Our firm specializes in delivering the valuation, documentation, and guidance necessary to support these important Oregon estate tax breaks.
Oregon offers significant estate tax relief for families who own qualifying farm, forestry, or fishing businesses. These benefits — the Natural Resources Credit (ORS 118.140) and the Natural Resource Property Exemption (ORS 118.145) — can reduce or eliminate Oregon estate tax when properly documented and supported.
To claim either program, estates must provide accurate, defensible valuation of the subject Natural Resource Property (NRP) and evidence that the business meets Oregon’s eligibility requirements.
What Qualifies as Natural Resource Property?
Based on ORS 118.140 and OAR 150-118-0110/0115, qualifying Natural Resource Property includes land, assets used in and business ownership interests (stock, LLC units) in:
- Farm Businesses
Broadly defined to include:
- Crop farming
- Ranching and dairy operations
- Horses and equine breeding
- Aquaculture
- Nursery stock & greenhouses
- Animal husbandry—including propagating, raising, breeding, harvesting, selling farm products
- Forestry Businesses
Qualifying forestry operations include:
- Planting, cultivating, caring for, and harvesting timber
- Logging operations
- Reforestation
- Forestry consulting businesses
Note: Sawmills do not qualify.
- Fishing Businesses
Includes:
- Commercial fishing vessels, gear, licenses, and restricted fishery permits
- Property used to process and sell catch directly to consumers
- Small-capacity seafood restaurants (≤15 seats) tied to the fishing business
How to qualify for the Natural Resources Credit?
- The adjusted gross estate must not exceed $15 million
- Oregon Natural Resource Property must make up at least 50% of the Oregon-located adjusted
gross estate - The Natural Resource Property must pass to qualifying family members
- The decedent or family must have operated the business 5 of the 8 years before death
To qualify for the Natural Resource Property Exemption?
- No minimum percentage — but
- Material participation is stricter (75% of days per year for 5 years before and after death)
- All owners of eligible entities must be qualifying family members (for 2026+ estates)
Our Services Include:
- Estate tax compliant valuations of Natural Resource Property businesses, broken down at the
level required for OR-706 schedules - Classification of assets into Natural Resource Property vs non-Natural Resource Property
- Operating allowance analysis and allowable post-death proceeds tracking
- Eligibility evaluation for choosing between the Natural Resources Credit and Natural Resource
Property Exemption programs - Coordination with attorneys, CPAs, forestry consultants, or farm managers
Who We Serve
We work with:
- Family farms and ranches
- Timber and forestland owners
- Logging contractors
- Fishing operations and boat owners
- Nursery operators
- Agricultural business entities
- Estates with mixed property types needing apportionment
Why Choose Us?
- Firm experience and expertise in Oregon’s estate tax structure and compliance
- Understanding of the 2025–2026 rule changes under HB 3630 & SB 485
- Clear, tax authority compliant, audit-defensible valuation reports