The Oregon Department of Revenue has determined that certain federal assistance to businesses under the Coronavirus Aid, Relief and Economic Security (CARES) Act is not commercial activity under Oregon statute and will not be subject to the Corporate Activity Tax.
The exempt assistance includes forgiven Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loan (EIDL) emergency advances and Small Business Administration (SBA) loan subsidies. More information can be found in the Beyond the FAQ section of the CAT page on the department’s website.
According to information provided about the CARES Act on the website of the U.S. Department of the Treasury:
- PPP loans provide small businesses with funds to pay up to eight weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent and utilities.
- EIDL emergency advances of up to $10,000 are available to provide economic relief to businesses that are currently struggling with a temporary loss of revenue.
- SBA loan subsidies cover six months of payments for “covered loans” in regular servicing status.
Taxpayers with general questions about the CAT can email cat.help.dor@oregon.gov or call 503-945-8005.
Visit oregon.gov to get tax forms, check the status of your refund, or make tax payments; call 800-356-4222 toll-free from an Oregon prefix (English or Spanish); 503-378-4988 in Salem and outside Oregon; or email questions.dor@oregon.gov. For TTY (hearing or speech impaired), call 800-886-7204.
