USA Statutes : oregon
Title : TITLE 28 PUBLIC FINANCIAL ADMINISTRATION
Chapter : Chapter 315 Personal and Corporate Income or Excise Tax Credits
(1) A credit is allowed
against the taxes otherwise due under ORS chapter 316 (or, if the
taxpayer is a corporation, under ORS chapter 317 or 318), based upon the
certified cost of the facility during the period for which that facility
is certified under ORS 469.185 to 469.225. The credit is allowed as
follows:
(a) Except as provided in paragraph (b) of this subsection, the
credit allowed in each of the first two tax years in which the credit is
claimed shall be 10 percent of the certified cost of the facility, but
may not exceed the tax liability of the taxpayer. The credit allowed in
each of the succeeding three years shall be five percent of the certified
cost, but may not exceed the tax liability of the taxpayer.
(b) If the application for certification under ORS 469.185 to
469.225 was filed with the State Department of Energy on or after January
1, 2001, and the certified cost of the facility does not exceed $20,000,
the total amount of the credit allowable under subsection (3) of this
section may be claimed in the first tax year for which the credit may be
claimed, but may not exceed the tax liability of the taxpayer.
(2) In order for a tax credit to be allowable under this section:
(a) The facility must be located in Oregon;
(b) The facility must have received final certification from the
Director of the State Department of Energy under ORS 469.185 to 469.225;
and
(c) The taxpayer must be an eligible applicant under ORS 469.205
(1)(c).
(3) The maximum total credit or credits allowed for a facility
under this section to eligible taxpayers may not exceed 35 percent of the
certified cost of the facility.
(4)(a) Upon any sale, termination of the lease or contract,
exchange or other disposition of the facility, notice thereof shall be
given to the Director of the State Department of Energy who shall revoke
the certificate covering the facility as of the date of such disposition.
The new owner, or upon re-leasing of the facility, the new lessor, may
apply for a new certificate under ORS 469.215, but the tax credit
available to the new owner shall be limited to the amount of credit not
claimed by the former owner or, for a new lessor, the amount of credit
not claimed by the lessor under all previous leases.
(b) The State Department of Energy may not revoke the certificate
covering a facility under paragraph (a) of this subsection if the tax
credit associated with the facility has been transferred to a taxpayer
who is an eligible applicant under ORS 469.205 (1)(c)(A).
(5) Any tax credit otherwise allowable under this section that is
not used by the taxpayer in a particular year may be carried forward and
offset against the taxpayer’s tax liability for the next succeeding tax
year. Any credit remaining unused in that next succeeding tax year may be
carried forward and used in the second succeeding tax year, and likewise,
any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and likewise, any
credit not used in that third succeeding tax year may be carried forward
and used in the fourth succeeding tax year, and likewise, any credit not
used in that fourth succeeding tax year may be carried forward and used
in the fifth succeeding tax year, and likewise, any credit not used in
that fifth succeeding tax year may be carried forward and used in the
sixth succeeding tax year, and likewise, any credit not used in that
sixth succeeding tax year may be carried forward and used in the seventh
succeeding tax year, and likewise, any credit not used in that seventh
succeeding tax year may be carried forward and used in the eighth
succeeding tax year, but may not be carried forward for any tax year
thereafter. Credits may be carried forward to and used in a tax year
beyond the years specified in subsection (1) of this section only as
provided in this subsection.
(6) The credit provided by this section is not in lieu of any
depreciation or amortization deduction for the facility to which the
taxpayer otherwise may be entitled for purposes of ORS chapter 316, 317
or 318 for such year.
(7) The taxpayer’s adjusted basis for determining gain or loss may
not be decreased by any tax credits allowed under this section. [1993
c.730 §34 (enacted in lieu of 316.140 and 317.104); 1995 c.746 §15; 1997
c.656 §4; 1999 c.365 §10; 2001 c.583 §1; 2001 c.660 §1a](1) If a taxpayer obtains a grant or tax credit from the
federal government other than an investment tax credit or a low income
housing tax credit in connection with a facility which has been certified
by the Director of the State Department of Energy, the certified cost of
the facility shall be reduced on a dollar for dollar basis. Any income or
excise tax credits which such taxpayer would be entitled to under ORS
315.354 and 469.185 to 469.225 after any such reduction shall not be
reduced by such federal grants or tax credits. A taxpayer applying for a
federal grant or credit shall notify the Department of Revenue by
certified mail within 30 days after each application, and after the
receipt of any grant.
(2) A taxpayer is eligible to participate in both this tax credit
program and low interest, government-sponsored loans.
(3) A taxpayer who receives a tax credit or ad valorem tax relief
on a pollution control facility or an alternative energy device under ORS
307.405, 315.304 or 316.116 is not eligible for a tax credit on the same
facility or device under ORS 315.354 and 469.185 to 469.225.
(4) A credit may not be allowed under ORS 315.354 if the taxpayer
has received a tax credit on the same facility or device under ORS
315.324. [1993 c.730 §36 (enacted in lieu of 316.141, 316.142 and
317.103); 1995 c.556 §35; 1999 c.623 §3; 2001 c.583 §2](Temporary provisions relating to low nitrogen oxide emission truck
engines)Note: Sections 28, 29, 31, 31a and 32, chapter 618, Oregon Laws
2003, provide:
Sec. 28. (1) As used in this section and section 29 of this 2003
Act:
(a) “Combined weight” has the meaning given that term in ORS
825.005.
(b) “Motor vehicle” has the meaning given that term in ORS 825.005.
(c) “Truck” means a motor vehicle or combination of vehicles that
has a combined weight of more than 26,000 pounds.
(2) A taxpayer who owns a truck that is registered in Oregon under
the provisions of ORS chapter 803 or 826 and that has a diesel engine
that was purchased in Oregon on or after the effective date of this 2003
Act [January 1, 2004], and that is certified by the federal Environmental
Protection Agency to emit oxides of nitrogen at the rate of 2.5 grams per
brake horsepower-hour or less, is allowed a credit against the taxes
otherwise due under ORS chapter 316, if the taxpayer is a resident
individual, or against the taxes otherwise due under ORS chapter 317, if
the taxpayer is a corporation. The total amount of the credit under this
section depends on the number of trucks owned by the taxpayer prior to
the purchase, as follows:
(a) 1 to 10 trucks, $925 for each qualifying engine purchased.
(b) 11 to 50 trucks, $705 for each qualifying engine purchased.
(c) 51 to 100 trucks, $525 for each qualifying engine purchased.
(d) More than 100 trucks, $400 for each qualifying engine purchased.
(3) Notwithstanding subsection (2) of this section, a taxpayer may
not claim a credit under this section of more than $80,000 for purchases
in any one year.
(4) A credit may not be allowed under this section unless the
taxpayer claiming the credit complies with rules adopted by the
Department of Environmental Quality and the Department of Revenue as
provided in section 29 of this 2003 Act.
(5) Except as provided under subsection (6) of this section, the
credit allowed in any one year may not exceed the tax liability of the
taxpayer.
(6) Any tax credit otherwise allowable under this section that is
not used by the taxpayer in a particular tax year may be carried forward
and offset against the taxpayer’s tax liability for the next succeeding
tax year. Any credit remaining unused in the next succeeding tax year may
be carried forward and used in the second succeeding tax year, any credit
not used in the second succeeding tax year may be carried forward and
used in the third succeeding tax year and any credit not used in the
third succeeding tax year may be carried forward and used in the fourth
succeeding tax year but may not be carried forward for any tax year
thereafter.
(7)(a) The credit provided by this section is not in lieu of any
depreciation or amortization deduction for the truck to which the
taxpayer otherwise may be entitled under ORS chapter 316 or 317 for the
tax year.
(b) The taxpayer’s adjusted basis for determining gain or loss may
not be further decreased by any tax credit allowed under this section.
(8)(a) Pursuant to the procedures for a contested case under ORS
183.310 to 183.550 [series became ORS chapter 183], the Department of
Revenue may order the disallowance of the credit allowed under this
section if it finds, by order, that the credit was obtained by fraud or
misrepresentation.
(b) If the tax credit is disallowed pursuant to this subsection,
notwithstanding ORS 314.410 or other law, all prior tax relief provided
to the taxpayer shall be forfeited and the Department of Revenue shall
proceed to collect those taxes not paid by the taxpayer as a result of
the prior granting of the credit.
(c) If the tax credit is disallowed pursuant to this subsection,
the taxpayer shall be denied any further credit provided under this
section from and after the date that the order of disallowance becomes
final.
(9) If the engine is destroyed by fire, flood, natural disaster or
act of God before all of the credit has been used, the taxpayer may
nevertheless claim the credit as if no destruction had taken place. In
the event of fire, if the fire chief of the fire protection district or
unit determines that the fire was caused by arson, as described in ORS
164.315 and 164.325, by the taxpayer or by another at the taxpayer’s
direction, then the fire chief shall notify the Department of Revenue. If
the taxpayer is convicted of arson, the Department of Revenue shall
disallow the credit in accordance with subsection (8) of this section.
(10)(a) A nonresident individual shall be allowed the credit
computed in the same manner and subject to the same limitations as the
credit allowed a resident by this section. However, the credit shall be
prorated using the proportion provided in ORS 316.117.
(b) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed by this
section shall be prorated or computed in a manner consistent with ORS
314.085.
(c) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
[2003 c.618 §28]
Sec. 29. (1) The Department of Environmental Quality and the
Department of Revenue shall adopt rules for implementing section 28 of
this 2003 Act. Rules may include but need not be limited to rules
specifying procedures for application, review and approval of the tax
credit and rules for issuance and use of a certificate of credit approval.
(2) The application developed under subsection (1) of this section
shall include:
(a) The name, address and taxpayer identification number of the
taxpayer;
(b) The number of trucks owned by the taxpayer and the number of
engines eligible for the tax credit that the taxpayer has purchased; and
(c) Any other information that the rules adopted under subsection
(1) of this section may require.
(3) Applications filed in compliance with this section and section
28 of this 2003 Act shall be approved to the extent that the total of
estimated tax credits for all approved purchases of engines for the
calendar year is equal to or less than $3 million. An application may not
be approved if the addition of the amount of the tax credit to the amount
of the tax credits for all approved purchases for the calendar year would
exceed $3 million.
(4) Notwithstanding section 31 of this 2003 Act, the Department of
Environmental Quality may approve applications for tax credits for
qualifying engines purchased in calendar years 2004, 2005, 2006 and 2007,
although the taxpayer may not claim the credit until a tax year beginning
on or after January 1, 2005.
(5) The Department of Revenue may disallow, in whole or in part, a
claim for credit under section 28 of this 2003 Act upon the Department of
Revenue’s determination that, under section 28 of this 2003 Act, the
taxpayer is not entitled to the credit or is entitled to only a portion
of the amount claimed.
(6) The Department of Environmental Quality shall charge a fee of
$15 for each engine for which a taxpayer applies for a tax credit. The
fee is payable to the department and may not be refunded to the applicant
for any reason. [2003 c.618 §29]
Sec. 31. The tax credit established in section 28 of this 2003 Act
applies to tax years beginning on and after January 1, 2005, and to
engine model years 2003, 2004, 2005, 2006 and 2007. [2003 c.618 §31]
Sec. 31a. Notwithstanding ORS 314.505 to 314.525 or 316.557 to
316.589, a taxpayer may not reduce estimated tax payments made before
July 1, 2005, on account of the credit described in section 28 of this
2003 Act. [2003 c.618 §31a]
Sec. 32. A certificate of credit approval may not be issued under
section 29 of this 2003 Act after December 31, 2007. [2003 c.618 §32]ECONOMIC DEVELOPMENT (1) A
credit against the taxes that are otherwise due under ORS chapter 316 or,
if the taxpayer is a corporation, under ORS chapter 317 or 318, shall be
allowed to a taxpayer that is:
(a) A business firm engaged or preparing to engage in electronic
commerce in an enterprise zone that has been approved for electronic
commerce designation under ORS 285C.095; or
(b) A business firm engaged or preparing to engage in electronic
commerce in a city that has been designated for electronic commerce under
ORS 285C.100.
(2) The credit shall equal 25 percent of the investments made by
the business firm in capital assets:
(a) Located in the area designated for electronic commerce;
(b) Used or constructed, installed or otherwise prepared for use in
electronic commerce operations within the area designated for electronic
commerce that are related to electronic commerce sales, customer service,
order fulfillment, broadband infrastructure or other electronic commerce
operations; and
(c)(A) During the period that commences when the firm becomes an
authorized business firm under ORS 285C.140 and ends on the last day of
the income or corporate excise tax year in which begins the first
property tax year in which qualified property of the firm used in
eligible electronic commerce activities is exempt from property taxation
under ORS 285C.175; or
(B) During any income or corporate excise tax year in which begins
a property tax year in which qualified property of the firm used in
eligible electronic commerce operations is exempt from property taxation
under ORS 285C.175.
(3) Except as provided in subsection (5) of this section, the
credit must be claimed for the income or corporate excise tax year that
is:
(a) The year in which the investment for which a credit is being
claimed is made; and
(b) A year, all or part of which is described in subsection (2)(c)
of this section.
(4) A credit allowed under this section for any one tax year may
not exceed the lesser of $2 million or the tax liability of the taxpayer.
(5) Any tax credit otherwise allowable under this section that is
not used by the taxpayer in a particular year may be carried forward and
offset against the taxpayer’s tax liability for the next succeeding tax
year. Any credit remaining unused in the next succeeding tax year may be
carried forward and used in the second succeeding tax year, and likewise
any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not
used in that third succeeding tax year may be carried forward and used in
the fourth succeeding tax year, and any credit not used in that fourth
succeeding tax year may be carried forward and used in the fifth
succeeding tax year, but may not be carried forward for any tax year
thereafter.
(6) The credit allowed under this section is not in lieu of any
depreciation or amortization deduction to which the taxpayer otherwise
may be entitled under ORS chapter 316, 317 or 318 for the tax year.
(7) The taxpayer’s adjusted basis for determining gain or loss may
not be further decreased by any amount of credit allowed under this
section.
(8)(a) A nonresident shall be allowed the credit under this section
in the proportion provided in ORS 316.117.
(b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed
under this section shall be determined in a manner consistent with ORS
316.117.
(c) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed under this
section shall be prorated or computed in a manner consistent with ORS
314.085.
(9) As used in this section, “authorized business firm,” “business
firm,” “electronic commerce” and “qualified property” have the meanings
given those terms in ORS 285C.050. [2001 c.957 §8; 2003 c.65 §1; 2003
c.662 §64](1) A taxpayer who has claimed a credit under ORS
315.507 shall maintain records sufficient to show:
(a) That within three years following the year in which a credit
was claimed under ORS 315.507, property owned or operated by the taxpayer
and used in electronic commerce operations was exempt from property
taxation under ORS 285C.175; and
(b) That at no time was property described in paragraph (a) of this
subsection disqualified from exemption pursuant to ORS 285C.240.
(2) The taxpayer shall provide these records to the Department of
Revenue if requested by the department.
(3) The taxpayer shall maintain the records described in this
section for at least five years following the last tax year for which the
taxpayer claims any credit under ORS 315.507.
(4) If property owned or operated by the taxpayer is not both used
in electronic commerce operations in an area designated for electronic
commerce and exempt from property taxation under ORS 285C.175 within
three years following the year in which a credit is first claimed under
ORS 315.507, the department shall disallow the credit for the current or
any prior tax year and collect any taxes that were not paid as a result
of application of the credit.
(5) If property owned or operated by the taxpayer, used in
electronic commerce operations in an area designated for electronic
commerce and exempt from property taxation under ORS 285C.175 is
disqualified from exemption under ORS 285C.240, the department shall
disallow the credit for the current or any prior tax year and collect any
taxes that were not paid as a result of application of the credit.
(6) For purposes of collecting taxes due under subsection (4) or
(5) of this section, the department shall have the benefit of all laws of
this state pertaining to the collection of income and corporate excise
taxes. No assessment of these taxes shall be necessary and no statute of
limitations shall preclude the collection of these taxes. [2003 c.65 §2
and 2003 c.662 §65] (1) There shall be
allowed a credit against the taxes otherwise due under ORS chapter 316
(or, if the taxpayer is a corporation, under ORS chapters 317 and 318)
for advanced telecommunications facilities, as defined in ORS 285C.530,
that have been certified by the Economic and Community Development
Department.
(2) The amount of the credit shall equal 20 percent of the
certified cost of the facilities that was actually paid or incurred by
the taxpayer, except that:
(a) The amount of the credit may not include facility costs that
were paid using moneys withdrawn from the taxpayer’s Telecommunications
Infrastructure Account established pursuant to ORS 759.405; and
(b) Revenues forgone by the taxpayer upon the taxpayer’s waiver of
installation charges for advanced telecommunications facilities to
schools, rural health clinics or libraries may be added to the amount of
the credit.
(3) The credit may be claimed by the taxpayer for the tax year in
which the advanced telecommunications facilities are placed in service.
(4) The credit allowed under this section may not exceed the tax
liability of the taxpayer and may not be carried forward to a succeeding
tax year.
(5) In the case of a credit allowed under this section:
(a) A nonresident shall be allowed the credit under this section in
the proportion provided in ORS 316.117.
(b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
(c) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed under this
section shall be prorated or computed in a manner consistent with ORS
314.085.
(6) The credit shall be claimed on a form prescribed by the
Department of Revenue and containing any information as may be required
by the department. The taxpayer shall attach a copy of the certification
to the return for the tax year for which the credit is claimed. [2001
c.957 §15] (1) A
credit against the taxes that are otherwise due under ORS chapter 316 or,
if the taxpayer is a corporation, under ORS chapter 317 or 318, is
allowed to a taxpayer for certified film production development
contributions made by the taxpayer during the tax year to the Oregon
Production Investment Fund established under ORS 284.367.
(2)(a) The amount of the tax credit shall equal the amount
certified for credit by the Oregon Film and Video Office, except that a
contribution must equal at least 90 percent of the tax credit.
(b) The Oregon Film and Video Office shall adopt rules for
determining the amount of tax credit to be certified by the office. The
rules shall be adopted in order to achieve the following goals:
(A) Subject to paragraph (a) of this subsection, generate
contributions for which tax credits of $1 million are certified for each
fiscal year;
(B) Maximize income and excise tax revenues that are retained by
the State of Oregon for state operations; and
(C) Provide the necessary financial incentives for taxpayers to
make contributions, taking into consideration the impact of granting a
credit upon a taxpayer’s federal income tax liability.
(3) A taxpayer seeking a tax credit under this section shall apply
for tax credit certification to the Oregon Film and Video Office on a
form supplied by the office. The taxpayer shall include payment of the
contribution at the time of application.
(4) Contributions made under this section shall be deposited in the
Oregon Production Investment Fund.
(5)(a) Upon receipt of a contribution, the Oregon Film and Video
Office shall issue to the taxpayer written certification of the amount
certified for tax credit under this section to the extent the amount
certified for tax credit, when added to all amounts previously certified
for tax credit under this section, does not exceed $1 million for the
fiscal year in which certification is made.
(b) The Oregon Film and Video Office is not liable, and a refund of
a contributed amount need not be made, if a taxpayer who has received tax
credit certification is unable to use all or a portion of the tax credit
to offset the tax liability of the taxpayer.
(6) To the extent the Oregon Film and Video Office does not certify
contributed amounts as eligible for a tax credit under this section, the
taxpayer may request a refund of the amount the taxpayer contributed, and
the office shall refund that amount.
(7)(a) Except as provided in paragraph (b) of this subsection, a
tax credit claimed under this section may not exceed the tax liability of
the taxpayer and may not be carried over to another tax year.
(b) Any tax credit otherwise allowable under this section that is
not used by the taxpayer in a particular tax year may be carried forward
and offset against the taxpayer’s tax liability for the next succeeding
tax year. Any credit remaining unused in the next succeeding tax year may
be carried forward and used in the second succeeding tax year, and
likewise, any credit not used in that second succeeding tax year may be
carried forward and used in the third succeeding tax year but may not be
carried forward for any tax year thereafter.
(8) If a tax credit is claimed under this section by a nonresident
or part-year resident taxpayer, the amount shall be allowed without
proration under ORS 316.117.
(9) A taxpayer who has received a tax credit certificate under this
section may sell the certificate to another taxpayer. The sale is
effective only if a notice of tax credit certificate sale is filed with
the Department of Revenue. The notice shall be filed on a form prescribed
by the department on or before the date on which the income or corporate
excise tax return of the buyer for the first year for which the credit
could be claimed is filed or due, whichever is earlier. The notice form
shall include the following information:
(a) The name and taxpayer identification number of the seller;
(b) The name and taxpayer identification number of the buyer;
(c) The amount of the tax credit certificate that is being sold to
the buyer;
(d) The amount of the tax credit certificate that is being retained
by the seller; and
(e) Any other information required by the department.
(10) If requested by the Department of Revenue, the Oregon Film and
Video Office shall supply a list of taxpayers that have obtained tax
credit certification under this section, and for each listed taxpayer
disclose:
(a) The amount of contribution made by the taxpayer; and
(b) The amount certified for tax credit under this section.
(11) If the amount of contribution for which a tax credit
certification is made is allowed as a deduction for federal tax purposes,
the amount of the contribution shall be added to federal taxable income
for Oregon tax purposes. [2003 c.736 §76] (1) As used in this section, “water
transit vessel” means a United States Coast Guard licensed and inspected
vessel that is primarily designed to carry 50 or more passengers and
vehicles or 50 or more passengers only for a published fee across a body
of water between two or more fixed points on a regular schedule.
(2)(a) A credit against the taxes that are otherwise due under ORS
chapter 316 or, if the taxpayer is a corporation, under ORS chapter 317
or 318, is allowed to a resident employer based upon wages actually paid
by the taxpayer to a person employed in this state to assist in the
manufacture of a water transit vessel.
(b) The credit allowed under this section:
(A) Must be claimed for the year in which the wages were paid;
(B) May not be claimed for wages paid to an employee who was
employed by the employer during the previous tax year; and
(C) Must be for wages paid as a result of an increase in the number
of full-time equivalent employees employed by the eligible taxpayer when
compared to the previous tax year.
(3) The amount of the credit provided under this section shall be
equal to the lesser of:
(a) $5,000; or
(b) 15 percent of the wages paid to employees during the tax year
for which the credit is claimed.
(4) The tax credit available under this section may not exceed the
tax liability of the taxpayer for the tax year.
(5)(a) Wages taken into account for the purposes of subsection (3)
of this section may not include any amount paid by the employer to an
employee for whom the employer receives federal funds for on-the-job
training.
(b) A tax credit under this section is not in lieu of any deduction
for payroll costs or any other expense to which the taxpayer may be
entitled.
(6)(a) A nonresident individual shall be allowed the credit
computed in the same manner and subject to the same limitations as the
credit allowed a resident by this section. However, the credit shall be
prorated using the proportion provided in ORS 316.117.
(b) If a change in the taxable year of the taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed by this
section shall be prorated or computed in a manner consistent with ORS
314.085.
(c) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
[2005 c.677 §1]Note: Section 2, chapter 677, Oregon Laws 2005, provides:
Sec. 2. Section 1 of this 2005 Act [315.517] applies to persons
initially hired on or after January 1, 2006, and for which a credit is
claimed for tax years beginning on or after January 1, 2006, and before
January 1, 2013. [2005 c.677 §2]Note: 315.517 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 315 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation. (1)
There shall be allowed a credit against the taxes that are otherwise due
under ORS chapter 316 or, if the taxpayer is a corporation, under ORS
chapter 317 or 318, for amounts contributed to a university venture
development fund established under ORS 351.697, to the extent the
university that established the fund issued a tax credit certificate to
the taxpayer.
(2) The total amount of the credit allowed to a taxpayer shall
equal 60 percent of the amount stated on the tax credit certificate.
Except as provided in subsection (3) of this section, the amount of the
credit allowed in any one tax year shall equal 20 percent of the amount
actually contributed to the fund.
(3) The credit allowed under this section may not exceed $50,000 or
the tax liability of the taxpayer for the tax year.
(4) In the case of a credit allowed under this section for purposes
of ORS chapter 316:
(a) A nonresident shall be allowed the credit in the same manner
and subject to the same limitations as a resident. However, the credit
shall be prorated using the proportion provided in ORS 316.117.
(b) If a change in the tax year of a taxpayer occurs as described
in ORS 314.085 or if the Department of Revenue terminates the taxpayer’s
tax year under ORS 314.440, the credit shall be prorated or computed in a
manner consistent with ORS 314.085.
(c) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit shall be
determined in a manner consistent with ORS 316.117.
(5) A taxpayer claiming a credit under this section shall add to
federal taxable income for Oregon tax purposes any amount that is
deducted for federal tax purposes and that also serves as the basis for
the credit allowed under this section. [2005 c.592 §5]Note: Section 6, chapter 592, Oregon Laws 2005, provides:
Sec. 6. Section 5 of this 2005 Act [315.521] applies to tax years
beginning on or after January 1, 2006. [2005 c.592 §6]HEALTH (1) As used in this section:
(a) “Bone marrow donor expense” means the sum of the amounts paid
or incurred during the tax year by an employer for the following:
(A) Development of an employee bone marrow donation program.
(B) Employee education related to bone marrow donation, including
but not limited to the need for donors and an explanation of the
procedures used to determine tissue type and donate bone marrow.
(C) Payments to a health care provider for determining the tissue
type of an employee who agrees to register or registers as a bone marrow
donor.
(D) Wages paid to an employee for time reasonably related to tissue
typing and bone marrow donation.
(E) Transportation of an employee to the site of a donation or any
other service which is determined by the Department of Human Services by
rule as essential for a successful bone marrow donation.
(b) “Employee” means an individual who:
(A) Is regularly employed by the taxpayer for more than 20 hours
per week;
(B) Who is not a temporary or seasonal employee; and
(C) Whose wages are subject to withholding under ORS 316.162 to
316.221.
(c) “Wages” has the meaning given the term for purposes of ORS
316.162 to 316.221.
(2) A business tax credit against the taxes otherwise due under ORS
chapter 316 for the tax year is allowed to a resident employer, or if the
employer is a corporation, to the employer against the taxes otherwise
due under ORS chapter 317. The amount of the credit is equal to 25
percent of the bone marrow donor expense paid or incurred during the tax
year by an employer to provide a program for employees who are potential
bone marrow donors or who actually become bone marrow donors.
(3)(a) Except as provided under paragraph (b) of this subsection,
the allowance of a credit under this section shall not affect the
computation of taxable income for purposes of ORS chapter 316 or 317.
(b) If in determining the amount of the credit for any tax year an
amount allowed as a deduction under section 170 of the Internal Revenue
Code is included in bone marrow donation expense, the amount allowed as a
deduction shall be added to federal taxable income.
(4) The credit allowed under this section shall be allowed to a
nonresident employer in the same manner as the credit is allowed to a
resident employer.
(5) Any tax credit otherwise allowable under this section which is
not used by the taxpayer in a particular tax year may be carried forward
and offset against the taxpayer’s tax liability for the next succeeding
tax year. Any credit remaining unused in such next succeeding tax year
may be carried forward and used in the second succeeding tax year. Any
credit remaining unused in such second succeeding tax year may be carried
forward and used in the third succeeding tax year. Any credit remaining
unused in such third succeeding tax year may be carried forward and used
in the fourth succeeding tax year. Any credit remaining unused in such
fourth succeeding tax year may be carried forward and used in the fifth
succeeding tax year, but may not be used in any tax year thereafter.
[1993 c.730 §40 (enacted in lieu of 316.155 and 317.149)]Note: Section 12, chapter 652, Oregon Laws 1991, provides:
Sec. 12. ORS 315.604 and the amendments to ORS 318.031 by section
11, chapter 652, Oregon Laws 1991, apply to bone marrow donation expense
incurred in tax years beginning on or after January 1, 1991, and on or
before December 31, 2001. [1991 c.652 §12; 1995 c.746 §37] (1) A taxpayer shall be allowed a
credit against the taxes otherwise due under ORS chapter 316 (or, if the
taxpayer is a corporation, under ORS chapter 317 or 318) for premium
costs actually paid or incurred during the tax year for a long term care
insurance policy:
(a) For long term care coverage of the taxpayer or a dependent or
parent of the taxpayer; or
(b) That is offered by the taxpayer to employees of the taxpayer
that are employed in this state.
(2) The amount of the credit allowed under this section shall equal
the lesser of:
(a) Fifteen percent of the total amount of long term care insurance
premiums paid or incurred by the taxpayer during the tax year; or
(b)(A) If the long term care insurance coverage is for the taxpayer
and the dependents or parents of the taxpayer, $500; or
(B) If the long term care insurance coverage is for Oregon-based
employees of the taxpayer and their dependents or parents, $500
multiplied by the number of employees covered.
(3) A credit may not be allowed under this section if the policy
was first issued prior to January 1, 2000.
(4) The credit allowed under this section may not exceed the tax
liability of the taxpayer and may not be carried forward to another tax
year.
(5) In the case of a credit allowed under this section for purposes
of ORS chapter 316:
(a) A nonresident shall be allowed the credit under this section in
the proportion provided in ORS 316.117.
(b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
(c) A husband and wife who file separate returns for a taxable year
may each claim a share of the tax credit that would have been allowed on
a joint return in proportion to the contribution of each.
(d) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed under this
section shall be prorated or computed in a manner consistent with ORS
314.085.
(6) As used in this section, “long term care insurance” has the
meaning given that term in ORS 743.652. [1999 c.1005 §2](1) A resident or
nonresident individual certified as eligible under ORS 442.563, licensed
under ORS chapter 677, who is engaged in the practice of medicine, and
who has a rural practice that amounts to 60 percent of the individual’s
practice, shall be allowed an annual credit against taxes otherwise due
under this chapter in the sum of $5,000 during the time in which the
individual retains such practice and membership if the individual is
actively practicing in and is a member of the medical staff of one of the
following hospitals:
(a) A type A hospital designated as such by the Office of Rural
Health;
(b) A type B hospital designated as such by the Office of Rural
Health if the hospital is:
(A) Not within the boundaries of a metropolitan statistical area;
(B) Located 30 or more highway miles from the closest hospital
within the major population center in a metropolitan statistical area; or
(C) Located in a county with a population of less than 75,000;
(c) A type C rural hospital, if the Office of Rural Health makes
the findings required by ORS 315.619; or
(d) A rural critical access hospital.
(2) A nonresident shall be allowed the credit under this section in
the proportion provided in ORS 316.117. If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident
occurs, the credit allowed by this section shall be determined in a
manner consistent with ORS 316.117.
(3) For purposes of this section, an “individual’s practice” shall
be determined on the basis of actual time spent in practice each week in
hours or days, whichever is considered by the Office of Rural Health to
be more appropriate. In the case of a shareholder of a corporation or a
member of a partnership, only the time of the individual shareholder or
partner shall be considered and the full amount of the credit shall be
allowed to each shareholder or partner who qualifies in an individual
capacity.
(4) As used in this section:
(a) “Type A hospital,” “type B hospital” and “type C hospital” have
the meaning for those terms provided in ORS 442.470.
(b) “Rural critical access hospital” means a facility that meets
the criteria set forth in 42 U.S.C. 1395i-4 (c)(2)(B) and that has been
designated a critical access hospital by the Office of Rural Health and
the Department of Human Services. [Formerly 316.143] A resident
or nonresident individual who is certified as eligible under ORS 442.561,
442.562, 442.563 or 442.564, and is licensed as a physician or podiatric
physician and surgeon under ORS chapter 677, licensed as a physician
assistant under ORS chapter 677, licensed as a nurse practitioner under
ORS chapter 678, licensed as a certified registered nurse anesthetist
under ORS chapter 678, licensed as a dentist under ORS chapter 679 or
licensed as an optometrist under ORS 683.010 to 683.335 is entitled to
the tax credit described in ORS 315.613 even if not a member of the
hospital medical staff if the Office of Rural Health certifies that the
individual:
(1) Has a rural practice that amounts to 60 percent of the
individual’s practice; and
(2)(a) If a physician or a physician assistant, can cause a patient
to be admitted to the hospital;
(b) If a certified registered nurse anesthetist, is employed by or
has a contractual relationship with one of the hospitals described in ORS
315.613 (1); or
(c) If an optometrist, has consulting privileges with a hospital
listed in ORS 315.613 (1). This paragraph does not apply to an
optometrist who qualifies as a “frontier rural practitioner,” as defined
by the Office of Rural Health. [Formerly 316.144] A member of
the medical staff of a type C hospital who meets the requirements of ORS
315.616 (1) and (2)(a) is entitled to the tax credit described in ORS
315.613 if:
(1) The hospital is isolated due to geographic conditions, complies
with rules relating to emergency response and is subject to such other
special factors as the Office of Rural Health may prescribe; and
(2) The hospital is designated by the Office of Rural Health as
being subject to particular problems in recruiting and retaining medical
staff and is located in an area that is medically underserved. [Formerly
316.146] (1) A resident or
nonresident individual who is certified as eligible under ORS 442.550 to
442.570 and who is certified as an emergency medical technician under ORS
chapter 682 shall be allowed a credit against the taxes that are
otherwise due under ORS chapter 316 if the Office of Rural Health
certifies that the individual provides volunteer emergency medical
technician services in a rural area that comprise at least 20 percent of
the total emergency medical technician services provided by the
individual in the tax year.
(2) The amount of the credit shall equal $250.
(3) A nonresident shall be allowed the credit under this section in
the proportion provided in ORS 316.117. If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident
occurs, the credit allowed by this section shall be determined in a
manner consistent with ORS 316.117.
(4) As used in this section, “rural area” means a geographic area
that is located at least 25 miles from any city with a population of
30,000 or more. [2005 c.832 §63]Note: Section 66, chapter 832, Oregon Laws 2005, provides:
Sec. 66. Section 63 of this 2005 Act [315.622] applies to tax
credit certifications issued by the Office of Rural Health on or after
January 1, 2006, and before January 1, 2011. [2005 c.832 §66]CULTURE (1)
As used in this section, “cultural organization” means an entity that is:
(a) Exempt from federal income tax under section 501(c)(3) of the
Internal Revenue Code; and
(b) Organized primarily for the purpose of producing, promoting or
presenting the arts, heritage, programs and humanities to the public or
organized primarily for identifying, documenting, interpreting and
preserving cultural resources.
(2) A taxpayer shall be allowed a credit against the taxes
otherwise due under ORS chapter 316 for amounts contributed during the
tax year to the Trust for Cultural Development Account established under
ORS 359.405.
(3) A taxpayer that is a corporation shall be allowed a credit
against the taxes otherwise due under ORS chapter 317 or 318 for amounts
contributed during the tax year to the Trust for Cultural Development
Account established under ORS 359.405.
(4) The credit is allowable under this section only to the extent
the taxpayer has contributed an equal amount to an Oregon cultural
organization during the tax year.
(5) The amount of the credit shall equal 100 percent of the amount
contributed to the Trust for Cultural Development Account, but may not
exceed the lesser of the tax liability of the:
(a) Taxpayer under ORS chapter 316 for the tax year or $500.
(b) Taxpayer that is a corporation under ORS chapter 317 or 318 for
the tax year or $2,500.
(6) The credit allowed under this section may not be carried over
to another tax year.
(7) The credit allowed under this section is in addition to any
charitable contribution deduction allowable to the taxpayer.
(8) In the case of a credit allowed under this section for purposes
of ORS chapter 316:
(a) A nonresident shall be allowed the credit under this section in
the proportion provided in ORS 316.117.
(b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed
under this section shall be determined in a manner consistent with ORS
316.117.
(c) A husband and wife who file separate returns for a taxable year
may each claim a share of the tax credit that would have been allowed on
a joint return in proportion to the contribution of each.
(d) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed under this
section shall be prorated or computed in a manner consistent with ORS
314.085. [2001 c.954 §18]Note: Section 19, chapter 954, Oregon Laws 2001, provides:
Sec. 19. Section 18 of this 2001 Act [315.675] applies to tax years
beginning on or after January 1, 2002, and before January 1, 2013. [2001
c.954 §19]
_______________(1)
Except when the context requires otherwise, the definitions contained in
ORS chapters 314, 316, 317 and 318 are applicable in the construction,
interpretation and application of the personal and corporate income and
excise tax credits contained in this chapter.
(2)(a) For purposes of the tax credits contained in this chapter,
any term has the same meaning as when used in a comparable context in the
laws of the United States relating to federal income taxes, unless a
different meaning is clearly required or the term is specifically defined
for purposes of construing, interpreting and applying the credit.
(b) With respect to the tax credits contained in this chapter, any
reference to the laws of the United States or to the Internal Revenue
Code means the laws of the United States relating to income taxes or the
Internal Revenue Code as they are amended on or before December 31, 2004,
even when the amendments take effect or become operative after that date.
(3) Insofar as is practicable in the administration of this
chapter, the Department of Revenue shall apply and follow the
administrative and judicial interpretations of the federal income tax
law. When a provision of the federal income tax law is the subject of
conflicting opinions by two or more federal courts, the department shall
follow the rule observed by the United States Commissioner of Internal
Revenue until the conflict is resolved. Nothing contained in this section
limits the right or duty of the department to audit the return of any
taxpayer or to determine any fact relating to the tax liability of any
taxpayer.
(4) When portions of the Internal Revenue Code incorporated by
reference as provided in subsection (2) of this section refer to rules or
regulations prescribed by the Secretary of the Treasury, then such rules
or regulations shall be regarded as rules adopted by the department under
and in accordance with the provisions of this chapter, whenever they are
prescribed or amended.
(5)(a) When portions of the Internal Revenue Code incorporated by
reference as provided in subsection (2) of this section are later
corrected by an Act or a Title within an Act of the United States
Congress designated as an Act or Title making technical corrections, then
notwithstanding the date that the Act or Title becomes law, those
portions of the Internal Revenue Code, as so corrected, shall be the
portions of the Internal Revenue Code incorporated by reference as
provided in subsection (2) of this section and shall take effect, unless
otherwise indicated by the Act or Title (in which case the provisions
shall take effect as indicated in the Act or Title), as if originally
included in the provisions of the Act being technically corrected. If, on
account of this subsection, any adjustment is required to an Oregon
return that would otherwise be prevented by operation of law or rule, the
adjustment shall be made, notwithstanding any law or rule to the
contrary, in the manner provided under ORS 314.135.
(b) As used in this subsection, “Act or Title” includes any
subtitle, division or other part of an Act or Title. [1993 c.730 §2; 1995
c.556 §34; 1997 c.839 §64; 1999 c.90 §7; 2001 c.660 §34; 2003 c.77 §11;
2005 c.832 §24]
No credits
applied directly to the income tax calculated for federal purposes
pursuant to the Internal Revenue Code shall be applied in calculating the
tax due under ORS chapter 314, 316, 317 or 318 except those prescribed in
this chapter or ORS chapter 314, 316, 317 or 318. [1993 c.730 §4 (enacted
in lieu of 316.107)]
The Department of Revenue, by rule, may waive partially, conditionally or
absolutely requirements for proof or substantiation of claims for
subtractions, exclusions, exemptions or credits allowable for purposes of
taxes imposed upon or measured by net income. [1995 c.54 §2]
(1) A credit
against the taxes otherwise due under ORS chapter 316 (or, if the
taxpayer is a corporation, under ORS chapter 317 or 318) shall be allowed
to a taxpayer for a claim of right income repayment adjustment.
(2) The credit shall be allowed under this section only if the
taxpayer’s federal tax liability is determined under section 1341(a) of
the Internal Revenue Code.
(3) The amount of the credit shall equal the difference between:
(a) The taxpayer’s actual Oregon state tax liability for the tax
year for which the claim of right income was included in gross income for
federal tax purposes; and
(b) The taxpayer’s Oregon state tax liability for that tax year,
had the claim of right income not been included in gross income for
federal tax purposes.
(4) A credit under this section shall be allowed only for the tax
year for which the taxpayer’s federal tax liability is determined under
section 1341 of the Internal Revenue Code for federal tax purposes.
(5) If the amount allowable as a credit under this section, when
added to the sum of the amounts allowable as a payment of tax under ORS
314.505 to 314.525, 316.187 and 316.583, other payments of tax and other
refundable credit amounts, exceeds the taxes imposed by ORS chapters 314
to 318 (reduced by any nonrefundable credits allowed for the tax year),
the excess shall be treated as an overpayment of tax and shall be
refunded or applied in the same manner as other tax overpayments.
(6) As used in this section, “claim of right income” means:
(a) An item included in federal gross income for a prior tax year
because it appeared that the taxpayer had an unrestricted right to the
item; and
(b) An item for which the taxpayer’s federal tax liability is
adjusted under section 1341 of the Internal Revenue Code because the
taxpayer did not have an unrestricted right to the item of gross income.
[1999 c.1007 §2; 2001 c.660 §19] (1) A credit against the taxes
otherwise due under ORS chapter 316 (or if the taxpayer is a corporation,
under ORS chapter 317 or 318) shall be allowed in an amount equal to 50
percent of reforestation project costs actually paid or incurred to
reforest underproductive Oregon forestlands. Such costs include, but are
not limited to site preparation, tree planting and other silviculture
treatments considered necessary by the State Forester to establish
commercial, hardwood or softwood stands on appropriate sites. Subject to
subsection (5) of this section:
(a) One-half of the credit shall be taken in the tax year for which
the State Forester, after physical inspection of the forestland, issues a
preliminary certificate under ORS 315.106 certifying that the land
qualifies as underproductive Oregon forestland and that the reforestation
project undertaken meets the requirements of this section and the
specifications established by the State Forester and the costs appear to
be reasonable; and
(b) One-half of the credit shall be taken in the tax year for which
the State Forester, after further physical inspection of the land and
project, certifies that the new forest is established in accordance with
the specifications of the State Forester.
(2) No credit shall be allowed under either subsection (1)(a) or
(b) of this section unless written certification containing the following
statements accompanies the claim for the credit or is otherwise filed
with the Department of Revenue:
(a) A preliminary certificate issued by the State Forester under
ORS 315.106 that the land and project meet the preliminary specifications
established by the State Forester or that the new forest is established,
whichever is applicable at the time.
(b) A statement by the landowner or person in possession of the
land that the land within the project area will be used for the primary
purpose of growing and harvesting trees of an acceptable species.
(c) A statement that the landowner or person in possession of the
land is aware that maintenance practices, including release, may be
needed to insure that a new forest is established and will remain
established.
(3) For purposes of this section, reforestation project costs shall
not include:
(a) Costs paid or incurred to reforest any forestland that has been
commercially logged to the extent that reforestation is required under
the Oregon Forest Practices Act, except costs paid or incurred to
reforest forestland following a hardwood harvest, conducted for the
purposes of converting underproductive forestlands, as determined by
administrative rule.
(b) That portion of costs or expenses paid through a federal or
state cost share, financial assistance or other incentive program.
(c) Those costs paid or incurred to grow Christmas trees,
ornamental trees, shrubs or plants, or those costs paid or incurred to
grow hardwood timber described under ORS 321.267 (3) or 321.824 (3).
(d) Any costs paid or incurred to purchase or otherwise acquire the
land.
(e) The cost of purchase or other acquisition of tools and
equipment with a useful life of more than one year.
(4) To qualify for the credit:
(a) The project must be completed to specifications approved by the
State Forester.
(b) The taxpayer’s portion of the project costs must be $500 or
more.
(c) The taxpayer must be a private individual, corporation, group,
Indian tribe or other native group, association or other nonpublic legal
entity owning, purchasing under recorded contract of sale or leasing at
least five acres of Oregon commercial forestland.
(5) Any tax credit otherwise allowable under this section which is
not used by the taxpayer in a particular year may be carried forward and
offset against the taxpayer’s tax liability for the next succeeding tax
year. Any credit remaining unused in such next succeeding tax year may be
carried forward and used in the second succeeding tax year, and likewise,
any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, but may not be carried
forward for any tax year thereafter. In all cases the taxpayer must be
the person who made the investment into the project.
(6) The credit provided by this section shall be in addition to and
not in lieu of any depreciation or amortization deduction to which the
taxpayer otherwise may be entitled with respect to the reforestation
project and the credit shall not affect the computation of basis for the
property.
(7) In compliance with ORS chapter 183, the Department of Revenue
and the State Forestry Department may adopt rules consistent with law for
carrying out the provisions of this section.
(8) As used in this section, “underproductive Oregon forestlands”
means Oregon commercial forestlands not meeting the minimum stocking
standards of the Oregon Forest Practices Act.
(9) If, for any reason other than those specified in subsection
(10) of this section, a new forest is not established by the last day of
the second taxable year following the taxable year for which the
preliminary certificate was issued, the State Forester shall so report to
the Department of Revenue. The report filed under this subsection shall
be the basis for the department to recover any credit granted under
subsection (1)(a) of this section. If, however, the new forest is not
established within the time required by this subsection on account of the
reasons specified in subsection (10) of this section, any credit allowed
under subsections (1)(a) and (5) of this section shall not be recovered
but no further credit as provided under subsections (1)(b) and (5) of
this section shall be allowed.
(10) Subject to requalification under this section in the manner
applicable for the original claim, including obtaining a new preliminary
certificate, a taxpayer may claim an additional credit or credits for
reestablishing a new planting in the event that the new forest is
destroyed by a natural disaster or is not established for reasons beyond
the control of the taxpayer, if the measures taken in completing the
original or earlier project would normally have resulted in establishing
the minimum number of trees per acre anticipated by the project.
(11) Any owner affected by a determination, regarding the
reforestation tax credit made by:
(a) The State Forester, except for a denial of a request for a
preliminary certificate due to the annual reforestation credit cost
limitation calculated under ORS 315.108, may appeal that determination in
the manner provided for in ORS 526.475 (1).
(b) The Department of Revenue, may appeal that determination in the
manner provided for in ORS 526.475 (2). [1993 c.730 §8 (enacted in lieu
of 316.094, 317.102 and 318.110); 1995 c.746 §23; 2001 c.359 §1; 2003
c.454 §122; 2003 c.621 §97a]Note: Section 5, chapter 605, Oregon Laws 1987, provides:
Sec. 5. No tax credit shall be allowed under ORS 315.104 based upon
reforestation project costs if the preliminary certificate is not issued
on or before December 31, 2011. [1987 c.605 §5; 1989 c.887 §4; 1995 c.746
§28; 2001 c.359 §3](1) A taxpayer claiming the credit
provided under ORS 315.104 shall file a written request with the State
Forester for a preliminary certificate. The request shall contain:
(a) Information that is required by the State Forester by rule;
(b) An estimate of the amount of the credit the taxpayer expects to
claim under ORS 315.104 (1)(a); and
(c) Payment of any fee required by the State Forester by rule
adopted under subsection (4) of this section.
(2) The State Forester shall consider requests for preliminary
certificates in the chronological order in which the requests are filed
with the State Forester. If the State Forester determines that the
request complies with ORS 315.104 (1)(a), the State Forester shall issue
the preliminary certificate to the taxpayer, to the extent the total
amount of estimated claims for credit under ORS 315.104 (1)(a) for all
preliminary certificates issued for the calendar year do not exceed the
annual reforestation credit cost limitation calculated under ORS 315.108.
(3) The State Forester may not issue a preliminary certificate to a
taxpayer to the extent the estimated claim for credit under ORS 315.104
(1)(a) contained in the request for a preliminary certificate, when added
to the total of estimated claims for credit under ORS 315.104 (1)(a) for
all preliminary certificates issued by the State Forester for the
calendar year, exceeds the annual reforestation credit cost limitation
calculated under ORS 315.108.
(4) The State Forester shall establish by rule a fee for filing a
written request for a preliminary certificate under this section. The fee
shall be adequate to recover the costs incurred by the State Forestry
Department in administering the reforestation tax credit program
established under this section and ORS 315.104 and 315.108.
(5) Moneys collected from fees established by the State Forester
under rules adopted under this section shall be deposited in the State
Forestry Department Account to be used for the purposes of administering
the reforestation tax credit program. [1995 c.746 §25; 2005 c.796 §3] (1) On or
before January 1, 1996, the State Forester shall determine an average
annual amount of estimated reforestation project costs for which credit
was claimed under ORS 315.104 (1)(a) during the period from July 1, 1992,
to July 1, 1994.
(2) The annual reforestation credit cost limitation shall be:
(a) Equal to the average annual amount of estimated reforestation
project costs determined under subsection (1) of this section for the
calendar year beginning January 1, 1996.
(b) Twice the average annual amount of estimated reforestation
project costs determined under subsection (1) of this section for years
beginning on or after January 1, 1997. [1995 c.746 §26]The Legislative Assembly declares that the purpose of ORS
315.113 is to encourage taxpayers that have riparian land in farm
production to voluntarily remove the riparian land from farm production
and employ conservation practices applicable to the riparian land that
minimize contributions to undesirable water quality, habitat degradation
and stream bank erosion. [2001 c.912 §2](1) As used in this section:
(a) “Crop” means the total yearly production of an agricultural
commodity, not including livestock, that is harvested from a specified
area.
(b) “Riparian land” means land in this state that:
(A) Borders both a river, stream or other natural watercourse and
land that is in farm production; and
(B) Does not exceed a width of 35 feet between the land that is in
farm production and the bank of the river, stream or other natural
watercourse.
(c) “Share-rent agreement” means an agreement in which the person
who engages in farming operations and the person who owns the land where
the farming operations are conducted share the crop grown on that land or
the profits from that crop.
(2) A taxpayer may claim a credit against the taxes otherwise due
under ORS chapter 316, 317 or 318 for 75 percent of the market value of
crops forgone when riparian land is voluntarily taken out of farm
production.
(3) A credit under this section may be claimed only if:
(a) The taxpayer owns the riparian land that is the basis of the
credit;
(b) The taxpayer is actively engaged in farming operations on land
adjacent to the riparian land;
(c) The riparian land was in farm production for the previous tax
year or a credit under this section was claimed during the previous tax
year;
(d) The conservation practices employed on the riparian land are
consistent with the agricultural water quality management plan
administered by the State Department of Agriculture in the applicable
river basin management area; and
(e) The decision to remove the riparian land from farm production
was a voluntary decision and not the result of a federal, state or local
law or government decision requiring the riparian land to be taken out of
farm production. For purposes of this paragraph, action taken by a
taxpayer under an agricultural water quality management plan administered
by the State Department of Agriculture is not the result of a government
decision requiring the land to be taken out of farm production.
(4)(a) The amount of the credit shall be calculated by multiplying
the market value per acre of the forgone crop by the acreage of the
riparian land that is not in farm production and multiplying that product
by 75 percent.
(b) For the first tax year for which a credit is claimed under this
section, the forgone crop for which a value is determined under this
section shall be the crop grown on the land in the previous tax year.
(c) For a tax year following the first tax year for which a credit
is claimed under this section, the forgone crop for which a value is
determined under this section shall be the crop for which the value was
determined for the previous tax year.
(d) If a taxpayer does not claim a credit under this section for a
tax year, any credit claimed in a subsequent tax year shall be treated as
the first tax year for which a credit is claimed under this section.
(5) Notwithstanding subsection (3)(a) and (b) of this section, if
the riparian land that is the basis of a credit under this section is
adjacent to land that is in farm production under a share-rent agreement,
the taxpayer that is engaged in farming operations and the taxpayer that
is the landowner may each claim a credit under this section. The amount
of the credit shall be allocated to each taxpayer in the proportion that
the share-rent agreement allocates crop proceeds to each of those
taxpayers. The total amount of credit allowed to both taxpayers under
this subsection may not exceed the amount of the credit otherwise
allowable under this section if the farming operations were not subject
to a share-rent agreement.
(6) Notwithstanding subsections (3)(a) and (5) of this section, if
the taxpayer is actively engaged in farming operations and pays the
landowner in cash, the taxpayer may claim all of the credit available
under this section.
(7) The credit allowed in any one tax year may not exceed the tax
liability of the taxpayer.
(8) Any tax credit otherwise allowable under this section that is
not used by the taxpayer in a particular tax year may be carried forward
and offset against the taxpayer’s tax liability for the next succeeding
tax year. Any credit remaining unused in the next succeeding tax year may
be carried forward and used in the second succeeding tax year. Any credit
remaining unused in the second succeeding tax year may be carried forward
and used in the third succeeding tax year. Any credit remaining unused in
the third succeeding tax year may be carried forward and used in the
fourth succeeding tax year. Any credit remaining unused in the fourth
succeeding tax year may be carried forward and used in the fifth
succeeding tax year, but may not be used in any tax year thereafter.
(9) In the case of a credit allowed under this section for purposes
of ORS chapter 316:
(a) A nonresident shall be allowed the credit in the same manner
and subject to the same limitations as a resident. However, the credit
shall be prorated using the proportion provided in ORS 316.117.
(b) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085 or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed by this
section shall be prorated or computed in a manner consistent with ORS
314.085.
(c) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
(10) If a taxpayer that has claimed a credit under this section
places the riparian land for which the credit is claimed back in farm
production, the taxpayer may not claim a credit under this section for
five tax years following the year the riparian land was placed back in
farm production.
(11) The Department of Revenue may adopt rules prescribing
procedures for identifying forgone crops and for establishing the market
value of forgone crops. [2001 c.912 §3; 2003 c.46 §32]The Legislative Assembly finds that farming and related
agricultural activities make significant contributions to the economy of
this state and that the contributions of family farms are important in
maintaining the agricultural diversity upon which consistent economic
performance is based. The Legislative Assembly further finds that changes
in the marketplace and in the expectations of consumers of agricultural
products have resulted in a need for greater vertical integration and
on-farm processing of agricultural commodities. The Legislative Assembly
declares that an income tax credit for property taxes paid on on-farm
processing machinery and equipment encourages the continued operation and
expansion of on-farm processing and results in a greater share of the
value of agricultural products being retained by the farms in this state.
The Legislative Assembly further declares that an incentive in the form
of an income tax credit does not adversely impact the revenues of local
governments in this state. [2001 c.725 §2] (1) As used in this section:
(a) “Effective property tax rate” means:
(A) The ratio of the total amount of property taxes imposed on the
account that contains the machinery and equipment for which a credit is
being claimed (after application of ORS 310.150 but prior to discount
under ORS 311.505) over the assessed value of the property tax account;
and
(B) The ratio determined under subparagraph (A) of this paragraph
for the property tax year that begins in the income tax year for which
the credit is claimed.
(b) “Farm operator” means a person that operates a farming business
as defined in section 263A of the Internal Revenue Code.
(c) “Machinery and equipment” means machinery and equipment that
meets the definition of section 1245 property in section 1245 of the
Internal Revenue Code.
(d) “Processing”:
(A) Means any activity that is directly related and necessary to
clean, sort, grade, produce, prepare, manufacture, handle, package, store
or ship a farm crop or livestock product after the point of harvest and
before the point of sale, in a modified state or altered form.
(B) Does not include an activity primarily associated with the
promotion or retail sale of a product for personal or household use that
is normally sold through consumer retail distribution.
(e) “Qualified machinery and equipment” means machinery and
equipment used in processing that meets the requirements of subsections
(3) and (4) of this section for the tax year.
(2) A taxpayer who is a farm operator may claim a credit against
the taxes that are otherwise due under ORS chapter 316 or, if the
taxpayer is a corporation, under ORS chapter 317 or 318 for ad valorem
property taxes paid or incurred on qualified machinery and equipment.
(3) A credit under this section may be claimed only if:
(a) The machinery and equipment is owned by the farm operator or by
a person who is related to the farm operator under section 267 of the
Internal Revenue Code;
(b) The machinery and equipment is used for processing primarily
occurring on land described in subsection (4) of this section; and
(c)(A) The farm operator has grown or raised at least one-half of
the total volume of farm crop or livestock products processed with the
machinery and equipment for which the credit is being claimed in three of
the five previous income tax years; or
(B)(i) The farm operator has grown or raised at least one-tenth of
the total volume of farm crop or livestock products processed with the
machinery and equipment for which the credit is being claimed in three of
the five previous income tax years; and
(ii) The farm operator has used the machinery and equipment to
process at least one-half of the volume of the applicable farm crop or
livestock products grown or raised by the farm operator in three of the
five previous income tax years.
(4) In addition to the requirements under subsection (3) of this
section, a credit under this section may be claimed only if:
(a) The machinery and equipment is located on land that is
specially assessed for farm use under ORS 308A.050 to 308A.128 and the
machinery and equipment is owned or otherwise controlled by the farm
operator; or
(b) The machinery and equipment is located on land that is
contiguous to land that is specially assessed for farm use under ORS
308A.050 to 308A.128 and the machinery and equipment is owned or
otherwise controlled by the farm operator.
(5) A credit may be claimed under this section only for qualified
machinery and equipment that was subject to assessment and property
taxation for the property tax year beginning in the income tax year for
which the credit is being claimed.
(6) The amount of the credit shall be the lesser of:
(a) The effective property tax rate multiplied by the adjusted
basis of the qualified machinery and equipment; or
(b) $30,000.
(7) The adjusted basis of the qualified machinery and equipment
shall be the adjusted basis of the qualified machinery and equipment for
personal income or corporate excise or income tax purposes as of the last
day of the income tax year for which the credit is being claimed, except
that the adjusted basis shall be increased by the cost of any qualified
machinery and equipment that the taxpayer elected to expense under
section 179 of the Internal Revenue Code, until the qualified machinery
and equipment is fully depreciated for personal income or corporate
excise or income tax purposes. The adjusted basis shall reflect any
depreciation allowable for the current tax year. A credit under this
section may not be allowed for a tax year in which the qualified
machinery and equipment is fully depreciated for personal income or
corporate excise or income tax purposes.
(8) The credit allowed under this section for any one tax year may
not exceed the tax liability of the taxpayer.
(9) Any tax credit otherwise allowable under this section that is
not used by the taxpayer in a particular year may be carried forward and
offset against the taxpayer’s tax liability for the next succeeding tax
year. Any credit remaining unused in the next succeeding tax year may be
carried forward and used in the second succeeding tax year, and likewise,
any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not
used in that third succeeding tax year may be carried forward and used in
the fourth succeeding tax year, and any credit not used in that fourth
succeeding tax year may be carried forward and used in the fifth
succeeding tax year, but may not be carried forward for any tax year
thereafter.
(10) The credit allowed under this section is not in lieu of any
depreciation or amortization deduction to which the taxpayer otherwise
may be entitled under ORS chapter 316, 317 or 318 for the tax year.
(11) The taxpayer’s adjusted basis for determining gain or loss may
not be further decreased by any amount of credit allowed under this
section.
(12) A nonresident shall be allowed the credit under this section
in the proportion provided in ORS 316.117.
(13) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed
under this section shall be determined in a manner consistent with ORS
316.117.
(14) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed under this
section shall be prorated or computed in a manner consistent with ORS
314.085. [2001 c.725 §3]Note: Section 5, chapter 725, Oregon Laws 2001, provides:
Sec. 5. (1) Sections 3 and 4 of this 2001 Act [315.119 and 315.123]
apply to tax years beginning on or after January 1, 2002.
(2) Except as provided in section 3 (9) of this 2001 Act [315.119
(9)], credits allowed under section 3 of this 2001 Act apply to tax years
beginning before January 1, 2008. [2001 c.725 §5](1) For the first three tax years in which a
taxpayer claims a credit under ORS 315.119, a taxpayer shall be deemed to
have complied with the applicable minimum production and processing
volume requirements of ORS 315.119 (3)(c) if the taxpayer has satisfied
these requirements for the preceding tax year.
(2) For the fourth tax year in which a taxpayer claims a credit
under ORS 315.119, the taxpayer shall be deemed to have complied with the
applicable minimum production and processing volume requirements of ORS
315.119 (3)(c) if the taxpayer has satisfied these requirements for the
preceding tax year and at least one of the three tax years immediately
prior to the preceding tax year.
(3) For each tax year in which a credit is claimed under ORS
315.119, the taxpayer shall maintain records sufficient to determine the
taxpayer’s production and processing volume for purposes of ORS 315.119
(3)(c). A taxpayer shall maintain the records required under this
subsection for at least 10 years. [2001 c.725 §4]Note: See note under 315.119. (1) A resident individual shall
be allowed a credit against the taxes otherwise due under ORS chapter 316
(or if the taxpayer is a corporation, the corporation shall be allowed a
credit against the taxes otherwise due under ORS chapter 317 or 318),
based upon the cost of a fish habitat improvement project certified under
ORS 496.260. The amount of the credit shall be 25 percent of the amount
certified.
(2) To qualify for the credit under this section:
(a) The fish habitat improvement project must have been given final
certification by the State Department of Fish and Wildlife as provided in
ORS 496.260.
(b) The credit must be claimed for the year in which final
certification for the project is granted.
(c) The taxpayer who is allowed the credit must be the person or
entity who actually expended funds for construction or installation of
the project.
(d) The fish habitat improvement project must not be required by
existing federal or state statute.
(3) The credit allowed in any one year shall not exceed the tax
liability of the taxpayer.
(4) Any tax credit otherwise allowable under this section which is
not used by the taxpayer in a particular year may be carried forward and
offset against the taxpayer’s tax liability for the next succeeding tax
year. Any credit remaining unused in such next succeeding tax year may be
carried forward and used in the second succeeding tax year, and likewise
any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year and any credit not used
in that third succeeding tax year may be carried forward and used in the
fourth succeeding tax year, and any credit not used in that fourth
succeeding tax year may be carried forward and used in the fifth
succeeding tax year, but may not be carried forward for any tax year
thereafter.
(5) In the case of a credit allowed under this section for purposes
of ORS chapter 316:
(a) A nonresident shall be allowed the credit under this section in
the proportion provided in ORS 316.117.
(b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
(c) A husband and wife who file separate returns for a taxable year
may each claim a share of the tax credit that would have been allowed on
a joint return in proportion to the contribution of each.
(d) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed under this
section shall be prorated or computed in a manner consistent with ORS
314.085.
(6) The tax claim for tax credit shall be substantiated by
submission, with the tax return, of the State Department of Fish and
Wildlife notice of final project certification. The requirement for
substantiation may be waived partially, conditionally or absolutely, as
provided under ORS 315.063. [1993 c.730 §10 (enacted in lieu of 316.084,
317.133 and 318.080); 1995 c.54 §3]
(1) There shall be allowed a credit against tax due under ORS chapter
316, or if the taxpayer is a corporation, under ORS chapter 317, for
taxpayers that install fish screening devices, by-pass devices or
fishways, when required to do so by ORS 498.306, 498.311 (1), 509.585 or
509.615 (1), and the diversion is not part of a hydroelectric project
required to be licensed under the Federal Energy Regulatory Commission.
Except as allowed in subsection (4) of this section, the credit shall be
taken in the tax year in which the final certification is issued under
subsection (10) of this section.
(2) The credit shall be equal to 50 percent of the taxpayer’s net
certified costs of installing a fish screening device, by-pass device or
fishway. The total credit allowed shall not exceed $5,000 per device
installed.
(3) The credit allowed in any one year shall not exceed the tax
liability of the taxpayer.
(4) Any tax credit otherwise allowable under this section which is
not used by the taxpayer in a particular tax year may be carried forward
and offset against the taxpayer’s tax liability for the next succeeding
tax year. Any credit remaining unused in such next succeeding tax year
may be carried forward and used in the second succeeding tax year. Any
credit remaining unused in such second succeeding tax year may be carried
forward and used in the third succeeding tax year. Any credit remaining
unused in such third succeeding tax year may be carried forward and used
in the fourth succeeding tax year. Any credit remaining unused in such
fourth succeeding tax year may be carried forward and used in the fifth
succeeding tax year, but may not be used in any tax year thereafter.
(5) The credit provided by this section shall be in addition to and
not in lieu of any depreciation or amortization deduction to which the
taxpayer otherwise may be entitled with respect to the installation of a
fish screening device, by-pass device or fishway. The taxpayer’s adjusted
basis for determining gain or loss shall not be further decreased by any
tax credits allowed under this section.
(6) In the case of a credit allowed under this section for purposes
of ORS chapter 316:
(a) A nonresident shall be allowed the credit in the same manner
and subject to the same limitations as a resident. However, the credit
shall be prorated using the proportion provided in ORS 316.117.
(b) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed by this
section shall be prorated or computed in a manner consistent with ORS
314.085.
(c) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
(7) To qualify for the credit the taxpayer must be issued a
certificate by the State Department of Fish and Wildlife.
(8) To obtain credit under subsection (1) of this section, any
person proposing to apply for certification of a fish screening device,
by-pass device or fishway, before installing the fish screening device,
by-pass device or fishway, shall file a request for preliminary
certification with the State Department of Fish and Wildlife. The request
shall be in a form prescribed by the State Department of Fish and
Wildlife. The following conditions shall apply:
(a) Within 30 days of the receipt of a request for preliminary
certification, the State Department of Fish and Wildlife may require, as
a condition precedent to issuance of a preliminary certificate of
approval, the submission of plans and specifications. After examination
thereof, the State Department of Fish and Wildlife may request
corrections and revisions to the plans and specifications. The State
Department of Fish and Wildlife may also require any pertinent
information necessary to determine whether the proposed fish screening
device, by-pass device or fishway is in accordance with State Department
of Fish and Wildlife requirements.
(b) If the State Department of Fish and Wildlife determines that
the proposed fish screening device, by-pass device or fishway is in
accordance with State Department of Fish and Wildlife requirements, it
shall issue a preliminary certificate approving the fish screening
device, by-pass device or fishway. If the State Department of Fish and
Wildlife determines that the fish screening device, by-pass device or
fishway does not comply with State Department of Fish and Wildlife
requirements, the State Department of Fish and Wildlife shall issue an
order denying certification.
(c) If within 90 days of the receipt of plans, specifications or
any subsequently requested revisions or corrections to the plans and
specifications or any other information required pursuant to this
section, the State Department of Fish and Wildlife fails to issue a
preliminary certificate of approval and the State Department of Fish and
Wildlife fails to issue an order denying certification, the preliminary
certificate shall be considered to have been issued. The capital
investment must comply with the plans, specifications and any corrections
or revisions thereto, if any, previously submitted.
(d) Within 30 days from the date of mailing of the order, any
person against whom an order is directed pursuant to paragraph (b) of
this subsection may demand a hearing. The demand shall be in writing,
shall state the grounds for hearing and shall be mailed to the State Fish
and Wildlife Director. The hearing shall be conducted in accordance with
the applicable provisions of ORS chapter 183.
(9) Any fish screening device, by-pass device or fishway that is
installed pursuant to ORS 498.311 (2) is not eligible for the credit
provided in subsection (1) of this section.
(10) Upon completion and pursuant to application for final
certification, final certification shall be issued by the State
Department of Fish and Wildlife if the fish screening device, by-pass
device or fishway was constructed and installed in accordance with State
Department of Fish and Wildlife requirements. Final certification shall
include a statement of the costs of installation as verified by the State
Department of Fish and Wildlife. The credit allowed under this section
shall be claimed first for the tax year of the taxpayer in which final
certification is issued.
(11) Pursuant to the procedures for a contested case under ORS
chapter 183, the State Department of Fish and Wildlife may order the
revocation of the certificate issued under this section of any taxpayer,
if it finds that:
(a) The certificate was obtained by fraud or misrepresentation; or
(b) The holder of the certificate fails to meet State Department of
Fish and Wildlife requirements.
(12) As soon as the order of revocation under this section has
become final the State Department of Fish and Wildlife shall notify the
Department of Revenue of such order.
(13) If the certificate of a fish screening device, by-pass device
or fishway is ordered revoked pursuant to subsection (11) of this
section, all prior tax relief provided to the holder of the certificate
by virtue of the certificate shall be forfeited and the Department of
Revenue shall proceed to collect those taxes not paid by the certificate
holder as a result of the tax relief provided to the holder.
(14) If the certificate of a fish screening device, by-pass device
or fishway is ordered revoked pursuant to subsection (11) of this
section, the certificate holder shall be denied any further relief
provided under this section in connection with the fish screening device,
by-pass device or fishway, as the case may be, from and after the date
that the order of revocation becomes final.
(15) In the event that the fish screening device, by-pass device or
fishway is destroyed by flood, natural disaster or act of God before all
of the credit has been used, the taxpayer may nevertheless claim the
credit as if no destruction had taken place.
(16) Fish screening devices, by-pass devices or fishways that are
financed by funds obtained from the Water Development Fund, pursuant to
ORS 541.700 to 541.855, shall not be eligible for the credit under any
circumstances.
(17) The State Department of Fish and Wildlife shall adopt rules
for carrying out the provisions of this section and report to the interim
committee created under ORS 171.605 to 171.640 to make studies of and
inquiries into state revenue matters. [1993 c.730 §12 (enacted in lieu of
316.139 and 317.145); 2001 c.923 §5] As used in this
section and ORS 315.156:
(1) “Apparently wholesome food” means:
(a) Food fit for human consumption; and
(b) Food that meets all quality and labeling standards imposed by
federal, state or local laws, even though the food may not be readily
marketable due to appearance, age, freshness, grade, size, surplus or
other condition.
(2) “Crop” means an agricultural crop producing food for human
consumption and includes, but is not limited to, bedding plants that
produce food, orchard stock intended for the production of food and
livestock that may be processed into food for human consumption.
(3) “Food bank or other charitable organization” means any
organization located in this state, including but not limited to a
gleaning cooperative, that is exempt from federal income taxes under
section 501(c)(3) of the Internal Revenue Code and that has as a
principal or ongoing purpose the distribution of food to children or
homeless, unemployed, elderly or low-income individuals.
(4) “Grower” includes a person who raises livestock.
(5) “Qualified donation” means the harvest or post-harvest
contribution in Oregon of a crop or a portion of a crop grown primarily
to be sold for cash that is donated by the grower of the crop to a
gleaning cooperative, food bank or other charitable organization engaged
in the distribution of food without charge, at such a time that the crop
is still usable as food for human consumption and:
(a) The grower of the crop has supplied any crop contract quota
with the wholesale or retail buyer;
(b) If the grower of the crop is a party to a contingent supply
contract, the wholesale or retail buyer reduces the crop quota that was
reasonably anticipated to be supplied by the grower; or
(c) The grower of the crop otherwise determines to make a donation
of apparently wholesome food.
(6) “Wholesale market price” means the market price for the produce
determined either by:
(a) The amount paid to the grower by the last previous cash buyer
of the particular crop; or
(b) In the event there is no previous cash buyer, a market price
based upon the market price of the nearest regional wholesale buyer or
the regional u-pick market price. [1993 c.730 §16 (enacted in lieu of
316.089); 1999 c.21 §39; 2001 c.222 §1] (1) A taxpaying individual or
corporation that is a grower of a crop and that makes a qualified
donation of the crop shall be allowed a credit against the taxes
otherwise due under ORS chapter 316 or, if the taxpayer is a corporation,
under ORS chapter 317 or 318, as follows:
(a) In the case of a qualified donation made under circumstances
described in ORS 315.154 (5)(a) or (b), the amount of the credit shall be
10 percent of the value of the quantity of the crop donated computed at
the wholesale market price.
(b) In the case of a qualified donation made under circumstances
described in ORS 315.154 (5)(c), the amount of the credit shall be 10
percent of the value of the quantity of the crop donated computed at the
wholesale market price that the grower would have received had the
quantity of the crop donated been sold or salable.
(2) At the time of donation, the director, supervisor or other
appropriate official of the entity to which a qualified donation is made
shall supply to the grower of the crop donated two copies of a form
prescribed by the Department of Revenue. The forms shall contain:
(a) The name and address of the grower;
(b) The description and quantity of the donated crop;
(c) The signature of the director, supervisor or other appropriate
official of the entity receiving the donated crop verifying that the
produce was or will be distributed to children or homeless, unemployed,
elderly or low-income individuals;
(d) The wholesale market price; and
(e) Other information required by the Department of Revenue by rule.
(3) Tax claim for tax credit shall be substantiated by submission
with the tax return, of the form described in subsection (2) of this
section, a statement verified by the taxpayer that the qualified donation
was made under circumstances described in ORS 315.154 (5) and a copy of
an invoice or other statement identifying the price received by the
grower for the crops of comparable grade or quality if there is a
previous cash buyer. The requirement for substantiation may be waived
partially, conditionally or absolutely, as provided under ORS 315.063.
(4) Any tax credit otherwise allowable under this section that is
not used by the taxpayer in a particular tax year may be carried forward
and offset against the taxpayer’s tax liability for the next succeeding
tax year. Any credit remaining unused in the next succeeding tax year may
be carried forward and used in the second succeeding tax year, and
likewise, any credit not used in that second succeeding tax year may be
carried forward and used in the third succeeding tax year, but may not be
carried forward for any tax year thereafter.
(5)(a) A nonresident individual shall be allowed the credit
computed under this section in the same manner and subject to the same
limitations as the credit allowed a resident by this section. However,
the credit shall be prorated using the proportion provided in ORS 316.117.
(b) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the department terminates the taxpayer’s
taxable year under ORS 314.440, the credit allowed by this section shall
be prorated or computed in a manner consistent with ORS 314.085.
(c) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
[1993 c.730 §18 (enacted in lieu of 316.091, 317.148 and 318.104); 1995
c.54 §5; 1999 c.21 §40; 2001 c.222 §2] As used in ORS
315.163 to 315.172:
(1) “Acquisition costs” means the cost of acquiring buildings,
structures and improvements that constitute or will constitute farmworker
housing. “Acquisition costs” does not include the cost of acquiring land
on which farmworker housing is or will be located.
(2) “Condition of habitability” means a condition that is in
compliance with:
(a) The applicable provisions of the state building code under ORS
chapter 455 and the rules adopted thereunder; or
(b) If determined on or before December 31, 1995, sections 12 and
13, chapter 964, Oregon Laws 1989.
(3) “Contributor” means a person that acquired, constructed,
manufactured or installed farmworker housing or contributed money to
finance a farmworker housing project.
(4) “Eligible costs” includes acquisition costs, finance costs,
construction costs, excavation costs, installation costs and permit costs
and excludes land costs.
(5) “Farmworker” means any person who, for an agreed remuneration
or rate of pay, performs temporary or permanent labor for another in the
production of farm products or in the planting, cultivating or harvesting
of seasonal agricultural crops or in the forestation or reforestation of
lands, including but not limited to the planting, transplanting, tubing,
precommercial thinning and thinning of trees and seedlings, the clearing,
piling and disposal of brush and slash and other related activities.
(6) “Farmworker housing” means housing:
(a) Limited to occupancy by farmworkers and their immediate
families; and
(b) No dwelling unit of which is occupied by a relative of the
owner or operator of the farmworker housing.
(7) “Farmworker housing project” means the acquisition,
construction, installation or rehabilitation of farmworker housing.
(8) “Owner” means a person that owns farmworker housing. “Owner”
does not include a person that only has an interest in the housing as a
holder of a security interest.
(9) “Rehabilitation” means to make repairs or improvements to a
building that improve its livability and are consistent with applicable
building codes.
(10) “Relative” means a brother or sister (whether by the whole or
by half blood), spouse, ancestor (whether by law or by blood), or lineal
descendant of an individual.
(11) “Taxpayer” includes a nonprofit corporation or other person
not subject to tax under ORS chapter 316, 317 or 318. [2003 c.588 §1]
(1) A taxpayer who is the owner or operator of farmworker housing is
allowed a credit against the taxes otherwise due under ORS chapter 316,
if the taxpayer is a resident individual, or against the taxes otherwise
due under ORS chapter 317, if the taxpayer is a corporation. The total
amount of the credit shall be equal to 50 percent of the eligible costs
actually paid or incurred by the taxpayer to complete a farmworker
housing project, to the extent the eligible costs actually paid or
incurred by the taxpayer do not exceed the estimate of eligible costs
approved by the Housing and Community Services Department under ORS
315.167.
(2) A taxpayer who is otherwise eligible to claim a credit under
this section may elect to transfer all or a portion of the credit to a
contributor in the manner provided in ORS 315.169.
(3)(a) The credit allowed under this section may be taken for the
tax year in which the farmworker housing project is completed or in any
of the nine tax years succeeding the tax year in which the project is
completed.
(b) The credit allowed in any one tax year may not exceed 20
percent of the amount determined under subsection (1) of this section.
(4)(a) To claim a credit under this section, a taxpayer must show
in each year following the completion of a farmworker housing project
that the housing continues to be operated as farmworker housing.
(b) A taxpayer need not make the showing required in paragraph (a)
of this subsection if the Housing and Community Services Department
waives the requirement after the taxpayer has successfully met the
requirement for the first five years after completion of the housing
project.
(c) The Housing and Community Services Department shall determine
by rule the factors necessary to grant a waiver. Such factors may include
a documented decline in a particular area for farmworker housing.
(5) The credit shall apply only to a farmworker housing project
that is located within this state and physically begun on or after
January 1, 1990.
(6)(a) A credit may not be allowed under this section unless the
taxpayer claiming credit under this section:
(A) Obtains a letter of credit approval from the Housing and
Community Services Department pursuant to ORS 315.167; and
(B) Files with the Department of Revenue an annual certification
providing that all occupied units for which credit is being claimed are
occupied by farmworkers and their immediate families.
(b) The certification described under this subsection shall be made
on the form and in the time and manner prescribed by the Department of
Revenue.
(7) Except as provided under subsection (8) of this section, the
credit allowed in any one year may not exceed the tax liability of the
taxpayer.
(8) Any tax credit otherwise allowable under this section that is
not used by the taxpayer in a particular tax year may be carried forward
and offset against the taxpayer’s tax liability for the next succeeding
tax year. Any credit remaining unused in the next succeeding tax year may
be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be
carried forward and used in the third succeeding tax year, and any credit
not used in that third succeeding tax year may be carried forward and
used in the fourth succeeding tax year, and any credit not used in that
fourth succeeding tax year may be carried forward and used in the fifth
succeeding tax year, and any credit not used in that fifth succeeding tax
year may be carried forward and used in the sixth succeeding tax year,
and any credit not used in that sixth succeeding tax year may be carried
forward and used in the seventh succeeding tax year, and any credit not
used in that seventh succeeding tax year may be carried forward and used
in the eighth succeeding tax year, and any credit not used in that eighth
succeeding tax year may be carried forward and used in the ninth
succeeding tax year, but may not be carried forward for any tax year
thereafter.
(9)(a) The credit provided by this section is not in lieu of any
depreciation or amortization deduction for the project to which the
taxpayer otherwise may be entitled under ORS chapter 316 or 317 for the
year.
(b) The taxpayer’s adjusted basis for determining gain or loss may
not be further decreased by any tax credits allowed under this section.
(10) For a taxpayer to receive a credit under this section, the
farmworker housing must:
(a) Comply with all occupational safety or health laws, rules,
regulations and standards;
(b) If registration is required, be registered as a farmworker camp
with the Department of Consumer and Business Services under ORS 658.750;
(c) Upon occupancy and if an indorsement is required, be operated
by a person who holds a valid indorsement as a farmworker camp operator
under ORS 658.730; and
(d) Continue to be operated as farmworker housing for a period of
at least 10 years after the completion of the farmworker housing project,
unless a waiver has been granted under subsection (4) of this section.
(11)(a) Pursuant to the procedures for a contested case under ORS
chapter 183, the Department of Revenue may order the disallowance of the
credit allowed under this section if it finds, by order, that:
(A) The credit was obtained by fraud or misrepresentation; or
(B) In the event that an owner or operator claims or claimed the
credit:
(i) The taxpayer has failed to continue to substantially comply
with the occupational safety or health laws, rules, regulations or
standards;
(ii) After occupancy and if registration is required, the
farmworker housing is not registered as a farmworker camp with the
Department of Consumer and Business Services under ORS 658.750;
(iii) After occupancy and if an indorsement is required, the
farmworker housing is not operated by a person who holds a valid
indorsement as a farmworker camp operator under ORS 658.730; or
(iv) The taxpayer has failed to make a showing that the housing
continues to be operated as farmworker housing as required under
subsection (4)(a) of this section and the taxpayer has not been granted a
waiver by the Housing and Community Services Department under subsection
(4)(b) of this section.
(b) If the tax credit is disallowed pursuant to this subsection,
notwithstanding ORS 314.410 or other law, all prior tax relief provided
to the taxpayer shall be forfeited and the Department of Revenue shall
proceed to collect those taxes not paid by the taxpayer as a result of
the prior granting of the credit.
(c) If the tax credit is disallowed pursuant to this subsection,
the taxpayer shall be denied any further credit provided under this
section, in connection with the farmworker housing project, as the case
may be, from and after the date that the order of disallowance becomes
final.
(12) In the event that the farmworker housing is destroyed by fire,
flood, natural disaster or act of God before all of the credit has been
used, the taxpayer may nevertheless claim the credit as if no destruction
had taken place. In the event of fire, if the fire chief of the fire
protection district or unit determines that the fire was caused by arson,
as defined in ORS 164.315 and 164.325, by the taxpayer or by another at
the taxpayer’s direction, then the fire chief shall notify the Department
of Revenue. Upon conviction of arson, the Department of Revenue shall
disallow the credit in accordance with subsection (11) of this section.
(13)(a) A nonresident individual shall be allowed the credit
computed in the same manner and subject to the same limitations as the
credit allowed a resident by this section. However, the credit shall be
prorated using the proportion provided in ORS 316.117.
(b) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed by this
section shall be prorated or computed in a manner consistent with ORS
314.085.
(c) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
(14) The Department of Revenue may adopt rules for carrying out the
provisions of this section. [1993 c.730 §20 (enacted in lieu of 316.154
and 317.146); 1993 c.730 §20a; 1995 c.500 §10; 1995 c.746 §52; 2001 c.613
§13a; 2001 c.625 §2; 2001 c.868 §1; 2003 c.588 §§3,5](1)(a) Prior to six months after beginning a farmworker
housing project:
(A) For which credit under ORS 315.164 will be claimed, an owner or
operator of farmworker housing shall apply to the Housing and Community
Services Department for a letter of credit approval.
(B) For which credit under ORS 315.169 will be claimed, a
contributor shall apply to the Housing and Community Services Department
for a letter of credit approval.
(b) If a portion of credit for a farmworker housing project is to
be claimed by the owner or operator of farmworker housing under ORS
315.164 and the remainder is to be claimed by a contributor under ORS
315.169, the application described in this section shall be filed jointly
by the owner or operator of farmworker housing and the contributor.
(2) The application shall be on such form as is prescribed by the
Housing and Community Services Department and shall provide:
(a) The name, address and taxpayer identification number of the
taxpayer;
(b) The location of the proposed farmworker housing;
(c) A description of the project identifying the type of housing
that is the subject of the project;
(d) An estimate of the eligible costs of the project; and
(e) Any other information as the Housing and Community Services
Department may require.
(3) The Housing and Community Services Department may review
applications using any reasonable system of prioritizing review
established by department rule.
(4) Applications filed in compliance with this section shall be
approved by the Housing and Community Services Department to the extent
that the total of estimated eligible costs for all approved projects for
the calendar year is equal to or less than $7.25 million. No application
shall be approved if the addition of the estimated eligible costs of the
project to the estimated eligible costs for all approved projects for the
calendar year would exceed $7.25 million.
(5) Upon approval of an application, the Housing and Community
Services Department shall prepare a letter of credit approval. The letter
shall state the approved amount of estimated eligible costs for the
project and, if applicable, the portion of credit to be claimed by an
owner or operator of farmworker housing under ORS 315.164 and the portion
of credit to be claimed by a contributor under ORS 315.169. The letter
shall be sent:
(a) To the owner or operator of farmworker housing, if any credit
is to be claimed under ORS 315.164; and
(b) To the contributor, if any credit is to be claimed under ORS
315.169.
(6) At the conclusion of each calendar year, the Housing and
Community Services Department shall send a list of the names, addresses
and taxpayer identification numbers of taxpayers to whom a letter of
credit approval has been issued under this section during the calendar
year, along with approved amounts of estimated eligible costs for each
project, to the Department of Revenue.
(7) Notwithstanding that a letter of credit approval has been
issued to a taxpayer under this section, the Department of Revenue may
disallow, in whole or in part, a claim for credit under ORS 315.164 upon
the Department of Revenue’s determination that under the provisions of
ORS 315.164 the taxpayer is not entitled to the credit or is only
entitled to a portion of the amount claimed. [1995 c.746 §52a; 2001 c.613
§14; 2001 c.625 §3; 2001 c.868 §5; 2003 c.588 §§6a,7](1) A taxpayer that is a contributor is allowed a credit against
the taxes otherwise due under ORS chapter 316, if the taxpayer is a
resident individual, or ORS chapter 317, if the taxpayer is a
corporation, to the extent the owner or operator of farmworker housing
transferred all or a portion of the credit allowed to the owner or
operator under ORS 315.164.
(2) An owner or operator of farmworker housing may transfer all or
a portion of the credit allowed to the owner or operator under ORS
315.164 to one or more contributors but the amount transferred may not
total more than the total credit the owner or operator may claim.
(3) To receive a credit under this section:
(a) The contributor must obtain a letter of credit approval from
the Housing and Community Services Department under ORS 315.167; or
(b) If the owner or operator of farmworker housing elects to
transfer all or a portion of the credit allowed under ORS 315.164 after
the date that a letter of credit approval has been issued to the owner or
operator, the owner or operator and the contributor must jointly file a
statement with the Department of Revenue stating the portion of the
credit the contributor is allowed to claim and any other information the
department may require by rule.
(4) A contributor remains eligible to receive a credit under this
section even if the owner or operator of the farmworker housing becomes
ineligible for the credit as a result of:
(a) Failure to file the annual certification under ORS 315.164 (6);
(b) Failure to continue to substantially comply with occupational
safety or health laws, rules, regulations or standards under ORS 315.164
(10);
(c) Failure to register as a farmworker camp with the Department of
Consumer and Business Services under ORS 658.750;
(d) Failure of the operator to hold a valid indorsement as a
farmworker camp operator under ORS 658.730; or
(e) Failure to comply with any other rules or provisions relating
to the operation or maintenance of the farmworker housing after the
contributor has completed work on the project.
(5)(a) A contributor does not remain eligible to receive a credit
under this section if the Department of Revenue finds, by order of a
disallowance of credit and pursuant to the procedures for a contested
case under ORS chapter 183, that the contributor obtained the credit by
fraud or misrepresentation, including a finding that the housing did not
comply with all occupational safety or health laws, rules, regulations
and standards applicable for farmworker housing at the time the housing
was completed.
(b) If the credit is disallowed pursuant to this subsection,
notwithstanding ORS 314.410 or other law, all prior tax relief provided
to the taxpayer shall be forfeited and the department shall proceed to
collect those taxes not paid by the taxpayer as a result of the prior
granting of the credit.
(c) If the credit is disallowed pursuant to this subsection, the
taxpayer shall be denied any further credit provided under this section,
in connection with the farmworker housing project, as the case may be,
from and after the date that the order of disallowance becomes final.
(6)(a) The credit allowed under this section may be taken for the
tax year in which the farmworker housing project is completed or in any
of the nine tax years succeeding the tax year in which the project is
completed.
(b) The credit allowed in any one tax year may not exceed 20
percent of the amount determined under subsection (2) of this section
that was transferred to the contributor claiming the credit.
(7) Except as provided under subsection (8) of this section, the
credit allowed in any one year may not exceed the tax liability of the
taxpayer.
(8) Any tax credit otherwise allowable under this section that is
not used by the taxpayer in a particular tax year may be carried forward
and offset against the taxpayer’s tax liability for the next succeeding
tax year. Any credit remaining unused in such next succeeding tax year
may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be
carried forward and used in the third succeeding tax year, and any credit
not used in that third succeeding tax year may be carried forward and
used in the fourth succeeding tax year, and any credit not used in that
fourth succeeding tax year may be carried forward and used in the fifth
succeeding tax year, and any credit not used in that fifth succeeding tax
year may be carried forward and used in the sixth succeeding tax year,
and any credit not used in that sixth succeeding tax year may be carried
forward and used in the seventh succeeding tax year, and any credit not
used in that seventh succeeding tax year may be carried forward and used
in the eighth succeeding tax year, and any credit not used in that eighth
succeeding tax year may be carried forward and used in the ninth
succeeding tax year, but may not be carried forward for any tax year
thereafter.
(9)(a) A nonresident individual shall be allowed the credit
computed in the same manner and subject to the same limitations as the
credit allowed a resident by this section. However, the credit shall be
prorated using the proportion provided in ORS 316.117.
(b) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the department terminates the taxpayer’s
taxable year under ORS 314.440, the credit allowed by this section shall
be prorated or computed in a manner consistent with ORS 314.085.
(c) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
(10) The department may adopt rules for carrying out the provisions
of this section. [2001 c.868 §3; 2003 c.588 §§9,11]Upon an order of the disallowance of a credit for farmworker
housing under ORS 315.164 (11) or 315.169 (5), the Department of Revenue
immediately shall collect any taxes due by reason of the disallowance and
shall have the benefit of all the laws of this state pertaining to the
collection of income and excise taxes. An assessment of the taxes is not
necessary and a statute of limitation shall not preclude the collection
of the taxes. [2001 c.868 §4; 2003 c.588 §15]CHILDREN AND FAMILIES; POVERTY RELIEF (1) A credit against the taxes
otherwise due under ORS chapter 316 (or, if the taxpayer is a
corporation, under ORS chapter 317 or 318) shall be allowed to a resident
employer or to a corporation that is an employer for amounts paid or
incurred during the taxable year by the employer for dependent care
assistance actually provided to an employee if the assistance is
furnished pursuant to a program which meets the requirements of section
129(d) of the Internal Revenue Code and if the employer has received a
certificate as provided in subsection (2) of this section.
(2)(a) Each employer that elects to receive a credit allowed under
subsection (1) of this section must submit an application to the Child
Care Division of the Employment Department each year the employer wishes
to receive the credit. The Child Care Division shall prescribe by rule
the form of the application and the information required to be given on
the application.
(b) The Child Care Division shall issue a certificate to each
employer that submits an application under this subsection.
(3) The amount of the credit allowed under subsection (1) of this
section shall be 50 percent of the amount so paid or incurred by the
employer during the taxable year but shall not exceed $2,500 of dependent
care assistance actually provided to the employee.
(4)(a) A credit against the taxes otherwise due under ORS chapter
316 (or, if the taxpayer is a corporation, under ORS chapter 317 or 318)
shall be allowed to a resident employer, or to a corporation that is an
employer, based upon amounts paid or incurred by the employer during the
taxable year to provide information and referral services to assist
employees of the employer employed within this state to obtain dependent
care.
(b) The amount of the credit allowed under this subsection shall be
50 percent of the amounts paid or incurred during the taxable year.
(5) No amount paid or incurred during the taxable year of an
employer in providing dependent care assistance to any employee shall
qualify for the credit allowed under subsection (1) of this section if
the amount was paid or incurred to an individual described in section
129(c)(1) or (2) of the Internal Revenue Code.
(6) No amount paid or incurred by an employer to provide dependent
care assistance to an employee shall qualify for the credit allowed under
subsection (1) of this section if the amount paid or incurred is paid or
incurred pursuant to a salary reduction plan or is not paid or incurred
for services performed within this state.
(7) If the credit allowed under subsection (1) or (4) of this
section is claimed, the amount of any deduction allowed or allowable
under ORS chapter 316, 317 or 318 for the amount that qualifies for the
credit (or upon which the credit is based) shall be reduced by the dollar
amount of the credit allowed. The election to claim a credit allowed
under this section shall be made at the time of filing the tax return in
accordance with any rules adopted by the Department of Revenue.
(8) The amount upon which the credit allowed under subsection (1)
of this section is based shall not be included in the gross income of the
employee to whom the dependent care assistance is provided. However, the
amount excluded from the income of an employee under this section shall
not exceed the limitations provided in section 129(b) of the Internal
Revenue Code. For purposes of ORS 316.162, with respect to an employee to
whom dependent care assistance is provided, “wages” does not include any
amount excluded under this subsection. Amounts excluded under this
subsection shall not qualify as expenses for which a credit is allowed to
the employee under ORS 316.078.
(9) A nonresident shall be allowed the credit allowed under
subsection (1) or (4) of this section. The credit shall be computed in
the same manner and be subject to the same limitations as the credit
granted to a resident.
(10) If a change in the taxable year of the taxpayer occurs as
described in ORS 314.085, or if the department terminates the taxpayer’s
taxable year under ORS 314.440, the credit allowed by this section shall
be prorated or computed in a manner consistent with ORS 314.085.
(11) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
(12) Any tax credit otherwise allowable under this section which is
not used by the taxpayer in a particular year may be carried forward and
offset against the taxpayer’s tax liability for the next succeeding tax
year. Any credit remaining unused in such next succeeding tax year may be
carried forward and used in the second succeeding tax year, and likewise
any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not
used in that third succeeding tax year may be carried forward and used in
the fourth succeeding tax year, and any credit not used in that fourth
succeeding tax year may be carried forward and used in the fifth
succeeding tax year, but may not be carried forward for any tax year
thereafter.
(13) For purposes of the credit allowed under subsection (1) or (4)
of this section:
(a) The definitions and special rules contained in section 129(e)
of the Internal Revenue Code shall apply to the extent applicable.
(b) “Employer” means an employer carrying on a business, trade,
occupation or profession in this state.
(14) In the case of an on-site facility, in accordance with any
rules adopted by the department, the amount upon which the credit allowed
under subsection (1) of this section is based, with respect to any
dependent, shall be based upon utilization and the value of the services
provided. [1993 c.730 §22 (enacted in lieu of 316.134, 317.135 and
318.175); 1995 c.79 §163; 1997 c.839 §65; 2001 c.674 §14]Note: Section 10, chapter 682, Oregon Laws 1987, provides:
Sec. 10. ORS 315.204 applies to tax years beginning on or after
January 1, 1988, and before January 1, 2017. [1987 c.682 §10; 1991 c.929
§3; 2001 c.674 §1; 2005 c.485 §1] (1) A credit against the taxes
otherwise due under ORS chapter 316 (or, if the taxpayer is a corporation
that is an employer, under ORS chapter 317 or 318) is allowed to an
employer, based upon costs actually paid or incurred by the employer, to
acquire, construct, reconstruct, renovate or otherwise improve real
property so that the property may be used primarily as a dependent care
facility.
(2) The credit allowed under this section shall be the lesser of:
(a) $2,500, multiplied by the number of full-time equivalent
employees employed by the employer (on the property or within such
proximity to the property that any dependents of the employees may be
cared for in the facility) on any date within the two years immediately
preceding the end of the first tax year for which credit is first
claimed; or
(b) Fifty percent of the cost of the acquisition, construction,
reconstruction, renovation or other improvement; or
(c) $100,000.
(3) To qualify for the credit allowed under subsection (1) of this
section:
(a) The amounts paid or incurred by the employer for the
acquisition, construction, reconstruction, renovation or other
improvement to real property may be paid or incurred either:
(A) To another to be used to acquire, construct, reconstruct,
renovate or otherwise improve real property to the end that it may be
used as a dependent care facility with which the employer contracts to
make dependent care assistance payments which payments are wholly or
partially entitled to exclusion from income of the employee for federal
tax purposes under section 129 of the Internal Revenue Code; or
(B) To acquire, construct, reconstruct, renovate or otherwise
improve real property to the end that it may be operated by the employer,
or a combination of employers, to provide dependent care assistance to
the employees of the employer under a program or programs under which the
assistance is, under section 129 of the Internal Revenue Code, wholly or
partially excluded from the income of the employee.
(b) The property must be in actual use as a dependent care facility
on the last day of the tax year for which credit is claimed and dependent
care services assisted by the employer must take place on the acquired,
constructed, reconstructed, renovated or improved property and must be
entitled to an exclusion (whole or partial) from the income of the
employee for federal tax purposes under section 129 of the Internal
Revenue Code on the last day of the tax year for which credit is claimed.
(c) The person or persons operating the dependent care facility on
the property acquired, constructed, reconstructed, renovated or improved
must hold a certification (temporary or not) issued under ORS 657A.030
and 657A.250 to 657A.450 by the Child Care Division to operate the
facility on the property on the last day of the tax year of any tax year
in which credit under this section is claimed.
(d) The dependent care facility acquired, constructed,
reconstructed, renovated or otherwise improved must be located in Oregon.
No credit shall be allowed under this section if the dependent care
facility is not acquired, constructed, reconstructed, renovated or
improved to accommodate six or more children.
(e) The employer must meet any other requirements or furnish any
information, including information furnished by the employees or person
operating the dependent care facility, to the Department of Revenue that
the department requires under its rules to carry out the purposes of this
section.
(f) The dependent care facility, the costs of the acquisition,
construction, reconstruction, renovation or improvement upon which the
credit granted under this section is based, must be placed in operation
before January 1, 2002.
(4) The total amount of the costs upon which the credit allowable
under this section is based, and the total amount of the credit, shall be
determined by the employer, subject to any rules adopted by the
department, during the tax year in which the property acquired,
constructed, reconstructed, renovated or otherwise improved is first
placed in operation as a dependent care facility certified by the Child
Care Division under ORS 657A.030 and 657A.250 to 657A.450. One-tenth of
the total credit is allowable in that tax year and one-tenth of the total
credit is allowable in each succeeding tax year, not to exceed nine tax
years, thereafter. No credit shall be allowed under this section for any
tax year at the end of which the dependent care facility is not in actual
operation under a current certification (temporary or not) issued by the
Child Care Division nor shall any credit be allowed for any tax year at
the end of which the employer is not providing dependent care assistance
entitled to exclusion (whole or partial) from employee income for federal
tax purposes under section 129 of the Internal Revenue Code for dependent
care on the property. Any tax credit allowable under this section in a
tax year may be carried forward in the same manner and to the same tax
years as if it were a tax credit described in ORS 315.204.
(5) Nothing in this section shall affect the computation of
depreciation or basis of a dependent care facility. If a deduction is
allowed for purposes of ORS chapter 316, 317 or 318 for the amounts paid
or incurred upon which the credit under this section is based, the
deduction shall be reduced by the dollar amount of the credit granted
under this section.
(6) For purposes of the credit allowed under this section:
(a) The definitions and special rules contained in section 129(e)
of the Internal Revenue Code shall apply to the extent applicable.
(b) “Employer” means a resident, part-year resident or full-year
nonresident employer carrying on a business, trade, occupation or
profession in this state.
(7) The department shall require that evidence that the person
operating the dependent care facility on the date that the taxpayer’s tax
year ends holds a current certification (temporary or otherwise) to
operate the facility accompany the tax return on which any amount of tax
credit granted under this section is claimed, or that such evidence be
separately furnished. If the evidence is not so furnished, no credit
shall be allowed for the tax year for which the evidence is not
furnished. The Child Care Division shall cooperate by making such
evidence, in an appropriate form, available to the person operating the
facility, if the person is currently certified (temporary or not) so
that, if necessary, it may be made available to the taxpayer. [1993 c.730
§24 (enacted in lieu of 316.132, 317.114 and 318.160); 1997 c.325 §37;
1997 c.839 §66; 1999 c.743 §21] (1) A credit against the
taxes otherwise due under ORS chapter 316 or, if the taxpayer is a
corporation, under ORS chapter 317 or 318 is allowed to a taxpayer for
certified contributions made to the Child Care Division under ORS
657A.706.
(2) The amount of a tax credit available to a taxpayer for a tax
year under this section shall equal the amount stated in the tax credit
certificate received under ORS 657A.706.
(3) The credit allowed under this section may not exceed the tax
liability of the taxpayer for the tax year in which the credit is claimed.
(4) If the amount claimed as a credit under this section is allowed
as a deduction for federal tax purposes, the amount allowed as a credit
under this section shall be added to federal taxable income for Oregon
tax purposes.
(5) A credit under this section may be claimed by a nonresident or
part-year resident without proration.
(6) Any tax credit otherwise allowable under this section that is
not used by the taxpayer in a particular tax year may be carried forward
and offset against the taxpayer’s tax liability for the next succeeding
tax year. Any credit remaining unused in the next succeeding tax year may
be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be
carried forward and used in the third succeeding tax year, and any credit
not used in that third succeeding tax year may be carried forward and
used in the fourth succeeding tax year, but may not be carried forward
for any tax year thereafter.
(7) The definitions in ORS 657A.700 apply to this section. [2001
c.674 §10; 2003 c.473 §8]Note: Section 13, chapter 674, Oregon Laws 2001, provides:
Sec. 13. ORS 315.213 applies to tax years beginning on or after
January 1, 2002, and before January 1, 2009. [2001 c.674 §13; 2003 c.473
§9] (1) As
used in this section, “qualified scholarship” means a scholarship that
meets the criteria set forth or incorporated into the letter of employee
and dependent scholarship program certification issued by the Oregon
Student Assistance Commission under ORS 348.618.
(2) A credit against the taxes otherwise due under ORS chapter 316
is allowed to a resident employer (or, if the taxpayer is a corporation
that is an employer, under ORS chapter 317 or 318) that has received:
(a) Program certification from the Oregon Student Assistance
Commission under ORS 348.618; and
(b) Tax credit certification under ORS 348.621 for the calendar
year in which the tax year of the taxpayer begins.
(3) The amount of the credit allowed to a taxpayer under this
section shall equal 50 percent of the amount of qualified scholarship
funds actually paid to or on behalf of qualified scholarship recipients
during the tax year.
(4) The credit allowed under this section may not exceed the tax
liability of the taxpayer for the tax year.
(5) The credit allowed to a taxpayer for a tax year under this
section may not exceed $50,000.
(6) Any tax credit otherwise allowable under this section that is
not used by the taxpayer in a particular year may be carried forward and
offset against the taxpayer’s tax liability for the next succeeding tax
year. Any credit remaining unused in the next succeeding tax year may be
carried forward and used in the second succeeding tax year, and likewise
any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not
used in that third succeeding tax year may be carried forward and used in
the fourth succeeding tax year, and any credit not used in that fourth
succeeding tax year may be carried forward and used in the fifth
succeeding tax year, but may not be carried forward for any tax year
thereafter.
(7) In the case of a credit allowed under this section for purposes
of ORS chapter 316:
(a) A nonresident shall be allowed the credit under this section in
the proportion provided in ORS 316.117.
(b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
(c) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed under this
section shall be prorated or computed in a manner consistent with ORS
314.085.
(8) The credit shall be claimed on the form and in the time and
manner in which the department shall prescribe. If the taxpayer is
required to do so by the department, the taxpayer shall file a copy of
the letter of tax credit certification issued by the commission with the
taxpayer’s return for the tax year in which a credit under this section
is claimed. [2001 c.475 §8] (1) A business tax credit
against the taxes otherwise due under ORS chapter 316 (or, if the
taxpayer is a corporation, under ORS chapter 317 or 318) shall be allowed
to an eligible taxpayer who sponsors eligible students who began
participation in the youth apprenticeship program established under ORS
344.745 and 344.750 prior to November 4, 1993. The amount of the credit
shall be the wages paid to participating students by the sponsoring
employer taxpayer during the tax year, excluding wages paid after the
first year of participation, and in an amount not to exceed $2,500 in any
one tax year.
(2)(a) A nonresident employer shall be allowed the credit provided
under this section computed in the same manner and subject to the same
limitations as the credit allowed to a resident of this state. However,
the credit shall be prorated using the proportion provided in ORS 316.117.
(b) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed by this
section shall be prorated or computed in a manner consistent with ORS
314.085.
(c) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
(3) Any tax credit otherwise allowable under this section which is
not used by the taxpayer in a particular year may be carried forward and
offset against the taxpayer’s tax liability for the next succeeding tax
year. Any credit remaining unused in such next succeeding tax year may be
carried forward and used in the second succeeding tax year, but may not
be carried forward for any tax year thereafter.
(4)(a) The credit allowed under this section is in addition to any
deduction otherwise allowable under ORS chapter 316, 317 or 318.
(b) No other credit allowed under this chapter or ORS chapter 316,
317 or 318 shall be based upon all or any portion of amounts upon which
the credit allowed under this section is based. [1993 c.730 §28 (enacted
in lieu of 316.151, 317.141 and 318.085)] (1) The tax credits provided
under this section may be referred to as the First Break Program.
(2) As used in this section:
(a) “Certificate” means a certificate issued by a community-based
organization under subsection (5) of this section that certifies an
individual as a qualified youth.
(b) “Community-based organization” means an organization designated
by the Employment Department by rule as an organization authorized to
certify individuals as qualified youths for purposes of this section,
including all local commissions on children and families, schools or
class groups offering alternative education programs under ORS 336.615 to
336.665, the federal Job Corps, school districts and the Youth Employment
and Empowerment Coalition.
(c) “Employer” means an employer subject to taxation under ORS
chapter 316, 317 or 318.
(d) “Hiring date” means the date on which the individual begins
work for the first employer after becoming a qualified youth.
(e) “Qualified youth” or “qualified youth employee” means an
individual who is 14 to 23 years of age on the hiring date and who has
received a certificate pursuant to subsection (5) of this section from a
community-based organization identifying the youth as eligible to
participate in the First Break Program according to rules adopted by the
Employment Department.
(f) “Sustained employment” means employment:
(A)(i) Of at least six months during the 12-month period following
the hiring date; and
(ii) By three or fewer employers during the 12-month period
following the hiring date; or
(B) Of a full-time student for at least two months during the
period between May 1 and September 15.
(3)(a) A credit against the taxes otherwise due under ORS chapter
316 (or, if the taxpayer is a corporation that is an employer, under ORS
chapter 317 or 318) is allowed to a resident employer, based upon wages
actually paid by the employer to a qualified youth employee.
(b) The credit allowed under this subsection shall be allowed for
the tax year in which ends the 12-month period following the hiring date
of the qualified youth employee. Nothing in this paragraph shall be
interpreted to require the employer to employ the qualified youth for the
entire 12-month period in order to be eligible for the credit under this
subsection.
(4) The amount of the credit provided under subsection (3) of this
section shall be equal to the lesser of:
(a) $1,000;
(b) The amount of credit provided for in paragraph (a) of this
subsection that has not already been taken into account by a previous
employer of the qualified youth employee; or
(c) 50 percent of the wages paid to the qualified youth employee
during the 12-month period following the qualified youth employee’s
hiring date.
(5)(a) The Employment Department shall authorize each
community-based organization to issue only a fixed number of
certificates, the amount to be determined by the Employment Department,
but not to exceed 1,500 certificates.
(b) Each certificate is valid only for a two-year period from the
date it is issued to a qualified youth by a community-based organization.
(c) A community-based organization shall track the use of each
certificate issued by it to a qualified youth and, if the youth is
employed by more than one employer during the time the certificate is
issued, shall calculate the amount of maximum credit allowable under
subsection (4) of this section and shall inform each subsequent employer
of the maximum amount of credit under this section to which the employer
may be entitled.
(d) If the community-based organization determines that the
qualified youth is unable or unwilling to find or maintain sustained
employment, the community-based organization shall cancel the certificate
and inform the Employment Department of the cancellation. Upon
cancellation of a certificate, the Employment Department may authorize
any community-based organization to issue a new certificate to a
qualified youth, provided that the total number of outstanding
certificates and unissued certificates authorized to be issued does not
exceed 1,500.
(e) If the community-based organization determines that all of the
employers of a qualified youth are collectively entitled to 80 percent or
more of the tax credit provided under this section at the time the
qualified youth becomes unemployed, the community-based organization
shall withdraw the certificate, and any subsequent employer shall not be
entitled to a credit under this section for employment of the qualified
youth. A certificate that is withdrawn under this paragraph shall not be
reissued.
(f) No certificate may be issued under this subsection on or after
January 1, 2005.
(6) Wages taken into account for purposes of subsection (4) of this
section shall not include any amount paid by the employer to an
individual for whom the employer receives federal funds for on-the-job
training of the individual.
(7) Only one employer at a time shall be eligible for the credit
provided under this section for the employment of a qualified youth
employee.
(8)(a) A nonresident shall be allowed the credit provided under
subsection (3) of this section computed in the same manner and subject to
the same limitations as the credit allowed to a resident of this state.
However, the credit shall be prorated using the proportion provided in
ORS 316.117.
(b) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed by
subsection (3) of this section shall be prorated or computed in a manner
consistent with ORS 314.085.
(c) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
subsection (3) of this section shall be determined in a manner consistent
with ORS 316.117.
(9) Any tax credit otherwise allowable under this section that is
not used by the taxpayer in a particular tax year may be carried forward
and offset against the taxpayer’s tax liability for the next succeeding
tax year. Any credit remaining unused in such next succeeding tax year
may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be
carried forward and used in the third succeeding tax year, and any credit
not used in that third succeeding tax year may be carried forward and
used in the fourth succeeding tax year, and any credit not used in that
fourth succeeding tax year may be carried forward and used in the fifth
succeeding tax year, but may not be carried forward for any tax year
thereafter.
(10)(a) The credit allowed under subsection (3) of this section is
in addition to any deduction otherwise allowable under ORS chapter 316,
317 or 318.
(b) No other credit allowed under this chapter or ORS chapter 316,
317 or 318 shall be based upon all or any portion of amounts upon which
the credit allowed under subsection (3) of this section is based.
(11) An employer receiving a credit under subsection (3) of this
section shall maintain records for each qualified youth employee
establishing that the employee was certified by a community-based
organization as a qualified youth on or before the hiring date. The
records shall be retained for a period of four years after the tax year
in which a credit provided under subsection (3) of this section is taken.
(12) The Employment Department shall adopt rules that:
(a) Provide the criteria by which a youth may be identified as
eligible to participate in the First Break Program.
(b) Designate community-based organizations that may issue the
certificates described in subsection (5) of this section, including all
local commissions on children and families, schools and class groups
offering alternative education programs, the federal Jobs Corps, school
districts and the Youth Employment and Empowerment Coalition. [1995 c.648
§2; 1997 c.325 §38; 1999 c.59 §78; 1999 c.741 §1] (1) As used in this section:
(a) “Child care” means care provided to a qualifying child of the
taxpayer for the purpose of allowing the taxpayer to be gainfully
employed, to seek employment or to attend school on a full-time or
part-time basis, except that the term does not include care provided by:
(A) The child’s parent or guardian, unless the care is provided in
a certified or registered child care facility; or
(B) A person who has a relationship to the taxpayer that is
described in section 152(a) of the Internal Revenue Code who has not yet
attained 19 years of age at the close of the tax year.
(b) “Child care expenses” means the costs associated with providing
child care to a qualifying child of a qualified taxpayer.
(c) “Earned income” has the meaning given that term in section 32
of the Internal Revenue Code.
(d) “Qualified taxpayer” means a taxpayer:
(A) Who is an Oregon resident with at least $6,000 of earned income
for the tax year or who is a nonresident of Oregon with at least $6,000
of earned income from Oregon sources for the tax year;
(B) With federal adjusted gross income for the tax year that does
not exceed 250 percent of the federal poverty level;
(C) With Oregon adjusted gross income for the tax year that does
not exceed 250 percent of the federal poverty level; and
(D) Who does not have more than the maximum amount of disqualified
income under section 32(i) of the Internal Revenue Code that is allowed
to a taxpayer entitled to the earned income tax credit for federal tax
purposes.
(e) “Qualifying child” has the meaning given that term in section
152 of the Internal Revenue Code except that it is limited to an
individual who is under 13 years of age, or who is a disabled child, as
that term is defined in ORS 316.099.
(2) A qualified taxpayer shall be allowed a credit against the
taxes otherwise due under ORS chapter 316 equal to the applicable
percentage of the qualified taxpayer’s child care expenses (rounded to
the nearest $50).
(3) The applicable percentage to be used in calculating the amount
of the credit provided in this section shall be determined in accordance
with the following table:
___________________________________________________________________________
___Applicable Greater of Oregon
Percentage Adjusted Gross Income or
Federal Adjusted
Gross Income, as Percent
of Federal Poverty Level
40 200 or less
36 Greater than 200 and less than
or equal to 210
32 Greater than 210 and less than
or equal to 220
24 Greater than 220 and less than
or equal to 230
16 Greater than 230 and less than
or equal to 240
8 Greater than 240 and less than
or equal to 250
0 Greater than 250 percent
of federal poverty level
___________________________________________________________________________
___ (4) The Department of Revenue may prescribe the form used to claim
a credit and the information required on the form.
(5) In the case of a credit allowed under this section:
(a) A nonresident shall be allowed the credit under this section in
the proportion provided in ORS 316.117.
(b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
(c) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed under this
section shall be prorated or computed in a manner consistent with ORS
314.085.
(d) In the case of a qualified taxpayer who is married, a credit
shall be allowed under this section only if:
(A) The taxpayer files a joint return;
(B) The taxpayer files a separate return and is legally separated
or subject to a separate maintenance agreement; or
(C) The taxpayer files a separate return and the taxpayer and the
taxpayer’s spouse reside in separate households on the last day of the
tax year with the intent of remaining in separate households in the
future.
(6) If the amount allowable as a credit under this section, when
added to the sum of the amounts allowable as payment of tax under ORS
316.187 (withholding), ORS 316.583 (estimated tax), other tax prepayment
amounts and other refundable credit amounts, exceeds the taxes imposed by
ORS chapters 314 and 316 for the tax year (reduced by any nonrefundable
credits allowable for purposes of ORS chapter 316 for the tax year), the
amount of the excess shall be refunded to the taxpayer as provided in ORS
316.502.
(7)(a) The minimum amount of earned income a taxpayer must earn in
order to be a qualified taxpayer shall be adjusted for tax years
beginning in each calendar year by multiplying $6,000 by the ratio of the
monthly averaged U.S. City Average Consumer Price Index for the 12
consecutive months ending August 31 of the prior calendar year over the
monthly averaged index for the second quarter of the calendar year 1998.
(b) As used in this subsection, “U.S. City Average Consumer Price
Index” means the U.S. City Average Consumer Price Index for All Urban
Consumers (All Items) as published by the Bureau of Labor Statistics of
the United States Department of Labor.
(c) If any adjustment determined under paragraph (a) of this
subsection is not a multiple of $50, the adjustment shall be rounded to
the nearest multiple of $50.
(d) Notwithstanding paragraphs (a) to (c) of this subsection, the
adjusted minimum amount of earned income a taxpayer must earn may not
exceed the amount an individual would earn if the individual worked 1,040
hours at the minimum wage established under ORS 653.025 and in effect on
January 1 of the calendar year in which begins the tax year of the
taxpayer, rounded to the next lower multiple of $50. [1997 c.692 §2; 1999
c.998 §1; 2001 c.114 §32; 2001 c.660 §10; 2001 c.867 §1; 2003 c.46 §33;
2003 c.473 §11; 2005 c.49 §1; 2005 c.832 §25]Note: Section 2, chapter 49, Oregon Laws 2005, provides:
Sec. 2. The amendments to ORS 315.262 by section 1 of this 2005 Act
apply to tax years beginning on or after January 1, 2005. [2005 c.49 §2] (1) In addition to any other credit
available for purposes of ORS chapter 316, an eligible resident
individual shall be allowed a credit against the tax otherwise due under
ORS chapter 316 for the tax year in an amount equal to five percent of
the earned income credit allowable to the individual for the same tax
year under section 32 of the Internal Revenue Code.
(2) An eligible nonresident individual shall be allowed the credit
computed in the same manner and subject to the same limitations as the
credit allowed a resident by subsection (1) of this section. However, the
credit shall be prorated using the proportion provided in ORS 316.117.
(3) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed by this
section shall be prorated or computed in a manner consistent with ORS
314.085.
(4) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
(5) If the amount allowable as a credit under this section, when
added to the sum of the amounts allowable as payment of tax under ORS
316.187 or 316.583, other tax prepayment amounts and other refundable
credit amounts, exceeds the taxes imposed by ORS chapters 314 and 316 for
the tax year after application of any nonrefundable credits allowable for
purposes of ORS chapter 316 for the tax year, the amount of the excess
shall be refunded to the taxpayer as provided in ORS 316.502.
(6) The Department of Revenue may adopt rules for purposes of this
section, including but not limited to rules relating to proof of
eligibility and the furnishing of information regarding the federal
earned income credit claimed by the taxpayer for the tax year.
(7) Refunds attributable to the earned income credit allowed under
this section shall not bear interest. [1997 c.692 §3; 2001 c.114 §33;
2001 c.660 §56; 2003 c.77 §12; 2005 c.832 §54]Note 1: The amendments to 315.266 by section 54, chapter 832, Oregon Laws
2005, apply to tax years beginning on or after January 1, 2006. See
section 56, chapter 832, Oregon Laws 2005. The text that applies to tax
years beginning before January 1, 2006, is set forth for the user’s
convenience.
315.266. (1) In addition to any other credit available for purposes
of ORS chapter 316, an eligible resident individual shall be allowed a
credit against the tax otherwise due under ORS chapter 316 for the tax
year in an amount equal to five percent of the earned income credit
allowable to the individual for the same tax year under section 32 of the
Internal Revenue Code.
(2) An eligible nonresident individual shall be allowed the credit
computed in the same manner and subject to the same limitations as the
credit allowed a resident by subsection (1) of this section. However, the
credit shall be prorated using the proportion provided in ORS 316.117.
(3) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed by this
section shall be prorated or computed in a manner consistent with ORS
314.085.
(4) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
(5) The credit allowed under this section may not exceed the tax
liability of the taxpayer and may not be carried forward to a succeeding
tax year.
(6) The Department of Revenue may adopt rules for purposes of this
section, including but not limited to rules relating to proof of
eligibility and the furnishing of information regarding the federal
earned income credit claimed by the taxpayer for the tax year.
(7) Refunds attributable to the earned income credit allowed under
this section shall not bear interest.Note 2: The amendments to 315.266 by section 57, chapter 832, Oregon Laws
2005, apply to tax years beginning on or after January 1, 2008. See
section 58, chapter 832, Oregon Laws 2005. The text that applies to tax
years beginning on or after January 1, 2008, and before January 1, 2011,
is set forth for the user’s convenience.
315.266. (1) In addition to any other credit available for purposes
of ORS chapter 316, an eligible resident individual shall be allowed a
credit against the tax otherwise due under ORS chapter 316 for the tax
year in an amount equal to six percent of the earned income credit
allowable to the individual for the same tax year under section 32 of the
Internal Revenue Code.
(2) An eligible nonresident individual shall be allowed the credit
computed in the same manner and subject to the same limitations as the
credit allowed a resident by subsection (1) of this section. However, the
credit shall be prorated using the proportion provided in ORS 316.117.
(3) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed by this
section shall be prorated or computed in a manner consistent with ORS
314.085.
(4) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
(5) If the amount allowable as a credit under this section, when
added to the sum of the amounts allowable as payment of tax under ORS
316.187 or 316.583, other tax prepayment amounts and other refundable
credit amounts, exceeds the taxes imposed by ORS chapters 314 and 316 for
the tax year after application of any nonrefundable credits allowable for
purposes of ORS chapter 316 for the tax year, the amount of the excess
shall be refunded to the taxpayer as provided in ORS 316.502.
(6) The Department of Revenue may adopt rules for purposes of this
section, including but not limited to rules relating to proof of
eligibility and the furnishing of information regarding the federal
earned income credit claimed by the taxpayer for the tax year.
(7) Refunds attributable to the earned income credit allowed under
this section shall not bear interest.Note 3: The amendments to 315.266 by section 59, chapter 832, Oregon Laws
2005, apply to tax years beginning on or after January 1, 2011. See
section 61, chapter 832, Oregon Laws 2005. The text that applies to tax
years beginning on or after January 1, 2011, is set forth for the user’s
convenience.
315.266. (1) In addition to any other credit available for purposes
of ORS chapter 316, an eligible resident individual shall be allowed a
credit against the tax otherwise due under ORS chapter 316 for the tax
year in an amount equal to six percent of the earned income credit
allowable to the individual for the same tax year under section 32 of the
Internal Revenue Code.
(2) An eligible nonresident individual shall be allowed the credit
computed in the same manner and subject to the same limitations as the
credit allowed a resident by subsection (1) of this section. However, the
credit shall be prorated using the proportion provided in ORS 316.117.
(3) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed by this
section shall be prorated or computed in a manner consistent with ORS
314.085.
(4) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
(5) The credit allowed under this section may not exceed the tax
liability of the taxpayer and may not be carried forward to a succeeding
tax year.
(6) The Department of Revenue may adopt rules for purposes of this
section, including but not limited to rules relating to proof of
eligibility and the furnishing of information regarding the federal
earned income credit claimed by the taxpayer for the tax year.
(7) Refunds attributable to the earned income credit allowed under
this section shall not bear interest. (1) A credit against taxes
otherwise due under ORS chapter 316, 317 or 318 shall be allowed for
donations to a fiduciary organization for distribution to individual
development accounts established under ORS 458.685. The credit shall
equal the lesser of $75,000 or 75 percent of the donation amount.
(2) If a credit allowed under this section is claimed, the amount
upon which the credit is based that is allowed or allowable as a
deduction from federal taxable income under section 170 of the Internal
Revenue Code shall be added to federal taxable income in determining
Oregon taxable income. As used in this subsection, the amount upon which
a credit is based is the allowed credit divided by 75 percent.
(3) The allowable tax credit that may be used in any one tax year
shall not exceed the tax liability of the taxpayer.
(4) Any tax credit otherwise allowable under this section that is
not used by the taxpayer in a particular year may be carried forward and
offset against the taxpayer’s tax liability for the next succeeding tax
year. Any tax credit remaining unused in the next succeeding tax year may
be carried forward and used in the second succeeding tax year. Any tax
credit not used in the second succeeding tax year may be carried forward
and used in the third succeeding tax year, but may not be carried forward
for any tax year thereafter. [1999 c.1000 §12; 2001 c.648 §1] (1) An
individual taxpayer shall be allowed a credit against the taxes that are
otherwise due under ORS chapter 316 if, during the tax year:
(a) The taxpayer purchased a primary residence;
(b) All or a part of the usual and reasonable settlement, financing
or other closing costs for the purchase were funded from a withdrawal
from an individual development account in which the taxpayer is the
account holder; and
(c) An approved purpose of the account is the purpose described in
ORS 458.685 (1)(d).
(2) The amount of the tax credit shall be the lesser of:
(a) The amount of the withdrawal from the individual development
account that is for the purpose described in ORS 458.685 (1)(d);
(b) The amount of usual and reasonable settlement, financing and
other closing costs incurred in the purchase of the primary residence;
(c) $2,000; or
(d) The tax liability of the taxpayer.
(3) A tax credit allowed under this section that is unused may not
be carried forward to a succeeding tax year.
(4) A tax credit under this section may be claimed by a nonresident
or a part-year resident without proration.
(5) The definitions in ORS 458.670 apply to this section. [2005
c.575 §2]Note: Section 3, chapter 575, Oregon Laws 2005, provides:
Sec. 3. Section 2 of this 2005 Act [315.272] applies to tax years
beginning on or after January 1, 2006. [2005 c.575 §3] (1) For purposes of this
section, “qualified adoption expenses” has the meaning given that term in
section 23 of the Internal Revenue Code.
(2) A taxpayer shall be allowed a credit against the taxes
otherwise due under ORS chapter 316 in an amount determined under
subsection (3) of this section for qualified adoption expenses paid or
incurred by the taxpayer during the tax year.
(3) The amount of the credit allowed under this section shall be
equal to the lesser of:
(a) The qualified adoption expenses paid or incurred by the
taxpayer during the tax year less the credit allowed to the taxpayer
under section 23 of the Internal Revenue Code;
(b) $1,500; or
(c) The credit allowed to the taxpayer for qualified adoption
expenses under section 23 of the Internal Revenue Code.
(4) In the case of a credit allowed under this section:
(a) A nonresident shall be allowed the credit under this section in
the proportion provided in ORS 316.117.
(b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
(c) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue terminates the
taxpayer’s taxable year under ORS 314.440, the credit allowed under this
section shall be prorated or computed in a manner consistent with ORS
314.085.
(5) Any tax credit otherwise allowable under this section that is
not used by the taxpayer in a particular tax year may be carried forward
and offset against the taxpayer’s tax liability for the next succeeding
tax year. Any credit remaining unused in such next succeeding tax year
may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be
carried forward and used in the third succeeding tax year, and any credit
not used in that third succeeding tax year may be carried forward and
used in the fourth succeeding tax year, but may not be carried forward
for any tax year thereafter. [1999 c.1088 §2; 2001 c.660 §57; 2003 c.77
§13]Note: Section 3, chapter 1088, Oregon Laws 1999, provides:
Sec. 3. Section 2 of this 1999 Act [315.274] applies to tax years
beginning on or after January 1, 2000, and before January 1, 2006. [1999
c.1088 §3]ENVIRONMENT AND ENERGY (1) A credit against taxes
imposed by ORS chapter 316 (or, if the taxpayer is a corporation, under
ORS chapter 317 or 318) for a pollution control facility or facilities
certified under ORS 468.170 shall be allowed if the taxpayer qualifies
under subsection (4) of this section.
(2) For a facility certified under ORS 468.170, the maximum credit
allowed in any one tax year shall be the lesser of the tax liability of
the taxpayer or the applicable percentage of the certified cost of the
facility, as determined under ORS 468.173 or 468.183, multiplied by the
certified percentage allocable to pollution control, divided by the
number of years of the facility’s useful life. The number of years of the
facility’s useful life used in this calculation shall be the remaining
number of years of useful life at the time the facility is certified but
not less than one year nor more than 10 years.
(3) To qualify for the credit the pollution control facility must
be erected, constructed or installed in accordance with the provisions of
ORS 468.165 (1) and must be certified for tax relief under ORS 468.155 to
468.190.
(4) To qualify for a tax credit under this section:
(a) The taxpayer who is allowed the credit must be:
(A) The owner, including a contract purchaser, of the trade or
business that utilizes Oregon property requiring a pollution control
facility to prevent or minimize pollution;
(B) A person who, as a lessee or pursuant to an agreement, conducts
the trade or business that operates or utilizes such property; or
(C) A person who, as an owner, including a contract purchaser, or
lessee, owns or leases a pollution control facility that is used:
(i) In a business that is engaged in a production activity
described in 40 C.F.R. 430.20 (as of July 1, 1998); or
(ii) For recycling, material recovery or energy recovery as defined
in ORS 459.005; and
(b) The facility must be owned or leased during the tax year by the
taxpayer claiming the credit and must have been in use and operation
during the tax year for which the credit is claimed.
(5) Regardless of when the facility is erected, constructed or
installed, a credit under this section may be claimed by a taxpayer:
(a) For a facility qualifying under ORS 468.165 (1)(a) or (b), only
in those tax years which begin on or after January 1, 1967.
(b) For a facility qualifying under ORS 468.165 (1)(c), in those
tax years which begin on or after January 1, 1973.
(c) For a facility qualifying under ORS 468.165 (1)(d), in those
tax years which begin on or after January 1, 1984.
(6) For a facility certified under ORS 468.170, the maximum total
credit allowable shall not exceed one-half of the certified cost of the
facility multiplied by the certified percentage allocable to pollution
control.
(7) The credit provided by this section is not in lieu of any
depreciation or amortization deduction for the facility to which the
taxpayer otherwise may be entitled under ORS chapter 316, 317 or 318 for
such year.
(8) Upon any sale, exchange or other disposition of a facility,
notice thereof shall be given to the Environmental Quality Commission who
shall revoke the certification covering such facility as of the date of
such disposition. Notwithstanding ORS 468.170 (4)(c), the transferee may
apply for a new certificate under ORS 468.170, but the tax credit
available to such transferee shall be limited to the amount of credit not
claimed by the transferor. The sale, exchange or other disposition of
shares in an S corporation as defined in section 1361 of the Internal
Revenue Code or of a partner’s interest in a partnership shall not be
deemed a sale, exchange or other disposition of a facility for purposes
of this subsection.
(9) Any tax credit otherwise allowable under this section which is
not used by the taxpayer in a particular year may be carried forward and
offset against the taxpayer’s tax liability for the next succeeding tax
year. Any credit remaining unused in such next succeeding tax year may be
carried forward and used in the second succeeding tax year, and likewise,
any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, but may not be carried
forward for any tax year thereafter. Credits may be carried forward to
and used in a tax year beyond the years specified in ORS 468.170.
(10) The taxpayer’s adjusted basis for determining gain or loss
shall not be further decreased by any tax credits allowed under this
section.
(11) A person described in subsection (4)(a)(C) of this section
may, but need not, operate the facility or conduct a trade or business
that utilizes property requiring the facility. If more than one person
has an interest under subsection (4)(a)(C) of this section in the
facility, only one person may claim the credit allowed under this
section. However, portions of the facility may be certified separately in
the same manner as provided in ORS 468.170 (8) if ownership of the
portions is in more than one person. The person claiming the credit as
between an owner, including a contract purchaser, and lessee under this
subsection shall be designated in a written statement signed by both the
lessor and lessee of the facility. This statement shall be filed with the
Department of Revenue not later than the final day of the first tax year
for which a tax credit is claimed.
(12)(a) A taxpayer may not be allowed a tax credit under this
section for any tax year during which the taxpayer is convicted of a
felony under ORS 468.922 to 468.956 that is related to the facility for
which the tax credit would otherwise be claimed, or for the four tax
years succeeding the tax year during which the taxpayer is convicted.
(b) The amount of any tax credit that is otherwise allowable under
this section but for paragraph (a) of this subsection shall be considered
to be claimed by the taxpayer for purposes of determining the amount of
tax credit that may be claimed in a tax year in which paragraph (a) of
this subsection permits the taxpayer to claim the credit. [1993 c.730 §30
(enacted in lieu of 316.097 and 317.116); 1993 c.560 §110a; 1995 c.746
§1; 1997 c.99 §5; 1997 c.325 §39; 1999 c.1101 §1; 2001 c.928 §4]Note: Section 3, chapter 928, Oregon Laws 2001, provides:
Sec. 3. (1) Notwithstanding ORS 315.304 (9), in the case of a
pollution control facility for which unexpired tax credits exist as of
the tax year of the taxpayer that begins in the 2001 calendar year, if
the facility is in use and operation during the tax year immediately
following the third succeeding tax year described in ORS 315.304 (9), any
credit under ORS 315.304 remaining unused may be carried forward to that
fourth succeeding tax year. If the facility is in use and operation
during the tax year immediately following the fourth succeeding tax year,
any credit under ORS 315.304 remaining unused may be carried forward to
that fifth succeeding tax year. If the facility is in use and operation
during the tax year immediately following the fifth succeeding tax year,
any credit under ORS 315.304 remaining unused may be carried forward to
that sixth succeeding tax year, but may not be carried forward to any tax
year thereafter.
(2) For purposes of this section, unexpired tax credits include
credits claimed pursuant to ORS 315.304 (2) and credits carried over from
previous tax years pursuant to ORS 315.304 (9). [2001 c.928 §3] (1) A
credit against taxes otherwise due under ORS chapter 316, 317 or 318 for
the installation of a pollution-eliminating production technology or
process certified under ORS 468A.098 shall be allowed, subject to the
requirements of subsections (3) and (4) of this section.
(2) The maximum credit allowed in any one tax year shall be the
lesser of the tax liability of the taxpayer or one-tenth of the cost
certified under ORS 468A.098. A credit may be taken beginning with the
tax year in which certification was issued by the Environmental Quality
Commission.
(3) To qualify for the credit, the production technology or process
must be installed on or after January 1, 1996, and on or before December
31, 1999.
(4) The business location where the production technology or
process was installed must be owned or leased during the tax year by the
taxpayer claiming the credit and must have been in use and operation
during the tax year for which the credit is claimed.
(5) The credit provided by this section is not in lieu of any
depreciation or amortization deduction for the facility to which the
taxpayer otherwise may be entitled under ORS chapter 316, 317 or 318 for
such year.
(6) Upon any sale, exchange or other disposition of a business
location having a production technology or process certified under ORS
468A.098, or upon the removal, replacement, shutdown or other nonuse of a
production technology or process certified under ORS 468A.098, notice
thereof shall be given to the Environmental Quality Commission, which
shall revoke the certification covering the production technology or
process as of the date of such disposition or nonuse. The transferee may
apply for a new certificate under ORS 468A.096, but the tax credit
available to the transferee shall be limited to the amount of credit not
claimed by the transferor. The sale, exchange or other disposition of
shares in an S corporation as defined in section 1361 of the Internal
Revenue Code or of a partner’s interest in a partnership shall not be
deemed a disposition of a business for purposes of this subsection.
(7) Any tax credit otherwise allowable under this section that is
not used by the taxpayer in a particular year may be carried forward and
offset against the taxpayer’s tax liability for the next succeeding tax
year. Any credit remaining unused in such next succeeding tax year may be
carried forward and used in the second succeeding tax year, and likewise,
any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, but may not be carried
forward for any tax year thereafter.
(8) The taxpayer’s adjusted basis for determining gain or loss
shall not be further decreased by any tax credits allowed under this
section. [1995 c.746 §33; 1997 c.325 §40] (1) A credit against taxes imposed by
ORS chapter 316 (or, if the taxpayer is a corporation, under ORS chapter
317) for the investments certified under ORS 468.466 shall be allowed if
the taxpayer qualifies under subsection (4) of this section.
(2) A taxpayer shall be allowed a tax credit under this section
each year for five tax years beginning in the tax year the investment
receives final certification under ORS 468.466. The maximum credit
allowed in any one tax year shall be the lesser of the tax liability of
the taxpayer or 10 percent of the certified cost of the taxpayer’s
investment.
(3) To qualify for the credit the investment must be made in
accordance with the provisions of ORS 468.461.
(4)(a) The taxpayer who is allowed the credit must be:
(A) The owner of the business that collects, transports or
processes reclaimed plastic or manufactures a reclaimed plastic product;
(B) A person who, as a lessee or pursuant to an agreement, conducts
the business that collects, transports or processes reclaimed plastic or
manufactures a reclaimed plastic product; or
(C) A person who, as an owner, lessee or pursuant to an agreement,
owns, leases or has a beneficial interest in a business that collects,
transports or processes reclaimed plastic or manufactures a reclaimed
plastic product. Such person may, but need not, operate or conduct such a
business that collects, transports or processes reclaimed plastic or
manufactures a reclaimed plastic product. If more than one person has an
interest under this subparagraph in a qualifying business and one or more
persons receive a certificate, such person or persons may allocate all or
any part of the certified investment cost among any persons and their
successors or assigns having an interest under this subparagraph. Such
allocation shall be evidenced by a written statement signed by the person
or persons receiving the certificate and designating the persons to whom
the certified investment costs have been allocated and the amount of
certified investment cost allocated to each. This statement shall be
filed with the Department of Revenue not later than the final day of the
first tax year for which a tax credit is claimed pursuant to such
agreement. In no event shall the aggregate certified investment costs
allocated between or among more than one person exceed the amount of the
total certified cost of the investment. As used in this paragraph,
“owner” includes a contract purchaser;
(b) The business must be owned or leased during the tax year by the
taxpayer claiming the credit, except as otherwise provided in paragraph
(a)(C) of this subsection, and must have been collecting, transporting or
processing reclaimed plastic or manufacturing a reclaimed plastic product
during the tax year for which the credit is claimed; and
(c) The reclaimed plastic collected, transported, processed or used
to manufacture the reclaimed plastic product must not be an industrial
waste generated by the person claiming the tax credit, but must be
purchased from a plastic recycler other than the person claiming the tax
credit.
(5) The credit provided by this section is not in lieu of any
depreciation or amortization deduction for the investment to which the
taxpayer otherwise may be entitled under ORS chapter 316 or 317 for such
year.
(6) Upon any sale, exchange, or other disposition of a qualifying
business, notice thereof shall be given to the Environmental Quality
Commission who shall revoke the certification covering the investment of
such business as of the date of such disposition. Notwithstanding ORS
468.461 (6), the transferee may apply for a new certificate under ORS
468.466, but the tax credit available to such transferee shall be limited
to the amount of credit not claimed by the transferor. The sale, exchange
or other disposition of shares in an S corporation as defined in section
1361 of the Internal Revenue Code or of a partner’s interest in a
partnership shall not be deemed a sale, exchange or other disposition of
a business for purposes of this subsection.
(7) Any tax credit otherwise allowable under this section which is
not used by the taxpayer in a particular year may be carried forward and
offset against the taxpayer’s tax liability for the next succeeding tax
year. Any credit remaining unused in such next succeeding tax year may be
carried forward and used in the second succeeding tax year, and likewise,
any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year and any credit not used
in that third succeeding tax year may be carried forward and used in the
fourth succeeding tax year, and any credit not used in that fourth
succeeding tax year may be carried forward and used in the fifth
succeeding tax year, but may not be carried forward for any tax year
thereafter. Credits may be carried forward to and used in a tax year
beyond the years specified in ORS 468.461.
(8) The taxpayer’s adjusted basis for determining gain or loss
shall not be further decreased by any tax credits allowed under this
section.
(9) A nonresident shall be allowed the credit under this section in
the proportion provided in ORS 316.117.
(10) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.
(11) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the department terminates the taxpayer’s
taxable year under ORS 314.440, the credit allowed under this section
shall be prorated or computed in a manner consistent with ORS 314.085.
(12) No credit shall be allowed under this section and under ORS
468.451 to 468.491 for any portion of a facility for which the taxpayer
claims a tax credit or ad valorem tax relief under ORS 307.405, 315.304,
315.354, 315.356 and 469.185 to 469.225 or 316.116. [1993 c.730 §32
(enacted in lieu of 316.103 and 317.106); 1995 c.746 §7]
