joint federal income tax returns may only claim a maximum of $10,000 of state and local taxes as a deduction on their federal income tax returns.[16]

The Act does not impose a cap on the amount of charitable contributions that may be claimed as tax deductions for federal personal income tax purposes.

It is anticipated that many personal income taxpayers in Oregon (as well in many other states) will have their state and local tax deduction cut off at $10,000, thereby causing a significant portion of their state and local taxes to be non-deductible.

The Oregon Legislature sought to address this through S.B. 1528’s enactment of a new tax credit.  Effective for tax years beginning on or after January 1, 2018, and before January 1, 2024, S.B. 1528 creates a credit against Oregon personal and corporate income taxes for contributions to a new Opportunity Grant Fund (the Fund).[17]  The Oregon Department of Revenue will conduct an auction of tax credits with a reserve amount of at least 95 percent of the total amount of the tax credit.[18]  Amounts received by the Department will be deposited into the Fund.[19]  Taxpayers who make contributions to the Fund through this auction will receive written certification of the amount of the tax credit.[20]  The total amount of the certified tax credits will be capped at $14 million.[21]

The tax credit is not refundable and unused credits may be carried forward for up to three years.[22]  If the amount of the certified tax credit is allowed as a charitable contribution deduction for federal income tax purposes, then the taxpayer must add back the amount of the contribution when calculating Oregon taxable income.[23]

This credit represents an effort to allow Oregon taxpayers effectively to convert a tax payment into a charitable contribution deduction.  Consider a married couple subject to Oregon personal income taxes who otherwise makes $12,000 of state and local tax payments in the 2018 tax year, of which at least $2,000 represents payment of Oregon individual income taxes.  On their 2018 federal income tax return, the couple would only be able to deduct $10,000 of those payments, rendering $2,000 of those payments nondeductible.  However, if that couple were to make a $2,000 contribution to the Opportunity Grant Fund in 2018, the couple could receive a $2,000 Oregon personal income tax credit certificate that could be used in 2018.  Upon receipt of a tax credit certificate from the state, the couple could claim the credit on their 2018 Oregon tax return, effectively reducing their state and local tax payments to $10,000.[24]  By claiming the $2,000 as a charitable contribution for federal purposes, the couple would claim $12,000 in deductions for contributions to Oregon – $10,000 in taxes and $2,000 in charitable contributions – notwithstanding the $10,000 federal cap on the deduction for state and local tax payments.

Taxpayers should cautiously and closely analyze the proprieties of seeking Oregon tax credits and claiming federal charitable contribution deductions in exchange for contributions to the Fund.  On May 23, 2018, the IRS issued Notice 2018-54, “Guidance on Certain Payments Made in Exchange for State and Local Tax Credits” (the Notice).  In the Notice, the IRS announced that it is aware of state governments adopting tax credit programs that would effectively convert state tax payments into charitable contributions. The Notice makes clear the IRS’s intent to draft proposed regulations that will clarify that federal tax law – and its substance over form principles – will govern whether these contributions to states in exchange for state tax credits can qualify as deductible charitable contributions.  Taxpayers should carefully analyze any proposed or final regulations that result from this effort before claiming a charitable contribution deduction on their federal income tax returns for contributions to the Oregon Opportunity Grant Fund.

S.B. 1529 – Oregon responds to the Act’s provisions affecting multinational taxpayers

While S.B. 1528 focused primarily on non-corporate, domestic taxpayers, the most notable provisions of S.B. 1529 focus on Oregon’s tax treatment of multinational businesses as the Act contained several significant new provisions for multinationals.

Transition tax on the deemed repatriation of deferred foreign income under IRC Section 965

For many taxpayers, the provision in the Act that drew the most immediate attention was the creation of new provisions in IRC Section 965 that create a “deemed redistribution” of foreign earnings and profits of certain foreign corporations.[25]  This is a complex calculation that has five core elements:

  1. S. taxpayers who own stock in specified foreign corporations (e.g., a foreign corporation that is a CFC or has a 10% domestic corporate owner) must pay a tax on the foreign corporations’ earnings that have not yet been subjected to U.S. federal income tax – even if the cash is not repatriated to the United States;
  2. The tax base is the foreign corporation’s accumulated deferred foreign income earned since 1986 as measured using the greater of two calculations, the first as of November 2, 2017, and the second as of December 31, 2017;
  3. The tax rate is either 15.5% or 8%, depending on whether the deferred foreign income is currently held as cash or cash equivalents (15.5%) or in another form (8%);
  4. The reduced tax rate is achieved through a complex deduction (the “participation exemption”), contained in new IRC Section 965(c), whereby the taxpayer subtracts the amount necessary to reduce the taxable amount of deferred foreign income to get to the intended 15.5% and 8% effective tax rates while using the “regular” corporate income tax rate[26]; and
  5. The tax applies to the last taxable year of the specified foreign corporation that begins before January 1, 2018.[27]

The overall federal goal of IRC Section 965 is straightforward.  Under IRC Section 965, taxpayers will pay a one-time reduced federal tax on previously untaxed income.  Once that federal tax is paid, the taxpayers may repatriate the cash back to the United States as a dividend and do so without incurring any additional federal income tax liability.  Accordingly, IRC Section 965 eliminates the lock-out effect for these foreign profits.

Oregon and IRC Section 965

As a rolling conformity state, Oregon automatically conforms to IRC Section 965, including both the addition of deferred foreign income to taxable income as well as the participation exemption under IRC Section 965(c).

However, the Oregon Legislature determined that it was necessary to disconnect from the participation exemption.  This determination was made based on the Legislature’s understanding that the deemed repatriation will be considered “Subpart F income.”[28]  Generally speaking, Subpart F income is income of CFCs that cannot be deferred from U.S. taxation – it is effectively a deemed dividend for the U.S. shareholder of the CFC that generates Subpart F income.  Oregon, like many states, treats Subpart F income as a “deemed dividend” that is subject to Oregon’s dividend-received deduction (DRD).[29]

The Oregon Legislature was concerned that there may be “double-dipping” by taxpayers relative to the application of the Oregon DRD as well the IRC Section 965(c) deduction.  While Oregon requires taxpayers generally to add back any federal DRD taken before claiming the Oregon DRD, the IRC Section 965(c) deduction is not a DRD for federal purposes.[30]  Accordingly, an Oregon taxpayer could arguably claim an Oregon DRD on the gross inclusion of deferred income under IRC Section 965(a) and also claim the participation exemption under IRC Section 965(c).  By doing so, an Oregon taxpayer could potentially deduct for Oregon purposes substantially more than 100% of the amount added to taxable income under IRC Section 965(a).  The Oregon Legislature determined that it would be prudent tax policy to require Oregon taxpayers to add back the federal participation exemption, and as a result S.B. 1529 now includes that add-back requirement.[31]

It should be noted that Oregon retains the provisions of IRC Section 965 characterizing actual distributions of foreign E&P that had been taxed under IRC Section 965 as tax-free previously-taxed income.  Accordingly, Oregon will not tax actual distributions of foreign E&P that Oregon already taxed through its conformity to IRC Section 965.

Oregon taxpayers should also be aware of the unusual federal income tax reporting mechanism for the deemed repatriation of foreign earnings and profits.  On March 13, 2018, the IRS published guidance instructing taxpayers how to report this taxable income on their 2017 tax returns.[32]  This detailed guidance provides that these taxable income amounts must be reported on a separate statement to be attached to the federal income tax return (the “IRC Section 965 Transition Tax Statement”) and, accordingly, these amounts will not be reported on Page 1 of the federal Form 1120.

While the Oregon Department of Revenue is not expected to update the 2017 Oregon corporate income tax return forms and instructions in time to reflect Oregon’s conformity to IRC Section 965, the Department has published specific instructions for Oregon taxpayers on how to report this income on their 2017 Oregon tax returns. [33]  The instructions state:

SB 1529 requires that the gross amount of the IRC 965 inclusion be included in Oregon taxable income. Compute this addition by adding to federal taxable income the amount included on Line 1 of your IRC 965 Transition Tax Statement. Include this addition on Schedule OR-ASC-CORP, using code 184. Include a copy of your federal IRC 965 Transition Tax Statement with your Oregon return.

Oregon requires add-back of new federal DRD under IRC Section 245A

The add-back of the deemed repatriation under IRC Section 965 is broadly worded to apply to amounts deducted under the Act, “deemed or otherwise.”[34]  This extends the Oregon add-back of federal dividends to foreign dividends paid in 2018 forward.  As part of a transition to what is often called a “territorial” tax system[35], the Act generally provides that for distributions made after December 31, 2017, distributions made from foreign corporations that are at least 10% owned shall be fully deductible from federal taxable income.[36]  Oregon will require that amounts deducted under this new federal DRD must be added back to taxable income and then will be subject to the Oregon DRD.[37]

S.B. 1529 requires Oregon to study GILTI

The Act did not adopt a pure territorial system.  The Act included a new IRC Section – 951A – that will require many taxpayers to calculate annually how much of their CFCs’ income is subject to U.S. federal income taxation.[38]  This new section imposes federal income tax on a taxpayer’s “global intangible low-taxed income,” or “GILTI.”  The calculation of GILTI is complex and beyond the scope of this article though it is worth noting that the reference to “intangible” is somewhat misleading as the income subject to current U.S. taxation is not limited to income from intangibles:  U.S. taxpayers that own 10% or more of the stock of CFCs must perform an annual tax calculation to determine their taxable share of the GILTI earned by the CFCs, which may be income from manufacturing, retail, or a number of other industries. Taxpayers with CFCs should carefully review their potential exposure to this new tax provision.

Oregon, as a rolling conformity state, automatically conforms to the new IRC Section 951A (as well as the new GILTI deduction created by IRC Section 250 and the new deduction for foreign-derived intangible income, or “FDII,” also created by IRC Section 250).  Accordingly, Oregon taxpayers will need to consider their potential Oregon tax exposure arising from GILTI.  Some taxpayers may find themselves subject to state-level tax exposure for GILTI where none exists for federal income tax purposes, as for federal purposes a reduced foreign tax credit may apply to the taxpayer’s tax on its GILTI.  States, including Oregon, generally do not provide a foreign tax credit.

The Oregon Legislature did not have the opportunity to analyze the state tax treatment of GILTI during the 2018 legislative session.  Accordingly, S.B. 1529 includes a requirement that the Oregon Department of Revenue must submit a report to the Legislature’s revenue committee “regarding the relative efficacy of” Oregon’s tax haven law “in comparison to” the new GILTI provisions in terms of taxing multinational taxpayers.[39]

Oregon repeals tax haven law

Enacted in 2013 and first applicable to tax years beginning on or after January 1, 2014, Oregon’s tax haven law required Oregon corporate taxpayers to calculate Oregon taxable income by adding the taxable income of unitary affiliates that were incorporated in any foreign country specifically designated by statute.[40]  These countries were generally regarded as imposing no or nominal tax rates on certain categories of income and providing less transparency into the workings of their tax systems.  Accordingly, Oregon’s tax haven law enabled Oregon to tax income that had been shifted to these countries from the United States through tax planning strategies.

In many respects, Oregon’s tax haven law was rendered unnecessary by the Act.  First, the Act’s transition tax under IRC Section 965 allowed Oregon to tax all previously untaxed post-1986 foreign earnings and profits of CFCs from all jurisdictions, not just those earned in tax haven jurisdictions.  While “federal taxable income” and “earnings and profits” are not identical terms, the terms overlap to a sufficient degree that IRC Section 965 – which applies to a far greater time frame and to all foreign jurisdictions – will expand Oregon’s ability to tax pre-2018 foreign income beyond Oregon’s tax haven law.  Second, on a prospective basis, new IRC Section 951A will allow Oregon to tax many categories of income earned by CFCs overseas regardless of jurisdiction.

Ultimately, Oregon’s tax haven law would impose a state-level income tax on income that would be included in Oregon taxable income through Oregon’s conformity to IRC Sections 965 and 951A.  The Oregon Legislature determined that this would result in double-taxation, and accordingly repealed Oregon’s tax haven law, effective for tax years beginning on or after January 1, 2017.[41]

Oregon creates tax credit to mitigate double-taxation under IRC Section 965 and tax haven law

The Oregon Legislature also recognized that if Oregon were to conform to IRC Section 965 and tax Oregon’s share of post-1986 foreign earnings and profits of CFCs, this would impose a tax for the 2017 tax year on income that was previously taxed under Oregon’s tax haven law from 2014 through 2016.  Accordingly, the Oregon Legislature created a new corporate income tax credit with the following key elements:

  • The credit may not exceed the lesser of:
    • The amount of Oregon tax attributable to income taxable under IRC Section 965 for the 2017 tax year; or
    • The total Oregon tax attributable to Oregon’s tax haven law for the 2014 through 2016 tax years
  • The credit is non-refundable but may be carried forward for five years; and
  • The credit applies to tax years beginning on or after January 1, 2017 and before January 1, 2018 (except for carryforward provisions).[42]

As of the writing of this article, the Oregon Department of Revenue is drafting administrative rules to implement this credit.

Taxpayer considerations

Federal tax reform has imposed sweeping changes that will affect virtually all taxpayers in the United States.  Oregon, as a rolling conformity state, has automatically adopted many of the changes contained in the federal tax reform legislation. These changes extend far beyond the $10,000 limit on state and local tax deductions for personal income taxes, the deemed repatriation under IRC Section 965, and the new tax on GILTI.  Other changes include extensive modifications to federal net operating losses under IRC Section 172[43], limitations on the federal deduction for interest expenses under IRC Section 163(j)[44], and bonus depreciation under IRC Section 168(k).[45]  Oregon taxpayers should evaluate how these changes will apply to them for both federal and state income tax purposes.

While most of the provisions enacted in 2018 by the Oregon Legislature in response to federal tax reform are straightforward (if complex), Oregon taxpayers are reminded to tread carefully when considering the tax credit offered by the state for contributions to the Opportunity Grant Fund.  As discussed above, with the release of the Notice, the IRS has indicated that it is aware of state programs to characterize state tax payments as charitable contributions and that such a characterization will not be allowed for federal income tax purposes.

Many Oregon tax issues arising from the enactment of federal tax reform remain to be resolved.  How will Oregon tax GILTI?  Will Oregon taxpayers be allowed to include gross receipts of CFCs that generate GILTI in Oregon apportionment?  Will Oregon taxpayers be allowed to claim the FDII deduction?  How will Oregon apply the new interest expense deduction limitations under IRC Section 163(j)?  Some or all of these issues may be discussed in the 2019 legislative session, and such legislation may be retroactive to the 2018 tax year.

Accordingly, while “tax reform” was enacted for federal income tax purposes by the federal government, the state tax effects of tax reform for Oregon taxpayers are complex, considerable, and very much still under review.


[1] The tax reform legislation’s official name is, “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018.”  Pub. L. 115-97, 131 Stat. 2054 (Dec. 22, 2017).

[2] The Act effectively reduces the tax burden paid by the owners of passthrough entities (e.g., partnerships, S corporations, etc.) by a) creating a new 20% deduction for “qualified business income” and b) reducing the rates imposed on individuals and C corporations.

[3] Or. Rev. Stat. §§ 314.011(2), 317.010(7)(b), 317.018.

[4] For example, Oregon does not allow the federal net operating loss (NOL) to be included in Oregon taxable income.  Or. Rev. Stat. § 317.344.  Oregon requires taxpayers to add back the federal NOL to taxable income and then claim the Oregon-specific NOL.  Id., Or. Rev. Stat. 317.476.

[5] For Oregon’s balanced budget requirement:  See, Or. Rev. Stat. § 291.216.  The $1.5 trillion “cost” of the Act for federal revenues has been widely reported.  See, “Republicans Pass Sweeping Tax Rewrite 51-49, by The New York Times (December 1, 2017 (https://www.nytimes.com/2017/12/01/us/politics/senate-tax-bill-debate-vote.html.

[6] See, e.g., “Tax Cuts and Jobs Act of 2017 – An Update,” Oregon Legislative Revenue Office (January 2018) (hereinafter referred to as the “Oregon Budget Update,” provides estimate of Oregon budgetary impact of provisions of the Act, excluding provisions affecting international taxation).

[7] In regular legislative sessions that begin in even-numbered years, the legislative session may not exceed 35 calendar days, while such legislative sessions that begin in odd-numbered years may not exceed 160 calendar days.  Article IV, Section 10, Oregon Constitution (2017).  The 2018 legislative session ran from February 5, 2018 until adjournment sine die on March 3, 2018 (constitutional adjournment sine die had been scheduled for March 11, 2018).

[8] S.B. 1528, signed by Governor Brown on April 13, 2018, has been added to the Oregon Laws as Chapter 108, 2018 Laws.  For purposes of this article, the legislation will be referred to as “S.B. 1528.”

[9] S.B. 1529, signed by Governor Brown on April 10, 2018 has been added to the Oregon Laws as Chapter 101, 2018 Laws.  For purposes of this article, the legislation will be referred to as “S.B. 1529.”

[10] P.L. 115-97, § 11011.  The QBI calculation is complex and beyond the scope of this article.  For additional information regarding the federal tax aspects of the Act, see “Reshaping the code:  Understanding the new tax reform law,” Deloitte Tax LLP (2018) (available at https://www2.deloitte.com/content/dam/Deloitte/us/Documents/Tax/us-tax-reform-report.pdf).

[11] See, e.g., Or. Rev. Stat. § 316.048.  Other states that apply federal taxable income as the starting point for calculating income for personal income taxes include Colorado, Minnesota, North Dakota, South Carolina and Vermont.

[12] Oregon Budget Update, Slide 19 (199A projected to reduce Oregon revenues by $182 million to $277 million annually from 2018 – 2025).

[13] Or. Rev. Stat. § 316.043; 2015 Oregon Laws, ch. 5, §§ 10-13.

[14] 2015 Oregon Laws, ch. 5, § 12.

[15] S.B. 1528, §§ 9 -11.

[16] P.L. 115-97, § 11042, amending IRC § 164(b).

[17] S.B. 1528, §§ 1 – 6.

[18] S.B. 1528, § 2(2)(a).  Using this reserve amount, the taxpayer would need to bid at least 95 percent of the amount of the credit (subject to the actual reserve amount decided upon by the Department of Revenue).

[19] Id.  The Fund will appropriate its funds to the Oregon Higher Education Coordinating Commission, which is a state entity designed to help Oregon citizens with higher education.  S.B. 1528, § 4(3).

[20] S.B. 1528, § 2(4)(a).

[21] Id.

[22] S.B. 1528, § 2(5).

[23] S.B. 1528, § 2(8).

[24] In this example, if the couple were to report the $2,000 contribution as a charitable contribution deduction on their federal income tax return, they would need to add back the $2,000 on their Oregon personal income tax return.  However, the after-tax benefit of the $2,000 Oregon tax credit far exceeds the after-tax cost of adding back the $2,000 deduction.

[25] Act, § 14103.

[26] For example, assume Taxpayer X has $1 million of federal taxable income subject to the 15.5% tax rate for the 2017 tax year.  This would result in a tax liability of $155,000.  Under the otherwise-applicable 35% federal corporate tax rate, it would require federal taxable income of $442,857 to generate a tax liability of $155,000 ($155,000 divided by 35%).  Accordingly, IRC Section 965(c) requires the taxpayer to deduct $557,143 ($1,000,000 less $442,857) of the deferred foreign income amount in order to generate the proper tax liability under the applicable 35% rate.

[27] Id.

[28] IRC Section 965 is part of Subpart F of the Internal Revenue Code and the income calculated under that section is considered to be Subpart F income pursuant to the operation of IRC Section 951.

[29] Or. Rev. Stat. § 317.267; Or. Admin. R. 150-317-0330(3).  The Oregon DRD for foreign dividends is 80 percent, although that percentage drops to 70 percent for dividends received or deemed received from corporations that are less than 20 percent owned by the recipient.  Or. Rev. Stat. 317.267(2); Or. Admin. R. 150-317-0330(3).

[30] Or. Rev. Stat. § 317.267(1).

[31] S.B. 1529, § 28, amending Or. Rev. Stat. § 317.267(1).

[32] “Questions and Answers about Reporting Related to Section 965 on 2017 Tax Returns, Internal Revenue Service (March 13, 2018), available at https://www.irs.gov/newsroom/questions-and-answers-about-reporting-related-to-section-965-on-2017-tax-returns.

[33] See, “Current corporation tax topics,” Oregon Department of Revenue, available at http://www.oregon.gov/DOR/programs/businesses/Pages/corp-topics.aspx.

[34] Id.

[35] In general, a territorial tax system only taxes income earned in the taxing jurisdiction’s borders and exempts income earned outside its borders.

[36] Act, § 14101, creating new IRC Section 245A.

[37] S.B. 1529, § 28, amending Or. Rev. Stat. § 317.267(1).

[38] Act, § 14201, creating new IRC Section 951A.

[39] S.B. 1529, § 37.

[40] 2013 Oregon Laws, ch. 707, § 2.  The initial list was codified in Or. Rev. Stat. § 315.715(2)(b) and read as follows:  Andorra, Anguilla, Antigua and Barbuda, Aruba, the Bahamas, Bahrain, Barbados, Belize, Bermuda, the British Virgin Islands, the Cayman Islands, the Cook Islands, Cyprus, Dominica, Gibraltar, Grenada, Guernsey-Sark-Alderney, the Isle of Man, Jersey, Liberia, Liechtenstein, Luxembourg, Malta, the Marshall Islands, Mauritius, Monaco, Montserrat, Nauru, the Netherlands Antilles, Niue, Samoa, San Marino, Seychelles, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, the Turks and Caicos Islands, the U.S. Virgin Islands, and Vanuatu.  Id.  The list has been slightly modified (e.g., to reflect the dissolution of the Netherlands Antilles and to remove Monaco) and was recodified in 2015 as Or. Rev. Stat. 317.716.  2015 Oregon Laws, ch. 755, § 2.

[41] S.B. 1529, §§ 35 – 36.

[42] S.B. 1529, § 33.

[43] Act, § 13302.

[44] Act, § 13301.

[45] Act, § 13201.

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