On May 6, 2020, the Oregon Department of Revenue (“DOR”) issued informal guidance in the form of a frequently asked question on its website providing that, in general, an Economic Injury Disaster Loan emergency advance, SBA debt relief payment, or forgivable Paycheck Protection Program loan (whether or not forgiven) “received by a business from these federal relief programs is not commercial activity and thus is not subject to the Corporate Activity Tax.” This guidance clears up the doubt the DOR created in April when it indicated it would be studying this issue. This is great news for taxpayers who sought relief from one or more of these federal programs.

We will continue to track federal, state, and local tax issues as events evolve in light of COVID-19. In the meantime, if you have any questions or comments about the Oregon CAT, or other state and federal tax issues, please do not hesitate to contact Dan Eller or Alee Soleimanpour.

Please visit Schwabe’s COVID-19 resource page for additional information.