Political Tax Credit

Oregon's Political Tax Credit

The Oregon Political Tax Credit is one of those progressive ideas that make Oregon a great place to live, work, and play.

Through our tax system, the state of Oregon gives each tax-paying Oregonian a $50 gift. But you can’t keep it. Instead, you must either pay it back in state taxes—or donate it to a qualified political campaign or cause.

To put it another way: By donating $50 to a political campaign of your choice, you can reduce your taxes or increase your refund by that same $50 (assuming you pay at least $50 in taxes). That’s right: it’s a full 100% credit, not a deduction.

The bottom line? By contributing $50 to SEIU CAPE, you can make Oregon a better place—and it won’t cost you a dime. Married and filing jointly? It’s $50 per person—so you and your spouse can donate $100 and get it back!

How do you claim the $50 tax credit?

In 2006, it was on line 37 of the Form 40, the long form.

If you filled out the short form, Form 40S, it was on line 16, “Other Credits”.

Political contribution credit. Fill in your total political contributions, up to $100 on a joint return, $50 on all others. Your contribution(s) of money must have been made during 2006 to any of the following:

• A political party.
• A qualified candidate (or the candidate’s principal campaign committee) for federal, state, or local office to be voted for in Oregon.
• A political action committee certified in Oregon. (SEIU CAPE is a Political Action Committee in Oregon.)

Click here to download the publication Political Contributions Tax Credit .

So, basically any candidate or measure on the ballot in Oregon, any political party, or any political action committee registered in Oregon. (But not a 501c3 nonprofit; those are deductible elsewhere.)

One more thing: The Oregon Political Tax Credit is not a refundable credit. So, if your taxes are already zero, then you won’t get your $50 back.