Chapter 880
AN ACT
HB 2810
Relating to tax credits; creating new
provisions; amending ORS 315.266 and section 13, chapter 674, Oregon Laws 2001,
and section 61, chapter 832, Oregon Laws 2005; and repealing ORS 315.266.
Be It Enacted by the People of
the State of
SECTION 1. Section 13, chapter 674, Oregon Laws 2001, as
amended by section 9, chapter 473, Oregon Laws 2003, is amended to read:
Sec.
13. ORS 315.213 applies to tax years beginning on or after January
1, 2002, and before January 1, [2009]
2013.
SECTION 2. ORS 315.266, as amended by sections 57 and 59,
chapter 832, Oregon Laws 2005, is amended to read:
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.]
(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.
SECTION 3. The amendments to ORS 315.266 by section 2
of this 2007 Act apply to tax years beginning on or after January 1, 2011.
SECTION 4. Section 61, chapter 832, Oregon Laws 2005, is
amended to read:
Sec.
61. The amendments to ORS [315.266
and] 316.502 by [sections 59 and 60
of this 2005 Act] section 60, chapter 832, Oregon Laws 2005, apply
to tax years beginning on or after January 1, [2011] 2014.
SECTION 5. ORS 315.266 is repealed on January 1, 2014.
SECTION 6. The repeal of ORS 315.266 by section 5 of
this 2007 Act applies to tax years beginning on or after January 1, 2014.
Approved by the Governor August 3, 2007
Filed in the office of Secretary of State August 3, 2007
Effective date January 1, 2008
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