Tax Breaks for Business

Small Business OwnersThe State of Oregon and the IRS offer numerous tax credits, tax deductions and other incentives for small business.  

Certain deductions are also available to employees who pay for job-related expenses.

Our Tax Organizers provide addtional helpful information which will help you organize your business income and expense records.

Federal Tax Breaks

The American Recovery and Reinvestment Act provides tax incentives for business including:

  • Work Opportunity tax credit. This newly-expanded credit adds returning veterans and "disconnected youth" to the list of new hires covered by the credit that businesses may claim.
  • COBRA: Health Insurance Continuation Subsidy. The IRS has extensive guidance for employers, including an updated Form 941, as well as information for qualifying individuals.
  • Energy Efficiency and Renewable Energy Incentives. See what businesses can do to reap tax rewards.
  • Net Operating Loss Carryback. Small businesses can offset losses by getting refunds on taxes paid up to five years ago.
  • An expanded section 179 deduction and bonus depreciation deductions for investments in vehicles, equipment and fixtures.

Oregon Tax Breaks

The State of Oregon offers a variety of tax incentives to businesses including:

  • Business energy tax credits
  • Child Care Fund contribution credits
  • Crop Donation credit
  • Diesel engine replacement credit
  • Electronic commerce zone investment credit
  • Employer provided dependent care assistance credit
  • Employer scholarship credit
  • Farmworker housing credit
  • First Break Program credit
  • On-farm processing machinery and equipment credit
  • Oregon Production Investment Fund credit
  • Pollution control facilities credit
  • Reforestation credit
  • Reservation enterprise zone credit
  • Riparian land credit

Employee Business Deductions

Deductions are available for certain work-related expenses including:

  • Education
  • Automobile
  • Travel and meals
  • Entertainment
  • Gifts
  • Supplies
  • Union dues

If you incurred work-related expenses, you may be able to deduct them on Schedule A. 

Please complete our Employee Business Expense Organizer and bring it with you to your tax interview.