The credit will be on the California return. Usually, when you have income from a nonresident state, it is taxed both by the state where it is earned as well as by the state where you live. To prevent (or lessen) the effect of double-taxation, the resident state will give a credit for the tax you must pay to the nonresident state for the income produced in that state.
However, Oregon and California are reverse credit states. This means that the credit works in reverse: the nonresident state will give you a credit for the taxes you pay to your resident state. Thus, since you are an Oregon resident, you will prepare the Oregon state return first, and then, when finished, prepare the California return. The tax credit from Oregon will reduce the California tax, possibly down to $0.
The fact that the income is generated from an S-Corp does not matter in this case. Rather, it is the fact that you live in Oregon, and the income comes from California.
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