Notify Your Subcontractors: Commercial Activities Tax Break

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ARTICLE
Date	ArticleType
10/15/2019	Member News
Notify Your Subcontractors: Commercial Activities Tax Break

Thanks to HBA's efforts in Salem, residential builders will receive a special “carve out” under the recently passed Oregon Commercial Activities Tax. Importantly, the break is available for residential development only. The carve out will permit an additional write-off of 15% for subcontracted labor for deduction from total gross receipts. In order for builders to take advantage of this benefit and properly comply with the tax law, you will need to have vendors break out labor and material costs separately on invoices beginning on January 1, 2020. HBA will will provide further guidance and support as the tax law is finalized, but consider speaking with your accountant early to ensure that you are able to take advantage of this special tax break. For more information on the Commerical Activities Tax carve out, contact OHBA CEO Jodi Hack at jhack@oregonhba.com. Next Article Previous Article

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