Oregon Resident Tax Credit Auction

The OPIF Auction

Each year Oregon Film conducts an online auction of (as of 2021) $20million in tax credits where $500 tax credit increments can be bid on for purchase for as little as $450, or 90%. Bidders can bid on as many increments as they like, but it is an auction, so the highest bid will win when there are more bids than available credits.

Here is a flowchart from the 2023 auction outlining the auction and bidding process.

This means you can bid on a $50,000 tax credit (100 x $500 increments) for as little as $45,000; a savings of $5,000 and a direction of your tax dollars straight towards the development of an Oregon creative industry.

These credits are then usable for a three year period from the year they are purchased. Unused portions of the credits can be rolled over in to subsequent years during that three year period.

In most cases, you can claim your credit (Code 856) on your personal Oregon tax return (Form OR-40) where the tax credit is recorded on line 28, page 2. The credit can also then be given more detail in the filing via Schedule OR-ASC, line 4.

The Oregon Production Investment Fund (OPIF) is a state incentive program that directly supports the continued growth of Oregon’s creative film, television and interactive industry. OPIF is funded by the sale of discounted Oregon income tax credits to taxpayers who contribute to the fund. Residents and businesses bid at auction to purchase state tax credits at up a 10% discount that can then be used for up to three years on their state income taxes. The OPIF program is authorized to issue up to $20 million worth of tax credits per year.

Your support of this program helps create jobs, economic activity and promotion for Oregon. During the last biennium alone this program tracked more than $300M of in-state spending supporting more than 5000 local jobs while projects like “Shrill” (Hulu), “Trinkets” (Netflix), “Top Chef” (Bravo) and “Chad” (TBS) helped promote Oregon as a creative destination to a worldwide audience.

And this work is felt throughout the state. In the past two years alone large-scale production work has spent money and time in places Curry & Coos Counties, Bend, Hood River, Tillamook, Jacksonville and Banks.

Want more updates and reminders? Please sign up for our OPIF Tax Credit Auction Newsletter on this link.

These credits can be bid on, purchased and used by individual tax payers and business tax payers alike, and are intended to be used on their Oregon state tax returns. Also, the IRS clarified the ways in which the purchase of these credits by businesses can be deducted as a business expense.

The OPIF Auction Process

The information for this specific OPIF auction will go up on the Dept. of Revenue (DOR) site nearer to the auction date, but you can find out more information about this process above and below.

More information on this and other auctions can be found here

The OPIF Tax Credit Auction site can be found here

The most important procedural points to note for these auctions are:

For reminders and information, sign up for our OPIF Tax Credit Auction Newsletter by going here

No bids will be accepted before or after the designated times.

Bidders must submit payment along with Form TCA by Friday of the week following the close of the auction. Further details of how to do this can be found on the OPIF Auction Site found here

There are an annual total of $20 million in tax credit certificates available.

The credit certificates will be in $500 increments and the minimum bid will be $450 for each increment. You can bid on multiple increments. For example, you could bid 92% on 100 increments and, if your bid is successful, receive a $50,000 tax credit for $46,000.

Recent IRS Notices about the Treatment of State Tax Credits

The IRS has recently issued final regulations about the treatment of state tax credits. The IRS also issued this clarification for businesses utilizing tax credits. In addition, in 2018, the IRS issued this notice in relation to the Tax Cuts and Jobs Act as well as issued these proposed regulations on charitable contributions and state and local tax credits. Please consult your tax advisor if you have questions about the IRS treatment of purchased state tax credits.