Chapter 730
Oregon Laws 2011
AN ACT
HB 3672
Relating to
tax expenditures; creating new provisions; amending ORS 284.367, 285C.406,
285C.506, 314.752, 315.053, 315.141, 315.357, 315.514, 316.116, 317.115,
317.152, 317.154, 318.031, 469.160, 469.165, 469.170, 469.172, 469.790 and
496.303 and section 6, chapter 911, Oregon Laws 1989, section 77, chapter 736,
Oregon Laws 2003, section 1a, chapter 559, Oregon Laws 2005, section 3, chapter
595, Oregon Laws 2005, sections 5a and 8a, chapter 832, Oregon Laws 2005,
section 6, chapter 739, Oregon Laws 2007, and sections 3, 11 and 20, chapter
913, Oregon Laws 2009; repealing sections 2a, 2b and 15, chapter 625, Oregon
Laws 2007; appropriating money; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
MODIFICATION
OF TAX CREDIT
PROVISIONS
SECTION 1. ORS 315.357, as amended by
section 5, chapter 76, Oregon Laws 2010, is amended to read:
315.357. (1) [Except as provided in subsection (2) of this section,] For a
facility other than a renewable energy resource equipment manufacturing
facility, a taxpayer may not be allowed a credit under ORS 315.354 unless
the taxpayer:
(a) Files an application for
preliminary certification under ORS 469.205 on or before April 15, 2011;
(b) Receives preliminary certification
under ORS 469.210 before July 1, 2011; and
(c)
Receives final certification under ORS 469.215 before [July 1, 2012] January 1, 2013, or has demonstrated, to the State
Department of Energy, evidence of beginning construction before April 15, 2011.
(2) A taxpayer may not be allowed a
credit under ORS 315.354 for a renewable energy resource equipment
manufacturing facility unless the taxpayer receives preliminary certification
under ORS 469.210 before January 1, 2014.
SECTION 2. Section 6, chapter 739,
Oregon Laws 2007, as amended by section 5, chapter 590, Oregon Laws 2007, and
section 18, chapter 913, Oregon Laws 2009, is amended to read:
Sec. 6. (1) ORS 315.141,
315.144 and 469.790 apply to tax credits for tax years beginning on or after
January 1, 2007, and before January 1, [2012]
2018.
(2) Notwithstanding subsection (1) of
this section, a tax credit is not allowed for wheat grain (other than nongrain
wheat material) [before] for
tax years beginning [on or after] before
January 1, 2009, or on or after January 1, [2012]
2018.
SECTION 2a. ORS 315.141 is amended to
read:
315.141. (1) As used in this section:
(a) “Agricultural producer” means a
person that produces biomass in Oregon that is used, in Oregon, as biofuel or
to produce biofuel.
(b) “Biofuel” means liquid, gaseous or
solid fuels, derived from biomass, that have been converted into a processed
fuel ready for use as energy by a biofuel producer’s customers or for direct
biomass energy use at the biofuel producer’s site.
(c) “Biofuel producer” means a person
that through activities in Oregon:
(A) Alters the physical makeup of
biomass to convert it into biofuel;
(B) Changes one biofuel into another
type of biofuel; or
(C) Uses biomass in Oregon to produce
energy.
(d) “Biomass” means organic matter
that is available on a renewable or recurring basis and that is derived from:
(A) Forest or rangeland woody debris
from harvesting or thinning conducted to improve forest or rangeland ecological
health and reduce uncharacteristic stand replacing wildfire risk;
(B) Wood material from hardwood timber
described in ORS 321.267 (3);
(C) Agricultural residues;
(D) Offal and tallow from animal
rendering;
(E) Food wastes collected as provided
under ORS chapter 459 or 459A;
(F) [Yard or] Wood debris collected as provided under ORS chapter 459 or
459A;
(G) Wastewater solids; or
(H) Crops grown solely to be used for
energy.
(e) “Biomass” does not mean wood that
has been treated with creosote, pentachlorophenol, inorganic arsenic or other
inorganic chemical compounds or waste, other than matter described in paragraph
(d) of this subsection.
(f) “Biomass collector” means a person
that collects biomass in Oregon to be used, in Oregon, as biofuel or to produce
biofuel.
(g) “Oilseed processor” means a
person that receives agricultural oilseeds and separates them into meal and oil
by mechanical or chemical means.
(2) The Director of the State
Department of Energy may adopt rules to define criteria, only as the criteria
apply to organic biomass, to determine additional characteristics of biomass
for purposes of this section.
(3)(a) An agricultural producer or
biomass collector shall be allowed a credit against the taxes that would
otherwise be due under ORS chapter 316 or, if the taxpayer is a corporation,
under ORS chapter 317 or 318 for:
(A) The production of biomass in
Oregon that is used, in Oregon, as biofuel or to produce biofuel; or
(B) The collection of biomass in
Oregon that is used, in Oregon, as biofuel or to produce biofuel.
(b) A credit under this section may be
claimed in the tax year in which the credit is certified under subsection (5)
of this section.
(c) A taxpayer may be allowed a credit
under this section for more than one of the roles defined in subsection (1) of
this section, but a biofuel producer that is not also an agricultural producer
or a biomass collector may not claim a credit under this section.
(d) Notwithstanding paragraph (a) of
this subsection, a tax credit is not allowed for grain corn, but a tax credit
shall be allowed for other corn material.
(4) The amount of the credit shall
equal the amount certified under subsection (5) of this section.
(5)(a) The State Department of Energy
may establish by rule procedures and criteria for determining the amount of the
tax credit to be certified under this section, consistent with ORS 469.790. The
department shall provide written certification to taxpayers that are eligible
to claim the credit under this section.
(b) The State Department of Energy may
charge and collect a fee from taxpayers for certification of credits under this
section. The fee may not exceed the cost to the department of determining the
amount of certified cost.
(c) The State Department of Energy
shall provide to the Department of Revenue a list, by tax year, of taxpayers
for which a credit is certified under this section, upon request of the
Department of Revenue.
(6) The amount of the credit claimed
under this section for any tax year may not exceed the tax liability of the
taxpayer.
(7) Each agricultural producer or
biomass collector shall maintain the written documentation of the amount
certified for tax credit under this section in its records for a period of at
least five years after the tax year in which the credit is claimed and provide
the written documentation to the Department of Revenue upon request.
(8) The credit shall be claimed on a
form prescribed by the Department of Revenue that contains the information
required by the department.
(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 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.
(10) 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 the
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
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
under this section shall be prorated or computed in a manner consistent with
ORS 314.085.
SECTION 3. ORS 469.790 is amended to
read:
469.790. To be eligible for the tax
credit under ORS 315.141, the biomass must be produced or collected in Oregon
as a feedstock for bioenergy or biofuel production in Oregon. The credit rates
for biomass are:
(1) For oilseed crops, $0.05 per
pound.
(2) For grain crops, including but not
limited to wheat, barley and triticale, $0.90 per bushel.
(3) For virgin oil or alcohol
delivered for production in Oregon from Oregon-based feedstock, $0.10 per gallon.
(4) For used cooking oil or waste
grease, $0.10 per gallon.
(5) For wastewater biosolids, $10.00
per wet ton.
(6) For woody biomass collected from
nursery, orchard, agricultural, forest or rangeland property in Oregon,
including but not limited to prunings, thinning, plantation rotations, log
landing or slash resulting from harvest or forest health stewardship, $10.00
per [green] bone dry ton.
(7) For grass, wheat, straw or other
vegetative biomass from agricultural crops, $10.00 per [green] bone dry ton.
[(8)
For yard debris and municipally generated food waste, $5.00 per wet ton.]
[(9)]
(8) For animal manure or rendering offal, $5.00 per wet ton.
SECTION 4. Section 20, chapter 913, Oregon Laws 2009, is amended to
read:
Sec. 20. A credit may not be
claimed under ORS 317.122 (1) for tax years beginning on or after
January 1, [2012] 2018.
SECTION 5. Section 3, chapter 913,
Oregon Laws 2009, is amended to read:
Sec. 3. Except as provided in
ORS 315.507 (5), a credit may not be claimed under ORS 315.507 for tax years
beginning on or after January 1, [2012]
2018.
SECTION 6. ORS 285C.406 is amended to
read:
285C.406. In order for a taxpayer to
claim the property tax exemption under ORS 285C.409 or a corporate excise or
income tax credit under ORS 317.124:
(1) The written agreement between the
business firm and the rural enterprise zone sponsor that is required under ORS
285C.403 (3)(c) must be entered into prior to the termination of the enterprise
zone under ORS 285C.245; and
(2)(a) For the purpose of the property
tax exemption, the business firm must obtain certification under ORS 285C.403
on or before June 30, [2013] 2025;
or
(b) For the purpose of the corporate
excise or income tax credit, the business firm must obtain certification under ORS
285C.403 on or before June 30, [2012]
2018.
SECTION 7. Section 6, chapter 911,
Oregon Laws 1989, as amended by section 14, chapter 746, Oregon Laws 1995,
section 1, chapter 548, Oregon Laws 2001, section 15, chapter 739, Oregon Laws
2003, and section 86, chapter 94, Oregon Laws 2005, is amended to read:
Sec. 6. ORS 317.152 to 317.154
apply to amounts paid or incurred in tax years beginning on or after January 1,
1989, and before January 1, [2012] 2018.
SECTION 8. ORS 317.152 is amended to
read:
317.152. (1) A credit against taxes
otherwise due under this chapter shall be allowed to eligible taxpayers for
increases in qualified research expenses and basic research payments. The
credit shall be determined in accordance with section 41 of the Internal
Revenue Code, except as follows:
(a) The applicable percentage
specified in section 41(a) of the Internal Revenue Code shall be five percent.
(b) “Qualified research” and “basic
research” shall consist only of research conducted in Oregon.
(c) The following do not apply to the
credit allowable under this section:
(A) Section 41(c)(4) of the Internal
Revenue Code (relating to the alternative incremental credit).
(B) Section 41(h) of the Internal
Revenue Code (relating to termination of the federal credit).
(2) For purposes of this section, “eligible
taxpayer” means a corporation, other than a corporation excluded under Internal
Revenue Code section 41(e)(7)(E).
(3) The Income Tax Regulations as
prescribed by the Secretary of the Treasury under authority of section 41 of
the Internal Revenue Code apply for purposes of this section, except as
modified by this section or as provided in rules adopted by the Department of
Revenue.
(4) The maximum credit under this
section may not exceed [$2 million]
$1 million.
(5) Any tax credit that is otherwise
allowable under this section and that is not used by the taxpayer in that 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.
SECTION 8a. ORS 317.152, as amended
by section 8 of this 2011 Act, is amended to read:
317.152. (1) A credit against taxes
otherwise due under this chapter shall be allowed to eligible taxpayers for
increases in qualified research expenses and basic research payments. The
credit shall be determined in accordance with section 41 of the Internal
Revenue Code, except as follows:
(a) The applicable percentage
specified in section 41(a) of the Internal Revenue Code shall be five percent.
(b) “Qualified research” and “basic
research” shall consist only of research conducted in Oregon.
(c) The following do not apply to the
credit allowable under this section:
(A) Section 41(c)(4) of the Internal
Revenue Code (relating to the alternative incremental credit).
(B) Section 41(h) of the Internal
Revenue Code (relating to termination of the federal credit).
(2) For purposes of this section, “eligible
taxpayer” means a corporation, other than a corporation excluded under Internal
Revenue Code section 41(e)(7)(E).
(3) The Income Tax Regulations as
prescribed by the Secretary of the Treasury under authority of section 41 of
the Internal Revenue Code apply for purposes of this section, except as
modified by this section or as provided in rules adopted by the Department of
Revenue.
(4) The maximum credit under this
section may not exceed $1 million.
(5) A deduction may not be taken
for the portion of expenses or payments, otherwise allowable as a deduction,
that is equal to the amount of the credit claimed under this section.
[(5)]
(6) Any tax credit that is otherwise allowable under this section and
that is not used by the taxpayer in that 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.
SECTION 9. ORS 317.154 is amended to
read:
317.154. (1) A credit against taxes
otherwise due under this chapter shall be allowed for qualified research
expenses that exceed 10 percent of Oregon sales.
(2) For purposes of this section:
(a) “Oregon sales” shall be computed
using the laws and administrative rules for calculating the numerator of the
Oregon sales factor under ORS 314.665.
(b) “Qualified research” has the
meaning given the term under section 41(d) of the Internal Revenue Code and
shall consist only of research conducted in Oregon.
(3) The credit under this section is
equal to five percent of the amount by which the qualified research expenses
exceed 10 percent of Oregon sales.
(4) The credit under this section
shall not exceed $10,000 times the number of percentage points by which the
qualifying research expenses exceed 10 percent of Oregon sales.
(5) The maximum credit under this
section may not exceed [$2 million]
$1 million.
(6) Any tax credit that is otherwise
allowable under this section and that is not used by the taxpayer in that 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.
SECTION 10. (1) The amendments to
ORS 315.141, 317.152, 317.154 and 469.790 by sections 2a, 3, 8 and 9 of this
2011 Act apply to tax years beginning on or after January 1, 2012.
(2) The amendments to ORS 317.152 by
section 8a of this 2011 Act apply to tax years beginning on or after January 1,
2012, and to any tax year for which a return is subject to audit or adjustment
by the Department of Revenue on or after the effective date of this 2011 Act,
any tax year for which a return is the subject of an appeal on or after the
effective date of this 2011 Act and any tax year for which a claim for refund
may be made on or after the effective date of this 2011 Act.
SECTION 11. ORS 315.514 is amended to
read:
315.514. (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.] The Department of Revenue
shall, in cooperation with the Oregon Film and Video Office, conduct an auction
of tax credits under this section. The department may conduct the auction in
the manner that it determines is best suited to maximize the return to the
state on the sale of tax credit certifications and shall announce a reserve bid
prior to conducting the auction. The reserve amount shall be at least 95
percent of the total amount of the tax credit. Moneys necessary to reimburse the
department for the actual costs incurred by the department in administering an
auction, not to exceed 0.25 percent of auction proceeds, are continuously
appropriated to the department. The department shall deposit net receipts from
the auction required under this section in the Oregon Production Investment
Fund.
(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 [$7.5 million] $6 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)]
(3) Contributions made under this section shall be deposited in the
Oregon Production Investment Fund.
[(5)(a)]
(4)(a) Upon receipt of a contribution, the Oregon Film and Video Office
shall, except as provided in section 13 of this 2011 Act, 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 [$7.5 million] $6 million
for the fiscal year in which certification is made.
(b) The Oregon Film and Video Office [is] and the department are 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)]
(5) 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)]
(6)(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.
(c) A taxpayer is not eligible for a
tax credit under this section if the first tax year for which the credit would
otherwise be allowed begins on or after January 1, [2012] 2018.
[(8)]
(7) 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)]
(8) 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.
SECTION 12. The Oregon Film and
Video Office and the Department of Revenue shall report, not later than
February 15, 2013, to the Legislative Assembly on the operation of the auction process
required in ORS 315.514.
SECTION 13. (1) In lieu of the
issuance of certifications for tax credit under ORS 315.514 by the Oregon Film
and Video Office, the Legislative Assembly may, no later than 30 days prior to
the end of each fiscal year, appropriate to the Oregon Business Development
Department for deposit into the Oregon Production Investment Fund an amount
equal to the total amount that would otherwise be certified for tax credits
during the upcoming fiscal year, based on the amount of contributions and
accompanying applications for credit received by the office during the fiscal
year.
(2) If the Legislative Assembly makes
the election allowed in subsection (1) of this section:
(a) Any contributions to the Oregon
Production Investment Fund made for the upcoming fiscal year and for which an
application for a credit under ORS 315.514 is pending shall, at the request of
the taxpayer, be refunded by the Oregon Film and Video Office; and
(b) A credit under ORS 315.514 may not
be claimed for any contribution made during the current fiscal year.
SECTION 14. ORS 284.367 is amended to
read:
284.367. (1) The Oregon Production
Investment Fund is established in the State Treasury, separate and distinct
from the General Fund. Interest earned by the Oregon Production Investment Fund
shall be credited to the fund.
(2) Moneys in the Oregon Production
Investment Fund shall consist of:
(a) Amounts donated to the fund;
(b) Amounts appropriated or otherwise
transferred to the fund by the Legislative Assembly;
(c) Other amounts deposited in the
fund from any source; and
(d) Interest earned by the fund.
(3) Ninety-five percent of moneys in
the fund are continuously appropriated to the Oregon Business Development
Department for the purposes of making:
(a) Reimbursements to filmmakers under
ORS 284.368;
(b) Payments to a tax credit marketer
for marketing services provided by the marketer as described in ORS 284.369;
and
(c) Refunds described in ORS 315.514 [(6)] (5).
(4) Five percent of moneys in the fund
are continuously appropriated to the department for the purpose of making
reimbursements to local filmmakers under ORS 284.368 (3). Total
reimbursements to local filmmakers may not exceed $250,000 in a fiscal year.
(5) Expenditures from the fund are not
subject to ORS 291.232 to 291.260.
SECTION 15. ORS 284.367, as amended
by section 14 of this 2011 Act, is amended to read:
284.367. (1) The Oregon Production
Investment Fund is established in the State Treasury, separate and distinct
from the General Fund. Interest earned by the Oregon Production Investment Fund
shall be credited to the fund.
(2) Moneys in the Oregon Production
Investment Fund shall consist of:
(a) Amounts donated to the fund;
(b) Amounts appropriated or otherwise
transferred to the fund by the Legislative Assembly;
(c) Other amounts deposited in the
fund from any source; and
(d) Interest earned by the fund.
(3) Ninety-five percent of moneys in
the fund are continuously appropriated to the Oregon Business Development
Department for the purposes of making:
(a) Reimbursements to filmmakers under
ORS 284.368;
(b) Payments to a tax credit marketer
for marketing services provided by the marketer as described in ORS 284.369;
and
(c) Refunds described in ORS 315.514
(5).
(4) Five percent of moneys in the fund
are continuously appropriated to the department for the purpose of making
reimbursements to local filmmakers under ORS 284.368 (3). [Total reimbursements to local filmmakers may not exceed $250,000 in a
fiscal year.]
(5) Expenditures from the fund are not
subject to ORS 291.232 to 291.260.
SECTION 16. Section 1a, chapter 559,
Oregon Laws 2005, is amended to read:
Sec. 1a. The Oregon Film and
Video Office may not issue a qualifying film production labor rebate
certificate under section 1 [of this 2005
Act], chapter 559, Oregon Laws 2005, on or after January 1, [2012] 2018.
SECTION 17. Section 77, chapter 736,
Oregon Laws 2003, as amended by section 1, chapter 913, Oregon Laws 2009, is
amended to read:
Sec. 77. ORS 315.514 applies to
tax years beginning on or after January 1, 2005, and before January 1, [2012] 2018, and to tax credit
certifications issued by the Oregon Film and Video Office on or after July 1,
2005.
SECTION 18. (1) The amendments to ORS 315.514 by section 11 of this 2011 Act apply
to tax credit certifications issued by the Oregon Film and Video Office on or
after June 30, 2012.
(2) The amendments to ORS 284.367 by
section 14 of this 2011 Act apply to fiscal years beginning after June 30,
2011, and before July 1, 2013.
(3) The amendments to ORS 284.367 by
section 15 of this 2011 Act apply to fiscal years beginning after June 30,
2013.
SECTION 18a. Section 11, chapter 913,
Oregon Laws 2009, is amended to read:
Sec. 11. The State Department
of Fish and Wildlife may not issue a preliminary certificate of approval under
ORS 315.138 after January 1, [2012]
2018.
SECTION 18b. ORS 496.303, as amended
by section 14, chapter 625, Oregon Laws 2007, is amended to read:
496.303. (1) The Fish and Wildlife
Account is established in the State Treasury, separate and distinct from the
General Fund. All moneys in the account are continuously appropriated to the
State Fish and Wildlife Commission. The Fish and Wildlife Account shall consist
of the moneys in its various subaccounts and any moneys transferred to the
account by the Legislative Assembly. Unless otherwise specified by law,
interest earnings on moneys in the account shall be paid into the State
Treasury and credited to the State Wildlife Fund.
(2)(a) The Fish Screening Subaccount
is established in the Fish and Wildlife Account. The subaccount shall consist
of:
(A) All penalties recovered under ORS
536.900 to 536.920.
(B) All moneys received pursuant to
ORS 498.306.
(C) All gifts, grants and other moneys
from whatever source that may be used to carry out the provisions of ORS
498.306.
(D) All moneys received from the
surcharge on angling licenses imposed by ORS 497.124.
(b) All moneys in the subaccount shall
be used to carry out the provisions of ORS 315.138, 498.306 and 509.620.
However, moneys received from the surcharge on angling licenses imposed by ORS
497.124 shall be expended only to carry out the provisions of law relating to
the screening of water diversions.
(3) The Fish Endowment Subaccount is
established in the Fish and Wildlife Account. The subaccount shall consist of
transfers of moneys authorized by the Legislative Assembly from the State
Wildlife Fund and gifts and grants of moneys from whatever source for the
purpose of paying the expense of maintaining fish hatcheries operated by the
department.
(4) The Migratory Waterfowl Subaccount
is established in the Fish and Wildlife Account. All moneys received by the
commission from the sale of art works and prints related to the migratory
waterfowl stamp shall be deposited in the subaccount. Moneys in the subaccount
may be expended only for activities that promote the propagation, conservation
and recreational uses of migratory waterfowl and for activities related to the
design, production, issuance and arrangements for sale of the migratory
waterfowl stamps and related art works and prints. Expenditures of moneys in
the subaccount may be made within this state, in other states or in foreign
countries, in such amounts as the commission determines appropriate.
Expenditures in other states and foreign countries shall be on such terms and
conditions as the commission determines will benefit most directly the
migratory waterfowl resources of this state.
(5) The Halibut Research Subaccount is
established in the Fish and Wildlife Account. Based on the annual number of
recreational halibut anglers, a portion of the moneys derived from the sale of
the salmon, steelhead trout, sturgeon and halibut tag pursuant to ORS 497.121
shall be credited to the subaccount. Moneys in the subaccount may be expended
only for halibut population studies and other research.
(6) The Upland Bird Subaccount is
established in the Fish and Wildlife Account. All moneys received by the State
Fish and Wildlife Commission from the sale of upland bird stamps, from the sale
of any art works and prints related to the upland bird stamp and from private
hunting preserve permit fees shall be deposited in the subaccount. Moneys in
the subaccount may be expended only for promoting the propagation and conservation
of upland birds and the acquisition, development, management, enhancement, sale
or exchange of upland bird habitat, and for activities related to the design,
production, issuance and arrangements for sale of the upland bird stamps and
related art works and prints. Expenditures of moneys in the subaccount shall be
made for the benefit of programs within this state in such amounts and at such
times as the commission determines appropriate to most directly benefit the
upland bird resources of the state.
(7)(a) The Fish and Wildlife Deferred
Maintenance Subaccount is established in the Fish and Wildlife Account.
Interest earnings on moneys in the subaccount shall be credited to the
subaccount. The subaccount shall consist of moneys authorized by the
Legislative Assembly from the State Wildlife Fund and moneys obtained by gift,
grant, bequest or donation from any other public or private source.
(b) The principal in the subaccount
may be utilized only as provided in paragraph (c) of this subsection. Interest
earnings on the moneys in the subaccount may be expended only for the
maintenance of fish hatcheries and State Department of Fish and Wildlife
facilities other than administrative facilities located in Salem.
(c) The department may borrow funds from
the principal of the subaccount to maintain adequate cash flow requirements.
However, moneys borrowed from the principal must be repaid to the subaccount:
(A) Within six months from the date on
which the moneys were borrowed.
(B) With interest at the standard rate
that the State Treasurer charges to state agencies for other loans. Interest
paid under this subparagraph shall be paid to the subaccount.
(d) For purposes of this subsection, “principal”
means moneys authorized by the Legislative Assembly for transfer to the
subaccount from the State Wildlife Fund, including any assignment of earnings
on moneys in the fund and other moneys obtained by gift, grant, bequest or
donation deposited into the subaccount.
(8) The Access and Habitat Board
Subaccount is established in the Fish and Wildlife Account. The subaccount
shall consist of moneys transferred to the subaccount pursuant to ORS 496.242.
Moneys in the subaccount may be used for the purposes specified in ORS 496.242.
(9) The Marine Shellfish Subaccount is
established in the Fish and Wildlife Account. Interest earnings on moneys in
the subaccount shall be credited to the subaccount. All moneys received by the
commission from the sale of resident and nonresident shellfish licenses
pursuant to ORS 497.121 shall be deposited in the subaccount. Moneys in the
subaccount shall be used for the protection and enhancement of shellfish for
recreational purposes, including shellfish sanitation costs and the cost of
enforcement of wildlife laws pertaining to the taking of shellfish. The State
Fish and Wildlife Director, or a designee, the Director of Agriculture, or a
designee, and the Superintendent of State Police, or a designee, shall jointly
make a recommendation to the Governor for inclusion in the Governor’s budget
beginning July 1 of each odd-numbered year.
(10)(a) The Mountain Sheep Subaccount
is established in the Fish and Wildlife Account, consisting of moneys collected
under ORS 497.112 (2)(a) to (c).
(b) All moneys in the subaccount shall
be used for the propagation and conservation of mountain sheep, for research,
development, management, enhancement and sale or exchange of mountain sheep
habitat and for programs within the state that in the discretion of the
commission most directly benefit mountain sheep resources of this state.
(11)(a) The Antelope Subaccount is
established in the Fish and Wildlife Account, consisting of moneys collected
under ORS 497.112 (2)(a) to (c).
(b) All moneys in the subaccount shall
be used for the propagation and conservation of antelope, for research,
development, management, enhancement and sale or exchange of antelope habitat
and for programs within the state that in the discretion of the commission most
directly benefit antelope resources of this state.
(12)(a) The Mountain Goat Subaccount
is established in the Fish and Wildlife Account, consisting of moneys collected
under ORS 497.112 (2)(a) to (c).
(b) All moneys in the subaccount shall
be used for the propagation and conservation of mountain goats for research, development,
management, enhancement and sale or exchange of mountain goat habitat and for
programs within the state that in the discretion of the commission most
directly benefit mountain goat resources of this state.
(13)(a) The commission shall keep a record
of all moneys deposited in the Fish and Wildlife Account. The record shall
indicate by separate cumulative accounts the sources from which the moneys are
derived and the individual activity or programs against which each withdrawal
is charged.
(b) Using the record created pursuant
to paragraph (a) of this subsection, the commission shall report, in the budget
documents submitted to the Legislative Assembly, on the application of
investment and interest earnings to the maintenance of fish hatcheries and
other State Department of Fish and Wildlife facilities.
SECTION 19. ORS 314.752, as amended
by section 26, chapter 76, Oregon Laws 2010, is amended to read:
314.752. (1) Except as provided in ORS
314.740 (5)(b), the tax credits allowed or allowable to a C corporation for
purposes of ORS chapter 317 or 318 shall not be allowed to an S corporation.
The business tax credits allowed or allowable for purposes of ORS chapter 316
shall be allowed or are allowable to the shareholders of the S corporation.
(2) In determining the tax imposed
under ORS chapter 316, as provided under ORS 314.734, on income of the
shareholder of an S corporation, there shall be taken into account the
shareholder’s pro rata share of business tax credit (or item thereof) that
would be allowed to the corporation (but for subsection (1) of this section) or
recapture or recovery thereof. The credit (or item thereof), recapture or
recovery shall be passed through to shareholders in pro rata shares as
determined in the manner prescribed under section 1377(a) of the Internal
Revenue Code.
(3) The character of any item included
in a shareholder’s pro rata share under subsection (2) of this section shall be
determined as if such item were realized directly from the source from which
realized by the corporation, or incurred in the same manner as incurred by the
corporation.
(4) If the shareholder is a
nonresident and there is a requirement applicable for the business tax credit
that in the case of a nonresident the credit be allowed in the proportion
provided in ORS 316.117, then that provision shall apply to the nonresident
shareholder.
(5) As used in this section, “business
tax credit” means a tax credit granted to personal income taxpayers to
encourage certain investment, to create employment, economic opportunity or
incentive or for charitable, educational, scientific, literary or public
purposes that is listed under this subsection as a business tax credit or is
designated as a business tax credit by law or by the Department of Revenue by rule
and includes but is not limited to the following credits: ORS 285C.309 (tribal
taxes on reservation enterprise zones and reservation partnership zones), ORS
315.104 (forestation and reforestation), ORS 315.134 (fish habitat
improvement), ORS 315.138 (fish screening, by-pass devices, fishways), ORS
315.156 (crop gleaning), ORS 315.164 and 315.169 (farmworker housing), ORS
315.204 (dependent care assistance), ORS 315.208 (dependent care facilities),
ORS 315.213 (contributions for child care), ORS 315.304 (pollution control
facility), ORS 315.324 (plastics recycling), ORS 315.354 and 469.207 (energy
conservation facilities), ORS 315.507 (electronic commerce), ORS 315.511
(advanced telecommunications facilities), ORS 315.604 (bone marrow transplant
expenses), ORS 317.115 (fueling stations necessary to operate an alternative
fuel vehicle) and ORS 315.141 (biomass production for biofuel) and section
23 of this 2011 Act (renewable energy development contributions), section 35 of
this 2011 Act (energy conservation projects) and section 53 of this 2011 Act
(transportation projects).
SECTION 20. ORS 318.031 is amended to
read:
318.031. It being the intention of the
Legislative Assembly that this chapter and ORS chapter 317 shall be
administered as uniformly as possible (allowance being made for the difference
in imposition of the taxes), ORS 305.140 and 305.150, ORS chapter 314 and the
following sections are incorporated into and made a part of this chapter: ORS
285C.309, 315.104, 315.134, 315.141, 315.156, 315.204, 315.208, 315.213,
315.304, 315.507, 315.511 and 315.604 and sections 23, 35 and 53 of this
2011 Act (all only to the extent applicable to a corporation) and ORS
chapter 317.
SECTION 21. ORS 315.053 is amended to
read:
315.053. An income tax credit allowed
under ORS 315.141[,] or315.354
[or 315.514] or section 47, chapter
843, Oregon Laws 2007, or section 12, chapter 855, Oregon Laws 2007, or
section 35 or 53 of this 2011 Act may be transferred or sold only to one or
more of the following:
(1) A C corporation.
(2) An S corporation.
(3) A personal income taxpayer.
SECTION 21a. Section 3, chapter 595,
Oregon Laws 2005, as amended by section 79, chapter 843, Oregon Laws 2007, is
amended to read:
Sec. 3. Notwithstanding ORS
285C.500 (5), for purposes of preliminary certifications issued under ORS
285C.503 on or after January 1, 2006, [and
before January 1, 2011] based on applications for preliminary
certification filed before July 1, 2016, and annual certifications issued
under ORS 285C.506 that are associated with preliminary certifications issued
under ORS 285C.503 on or after January 1, 2006, [and before January 1, 2011:] based on applications for
preliminary certification filed before July 1, 2016,
[(1)]
“qualified location” means any area that is:
[(a)]
(1) Within the urban growth boundary of a city that has 15,000 or fewer
residents or is land zoned for industrial use; and
[(b)]
(2) Located in a county that, during either of the two years preceding the
date an application for preliminary certification is filed under ORS 285C.503
and this section, had:
[(A)]
(a) A county unemployment rate that was in the highest third of county
unemployment rates in this state; or
[(B)]
(b) A county per capita personal income that was in the lowest third of
county per capita personal incomes in this state.
[(2)
The minimum annual compensation requirements of ORS 285C.503 (5)(d) do not
apply.]
[(3)
In lieu of the requirements of ORS 285C.506 (5), the Oregon Business
Development Department shall approve an application for annual certification if
the business firm satisfies the requirements of ORS 285C.506 (5)(a) and (6)(c)
and the business firm satisfies the employment requirements of ORS 285C.503
(5)(c).]
SECTION 21b. ORS 285C.506 is amended
to read:
285C.506. (1) Following completion of
the construction, reconstruction, modification, acquisition, installation or
lease of the facility, the hiring of employees to conduct business operations
at the facility and the commencement of operations at the facility, a business
firm that obtained preliminary certification under ORS 285C.503 may apply for
annual certification under this section.
(2) The application shall be filed
with the Oregon Business Development Department on or before 30 days after the
end of the income or corporate excise tax year of the business firm.
(3) The application shall contain the
following information:
(a) A description of the business
operations conducted at the facility;
(b) The date business operations
commenced at the facility;
(c) The number of full-time,
year-round employees employed by the business firm at the facility;
(d) A schedule of the annual
compensation paid to the employees; and
(e) Any other information required by
the department.
(4) An application filed under this section
must be accompanied by a fee in an amount prescribed by the department by rule.
The fee required by the department may not exceed $100.
(5) The department shall review a
business firm’s application and approve the application if:
(a) The business operations of the
firm at the facility commenced at least 24 months before the date of
application for annual certification but within 10 years before the end of
the tax year preceding the date of application for annual certification; and
(b) The business firm has satisfied
the employment and minimum compensation requirements described in ORS 285C.503
(5)(c) and (d).
(6) In the case of the first
application for annual certification filed by a business firm under this
section, the department may approve the application only if, in addition to the
requirements of subsection (5) of this section:
(a) Business operations commenced at
the facility within a reasonable period of time, as determined by the
department by rule, following the date of preliminary certification under ORS
285C.503;
(b) There has not been a significant
interruption in construction, reconstruction, modification or installation
activity at the location, as determined by the department by rule, following
the date of preliminary certification under ORS 285C.503; and
(c) The facility and the business
operations actually conducted at the facility are reasonably similar to the
proposed facility and proposed operations described in the application for
preliminary certification.
(7) After the first application for
annual certification, the department may approve a subsequent application or
certification filed under this section only if:
(a) The business firm meets the
requirements of subsection (5) of this section; and
(b) The facility and the business
operations actually conducted at the facility retain similar characteristics to
the facility and the business operations actually conducted at the facility
during the period of prior certification. This paragraph does not preclude an
applicant from changing the location of the facility, the ownership or
organization of the business firm or other aspects of the facility or business
firm that are within the intent of ORS 285C.500 to 285C.506 if the change is
made in accordance with rules adopted by the department.
(8) The department may consult with
the city or county in determining whether to approve or disapprove an
application under this section.
(9) If the department approves an
application, it shall issue an annual certification to the business firm.
(10) If the department disapproves an
application, the business firm or any owner of the business firm may not be
allowed the exemption described in ORS 316.778 or 317.391 for the tax year for
which the annual certification was sought or for any subsequent tax year.
(11) The decision of the department to
disapprove an application under this section may be appealed in the manner of a
contested case under ORS chapter 183.
(12) An annual certification may not
be issued under this section for a tax year that is more than nine consecutive
tax years following the first tax year an exemption is allowed under ORS
316.778 or 317.391 with respect to the facility.
(13) The department must approve or
disapprove an application under this section within 30 days of the date the
application is filed.
SECTION 21c. The amendments to ORS
285C.506 and section 3, chapter 595, Oregon Laws 2005, by sections 21a and 21b
of this 2011 Act apply to applications for preliminary certification filed
under ORS 285C.503 on or after July 1, 2011.
TAX CREDIT FOR
RENEWABLE ENERGY
DEVELOPMENT
CONTRIBUTIONS
SECTION 22. Sections 23 and 24 of
this 2011 Act are added to and made a part of ORS chapter 315.
SECTION 23. (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 renewable energy development contributions made by the taxpayer
during the tax year to the Renewable Energy Development Subaccount, established
in section 24a of this 2011 Act, of the Clean Energy Deployment Fund
established in section 1, chapter 467, Oregon Laws 2011 (Enrolled House Bill
2960).
(2)(a) The Department of Revenue
shall, in cooperation with the State Department of Energy, conduct an auction
of tax credits under this section. The department may conduct the auction in
the manner that it determines is best suited to maximize the return to the
state on the sale of tax credit certifications and shall announce a reserve bid
prior to conducting the auction. The reserve amount shall be at least 95
percent of the total amount of the tax credit. Moneys necessary to reimburse
the Department of Revenue for the actual costs incurred by the department in
administering an auction, not to exceed 0.25 percent of auction proceeds, are
continuously appropriated to the department. The Department of Revenue shall
deposit net receipts from the auction required under this section in the
Renewable Energy Development Subaccount, established in section 24a of this
2011 Act, of the Clean Energy Deployment Fund established in section 1, chapter
467, Oregon Laws 2011 (Enrolled House Bill 2960). Net receipts from the auction
required under this section shall be used only for purposes related to
renewable energy development.
(b) The State Department of Energy
shall adopt rules in order to achieve the following goals:
(A) Subject to paragraph (a) of this
subsection, generate contributions for which tax credits of $1.5 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) Contributions made under this
section shall be deposited in the Renewable Energy Development Subaccount,
established in section 24a of this 2011 Act, of the Clean Energy Deployment
Fund established in section 1, chapter 467, Oregon Laws 2011 (Enrolled House
Bill 2960).
(4)(a) Upon receipt of a contribution,
the State Department of Energy shall, except as provided in section 24 of this
2011 Act, 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 $1.5 million for the fiscal year in which
certification is made.
(b) The State Department of Energy and
the Department of Revenue are 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.
(5) The tax credit allowed under this
section for any one tax 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, 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.
(7) 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.
(8) 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.
SECTION 24. (1) In lieu of the
issuance of certifications for tax credit under section 23 of this 2011 Act by
the State Department of Energy, the Legislative Assembly may, no later than 30 days
prior to the end of each fiscal year, appropriate to the State Department of
Energy for deposit into the Renewable Energy Development Subaccount,
established in section 24a of this 2011 Act, of the Clean Energy Deployment
Fund established in section 1, chapter 467, Oregon Laws 2011 (Enrolled House
Bill 2960), an amount equal to the total amount that would otherwise be
certified for tax credits during the current fiscal year, based on the amount
of contributions and accompanying applications for credit received by the
department during the fiscal year. Moneys deposited under this section are to
be used only for purposes related to renewable energy development.
(2) If the Legislative Assembly makes
the election allowed in subsection (1) of this section:
(a) Any contributions made pursuant to
section 23 of this 2011 Act to the Renewable Energy Development Subaccount
during the current fiscal year and for which an application for a credit under
section 23 of this 2011 Act is pending shall, at the request of the taxpayer,
be refunded by the State Department of Energy; and
(b) A credit under section 23 of this
2011 Act may not be claimed for any contribution made during the current fiscal
year.
SECTION 24a. (1) The Renewable
Energy Development Subaccount is established in the Clean Energy Deployment
Fund established in section 1, chapter 467, Oregon Laws 2011 (Enrolled House
Bill 2960). Interest earned by the Renewable Energy Development Subaccount
shall be credited to the subaccount. Moneys in the fund are continuously
appropriated to the State Department of Energy for purposes related to
renewable energy development.
(2) The department may accept grants,
donations, contributions or gifts from any source for deposit in the Renewable
Energy Development Subaccount.
SECTION 25. A taxpayer may not be
allowed a credit under section 23 of this 2011 Act for any tax year that begins
on or after January 1, 2018.
SECTION 26. Sections 27 to 33 of
this 2011 Act are added to and made a part of ORS chapter 469.
SECTION 27. As used in sections 27
to 33 of this 2011 Act:
(1) “Biomass” has the meaning given
that term in ORS 315.141.
(2) “Cost” means the actual cost of
the acquisition, construction and installation of the renewable energy
production system paid by the applicant for the system, before considering
utility incentives.
(3) “Renewable energy production
system” means a system that uses biomass, solar, geothermal, hydroelectric,
wind, landfill gas, biogas or wave, tidal or ocean thermal energy technology to
produce energy.
(4) “Solar technology” means any
system, mechanism or series of mechanisms, including photovoltaic systems, that
uses solar radiation to generate electrical energy.
NOTE: Section 28 was
deleted by amendment. Subsequent sections were not renumbered.
SECTION 29. (1) Prior to the installation or construction of a renewable energy
production system, any person may apply to the State Department of Energy for a
grant under section 30 of this 2011 Act if:
(a) The applicant will be the owner, contract
purchaser or lessee of the system at the time of installation or construction
of the proposed system;
(b) The system does not exceed 35
megawatts of nameplate capacity;
(c) The system is located in Oregon;
and
(d) The system complies with the standards
or rules adopted by the Director of the State Department of Energy.
(2) An application for a grant under
section 30 of this 2011 Act shall be made in writing on a form prepared by the
department and shall contain:
(a) A detailed description of the
system and its operation and information showing that the system will operate
as represented in the application and remain in operation for at least five
years, unless the director by rule specifies another period of operation.
(b) The anticipated total system cost.
(c) Information on the number and type
of jobs that will be created by the system, and the number of jobs sustained
throughout the construction, installation and operation of the system.
(d) Information demonstrating that the
system will comply with applicable state and local laws and regulations and
obtain required licenses and permits.
(e) Any other information the director
considers necessary to determine whether the system is in accordance with the
provisions of sections 27 to 33 of this 2011 Act, and any applicable rules or
standards adopted by the director.
(3) An application for a grant shall
be accompanied by a fee established under section 31 of this 2011 Act. The
director may refund all or a portion of the fee if the application for a grant
is rejected.
(4) The director may allow an
applicant to file the application for a grant after the start of installation
or construction of the system if the director finds that:
(a) Filing the application before the
start of installation or construction is inappropriate because special
circumstances render filing earlier unreasonable; and
(b) The system would otherwise qualify
for a grant under sections 27 to 33 of this 2011 Act.
SECTION 30. (1) The Director of
the State Department of Energy may require an applicant for a grant under this
section for a renewable energy production system to submit plans,
specifications and contract terms, and after examination of the plans,
specifications and terms may request corrections and revisions.
(2) If the director determines that
the system is technically feasible and should operate in accordance with the
representations made by the applicant, and is in accordance with the provisions
of sections 27 to 33 of this 2011 Act and any applicable rules or standards
adopted by the director, the director may enter into a performance agreement
with the applicant in anticipation of awarding a grant under this section. The
grant provided for in the performance agreement may not exceed 35 percent of
the cost of the project and may not exceed $250,000 per system. If construction
does not begin within 12 months of an award under this section, the performance
agreement shall be void and the State Department of Energy may not award the
grant.
(3) The director may, in accordance
with ORS chapter 183, deny a grant under this section if the director
determines that:
(a) The system does not comply with
the provisions of sections 27 to 33 of this 2011 Act and applicable rules and
standards;
(b) The applicant was directly involved
in an act for which the director has levied civil penalties or revoked,
canceled or suspended any certification under ORS 469.185 to 469.225 or section
23 of this 2011 Act, or any grant under sections 27 to 33 of this 2011 Act; or
(c) The applicant or the principal,
director, officer, owner, majority shareholder or member of the applicant, or
the manager of the applicant if the applicant is a limited liability company,
is in arrears for payments owed to any government agency while in any capacity with
direct or indirect control over a business.
(4) The department shall reduce the
amount of grant allowable to an applicant if, when combined with other
government incentives or grants available to the applicant, the amount
calculated under subsection (2) of this section exceeds 75 percent of the total
system cost calculated under this section.
(5) If the director determines that
the applicant has complied with all provisions of the performance agreement
required under this section and with the provisions of sections 27 to 33 of
this 2011 Act, the director shall award the grant provided in this section.
(6) Upon determination by the director
that the applicant has violated the provisions of the performance agreement or
sections 27 to 33 of this 2011 Act, the applicant will be liable to the
department for all grant moneys disbursed to the applicant.
SECTION 31. By rule and after
hearing, the Director of the State Department of Energy may adopt a schedule of
reasonable fees that the State Department of Energy may require of applicants
for a grant for a renewable energy production system under sections 27 to 33 of
this 2011 Act or for tax credit certification under section 23 of this 2011
Act. Before the adoption or revision of the fees, the department shall estimate
the total cost of the program to the department. The fees shall be used to
recover the anticipated cost of administering and enforcing the provisions of
sections 27 to 33 of this 2011 Act, including filing, investigating, granting
and rejecting applications for grant or tax credit certification and ensuring
compliance with sections 23, 24 and 27 to 33 of this 2011 Act and shall be
designed not to exceed the total cost estimated by the department. Any excess
fees shall be held by the department and shall be used by the department to
reduce any future fee increases. The fee may vary according to the size and
complexity of the system. The fee is not considered part of the cost of the
system for which a grant is being sought.
SECTION 32. (1) The total amount
of potential tax credits for certified renewable energy development
contributions in this state may not, at the time of certification under section
23 of this 2011 Act, exceed:
(a) $3 million for any biennium; or
(b) $750,000 for the six months
beginning July 1, 2017, and ending December 31, 2017.
(2) In the event that the Director of
the State Department of Energy receives applications for grants under section
30 of this 2011 Act in excess of the contributions received pursuant to section
23 of this 2011 Act, the director shall allocate the issuance of grants
according to standards and criteria established by rule by the director.
SECTION 32a. The State Department
of Energy and the Department of Revenue shall report, not later than February
15, 2012, to the Legislative Assembly on the operation of the auction process
required in section 23 of this 2011 Act.
SECTION 33. The State Department
of Energy shall by rule establish policies and procedures for the
administration and enforcement of the provisions of sections 23, 24 and 27 to
33 of this 2011 Act, including standards for what constitutes a single
renewable energy production system.
SECTION 33a. Sections 23, 24 and
27 to 33 of this 2011 Act apply to applications for grants submitted under
section 29 of this 2011 Act after July 1, 2011, and to tax years beginning on
or after January 1, 2011.
TAX CREDIT FOR
ENERGY CONSERVATION PROJECTS
SECTION 34. Sections 35 and 36 are
added to and made a part of ORS chapter 315.
SECTION 35. (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, for an energy
conservation project that is certified under sections 38 to 50 of this 2011
Act. 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 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 project must be located in
Oregon.
(b) The project must have received
final certification from the Director of the State Department of Energy under
sections 38 to 50 of this 2011 Act.
(c) If the project is a research and
development project, it must receive, prior to certification under section 44
of this 2011 Act, a recommendation from a qualified third party selected by the
director.
(d) If the project is new construction
or a total building retrofit, then the project must achieve, at a minimum, the
energy efficiency standards required for:
(A) LEED Platinum certification;
(B) A four globes rating from the
Green Globes program;
(C) A nationally or regionally
recognized and appropriate sustainable building program whose performance
standards are equivalent to the standards required for LEED Platinum
certification or a four globes rating from the Green Globes program, as
determined by the department; or
(D) Verification that the construction
conformed to the standards of the Reach Code adopted pursuant to ORS 455.500.
(3) The total amount of credit
allowable to an eligible taxpayer under this section may not exceed 35 percent
of the certified cost of the project.
(4)(a) Upon any sale, termination of
the lease or contract, exchange or other disposition of the project, notice
thereof shall be given to the director, who shall revoke the certificate
covering the project as of the date of such disposition.
(b) A new owner, or, upon re-leasing
of the project, a new lessee, may apply for a new certificate under section 45
of this 2011 Act. The new lessee or owner must meet the requirements of
sections 38 to 50 of this 2011 Act and may claim a tax credit under this
section only if all moneys owed by the new owner or lessee to the State of
Oregon have been paid, if the project continues to operate and if all
conditions in the final certification are met. 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 lessee, the amount of credit not claimed by the lessee
under all previous leases. The State Department of Energy may waive the
requirement that a new owner or lessee apply for a new certificate under
section 45 of this 2011 Act if the remaining credit is less than $20,000.
(c) The department may not revoke the
certificate covering a project under paragraph (a) of this subsection if the
tax credit associated with the project has been transferred to a taxpayer who
is an eligible applicant under section 43 of this 2011 Act.
(5) The tax credit allowed under this
section for any one tax 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 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, 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.
(7) The credit allowed under this
section is not in lieu of any depreciation or amortization deduction for the
project to which the taxpayer otherwise may be entitled for purposes of ORS
chapter 316, 317 or 318 for such year.
(8) The taxpayer’s adjusted basis for
determining gain or loss may not be decreased by any tax credits allowed under
this section.
(9) The definitions in section 38 of
this 2011 Act apply to this section.
SECTION 36. (1) A taxpayer may not
be allowed a credit under section 35 of this 2011 Act if the first tax year for
which the credit would otherwise be allowed, with respect to an energy
conservation project certified under section 45 of this 2011 Act, begins on or
after January 1, 2018.
(2) A taxpayer may not be allowed a
credit for an energy conservation project that is a cogeneration facility as
that term is defined in ORS 758.505 for a tax year that begins before January
1, 2013.
SECTION 37. Sections 38 to 50 of
this 2011 Act are added to and made a part of ORS chapter 469.
SECTION 38. As used in sections 35
and 38 to 50 of this 2011 Act:
(1) “Cost” means the capital costs and
expenses necessarily incurred in the acquisition, erection, construction and
installation of an energy conservation project.
(2) “Energy conservation project”
means any capital investment for which the first year energy savings yields a
simple payback period of greater than three years. “Energy conservation project”
does not include:
(a) Recycling equipment, products and
projects;
(b) Transportation projects;
(c) Energy recovery as that term is
defined in ORS 459.005; or
(d) Alternative fuel vehicles.
(3) “Four globes” means the highest of
four tiers of ratings for certification in the Green Globes program rating
system.
(4) “Green Globes program” means a
building guidance and assessment program to advance overall environmental
performance and sustainability of commercial buildings established by the Green
Building Initiative.
(5)(a) “LEED” means the Leadership in
Energy and Environmental Design rating system for certification of
energy-efficient and environmentally sustainable buildings established by the
U.S. Green Building Council.
(b) “LEED Platinum” means the highest
of four tiers of standards for certification in the LEED rating system.
SECTION 39. (1) In determining the
priority of any energy conservation project for tax credits, preference shall
be given to those projects that have the highest energy savings over the
five-year credit allowance period per tax credit dollar.
(2) In administering this section, the
Director of the State Department of Energy shall compare projects of similar
technology types against each other, take into account the amount of energy
saved over the life of the equipment, market or industry sector, expected
lifespan of the project compared to the simple payback period, whether the
energy savings of the project benefit a party other than the owner and any
other factors defined in State Department of Energy rule. The department may
certify less than the total cost of any project based on this evaluation.
SECTION 40. (1) The owner of a
project may transfer a tax credit for the project in exchange for a cash
payment equal to the present value of the tax credit.
(2) The State Department of Energy
shall establish by rule a formula to be employed in the determination of prices
of credits transferred under this section. In establishing the formula the
department shall incorporate inflation projections and market real rate of
return.
(3) The department shall recalculate
credit transfer prices quarterly, employing the formula established under
subsection (2) of this section.
SECTION 41. The State Department
of Energy shall by rule establish the following standards relating to energy
conservation projects:
(1) In consultation with the
Department of Consumer and Business Services Building Codes Division, standards
relating to energy savings in new construction.
(2) Standards relating to what
constitutes a replacement of inefficient equipment.
(3) Standards for the determination of
total project cost.
(4) Standards for the application of
third party review of research and development projects by a qualified third
party selected by the Director of the State Department of Energy, as required
in section 43 of this 2011 Act.
SECTION 42. For an energy
conservation project, the total amount that receives a preliminary
certification from the Director of the State Department of Energy may not
exceed $10 million in certified cost.
SECTION 43. (1) Prior to the
installation or construction of an energy conservation project, any person may
apply to the State Department of Energy for preliminary certification under
section 44 of this 2011 Act if:
(a) The project complies with the
standards adopted by the Director of the State Department of Energy; and
(b) The applicant will be the owner,
contract purchaser or lessee of the project at the time of installation or
construction of the project.
(2) An application for preliminary certification
shall be made in writing on a form prepared by the department and shall
contain:
(a) A statement that the applicant
plans to acquire, construct or install a project that substantially reduces the
consumption of purchased energy or uses energy more efficiently.
(b) A detailed description of the
project and its operation and information showing that the project will operate
as represented in the application and remain in operation for at least five
years, unless the director by rule specifies another period of operation.
(c) Information on the amount by which
consumption of purchased energy by the applicant will be reduced, and, if
applicable, information about the expected level of sustainable building
practices project performance.
(d) The anticipated total project
cost.
(e) Information on the number and type
of jobs that will be created by the project, the number of jobs sustained
throughout the construction, installation and operation of the project and the
benefits of the project with regard to overall economic activity in this state.
(f) Information demonstrating that the
project will comply with applicable state and local laws and regulations and
obtain required licenses and permits.
(g) Information relating to the
standards described in section 41 of this 2011 Act.
(h) A recommendation for a research
and development project as demonstrative of innovation that has been made by a
qualified third party selected by the director.
(i) Any other information the director
considers necessary to determine whether the project is in accordance with the
provisions of sections 38 to 50 of this 2011 Act, and any applicable rules or
standards adopted by the director.
(3) An application for preliminary
certification shall be accompanied by a fee established under section 46 of
this 2011 Act. The director may refund all or a portion of the fee if the
application for certification is rejected.
(4) The director may allow an
applicant to file the application for preliminary certification after the start
of installation or construction of the project if the director finds that:
(a) Filing the application before the
start of installation or construction is inappropriate because special
circumstances render filing earlier unreasonable; and
(b) The project would otherwise
qualify for certification under sections 38 to 50 of this 2011 Act.
(5) The director may, by rule, waive
preliminary certification under section 44 of this 2011 Act, or may establish
an informational filing system in place of preliminary certification, for
projects that:
(a) Have eligible costs of less than
$20,000;
(b) Consist of measures that the
director determines to be eligible for waiver of preliminary certification; and
(c) Comply with any other requirements
established by the director.
(6) Except as provided in subsection
(7) of this section, a preliminary certification shall remain valid for a
period of three calendar years after the date on which the preliminary
certification is issued by the director, after which the certification becomes
invalid even if:
(a) The applicant is awaiting
identification of a pass-through partner; or
(b) The preliminary certification has
been amended.
(7) Any preliminary certification for
a facility consistent with an energy conservation project, under ORS 469.210,
that remains outstanding as of July 1, 2011, shall expire on July 1, 2014.
SECTION 44. (1) The Director of
the State Department of Energy may require an applicant for certification of an
energy conservation project to submit plans, specifications and contract terms,
and after examination of the plans, specifications and terms may request
corrections and revisions.
(2) If the director determines that
the project is technically feasible and should operate in accordance with the
representations made by the applicant, and is in accordance with the provisions
of sections 38 to 50 of this 2011 Act and any applicable rules or standards
adopted by the director, the director may issue a preliminary certificate
approving the installation or construction of the project. The certificate
shall indicate the potential amount of tax credit allowable and shall list any
conditions for claiming the credit.
(3) In accordance with ORS chapter
183, the director may issue an order altering, conditioning, suspending or
denying preliminary certification if the director determines that:
(a) The project does not comply with
the provisions of sections 38 to 50 of this 2011 Act and applicable rules and
standards;
(b) The applicant has previously
received preliminary or final certification for the project;
(c) The applicant was directly
involved in an act for which the director has levied civil penalties or
revoked, canceled or suspended any certification under ORS 469.185 to 469.225
or sections 38 to 50 of this 2011 Act; or
(d) The applicant or the principal,
director, officer, owner, majority shareholder or member of the applicant, or
the manager of the applicant if the applicant is a limited liability company,
is in arrears for payments owed to any government agency while in any capacity
with direct or indirect control over a business.
SECTION 45. (1) The Director of
the State Department of Energy may issue a final certification for an energy
conservation project under this section only if:
(a) The project was installed or
constructed under a preliminary certificate of approval issued under section 44
of this 2011 Act, unless preliminary certification is waived under section 43
(5) of this 2011 Act;
(b) The applicant demonstrates the
ability to provide the information required by section 43 (2) of this 2011 Act
and does not violate any condition that may be imposed as described in
subsection (4) of this section; and
(c) The project was installed or
constructed in accordance with the applicable provisions of sections 38 to 50
of this 2011 Act and any applicable rules or standards adopted by the director.
(2) Any person may apply to the State
Department of Energy for final certification of a project:
(a) If the person received preliminary
certification for the project under section 44 of this 2011 Act; and
(b) After completion of the
installation or construction of the project.
(3) An application for final
certification shall be made in writing on a form prepared by the department and
shall contain:
(a) A statement that the conditions of
the preliminary certification have been complied with;
(b) The actual cost of the project
attested to by a certified public accountant who is not an employee of the
applicant or, if the actual cost of the project is less than $50,000, copies of
receipts for purchase and installation of the project;
(c) The amount of the credit under
section 35 of this 2011 Act that is to be claimed;
(d) The number and type of jobs
created by the operation and maintenance of the project over the five-year
period beginning with the year of preliminary certification under section 44 of
this 2011 Act and information on the benefits of the project with regard to
overall economic activity in this state;
(e) Information sufficient to
demonstrate that the project will remain in operation for at least five years,
unless the director by rule specifies another period of operation;
(f) Documentation of compliance with
applicable state and local laws and regulations and licensing and permitting
requirements as defined by the director;
(g) Information, if applicable,
pertaining to prior recommendation of the project by a qualified third party
selected by the director; and
(h) Any other information determined
by the director to be necessary prior to issuance of a final certificate,
including inspection of the project by the department.
(4) After the filing of the
application under this section, the director may issue the certificate together
with any conditions that the director determines are appropriate to promote the
purposes of sections 35 and 38 to 50 of this 2011 Act. If the applicant is an
entity subject to regulation by the Public Utility Commission, the director may
consult with the commission prior to issuance of the certificate. The action of
the director shall include certification of the actual cost of the project.
However, the director may not certify an amount for tax credit purposes that is
more than the amount approved in the preliminary certificate issued for the
project.
(5) If the director rejects an
application for final certification, or certifies a lesser amount of credit
than was claimed in the application, the director shall send to the applicant
written notice of the action, together with a statement of the findings and
reasons for the action, by certified mail, before the 60th day after the filing
of the application. Failure of the director to act constitutes rejection of the
application.
(6) Upon approval of an application
for final certification of a project, the director shall certify the project.
The final certification shall indicate the amount of projected energy savings
attributable to the project and the total project cost.
(7) The director may establish by rule
timelines and intermediate deadlines for submission of application materials.
SECTION 46. By rule and after
hearing, the Director of the State Department of Energy may adopt a schedule of
reasonable fees that the State Department of Energy may require of applicants
for preliminary or final certification of an energy conservation project under
sections 38 to 50 of this 2011 Act. Before the adoption or revision of the
fees, the department shall estimate the total cost of the program to the
department. The fees shall be used to recover the anticipated cost of administering
and enforcing the provisions of sections 38 to 50 of this 2011 Act, including
filing, investigating, granting and rejecting applications for certification
and ensuring compliance with sections 38 to 50 of this 2011 Act and shall be
designed not to exceed the total cost estimated by the department. Any excess
fees shall be held by the department and shall be used by the department to
reduce any future fee increases. The fee may vary according to the size and
complexity of the project. The fee is not considered part of the cost of the
project to be certified.
SECTION 47. (1) A certificate
issued under section 45 of this 2011 Act is required for purposes of obtaining
tax credits in accordance with section 35 of this 2011 Act. Such certification
shall be granted for a period not to exceed five years. The five-year period
shall begin with the tax year of the applicant during which the completed
application for final certification of the project under section 45 of this
2011 Act is received by the State Department of Energy.
(2) If the original owner of the
certificate uses any portion of the credit, the certificate becomes
nontransferable.
(3) For a transferee holding a credit
that has been transferred under section 40 of this 2011 Act, the five-year period
shall begin with the tax year in which the transferee pays for the credit.
SECTION 48. (1) Under the
procedures for a contested case under ORS chapter 183, the Director of the
State Department of Energy may order the revocation of a certificate issued
under section 45 of this 2011 Act if the director finds that:
(a) The certification was obtained by
fraud or misrepresentation;
(b) The holder of the certificate or
the operator of the project has failed to construct or operate the project in
compliance with the plans, specifications and procedures in the certificate; or
(c) The project is no longer in
operation.
(2) As soon as an order of revocation
under this section becomes final, the director shall notify the Department of
Revenue and the project owner, contract purchaser or lessee of the order of
revocation. Upon notification, the Department of Revenue immediately shall
proceed to collect those taxes not paid by the certificate holder as a result
of the tax credits provided to the certificate holder under section 35 of this
2011 Act, from the certificate holder or a successor in interest to the
business interests of the certificate holder. All prior tax credits provided to
the holder of the certificate by virtue of the certificate shall be forfeited.
(3)(a) The Department of Revenue shall
have the benefit of all laws of this state pertaining to the collection of
income and excise taxes and may proceed to collect the amounts described in
subsection (2) of this section from the person that obtained certification from
the State Department of Energy, or any successor in interest to the business
interests of that person. An assessment of tax is not necessary and a statute
of limitation does not preclude the collection of taxes described in this
subsection.
(b) For purposes of this subsection, a
lender, bankruptcy trustee or other person that acquires an interest through
bankruptcy or through foreclosure of a security interest is not considered to
be a successor in interest to the business interests of the person that
obtained certification.
(4) If the certificate is ordered
revoked pursuant to subsection (1)(b) of this section, the certificate holder
shall be denied any further relief under section 35 of this 2011 Act in
connection with the project from and after the date that the order of
revocation becomes final.
(5) Notwithstanding subsections (1) to
(4) of this section, a certificate or portion of a certificate held by a
transferee under section 40 of this 2011 Act may not be considered revoked for
purposes of the transferee, the tax credit allowable to the transferee under
section 40 of this 2011 Act may not be reduced, and a transferee is not liable
under subsections (2) to (4) of this section.
SECTION 49. (1) The total amount
of potential tax credits for all energy conservation projects in this state may
not, at the time of preliminary certification under section 44 of this 2011
Act, exceed:
(a) $28 million for any biennium; or
(b) $7.5 million for the six months
beginning July 1, 2017, and ending December 31, 2017.
(2) In the event that the Director of
the State Department of Energy receives applications for preliminary
certification with a total amount of certified costs for potential tax credits
in excess of the limitations in subsections (1) of this section, the director
shall allocate the issuance of preliminary certifications according to
standards and criteria established by rule by the director.
SECTION 50. The State Department
of Energy shall by rule establish policies and procedures for the
administration and enforcement of the provisions of sections 35, 36 and 38 to
50 of this 2011 Act, including standards for what constitutes a single energy
conservation project.
SECTION 51. Sections 35, 36 and 38
to 50 of this 2011 Act apply to applications for preliminary certification
submitted under section 43 of this 2011 Act after July 1, 2011, and to tax
years beginning on or after January 1, 2011.
TAX CREDIT FOR
TRANSPORTATION
PROJECTS
SECTION 52. Sections 53 and 54 of
this 2011 Act are added to and made a part of ORS chapter 315.
SECTION 53. (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, for a transportation
project, based upon the certified cost of the project during the period for
which the project is certified under sections 56 to 65 of this 2011 Act.
(2) The credit allowed for a project
other than an alternative fuel vehicle infrastructure project shall be as
follows:
(a) For tax years beginning on or
after January 1, 2011, and before January 1, 2012, the maximum allowed credit
shall be:
(A) 35 percent of certified cost, if a
preliminary certification is issued under section 59 of this 2011 Act prior to
July 1, 2011; or
(B) 25 percent of certified cost, if a
preliminary certification is issued under section 59 of this 2011 Act on or
after July 1, 2011, and before January 1, 2012.
(b) For tax years beginning on or
after January 1, 2012, and before January 1, 2013, the maximum allowed credit
shall be 25 percent of certified cost.
(c) For tax years beginning on or
after January 1, 2013, and before January 1, 2014, the maximum allowed credit
shall be 20 percent of certified cost.
(d) For tax years beginning on or
after January 1, 2014, and before January 1, 2015, the maximum allowed credit
shall be 15 percent of certified cost.
(e) For tax years beginning on or
after January 1, 2015, and before January 1, 2016, the maximum allowed credit
shall be 10 percent of certified cost.
(3) The total amount of the credit
allowable for an alternative fuel vehicle infrastructure project under this
section may not exceed 35 percent of the certified cost of the project.
(4) In order for a tax credit to be
allowable under this section:
(a) The project must be located in
Oregon.
(b) The project must have received
final certification from the Director of the State Department of Energy under
sections 56 to 65 of this 2011 Act.
(5) The tax credit allowed under this
section for any one tax 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 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, 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 (2) of this section only as provided in this subsection.
(7) The credit allowed under this
section is not in lieu of any depreciation or amortization deduction for the
transportation project to which the taxpayer otherwise may be entitled for
purposes of ORS chapter 316, 317 or 318 for such year.
(8) The taxpayer’s adjusted basis for
determining gain or loss may not be decreased by any tax credits allowed under
this section.
(9) The definitions in section 56 of
this 2011 Act apply to this section.
SECTION 54. (1) A taxpayer may not
be allowed a credit for a transportation project, other than an alternative
fuel vehicle infrastructure project, certified under section 60 of this 2011
Act if the first tax year for which the credit would otherwise be allowed
begins on or after January 1, 2016.
(2) A taxpayer may not be allowed a
credit for an alternative fuel vehicle infrastructure project certified under
section 60 of this 2011 Act if the first tax year for which the credit would
otherwise be allowed begins on or after January 1, 2018.
SECTION 55. Sections 56 to 65 of
this 2011 Act are added to and made a part of ORS chapter 469.
SECTION 56. As used in sections 53
and 56 to 65 of this 2011 Act:
(1) “Alternative fuel vehicle
infrastructure project” includes a facility for mixing, storing, compressing or
dispensing fuels for alternative fuel vehicles, and any other necessary and
reasonable equipment.
(2) “Cost” includes capital
expenditures and core expenses such as vehicle repair, fuel, personnel and
administrative expenses.
(3) “Transportation project” means a
public or nonprofit entity that provides transit services to members of the
public and that receives state or federal funding for those services, or an
alternative fuel vehicle infrastructure project.
SECTION 57. (1) The owner of a
transportation project may transfer a tax credit for the project in exchange
for a cash payment equal to the present value of the tax credit.
(2) The State Department of Energy
shall establish by rule a formula to be employed in the determination of prices
of credits transferred under this section. In establishing the formula the
department shall incorporate inflation projections and market real rate of
return.
(3) The department shall recalculate
credit transfer prices quarterly, employing the formula established under
subsection (2) of this section.
SECTION 58. (1) Prior to the
acquisition or performance of a transportation project, a person may apply to
the State Department of Energy for preliminary certification for the project
under section 59 of this 2011 Act if:
(a) The project complies with the
standards adopted by the Director of the State Department of Energy; and
(b) The applicant will be the owner,
contract purchaser or lessee of the project at the time of acquisition or
performance of the project.
(2) An application for preliminary
certification shall be made in writing on a form prepared by the department and
shall contain:
(a) A statement that the applicant
plans to acquire or perform a project that substantially reduces the
consumption of purchased energy.
(b) A detailed description of the
project and its operation and information showing that the project will operate
as represented in the application and remain in operation for at least five
years, unless the director by rule specifies another period of operation.
(c) Information on the amount by which
consumption of purchased energy by the applicant will be reduced, and, if
applicable, information about the expected level of project performance.
(d) The anticipated total project
cost.
(e) Information on the number and
types of jobs that will be created by the project, the number of jobs sustained
throughout the acquisition and performance of the project.
(f) Information demonstrating that the
project will comply with applicable state and local laws and regulations and
obtain required licenses and permits.
(g) Any other information the director
considers necessary to determine whether the project is in accordance with the
provisions of sections 56 to 65 of this 2011 Act, and any applicable rules or
standards adopted by the director.
(3) An application for preliminary
certification shall be accompanied by a fee established under section 61 of
this 2011 Act. The director may refund all or a portion of the fee if the
application for certification is rejected.
(4) The director may allow an
applicant to file the application for preliminary certification after the start
of acquisition or performance of the project if the director finds that:
(a) Filing the application before the
start of acquisition or performance is inappropriate because special
circumstances render filing earlier unreasonable; and
(b) The project would otherwise
qualify for certification under sections 56 to 65 of this 2011 Act.
(5) Except as provided in subsection
(6) of this section, a preliminary certification shall remain valid for a
period of three calendar years after the date on which the preliminary
certification is issued by the director, after which the certification becomes
invalid even if:
(a) The applicant is awaiting
identification of a pass-through partner; or
(b) The preliminary certification has
been amended.
(6) Any preliminary certification for
a facility consistent with a transportation project, under ORS 469.210, that
remains outstanding as of July 1, 2011, shall expire on July 1, 2014.
SECTION 59. (1) The Director of
the State Department of Energy may require an applicant for certification of a
transportation project to submit plans, specifications and contract terms, and
after examination of the plans, specifications and terms may request
corrections and revisions.
(2) If the director determines that
the project is technically feasible and should operate in accordance with the
representations made by the applicant, and is in accordance with the provisions
of sections 56 to 65 of this 2011 Act and any applicable rules or standards
adopted by the director, the director may issue a preliminary certificate
approving the acquisition or performance of the project. The certificate shall
indicate the potential amount of tax credit allowable and shall list any
conditions for claiming the credit.
(3) In accordance with ORS chapter
183, the director may issue an order altering, conditioning, suspending or
denying preliminary certification if the director determines that:
(a) The project does not comply with
the provisions of sections 56 to 65 of this 2011 Act and applicable rules and
standards;
(b) The applicant has previously
received preliminary or final certification for the project;
(c) The applicant was directly
involved in an act for which the director has levied civil penalties or
revoked, canceled or suspended any certification under ORS 469.185 to 469.225
or sections 56 to 65 of this 2011 Act; or
(d) The applicant or the principal,
director, officer, owner, majority shareholder or member of the applicant, or
the manager of the applicant if the applicant is a limited liability company,
is in arrears for payments owed to any government agency while in any capacity
with direct or indirect control over a business.
SECTION 60. (1) A final
certification for a transportation project may not be issued by the Director of
the State Department of Energy under this section unless:
(a) The project was acquired or
performed under a preliminary certificate of approval issued under section 59 of
this 2011 Act;
(b) The applicant demonstrates the
ability to provide the information required by section 58 (2) of this 2011 Act
and does not violate any condition that may be imposed as described in
subsection (4) of this section; and
(c) The project was acquired or
performed in accordance with the applicable provisions of sections 56 to 65 of
this 2011 Act and any applicable rules or standards adopted by the director.
(2) A person may apply to the State
Department of Energy for final certification of a project:
(a) If the person received preliminary
certification for the project under section 59 of this 2011 Act; and
(b) After completion of the
acquisition or performance of the project.
(3) An application for final
certification shall be made in writing on a form prepared by the department and
shall contain:
(a) A statement that the conditions of
the preliminary certification have been complied with;
(b) The actual cost of the project
attested to by a certified public accountant who is not an employee of the
applicant or, if the actual cost of the project is less than $50,000, copies of
receipts for acquisition and performance of the project;
(c) The amount of the credit under
section 53 of this 2011 Act that is to be claimed;
(d) The number and types of jobs
created by the acquisition and performance of the project over the five-year
period beginning on the date of issuance of the preliminary certification under
section 59 of this 2011 Act;
(e) Information sufficient to
demonstrate that the project will remain in operation for at least five years,
unless the director by rule specifies another period of operation;
(f) Documentation of compliance with
applicable state and local laws and regulations and licensing and permitting
requirements as defined by the director; and
(g) Any other information determined
by the director to be necessary prior to issuance of a final certificate,
including inspection of the project by the department.
(4) After the filing of the
application under this section, the director may issue the certificate together
with any conditions that the director determines are appropriate to promote the
purposes of sections 53 and 56 to 65 of this 2011 Act. If the applicant is an
entity subject to regulation by the Public Utility Commission, the director may
consult with the commission prior to issuance of the certificate. The action of
the director shall include certification of the actual cost of the project.
However, the director may not certify an amount for tax credit purposes that is
more than the amount of credit approved in the preliminary certificate issued
for the project.
(5) If the director rejects an
application for final certification, or certifies a lesser amount of credit
than was claimed in the application, the director shall send to the applicant
written notice of the action, together with a statement of the findings and
reasons for the action, by certified mail, before the 60th day after the filing
of the application. Failure of the director to act constitutes rejection of the
application.
(6) Upon approval of an application
for final certification of a project, the director shall certify the project.
The final certification shall indicate the amount of projected energy savings
attributable to the project and the certified cost of the project.
(7) The director may establish by rule
timelines and intermediate deadlines for submission of application materials.
SECTION 61. By rule and after
hearing, the Director of the State Department of Energy may adopt a schedule of
reasonable fees that the State Department of Energy may require of applicants
for preliminary or final certification of a transportation project under
sections 56 to 65 of this 2011 Act. Before the adoption or revision of the
fees, the department shall estimate the total cost of the program to the
department. The fees shall be used to recover the anticipated cost of
administering and enforcing the provisions of sections 56 to 65 of this 2011
Act, including filing, investigating, granting and rejecting applications for
certification and ensuring compliance with sections 56 to 65 of this 2011 Act
and shall be designed not to exceed the total cost estimated by the department.
Any excess fees shall be held by the department and shall be used by the
department to reduce any future fee increases. The fee may vary according to
the size and complexity of the project. The fee is not considered part of the
cost of the project to be certified.
SECTION 62. (1) A certificate
issued under section 60 of this 2011 Act is required for purposes of obtaining
tax credits in accordance with section 53 of this 2011 Act. Such certification
shall be granted for a period not to exceed five years. The five-year period
shall begin with the tax year of the applicant during which the completed
application for final certification of the transportation project under section
60 of this 2011 Act is received by the State Department of Energy.
(2) If the original owner of the
certificate uses any portion of the credit, the certificate becomes
nontransferable.
(3) For a transferee holding a credit
that has been transferred under section 57 of this 2011 Act, the five-year
period shall begin with the tax year in which the transferee pays for the
credit.
SECTION 63. (1) Under the
procedures for a contested case under ORS chapter 183, the Director of the
State Department of Energy may order the revocation of a certificate issued
under section 60 of this 2011 Act if the director finds that:
(a) The certification was obtained by
fraud or misrepresentation;
(b) The holder of the certificate or
the operator of the transportation project has failed to acquire or perform the
project in compliance with the plans, specifications and contract terms in the
certificate; or
(c) The project is no longer in
operation.
(2) As soon as an order of revocation
under this section becomes final, the director shall notify the Department of
Revenue and the project owner, contract purchaser or lessee of the order of
revocation. Upon notification, the Department of Revenue immediately shall
proceed to collect those taxes not paid by the certificate holder as a result
of the tax credits provided to the certificate holder under section 53 of this
2011 Act, from the certificate holder or a successor in interest to the business
interests of the certificate holder. All prior tax credits provided to the
holder of the certificate by virtue of the certificate shall be forfeited.
(3)(a) The Department of Revenue shall
have the benefit of all laws of this state pertaining to the collection of
income and excise taxes and may proceed to collect the amounts described in
subsection (2) of this section from the person that obtained certification from
the State Department of Energy, or any successor in interest to the business
interests of that person. An assessment of tax is not necessary and a statute
of limitation does not preclude the collection of taxes described in subsection
(2) of this section.
(b) For purposes of this subsection, a
lender, bankruptcy trustee or other person that acquires an interest through
bankruptcy or through foreclosure of a security interest is not considered to
be a successor in interest to the business interests of the person that
obtained certification.
(4) If the certificate is ordered
revoked pursuant to subsection (1)(b) of this section, the certificate holder
shall be denied any further relief under section 53 of this 2011 Act in
connection with the project from and after the date that the order of
revocation becomes final.
(5) Notwithstanding subsections (1) to
(4) of this section, a certificate or portion of a certificate held by a
transferee under section 57 of this 2011 Act may not be considered revoked for
purposes of the transferee, the tax credit allowable to the transferee under
section 57 of this 2011 Act may not be reduced, and a transferee is not liable
under subsections (2) to (4) of this section.
SECTION 64. The total amount of
potential tax credits for all transportation projects in this state may not, at
the time of preliminary certification under section 59 of this 2011 Act, exceed
$20 million for any biennium.
SECTION 65. The State Department
of Energy shall by rule establish policies and procedures for the
administration and enforcement of the provisions of sections 53 and 56 to 65 of
this 2011 Act, including standards for what constitutes a single transportation
project.
SECTION 66. Sections 53 and 56 to
65 of this 2011 Act apply to applications for preliminary certification
submitted under section 58 of this 2011 Act after July 1, 2011, and to tax
years beginning on or after January 1, 2011.
TAX CREDIT FOR
RESIDENTIAL ENERGY DEVICES
SECTION 67. Section 5a, chapter 832,
Oregon Laws 2005, as amended by section 35, chapter 843, Oregon Laws 2007, and
section 12, chapter 913, Oregon Laws 2009, is amended to read:
Sec. 5a. (1) A taxpayer
may not be allowed a credit under ORS 316.116 if the first tax year for which
the credit would otherwise be allowed with respect to an alternative energy
device [or alternative fuel vehicle or related
equipment is] begins on or after January 1, [2012] 2018.
(2) A taxpayer may not be allowed a
credit under ORS 316.116 if the first tax year for which the credit would
otherwise be allowed with respect to an alternative fuel vehicle or related
equipment begins on or after January 1, 2012.
SECTION 68. Section 8a, chapter 832,
Oregon Laws 2005, as amended by section 13, chapter 913, Oregon Laws 2009, is
amended to read:
Sec. 8a. (1) The State
Department of Energy may not issue a contractor’s certification certificate[,] or an alternative energy
device system certificate [or alternative
fuel vehicle or related equipment certificate] under ORS 469.170 after
January 1, [2012] 2018.
(2) The State Department of Energy
may not issue an alternative fuel vehicle or related equipment certificate
under ORS 469.170 for a tax year beginning on or after January 1, 2012.
SECTION 69. ORS 316.116 is amended to
read:
316.116. (1)(a) A resident individual
shall be allowed a credit against the taxes otherwise due under this chapter
for costs paid or incurred for construction or installation of each of one or
more alternative energy devices in a dwelling.
(b) A resident individual shall be
allowed a credit against the taxes otherwise due under this chapter for costs paid
or incurred to modify or purchase an alternative fuel vehicle or related
equipment.
(c) A credit against the taxes
otherwise due under this chapter is not allowed for an alternative energy
device that does not meet or exceed all applicable federal, state and local
requirements for energy efficiency, including equipment codes, the state
building code, specialty codes and any other standards.
(2)(a) In the case of a category one
alternative energy device that is not an alternative fuel device, the credit
shall be based upon the first year energy yield of the alternative energy
device that qualifies under ORS 469.160 to 469.180. The amount of the credit
shall be the same whether for collective or noncollective investment.
(b) The credit allowed under this
section for each category one alternative energy device for each dwelling may
not exceed the lesser of[:]
[(A)
$1,500 or the first year energy yield in kilowatt hours per year multiplied by
60 cents per dwelling utilizing the alternative energy device used for space
heating, cooling, electrical energy or domestic water heating for tax years
beginning on or after January 1, 1990, and before January 1, 1996.]
[(B)
$1,200 or the first year energy yield in kilowatt hours per year multiplied by
48 cents per dwelling utilizing the alternative energy device used for space
heating, cooling, electrical energy or domestic water heating for tax years
beginning on or after January 1, 1996, and before January 1, 1998.]
[(C)]
$1,500 or the first year energy yield in kilowatt hours per year multiplied by
60 cents per dwelling utilizing the alternative energy device used for space
heating, cooling, electrical energy or domestic water heating for tax years
beginning on or after January 1, 1998.
(c) For each category one alternative
energy device used for swimming pool, spa or hot tub heating, the credit
allowed under this section shall be based upon 50 percent of the cost of the
device or the first year’s energy yield in kilowatt hours per year multiplied
by 15 cents, whichever is lower, up to[:]
[(A)
$1,500 for tax years beginning on or after January 1, 1990, and before January
1, 1996.]
[(B)
$1,200 for tax years beginning on or after January 1, 1996, and before January
1, 1998.]
[(C)]
$1,500 for tax years beginning on or after January 1, 1998.
(d) For each alternative fuel device,
the credit allowed under this section is 25 percent of the cost of the
alternative fuel device but the total credit shall not exceed $750 if the
device is placed in service on or after January 1, 1998.
(e)(A) For each category two
alternative energy device that is a solar electric system or fuel cell system,
the credit allowed under this section [shall
equal] may not exceed the lesser of $3 per watt of installed output
or $6,000[, but the installed output
that is used to determine the amount of credit under this paragraph may not
exceed 2,000 watts]. The State Department of Energy may by rule provide
for a lesser amount of incentive as market conditions warrant, taking into
consideration factors including the availability of bulk purchasing of
alternative energy devices.
(B) For each category two alternative
energy device that is a wind electric system, the credit allowed under this
section may not exceed the lesser of $6,000 or the first year energy yield in
kilowatt hours per year multiplied by $2.
(C) Notwithstanding subparagraph (A)
or (B) of this paragraph, the total amount of the credits allowed in any one
tax year may not exceed the tax liability of the taxpayer or $1,500 for each alternative
energy device, whichever is less. Unused credit amounts may be carried forward
as provided in subsection [(7)] (6)
of this section, but may not be carried forward to a tax year that is more than
five tax years following the first tax year for which any credit was allowed
with respect to the category two alternative energy device that is the basis
for the credit.
(D) Notwithstanding subparagraph (A)
or (B) of this paragraph, the total amount of the credit for each device
allowed under this paragraph may not exceed 50 percent of the total installed
cost of the category two alternative energy device.
[(3)(a)
In the case of a credit for a category one alternative energy device that is an
energy efficient appliance, the credit allowed for each appliance to a resident
individual under this section shall equal:]
[(A)
48 cents per first year kilowatt hour saved, or the equivalent for other fuel
saved, not to exceed $1,200 for each tax year beginning on or after January 1,
1998, and before January 1, 1999; and]
[(B)
40 cents per kilowatt hour saved, or the equivalent for other fuel saved, not
to exceed $1,000 for each tax year beginning on or after January 1, 1999.]
[(b)
Notwithstanding paragraph (a) of this subsection, the credit allowed for an
energy efficient appliance may not exceed 25 percent of the cost of the
appliance.]
[(4)]
(3) To qualify for a credit under this section, all of the following are
required:
(a) The alternative energy device must
be purchased, constructed, installed and operated in accordance with ORS
469.160 to 469.180 and a certificate issued thereunder.
(b) [Except for credits claimed for alternative fuel devices,] The
taxpayer who is allowed the credit must be the owner or contract purchaser of
the dwelling or dwellings served by the alternative energy device or the tenant
of the owner or of the contract purchaser and must:
(A) Use the dwelling or dwellings
served by the alternative energy device as a principal or secondary residence;
or
(B) Rent or lease, under a residential
rental agreement, the dwelling or dwellings to a tenant who uses the dwelling
or dwellings as a principal or secondary residence[, unless the basis for the credit is the installation of an energy
efficient appliance. If the basis for the credit is the installation of an
energy efficient appliance, the credit shall be allowed only to the taxpayer
who actually occupies the dwelling as a principal or secondary residence].
(c) In the case of an alternative fuel
device, [if the device is a fueling
station necessary to operate an alternative fuel vehicle,] unless the
verification form and certificate are transferred as authorized under ORS
469.170 [(8)] (9), the
taxpayer who is allowed the credit must be the contractor who constructs the
dwelling that incorporates the [fueling
station] alternative fuel device into the dwelling or installs the
fueling station in the dwelling. [If the
category one alternative energy device is an alternative fuel vehicle, the
credit must be claimed by the owner as defined under ORS 801.375 or contract
purchaser. If the category one alternative energy device is related equipment
for an alternative fuel vehicle, the credit may be claimed by the owner or
contract purchaser.]
(d) The credit must be claimed for the
tax year in which the alternative energy device was purchased if the device is
operational by April 1 of the next following tax year.
(e) If the alternative fuel vehicle is
a gasoline-electric hybrid vehicle not designed for electric plug-in charging,
it must be purchased before January 1, 2010.
[(5)]
(4) The credit provided by this section does not affect the computation
of basis under this chapter.
[(6)]
(5) The total credits allowed under this section in any one year may not
exceed the tax liability of the taxpayer.
[(7)]
(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.
[(8)]
(7) A nonresident shall be allowed the credit under this section in the
proportion provided in ORS 316.117.
[(9)]
(8) 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.
[(10)]
(9) 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)]
(10) 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. However, a husband or wife
living in a separate principal residence may claim the tax credit in the same
amount as permitted a single person.
[(12)]
(11) As used in this section, unless the context requires otherwise:
(a) “Collective investment” means an
investment by two or more taxpayers for the acquisition, construction and
installation of an alternative energy device for one or more dwellings.
(b) “Noncollective investment” means
an investment by an individual taxpayer for the acquisition, construction and
installation of an alternative energy device for one or more dwellings.
(c) “Taxpayer” includes a transferee
of a verification form under ORS 469.170 [(8)]
(9).
[(13)]
(12) Notwithstanding any provision of subsection (1) or (2) of this
section, the sum of the credit allowed under subsection (1) of this section
plus any similar credit allowed for federal income tax purposes may not exceed
the cost to the taxpayer for the acquisition, construction and installation of
the alternative energy device.
SECTION 70. ORS 469.160 is amended to
read:
469.160. As used in ORS 316.116,
317.115 and 469.160 to 469.180:
(1) “Alternative energy device” means
a category one alternative energy device or a category two alternative energy
device.
(2) “Alternative fuel device” [means any of the following:]
[(a)
An alternative fuel vehicle;]
[(b)
Related equipment; or]
[(c)
A fueling station necessary to operate an alternative fuel vehicle.]
includes a facility for mixing, storing, compressing or dispensing fuels for
alternative fuel vehicles, and any other necessary and reasonable equipment.
(3) “Alternative fuel vehicle” means a
motor vehicle as defined in ORS 801.360 that is:
(a) Registered in this state; and
(b) Manufactured or modified to use an
alternative fuel, including but not limited to electricity, natural gas,
ethanol, methanol, propane and any other fuel approved in rules adopted by the
Director of the State Department of Energy that produces less exhaust emissions
than vehicles fueled by gasoline or diesel. Determination that a vehicle is an
alternative fuel vehicle shall be made without regard to energy consumption
savings.
(4) “Category one alternative energy
device” means:
(a) Any system, mechanism or series of
mechanisms that uses solar radiation for space heating or cooling for one or
more dwellings;
(b) Any system that uses solar
radiation for:
(A) Domestic water heating; or
(B) Swimming pool, spa or hot tub heating
and that meets the requirements set forth in ORS 316.116;
(c) A ground water heat pump and
ground loop system;
(d) Any wind powered device used to
offset or supplement the use of electricity by performing a specific task such
as pumping water;
(e) Equipment used in the production
of alternative fuels;
(f) A generator powered by alternative
fuels and used to produce electricity;
(g) An energy efficient appliance;
(h) An alternative fuel device; or
(i) A premium efficiency biomass
combustion device that includes a dedicated outside combustion air source and
that meets minimum performance standards that are established by the State
Department of Energy.
(5) “Category two alternative energy
device” means a fuel cell system, solar electric system or wind electric
system.
(6) “Coefficient of performance” means
the ratio calculated by dividing the usable output energy by the electrical
input energy. Both energy values must be expressed in equivalent units.
(7) “Contractor” means a person whose
trade or business consists of offering for sale an alternative energy device,
construction service, installation service or design service.
(8)(a) “Cost” means the actual cost of
the acquisition, construction and installation of the alternative energy device
[paid by the taxpayer for the alternative
energy device].
(b) For an alternative fuel vehicle, “cost”
means the difference between the cost of the alternative fuel vehicle and the
same vehicle or functionally similar vehicle manufactured to use conventional gasoline
or diesel fuel or, in the case of modification of an existing vehicle, the cost
of the modification. “Cost” does not include any amounts paid for
remodification of the same vehicle.
(c) For a fueling station necessary to
operate an alternative fuel vehicle, “cost” means the cost to the contractor of
constructing or installing the fueling station in a dwelling and of making the
fuel station operational in accordance with the specifications issued under ORS
469.160 to 469.180 and any rules adopted by the Director of the State
Department of Energy.
(d) For related equipment, “cost”
means the cost of the related equipment and any modifications or additions to
the related equipment necessary to prepare the related equipment for use in
converting a vehicle to alternative fuel use.
(9) “Domestic water heating” means the
heating of water used in a dwelling for bathing, clothes washing, dishwashing
and other related functions.
(10) “Dwelling” means real or personal
property ordinarily inhabited as a principal or secondary residence and located
within this state. “Dwelling” includes, but is not limited to, an individual
unit within multiple unit residential housing.
(11) “Energy efficient appliance” [means a clothes washer, clothes dryer, water
heater, refrigerator, freezer, dishwasher, appliance designed to heat or cool a
dwelling or other major household appliance that has been certified by the
State Department of Energy to have premium energy efficiency characteristics.]
includes emerging technologies, such as high-efficiency heat-pump water heaters
for domestic hot water that meet the Northern Tier Specification established by
the Northwest Energy Efficiency Alliance for electricity or have 0.67 or
greater energy factor for gas water heaters, ductless heat pumps,
high-efficiency furnaces that are at least 95 percent efficient, on-demand gas
water heaters and heat-pumps, that exceed code.
(12) “First year energy yield” of an
alternative energy device is the usable energy produced under average
environmental conditions in one year.
(13) “Fuel cell system” means any
system, mechanism or series of mechanisms that uses fuel cells or fuel cell
technology to generate electrical energy for a dwelling.
(14) “Fueling station” includes but is
not limited to a compressed natural gas compressor fueling system or an
electric charging system for vehicle power battery charging.
(15) “Placed in service” means[:]
[(a)]
the date an alternative energy device is ready and available to produce usable
energy or save energy.
[(b)
For an alternative fuel vehicle:]
[(A)
In the case of purchase, the date that the alternative fuel vehicle is first
purchased as an alternative fuel vehicle ready and available for use.]
[(B)
In the case of modification, the date that the modification is completed and
the vehicle is ready and available for use as an alternative fuel vehicle.]
[(c)
For a fueling station necessary to operate an alternative fuel vehicle, the
date that the fueling station is first operational.]
[(d)
For related equipment, the date that the equipment is first operational.]
[(16)
“Related equipment” means equipment necessary to convert a vehicle to use an
alternative fuel.]
[(17)]
(16) “Solar electric system” means any system, mechanism or series of
mechanisms, including photovoltaic systems, that uses solar radiation to
generate electrical energy for a dwelling.
(17) “Third-party alternative
energy device installation” means an alternative energy device that is
installed in connection with residential property and owned by a person other
than the residential property owner in accordance with an agreement in effect
for at least 10 years between the residential property owner and the
alternative energy device owner. The agreement must cover maintenance and
either the use of or the power generated by the alternative energy device.
(18) “Wind electric system” means any
system, mechanism or series of mechanisms that uses wind to generate electrical
energy for a dwelling.
SECTION 70a. ORS 469.165 is amended
to read:
469.165. (1) For the purposes of
carrying out ORS 469.160 to 469.180, the State Department of Energy may adopt
rules prescribing minimum performance criteria for alternative energy devices
for dwellings. The department may, in prescribing criteria, rely on applicable
federal, state and local requirements for energy efficiency, including the
state building code and any specialty codes and any code adopted by the
Building Codes Division of the Department of Consumer and Business Services.
(2) The department shall take into
consideration evolving market conditions in prescribing minimum performance
criteria for alternative energy devices and in determining credit amounts,
consistent with ORS 316.116.
[(2)]
(3) The department, in adopting rules under this section for solar
heating and cooling systems, shall take into consideration applicable standards
of federal performance criteria prescribed pursuant to the provisions of [section 5506, title 42, United States Code (]
the Solar Heating and Cooling Demonstration Act of 1974[)], 42 U.S.C. 5506.
[(3)]
(4) The Director of the State Department of Energy shall adopt rules
governing the determination of eligibility, verification and certification of
an alternative fuel device for purposes of the tax credits granted under ORS
316.116 and 317.115, including but not limited to rules that further define an
alternative fuel vehicle, related equipment or fueling station necessary to
operate an alternative fuel vehicle, that govern the computation of costs
eligible for credit and that require equitable allocation of the tax credit
benefits between the lessor and the lessee of an alternative fuel vehicle as a
condition of tax credit eligibility.
SECTION 71. ORS 469.170 is amended to
read:
469.170. (1) Subject to the
limitations in section 75 of this 2011 Act, any person may claim a tax
credit under ORS 316.116 (or ORS 317.115, if the person is a corporation) if
the person:
(a) Meets the requirements of ORS
316.116 (or ORS 317.115, if applicable);
(b) Meets the requirements of ORS
469.160 to 469.180; and
(c) Pays, subject to subsection [(9)] (10) of this section, all or
a portion of the costs of an alternative energy device.
(2) A credit under ORS 317.115 may be
claimed only if the alternative energy device is a fueling station necessary to
operate an alternative fuel vehicle.
(3)(a) In order to be eligible for a
tax credit under ORS 316.116 or 317.115, a person claiming a tax credit for
construction or installation of an alternative energy device (including a
fueling station) shall have the device certified by the State Department of
Energy or constructed or installed by a contractor certified by the department
under subsection (5) of this section. This paragraph does not apply to an
alternative fuel vehicle or to related equipment.
(b) Certification of an alternative
fuel vehicle or related equipment shall be accomplished under rules that shall
be adopted by the Director of the State Department of Energy.
(4) Verification of the purchase,
construction or installation of an alternative energy device shall be made in
writing on a form provided by the Department of Revenue and, if applicable,
shall contain:
(a) The location of the alternative
energy device;
(b) A description of the type of
device;
(c) If the device was constructed or
installed by a contractor, evidence that the contractor has any license, bond,
insurance and permit required to sell and construct or install the alternative
energy device;
(d) If the device was constructed or
installed by a contractor, a statement signed by the contractor that the
applicant has received:
(A) A statement of the reasonably
expected energy savings of the device;
(B) A copy of consumer information
published by the State Department of Energy;
(C) An operating manual for the
alternative energy device; and
(D) A copy of the contractor’s
certification certificate or alternative energy device system certificate for
the alternative energy device, as appropriate;
(e) If the device was not constructed
or installed by a contractor, evidence that:
(A) The State Department of Energy has
issued an alternative energy device system certificate for the alternative
energy device; and
(B) The taxpayer has obtained all
building permits required for construction or installation of the device;
(f) A statement, signed by both the
taxpayer claiming the credit and the contractor if the device was constructed
or installed by a contractor, that the construction or installation meets all
the requirements of ORS 469.160 to 469.180 or, if the device is a fueling
station and the taxpayer is the contractor, a statement signed by the
contractor that the construction or installation meets all of the requirements
of ORS 469.160 to 469.180;
(g) The date the alternative energy
device was purchased;
(h) The date the alternative energy
device was placed in service; and
(i) Any other information that the
Director of the State Department of Energy or the Department of Revenue
determines is necessary.
(5)(a) When the State Department of
Energy finds that an alternative energy device can meet the standards adopted
under ORS 469.165, the Director of the State Department of Energy may issue a
contractor system certification to the person selling and constructing or
installing the alternative energy device.
(b) Any person who sells or installs
more than 12 alternative energy devices in one year shall apply for a
contractor system certification. An application for a contractor system
certification shall be made in writing on a form provided by the State
Department of Energy and shall contain:
(A) A statement that the contractor
has any license, bonding, insurance and permit that is required for the sale
and construction or installation of the alternative energy device;
(B) A specific description of the
alternative energy device, including, but not limited to, the material,
equipment and mechanism used in the device, operating procedure, sizing and
siting method and construction or installation procedure;
(C) The addresses of three
installations of the device that are available for inspection by the State
Department of Energy;
(D) The range of installed costs to
purchasers of the device;
(E) Any important construction,
installation or operating instructions; and
(F) Any other information that the
State Department of Energy determines is necessary.
(c) A new application for contractor
system approval shall be filed when there is a change in the information
supplied under paragraph (b) of this subsection.
(d) The State Department of Energy may
issue contractor system certificates to each contractor who on October 3, 1989,
has a valid dealer system certification, which shall authorize the sale and
installation of the same domestic water heating alternative energy devices
authorized by the dealer certification.
(e) If the State Department of Energy
finds that an alternative energy device can meet the standards adopted under
ORS 469.165, the Director of the State Department of Energy may issue an
alternative energy device system certificate to the taxpayer constructing or installing
or having an alternative energy device constructed or installed.
(f) An application for an alternative
energy device system certificate shall be made in writing on a form provided by
the State Department of Energy and shall contain:
(A) A specific description of the
alternative energy device, including, but not limited to, the material,
equipment and mechanism used in the device, operating procedure, sizing, siting
method and construction or installation procedure;
(B) The constructed or installed cost
of the device; and
(C) A statement that the taxpayer has
all permits required for construction or installation of the device.
(6) An applicant seeking a credit
for a third-party alternative energy device installation must obtain
certification from the State Department of Energy under subsection (5) of this
section prior to commencing installation of alternative energy devices. An
applicant may receive certifications for no more than 25 devices under this
subsection in one application.
[(6)]
(7) To claim the tax credit, the verification form described in
subsection (4) of this section shall be submitted with the taxpayer’s tax
return for the year the alternative energy device is placed in service or the
immediately succeeding tax year. A copy of the contractor’s certification
certificate, alternative energy device system certificate or alternative fuel
vehicle or related equipment certificate also shall be submitted.
[(7)]
(8) The verification form and contractor’s certificate, alternative
energy device system certificate or alternative fuel vehicle or related
equipment certificate described under this section shall be effective for
purposes of tax relief allowed under ORS 316.116 or 317.115.
[(8)]
(9) The verification form and contractor’s certificate described under
this section may be transferred to the first purchaser of a dwelling or, in the
case of construction or installation of a fueling station in an existing
dwelling, the current owner, who intends to use or is using the dwelling as a
principal or secondary residence.
[(9)]
(10) Any person that pays the present value of the tax credit for an
alternative energy device provided under ORS 316.116 or 317.115 and 469.160 to
469.180 to the person who constructs or installs the alternative energy device
shall be entitled to claim the credit in the manner and subject to rules
adopted by the Department of Revenue to carry out the purposes of this
subsection. The State Department of Energy may establish by rule uniform
discount rates to be used in calculating the present value of a tax credit
under this subsection.
SECTION 72. ORS 469.172 is amended to
read:
469.172. The following devices are not
eligible for the tax credit under ORS 316.116:
(1) Standard efficiency furnaces;
(2) Air conditioning systems;
(3) Boilers;
[(2)]
(4) Standard back-up heating systems;
[(3)]
(5) Woodstoves or wood furnaces, or any part of a heating system that
burns wood, unless the woodstove, furnace or system constitutes a premium
efficiency biomass combustion device described in ORS 469.160 (4)(i);
[(4)]
(6) Heat pump water heaters that are part of a geothermal heat pump
space heating system;
[(5)]
(7) Structures that cover or enclose a swimming pool;
[(6)]
(8) Swimming pools, hot tubs or spas used to store heat;
[(7)]
(9) Above ground, uninsulated swimming pools, hot tubs or spas;
[(8)]
(10) Photovoltaic systems installed on recreational vehicles;
[(9)]
(11) Conversion of an existing alternative energy device to another type
of alternative energy device;
[(10)]
(12) Repair or replacement of an existing alternative energy device;
[(11)]
(13) A category two alternative energy device, if the equipment or other
property that comprises the category two alternative energy device is the basis
for an allowed credit for a category one alternative energy device under ORS
316.116;
[(12)]
(14) A category one alternative energy device, if the equipment or other
property that comprises the category one alternative energy device is also the
basis for an allowed credit for a category two alternative energy device under
ORS 316.116; or
[(13)]
(15) Any other device identified by the State Department of Energy. The
department may adopt rules defining standards for eligible and ineligible
devices under this section.
SECTION 73. ORS 317.115 is amended to
read:
317.115. (1) A business tax credit is
allowed against the taxes otherwise due under this chapter based upon costs
paid or incurred for construction or installation in a dwelling of a fueling
station necessary to operate an alternative fuel vehicle. The credit is allowed
to the contractor who constructs the dwelling in which the fueling station is
incorporated or installs the fueling station in the dwelling but may be taken
by any person under the circumstances described in ORS 469.170 [(9)] (10) and the rules adopted
thereunder.
(2) The credit is 25 percent of the
cost of the fueling station but the total credit shall not exceed $750 if the
fueling station is placed in service on or after January 1, 1998.
(3) To qualify for a credit under this
section, all of the following are required:
(a) The fueling station must be
constructed, installed and operated in accordance with ORS 469.160 to 469.180
and a certificate issued thereunder.
(b) The contractor must present with
the claim for credit a verification form signed not only by the contractor but
by the owner, contract purchaser or tenant authorizing the contractor to claim
the credit and indicating that the owner, contract purchaser or tenant will not
claim a credit based upon the cost of the same fueling station under ORS
316.116 or this section.
(c) The credit must be claimed for the
tax year in which the fueling station that has been certified under ORS 469.160
to 469.180 first is placed in service or the immediately succeeding tax year.
(4) The credit allowed under this
section shall not affect the computation of basis for purposes of this chapter,
nor shall the credit affect the computation or be in lieu of any depreciation
deduction for the fueling station.
(5) The credit allowed under this
section in any one year shall not exceed the tax liability of the taxpayer for
that year.
(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 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.
(7) The certificate and verification
form described under ORS 469.170 may be transferred by the contractor to the
first purchaser of the dwelling that incorporates the fueling station if the
purchaser intends to use the dwelling as a principal or secondary residence or,
in the case of construction or installation of a fueling station in an existing
dwelling, the current owner, if the current owner intends to use, or uses, the
dwelling as a principal or secondary residence. A certificate and verification
form so transferred may be used by the purchaser to claim a credit under ORS
316.116.
SECTION 74. The amendments to ORS 316.116,
469.160, 469.165, 469.170 and 469.172 by sections 69 to 72 of this 2011 Act
apply to alternative energy devices certified by the State Department of Energy
on or after January 1, 2012, and to tax years beginning on or after January 1,
2012.
SECTION 75. The State Department
of Energy may not issue certifications for more than $10 million in potential
tax credits for third-party alternative energy device installations in any tax
year.
SECTION 76. The Public Utility
Commission shall report to the Legislative Assembly prior to February 15, 2012,
on the effectiveness of incentives provided by the Energy Trust of Oregon and
shall provide recommendations as to whether operation of these incentives could
replace, in whole or in part, the allowance of tax credits under ORS 316.116
and sections 23, 35 and 53 of this 2011 Act.
SECTION 77. (1) Sections 2a and
2b, chapter 625, Oregon Laws 2007, are repealed.
(2) Section 15, chapter 625, Oregon
Laws 2007, as amended by section 35, chapter 33, Oregon Laws 2009, is repealed.
CAPTIONS AND
EFFECTIVE DATE
SECTION 78. The unit captions used
in this 2011 Act are provided only for the convenience of the reader and do not
become part of the statutory law of this state or express any legislative
intent in the enactment of this 2011 Act.
SECTION 79. This 2011 Act takes
effect on the 91st day after the date on which the 2011 regular session of the
Seventy-sixth Legislative Assembly adjourns sine die.
Approved by
the Governor August 5, 2011
Filed in the
office of Secretary of State August 8, 2011
Effective date
September 29, 2011
__________