Chapter 315 — Personal and Corporate Income or Excise Tax Credits

 

2023 EDITION

 

 

INCOME OR EXCISE TAX CREDITS

 

REVENUE AND TAXATION

 

GENERAL PROVISIONS

 

315.004     Definitions; adoption of parts of Internal Revenue Code and application of federal laws and regulations; technical corrections

 

315.037     Tax expenditures applicable for limited time

 

315.044     Statement of purpose

 

315.047     List of tax credits with revenue impact in excess of projection

 

315.051     Report by Legislative Revenue Officer

 

315.052     Limitation on transfer or sale of credit

 

315.053     Restriction on types of transferees

 

315.054     Federal tax credits allowable only as specified

 

315.056     Conditions for transfer of tax credit

 

315.058     Agency to provide tax credit approval information to Department of Revenue

 

315.061     Suspension, revocation or forfeiture

 

315.063     Waiver of substantiation by Department of Revenue; rules

 

315.068     Claim of right income repayment adjustments

 

(Temporary provisions relating to personal income tax credit allowed based on payment of pass-through business alternative income tax are compiled as notes following 315.068)

 

AGRICULTURE; FISHERIES; FORESTRY

 

315.104     Reforestation; rules

 

315.106     Reforestation credit preliminary certificate; application; limitation calculation; rules; fee

 

315.108     Annual reforestation credit cost limitation

 

315.111     Legislative declarations regarding riparian land conservation

 

315.113     Voluntary removal of riparian land from farm production; rules

 

315.117     Legislative findings and declarations regarding on-farm processing

 

315.119     On-farm processing facilities

 

315.123     Minimum production and processing volume requirements; recordkeeping requirements

 

315.124     Small forestland owner using standard practice harvest restrictions; rules

 

315.126     Certification of eligibility from State Forestry Department; notice of operation; irrevocable deed restriction; department to maintain records

 

315.128     Calculation of credit amount

 

315.130     Revocation upon timber harvest or removal of harvest restriction; liability for tax; penalties

 

315.132     Credit allowed for current certifications following repeal or expiration

 

315.133     Overtime compensation paid to agricultural workers

 

315.135     Calculation of credit amount

 

315.136     Notice of acknowledgment in support of credit; application

 

315.137     Calendar year limitation on credits allowed all taxpayers

 

315.138     Screening devices, by-pass devices or fishways; rules

 

315.141     Biomass production or collection; fee; rules; documentation

 

315.144     Transfer of biomass credit; rules

 

315.154     Definitions for crop donation credit

 

315.156     Crop donation; forms

 

315.163     Definitions for ORS 315.163 to 315.169

 

315.164     Agriculture workforce housing projects; rules

 

315.167     Agriculture workforce housing credit application; procedure; rules

 

315.169     Agriculture workforce housing contributor credit; transfer of agriculture workforce housing owner or operator credit; continued eligibility; rules

 

315.171     Tax credit limit for biennium

 

315.174     Livestock killed by wolf

 

315.176     Bovine manure production or collection; rules

 

315.184     Annual limitation on total amount of tax credits; proportionate reduction

 

CHILDREN AND FAMILIES; POVERTY RELIEF

 

315.204     Dependent care assistance; rules

 

315.208     Dependent care facilities

 

315.213     Contributions to Office of Child Care

 

315.237     Employee and dependent scholarship program payments

 

315.262     Working family child care; rules

 

315.264     Working family household and dependent care expenses; rules

 

315.266     Earned income; use of individual taxpayer identification number in alternative; rules

 

315.271     Individual development accounts

 

315.272     Certain individual development account withdrawals

315.273     Qualifying child of taxpayer

 

315.276     Quarterly payments based on annual advance amount

 

315.278     Reconciliation of quarterly payment amounts

 

315.279     Commencement of quarterly payments

 

315.281     Definitions for credit allowed for sale of publicly supported housing

 

315.283     Sale of publicly supported housing

 

315.286     Reservation of credit; application to Housing and Community Services Department

 

315.288     Housing and Community Services Department to provide information to Department of Revenue; rules

 

315.291     Calendar year limitation on credits allowed all taxpayers

 

ENVIRONMENT AND ENERGY

 

315.304     Pollution control facilities

 

315.326     Renewable energy development contributions; auction of tax credits; certification; rules

 

315.329     Funding in lieu of tax credit certification

 

315.331     Energy conservation projects

 

315.336     Transportation projects

 

315.341     Renewable energy resource equipment manufacturing facilities

 

315.354     Energy conservation facilities

 

315.356     Other grants as offset to cost of energy conservation facility; changes in eligibility for participation in other programs

 

315.357     Time limit applicable to energy conservation tax credit

 

315.465     Biofuels and fuel blends

 

315.469     Biodiesel used in home heating

 

ECONOMIC DEVELOPMENT

 

315.506     New business facility in reservation enterprise zone or reservation partnership zone

 

315.507     Electronic commerce in designated enterprise zone

 

315.508     Recordkeeping requirements; disallowance of credit

 

315.514     Film production development contributions; auction of tax credits; rules

 

315.516     Funding in lieu of tax credit certification

 

315.517     Water transit vessels

 

315.518     Research conducted by semiconductor company

 

315.519     Refundability of tax credit

 

315.522     Certification; application to Oregon Business Development Department; fees; rules

 

(Temporary provisions relating to tax credits for semiconductor research are compiled as notes following ORS 315.522)

 

315.523     Employee training

 

OREGON LOW INCOME COMMUNITY JOBS INITIATIVE

 

315.526     Short title

 

315.529     Definitions

 

315.533     Qualified equity investments

 

315.536     Transferability of credit

 

SHORT LINE RAILROADS

 

315.591     Definitions

 

315.593     Short line railroad rehabilitation projects; rules

 

315.595     Preliminary certification; application; allocation priority; rules

 

315.597     Final certification; rules

 

315.599     Fees; appropriation for expenses

 

315.603     Tax credit limit for biennium

 

HEALTH

 

315.610     Long term care insurance

 

315.613     Credit available to persons providing rural medical care and affiliated with certain rural hospitals

 

315.616     Additional providers who may qualify for credit

 

315.619     Credit for medical staff at type C hospital

 

315.622     Rural emergency medical services providers

 

315.624     Medical care to residents of Oregon Veterans’ Home

 

315.628     Health care services under TRICARE contract

 

315.631     Certification of health care providers; reports

 

HIGHER EDUCATION

 

315.640     University venture development fund contributions

 

315.643     Opportunity Grant contributions; auction of tax credits; certification; rules

 

315.646     Funding in lieu of tax credit certification

 

315.650     Higher education savings account or ABLE account contributions

 

315.653     Forfeiture of prior tax relief; disallowed withdrawal or distribution

 

CULTURE

 

315.675     Trust for Cultural Development Account contributions

 

315.001 [Enacted as 1953 c.308 §1; repealed by 1965 c.26 §6]

 

      315.002 [Enacted as 1953 c.308 §2; repealed by 1965 c.26 §6]

 

      315.003 [Enacted as 1953 c.308 §3; repealed by 1965 c.26 §6]

 

GENERAL PROVISIONS

 

      315.004 Definitions; adoption of parts of Internal Revenue Code and application of federal laws and regulations; technical corrections. (1) Except when the context requires otherwise, the definitions contained in ORS chapters 314, 316, 317 and 318 are applicable in the construction, interpretation and application of the personal and corporate income and excise tax credits contained in this chapter.

      (2)(a) For purposes of the tax credits contained in this chapter, any term has the same meaning as when used in a comparable context in the laws of the United States relating to federal income taxes, unless a different meaning is clearly required or the term is specifically defined for purposes of construing, interpreting and applying the credit.

      (b) With respect to the tax credits contained in this chapter, any reference to the laws of the United States or to the Internal Revenue Code means the laws of the United States relating to income taxes or the Internal Revenue Code as they are amended on or before December 31, 2022, even when the amendments take effect or become operative after that date.

      (3) Insofar as is practicable in the administration of this chapter, the Department of Revenue shall apply and follow the administrative and judicial interpretations of the federal income tax law. When a provision of the federal income tax law is the subject of conflicting opinions by two or more federal courts, the department shall follow the rule observed by the United States Commissioner of Internal Revenue until the conflict is resolved. Nothing contained in this section limits the right or duty of the department to audit the return of any taxpayer or to determine any fact relating to the tax liability of any taxpayer.

      (4) When portions of the Internal Revenue Code incorporated by reference as provided in subsection (2) of this section refer to rules or regulations prescribed by the Secretary of the Treasury, then such rules or regulations shall be regarded as rules adopted by the department under and in accordance with the provisions of this chapter, whenever they are prescribed or amended.

      (5)(a) When portions of the Internal Revenue Code incorporated by reference as provided in subsection (2) of this section are later corrected by an Act or a Title within an Act of the United States Congress designated as an Act or Title making technical corrections, then notwithstanding the date that the Act or Title becomes law, those portions of the Internal Revenue Code, as so corrected, shall be the portions of the Internal Revenue Code incorporated by reference as provided in subsection (2) of this section and shall take effect, unless otherwise indicated by the Act or Title (in which case the provisions shall take effect as indicated in the Act or Title), as if originally included in the provisions of the Act being technically corrected. If, on account of this subsection, any adjustment is required to an Oregon return that would otherwise be prevented by operation of law or rule, the adjustment shall be made, notwithstanding any law or rule to the contrary, in the manner provided under ORS 314.135.

      (b) As used in this subsection, “Act or Title” includes any subtitle, division or other part of an Act or Title. [1993 c.730 §2; 1995 c.556 §34; 1997 c.839 §64; 1999 c.90 §7; 2001 c.660 §34; 2003 c.77 §11; 2005 c.832 §24; 2007 c.614 §11; 2008 c.45 §12; 2009 c.5 §22; 2009 c.909 §23; 2010 c.82 §23; 2011 c.7 §22; 2012 c.31 §21; 2013 c.377 §21; 2014 c.52 §23; 2015 c.442 §15; 2016 c.33 §18; 2017 c.527 §19; 2018 c.101 §19; 2019 c.319 §19; 2021 c.456 §20; 2022 c.83 §20; 2023 c.171 §20]

 

      315.005 [Repealed by 1965 c.26 §6]

 

      315.010 [Amended by 1953 c.325 §3; repealed by 1965 c.26 §6]

 

      315.015 [Repealed by 1965 c.26 §6]

 

      315.020 [Repealed by 1965 c.26 §6]

 

      315.025 [Repealed by 1965 c.26 §6]

 

      315.030 [Repealed by 1965 c.26 §6]

 

      315.035 [Repealed by 1965 c.26 §6]

 

      315.037 Tax expenditures applicable for limited time. (1) As used in this section, “tax expenditure” has the meaning given that term in ORS 291.201.

      (2) Any tax credit enacted by the Legislative Assembly on or after January 1, 2010, shall apply for a maximum of six tax years beginning with the initial tax year for which the credit is applicable, unless the Legislative Assembly expressly provides for another period of applicability.

      (3) Any tax expenditure enacted by the Legislative Assembly on or after January 1, 2014, shall apply for a maximum of six tax years beginning with the initial tax year for which the tax expenditure is applicable, unless the Legislative Assembly expressly provides for another period of applicability. [Formerly 315.050]

Note: 315.037 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 315 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      315.040 [Repealed by 1965 c.26 §6]

 

      315.044 Statement of purpose. For each proposed legislative measure that is submitted for filing and that creates a tax credit or provides for expanded allowance, in amount or duration, of tax credit, the chief sponsor or a proponent of the measure shall submit to a legislative committee related to revenue a statement of purpose. In the statement of purpose, the chief sponsor or proponent shall address at a minimum the items forming the basis of the report required under ORS 315.051. [2015 c.641 §2]

 

      315.045 [Repealed by 1965 c.26 §6]

 

      315.047 List of tax credits with revenue impact in excess of projection. (1) Prior to the beginning of each odd-numbered year regular session, the Legislative Revenue Officer shall prepare a list of all tax credits that have revenue impact, for the most recent tax year for which sufficient information exists to make a determination, that exceeds the revenue impact projected in the most recent revenue impact statement prepared under ORS 173.025 for the measure enacting or amending the tax credit provision. The Legislative Revenue Officer shall submit the list with the report required under ORS 315.051.

      (2) The Legislative Revenue Officer shall identify those credits under subsection (1) of this section:

      (a) For which the revenue impact exceeds the projected revenue impact by at least 10 percent; and

      (b) That may be claimed in tax years beginning on or after January 1 of the next even year.

      (3) During the odd-numbered year regular session, a legislative committee related to revenue shall consider all tax credits that are identified under subsection (2) of this section at a public hearing conducted by the committee. [2015 c.641 §3]

 

      Note: 315.047 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 315 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      315.050 [2009 c.913 §53; 2013 c.750 §45; renumbered 315.037 in 2015]

 

      315.051 Report by Legislative Revenue Officer. (1) Prior to the beginning of each odd-numbered year regular session, the Legislative Revenue Officer shall submit a report addressing each income or excise tax credit that is scheduled to expire during the next even-numbered year. The Legislative Revenue Officer shall submit the report to a committee of the Legislative Assembly related to revenue, and may include information related to other tax credits in the report at the direction of an interim committee related to revenue. In preparing the report, the Legislative Revenue Officer shall seek input from the Department of Revenue, the Legislative Fiscal Officer and state agencies involved in administering any given credit.

      (2) The report required in subsection (1) of this section shall set forth:

      (a) The stated public policy purpose, if any, of the credit.

      (b) The expected timeline for achieving the public policy purpose, if a timeline exists.

      (c) The best means of measuring achievement of the public policy purpose.

      (d) The taxpayers or other entities or individuals that directly benefit from allowance of the credit and whether the credit is intended to benefit particular targets.

      (e) The effectiveness of the credit in benefiting its targets and any evidence that demonstrates its impact on its targets.

      (f) The expected results if the credit is allowed to expire under current law and any potential results of making incremental changes in the value of the credit rather than allowing it to expire.

      (g) Background information on the effect of similar credits allowed in other states.

      (h) Information regarding whether use of a tax credit is an effective and efficient way to achieve the stated policy goal.

      (i) The administrative and compliance costs associated with the credit.

      (j) Analysis of whether a direct appropriation might achieve the stated public policy purpose of the credit more efficiently.

      (k) What other incentives, including state or local subsidies or federal tax expenditures or subsidies, are available in this state that have a similar policy purpose. [2013 c.676 §2]

 

      315.052 Limitation on transfer or sale of credit. An income tax credit that is allowed under this chapter or ORS chapter 316, 317 or 318 and that is transferable may be transferred or sold only once, unless expressly provided otherwise by statute. [2009 c.288 §3]

 

      315.053 Restriction on types of transferees. An income tax credit allowed under this chapter or ORS chapter 316 or 317 that is transferable 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. [2009 c.288 §2; 2011 c.83 §12; 2011 c.474 §33; 2011 c.730 §21; 2019 c.483 §5]

 

      315.054 Federal tax credits allowable only as specified. No credits applied directly to the income tax calculated for federal purposes pursuant to the Internal Revenue Code shall be applied in calculating the tax due under ORS chapter 314, 316, 317 or 318 except those prescribed in this chapter or ORS chapter 314, 316, 317 or 318. [1993 c.730 §4 (enacted in lieu of 316.107)]

 

      315.055 [Repealed by 1965 c.26 §6]

 

      315.056 Conditions for transfer of tax credit. (1) Transfer of any transferable tax credit that is allowed under this chapter or ORS chapter 316 or 317 and that is transferred on or after January 1, 2020, is conditioned upon compliance with this section and ORS 315.052 and 315.053.

      (2) The Department of Revenue may require that the person that has earned the credit and the taxpayer that intends to claim the credit jointly file a notice of tax credit transfer with the department on or before the earliest of the following dates:

      (a) A date 30 days after the transfer of the credit;

      (b) The date on which the transferee files a return; or

      (c) The due date, including extensions, of the transferee’s return.

      (3) The notice shall be given on a form prescribed by the department that contains:

      (a) The name and address of the transferor and of the transferee;

      (b) The taxpayer identification number of the transferor and of the transferee;

      (c) The dates on which the person earning the credit received certifications for the credit;

      (d) The amount of the credit that is certified, the amount that is being transferred and the amount that is being retained by the transferor; and

      (e) Any other information required by the department.

      (4)(a) If a tax credit must be claimed over multiple tax years, a transferor may separately transfer the entirety of that portion corresponding to each tax year to one or more transferees, subject to subsection (5) of this subsection.

      (b) Any amount of credit that would be allowed due only to a carryforward provision may not be transferred.

      (5) Any transfer of a tax credit or a portion of a tax credit must be completed no later than the earliest of the following dates in relation to the tax return on which it is claimed:

      (a) The original due date, including extensions, of the transferor’s return;

      (b) The date on which the transferor’s return is actually filed;

      (c) The original due date, including extensions, of the transferee’s return; or

      (d) The date on which the transferee’s return is actually filed.

      (6) Notwithstanding subsection (5) of this section, if the transferor is a tax-exempt entity, the transfer must be completed on or before a date one year after the close of the tax year for which the credit receives final certification. As used in this subsection “tax-exempt entity” means a government agency or an organization that is recognized as exempt under section 501(c)(3) of the Internal Revenue Code.

      (7) The transferee shall claim the credit in accordance with the credit provisions for the tax years in which the credit is allowed.

      (8) The department by rule may establish policies and procedures for the implementation of this section. [2019 c.483 §2]

 

      315.058 Agency to provide tax credit approval information to Department of Revenue. (1) For any tax credit that is allowed under this chapter or ORS chapter 316 or 317 and for which certification, determination of eligibility or other approval from an agency other than the Department of Revenue is required and was issued on or after January 1, 2019, the department may require that the other agency provide information about the certification, determination of eligibility or other approval, including the name and taxpayer identification number of the taxpayer or other person receiving approval, the date the approval was issued in its final form, the approved amount of credit and the first tax year for which the credit may be claimed.

      (2) Within two months after the close of the tax year in which the approval was issued, a taxpayer that is a pass-through entity that has received approval shall provide to the department, in the manner prescribed by the department, the name and taxpayer identification number of each owner receiving a distributive share of the credit and any other information required by the department pertaining to an owner receiving a distributive share. [2019 c.483 §3]

 

      315.060 [Repealed by 1965 c.26 §6]

 

      315.061 Suspension, revocation or forfeiture. (1) Under the procedures for a contested case under ORS chapter 183, the director of the agency responsible for certifying or otherwise determining eligibility or granting approval for a tax credit allowed under this chapter or ORS chapter 316 or 317 may order the suspension, revocation or forfeiture of the tax credit approval or of a portion thereof if the director finds that:

      (a) The approval was obtained by fraud or misrepresentation;

      (b) The approval was obtained by mistake or miscalculation; or

      (c) The taxpayer otherwise violates or has violated a condition or requirement for eligibility for the tax credit.

      (2) As soon as an order of revocation under this section becomes final, the director shall notify the Department of Revenue and the person that received the tax credit certification, or other approval, of the order of revocation. Upon notification, the Department of Revenue immediately shall proceed to collect:

      (a) If no portion of a credit has been transferred, those taxes not paid by the holder of the certificate or other approval as a result of the tax credits provided to the holder under the revoked approval, from the holder or a successor in interest to the business interests of the holder. All tax credits provided to the holder and attributable to the fraudulently or mistakenly obtained approval or portion of the approval shall be forfeited.

      (b) If all of a credit has been transferred, an amount equal to the amount of the tax credits allowable to the transferee under the revoked approval, from the transferor.

      (c) If a portion of a tax credit has been transferred, those taxes not paid by the transferor as a result of the tax credits provided to the transferor pursuant to the revoked approval, from the transferor or a successor in interest to the business interests of the transferor, and an amount equal to the amount of the tax credits allowable to the transferee pursuant to the revoked approval, from the transferor.

      (3)(a) The Department of Revenue shall have the benefit of all laws of the 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 approval or a successor in interest to the business interests of that person. An assessment of tax is not necessary and the collection of taxes described in this subsection is not precluded by any statute of limitations.

      (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 approval.

      (4) If the approval is ordered revoked pursuant to this section, the holder of the certificate or other approval shall be denied any further relief in connection with the credit 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 may not be considered revoked for purposes of the transferee, the tax credit allowable to the transferee may not be reduced and a transferee is not liable under this section.

      (6) Interest under this section shall accrue at the rate established in ORS 305.220 beginning the day after the due date of the return on which the credit may first be claimed.

      (7) The Department of Revenue may collect amounts owed under this section by a partnership from the partnership. [2019 c.483 §4]

 

      315.063 Waiver of substantiation by Department of Revenue; rules. The Department of Revenue, by rule, may waive partially, conditionally or absolutely requirements for proof or substantiation of claims for subtractions, exclusions, exemptions or credits allowable for purposes of taxes imposed upon or measured by net income. [1995 c.54 §2]

 

      315.065 [Repealed by 1965 c.26 §6]

 

      315.068 Claim of right income repayment adjustments. (1) A credit against the taxes otherwise due under ORS chapter 316 (or, if the taxpayer is a corporation, under ORS chapter 317 or 318) shall be allowed to a taxpayer for a claim of right income repayment adjustment.

      (2) The credit shall be allowed under this section only if the taxpayer’s federal tax liability is determined under section 1341(a) of the Internal Revenue Code.

      (3) The amount of the credit shall equal the difference between:

      (a) The taxpayer’s actual Oregon state tax liability for the tax year for which the claim of right income was included in gross income for federal tax purposes; and

      (b) The taxpayer’s Oregon state tax liability for that tax year, had the claim of right income not been included in gross income for federal tax purposes.

      (4) A credit under this section shall be allowed only for the tax year for which the taxpayer’s federal tax liability is determined under section 1341 of the Internal Revenue Code for federal tax purposes.

      (5) If the amount allowable as a credit under this section, when added to the sum of the amounts allowable as a payment of tax under ORS 314.505 to 314.525, 316.187 and 316.583, other payments of tax and other refundable credit amounts, exceeds the taxes imposed by ORS chapters 314, 315, 316, 317 and 318 (reduced by any nonrefundable credits allowed for the tax year), the excess shall be treated as an overpayment of tax and shall be refunded or applied in the same manner as other tax overpayments.

      (6) As used in this section, “claim of right income” means:

      (a) An item included in federal gross income for a prior tax year because it appeared that the taxpayer had an unrestricted right to the item; and

      (b) An item for which the taxpayer’s federal tax liability is adjusted under section 1341 of the Internal Revenue Code because the taxpayer did not have an unrestricted right to the item of gross income. [1999 c.1007 §2; 2001 c.660 §19]

 

(Temporary provisions relating to personal income tax credit allowed based on payment of pass-through business alternative income tax)

 

      Note: Sections 7, 8 and 10 to 13, chapter 589, Oregon Laws 2021, provide:

      Sec. 7. Section 8 of this 2021 Act is added to and made a part of ORS chapter 315. [2021 c.589 §7]

      Sec. 8. (1) If a pass-through entity, as defined in section 2 of this 2021 Act, elects to owe and pay the pass-through business alternative income tax determined under section 3 of this 2021 Act, a taxpayer that is a member of the pass-through entity shall be allowed a credit against the taxes that are otherwise due under ORS chapter 316. For each pass-through entity of which the taxpayer is a member, the credit allowed under this section shall equal the member’s pro rata share of the tax paid for the tax year under section 3 of this 2021 Act.

      (2) If the amount allowable as a credit under this section, when added to the sum of the amounts allowable as payment of tax under ORS 316.187 or 316.583, other tax prepayment amounts and other refundable credit amounts, exceeds the taxes imposed by ORS chapters 314 and 316 for the tax year after application of any nonrefundable credits allowable for purposes of ORS chapter 316 for the tax year, the amount of the excess shall be refunded to the taxpayer as provided in ORS 316.502. [2021 c.589 §8]

      Sec. 10. Sections 3 and 8, chapter 589, Oregon Laws 2021, apply to tax years beginning on or after January 1, 2022, and before January 1, 2026. [2021 c.589 §10; 2023 c.399 §1]

      Sec. 11. Sections 3 and 8 of this 2021 Act are repealed. [2021 c.589 §11]

      Sec. 12. The repeal of sections 3 and 8, chapter 589, Oregon Laws 2021, by section 11, chapter 589, Oregon Laws 2021, applies to any tax year that begins on or after January 1, 2022, and before January 1, 2026, and to which section 164(b)(6) of the Internal Revenue Code is not applicable. [2021 c.589 §12; 2023 c.399 §2]

      Sec. 13. The repeal of sections 3 and 8 of this 2021 Act by section 11 of this 2021 Act becomes operative on the date on which section 164(b)(6) of the Internal Revenue Code is repealed. [2021 c.589 §13]

 

      315.070 [Repealed by 1965 c.26 §6]

 

      315.075 [Repealed by 1965 c.26 §6]

 

      315.080 [Repealed by 1965 c.26 §6]

 

      315.085 [Repealed by 1965 c.26 §6]

 

      315.090 [Repealed by 1965 c.26 §6]

 

      315.095 [Repealed by 1965 c.26 §6]

 

AGRICULTURE; FISHERIES; FORESTRY

 

      315.104 Reforestation; rules. (1) A credit against the taxes otherwise due under ORS chapter 316 (or if the taxpayer is a corporation, under ORS chapter 317 or 318) shall be allowed in an amount equal to 50 percent of reforestation project costs actually paid or incurred to reforest underproductive Oregon forestlands. Such costs include, but are not limited to, any fees established by the State Forester under ORS 315.106 (4), site preparation, tree planting and other silviculture treatments considered necessary by the State Forester to establish commercial, hardwood or softwood stands on appropriate sites. Subject to subsection (5) of this section:

      (a) One-half of the credit shall be taken in the tax year for which the State Forester, after physical inspection of the forestland, issues a preliminary certificate under ORS 315.106 certifying that the land qualifies as underproductive Oregon forestland and that the reforestation project undertaken meets the requirements of this section and the specifications established by the State Forester and the costs appear to be reasonable; and

      (b) One-half of the credit shall be taken in the tax year for which the State Forester, after further physical inspection of the land and project, certifies that the new forest is established in accordance with the specifications of the State Forester.

      (2) No credit shall be allowed under either subsection (1)(a) or (b) of this section unless written certification containing the following statements accompanies the claim for the credit or is otherwise filed with the Department of Revenue:

      (a) A preliminary certificate issued by the State Forester under ORS 315.106 that the land and project meet the preliminary specifications established by the State Forester or that the new forest is established, whichever is applicable at the time.

      (b) A statement by the landowner or person in possession of the land that the land within the project area will be used for the primary purpose of growing and harvesting trees of an acceptable species.

      (c) A statement that the landowner or person in possession of the land is aware that maintenance practices, including release, may be needed to insure that a new forest is established and will remain established.

      (3) For purposes of this section, reforestation project costs shall not include:

      (a) Costs paid or incurred to reforest any forestland that has been commercially logged to the extent that reforestation is required under the Oregon Forest Practices Act, except costs paid or incurred to reforest forestland following a hardwood harvest, conducted for the purposes of converting underproductive forestlands, as determined by administrative rule.

      (b) That portion of costs or expenses paid through a federal or state cost share, financial assistance or other incentive program.

      (c) Those costs paid or incurred to grow Christmas trees, ornamental trees, shrubs or plants, or those costs paid or incurred to grow hardwood timber described under ORS 321.267 (3) or 321.824 (3).

      (d) Any costs paid or incurred to purchase or otherwise acquire the land.

      (e) The cost of purchase or other acquisition of tools and equipment with a useful life of more than one year.

      (4) To qualify for the credit:

      (a) The project must be completed to specifications approved by the State Forester.

      (b) The taxpayer’s portion of the project costs must be $500 or more.

      (c) The taxpayer must be a private individual, corporation, group, Indian tribe or other native group, association or other nonpublic legal entity owning, purchasing under recorded contract of sale or leasing at least five acres of Oregon commercial forestland.

      (d) Prior to December 31, 2012, the taxpayer must file with the State Forester a written request for preliminary certification under ORS 315.106.

      (5) Any tax credit otherwise allowable under this section which is not used by the taxpayer in a particular year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any credit remaining unused in such next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise, any credit not used in that second succeeding tax year may be carried forward and used in the third succeeding tax year, but may not be carried forward for any tax year thereafter. In all cases the taxpayer must be the person who made the investment into the project.

      (6) The credit provided by this section shall be in addition to and not in lieu of any depreciation or amortization deduction to which the taxpayer otherwise may be entitled with respect to the reforestation project and the credit shall not affect the computation of basis for the property.

      (7) In compliance with ORS chapter 183, the Department of Revenue and the State Forestry Department may adopt rules consistent with law for carrying out the provisions of this section.

      (8) As used in this section, “underproductive Oregon forestlands” means Oregon commercial forestlands not meeting the minimum stocking standards of the Oregon Forest Practices Act.

      (9) If, for any reason other than those specified in subsection (10) of this section, a new forest is not established by the last day of the second taxable year following the taxable year for which the preliminary certificate was issued, the State Forester shall so report to the Department of Revenue. The report filed under this subsection shall be the basis for the department to recover any credit granted under subsection (1)(a) of this section. If, however, the new forest is not established within the time required by this subsection on account of the reasons specified in subsection (10) of this section, any credit allowed under subsections (1)(a) and (5) of this section shall not be recovered but no further credit as provided under subsections (1)(b) and (5) of this section shall be allowed.

      (10) Subject to requalification under this section in the manner applicable for the original claim, including obtaining a new preliminary certificate, a taxpayer may claim an additional credit or credits for reestablishing a new planting in the event that the new forest is destroyed by a natural disaster or is not established for reasons beyond the control of the taxpayer, if the measures taken in completing the original or earlier project would normally have resulted in establishing the minimum number of trees per acre anticipated by the project.

      (11) Any owner affected by a determination, regarding the reforestation tax credit made by:

      (a) The State Forester, except for a denial of a request for a preliminary certificate due to the annual reforestation credit cost limitation calculated under ORS 315.108, may appeal that determination in the manner provided for in ORS 526.475 (1).

      (b) The Department of Revenue, may appeal that determination in the manner provided for in ORS 526.475 (2). [1993 c.730 §8 (enacted in lieu of 316.094, 317.102 and 318.110); 1995 c.746 §23; 2001 c.359 §1; 2003 c.454 §122; 2003 c.621 §97a; 2007 c.883 §1; 2009 c.913 §19]

 

      Note: Section 5, chapter 605, Oregon Laws 1987, provides:

      Sec. 5. No tax credit shall be allowed under ORS 315.104 based upon reforestation project costs if the preliminary certificate is not issued on or before December 31, 2011. [1987 c.605 §5; 1989 c.887 §4; 1995 c.746 §28; 2001 c.359 §3]

 

      Note: 315.104 is repealed January 2, 2028. See section 9, chapter 883, Oregon Laws 2007.

 

      315.105 [Repealed by 1965 c.26 §6]

 

      315.106 Reforestation credit preliminary certificate; application; limitation calculation; rules; fee. (1) A taxpayer claiming the credit provided under ORS 315.104 shall file a written request with the State Forester for a preliminary certificate. The request shall contain:

      (a) Information that is required by the State Forester by rule;

      (b) An estimate of the amount of the credit the taxpayer expects to claim under ORS 315.104 (1)(a); and

      (c) Payment of any fee required by the State Forester by rule adopted under subsection (4) of this section.

      (2) The State Forester shall consider requests for preliminary certificates in the chronological order in which the requests are filed with the State Forester. If the State Forester determines that the request complies with ORS 315.104 (1)(a), the State Forester shall issue the preliminary certificate to the taxpayer, to the extent the total amount of estimated claims for credit under ORS 315.104 (1)(a) for all preliminary certificates issued for the calendar year do not exceed the annual reforestation credit cost limitation calculated under ORS 315.108.

      (3) The State Forester may not issue a preliminary certificate to a taxpayer to the extent the estimated claim for credit under ORS 315.104 (1)(a) contained in the request for a preliminary certificate, when added to the total of estimated claims for credit under ORS 315.104 (1)(a) for all preliminary certificates issued by the State Forester for the calendar year, exceeds the annual reforestation credit cost limitation calculated under ORS 315.108.

      (4) The State Forester shall establish by rule a fee for filing a written request for a preliminary certificate under this section. The fee shall be adequate to recover the costs incurred by the State Forestry Department in administering the reforestation tax credit program established under this section and ORS 315.104 and 315.108.

      (5) Moneys collected from fees established by the State Forester under rules adopted under this section shall be deposited in the State Forestry Department Account to be used for the purposes of administering the reforestation tax credit program. [1995 c.746 §25; 2005 c.796 §3]

 

      Note: 315.106 is repealed January 2, 2028. See section 9, chapter 883, Oregon Laws 2007.

 

      315.108 Annual reforestation credit cost limitation. (1) On or before January 1, 1996, the State Forester shall determine an average annual amount of estimated reforestation project costs for which credit was claimed under ORS 315.104 (1)(a) during the period from July 1, 1992, to July 1, 1994.

      (2) The annual reforestation credit cost limitation shall be:

      (a) Equal to the average annual amount of estimated reforestation project costs determined under subsection (1) of this section for the calendar year beginning January 1, 1996.

      (b) Twice the average annual amount of estimated reforestation project costs determined under subsection (1) of this section for years beginning on or after January 1, 1997. [1995 c.746 §26]

 

      Note: 315.108 is repealed January 2, 2028. See section 9, chapter 883, Oregon Laws 2007.

 

      315.110 [Amended by 1953 c.665 §2; repealed by 1965 c.26 §6]

 

      315.111 Legislative declarations regarding riparian land conservation. The Legislative Assembly declares that the purpose of ORS 315.113 is to encourage taxpayers that have riparian land in farm production to voluntarily remove the riparian land from farm production and employ conservation practices applicable to the riparian land that minimize contributions to undesirable water quality, habitat degradation and stream bank erosion. [2001 c.912 §2]

 

      315.113 Voluntary removal of riparian land from farm production; rules. (1) As used in this section:

      (a) “Crop” means the total yearly production of an agricultural commodity, not including livestock, that is harvested from a specified area.

      (b) “Riparian land” means land in this state that:

      (A) Borders both a river, stream or other natural watercourse and land that is in farm production; and

      (B) Does not exceed a width of 35 feet between the land that is in farm production and the bank of the river, stream or other natural watercourse.

      (c) “Share-rent agreement” means an agreement in which the person who engages in farming operations and the person who owns the land where the farming operations are conducted share the crop grown on that land or the profits from that crop.

      (2) A taxpayer may claim a credit against the taxes otherwise due under ORS chapter 316, 317 or 318 for 75 percent of the market value of crops forgone when riparian land is voluntarily taken out of farm production.

      (3) A credit under this section may be claimed only if:

      (a) The taxpayer owns the riparian land that is the basis of the credit;

      (b) The taxpayer is actively engaged in farming operations on land adjacent to the riparian land;

      (c) The riparian land was in farm production for the previous tax year or a credit under this section was claimed during the previous tax year;

      (d) The conservation practices employed on the riparian land are consistent with the agricultural water quality management plan administered by the State Department of Agriculture in the applicable river basin management area; and

      (e) The decision to remove the riparian land from farm production was a voluntary decision and not the result of a federal, state or local law or government decision requiring the riparian land to be taken out of farm production. For purposes of this paragraph, action taken by a taxpayer under an agricultural water quality management plan administered by the State Department of Agriculture is not the result of a government decision requiring the land to be taken out of farm production.

      (4)(a) The amount of the credit shall be calculated by multiplying the market value per acre of the forgone crop by the acreage of the riparian land that is not in farm production and multiplying that product by 75 percent.

      (b) For the first tax year for which a credit is claimed under this section, the forgone crop for which a value is determined under this section shall be the crop grown on the land in the previous tax year.

      (c) For a tax year following the first tax year for which a credit is claimed under this section, the forgone crop for which a value is determined under this section shall be the crop for which the value was determined for the previous tax year.

      (d) If a taxpayer does not claim a credit under this section for a tax year, any credit claimed in a subsequent tax year shall be treated as the first tax year for which a credit is claimed under this section.

      (5) Notwithstanding subsection (3)(a) and (b) of this section, if the riparian land that is the basis of a credit under this section is adjacent to land that is in farm production under a share-rent agreement, the taxpayer that is engaged in farming operations and the taxpayer that is the landowner may each claim a credit under this section. The amount of the credit shall be allocated to each taxpayer in the proportion that the share-rent agreement allocates crop proceeds to each of those taxpayers. The total amount of credit allowed to both taxpayers under this subsection may not exceed the amount of the credit otherwise allowable under this section if the farming operations were not subject to a share-rent agreement.

      (6) Notwithstanding subsections (3)(a) and (5) of this section, if the taxpayer is actively engaged in farming operations and pays the landowner in cash, the taxpayer may claim all of the credit available under this section.

      (7) The credit allowed in any one tax year may not exceed the tax liability of the taxpayer.

      (8) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a particular tax year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any credit remaining unused in the next succeeding tax year may be carried forward and used in the second succeeding tax year. Any credit remaining unused in the second succeeding tax year may be carried forward and used in the third succeeding tax year. Any credit remaining unused in the third succeeding tax year may be carried forward and used in the fourth succeeding tax year. Any credit remaining unused in the fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, but may not be used in any tax year thereafter.

      (9) In the case of a credit allowed under this section for purposes of ORS chapter 316:

      (a) A nonresident shall be allowed the credit in the same manner and subject to the same limitations as a resident. However, the credit shall be prorated using the proportion provided in ORS 316.117.

      (b) If a change in the taxable year of a taxpayer occurs as described in ORS 314.085 or if the Department of Revenue terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed by this section shall be prorated or computed in a manner consistent with ORS 314.085.

      (c) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117.

      (10) If a taxpayer that has claimed a credit under this section places the riparian land for which the credit is claimed back in farm production, the taxpayer may not claim a credit under this section for five tax years following the year the riparian land was placed back in farm production.

      (11) The Department of Revenue may adopt rules prescribing procedures for identifying forgone crops and for establishing the market value of forgone crops. [2001 c.912 §3; 2003 c.46 §32]

 

      Note: Section 6, chapter 913, Oregon Laws 2009, provides:

      Sec. 6. Except as provided in ORS 315.113 (8), a credit may not be claimed under ORS 315.113 for tax years beginning on or after January 1, 2012. [2009 c.913 §6]

 

      315.115 [Repealed by 1965 c.26 §6]

 

      315.117 Legislative findings and declarations regarding on-farm processing. The Legislative Assembly finds that farming and related agricultural activities make significant contributions to the economy of this state and that the contributions of family farms are important in maintaining the agricultural diversity upon which consistent economic performance is based. The Legislative Assembly further finds that changes in the marketplace and in the expectations of consumers of agricultural products have resulted in a need for greater vertical integration and on-farm processing of agricultural commodities. The Legislative Assembly declares that an income tax credit for property taxes paid on on-farm processing machinery and equipment encourages the continued operation and expansion of on-farm processing and results in a greater share of the value of agricultural products being retained by the farms in this state. The Legislative Assembly further declares that an incentive in the form of an income tax credit does not adversely impact the revenues of local governments in this state. [2001 c.725 §2]

 

      315.119 On-farm processing facilities. (1) As used in this section:

      (a) “Effective property tax rate” means:

      (A) The ratio of the total amount of property taxes imposed on the account that contains the machinery and equipment for which a credit is being claimed (after application of ORS 310.150 but prior to discount under ORS 311.505) over the assessed value of the property tax account; and

      (B) The ratio determined under subparagraph (A) of this paragraph for the property tax year that begins in the income tax year for which the credit is claimed.

      (b) “Farm operator” means a person that operates a farming business as defined in section 263A of the Internal Revenue Code.

      (c) “Machinery and equipment” means machinery and equipment that meets the definition of section 1245 property in section 1245 of the Internal Revenue Code.

      (d) “Processing”:

      (A) Means any activity that is directly related and necessary to clean, sort, grade, produce, prepare, manufacture, handle, package, store or ship a farm crop or livestock product after the point of harvest and before the point of sale, in a modified state or altered form.

      (B) Does not include an activity primarily associated with the promotion or retail sale of a product for personal or household use that is normally sold through consumer retail distribution.

      (e) “Qualified machinery and equipment” means machinery and equipment used in processing that meets the requirements of subsections (3) and (4) of this section for the tax year.

      (2) A taxpayer who is a farm operator may claim a credit against the taxes that are otherwise due under ORS chapter 316 or, if the taxpayer is a corporation, under ORS chapter 317 or 318 for ad valorem property taxes paid or incurred on qualified machinery and equipment.

      (3) A credit under this section may be claimed only if:

      (a) The machinery and equipment is owned by the farm operator or by a person who is related to the farm operator under section 267 of the Internal Revenue Code;

      (b) The machinery and equipment is used for processing primarily occurring on land described in subsection (4) of this section; and

      (c)(A) The farm operator has grown or raised at least one-half of the total volume of farm crop or livestock products processed with the machinery and equipment for which the credit is being claimed in three of the five previous income tax years; or

      (B)(i) The farm operator has grown or raised at least one-tenth of the total volume of farm crop or livestock products processed with the machinery and equipment for which the credit is being claimed in three of the five previous income tax years; and

      (ii) The farm operator has used the machinery and equipment to process at least one-half of the volume of the applicable farm crop or livestock products grown or raised by the farm operator in three of the five previous income tax years.

      (4) In addition to the requirements under subsection (3) of this section, a credit under this section may be claimed only if:

      (a) The machinery and equipment is located on land that is specially assessed for farm use under ORS 308A.050 to 308A.128 and the machinery and equipment is owned or otherwise controlled by the farm operator; or

      (b) The machinery and equipment is located on land that is contiguous to land that is specially assessed for farm use under ORS 308A.050 to 308A.128 and the machinery and equipment is owned or otherwise controlled by the farm operator.

      (5) A credit may be claimed under this section only for qualified machinery and equipment that was subject to assessment and property taxation for the property tax year beginning in the income tax year for which the credit is being claimed.

      (6) The amount of the credit shall be the lesser of:

      (a) The effective property tax rate multiplied by the adjusted basis of the qualified machinery and equipment; or

      (b) $30,000.

      (7) The adjusted basis of the qualified machinery and equipment shall be the adjusted basis of the qualified machinery and equipment for personal income or corporate excise or income tax purposes as of the last day of the income tax year for which the credit is being claimed, except that the adjusted basis shall be increased by the cost of any qualified machinery and equipment that the taxpayer elected to expense under section 179 of the Internal Revenue Code, until the qualified machinery and equipment is fully depreciated for personal income or corporate excise or income tax purposes. The adjusted basis shall reflect any depreciation allowable for the current tax year. A credit under this section may not be allowed for a tax year in which the qualified machinery and equipment is fully depreciated for personal income or corporate excise or income tax purposes.

      (8) The credit allowed under this section for any one tax year may not exceed the tax liability of the taxpayer.

      (9) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a particular year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any credit remaining unused in the next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise, any credit not used in that second succeeding tax year may be carried forward and used in the third succeeding tax year, and any credit not used in that third succeeding tax year may be carried forward and used in the fourth succeeding tax year, and any credit not used in that fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, but may not be carried forward for any tax year thereafter.

      (10) The credit allowed under this section is not in lieu of any depreciation or amortization deduction to which the taxpayer otherwise may be entitled under ORS chapter 316, 317 or 318 for the tax year.

      (11) The taxpayer’s adjusted basis for determining gain or loss may not be further decreased by any amount of credit allowed under this section.

      (12) A nonresident shall be allowed the credit under this section in the proportion provided in ORS 316.117.

      (13) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed under this section shall be determined in a manner consistent with ORS 316.117.

      (14) If a change in the taxable year of a taxpayer occurs as described in ORS 314.085, or if the Department of Revenue terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed under this section shall be prorated or computed in a manner consistent with ORS 314.085. [2001 c.725 §3]

 

      Note: Section 5, chapter 725, Oregon Laws 2001, provides:

      Sec. 5. (1) Sections 3 and 4 of this 2001 Act [315.119 and 315.123] apply to tax years beginning on or after January 1, 2002.

      (2) Except as provided in section 3 (9) of this 2001 Act [315.119 (9)], credits allowed under section 3 of this 2001 Act apply to tax years beginning before January 1, 2008. [2001 c.725 §5]

 

      315.120 [Amended by 1953 c.132 §3; repealed by 1965 c.26 §6]

 

      315.123 Minimum production and processing volume requirements; record- keeping requirements. (1) For the first three tax years in which a taxpayer claims a credit under ORS 315.119, a taxpayer shall be deemed to have complied with the applicable minimum production and processing volume requirements of ORS 315.119 (3)(c) if the taxpayer has satisfied these requirements for the preceding tax year.

      (2) For the fourth tax year in which a taxpayer claims a credit under ORS 315.119, the taxpayer shall be deemed to have complied with the applicable minimum production and processing volume requirements of ORS 315.119 (3)(c) if the taxpayer has satisfied these requirements for the preceding tax year and at least one of the three tax years immediately prior to the preceding tax year.

      (3) For each tax year in which a credit is claimed under ORS 315.119, the taxpayer shall maintain records sufficient to determine the taxpayer’s production and processing volume for purposes of ORS 315.119 (3)(c). A taxpayer shall maintain the records required under this subsection for at least 10 years. [2001 c.725 §4]

 

      Note: See note under 315.119.

 

      315.124 Small forestland owner using standard practice harvest restrictions; rules. (1) As used in ORS 315.124 to 315.132:

      (a) “Common ownership” means direct ownership by one or more individuals or ownership by a corporation, partnership, association or other entity in which an individual owns a significant interest.

      (b) “Dry channel area” means that area between the inside edge of the small forest owner minimum option and the edge of the dry stream channel that:

      (A) Is within a surveyed dry channel portion of a small nonfish perennial stream in Western Oregon that under the small forest owner minimum option is a required no-harvest buffer;

      (B) Does not flow water year-round; and

      (C) Is 100 feet or more in length.

      (c) “Forest conservation area” means a riparian forestland area that is not harvested, that is adjacent to a harvested riparian area and that is the excess riparian area allowed for harvest under the small forest owner minimum option beyond that allowed under the standard practice harvest restrictions, and any adjacent dry channel area.

      (d) “Forestland” has the meaning given that term in ORS 527.620.

      (e) “Professional forester” means a person that is engaged in the business of appraising or valuing timber or forestland as described in ORS 674.100.

      (f) “Small forestland owner” means a person that owns or holds common ownership in fewer than 5,000 acres of forestland.

      (g) “Small forest owner minimum option” means the option to harvest timber allowed to a small forestland owner under rules adopted under the Oregon Forest Practices Act.

      (h) “Standard practice harvest restrictions” means the harvest restrictions applicable to large forestland owners under the Oregon Forest Practices Act.

      (i) “Stumpage value” means the value of standing timber based on the value that would be received for the timber if harvested and delivered to a mill, minus the cost of harvest and delivery to the mill.

      (j) “Timber harvest” means a harvest type 1, harvest type 2 or harvest type 3, as those terms are defined in ORS 527.620.

      (k) “Western Oregon” means that area west of the crest of the Cascade Mountains.

      (2)(a) A credit against 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 that is a small forestland owner that is eligible to conduct a timber harvest using a small forest owner minimum option and elects to use standard practice harvest restrictions instead. The credit shall be allowed for the tax year in which the timber harvest is completed.

      (b) A credit under this section may not be transferred to a successor forestland owner.

      (3) In order to be eligible for a credit under this section, a small forestland owner must:

      (a) Have harvested not more than two million board feet of merchantable forest products from forestland in this state owned by the small forestland owner, as averaged over the three years immediately preceding the date of filing a notification of operation as described in ORS 315.126;

      (b) Conduct a timber harvest in an area that is:

      (A) Adjacent to a riparian area subject to the Oregon Forest Practices Act; and

      (B) Equal in size to or larger than that portion of the forest conservation area that the small forestland owner elects not to harvest and upon which the small forestland owner claims the credit; and

      (c) Abide by the standard practice harvest restrictions, which shall remain in effect for the forest conservation area for which the small forestland owner claims the credit for 50 years beginning with the date on which the certification is issued under ORS 315.126.

      (4) The amount of the credit allowed under this section shall be based on the stumpage value of timber within the forest conservation area and shall be calculated as provided in ORS 315.128.

      (5) Prior to claiming the credit allowed under this section, a small forestland owner is required to receive written certification of eligibility from the State Forestry Department, as provided in ORS 315.126.

      (6) Upon the death of a small forestland owner that holds a certification under ORS 315.126, and to the extent that any amount of credit remains, the credit allowed under this section:

      (a) May be used by the executor of the small forestland owner’s estate:

      (A) As a credit against taxes imposed under ORS chapter 316, 317 or 318; and

      (B) As provided in ORS 118.152, as a credit against estate tax imposed under ORS chapter 118 on the estate of the small forestland owner; and

      (b) May be used, to the extent remaining after application of paragraph (a) of this subsection, by the heirs or devisees of the small forestland owner as a credit against the taxes imposed under ORS chapter 316, 317 or 318.

      (7) The credit allowed under this section may not exceed the tax liability of the taxpayer for the tax year.

      (8) A forest conservation area for which a credit is allowed under this section:

      (a) May not be disqualified from eligibility for special assessment as forestland under ORS 321.257 to 321.390 or 321.805 to 321.855 or from qualification for small tract forestland assessment under 321.700 to 321.754 solely due to the use of the credit allowed under this section.

      (b) Shall remain eligible for the deferral allowed under ORS 308A.119, if otherwise eligible.

      (c) Shall be classified as described in ORS 321.210 as land class FX.

      (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 in any succeeding tax year thereafter, and may be carried forward to nonconsecutive tax years.

      (10) A nonresident shall be allowed the credit under this section. The credit shall be computed in the same manner and be subject to the same limitations as the credit granted to a resident.

      (11) The State Forestry Department, after consultation with the Department of Revenue, shall adopt rules for the purposes of ORS 315.124 to 315.132, including policies and procedures for certifying taxpayers as eligible for the credit allowed under this section as required in ORS 315.126.

      (12) The Department of Revenue shall adopt rules for the purposes of ORS 315.124 to 315.132. [2022 c.34 §2]

 

      315.125 [Enacted as 1953 c.197 §2; repealed by 1965 c.26 §6]

 

      315.126 Certification of eligibility from State Forestry Department; notice of operation; irrevocable deed restriction; department to maintain records. (1) In order to obtain certification of eligibility from the State Forestry Department for a tax credit allowed under ORS 315.124, a small forestland owner must:

      (a) File, as provided in ORS 527.670, a notification of operation with the State Forester for an operating area that includes the forest conservation area for which the small forestland owner seeks a credit under ORS 315.124;

      (b) Indicate in the notification of operation that the small forestland owner intends to use the standard practice harvest restrictions in lieu of the small forest owner minimum option;

      (c) Submit to the department an application for certification under this section; and

      (d) Provide documentation of stumpage values and costs of appraisal to the department after filing the notification of operation and within three months after the timber harvest has been completed.

      (2) The State Forestry Department shall timely provide written certification to taxpayers that are eligible to claim the credit under ORS 315.124.

      (3) A small forestland owner that receives certification under this section must:

      (a) Sign and record in the deed records for the county where the eligible forest conservation area is located an irrevocable deed restriction prohibiting the owner and the owner’s successors in interest from conducting a harvest or otherwise removing trees within the forest conservation area for which a credit has been claimed. The deed restriction shall allow for incidental tree removal and for tree removal for public safety purposes. The deed restriction shall specify the amount of the credit and the expiration date of the harvest restriction on the forest conservation area. The State Forestry Department shall provide the small forestland owner with appropriate documentation for this purpose.

      (b) Maintain the written documentation of the amount certified for tax credit under this section, and the amount of credit claimed, in its records as long as any tax return remains open for years in which the credit has been claimed, and provide the written documentation to the Department of Revenue upon request.

      (c) Provide documentation of all costs claimed as part of the credit, including costs of appraisal and costs to file and record the deed restriction required under this section.

      (d) Notify any immediate successor owner of the forest conservation area of the terms of the credit and the potential obligation of successor owners to repay the amount of credit allowed upon violation of the applicable harvest restrictions as described in ORS 315.130.

      (4) The State Forestry Department shall:

      (a) Maintain in the department reporting and notice system operated under ORS 527.786 to 527.793 records of harvest restrictions applicable to certifications issued under this section.

      (b) Provide information to the Department of Revenue about all certifications issued under this section, if required by the Department of Revenue under ORS 315.058. [2022 c.34 §3]

 

      315.128 Calculation of credit amount. (1) The amount of the tax credit allowed under ORS 315.124 shall be the sum of:

      (a) The certified stumpage value of standing timber in that portion of the forest conservation area that is not harvested as a result of using the standard practice harvest restrictions in lieu of the small forest owner minimum option, using the standard measuring techniques of professional foresters;

      (b) The cost to the small forestland owner of establishing the stumpage value, including the cost of appraisal performed by a professional forester, and of filing and recording a deed restriction as described in ORS 315.126 (3); and

      (c) If applicable, one-half of the certified stumpage value of retained timber in a dry channel area adjacent to the forest conservation area.

      (2) The certified stumpage value described in subsection (1)(a) of this section shall be multiplied by 125 percent if the small forestland owner:

      (a) Is barred from using the small forest owner minimum option by the horizontal lineal feet limitation applicable to fifth field watersheds; or

      (b)(A) Is operating on a parcel of land that is significantly disproportionately impacted by rules adopted under ORS 527.610 to 527.770, as determined by the State Forester; and

      (B) Has a federal adjusted gross income, as described in ORS 316.013, of not more than 125 percent of the Oregon median household income, as averaged over the three previous tax years.

      (3) The applicable stumpage values under this section shall be the values as of the date of filing a notification of operation under ORS 527.670, as described in ORS 315.126 (1)(a), and shall be calculated using one of the following methods:

      (a) The conversion return method, in which the volume of timber being retained is determined by species and log grades, and a value is established from current delivered log price information, less a reasonable cost for harvest and delivery, for the area in which the retained timber would ordinarily be sold.

      (b) The actual comparison method, which may be used if the timber being retained is similar in species and log grades to the timber being harvested, and which is calculated using actual revenues from the timber being harvested by the small forestland owner in the harvest area adjacent to the forest conservation area.

      (c) The cash flow modeling method, in which the value of standing timber is determined by using the projected volume of the stand over a harvest rotation based on species and site class, determining the value at harvest age and then discounting the value to the present date using an interest rate equal to the direct farm ownership loan interest rate of the Farm Service Agency of the United States Department of Agriculture.

      (4) Costs, including the cost of an appraisal and the cost of filing and recording a deed restriction, may be included in the credit amount only to the extent that the amount attributable to those costs is not claimed as an income tax deduction by the taxpayer. [2022 c.34 §4; 2023 c.300 §1]

 

      315.130 Revocation upon timber harvest or removal of harvest restriction; liability for tax; penalties. (1) If a small forestland owner, or the owner’s estate, heirs or devisees, elects to conduct a timber harvest within a forest conservation area for which a tax credit has been allowed under ORS 315.124 and for which a harvest restriction has been recorded or otherwise elects to remove the harvest restriction, the certification of the credit shall be revoked and the Department of Revenue may proceed to collect any amounts not paid as a result of the credit, as provided in ORS 315.061.

      (2)(a) If the timber harvest or the removal of a harvest restriction that results in revocation is conducted by an owner other than the small forestland owner that originally received certification for the credit under ORS 315.126, that successor owner shall be liable for the entire amount certified for credit under ORS 315.126. Interest shall be charged at the rate established in ORS 305.220 from the date of transfer of the title to the successor owner.

      (b) A revocation under this subsection does not impair the right of a prior owner to claim the credit.

      (3) After repayment is complete, the small forestland owner shall notify the State Forestry Department of the repayment and the department shall remove the record of the harvest restriction from the department reporting and notice system operated under ORS 527.786 to 527.793. The small forestland owner shall cause the deed restriction to be removed from the county deed records. The department shall provide the small forestland owner with appropriate documentation for this purpose.

      (4) The small forestland owner that conducts the timber harvest shall be responsible for any penalties imposed for violations of the Oregon Forest Practices Act arising from the harvest. [2022 c.34 §5]

 

      315.132 Credit allowed for current certifications following repeal or expiration. If the credit allowed under ORS 315.124 is repealed, or is allowed by the Legislative Assembly to expire, taxpayers that have previously received certification shall be allowed to continue to claim the credit. Any deed restrictions associated with the credit shall be retained. [2022 c.34 §6]

 

      Note: Section 7, chapter 34, Oregon Laws 2022, provides:

      Sec. 7. Notwithstanding ORS 315.037, section 2 of this 2022 Act [315.124] applies to all tax years beginning on or after January 1, 2023. [2022 c.34 §7]

 

      315.133 Overtime compensation paid to agricultural workers. (1) As used in this section and ORS 315.135 and 315.136:

      (a) “Agricultural worker” has the meaning given that term in ORS 653.271.

      (b) “Eligible employer” means an employer doing business in 2017 North American Industry Classification System code 111, crop production, or code 112, animal production and aquaculture.

      (c) “Full-time equivalent employee” means an employee or a combination of employees that perform at least 2,080 hours of work for an employer in a calendar year.

      (2)(a) A credit against taxes that are otherwise due under ORS chapter 316 or, if the taxpayer is a corporation, under ORS chapter 317 or 318 is allowed for overtime compensation required under ORS 653.272 to be paid, for work performed in Oregon, by an eligible employer to agricultural workers on an hourly basis. The amount of the credit shall equal a percentage of the actual excess paid to agricultural workers during the calendar year in which the tax year begins, as determined under ORS 315.135.

      (b) A labor contractor licensed under ORS 658.410 may not claim a credit under this section. An eligible employer may claim a credit under this section for wages paid to workers recruited, solicited, supplied or employed by a labor contractor on behalf of the eligible employer.

      (c) Notwithstanding ORS 317.090 (3), a credit under this section is allowed against the tax imposed under ORS 317.090.

      (d) A credit is not allowed under this section for any overtime wages paid to an employee who is exempt from the provisions of ORS 653.272 as a member of the immediate family of the employer.

      (3) Prior to claiming the credit allowed under this section, a taxpayer is required to receive a notice of acknowledgment from the Department of Revenue, as provided in ORS 315.136, stating the maximum amount of credit that the taxpayer may claim for the calendar year.

      (4) If the amount allowable:

      (a) As a credit under this section against taxes imposed under ORS chapter 316, when added to the sum of the amounts allowable as payment of tax under ORS 316.187 or 316.583, other tax prepayment amounts and other refundable credit amounts, exceeds the taxes imposed by ORS chapters 314 and 316 for the tax year after application of any nonrefundable credits allowable for purposes of ORS chapter 316 for the tax year, the amount of the excess shall be refunded to the taxpayer as provided in ORS 316.502.

      (b) As a credit under this section against taxes imposed under ORS chapter 317 or 318, when added to the sum of the amount of estimated tax paid under ORS 314.515 and any other tax prepayment amounts, exceeds the taxes imposed by ORS chapters 314 and 317 for the tax year (reduced by any nonrefundable credits allowable for purposes of ORS chapter 317 for the tax year), the amount of the excess shall be refunded to the taxpayer as provided in ORS 314.415.

      (5) Any amount that is refunded to the taxpayer under this section and that is in excess of the tax liability of the taxpayer does not bear interest.

      (6) A nonresident shall be allowed the credit under this section. The credit shall be computed in the same manner and be subject to the same limitations as the credit granted to a resident. However, the credit shall be prorated using the proportion provided in ORS 316.117.

      (7) If a change in the taxable year of the taxpayer occurs as described in ORS 314.085, or if the Department of Revenue terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed under this section shall be prorated or computed in a manner consistent with ORS 314.085.

      (8) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed under this section shall be determined in a manner consistent with ORS 316.117.

      (9) The Department of Revenue shall adopt rules for the purposes of ORS 315.133 to 315.137, including policies and procedures for providing notice to taxpayers regarding the credit allowed under this section as required in ORS 315.136. [2022 c.115 §8]

 

      315.134 [1993 c.730 §10 (enacted in lieu of 316.084, 317.133 and 318.080); 1995 c.54 §3; repealed by 2011 c.83 §13]

 

      315.135 Calculation of credit amount. (1) The amount of credit allowed under ORS 315.133 shall be equal to a percentage of the additional wages paid as required overtime pay to agricultural workers by an eligible employer, in excess of regular pay, as set forth in subsections (2) to (5) of this section.

      (2) If during the calendar year the taxpayer employs more than 50 full-time equivalent employees and is not primarily engaged in the business of dairying, the following percentages of excess wages paid by the employer in a calendar year shall apply, for the following calendar years:

      (a) 60 percent, for 2023 or 2024.

      (b) 45 percent, for 2025.

      (c) 30 percent, for 2026.

      (d) 15 percent, for 2027 or 2028.

      (3) If during the calendar year the taxpayer employs more than 25 but not more than 50 full-time equivalent employees, or employs more than 25 full-time equivalent employees and is primarily engaged in the business of dairying, the following percentages of excess wages paid by the employer in a calendar year shall apply, for the following calendar years:

      (a) 75 percent, for 2023.

      (b) 60 percent, for 2024 or 2025.

      (c) 50 percent, for 2026, 2027 or 2028.

      (4) If during the calendar year the taxpayer employs not more than 25 full-time equivalent employees and is not primarily engaged in the business of dairying, the following percentages of excess wages paid by the employer in a calendar year shall apply, for the following calendar years:

      (a) 90 percent, for 2023.

      (b) 80 percent, for 2024 and 2025.

      (c) 60 percent, for 2026, 2027 and 2028.

      (5) If during the calendar year the taxpayer employs not more than 25 full-time equivalent employees and is primarily engaged in the business of dairying, the credit shall equal 100 percent of excess wages paid by the employer. [2022 c.115 §9]

 

      315.136 Notice of acknowledgment in support of credit; application. (1) In order to receive a notice of acknowledgment from the Department of Revenue in support of a tax credit allowed under ORS 315.133, a taxpayer shall submit to the department an application under this section. The application shall be made in the form and manner prescribed by the department and must be submitted by the taxpayer no later than January 31 following the calendar year for which the taxpayer seeks credit.

      (2) The taxpayer must include with the application required under this section the following:

      (a) The address and tax identification number of the taxpayer.

      (b) A statement by the taxpayer of the overtime hours worked and overtime wages paid, on an hourly basis, to agricultural workers employed by the taxpayer and the amount of overtime wages paid by or on behalf of the taxpayer as compensation to agricultural workers during the calendar year. The taxpayer shall provide aggregate data as to employees of the taxpayer who received overtime pay from the taxpayer and those who did not.

      (c) The number of the license issued under ORS 658.410 to any labor contractor used to recruit, solicit, supply or employ workers on behalf of the taxpayer, or other permit or registration numbers issued to the labor contractor.

      (d) If applicable, any license required under ORS 475C.065 or 571.281 or registration required under ORS 475C.792.

      (e) Any other information required by the department to verify the identity of the taxpayer or the potential maximum amount of credit allowed to the taxpayer under ORS 315.133.

      (3) Upon receipt of an application under this section, the department shall immediately allow an extension, from the next applicable due date, for filing of the taxpayer’s income or corporate excise tax return.

      (4) Not later than June 1 of the year in which the application under subsection (1) of this section is filed, the department shall issue written notice to taxpayers that meet the application requirements of this section. The notice of acknowledgment shall state the maximum amount of credit for which the taxpayer is eligible for the tax year. The credit claimed may not exceed the actual amount of excess paid as overtime wages to agricultural workers during the calendar year by the taxpayer. [2022 c.115 §10]

 

      315.137 Calendar year limitation on credits allowed all taxpayers. The total amount allowed for tax credits for overtime wages under ORS 315.133, as acknowledged in notices provided by the Department of Revenue under ORS 315.136, may not exceed $55 million for all taxpayers for any calendar year. If the department receives applications for the credit sufficient to exceed this amount, the department shall by rule proportionately reduce the amount of certified credits among all taxpayers applying for the credit. [2022 c.115 §11]

 

      Note: Section 12, chapter 115, Oregon Laws 2022, provides:

      Sec. 12. Section 8 of this 2022 Act [315.133] applies to tax years beginning on or after January 1, 2023. [2022 c.115 §12]

 

      315.138 Screening devices, by-pass devices or fishways; rules. (1) There shall be allowed a credit against tax due under ORS chapter 316, or if the taxpayer is a corporation, under ORS chapter 317, for taxpayers that install screening devices, by-pass devices or fishways, pursuant to ORS 498.306 or 509.585, and the diversion is not part of a hydroelectric project required to be licensed under the Federal Energy Regulatory Commission. Except as allowed in subsection (4) of this section, the credit shall be taken in the tax year in which the final certification is issued under subsection (10) of this section.

      (2) The credit shall be equal to 50 percent of the taxpayer’s net certified costs of installing a screening device, by-pass device or fishway. The total credit allowed may not exceed $5,000 per device installed.

      (3) The credit allowed in any one year may not exceed the tax liability of the taxpayer.

      (4) Any tax credit otherwise allowable under this section which is not used by the taxpayer in a particular tax year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any credit remaining unused in such next succeeding tax year may be carried forward and used in the second succeeding tax year. Any credit remaining unused in such second succeeding tax year may be carried forward and used in the third succeeding tax year. Any credit remaining unused in such third succeeding tax year may be carried forward and used in the fourth succeeding tax year. Any credit remaining unused in such fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, but may not be used in any tax year thereafter.

      (5) The credit provided by this section shall be in addition to and not in lieu of any depreciation or amortization deduction to which the taxpayer otherwise may be entitled with respect to the installation of a screening device, by-pass device or fishway. The taxpayer’s adjusted basis for determining gain or loss may not be further decreased by any tax credits allowed under this section.

      (6) In the case of a credit allowed under this section for purposes of ORS chapter 316:

      (a) A nonresident shall be allowed the credit in the same manner and subject to the same limitations as a resident. However, the credit shall be prorated using the proportion provided in ORS 316.117.

      (b) If a change in the tax year of a taxpayer occurs as described in ORS 314.085, or if the Department of Revenue terminates the taxpayer’s tax year under ORS 314.440, the credit allowed by this section shall be prorated or computed in a manner consistent with ORS 314.085.

      (c) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117.

      (7) To qualify for the credit the taxpayer must be issued a certificate by the State Department of Fish and Wildlife.

      (8) To obtain credit under subsection (1) of this section, any person proposing to apply for certification of a screening device, by-pass device or fishway, before installing the screening device, by-pass device or fishway, shall file a request for preliminary certification with the State Department of Fish and Wildlife. The request shall be in a form prescribed by the State Department of Fish and Wildlife. The following conditions shall apply:

      (a) Within 30 days of the receipt of a request for preliminary certification, the State Department of Fish and Wildlife may require, as a condition precedent to issuance of a preliminary certificate of approval, the submission of plans and specifications. After examination thereof, the State Department of Fish and Wildlife may request corrections and revisions to the plans and specifications. The State Department of Fish and Wildlife may also require any pertinent information necessary to determine whether the proposed screening device, by-pass device or fishway is in accordance with State Department of Fish and Wildlife requirements.

      (b) If the State Department of Fish and Wildlife determines that the proposed screening device, by-pass device or fishway is in accordance with State Department of Fish and Wildlife requirements, it shall issue a preliminary certificate approving the screening device, by-pass device or fishway. If the State Department of Fish and Wildlife determines that the screening device, by-pass device or fishway does not comply with State Department of Fish and Wildlife requirements, the State Department of Fish and Wildlife shall issue an order denying certification.

      (c) If within 90 days of the receipt of plans, specifications or any subsequently requested revisions or corrections to the plans and specifications or any other information required pursuant to this section, the State Department of Fish and Wildlife fails to issue a preliminary certificate of approval and the State Department of Fish and Wildlife fails to issue an order denying certification, the preliminary certificate shall be considered to have been issued. The capital investment must comply with the plans, specifications and any corrections or revisions thereto, if any, previously submitted.

      (d) Within 30 days from the date of mailing of the order, any person against whom an order is directed pursuant to paragraph (b) of this subsection may demand a hearing. The demand shall be in writing, shall state the grounds for hearing and shall be mailed to the State Fish and Wildlife Director. The hearing shall be conducted in accordance with the applicable provisions of ORS chapter 183.

      (9) A screening device, by-pass device or fishway that is installed by the State Department of Fish and Wildlife pursuant to ORS 498.306 (8) in response to noncompliance by the person responsible for the water diversion is not eligible for the credit provided in subsection (1) of this section.

      (10) Upon completion and pursuant to application for final certification, final certification shall be issued by the State Department of Fish and Wildlife if the screening device, by-pass device or fishway was constructed and installed in accordance with State Department of Fish and Wildlife requirements. Final certification shall include a statement of the costs of installation as verified by the State Department of Fish and Wildlife. The credit allowed under this section shall be claimed first for the tax year of the taxpayer in which final certification is issued.

      (11) The State Department of Fish and Wildlife shall provide information to the Department of Revenue about all certifications issued under this section, if required by ORS 315.058.

      (12) The State Fish and Wildlife Director may order the suspension or revocation of a certification issued under this section, as provided in ORS 315.061, for the reasons set forth in ORS 315.061 or if the holder of the certificate fails to meet State Department of Fish and Wildlife requirements.

      (13) In the event that the screening device, by-pass device or fishway is destroyed by flood, natural disaster or act of God before all of the credit has been used, the taxpayer may nevertheless claim the credit as if no destruction had taken place.

      (14) Screening devices, by-pass devices or fishways that are financed by funds obtained from the Water Development Fund, pursuant to ORS 541.700 to 541.855, are not eligible for the credit under any circumstances.

      (15) The State Department of Fish and Wildlife shall adopt rules for carrying out the provisions of this section and report to the interim committee created under ORS 171.605 to 171.640 to make studies of and inquiries into state revenue matters. [1993 c.730 §12 (enacted in lieu of 316.139 and 317.145); 2001 c.923 §5; 2007 c.625 §2; 2019 c.483 §19]

 

      Note: Section 11, chapter 913, Oregon Laws 2009, provides:

      Sec. 11. The State Department of Fish and Wildlife may not issue a preliminary certificate of approval under ORS 315.138 after January 1, 2030. [2009 c.913 §11; 2011 c.730 §18a; 2017 c.610 §34; 2023 c.490 §1]

 

      315.141 Biomass production or collection; fee; rules; documentation. (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) 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) “Canola” means plants of the genus Brassica:

      (A) In which seeds having a high oil content are the primary economically valuable product; and

      (B) That have a high erucic acid content suitable for industrial uses or a low erucic acid content suitable for edible oils.

      (h) “Oilseed processor” means a person that receives agricultural oilseeds and separates them into meal and oil by mechanical or chemical means.

      (i) “Willamette Valley” means Clackamas, Linn, Marion, Multnomah, Polk, Washington and Yamhill Counties and the portion of Benton and Lane Counties lying east of the summit of the Coast Range.

      (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) A credit under this section may be claimed only once for each unit of biomass.

      (e) Notwithstanding paragraph (a) of this subsection, a tax credit:

      (A) Is not allowed for canola grown, collected or produced in the Willamette Valley; and

      (B) 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 469B.403. 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.

      (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 tax year of the taxpayer occurs as described in ORS 314.085, or if the department terminates the taxpayer’s tax year under ORS 314.440, the credit allowed under this section shall be prorated or computed in a manner consistent with ORS 314.085.

      (11) The Director of the State Department of Energy may order the suspension or revocation of a certification issued under this section, as provided in ORS 315.061. [2007 c.739 §2; 2007 c.590 §4; 2009 c.909 §49; 2011 c.730 §2a; 2012 c.45 §15; 2013 c.750 §40; 2019 c.483 §6]

 

      Note: Section 6, chapter 739, Oregon Laws 2007, provides:

      Sec. 6. (1) ORS 315.141, 315.144 and 469B.403 apply to tax credits for tax years beginning on or after January 1, 2007, and before January 1, 2018.

      (2) Notwithstanding subsection (1) of this section, a tax credit is not allowed for wheat grain (other than nongrain wheat material) for tax years beginning before January 1, 2009, or on or after January 1, 2018. [2007 c.739 §6; 2007 c.590 §5; 2009 c.913 §18; 2011 c.730 §2; 2016 c.29 §11; 2017 c.610 §12]

 

      315.144 Transfer of biomass credit; rules. (1) A person that has obtained a tax credit under ORS 315.141 may transfer the credit to a taxpayer subject to tax under ORS chapter 316, 317 or 318.

      (2) A tax credit allowed under ORS 315.141 may be transferred on or before the date on which the return is due for the tax year in which the credit may first be claimed. After that date, no portion of a credit allowed under ORS 315.141 may be transferred.

      (3) To transfer the tax credit, the taxpayer earning the credit and the taxpayer that will claim the credit shall, on or before the date prescribed in subsection (2) of this section, jointly file a notice of tax credit transfer with the Department of Revenue. The notice shall be given on a form prescribed by the department that contains all of the following:

      (a) The name and address of the transferor and transferee;

      (b) The amount of the tax credit that is being transferred;

      (c) The amount of the tax credit that is being retained by the transferor; and

      (d) Any other information required by the department.

      (4) The State Department of Energy may establish by rule a minimum discounted value of a tax credit under this section.

      (5) The Department of Revenue, in consultation with the State Department of Energy, may by rule establish procedures for the transfer of tax credits provided by this section. [2007 c.739 §3; 2009 c.909 §50]

 

      Note: See note under 315.141.

 

      315.148 [1993 c.730 §14 (enacted in lieu of 316.098, 317.150 and 318.102); 1995 c.54 §4; repealed by 1999 c.21 §38]

 

      315.154 Definitions for crop donation credit. As used in this section and ORS 315.156:

      (1) “Apparently wholesome food” means:

      (a) Food fit for human consumption; and

      (b) Food that meets all quality and labeling standards imposed by federal, state or local laws, even though the food may not be readily marketable due to appearance, age, freshness, grade, size, surplus or other condition.

      (2) “Crop” means an agricultural crop producing food for human consumption and includes, but is not limited to, bedding plants that produce food, orchard stock intended for the production of food and livestock that may be processed into food for human consumption.

      (3) “Food bank or other charitable organization” means any organization located in this state, including but not limited to a gleaning cooperative, that is exempt from federal income taxes under section 501(c)(3) of the Internal Revenue Code and that has as a principal or ongoing purpose the distribution of food to children or homeless, unemployed, elderly or low-income individuals.

      (4) “Grower” includes a person who raises livestock.

      (5) “Qualified donation” means the harvest or post-harvest contribution in Oregon of a crop or a portion of a crop grown primarily to be sold for cash that is donated by the grower of the crop to a gleaning cooperative, food bank or other charitable organization engaged in the distribution of food without charge, at such a time that the crop is still usable as food for human consumption and:

      (a) The grower of the crop has supplied any crop contract quota with the wholesale or retail buyer;

      (b) If the grower of the crop is a party to a contingent supply contract, the wholesale or retail buyer reduces the crop quota that was reasonably anticipated to be supplied by the grower; or

      (c) The grower of the crop otherwise determines to make a donation of apparently wholesome food.

      (6) “Wholesale market price” means the market price for the produce determined either by:

      (a) The amount paid to the grower by the last previous cash buyer of the particular crop; or

      (b) In the event there is no previous cash buyer, a market price based upon the market price of the nearest regional wholesale buyer or the regional u-pick market price. [1993 c.730 §16 (enacted in lieu of 316.089); 1999 c.21 §39; 2001 c.222 §1]

 

      315.155 [Repealed by 1965 c.26 §6]

 

      315.156 Crop donation; forms. (1) A taxpaying individual or corporation that is a grower of a crop and that makes a qualified donation of the crop shall be allowed a credit against the taxes otherwise due under ORS chapter 316 or, if the taxpayer is a corporation, under ORS chapter 317 or 318, as follows:

      (a) In the case of a qualified donation made under circumstances described in ORS 315.154 (5)(a) or (b), the amount of the credit shall be 15 percent of the value of the quantity of the crop donated computed at the wholesale market price.

      (b) In the case of a qualified donation made under circumstances described in ORS 315.154 (5)(c), the amount of the credit shall be 15 percent of the value of the quantity of the crop donated computed at the wholesale market price that the grower would have received had the quantity of the crop donated been sold or salable.

      (2) At the time of donation, the director, supervisor or other appropriate official of the entity to which a qualified donation is made shall supply to the grower of the crop donated two copies of a form prescribed by the Department of Revenue. The forms shall contain:

      (a) The name and address of the grower;

      (b) The description and quantity of the donated crop;

      (c) The signature of the director, supervisor or other appropriate official of the entity receiving the donated crop verifying that the produce was or will be distributed to children or homeless, unemployed, elderly or low-income individuals;

      (d) The wholesale market price; and

      (e) Other information required by the Department of Revenue by rule.

      (3) Tax claim for tax credit shall be substantiated by submission with the tax return, of the form described in subsection (2) of this section, a statement verified by the taxpayer that the qualified donation was made under circumstances described in ORS 315.154 (5) and a copy of an invoice or other statement identifying the price received by the grower for the crops of comparable grade or quality if there is a previous cash buyer. The requirement for substantiation may be waived partially, conditionally or absolutely, as provided under ORS 315.063.

      (4) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a particular tax year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any credit remaining unused in the next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise, any credit not used in that second succeeding tax year may be carried forward and used in the third succeeding tax year, but may not be carried forward for any tax year thereafter.

      (5)(a) A nonresident individual shall be allowed the credit computed under this section in the same manner and subject to the same limitations as the credit allowed a resident by this section. However, the credit shall be prorated using the proportion provided in ORS 316.117.

      (b) If a change in the taxable year of a taxpayer occurs as described in ORS 314.085, or if the department terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed by this section shall be prorated or computed in a manner consistent with ORS 314.085.

      (c) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117. [1993 c.730 §18 (enacted in lieu of 316.091, 317.148 and 318.104); 1995 c.54 §5; 1999 c.21 §40; 2001 c.222 §2; 2014 c.115 §2]

 

      Note: Section 5, chapter 913, Oregon Laws 2009, provides:

      Sec. 5. Except as provided in ORS 315.156 (4), a credit may not be claimed under ORS 315.156 for tax years beginning on or after January 1, 2012, and before January 1, 2014, or on or after January 1, 2026. [2009 c.913 §5; 2014 c.115 §1; 2019 c.579 §38]

 

      315.160 [Repealed by 1965 c.26 §6]

 

      315.163 Definitions for ORS 315.163 to 315.169. As used in ORS 315.163 to 315.169:

      (1)(a) “Acquisition costs” means the cost of acquiring buildings, structures and improvements that constitute or will constitute agriculture workforce housing.

      (b) “Acquisition costs” does not include the cost of acquiring land on which agriculture workforce housing is or will be located.

      (2) “Agricultural worker” means any person who, for an agreed remuneration or rate of pay, performs temporary or permanent labor for another in the:

      (a) Production of agricultural or aquacultural crops or products;

      (b) Handling of agricultural or aquacultural crops or products in an unprocessed stage;

      (c) Processing of agricultural or aquacultural crops or products;

      (d) Planting, cultivating or harvesting of seasonal agricultural crops; or

      (e) Forestation or reforestation of lands, including but not limited to the planting, transplanting, tubing, precommercial thinning and thinning of trees and seedlings, the clearing, piling and disposal of brush and slash and other related activities.

      (3) “Agriculture workforce housing” means housing:

      (a) Limited to occupancy by agricultural workers, including agricultural workers who are retired or disabled, and their immediate families; and

      (b) No dwelling unit of which is occupied by a relative of the owner or operator of the agriculture workforce housing, except in the case of a manufactured dwelling in a manufactured dwelling park nonprofit cooperative as defined in ORS 62.803.

      (4) “Agriculture workforce housing project” means the acquisition, construction, installation or rehabilitation of agriculture workforce housing.

      (5) “Condition of habitability” means a condition that is in compliance with:

      (a) The applicable provisions of the state building code under ORS chapter 455 and the rules adopted thereunder; or

      (b) If determined on or before December 31, 1995, sections 12 and 13, chapter 964, Oregon Laws 1989.

      (6) “Contributor” means a person:

      (a) That acquired, constructed, manufactured or installed agriculture workforce housing or contributed money to finance an agriculture workforce housing project; or

      (b) That has purchased or otherwise received via transfer a credit as provided in ORS 315.169 (2).

      (7) “Eligible costs” includes acquisition costs, finance costs, construction costs, excavation costs, installation costs and permit costs and excludes land costs.

      (8)(a) “Owner” means a person that owns agriculture workforce housing.

      (b) “Owner” does not include a person that only has an interest in the agriculture workforce housing as a holder of a security interest.

      (9) “Rehabilitation” means to make repairs or improvements to a building that improve its livability and are consistent with applicable building codes.

      (10) “Relative” means a brother or sister (whether by the whole or by half blood), spouse, ancestor (whether by law or by blood), or lineal descendant of an individual.

      (11) “Taxpayer” includes a nonprofit corporation, a tax-exempt entity or any other person not subject to tax under ORS chapter 316, 317 or 318. [2003 c.588 §1; 2011 c.471 §1; 2013 c.750 §19]

 

      315.164 Agriculture workforce housing projects; rules. (1) A taxpayer who is the owner or operator of agriculture workforce housing is allowed a credit against the taxes otherwise due under ORS chapter 316, if the taxpayer is a resident individual, or against the taxes otherwise due under ORS chapter 317, if the taxpayer is a corporation. The total amount of the credit shall be equal to 50 percent of the eligible costs actually paid or incurred by the taxpayer to complete an agriculture workforce housing project, to the extent the eligible costs actually paid or incurred by the taxpayer do not exceed the estimate of eligible costs approved by the Housing and Community Services Department under ORS 315.167.

      (2) A taxpayer who is otherwise eligible to claim a credit under this section may elect to transfer all or a portion of the credit to a contributor in the manner provided in ORS 315.169.

      (3)(a) The credit allowed under this section may be taken for the tax year in which the agriculture workforce housing project is completed or in any of the nine tax years succeeding the tax year in which the project is completed.

      (b) The credit allowed in any one tax year may not exceed 20 percent of the amount determined under subsection (1) of this section.

      (4)(a) To claim a credit under this section, a taxpayer must show in each year following the completion of an agriculture workforce housing project that the housing continues to be operated as agriculture workforce housing.

      (b) A taxpayer need not make the showing required in paragraph (a) of this subsection if the Housing and Community Services Department waives the requirement after the taxpayer has successfully met the requirement for the first five years after completion of the agriculture workforce housing project.

      (c) The Housing and Community Services Department shall determine by rule the factors necessary to grant a waiver. Such factors may include a documented decline in a particular area for agriculture workforce housing.

      (5) The credit shall apply only to an agriculture workforce housing project that is located within this state and physically begun on or after January 1, 1990.

      (6)(a) A credit may not be allowed under this section unless the taxpayer claiming credit under this section:

      (A) Obtains a letter of credit approval from the Housing and Community Services Department pursuant to ORS 315.167; and

      (B) Files with the Housing and Community Services Department an annual certification providing that all occupied units for which credit is being claimed are occupied by agricultural workers, including agricultural workers who are retired or disabled, and their immediate families.

      (b) The certification described under this subsection shall be made on the form and in the time and manner prescribed by the Housing and Community Services Department.

      (7) Except as provided under subsection (8) of this section, the credit allowed in any one year may not exceed the tax liability of the taxpayer.

      (8) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a particular tax year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any credit remaining unused in the next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise any credit not used in that second succeeding tax year may be carried forward and used in the third succeeding tax year, and any credit not used in that third succeeding tax year may be carried forward and used in the fourth succeeding tax year, and any credit not used in that fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, and any credit not used in that fifth succeeding tax year may be carried forward and used in the sixth succeeding tax year, and any credit not used in that sixth succeeding tax year may be carried forward and used in the seventh succeeding tax year, and any credit not used in that seventh succeeding tax year may be carried forward and used in the eighth succeeding tax year, and any credit not used in that eighth succeeding tax year may be carried forward and used in the ninth succeeding tax year, but may not be carried forward for any tax year thereafter.

      (9)(a) The credit provided by this section is not in lieu of any depreciation or amortization deduction for the agriculture workforce housing project to which the taxpayer otherwise may be entitled under ORS chapter 316 or 317 for the year.

      (b) The taxpayer’s adjusted basis for determining gain or loss may not be further decreased by any tax credits allowed under this section.

      (10) For a taxpayer to receive a credit under this section, the agriculture workforce housing must:

      (a) Comply with all occupational safety or health laws, rules, regulations and standards;

      (b) If registration is required, be registered as a farmworker camp with the Department of Consumer and Business Services under ORS 658.750;

      (c) Upon occupancy and if an indorsement is required, be operated by a person who holds a valid indorsement as a farmworker camp operator under ORS 658.730; and

      (d) Continue to be operated as agriculture workforce housing for a period of at least 10 years after the completion of the agriculture workforce housing project, unless a waiver has been granted under subsection (4) of this section.

      (11) The Director of the Housing and Community Services Department may order the suspension or revocation of a letter of credit approval issued under ORS 315.167 or the disallowance of a credit allowed under this section, as provided in ORS 315.061:

      (a) For the reasons set forth in ORS 315.061; or

      (b) In the event that an owner or operator claims or claimed the credit, if the director finds that:

      (A) The taxpayer has failed to continue to substantially comply with the occupational safety or health laws, rules, regulations or standards;

      (B) After occupancy and if registration is required, the agriculture workforce housing is not registered as a farmworker camp with the Department of Consumer and Business Services under ORS 658.750;

      (C) After occupancy and if an indorsement is required, the agriculture workforce housing is not operated by a person who holds a valid indorsement as a farmworker camp operator under ORS 658.730; or

      (D) The taxpayer has failed to make a showing that the housing continues to be operated as agriculture workforce housing as required under subsection (4)(a) of this section and the taxpayer has not been granted a waiver by the Housing and Community Services Department under subsection (4)(b) of this section.

      (12) In the event that the agriculture workforce housing is destroyed by fire, flood, natural disaster or act of God before all of the credit has been used, the taxpayer may nevertheless claim the credit as if no destruction had taken place. In the event of fire, if the fire chief of the fire protection district or unit determines that the fire was caused by arson, as defined in ORS 164.315 and 164.325, by the taxpayer or by another at the taxpayer’s direction, then the fire chief shall notify the Housing and Community Services Department. Upon conviction of arson, the department shall disallow the credit in accordance with subsection (11) of this section.

      (13)(a) A nonresident individual shall be allowed the credit computed in the same manner and subject to the same limitations as the credit allowed a resident by this section. However, the credit shall be prorated using the proportion provided in ORS 316.117.

      (b) If a change in the tax year of a taxpayer occurs as described in ORS 314.085, or if the Department of Revenue terminates the taxpayer’s tax year under ORS 314.440, the credit allowed by this section shall be prorated or computed in a manner consistent with ORS 314.085.

      (c) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117.

      (14)(a) The Department of Revenue may adopt rules for carrying out the provisions of this section.

      (b) The Housing and Community Services Department may adopt rules for providing letters of credit approval and granting certification and for monitoring taxpayer compliance with this section.

      (15) The Housing and Community Services Department shall provide information to the Department of Revenue about all letters of credit approval and certifications granted under this section, if required by ORS 315.058. [1993 c.730 §20 (enacted in lieu of 316.154 and 317.146); 1993 c.730 §20a; 1995 c.500 §10; 1995 c.746 §52; 2001 c.613 §13a; 2001 c.625 §2; 2001 c.868 §1; 2003 c.588 §§3,5; 2011 c.471 §2; 2013 c.750 §20; 2019 c.483 §7]

 

      Note: Section 28, chapter 913, Oregon Laws 2009, provides:

      Sec. 28. Except as provided in ORS 315.164 (8), a credit may not be claimed under ORS 315.164 for agriculture workforce housing projects completed in tax years beginning on or after January 1, 2032. [2009 c.913 §28; 2013 c.750 §18; 2019 c.579 §30; 2023 c.490 §5]

      315.165 [Repealed by 1965 c.26 §6]

 

      315.167 Agriculture workforce housing credit application; procedure; rules. (1) Prior to the completion of an agriculture workforce housing project for which credit under ORS 315.164 will be claimed, an owner or operator of agriculture workforce housing shall apply to the Housing and Community Services Department for a letter of credit approval.

      (2) The application shall be on such form as is prescribed by the Housing and Community Services Department and shall provide:

      (a) The name, address and taxpayer identification number of the taxpayer;

      (b) The location of the proposed agriculture workforce housing;

      (c) A description of the project identifying the type of housing that is the subject of the agriculture workforce housing project;

      (d) An estimate of the eligible costs of the agriculture workforce housing project;

      (e) The number of units in the project dedicated to agriculture workforce housing and the eligible costs associated with the units;

      (f) The amount of credit to be claimed by the owner or operator of agriculture workforce housing, and the amount of credit, if any, to be claimed by a contributor under ORS 315.169; and

      (g) Any other information as the Housing and Community Services Department may require.

      (3) The Housing and Community Services Department may review applications using any reasonable system of prioritizing review established by department rule.

      (4) Upon approval of an application, the Housing and Community Services Department shall prepare a letter of credit approval. The letter shall state the approved amount of estimated eligible costs for the agriculture workforce housing project and, if applicable, the portion of credit to be claimed by an owner or operator of agriculture workforce housing under ORS 315.164 and the portion of credit to be claimed by a contributor under ORS 315.169. The letter shall be sent:

      (a) To the owner or operator of agriculture workforce housing, if any credit is to be claimed under ORS 315.164; and

      (b) To the contributor, if any credit is to be claimed under ORS 315.169 and if the contributor has been identified at the time of approval.

      (5) At the conclusion of each calendar year, the Housing and Community Services Department shall send a list of the names, addresses and taxpayer identification numbers of taxpayers to whom a letter of credit approval has been issued under this section during the calendar year, along with approved amounts of estimated eligible costs for each agriculture workforce housing project, to the Department of Revenue.

      (6) Notwithstanding that a letter of credit approval has been issued to a taxpayer under this section, the Department of Revenue may disallow, in whole or in part, a claim for credit under ORS 315.164 upon the Department of Revenue’s determination that under the provisions of ORS 315.164 the taxpayer is not entitled to the credit or is only entitled to a portion of the amount claimed. [1995 c.746 §52a; 2001 c.613 §14; 2001 c.625 §3; 2001 c.868 §5; 2003 c.588 §§6a,7; 2011 c.471 §3; 2013 c.750 §21; 2021 c.525 §18]

 

      315.169 Agriculture workforce housing contributor credit; transfer of agriculture workforce housing owner or operator credit; continued eligibility; rules. (1) A taxpayer that is a contributor is allowed a credit against the taxes otherwise due under ORS chapter 316, if the taxpayer is a resident individual, or ORS chapter 317, if the taxpayer is a corporation, to the extent the owner or operator of agriculture workforce housing transferred all or a portion of the credit allowed to the owner or operator under ORS 315.164.

      (2) An owner or operator of agriculture workforce housing may transfer all or a portion of the credit allowed to the owner or operator under ORS 315.164 to one or more contributors but the amount transferred may not total more than the total credit the owner or operator may claim. The transfer must comply with ORS 315.056.

      (3) To receive a credit under this section:

      (a) The contributor must obtain a letter of credit approval from the Housing and Community Services Department under ORS 315.167; or

      (b) If the owner or operator of agriculture workforce housing elects to transfer all or a portion of the credit allowed under ORS 315.164 after the date that a letter of credit approval has been issued to the owner or operator, the owner or operator and the contributor must comply with ORS 315.056.

      (4) A contributor remains eligible to receive a credit under this section even if the owner or operator of the agriculture workforce housing becomes ineligible for the credit as a result of:

      (a) Failure to file the annual certification under ORS 315.164 (6);

      (b) Failure to continue to substantially comply with occupational safety or health laws, rules, regulations or standards under ORS 315.164 (10);

      (c) Failure to register as a farmworker camp with the Department of Consumer and Business Services under ORS 658.750;

      (d) Failure of the operator to hold a valid indorsement as a farmworker camp operator under ORS 658.730; or

      (e) Failure to comply with any other rules or provisions relating to the operation or maintenance of the agriculture workforce housing after work on the agriculture workforce housing project has been completed.

      (5)(a) The credit allowed under this section may be taken for the tax year in which the agriculture workforce housing project is completed or in any of the nine tax years succeeding the tax year in which the project is completed.

      (b) The credit allowed in any one tax year may not exceed 20 percent of the amount determined under subsection (2) of this section that was transferred to the contributor claiming the credit.

      (6) Except as provided under subsection (7) of this section, the credit allowed in any one year may not exceed the tax liability of the taxpayer.

      (7) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a particular tax year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any credit remaining unused in the next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise any credit not used in that second succeeding tax year may be carried forward and used in the third succeeding tax year, and any credit not used in that third succeeding tax year may be carried forward and used in the fourth succeeding tax year, and any credit not used in that fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, and any credit not used in that fifth succeeding tax year may be carried forward and used in the sixth succeeding tax year, and any credit not used in that sixth succeeding tax year may be carried forward and used in the seventh succeeding tax year, and any credit not used in that seventh succeeding tax year may be carried forward and used in the eighth succeeding tax year, and any credit not used in that eighth succeeding tax year may be carried forward and used in the ninth succeeding tax year, but may not be carried forward for any tax year thereafter.

      (8)(a) A nonresident individual shall be allowed the credit computed in the same manner and subject to the same limitations as the credit allowed a resident by this section. However, the credit shall be prorated using the proportion provided in ORS 316.117.

      (b) If a change in the tax year of a taxpayer occurs as described in ORS 314.085, or if the Department of Revenue terminates the taxpayer’s tax year under ORS 314.440, the credit allowed by this section shall be prorated or computed in a manner consistent with ORS 314.085.

      (c) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117.

      (9) The Department of Revenue may adopt rules for carrying out the provisions of this section. [2001 c.868 §3; 2003 c.588 §§9,11; 2011 c.471 §4; 2013 c.750 §22; 2019 c.483 §8]

 

      315.170 [Repealed by 1965 c.26 §6]

 

      315.171 Tax credit limit for biennium. The Housing and Community Services Department may approve an application under ORS 315.167 only if the potential credits of the project would not cause the total potential credits claimed under ORS 315.164 (1) for all approved applications to exceed $16.75 million within the biennium in which the application is approved. [2021 c.525 §20]

 

      315.172 [2001 c.868 §4; 2003 c.588 §15; 2013 c.750 §23; repealed by 2019 c.483 §25]

 

      315.174 Livestock killed by wolf. (1) As used in this section, “livestock” has the meaning given that term in ORS 610.150.

      (2) A credit against taxes imposed under ORS chapter 316 (or, if the taxpayer is a corporation, under ORS chapter 317 or 318) shall be allowed for the current market value of any livestock that belongs to the taxpayer and that is killed during the tax year by a wolf.

      (3) In order to qualify for the credit allowed under this section, the taxpayer must obtain written certification from the State Department of Fish and Wildlife as provided in subsection (4) of this section.

      (4)(a) The State Department of Fish and Wildlife shall issue written certification to taxpayers that are eligible to claim the credit allowed under this section. Before issuing a certification under this subsection, the department must possess evidence that the loss to a taxpayer’s livestock is due to wolf depredation. The evidence must include a finding by the department or by a peace officer, as defined in ORS 161.015, that wolf depredation was the probable cause of the loss.

      (b) The department may not issue certifications for more than $37,500 in tax credits for any tax year. The department shall issue certifications to taxpayers in the order in which completed applications for certification are received by the department.

      (5) A credit allowed under this section shall be reduced by any amount that a taxpayer has already received as compensation for the killed livestock, including compensation pursuant to ORS 610.150.

      (6) A taxpayer may not claim a credit under this section for:

      (a) Any tax year that ends after the date on which the State Fish and Wildlife Commission has, by rule, removed the wolf from the list of endangered species established pursuant to ORS 496.172 (2); or

      (b) A loss to livestock killed after June 30, 2018.

      (7) If the amount allowable as a credit under this section, when added to the sum of the amounts allowable as payment of tax under ORS 316.187 (withholding), ORS 316.583 (estimated tax), other tax prepayment amounts and other refundable credit amounts, exceeds the taxes imposed by ORS chapters 314 and 316 for the tax year (reduced by any nonrefundable credits allowable for purposes of ORS chapter 316 for the tax year), the amount of the excess shall be refunded to the taxpayer as provided in ORS 316.502.

      (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, 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 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 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 shall be prorated or computed in a manner consistent with ORS 314.085. [2012 c.65 §2]

 

      Note: Section 3, chapter 65, Oregon Laws 2012, provides:

      Sec. 3. Section 2 of this 2012 Act [315.174] applies to tax years beginning on or after January 1, 2012, and before January 1, 2019. [2012 c.65 §3]

 

      315.175 [Repealed by 1965 c.26 §6]

 

      315.176 Bovine manure production or collection; rules. (1) As used in this section:

      (a) “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.

      (b) “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.

      (c) “Bovine manure” means, subject to subsection (2) of this section, cattle manure that is produced on Oregon farms.

      (d) “Bovine manure producer or collector” means a person that produces or collects bovine manure in Oregon that is used, in Oregon, as biofuel or to produce biofuel.

      (e) “Cattle” means cows, heifers, bulls, steers or calves.

      (2) The Director of Agriculture may adopt rules to define criteria, only as the criteria apply to bovine manure, to determine additional characteristics of bovine manure for purposes of this section.

      (3)(a) A bovine manure producer or 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 the collection of bovine manure 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 this section.

      (c) A credit under this section may be claimed only once for each wet ton of bovine manure.

      (4) The amount of the credit shall be calculated at a rate of $3.50 per wet ton, as certified under this section.

      (5)(a) The State Department of Agriculture may establish by rule procedures and criteria for determining the amount of the tax credit to be certified under this section. The department shall provide written certification to taxpayers that are eligible to claim the credit under this section.

      (b) The State Department of Agriculture 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 issuing certifications.

      (6) All fees collected under this section shall be deposited in the State Treasury to the credit of the Department of Agriculture Service Fund. Moneys deposited under this section are continuously appropriated to the department for the purpose of administering and enforcing the provisions of this section.

      (7) The Department of Revenue may require that the State Department of Agriculture provide information about the certification issued under this section, if required by ORS 315.058.

      (8) The amount of the credit claimed under this section for any tax year may not exceed the tax liability of the taxpayer.

      (9) Each bovine manure producer or collector shall maintain a record of the written certification of the amount of the tax credit under this section for a period of at least five years after the tax year in which the credit is claimed and provide the written certification to the Department of Revenue upon request.

      (10) The credit shall be claimed on a form prescribed by the Department of Revenue that contains the information required by the department.

      (11) 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.

      (12) 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.

      (13) A person that has earned a tax credit under this section may transfer the credit to a taxpayer subject to tax under ORS chapter 316, 317 or 318. The transfer must comply with ORS 315.056.

      (14) The Director of Agriculture may order the suspension or revocation of a certification issued under this section, as provided in ORS 315.061. [2017 c.610 §7; 2018 c.111 §1; 2019 c.483 §10]

 

      Note: Section 11, chapter 610, Oregon Laws 2017, provides:

      Sec. 11. Section 7 of this 2017 Act [315.176] applies to tax years beginning on or after January 1, 2018, and before January 1, 2022. [2017 c.610 §11]

 

      315.179 [2017 c.610 §8; repealed by 2019 c.483 §25]

 

      315.180 [Repealed by 1965 c.26 §6]

 

      315.181 [2017 c.610 §9; repealed by 2019 c.483 §25]

 

      315.184 Annual limitation on total amount of tax credits; proportionate reduction. The total amount certified by the State Department of Agriculture for tax credits for the production or collection of bovine manure under ORS 315.176 may not exceed $5 million for all taxpayers for any calendar year. If the department receives applications for the credit sufficient to exceed this amount, the department shall by rule proportionately reduce the amount of certified credits among all taxpayers applying for the credit. [2017 c.610 §10; 2018 c.111 §2]

 

      Note: 315.184 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 315 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      315.185 [Repealed by 1965 c.26 §6]

 

      315.190 [Repealed by 1965 c.26 §6]

 

      315.195 [Repealed by 1965 c.26 §6]

 

      315.200 [Repealed by 1965 c.26 §6]

 

CHILDREN AND FAMILIES; POVERTY RELIEF

 

      315.204 Dependent care assistance; rules. (1) A credit against the taxes otherwise due under ORS chapter 316 (or, if the taxpayer is a corporation, under ORS chapter 317 or 318) shall be allowed to a resident employer or to a corporation that is an employer for amounts paid or incurred during the taxable year by the employer for dependent care assistance actually provided to an employee if the assistance is furnished pursuant to a program which meets the requirements of section 129(d) of the Internal Revenue Code and if the employer has received a certificate as provided in subsection (2) of this section.

      (2)(a) Each employer that elects to receive a credit allowed under subsection (1) of this section must submit an application to the Department of Early Learning and Care each year the employer wishes to receive the credit. The Early Learning Council shall prescribe by rule the form of the application and the information required to be given on the application.

      (b) The Department of Early Learning and Care shall issue a certificate to each employer that submits an application under this subsection.

      (3) The amount of the credit allowed under subsection (1) of this section shall be 50 percent of the amount so paid or incurred by the employer during the taxable year but shall not exceed $2,500 of dependent care assistance actually provided to the employee.

      (4)(a) A credit against the taxes otherwise due under ORS chapter 316 (or, if the taxpayer is a corporation, under ORS chapter 317 or 318) shall be allowed to a resident employer, or to a corporation that is an employer, based upon amounts paid or incurred by the employer during the taxable year to provide information and referral services to assist employees of the employer employed within this state to obtain dependent care.

      (b) The amount of the credit allowed under this subsection shall be 50 percent of the amounts paid or incurred during the taxable year.

      (5) No amount paid or incurred during the taxable year of an employer in providing dependent care assistance to any employee shall qualify for the credit allowed under subsection (1) of this section if the amount was paid or incurred to an individual described in section 129(c)(1) or (2) of the Internal Revenue Code.

      (6) No amount paid or incurred by an employer to provide dependent care assistance to an employee shall qualify for the credit allowed under subsection (1) of this section if the amount paid or incurred is paid or incurred pursuant to a salary reduction plan or is not paid or incurred for services performed within this state.

      (7) If the credit allowed under subsection (1) or (4) of this section is claimed, the amount of any deduction allowed or allowable under ORS chapter 316, 317 or 318 for the amount that qualifies for the credit (or upon which the credit is based) shall be reduced by the dollar amount of the credit allowed. The election to claim a credit allowed under this section shall be made at the time of filing the tax return in accordance with any rules adopted by the Department of Revenue.

      (8) The amount upon which the credit allowed under subsection (1) of this section is based shall not be included in the gross income of the employee to whom the dependent care assistance is provided. However, the amount excluded from the income of an employee under this section shall not exceed the limitations provided in section 129(b) of the Internal Revenue Code. For purposes of ORS 316.162, with respect to an employee to whom dependent care assistance is provided, “wages” does not include any amount excluded under this subsection. Amounts excluded under this subsection shall not qualify as expenses for which a credit is allowed to the employee under ORS 316.078.

      (9) A nonresident shall be allowed the credit allowed under subsection (1) or (4) of this section. The credit shall be computed in the same manner and be subject to the same limitations as the credit granted to a resident.

      (10) If a change in the taxable year of the taxpayer occurs as described in ORS 314.085, or if the department terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed by this section shall be prorated or computed in a manner consistent with ORS 314.085.

      (11) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117.

      (12) Any tax credit otherwise allowable under this section which is not used by the taxpayer in a particular year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any credit remaining unused in such next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise any credit not used in that second succeeding tax year may be carried forward and used in the third succeeding tax year, and any credit not used in that third succeeding tax year may be carried forward and used in the fourth succeeding tax year, and any credit not used in that fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, but may not be carried forward for any tax year thereafter.

      (13) For purposes of the credit allowed under subsection (1) or (4) of this section:

      (a) The definitions and special rules contained in section 129(e) of the Internal Revenue Code shall apply to the extent applicable.

      (b) “Employer” means an employer carrying on a business, trade, occupation or profession in this state.

      (14) In the case of an on-site facility, in accordance with any rules adopted by the Department of Revenue, the amount upon which the credit allowed under subsection (1) of this section is based, with respect to any dependent, shall be based upon utilization and the value of the services provided. [1993 c.730 §22 (enacted in lieu of 316.134, 317.135 and 318.175); 1995 c.79 §163; 1997 c.839 §65; 2001 c.674 §14; 2013 c.624 §77; 2023 c.554 §47]

 

      Note: Section 10, chapter 682, Oregon Laws 1987, provides:

      Sec. 10. Except as provided in ORS 315.204 (12), ORS 315.204 applies to tax years beginning on or after January 1, 1988, and before January 1, 2016. [1987 c.682 §10; 1991 c.929 §3; 2001 c.674 §1; 2005 c.485 §1; 2009 c.913 §46]

 

      315.205 [Repealed by 1965 c.26 §6]

 

      315.208 Dependent care facilities. (1) A credit against the taxes otherwise due under ORS chapter 316 (or, if the taxpayer is a corporation that is an employer, under ORS chapter 317 or 318) is allowed to an employer, based upon costs actually paid or incurred by the employer, to acquire, construct, reconstruct, renovate or otherwise improve real property so that the property may be used primarily as a dependent care facility.

      (2) The credit allowed under this section shall be the least of:

      (a) $2,500 multiplied by the number of full-time equivalent employees employed by the employer (on the property or within such proximity to the property that any dependents of the employees may be cared for in the facility) on any date within the two years immediately preceding the end of the first tax year for which credit is first claimed;

      (b) Fifty percent of the cost of the acquisition, construction, reconstruction, renovation or other improvement; or

      (c) $100,000.

      (3) To qualify for the credit allowed under subsection (1) of this section:

      (a) The amounts paid or incurred by the employer for the acquisition, construction, reconstruction, renovation or other improvement to real property may be paid or incurred either:

      (A) To another to be used to acquire, construct, reconstruct, renovate or otherwise improve real property to the end that it may be used as a dependent care facility with which the employer contracts to make dependent care assistance payments which payments are wholly or partially entitled to exclusion from income of the employee for federal tax purposes under section 129 of the Internal Revenue Code; or

      (B) To acquire, construct, reconstruct, renovate or otherwise improve real property to the end that it may be operated by the employer, or a combination of employers, to provide dependent care assistance to the employees of the employer under a program or programs under which the assistance is, under section 129 of the Internal Revenue Code, wholly or partially excluded from the income of the employee.

      (b) The property must be in actual use as a dependent care facility on the last day of the tax year for which credit is claimed and dependent care services assisted by the employer must take place on the acquired, constructed, reconstructed, renovated or improved property and must be entitled to an exclusion (whole or partial) from the income of the employee for federal tax purposes under section 129 of the Internal Revenue Code on the last day of the tax year for which credit is claimed.

      (c) The person or persons operating the dependent care facility on the property acquired, constructed, reconstructed, renovated or improved must hold a certification (temporary or not) issued under ORS 329A.250 to 329A.450 by the Department of Early Learning and Care to operate the facility on the property on the last day of the tax year of any tax year in which credit under this section is claimed.

      (d) The dependent care facility acquired, constructed, reconstructed, renovated or otherwise improved must be located in Oregon. No credit shall be allowed under this section if the dependent care facility is not acquired, constructed, reconstructed, renovated or improved to accommodate six or more children.

      (e) The employer must meet any other requirements or furnish any information, including information furnished by the employees or person operating the dependent care facility, to the Department of Revenue that the department requires under its rules to carry out the purposes of this section.

      (f) The dependent care facility, the costs of the acquisition, construction, reconstruction, renovation or improvement upon which the credit granted under this section is based, must be placed in operation before January 1, 2002.

      (4) The total amount of the costs upon which the credit allowable under this section is based, and the total amount of the credit, shall be determined by the employer, subject to any rules adopted by the Department of Revenue, during the tax year in which the property acquired, constructed, reconstructed, renovated or otherwise improved is first placed in operation as a dependent care facility certified by the Department of Early Learning and Care under ORS 329A.250 to 329A.450. One-tenth of the total credit is allowable in that tax year and one-tenth of the total credit is allowable in each succeeding tax year, not to exceed nine tax years, thereafter. No credit shall be allowed under this section for any tax year at the end of which the dependent care facility is not in actual operation under a current certification (temporary or not) issued by the Department of Early Learning and Care nor shall any credit be allowed for any tax year at the end of which the employer is not providing dependent care assistance entitled to exclusion (whole or partial) from employee income for federal tax purposes under section 129 of the Internal Revenue Code for dependent care on the property. Any tax credit allowable under this section in a tax year may be carried forward in the same manner and to the same tax years as if it were a tax credit described in ORS 315.204.

      (5) Nothing in this section shall affect the computation of depreciation or basis of a dependent care facility. If a deduction is allowed for purposes of ORS chapter 316, 317 or 318 for the amounts paid or incurred upon which the credit under this section is based, the deduction shall be reduced by the dollar amount of the credit granted under this section.

      (6) For purposes of the credit allowed under this section:

      (a) The definitions and special rules contained in section 129(e) of the Internal Revenue Code shall apply to the extent applicable.

      (b) “Employer” means a resident, part-year resident or full-year nonresident employer carrying on a business, trade, occupation or profession in this state.

      (7) The Department of Revenue shall require that evidence that the person operating the dependent care facility on the date that the taxpayer’s tax year ends holds a current certification (temporary or otherwise) to operate the facility accompany the tax return on which any amount of tax credit granted under this section is claimed, or that such evidence be separately furnished. If the evidence is not so furnished, no credit shall be allowed for the tax year for which the evidence is not furnished. The Department of Early Learning and Care shall cooperate by making such evidence, in an appropriate form, available to the person operating the facility, if the person is currently certified (temporary or not) so that, if necessary, it may be made available to the taxpayer. [1993 c.730 §24 (enacted in lieu of 316.132, 317.114 and 318.160); 1997 c.325 §37; 1997 c.839 §66; 1999 c.743 §21; 2009 c.33 §18; 2013 c.624 §78; 2017 c.315 §20; 2022 c.27 §12; 2023 c.554 §48]

 

      315.210 [Repealed by 1965 c.26 §6]

 

      315.213 Contributions to Office of Child Care. (1) A credit against the taxes otherwise due under ORS chapter 316 or, if the taxpayer is a corporation, under ORS chapter 317 or 318 is allowed to a taxpayer for certified contributions made to the Department of Early Learning and Care under ORS 329A.706.

      (2) The amount of a tax credit available to a taxpayer for a tax year under this section shall equal the amount stated in the tax credit certificate received under ORS 329A.706.

      (3) The credit allowed under this section may not exceed the lesser of 50 percent of the amount contributed in the tax year or the tax liability of the taxpayer for the tax year in which the credit is claimed.

      (4) If the amount claimed as a credit under this section is allowed as a deduction for federal tax purposes, the amount allowed as a credit under this section shall be added to federal taxable income for Oregon tax purposes.

      (5) A credit under this section may be claimed by a nonresident or part-year resident without proration.

      (6) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a particular tax year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any credit remaining unused in the next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise any credit not used in that second succeeding tax year may be carried forward and used in the third succeeding tax year, and any credit not used in that third succeeding tax year may be carried forward and used in the fourth succeeding tax year, but may not be carried forward for any tax year thereafter.

      (7) The definitions in ORS 329A.700 apply to this section. [2001 c.674 §10; 2003 c.473 §8; 2013 c.624 §79; 2015 c.701 §20; 2023 c.554 §49]

 

      Note: Section 13, chapter 674, Oregon Laws 2001, provides:

      Sec. 13. ORS 315.213 applies to tax years beginning on or after January 1, 2002, and before January 1, 2022. [2001 c.674 §13; 2003 c.473 §9; 2007 c.880 §1; 2009 c.913 §47; 2015 c.701 §25]

 

      315.215 [Repealed by 1965 c.26 §6]

 

      315.234 [1993 c.730 §26 (enacted in lieu of 316.133 and 317.134); 1995 c.54 §6; 1995 c.746 §49; repealed by 2005 c.94 §81]

 

      315.237 Employee and dependent scholarship program payments. (1) As used in this section, “qualified scholarship” means a scholarship that meets the criteria set forth or incorporated into the letter of employee and dependent scholarship program certification issued under ORS 348.618.

      (2) A credit against the taxes otherwise due under ORS chapter 316 is allowed to a resident employer (or, if the taxpayer is a corporation that is an employer, under ORS chapter 317 or 318) that has received:

      (a) Program certification under ORS 348.618; and

      (b) Tax credit certification under ORS 348.621 for the calendar year in which the tax year of the taxpayer begins.

      (3) The amount of the credit allowed to a taxpayer under this section shall equal 50 percent of the amount of qualified scholarship funds actually paid to or on behalf of qualified scholarship recipients during the tax year.

      (4) The credit allowed under this section may not exceed the tax liability of the taxpayer for the tax year.

      (5) The credit allowed to a taxpayer for a tax year under this section may not exceed $50,000.

      (6) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a particular year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any credit remaining unused in the next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise any credit not used in that second succeeding tax year may be carried forward and used in the third succeeding tax year, and any credit not used in that third succeeding tax year may be carried forward and used in the fourth succeeding tax year, and any credit not used in that fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, but may not be carried forward for any tax year thereafter.

      (7) In the case of a credit allowed under this section for purposes of ORS chapter 316:

      (a) A nonresident shall be allowed the credit under this section in the proportion provided in ORS 316.117.

      (b) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117.

      (c) If a change in the taxable year of a taxpayer occurs as described in ORS 314.085, or if the Department of Revenue terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed under this section shall be prorated or computed in a manner consistent with ORS 314.085.

      (8) The credit shall be claimed on the form and in the time and manner in which the department shall prescribe. If the taxpayer is required to do so by the department, the taxpayer shall file a copy of the letter of tax credit certification with the taxpayer’s return for the tax year in which a credit under this section is claimed. [2001 c.475 §8; 2011 c.637 §102; 2019 c.384 §10]

 

      Note: Section 24, chapter 913, Oregon Laws 2009, provides:

      Sec. 24. Except as provided in ORS 315.237 (6), a credit may not be claimed under ORS 315.237 for tax years beginning on or after January 1, 2030. [2009 c.913 §24; 2013 c.750 §17; 2019 c.579 §29; 2023 c.490 §11]

 

      315.254 [1993 c.730 §28 (enacted in lieu of 316.151, 317.141 and 318.085); repealed by 2009 c.33 §19]

 

      315.255 [Repealed by 1965 c.26 §6]

 

      315.259 [1995 c.648 §2; 1997 c.325 §38; 1999 c.59 §78; 1999 c.741 §1; 2012 c.37 §83; repealed by 2013 c.176 §7]

 

      315.260 [Repealed by 1965 c.26 §6]

 

      315.262 Working family child care; rules. (1) As used in this section:

      (a) “Child care” means care provided to a qualifying child of the taxpayer for the purpose of allowing the taxpayer to be gainfully employed, to seek employment or to attend school on a full-time or part-time basis, except that the term does not include care provided by:

      (A) The child’s parent or guardian, unless the care is provided in a certified or registered child care facility; or

      (B) A person who has a relationship to the taxpayer that is described in section 152(a) of the Internal Revenue Code who has not yet attained 19 years of age at the close of the tax year.

      (b) “Child care expenses” means the costs associated with providing child care to a qualifying child of a qualified taxpayer.

      (c) “Disability” means a physical or cognitive condition that results in a person requiring assistance with activities of daily living.

      (d) “Earned income” has the meaning given that term in section 32 of the Internal Revenue Code.

      (e) “Qualified taxpayer” means a taxpayer:

      (A) Who is an Oregon resident with at least $6,000 of earned income for the tax year or who is a nonresident of Oregon with at least $6,000 of earned income from Oregon sources for the tax year;

      (B) With federal adjusted gross income for the tax year that does not exceed 250 percent of the federal poverty level;

      (C) With Oregon adjusted gross income for the tax year that does not exceed 250 percent of the federal poverty level; and

      (D) Who does not have more than the maximum amount of disqualified income under section 32(i) of the Internal Revenue Code that is allowed to a taxpayer entitled to the earned income tax credit for federal tax purposes.

      (f) “Qualifying child” has the meaning given that term in section 152(c) of the Internal Revenue Code, determined without regard to section 152(c)(1)(D) of the Internal Revenue Code or section 152(e) of the Internal Revenue Code, except that it is limited to an individual who is under 13 years of age, or who is a child with a disability, as that term is defined in ORS 316.099.

      (2) A taxpayer is not disqualified from claiming the credit under this section solely because the taxpayer’s spouse has a disability, if the disability is such that it prevents the taxpayer’s spouse from providing child care, being gainfully employed, seeking employment and attending school. The Department of Revenue may require that a physician verify the existence of the disability and its severity.

      (3) A qualified taxpayer shall be allowed a credit against the taxes otherwise due under ORS chapter 316 equal to the applicable percentage of the qualified taxpayer’s child care expenses (rounded to the nearest $50).

      (4) The applicable percentage to be used in calculating the amount of the credit provided in this section shall be determined in accordance with the following table:

______________________________________________________________________________

 

Applicable      Greater of Oregon

Percentage     Adjusted Gross Income or

      Federal Adjusted

      Gross Income, as Percent

      of Federal Poverty Level

 

 

 

      40  200 or less

      36  Greater than 200 and less than

            or equal to 210

      32  Greater than 210 and less than

            or equal to 220

      24  Greater than 220 and less than

            or equal to 230

      16  Greater than 230 and less than

            or equal to 240

      8    Greater than 240 and less than

            or equal to 250

      0    Greater than 250 percent

            of federal poverty level

 

______________________________________________________________________________

      (5) The department may:

      (a) Adopt rules for carrying out the provisions of this section; and

      (b) Prescribe the form used to claim a credit and the information required on the form. The form may provide for verification of an individual’s disability by a physician, if applicable, as described in subsection (2) of this section.

      (6) In the case of a credit allowed under this section:

      (a) A nonresident shall be allowed the credit under this section in the proportion provided in ORS 316.117.

      (b) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117.

      (c) If a change in the taxable year of a taxpayer occurs as described in ORS 314.085, or if the Department of Revenue terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed under this section shall be prorated or computed in a manner consistent with ORS 314.085.

      (d) In the case of a qualified taxpayer who is married, a credit shall be allowed under this section only if:

      (A) The taxpayer files a joint return;

      (B) The taxpayer files a separate return and is legally separated or subject to a separate maintenance agreement; or

      (C) The taxpayer files a separate return and the taxpayer and the taxpayer’s spouse reside in separate households on the last day of the tax year with the intent of remaining in separate households in the future.

      (7) If the amount allowable as a credit under this section, when added to the sum of the amounts allowable as payment of tax under ORS 316.187 (withholding), ORS 316.583 (estimated tax), other tax prepayment amounts and other refundable credit amounts, exceeds the taxes imposed by ORS chapters 314 and 316 for the tax year (reduced by any nonrefundable credits allowable for purposes of ORS chapter 316 for the tax year), the amount of the excess shall be refunded to the taxpayer as provided in ORS 316.502.

      (8)(a) The minimum amount of earned income a taxpayer must earn in order to be a qualified taxpayer shall be adjusted for tax years beginning in each calendar year by multiplying $6,000 by the ratio of the monthly averaged U.S. City Average Consumer Price Index for the 12 consecutive months ending August 31 of the prior calendar year over the monthly averaged index for the second quarter of the calendar year 1998.

      (b) As used in this subsection, “U.S. City Average Consumer Price Index” means the U.S. City Average Consumer Price Index for All Urban Consumers (All Items) as published by the Bureau of Labor Statistics of the United States Department of Labor.

      (c) If any adjustment determined under paragraph (a) of this subsection is not a multiple of $50, the adjustment shall be rounded to the nearest multiple of $50.

      (d) Notwithstanding paragraphs (a) to (c) of this subsection, the adjusted minimum amount of earned income a taxpayer must earn may not exceed the amount an individual would earn if the individual worked 1,040 hours at the minimum wage established under ORS 653.025 and in effect on January 1 of the calendar year in which begins the tax year of the taxpayer, rounded to the next lower multiple of $50. [1997 c.692 §2; 1999 c.998 §1; 2001 c.114 §32; 2001 c.660 §10; 2001 c.867 §1; 2003 c.46 §33; 2003 c.473 §11; 2005 c.49 §1; 2005 c.832 §25; 2007 c.70 §83; 2007 c.868 §1; 2009 c.909 §41]

 

      Note: Section 3, chapter 868, Oregon Laws 2007, provides:

      Sec. 3. ORS 315.262 applies to tax years beginning before January 1, 2016. [2007 c.868 §3; 2009 c.913 §45; 2015 c.480 §7]

 

      315.264 Working family household and dependent care expenses; rules. (1)(a) A credit against the tax otherwise due under ORS chapter 316 shall be allowed a taxpayer in an amount equal to a percentage of employment-related expenses of a type allowable as a credit pursuant to section 21 of the Internal Revenue Code, notwithstanding the limitation imposed by section 21(c) of the Internal Revenue Code, and limited as provided in paragraph (c) of this subsection.

      (b) The credit allowed under this section may be claimed for expenses for care of a qualifying individual that allow a nonmarried taxpayer to seek employment or to attend school as a degree-seeking student enrolled on a full-time or part-time basis.

      (c) The employment-related expenses for which a credit is claimed under this section may not exceed the least of:

      (A) The combination of earned income taxable by Oregon and reportable on the taxpayer’s return and imputed income;

      (B) The lesser amount, attributable to either spouse, of the combination of the spouse’s imputed income and the spouse’s earned income subject to taxation by Oregon, if reportable on a joint return; or

      (C) $12,000 for a taxpayer for which there is one qualifying individual, or $24,000 for a taxpayer for which there are two or more qualifying individuals.

      (d) The limitations in paragraph (c)(C) of this subsection shall be reduced by the aggregate amount excludable under section 129 of the Internal Revenue Code for the tax year.

      (2) The applicable percentage described in subsection (1) of this section shall be determined in accordance with the following table:

______________________________________________________________________________

 

Greater of Federal

or Oregon Adjusted

Gross Income, as         Applicable percentage based on age of youngest

Percentage of Federal qualifying individual on January 1 of tax year

Poverty Level

______________________________________________________________________________

 

                        At least 6 years

                         but less than

            At least            13, or at least

            3 years 13 but less       18 years or

      Greater      Less than         Under 3           but less            than 18 if         older if

      than           or equal to       years    than 6  disabled           disabled

 

      0% 10%     10%     8%       5%       5%

      10%           20%     20%     18%     15%     5%

      20%           30%     30%     28%     25%     10%

      30%           40%     40%     38%     35%     20%

      40%           50%     50%     48%     45%     30%

      50%           60%     55%     53%     50%     35%

      60%           70%     60%     58%     55%     40%

      70%           80%     65%     63%     60%     45%

      80%           90%     70%     68%     65%     50%

      90%           110%   75%     73%     70%     55%

      110%         120%   71%     69%     66%     50%

      120%         130%   66%     64%     61%     45%

      130%         140%   61%     59%     56%     39%

      140%         150%   55%     53%     50%     33%

      150%         160%   50%     48%     45%     28%

      160%         200%   47%     45%     42%     25%

      200%         210%   45%     43%     40%     22%

      210%         220%   40%     38%     35%     20%

      220%         230%   35%     33%     30%     15%

      230%         240%   30%     28%     25%     10%

      240%         250%   20%     18%     15%     5%

      250%         260%   10%     8%       5%       5%

      260%         280%   6%       6%       4%       4%

      280%         300%   4%       4%       4%       4%

      300%         -           0%       0%       0%       0%

 

______________________________________________________________________________

 

      (3) The applicable percentage for a household in excess of eight members shall be calculated as if for a household size of eight members.

      (4) The credit under this section is not allowed to a taxpayer with federal adjusted gross income or Oregon adjusted gross income, whichever is greater, in excess of 300 percent of the federal poverty level.

      (5) For the purposes of calculating the allowed amount of credit applicable to a student:

      (a) Imputed income shall equal $1,000 per qualified month per student for a student for whom there is one qualifying individual, or $2,000 per qualified month per student for a student for which there are two or more qualifying individuals.

      (b) A qualified month is any month in which the student is a full-time or part-time student and attending school, or a summer month in a calendar year in which the student was enrolled in a degree-seeking program in both the spring and fall academic terms.

      (c) The school ratio shall equal 100 percent for a month for which a student is qualified for student financial aid as a full-time student, and 70 percent for a month for which a student is qualified for student financial aid as a part-time student.

      (d) If a student is a part-time student for a portion of the year and a full-time student for the balance of the year, the credit shall be prorated. The school ratio applicable to the summer months, if any, shall be the school ratio applicable to the immediately preceding spring month.

      (6) Notwithstanding subsections (2) and (3) of this section, for a student with adjusted gross income as a percentage of the federal poverty level that is less than or equal to 110 percent, the amount of credit shall be the greater of:

      (a) The credit calculated using subsection (2) of this section; or

      (b) The product of the applicable percentage, as shown in subsection (2) of this section, corresponding to an adjusted gross income percentage of 110 percent, multiplied by:

      (A) The lesser of expenses for care of a qualifying individual or imputed income; and

      (B) The school ratio.

      (7) In order to ensure compliance with the eligibility requirements of the credit allowed under this section, the Department of Revenue shall be afforded access to utilization data maintained by the Department of Early Learning and Care in its administration of the Employment Related Day Care subsidy program.

      (8) The Department of Revenue may assess a penalty in an amount not to exceed 25 percent of the amount of credit claimed by the taxpayer against any taxpayer who knowingly claims or attempts to claim any amount of credit under this section for which the taxpayer is ineligible, or against any individual who knowingly assists another individual in claiming any amount of credit for which the individual is ineligible.

      (9) The Department of Revenue may adopt rules for carrying out the provisions of this section and prescribe the form used to claim a credit and the information required on the form.

      (10) A nonresident individual shall be allowed the credit computed in the same manner and subject to the same limitations as the credit allowed a resident by subsection (1) of this section. However, the credit shall be prorated using the proportion provided in ORS 316.117.

      (11) If a change in the taxable year of a taxpayer occurs as described in ORS 314.085, or if the Department 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.

      (12) 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.

      (13) If the amount allowable as a credit under this section, when added to the sum of the amounts allowable as payment of tax under ORS 316.187 or 316.583, other tax prepayment amounts and other refundable credit amounts, exceeds the taxes imposed by ORS chapters 314 and 316 for the tax year after application of any nonrefundable credits allowable for purposes of ORS chapter 316 for the tax year, the amount of the excess shall be refunded to the taxpayer as provided in ORS 316.502.

      (14) Any amount that is refunded to the taxpayer under this section and that is in excess of the tax liability of the taxpayer does not bear interest. [2015 c.701 §3; 2017 c.638 §2; 2018 c.111 §7; 2021 c.525 §5a; 2021 c.631 §75]

 

      Note: Section 5, chapter 701, Oregon Laws 2015, provides:

      Sec. 5. (1) ORS 315.264 applies to tax years beginning on or after January 1, 2016, and before January 1, 2028.

      (2) The amendments to ORS 315.264 by section 5a of this 2021 Act apply to tax years beginning on or after January 1, 2022, and before January 1, 2028. [2015 c.701 §5; 2021 c.525 §5]

 

      315.265 [Repealed by 1965 c.26 §6]

 

      315.266 Earned income; use of individual taxpayer identification number in alternative; rules. (1)(a) In addition to any other credit available for purposes of ORS chapter 316, an eligible resident individual shall be allowed a credit against the tax otherwise due under ORS chapter 316 for the tax year in an amount equal to nine percent of the earned income credit allowable to the individual for the same tax year under section 32 of the Internal Revenue Code.

      (b) Notwithstanding paragraph (a) of this subsection, for a taxpayer with a dependent under the age of three at the close of the tax year, the credit allowed under this section shall be in an amount equal to 12 percent of the earned income credit allowable to the individual for the same tax year under section 32 of the Internal Revenue Code.

      (2) A resident individual may claim a credit under this section, using either a Social Security number or an individual taxpayer identification number, if, but for section 32(m) of the Internal Revenue Code, the individual would otherwise be eligible to claim a credit under section 32 of the Internal Revenue Code. The credit allowed as provided in this subsection shall equal the percentage, as stated in subsection (1) of this section, of the amount that would be allowed on a federal return, based on the amount of the individual’s earned income and the other provisions of section 32 of the Internal Revenue Code.

      (3) An eligible nonresident individual shall be allowed the credit computed in the same manner and subject to the same limitations as the credit allowed a resident by subsection (1) or (2) of this section. However, the credit shall be prorated using the proportion provided in ORS 316.117.

      (4) 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.

      (5) 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.

      (6) If the amount allowable as a credit under this section, when added to the sum of the amounts allowable as payment of tax under ORS 316.187 or 316.583, other tax prepayment amounts and other refundable credit amounts, exceeds the taxes imposed by ORS chapters 314 and 316 for the tax year after application of any nonrefundable credits allowable for purposes of ORS chapter 316 for the tax year, the amount of the excess shall be refunded to the taxpayer as provided in ORS 316.502.

      (7) The Department of Revenue may adopt rules for purposes of this section, including but not limited to rules relating to proof of eligibility, the furnishing of information regarding the federal earned income credit claimed by the taxpayer for the tax year and policies and guidelines for the determination of the amount of credit allowed under subsection (2) of this section.

      (8) Refunds attributable to the earned income credit allowed under this section do not bear interest. [1997 c.692 §3; 2001 c.114 §33; 2001 c.660 §56; 2003 c.77 §12; 2005 c.832 §§54,57,59; 2007 c.880 §2; 2013 s.s. c.5 §6d; 2016 c.98 §1; 2019 c.579 §31; 2021 c.525 §49]

 

      Note: Section 6, chapter 880, Oregon Laws 2007, provides:

      Sec. 6. ORS 315.266 applies to tax years beginning before January 1, 2026. [2007 c.880 §6; 2013 c.750 §1; 2019 c.579 §32]

 

      Note: Section 32a, chapter 579, Oregon Laws 2019, provides:

      Sec. 32a. The amendments to ORS 315.266 by section 31 of this 2019 Act apply to tax years beginning on or after January 1, 2020, and before January 1, 2026. [2019 c.579 §32a]

 

      315.270 [Repealed by 1965 c.26 §6]

 

      315.271 Individual development accounts. (1) A credit against taxes otherwise due under ORS chapter 316, 317 or 318 shall be allowed for donations to a fiduciary organization for distribution to individual development accounts established under ORS 458.685. The credit shall equal a percentage of the taxpayer’s donation amount, as determined by the fiduciary organization, but not to exceed 90 percent of any donation amount. A credit may be claimed for a donation made not later than April 15 following December 31 of the tax year for which the credit is allowed. To qualify for a credit under this section, donations to a fiduciary organization must be made prior to April 15, 2028.

      (2) If a credit allowed under this section is claimed, the amount upon which the credit is based that is allowed or allowable as a deduction from federal taxable income under section 170 of the Internal Revenue Code shall be added to federal taxable income in determining Oregon taxable income. As used in this subsection, the amount upon which a credit is based is the allowed credit divided by the applicable percentage, as determined by the fiduciary organization.

      (3) The allowable tax credit that may be used in any one tax year shall not exceed the tax liability of the taxpayer.

      (4) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a particular year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any tax credit remaining unused in the next succeeding tax year may be carried forward and used in the second succeeding tax year. Any tax credit not used in the second succeeding tax year may be carried forward and used in the third succeeding tax year, but may not be carried forward for any tax year thereafter.

      (5) The total credits allowed to all taxpayers in any tax year under this section and ORS 458.690 may not exceed $7.5 million. The total credit allowed to a taxpayer in any tax year under this section and ORS 458.690 may not exceed $500,000. [1999 c.1000 §12; 2001 c.648 §1; 2007 c.765 §1; 2009 c.913 §48; 2015 c.701 §8; 2016 c.29 §2; 2019 c.579 §49a; 2021 c.525 §6]

 

      Note: Section 9, chapter 765, Oregon Laws 2007, provides:

      Sec. 9. (1) A credit may not be claimed under ORS 315.271 and 458.690 for tax years beginning on or after January 1, 2030.

      (2) The amendments to ORS 315.271 by section 6, chapter 525, Oregon Laws 2021, apply to tax years beginning on or after January 1, 2022, and before January 1, 2030. [2007 c.765 §9; 2015 c.701 §7; 2021 c.525 §7; 2023 c.490 §16]

 

      315.272 Certain individual development account withdrawals. (1) An individual taxpayer shall be allowed a credit against the taxes that are otherwise due under ORS chapter 316 if, during the tax year:

      (a) The taxpayer purchased a primary residence;

      (b) All or a part of the usual and reasonable settlement, financing or other closing costs for the purchase were funded from a withdrawal from an individual development account in which the taxpayer is the account holder; and

      (c) An approved purpose of the account is the purpose described in ORS 458.685 (1)(d).

      (2) The amount of the tax credit shall be the least of:

      (a) The amount of the withdrawal from the individual development account that is for the purpose described in ORS 458.685 (1)(d);

      (b) The amount of usual and reasonable settlement, financing and other closing costs incurred in the purchase of the primary residence;

      (c) $2,000; or

      (d) The tax liability of the taxpayer.

      (3) A tax credit allowed under this section that is unused may not be carried forward to a succeeding tax year.

      (4) A tax credit under this section may be claimed by a nonresident or a part-year resident without proration.

      (5) The definitions in ORS 458.670 apply to this section. [2005 c.575 §2; 2017 c.315 §21]

 

      Note: Section 49, chapter 913, Oregon Laws 2009, provides:

      Sec. 49. A credit may not be claimed under ORS 315.272 for tax years beginning on or after January 1, 2016. [2009 c.913 §49]

 

      315.273 Qualifying child of taxpayer. (1) As used in this section:

      (a) “Dependent” means an individual who is under the age of six years at the close of the tax year and who is a dependent of a taxpayer as described in section 152(a) of the Internal Revenue Code, determined without regard to section 152(b)(3) of the Internal Revenue Code.

      (b) “Qualifying child” has the meaning given that term in section 152(c) of the Internal Revenue Code.

      (c) “Qualifying income limit” means:

      (A) For a taxpayer other than a taxpayer described in subparagraph (B) of this paragraph, adjusted gross income, as defined in section 62 of the Internal Revenue Code, as modified using Oregon subtractions and additions, but with losses of a taxpayer added back, to the extent that those losses exceed $20,000; or

      (B) For a nonresident or part-year resident, the greater of the amount determined under subparagraph (A) of this paragraph, or adjusted gross income, as defined in section 62 of the Internal Revenue Code.

      (2) A taxpayer shall be allowed a credit against the tax otherwise due under ORS chapter 316 for the tax year, with an amount allowed for each dependent of the taxpayer who is a qualifying child with respect to the taxpayer, not to exceed five properly claimed dependents per tax return. The credit shall be allowed as provided in subsections (3) and (4) of this section. A taxpayer may claim a credit under this section using an individual taxpayer identification number and may claim it for dependents using individual taxpayer identification numbers.

      (3) The credit under this section:

      (a) Shall be in an amount of $1,000 per dependent of the taxpayer, but, if the taxpayer has a qualifying income limit in excess of $25,000, regardless of the type of income tax return filed by the taxpayer, the total amount of the credit shall be reduced as provided in subsection (4) of this section.

      (b) May not be claimed if the percentage calculated in subsection (4) of this section is greater than or equal to 100 percent.

      (c) May not be claimed by a married taxpayer who files a separate return.

      (4) If a reduction under subsection (3) of this section is required, the amount by which the credit shall be reduced is computed by multiplying the amount otherwise available under subsection (3) of this section by a percentage. The percentage is computed by dividing, by 5,000, the amount by which the taxpayer’s qualifying income limit exceeds $25,000.

      (5)(a) For tax years beginning in each calendar year, the Department of Revenue shall adjust the dollar amounts of the credit and of the income threshold set forth in subsections (3) and (4) of this section by multiplying each dollar amount by the cost-of-living adjustment for the calendar year.

      (b) For purposes of paragraph (a) of this subsection, the cost-of-living adjustment for any calendar year is the percentage (if any) by which the monthly averaged U.S. City Average Consumer Price Index for the 12 consecutive months ending August 31 of the prior calendar year exceeds the monthly averaged index for the second quarter of the calendar year 2022.

      (c) As used in this subsection, “U.S. City Average Consumer Price Index” means the U.S. City Average Consumer Price Index for All Urban Consumers (All Items) as published by the Bureau of Labor Statistics of the United States Department of Labor.

      (d) If any increase determined under paragraph (a) of this subsection is not a multiple of $50, the increase shall be rounded to the next lower multiple of $50.

      (6)(a) If the amount allowable as a credit under this section, when added to the sum of the amounts allowable as payment of tax under ORS 316.187 or 316.583, other tax prepayment amounts and other refundable credit amounts, exceeds the taxes imposed by ORS chapters 314 and 316 for the tax year after application of any nonrefundable credits allowable for purposes of ORS chapter 316 for the tax year, the amount of the excess shall be refunded to the taxpayer as provided in ORS 316.502.

      (b) The credit under this section shall be computed after the allowance of any other credit or offset against tax liability.

      (7) A nonresident or part-year resident shall be allowed the credit under this section in the same manner and, aside from the taxpayer’s applicable qualifying income limit, subject to the same limitations as a resident. However, the credit shall be prorated using the proportion provided in ORS 316.117.

      (8) If a change in the tax year of a taxpayer occurs as described in ORS 314.085, or if the Department of Revenue terminates the taxpayer’s tax year under ORS 314.440, the credit allowed by this section shall be prorated or computed in a manner consistent with ORS 314.085.

      (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.

      (10) Refunds attributable to the child tax credit allowed under this section do not bear interest. [2023 c.538 §2]

 

      315.274 [1999 c.1088 §2; 2001 c.660 §57; 2003 c.77 §13; repealed by 2011 c.83 §13]

 

      315.275 [Repealed by 1965 c.26 §6]

 

      315.276 Quarterly payments based on annual advance amount. (1) The Department of Revenue shall establish by rule a program for making quarterly payments to taxpayers that, in the aggregate during any calendar year, equal the annual advance amount determined under subsection (2) of this section with respect to a taxpayer for the calendar year. Except as provided in subsection (2)(c)(B) of this section, the periodic payments made to any taxpayer for any calendar year shall be in equal amounts. Quarterly payments under this section may be made only to taxpayers confirmed by the department to be Oregon residents.

      (2)(a) Except as otherwise provided in this subsection, the annual advance amount applicable to a taxpayer for any calendar year shall be calculated as 50 percent of the amount that would be allowed under ORS 315.273 for the tax year beginning in that calendar year assuming the following conditions:

      (A) The status of the taxpayer as eligible for the credit allowed under ORS 315.273 is determined with respect to the reference tax year;

      (B) The taxpayer’s modified adjusted gross income for the tax year is equal to the taxpayer’s modified adjusted gross income for the reference tax year;

      (C) The only children of the taxpayer for the tax year are qualifying children properly claimed on the taxpayer’s tax return for the reference tax year; and

      (D) The ages of the taxpayer’s children and the status of the children as qualifying children are determined for the tax year by taking into account the passage of time since the reference tax year.

      (b) Except as provided in paragraph (c)(A) of this subsection, the taxpayer’s reference tax year shall be determined, with respect to any taxpayer for any calendar year, the taxpayer’s tax year beginning in the preceding calendar year or, in the case of taxpayer who did not file a tax return for the tax year, the taxpayer’s tax year beginning in the second preceding calendar year.

      (c)(A) The department may modify, during any calendar year, the annual advance amount with respect to any taxpayer for the calendar year to take into account:

      (i) A tax return filed by the taxpayer during the calendar year and the tax year to which the return relates may be taken into account as the reference tax year; and

      (ii) Any other information provided by the taxpayer to the department or otherwise available to the department that allows the department to determine payments under paragraph (a) of this subsection that, in the aggregate during any tax year of the taxpayer, more closely total the department’s estimate of the amount treated as allowed under ORS 315.273 for the tax year of the taxpayer.

      (B) In the case of any modification of the annual advance amount under subparagraph (A) of this paragraph, the department may adjust the amount of any periodic payment made after the date of the modification to properly take into account the amount by which any periodic payment made before the date was greater than or less than the amount that the payment would have been on the basis of the annual advance amount as so modified.

      (d) If information contained in the taxpayer’s tax return for the reference tax year does not establish the eligibility status of the taxpayer under ORS 315.273, the department shall, for purposes of paragraph (a)(A) of this subsection, determine the status based on information known to the department.

      (e) A child shall not be taken into account in determining the annual advance amount under paragraph (a) of this subsection if the death of the child is known to the department as of the beginning of the calendar year for which the estimate under paragraph (a) of this subsection is made.

      (3) The department shall establish a system that allows taxpayers to:

      (a) Elect not to receive payments under this section; and

      (b) Provide information to the department which would be relevant to a modification under subsection (2)(c)(A) of this section of the annual advance amount, including information regarding:

      (A) A change in the number of the taxpayer’s qualifying children, including by reason of the birth of a child;

      (B) A change in the taxpayer’s marital status;

      (C) A significant change in the taxpayer’s income; and

      (D) Any other factor which the department may consider.

      (4) Not later than January 31 of the calendar year following any calendar year during which the department makes one or more payments to any taxpayer under this section, the department shall provide the taxpayer with a written notice of the aggregate amount of the payments made under this section to the taxpayer during the calendar year, and other information as the department determines appropriate.

      (5) A quarterly payment under this section may not be made if the amount of the quarterly payment is calculated to be less than $25. [2023 c.538 §3]

 

      315.278 Reconciliation of quarterly payment amounts. (1) The Department of Revenue, in reviewing the personal income tax returns of all individuals who have received payments under ORS 315.276, shall:

      (a) Confirm that, for the tax year during which payments began as provided under ORS 315.279, the taxpayer has claimed a credit under ORS 315.273;

      (b) Reconcile the amounts claimed under ORS 315.273 against the amounts disbursed under ORS 315.276 and against the taxpayer’s underlying tax liability, if imposed; and

      (c) Determine whether there is a difference in amounts claimed versus amounts disbursed and assess a deficiency against the taxpayer or provide a refund.

      (2) If a taxpayer who has received any advance payments established under ORS 315.276 does not claim a credit under ORS 315.273, or does not provide sufficient substantiation of eligibility for the claimed amount, the Department of Revenue shall notify the taxpayer of any overpayment attributable to the installment payments made under ORS 315.276.

      (3) The Department of Revenue shall discontinue payments under ORS 315.276 if the department discovers that the taxpayer:

      (a) Has moved out of this state since first receiving payments;

      (b) Has changed or is likely to change tax filing status; or

      (c) Is not reasonably likely to qualify for the tax credit under ORS 315.273 for the next upcoming tax year for which advance payments are otherwise to be made.

      (4) Except as otherwise provided in this section and ORS 315.273 and 315.276 or where the context requires otherwise, the provisions of ORS chapters 305 and 314 as to the audit and examination of returns, periods of limitation, determination of and notices of deficiencies, assessments, collections, liens, delinquencies, claims for refund and refunds, conferences, appeals to the Oregon Tax Court, stays of collection pending appeal, confidentiality of returns and the penalties relative thereto, and the procedures relating thereto, apply to the determinations of taxes, penalties and interest under this section and ORS 315.273 and 315.276. [2023 c.538 §3a]

 

      315.279 Commencement of quarterly payments. The Department of Revenue shall begin quarterly payments under ORS 315.276 during the second year immediately following the year in which ORS 315.276 becomes operative under section 5, chapter 538, Oregon Laws 2023, and shall continue to make quarterly payments in each year thereafter, provided that the payments continue not to affect eligibility for federal public assistance programs, under a waiver described in section 6, chapter 538, Oregon Laws 2023, or another condition described in section 5 (2), chapter 538, Oregon Laws 2023. [2023 c.538 §4]

 

      Note: Sections 1, 5 and 11, chapter 538, Oregon Laws 2023, provide:

      Sec. 1. Sections 2 to 5 of this 2023 Act [315.273 to 315.279 and section 5] are added to and made a part of ORS chapter 315. [2023 c.538 §1]

      Sec. 5. Section 3 of this 2023 Act [315.276] becomes operative 30 days after whichever of the following occurs first:

      (1) The United States Department of Agriculture approves the request for waiver under section 6 of this 2023 Act; or

      (2) The Department of Revenue receives notice that the requirement to include recurring or nonrecurring state payments of income tax refunds, rebates or credits in income-based eligibility determinations for any federal public assistance program is abrogated as a consequence of:

      (a) The enactment of federal legislation;

      (b) A decision by a controlling court from which there is no further right of appeal; or

      (c) Publication of federal regulations, guidelines, memoranda or any other official action taken by a federal agency with the authority to alter income-based eligibility determinations for federal public assistance programs. [2023 c.538 §5]

      Sec. 11. Section 2 of this 2023 Act [315.273] applies to tax years beginning on or after January 1, 2023, and before January 1, 2029. [2023 c.538 §11]

 

      315.280 [Amended by 1953 c.148 §3; repealed by 1965 c.26 §6]

 

      315.281 Definitions for credit allowed for sale of publicly supported housing. As used in ORS 315.281 to 315.291:

      (1) “Affordability restriction” has the meaning given that term in ORS 456.250.

      (2) “Identity of interest” means a relationship in which a purchaser and seller are related by blood or marriage or are affiliated through a business relationship.

      (3) “Publicly supported housing” has the meaning given that term in ORS 456.250.

      (4) “Qualifying sale” means any sale of publicly supported housing to a purchaser that enters into a recorded affordability restriction agreement governing the use of the housing that:

      (a) Applies to publicly supported housing on or before the expiration of the right of first refusal under ORS 456.262 (3)(d); and

      (b) Adopts affordability restrictions for a period of at least 30 years that:

      (A) For dwelling units of the participating property that were subject to an expired or expiring affordability restriction, extend those expired or expiring restrictions, except in cases where the affordability restriction was based on a project-based rental assistance program which has been terminated by the issuing agency; or

      (B) For any other dwelling units, require rental rates for the housing to be affordable under federal rental affordability standards to households earning 80 percent of the area median income. [2023 c.490 §18]

 

      315.283 Sale of publicly supported housing. (1) A taxpayer is allowed a credit against the taxes otherwise due under ORS chapter 316 or, if the taxpayer is a corporation, under ORS chapter 317 or 318 for a qualifying sale in Oregon of publicly supported housing during the tax year. The amount of the credit allowed under this section may not exceed:

      (a) For housing owned by the taxpayer for at least five years, 2.5 percent of the lesser of the housing’s sale price or the appraisal under ORS 315.286 (2)(e); or

      (b) For housing owned by the taxpayer for at least 10 years, five percent of the lesser of the housing’s sale price or the appraisal under ORS 315.286 (2)(e).

      (2) In order to claim a credit under this section, a taxpayer must:

      (a) Lack identity of interest with the purchaser; and

      (b) Receive certification of a credit under ORS 315.286 (6) and submit the certification to the Department of Revenue upon request of the department.

      (3) The Department of Revenue may:

      (a) Adopt rules for carrying out the provisions of this section; and

      (b) Prescribe the form used to claim a credit under this section and the information required on the form.

      (4) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a particular tax year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any credit remaining unused in the next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise any credit not used in that second succeeding tax year may be carried forward and used in the third succeeding tax year, but may not be carried forward for any tax year thereafter.

      (5) In the case of a credit allowed under this section:

      (a) A nonresident is allowed the credit under this section in the proportion provided in ORS 316.117.

      (b) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section must be determined in a manner consistent with ORS 316.117.

      (c) If a change in the tax year of a taxpayer occurs as described in ORS 314.085, or if the Department of Revenue terminates the taxpayer’s tax year under ORS 314.440, the credit allowed under this section must be prorated or computed in a manner consistent with ORS 314.085. [2023 c.490 §19]

 

      315.285 [Repealed by 1965 c.26 §6]

 

      315.286 Reservation of credit; application to Housing and Community Services Department. (1) Before purchasing a property that is publicly supported housing, a purchaser intending to reserve the credit allowed under ORS 315.283 on behalf of the seller shall apply to the Housing and Community Services Department for a reservation.

      (2) The application for a reservation under this section must be on a form prescribed by the Housing and Community Services Department and must provide:

      (a) The name, address and taxpayer identification number of the seller and of the purchaser;

      (b) The location of the publicly supported housing;

      (c) A description of the use to which the housing will be put following the qualifying sale;

      (d) The number of affordable housing units that will be maintained within the housing following the qualifying sale and the projected duration, in years, of the availability of the units as affordable housing;

      (e) An appraisal of the housing conducted by an appraiser as defined in ORS 674.200;

      (f) The anticipated amount of credit to be reserved by the seller;

      (g) The calendar year in which the purchaser anticipates completing the qualifying sale; and

      (h) Any other information as the Housing and Community Services Department may require.

      (3) The Housing and Community Services Department may review applications for a reservation using any reasonable system of prioritizing review established by the Housing and Community Services Department by rule.

      (4) Applications for reservations of a credit filed in compliance with this section may be approved by the Housing and Community Services Department only to the extent that the total amount of credits for all approved qualifying sales for the calendar year is equal to or less than the limitation in ORS 315.291. The Housing and Community Services Department may deny an application, or may approve a reduced amount of credit, if the addition of the anticipated amount of credit to previously approved amounts of credits for the calendar year would exceed the limitation in ORS 315.291.

      (5) Upon approval of a reservation of a credit, and not later than January 15 of the year following the filing of the application, the Housing and Community Services Department shall issue a reservation to the purchaser. The reservation must state the approved amount of credit. The reservation may include conditions that must be met in order for a credit to be claimed by the seller under ORS 315.283.

      (6) The Housing and Community Services Department, following notification of the close of the qualifying sale, including the final purchase price, shall send to the seller a certification of the seller’s claim to the credit in an amount not to exceed the lesser of the amount reserved or the amount calculated under ORS 315.283 (1) based on the final purchase price.

      (7) At the end of each calendar year, the Housing and Community Services Department shall send a list of the names, addresses and taxpayer identification numbers of sellers to whom a certification has been issued under subsection (6) of this section during the calendar year, along with approved amounts of credit for each qualifying sale, to the Department of Revenue.

      (8) A tax credit may not be issued under this section for the sale of a property that, within the previous 30 years, was awarded a tax credit under ORS 315.283.

      (9) The Housing and Community Services Department may establish an application process for the registration and certification of credits under this section.

      (10) Notwithstanding that a certification has been issued to a seller under this section, the Department of Revenue may disallow, in whole or in part, a claim for credit upon the Department of Revenue’s determination that the seller is not entitled to the credit or is entitled only to a portion of the amount claimed under ORS 315.283.

      (11) The Housing and Community Services Department may adopt rules to implement this section. [2023 c.490 §20]

 

      315.288 Housing and Community Services Department to provide information to Department of Revenue; rules. (1) For any tax credit certification that is issued under ORS 315.286, the Department of Revenue may by rule require that the Housing and Community Services Department provide information about the certification, including the name and taxpayer identification number of the taxpayer or other person receiving certification, the date the certification was issued in its final form, the approved amount of credit and the first tax year for which the credit may be claimed.

      (2) A taxpayer that is a pass-through entity that has received certification for a credit allowed under ORS 315.283 shall provide the information described in subsection (1) of this section to the Department of Revenue within two months after the close of the tax year in which the certification was issued.

      (3) The Department of Revenue shall prescribe by rule the manner and the timing of submission to the Department of Revenue of the information described in subsection (1) of this section. [2023 c.490 §21]

 

      315.290 [Repealed by 1965 c.26 §6]

 

      315.291 Calendar year limitation on credits allowed all taxpayers. The total amount certified by the Housing and Community Services Department for tax credits for affordable housing under ORS 315.283 may not exceed $3 million for all taxpayers for any calendar year. [2023 c.490 §22]

 

      315.295 [Repealed by 1965 c.26 §6]

 

ENVIRONMENT AND ENERGY

 

      315.304 Pollution control facilities. (1) A credit against taxes imposed by ORS chapter 316 (or, if the taxpayer is a corporation, under ORS chapter 317 or 318) for a pollution control facility or facilities certified under ORS 468.170 shall be allowed if the taxpayer qualifies under subsection (4) of this section.

      (2) For a facility certified under ORS 468.170, the maximum credit allowed in any one tax year shall be the lesser of the tax liability of the taxpayer or the applicable percentage of the certified cost of the facility, as determined under ORS 468.173 or 468.183, multiplied by the certified percentage allocable to pollution control, divided by the number of years of the facility’s useful life. The number of years of the facility’s useful life used in this calculation shall be the remaining number of years of useful life at the time the facility is certified but not less than one year nor more than 10 years.

      (3) To qualify for the credit the pollution control facility must be erected, constructed or installed in accordance with the provisions of ORS 468.165 (1) and must be certified for tax relief under ORS 468.155 to 468.190.

      (4) To qualify for a tax credit under this section:

      (a) The taxpayer who is allowed the credit must be:

      (A) The owner, including a contract purchaser, of the trade or business that utilizes Oregon property requiring a pollution control facility to prevent or minimize pollution;

      (B) A person who, as a lessee or pursuant to an agreement, conducts the trade or business that operates or utilizes such property; or

      (C) A person who, as an owner, including a contract purchaser, or lessee, owns or leases a pollution control facility that is used:

      (i) In a business that is engaged in a production activity described in 40 C.F.R. 430.20 (as of July 1, 1998); or

      (ii) For recycling, material recovery or energy recovery as defined in ORS 459.005; and

      (b) The facility must be owned or leased during the tax year by the taxpayer claiming the credit and must have been in use and operation during the tax year for which the credit is claimed.

      (5) Regardless of when the facility is erected, constructed or installed, a credit under this section may be claimed by a taxpayer:

      (a) For a facility qualifying under ORS 468.165 (1)(a) or (b), only in those tax years which begin on or after January 1, 1967.

      (b) For a facility qualifying under ORS 468.165 (1)(c), in those tax years which begin on or after January 1, 1973.

      (c) For a facility qualifying under ORS 468.165 (1)(d), in those tax years which begin on or after January 1, 1984.

      (6) For a facility certified under ORS 468.170, the maximum total credit allowable shall not exceed one-half of the certified cost of the facility multiplied by the certified percentage allocable to pollution control.

      (7) The credit provided by this section is not in lieu of any depreciation or amortization deduction for the facility to which the taxpayer otherwise may be entitled under ORS chapter 316, 317 or 318 for such year.

      (8) Upon any sale, exchange or other disposition of a facility, notice thereof shall be given to the Environmental Quality Commission who shall revoke the certification covering such facility as of the date of such disposition. Notwithstanding ORS 468.170 (4)(c), the transferee may apply for a new certificate under ORS 468.170, but the tax credit available to such transferee shall be limited to the amount of credit not claimed by the transferor. The sale, exchange or other disposition of shares in an S corporation as defined in section 1361 of the Internal Revenue Code or of a partner’s interest in a partnership shall not be deemed a sale, exchange or other disposition of a facility for purposes of this subsection.

      (9) Any tax credit otherwise allowable under this section which is not used by the taxpayer in a particular year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any credit remaining unused in such next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise, any credit not used in that second succeeding tax year may be carried forward and used in the third succeeding tax year, but may not be carried forward for any tax year thereafter. Credits may be carried forward to and used in a tax year beyond the years specified in ORS 468.170.

      (10) The taxpayer’s adjusted basis for determining gain or loss shall not be further decreased by any tax credits allowed under this section.

      (11) A person described in subsection (4)(a)(C) of this section may, but need not, operate the facility or conduct a trade or business that utilizes property requiring the facility. If more than one person has an interest under subsection (4)(a)(C) of this section in the facility, only one person may claim the credit allowed under this section. However, portions of the facility may be certified separately in the same manner as provided in ORS 468.170 (8) if ownership of the portions is in more than one person. The person claiming the credit as between an owner, including a contract purchaser, and lessee under this subsection shall be designated in a written statement signed by both the lessor and lessee of the facility. This statement shall be filed with the Department of Revenue not later than the final day of the first tax year for which a tax credit is claimed.

      (12)(a) A taxpayer may not be allowed a tax credit under this section for any tax year during which the taxpayer is convicted of a felony under ORS 468.922 to 468.956 that is related to the facility for which the tax credit would otherwise be claimed, or for the four tax years succeeding the tax year during which the taxpayer is convicted.

      (b) The amount of any tax credit that is otherwise allowable under this section but for paragraph (a) of this subsection shall be considered to be claimed by the taxpayer for purposes of determining the amount of tax credit that may be claimed in a tax year in which paragraph (a) of this subsection permits the taxpayer to claim the credit. [1993 c.730 §30 (enacted in lieu of 316.097 and 317.116); 1993 c.560 §110a; 1995 c.746 §1; 1997 c.99 §5; 1997 c.325 §39; 1999 c.1101 §1; 2001 c.928 §4]

 

      Note: Section 3, chapter 928, Oregon Laws 2001, provides:

      Sec. 3. (1) Notwithstanding ORS 315.304 (9), in the case of a pollution control facility for which unexpired tax credits exist as of the tax year of the taxpayer that begins in the 2001 calendar year, if the facility is in use and operation during the tax year immediately following the third succeeding tax year described in ORS 315.304 (9), any credit under ORS 315.304 remaining unused may be carried forward to that fourth succeeding tax year. If the facility is in use and operation during the tax year immediately following the fourth succeeding tax year, any credit under ORS 315.304 remaining unused may be carried forward to that fifth succeeding tax year. If the facility is in use and operation during the tax year immediately following the fifth succeeding tax year, any credit under ORS 315.304 remaining unused may be carried forward to that sixth succeeding tax year, but may not be carried forward to any tax year thereafter.

      (2) For purposes of this section, unexpired tax credits include credits claimed pursuant to ORS 315.304 (2) and credits carried over from previous tax years pursuant to ORS 315.304 (9). [2001 c.928 §3]

 

      315.305 [Repealed by 1965 c.26 §6]

 

      315.310 [Repealed by 1965 c.26 §6]

 

      315.311 [1995 c.746 §33; 1997 c.325 §40; repealed by 2011 c.83 §13]

 

      315.315 [Repealed by 1965 c.26 §6]

 

      315.320 [Repealed by 1965 c.26 §6]

 

      315.324 [1993 c.730 §32 (enacted in lieu of 316.103 and 317.106); 1995 c.746 §7; repealed by 2011 c.83 §13]

 

      315.325 [Repealed by 1965 c.26 §6]

 

      315.326 Renewable energy development contributions; auction of tax credits; certification; rules. (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 ORS 470.805, of the Clean Energy Deployment Fund established in ORS 470.800.

      (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 auction may be conducted no later than April 15 following December 31 of any tax year for which the credit is allowed. 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 ORS 470.805, of the Clean Energy Deployment Fund established in ORS 470.800. 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 ORS 470.805, of the Clean Energy Deployment Fund established in ORS 470.800.

      (4)(a) Upon receipt of a contribution, the State Department of Energy shall, except as provided in ORS 315.329, 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. [2011 c.730 §23; 2012 c.45 §2]

 

      Note: Section 25, chapter 730, Oregon Laws 2011, provides:

      Sec. 25. A taxpayer may not be allowed a credit under section 23 of this 2011 Act [315.326] for any tax year that begins on or after January 1, 2018. [2011 c.730 §25]

 

      315.329 Funding in lieu of tax credit certification. (1) In any fiscal year, the amount of tax credits allowed under ORS 315.326 may be reduced or eliminated, and the Legislative Assembly may, no later than 30 days prior to the end of each fiscal year, in lieu of the issuance of certifications for tax credit under ORS 315.326 by the State Department of Energy, make an appropriation to the State Department of Energy for deposit into the Renewable Energy Development Subaccount, established in ORS 470.805, of the Clean Energy Deployment Fund established in ORS 470.800. Moneys deposited under this section are to be used only for purposes related to renewable energy development.

      (2) After a tax credit certificate has been sold as provided in ORS 315.326, the State Department of Energy may not revoke the certificate. [2011 c.730 §24; 2012 c.45 §3]

 

      315.330 [Repealed by 1965 c.26 §6]

 

      315.331 Energy conservation projects. (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 ORS 469B.270 to 469B.306. The credit is allowed as follows:

      (a) Except as provided in ORS 469B.298 and 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 ORS 469B.270 to 469B.306.

      (c) If the project is a research and development project, it must receive, prior to certification under ORS 469B.288, 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 ORS 469B.291. The new lessee or owner must meet the requirements of ORS 469B.270 to 469B.306 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 ORS 469B.291 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 ORS 469B.285.

      (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 ORS 469B.270 apply to this section. [2011 c.730 §35; 2015 c.545 §3]

 

      Note: Section 9, chapter 545, Oregon Laws 2015, provides:

      Sec. 9. Section 2 of this 2015 Act [469B.298] and the amendments to ORS 315.331, 469B.276, 469B.291, 469B.294, 469B.297 and 469B.300 by sections 3 to 8 of this 2015 Act apply to applications for final certification under ORS 469B.291 submitted on or after September 1, 2015, and to tax years beginning on or after January 1, 2015. [2015 c.545 §9]

 

      Note: Sections 36 and 51, chapter 730, Oregon Laws 2011, provide:

      Sec. 36. (1) A taxpayer may not be allowed a credit under section 35 of this 2011 Act [315.331] 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 [469B.291], 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. [2011 c.730 §36]

      Sec. 51. Sections 35 [315.331], 36 and 38 to 50 [469B.270 to 469B.306] of this 2011 Act apply to applications for preliminary certification submitted under section 43 of this 2011 Act [469B.285] after July 1, 2011, and to tax years beginning on or after January 1, 2011. [2011 c.730 §51]

 

      315.335 [Repealed by 1965 c.26 §6]

 

      315.336 Transportation projects. (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 ORS 469B.320 to 469B.347.

      (2) The credit allowed for a project other than an alternative fuel vehicle 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 ORS 469B.329 prior to July 1, 2011; or

      (B) 25 percent of certified cost, if a preliminary certification is issued under ORS 469B.329 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 project under this section may not exceed 35 percent of the certified cost of the project.

      (4)(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 project, 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 amount of the credit allowed under this section is less than 35 percent of the certified cost of the project, the credit allowed in any tax year may not exceed five percent of the certified cost of the project, and may not exceed the tax liability of the taxpayer.

      (5) 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 ORS 469B.320 to 469B.347.

      (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 ORS 469B.320 apply to this section. [2011 c.730 §53; 2012 c.45 §6; 2013 c.774 §14]

 

      Note: Sections 54 and 66, chapter 730, Oregon Laws 2011, provide:

      Sec. 54. (1) A taxpayer may not be allowed a credit for a transportation project, other than an alternative fuel vehicle project, certified under ORS 469B.332 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 project certified under ORS 469B.332 if the first tax year for which the credit would otherwise be allowed begins on or after January 1, 2018. [2011 c.730 §54; 2013 c.774 §16]

      Sec. 66. Sections 53 and 56 to 65 of this 2011 Act [315.336 and 469B.320 to 469B.347] apply to applications for preliminary certification submitted under section 58 of this 2011 Act [469B.326] after July 1, 2011, and to tax years beginning on or after January 1, 2011. [2011 c.730 §66]

 

      315.340 [Repealed by 1965 c.26 §6]

 

      315.341 Renewable energy resource equipment manufacturing facilities. (1) A credit is allowed against the taxes otherwise due under ORS chapter 316 (or, if the taxpayer is a corporation, under ORS chapter 317 or 318), based upon the certified cost of a renewable energy resource equipment manufacturing facility during the period for which the facility is certified under ORS 285C.540 to 285C.559. The credit allowed under this section in each of five succeeding tax years shall be 10 percent of the certified cost of the facility, but may not exceed the tax liability of the taxpayer.

      (2) In order for a tax credit to be allowable under this section:

      (a) The facility must be located in Oregon;

      (b) The facility must have received:

      (A) Final certification from the Director of the Oregon Business Development Department under ORS 285C.540 to 285C.559; or

      (B) Final certification from the Director of the State Department of Energy under ORS 469B.130 to 469B.169, prior to January 1, 2012; and

      (c) The taxpayer must be an eligible applicant under ORS 285C.547 (1)(b).

      (3) The total amount of credit allowable to an eligible taxpayer under this section may not exceed 50 percent of the certified cost of a facility.

      (4)(a) Upon any sale, termination of the lease or contract, exchange or other disposition of the facility, notice thereof shall be given to the Director of the Oregon Business Development Department, who shall revoke the certificate covering the facility as of the date of such disposition.

      (b) The new owner, or upon re-leasing of the facility, the new lessor, may apply for a new certificate under ORS 285C.553. The new lessor or owner must meet the requirements of ORS 285C.540 to 285C.559 and may claim a tax credit under this section only if all moneys owed to the State of Oregon have been paid, the facility continues to operate, unless continued operation is waived by the Oregon Business Development Department, and 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 lessor, the amount of credit not claimed by the lessor under all previous leases.

      (5) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a particular year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any credit remaining unused in that next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise, any credit not used in that second succeeding tax year may be carried forward and used in the third succeeding tax year, and likewise, any credit not used in that third succeeding tax year may be carried forward and used in the fourth succeeding tax year, and likewise, any credit not used in that fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, and likewise, any credit not used in that fifth succeeding tax year may be carried forward and used in the sixth succeeding tax year, and likewise, any credit not used in that sixth succeeding tax year may be carried forward and used in the seventh succeeding tax year, and likewise, any credit not used in that seventh succeeding tax year may be carried forward and used in the eighth succeeding tax year, but may not be carried forward for any tax year thereafter. Credits may be carried forward to and used in a tax year beyond the years specified in subsection (1) of this section only as provided in this subsection.

      (6) The credit allowed under this section is not in lieu of any depreciation or amortization deduction for the facility to which the taxpayer otherwise may be entitled for purposes of ORS chapter 316, 317 or 318 for such year.

      (7) The taxpayer’s adjusted basis for determining gain or loss may not be decreased by any tax credits allowed under this section.

      (8) The definitions in ORS 285C.540 apply to this section. [2011 c.474 §2; 2012 c.45 §17]

 

      Note: Section 3, chapter 474, Oregon Laws 2011, provides:

      Sec. 3. A taxpayer may not be allowed a credit under section 2 of this 2011 Act [315.341] unless the taxpayer receives preliminary certification under section 10 of this 2011 Act [285C.551] before January 1, 2014. [2011 c.474 §3]

 

      315.345 [Repealed by 1965 c.26 §6]

 

      315.350 [Repealed by 1965 c.26 §6]

 

      315.354 Energy conservation facilities. (1) A credit is allowed against the taxes otherwise due under ORS chapter 316 (or, if the taxpayer is a corporation, under ORS chapter 317 or 318), based upon the certified cost of the facility during the period for which that facility is certified under ORS 469B.130 to 469B.169. The credit is allowed as follows:

      (a) Except as provided in paragraph (b) or (c) 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 (4) 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.

      (c) If the facility uses or produces renewable energy resources, the credit allowed in each of five succeeding tax years shall be 10 percent of the certified cost of the facility, but may not exceed the tax liability of the taxpayer.

      (2) Notwithstanding subsection (1) of this section:

      (a) If the facility is one or more renewable energy resource systems installed in a single-family dwelling, the amount of the credit for each system shall be determined as if the facility was considered a residential alternative energy device under ORS 316.116, but subject to the maximum credit amount under subsection (4)(b) of this section;

      (b) If the facility is a high-performance home, the amount of the credit shall equal the amount determined under paragraph (a) of this subsection plus $3,000; and

      (c) If the facility is a high-performance home or a homebuilder-installed renewable energy system, the total amount of the credit may be claimed in the first tax year for which the credit is claimed, but may not exceed the tax liability of the taxpayer.

      (3) In order for a tax credit to be allowable under this section:

      (a) The facility must be located in Oregon;

      (b) The facility must have received final certification from the Director of the State Department of Energy under ORS 469B.130 to 469B.169;

      (c) The taxpayer must be an eligible applicant under ORS 469B.145 (1)(c); and

      (d) 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.

      (4) The total amount of credit allowable to an eligible taxpayer under this section may not exceed:

      (a) 50 percent of the certified cost of a renewable energy resources facility or a high-efficiency combined heat and power facility;

      (b) $9,000 per single-family dwelling for homebuilder-installed renewable energy systems;

      (c) $12,000 per single-family dwelling for homebuilder-installed renewable energy systems, if the dwelling also constitutes a high-performance home; or

      (d) 35 percent of the certified cost of any other facility.

      (5)(a) Upon any sale, termination of the lease or contract, exchange or other disposition of the facility, notice thereof shall be given to the Director of the State Department of Energy, who shall revoke the certificate covering the facility as of the date of such disposition.

      (b) The new owner, or upon re-leasing of the facility, the new lessor, may apply for a new certificate under ORS 469B.161. The new lessor or owner must meet the requirements of ORS 469B.130 to 469B.169 and may claim a tax credit under this section only if all moneys owed to the State of Oregon have been paid, the facility continues to operate, unless continued operation is waived by the State Department of Energy, and 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 lessor, the amount of credit not claimed by the lessor under all previous leases.

      (c) The State Department of Energy may not revoke the certificate covering a facility under paragraph (a) of this subsection if the tax credit associated with the facility has been transferred to a taxpayer who is an eligible applicant under ORS 469B.145 (1)(c)(A).

      (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, and likewise, any credit not used in that fifth succeeding tax year may be carried forward and used in the sixth succeeding tax year, and likewise, any credit not used in that sixth succeeding tax year may be carried forward and used in the seventh succeeding tax year, and likewise, any credit not used in that seventh succeeding tax year may be carried forward and used in the eighth succeeding tax year, but may not be carried forward for any tax year thereafter. Credits may be carried forward to and used in a tax year beyond the years specified in subsection (1) of this section only as provided in this subsection.

      (7) The credit provided by this section is not in lieu of any depreciation or amortization deduction for the facility to which the taxpayer otherwise may be entitled 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) If a homebuilder claims a credit under this section with respect to a homebuilder-installed renewable energy system or a high-performance home:

      (a) The homebuilder may not claim credits for both a homebuilder-installed renewable energy system and a high-performance home with respect to the same dwelling;

      (b) The homebuilder must inform the buyer of the dwelling that the homebuilder is claiming a tax credit under this section with respect to the dwelling; and

      (c) The buyer of the dwelling may not claim a credit under this section that is based on any facility for which the homebuilder has already claimed a credit.

      (10) The definitions in ORS 469B.130 apply to this section. [1993 c.730 §34 (enacted in lieu of 316.140 and 317.104); 1995 c.746 §15; 1997 c.656 §4; 1999 c.365 §10; 2001 c.583 §1; 2001 c.660 §1a; 2007 c.843 §14; 2009 c.909 §48; 2010 c.76 §3; 2011 c.474 §23; 2011 c.693 §1]

 

      315.355 [Repealed by 1965 c.26 §6]

 

      315.356 Other grants as offset to cost of energy conservation facility; changes in eligibility for participation in other programs. (1) If a taxpayer obtains a grant from the federal government in connection with a facility that has been certified by the Director of the State Department of Energy, the total cost of the facility shall be reduced on a dollar for dollar basis. Any income or excise tax credits that the taxpayer would be entitled to under ORS 285C.540 to 285C.559, 315.341, 315.354 and 469B.130 to 469B.169 after any reduction described in this subsection may not be reduced by the federal grant. A taxpayer applying for a federal grant shall notify the Department of Revenue by certified mail within 30 days after each application, and after the receipt of any grant.

      (2) A taxpayer, or an applicant who is otherwise eligible, is eligible to participate in both this tax credit program and low interest, government-sponsored loans.

      (3) A taxpayer who receives a tax credit or property tax relief on a pollution control facility or an alternative energy device under ORS 307.405, 315.304 or 316.116 is not eligible for a tax credit on the same facility or device under ORS 285C.540 to 285C.559, 315.341, 315.354 and 469B.130 to 469B.169. [1993 c.730 §36 (enacted in lieu of 316.141, 316.142 and 317.103); 1995 c.556 §35; 1999 c.623 §3; 2001 c.583 §2; 2007 c.843 §15; 2011 c.83 §14; 2011 c.474 §34; 2011 c.693 §2]

 

      315.357 Time limit applicable to energy conservation tax credit. (1) 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 469B.145 on or before April 15, 2011;

      (b) Receives preliminary certification under ORS 469B.157 before July 1, 2011; and

      (c) Receives final certification under ORS 469B.161 before January 1, 2013, or has demonstrated, to the State Department of Energy, evidence of beginning construction before April 15, 2011.

      (2) Any preliminary certification issued for a facility, other than a renewable energy resource equipment manufacturing facility, under ORS 469B.157 that remains outstanding as of July 1, 2011, shall expire on July 1, 2014. [2007 c.843 §24; 2009 c.913 §15; 2010 c.76 §5; 2011 c.474 §24; 2011 c.730 §1; 2012 c.45 §16]

 

      315.360 [Amended by 1953 c.132 §3; repealed by 1965 c.26 §6]

 

      315.365 [Repealed by 1965 c.26 §6]

 

      315.455 [Repealed by 1965 c.26 §6]

 

      315.460 [Repealed by 1965 c.26 §6]

 

      315.465 Biofuels and fuel blends. (1) As used in this section and ORS 315.469:

      (a) “Alternative fuel vehicle” means a motor vehicle that can operate on a fuel blend.

      (b) “Biodiesel” has the meaning given that term in ORS 646.905.

      (c) “Biomass” has the meaning given that term in ORS 315.141.

      (d) “Bone dry ton” means matter that is dried to less than one percent moisture content and that weighs 2,000 pounds.

      (e) “Fuel blend” means diesel fuel of blends equal to or exceeding 99 percent biodiesel or gasoline of a blend equal to or exceeding 85 percent methanol or ethanol.

      (2)(a) A resident individual shall be allowed a credit against the taxes otherwise due under ORS chapter 316 for costs paid or incurred to purchase fuel blends for use in an alternative fuel vehicle.

      (b) A resident individual shall be allowed a credit against the taxes otherwise due under ORS chapter 316 for costs paid or incurred to purchase forest, rangeland or agriculture waste or residue densified and dried prepared solid biofuel that contains 100 percent biomass.

      (3) The amount of the credit shall be calculated as follows:

      (a) Determine the quantity of fuel blend or solid biofuel purchased by the taxpayer during the tax year;

      (b) Categorize the fuel blend or solid biofuel as prescribed in rules adopted under ORS 469B.400; and

      (c) Multiply the quantity of fuel blend or solid biofuel in a particular category by the appropriate credit rate for that category, expressed in dollars and cents.

      (4) Notwithstanding subsection (3) of this section:

      (a) The credit allowed under this section for diesel blended fuel is equal to $0.50 per gallon and in any one tax year may not exceed $200 per Oregon registered motor vehicle that is owned or leased by the taxpayer under a lease of greater than 30 days’ duration and that is capable of using a fuel blend.

      (b) The credit allowed for gasoline blended fuel is equal to $0.50 per gallon and in any one tax year may not exceed $200 per Oregon registered motor vehicle that is owned or leased by the taxpayer under a lease of greater than 30 days’ duration and that is capable of using a fuel blend.

      (c) The credit allowed for forest, rangeland or agriculture waste or residue densified and dried prepared solid biofuel is equal to $10 per bone dry ton of solid biofuel and in any one tax year may not exceed $200 per taxpayer.

      (d) The credit allowed in any one tax year may not exceed the tax liability of the taxpayer and may not be carried forward to a subsequent tax year.

      (5) For each tax year for which a credit is claimed under this section, the taxpayer shall maintain records sufficient to determine the taxpayer’s purchase of qualifying fuel blends. A taxpayer shall maintain the records required under this subsection for at least five years.

      (6) A nonresident shall be allowed the credit under this section in the proportion provided in ORS 316.117.

      (7) 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.

      (8) 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.

      (9) Spouses in a marriage 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. [2007 c.739 §27; 2015 c.629 §36]

 

      Note: Section 29, chapter 739, Oregon Laws 2007, provides:

      Sec. 29. ORS 315.465 and 315.469 apply to tax years beginning on or after January 1, 2007, and before January 1, 2012. [2007 c.739 §29; 2009 c.913 §17]

 

      315.469 Biodiesel used in home heating. (1) A resident individual shall be allowed a tax credit against the taxes otherwise due under ORS chapter 316 for costs paid or incurred to purchase fuel for primary home space heating that is at least 20 percent biodiesel. The credit allowed under this section is the lesser of five cents per gallon or $200.

      (2) The credit allowed in any one tax year may not exceed the tax liability of the taxpayer and may not be carried forward to a subsequent tax year.

      (3) For each tax year for which a credit is claimed under this section, the taxpayer shall maintain records sufficient to determine the taxpayer’s purchase of qualifying fuel for primary home space heating. A taxpayer shall maintain the records required under this subsection for at least five years.

      (4) A nonresident shall be allowed the credit under this section in the proportion provided in ORS 316.117.

      (5) 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.

      (6) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117.

      (7) Spouses in a marriage 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. [2007 c.739 §28; 2015 c.629 §37]

 

      Note: See note under 315.465.

 

      315.504 [1993 c.730 §38 (enacted in lieu of 316.104 and 317.140); repealed by 2005 c.80 §7]

 

      315.505 [Repealed by 1965 c.26 §6]

 

ECONOMIC DEVELOPMENT

 

      315.506 New business facility in reservation enterprise zone or reservation partnership zone. (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 an eligible business that is operating a new business facility in a reservation enterprise zone or a reservation partnership zone.

      (2) The amount of the credit allowed to the eligible business shall equal:

      (a) The amount of tribal property tax imposed on a new business facility of an eligible business that is paid or incurred by the eligible business during the income or corporate excise tax year of the eligible business; or

      (b) If the eligible business has not previously conducted business operations within the reservation enterprise zone or reservation partnership zone, the amount of tribal tax paid or incurred by the eligible business during the income or corporate excise tax year of the eligible business.

      (3) The credit allowed to the eligible business may not exceed the tax liability of the eligible business for the tax year and may not be carried over to another tax year.

      (4) A credit is allowable under this section only to the extent the tribal tax on which the credit is based is imposed on businesses not owned by Indians on a uniform basis within the territory over which the tribal government has the authority to levy, impose and collect taxes.

      (5) The credit shall be claimed on a form prescribed by the Department of Revenue containing the information required by the department, including information sufficient for the department to determine that the taxpayer is an eligible business and that the facility operated by the business is a new business facility.

      (6) An eligible nonresident individual shall be allowed the credit computed in the same manner and subject to the same limitations as the credit allowed a resident by subsection (1) of this section. However, the credit shall be prorated using the proportion provided in ORS 316.117.

      (7) 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.

      (8) 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.

      (9) An eligible business claiming a credit under this section shall maintain records sufficient to authenticate the allowance of the credit claimed under this section and shall furnish the department with these records upon the request of the department.

      (10) A credit claimed by an eligible business may not be disallowed solely because the eligible business conducts business operations both within and outside of a reservation enterprise zone or a reservation partnership zone.

      (11) As used in this section, “eligible business,” “new business facility,” “reservation enterprise zone,” “reservation partnership zone,” “tribal government” and “tribal tax” have the meanings given those terms in ORS 285C.300. [Formerly 285C.309; 2019 c.320 §7]

 

      Note: Section 21, chapter 913, Oregon Laws 2009, provides:

      Sec. 21. A credit may not be claimed under ORS 315.506 for tax years beginning on or after January 1, 2030. [2009 c.913 §21; 2010 c.76 §28; 2017 c.610 §1; 2023 c.490 §14]

 

      315.507 Electronic commerce in designated enterprise zone. (1) A credit against the taxes that are otherwise due under ORS chapter 316 or, if the taxpayer is a corporation, under ORS chapter 317 or 318, shall be allowed to a taxpayer that is:

      (a) A business firm engaged or preparing to engage in electronic commerce in an enterprise zone that has been designated for electronic commerce under ORS 285C.095; or

      (b) A business firm engaged or preparing to engage in electronic commerce in a city that has been designated for electronic commerce under ORS 285C.100.

      (2) The credit shall equal 25 percent of the investments made by the business firm in capital assets:

      (a) Located in the area designated for electronic commerce;

      (b) Used or constructed, installed or otherwise prepared for use in electronic commerce operations within the area designated for electronic commerce that are related to electronic commerce sales, customer service, order fulfillment, broadband infrastructure or other electronic commerce operations; and

      (c)(A) During the period that commences with the income or corporate excise tax year in which the firm applied to be an authorized business firm under ORS 285C.140 and ends on the last day of the income or corporate excise tax year in which begins the first property tax year in which qualified property of the firm used in eligible electronic commerce activities is exempt from property taxation under ORS 285C.175; or

      (B) During any income or corporate excise tax year in which begins a property tax year in which qualified property of the firm used in eligible electronic commerce operations is exempt from property taxation under ORS 285C.175.

      (3) Except as provided in subsection (5) of this section, the credit must be claimed for the income or corporate excise tax year that is:

      (a) The year in which the investment for which a credit is being claimed is made; and

      (b) A year, all or part of which is described in subsection (2)(c) of this section.

      (4) A credit allowed under this section for any one tax year may not exceed the lesser of $2 million or the tax liability of the taxpayer.

      (5) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a particular year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any credit remaining unused in the next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise any credit not used in that second succeeding tax year may be carried forward and used in the third succeeding tax year, and any credit not used in that third succeeding tax year may be carried forward and used in the fourth succeeding tax year, and any credit not used in that fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, but may not be carried forward for any tax year thereafter.

      (6) The credit allowed under this section is not in lieu of any depreciation or amortization deduction to which the taxpayer otherwise may be entitled under ORS chapter 316, 317 or 318 for the tax year.

      (7) The taxpayer’s adjusted basis for determining gain or loss may not be further decreased by any amount of credit allowed under this section.

      (8)(a) A nonresident shall be allowed the credit under this section in the proportion provided in ORS 316.117.

      (b) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed under this section shall be determined in a manner consistent with ORS 316.117.

      (c) If a change in the taxable year of a taxpayer occurs as described in ORS 314.085, or if the Department of Revenue terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed under this section shall be prorated or computed in a manner consistent with ORS 314.085.

      (9) As used in this section, “authorized business firm,” “business firm,” “electronic commerce” and “qualified property” have the meanings given those terms in ORS 285C.050. [2001 c.957 §8; 2003 c.65 §1; 2003 c.662 §64; 2015 c.648 §26]

 

      Note: Section 3, chapter 913, Oregon Laws 2009, provides:

      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, 2018. [2009 c.913 §3; 2011 c.730 §5]

      315.508 Recordkeeping requirements; disallowance of credit. (1) A taxpayer who has claimed a credit under ORS 315.507 shall maintain records sufficient to show:

      (a) That within three years following the year in which a credit was claimed under ORS 315.507, property owned or operated by the taxpayer and used in electronic commerce operations was exempt from property taxation under ORS 285C.175; and

      (b) That at no time was property described in paragraph (a) of this subsection disqualified from exemption pursuant to ORS 285C.240.

      (2) The taxpayer shall provide these records to the Department of Revenue if requested by the department.

      (3) The taxpayer shall maintain the records described in this section for at least five years following the last tax year for which the taxpayer claims any credit under ORS 315.507.

      (4) If property owned or operated by the taxpayer is not both used in electronic commerce operations in an area designated for electronic commerce and exempt from property taxation under ORS 285C.175 within three years following the year in which a credit is first claimed under ORS 315.507, the department shall disallow the credit for the current or any prior tax year and collect any taxes that were not paid as a result of application of the credit.

      (5) If property owned or operated by the taxpayer, used in electronic commerce operations in an area designated for electronic commerce and exempt from property taxation under ORS 285C.175 is disqualified from exemption under ORS 285C.240, the department shall disallow the credit for the current or any prior tax year and collect any taxes that were not paid as a result of application of the credit.

      (6) For purposes of collecting taxes due under subsection (4) or (5) of this section, the department shall have the benefit of all laws of this state pertaining to the collection of income and corporate excise taxes. No assessment of these taxes shall be necessary and no statute of limitations shall preclude the collection of these taxes. [2003 c.65 §2 and 2003 c.662 §65]

 

      315.510 [Repealed by 1965 c.26 §6]

 

      315.511 [2001 c.957 §15; repealed by 2011 c.83 §15]

 

      315.514 Film production development contributions; auction of tax credits; rules. (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 to the Oregon Production Investment Fund established under ORS 284.367.

      (2)(a) The Department of Revenue shall, in cooperation with the Oregon Film and Video Office, conduct an auction of tax credits under this section. The auction may be conducted no later than April 15 following December 31 of any tax year for which the credit is allowed. 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 90 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 in order to achieve the following goals:

      (A) Subject to paragraph (a) of this subsection, generate contributions for which tax credits of $20 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 Oregon Production Investment Fund.

      (4)(a) Upon receipt of a contribution, the Oregon Film and Video Office shall, except as provided in ORS 315.516, 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 $20 million for the fiscal year in which certification is made.

      (b) The Oregon Film and Video Office may issue a certification for a credit under this section, and a credit may be allowed, for the tax year in which a contribution is made, or for the tax year immediately preceding the tax year in which a contribution is made and for auctions conducted no later than April 15 following December 31 of any tax year for which the credit is allowed, if no return has yet been filed for the preceding tax year.

      (c) The Oregon Film and Video Office 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.

      (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.

      (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, 2030.

      (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. [2003 c.736 §76; 2007 c.843 §59; 2009 c.787 §2; 2011 c.730 §11; 2013 c.750 §50; 2015 c.701 §41; 2016 c.29 §§8,9; 2019 c.370 §1; 2021 c.525 §31; 2021 c.528 §13]

 

      Note: Section 77, chapter 736, Oregon Laws 2003, provides:

      Sec. 77. ORS 315.514 applies to tax years beginning on or after January 1, 2005, and before January 1, 2030, and to tax credit certifications issued by the Oregon Film and Video Office on or after July 1, 2005. [2003 c.736 §77; 2009 c.913 §1; 2011 c.730 §17; 2015 c.701 §42; 2021 c.525 §34]

 

      315.515 [Repealed by 1965 c.26 §6]

 

      315.516 Funding in lieu of tax credit certification. (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 current or upcoming fiscal year, based on the amount of contributions and accompanying applications for credit received by the office during the fiscal year and reduced by the amount, if any, previously certified for the credit for the corresponding fiscal year.

      (2) If the Legislative Assembly makes the election allowed in subsection (1) of this section:

      (a) No additional amount of credits may be certified for the corresponding fiscal year; and

      (b) 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 denied shall, at the request of the taxpayer, be refunded by the Oregon Film and Video Office. [2011 c.730 §13; 2018 c.111 §5]

 

      Note: 315.516 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 315 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      315.517 Water transit vessels. (1) As used in this section, “water transit vessel” means a United States Coast Guard licensed and inspected vessel that is primarily designed to carry 50 or more passengers and vehicles or 50 or more passengers only for a published fee across a body of water between two or more fixed points on a regular schedule.

      (2)(a) A credit against the taxes that are otherwise due under ORS chapter 316 or, if the taxpayer is a corporation, under ORS chapter 317 or 318, is allowed to a resident employer based upon wages actually paid by the taxpayer to a person employed in this state to assist in the manufacture of a water transit vessel.

      (b) The credit allowed under this section:

      (A) Must be claimed for the year in which the wages were paid;

      (B) May not be claimed for wages paid to an employee who was employed by the employer during the previous tax year; and

      (C) Must be for wages paid as a result of an increase in the number of full-time equivalent employees employed by the eligible taxpayer when compared to the previous tax year.

      (3) The amount of the credit provided under this section shall be equal to the lesser of:

      (a) $5,000; or

      (b) 15 percent of the wages paid to employees during the tax year for which the credit is claimed.

      (4) The tax credit available under this section may not exceed the tax liability of the taxpayer for the tax year.

      (5)(a) Wages taken into account for the purposes of subsection (3) of this section may not include any amount paid by the employer to an employee for whom the employer receives federal funds for on-the-job training.

      (b) A tax credit under this section is not in lieu of any deduction for payroll costs or any other expense to which the taxpayer may be entitled.

      (6)(a) A nonresident individual shall be allowed the credit computed in the same manner and subject to the same limitations as the credit allowed a resident by this section. However, the credit shall be prorated using the proportion provided in ORS 316.117.

      (b) If a change in the taxable year of the taxpayer occurs as described in ORS 314.085, or if the Department of Revenue terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed by this section shall be prorated or computed in a manner consistent with ORS 314.085.

      (c) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117. [2005 c.677 §1]

 

      Note: Section 2, chapter 677, Oregon Laws 2005, provides:

      Sec. 2. ORS 315.517 applies to persons initially hired on or after January 1, 2006, and for which a credit is claimed for tax years beginning on or after January 1, 2006, and before January 1, 2012. [2005 c.677 §2; 2009 c.913 §4]

 

      Note: 315.517 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 315 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      315.518 Research conducted by semiconductor company. (1) As used in this section, “qualified semiconductor company” means an entity whose primary business is the research, design, development, fabrication, assembly, testing, packaging or validation of semiconductors, or an entity whose primary business is the creation of semiconductor manufacturing equipment, semiconductor core intellectual property or electronic design automation software that is primarily intended for use in the semiconductor industry.

      (2) A credit against taxes otherwise due under ORS chapter 316 or, if the taxpayer is a corporation, under ORS chapter 317 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 15 percent.

      (b) “Qualified research” and “basic research” shall consist only of research conducted in Oregon by a qualified semiconductor company, in support of a trade or business directly related to semiconductors.

      (c) Section 41(c)(4) of the Internal Revenue Code (relating to the alternative incremental credit) does not apply to the credit allowable under this section.

      (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 $4 million for any taxpayer.

      (5) Prior to claiming a credit under this section, a taxpayer must obtain from the Oregon Business Development Department:

      (a) If applicable, approval from the Oregon Business Development Department as provided in section 5, chapter 298, Oregon Laws 2023.

      (b) Certification as provided in ORS 315.522.

      (6) The Oregon Business Development Department shall provide information to the Department of Revenue about all certifications issued under ORS 315.522, if required by ORS 315.058.

      (7) The Director of the Oregon Business Development Department may order the suspension or revocation of a credit allowed under this section, as provided in ORS 315.061.

      (8) 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.

      (9) Notwithstanding ORS 317.090 (3), the refundable portion of a credit under this section is allowed against the tax imposed under ORS 317.090 and may reduce the tax imposed under ORS 317.090 to zero. Any remaining amount of credit above the minimum shall be refunded as provided in ORS 315.519.

      (10) 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. [2023 c.298 §2]

 

      315.519 Refundability of tax credit. (1)(a) If the amount allowable as a credit under ORS 315.518, after any reduction applicable under subsection (2) of this section, when added to the sum of the amount of estimated tax paid under ORS 314.515 and any other tax prepayment amounts, exceeds the taxes imposed by ORS chapters 314 and 317 for the tax year after application of any nonrefundable credits allowable for purposes of ORS chapter 317 for the tax year, the amount of the excess determined under this subsection shall be refunded to the taxpayer as provided in ORS 314.415.

      (b) If the amount allowable as a credit under ORS 315.518, after any reduction applicable under subsection (2) of this section, when added to the sum of the amounts allowable as payment of tax under ORS 316.187 or 316.583, other tax prepayment amounts and other refundable credit amounts, exceeds the taxes imposed by ORS chapters 314 and 316 for the tax year after application of any nonrefundable credits allowable for purposes of ORS chapter 316 for the tax year, the amount of the excess shall be refunded to the taxpayer as provided in ORS 316.502.

      (2) If the taxpayer employs, in Oregon:

      (a) Fewer than 150 employees at the close of the tax year, the amount of credit used in the calculation in subsection (1) of this section shall be reduced by 25 percent.

      (b) At least 150 employees but fewer than 500 employees at the close of the tax year, the amount of credit used in the calculation in subsection (1) of this section shall be reduced by 50 percent.

      (c) At least 500 employees but fewer than 3,000 employees at the close of the tax year, the amount of credit used in the calculation in subsection (1) of this section shall be reduced by 75 percent.

      (3) Any amount not available for refund due to subsection (2) of this section may be carried forward as provided in ORS 315.518 (10).

      (4) This section applies only to taxpayers with fewer than 3,000 employees who are employed in Oregon at the close of the tax year. [2023 c.298 §3]

 

      315.520 [Repealed by 1965 c.26 §6]

 

      315.521 [2005 c.592 §5; 2013 c.750 §42; 2016 c.31 §2; 2019 c.483 §15; renumbered 315.640 in 2019]

 

      315.522 Certification; application to Oregon Business Development Department; fees; rules. (1) A taxpayer seeking to claim the credit provided under ORS 315.518 shall file for each tax year a written application for certification with the Oregon Business Development Department. The application must include:

      (a) A description of how the taxpayer meets the definition of a qualified semiconductor company under ORS 315.518;

      (b) A description of how proposed research and development activities for which the taxpayer seeks a tax credit under ORS 315.518 will support the taxpayer in conducting a business or trade directly related to semiconductors; and

      (c) Any other information that is required by the department by rule.

      (2) An application for certification under this section must be accompanied by a payment of any fee established by the department by rule under subsection (4) of this section.

      (3) After considering timely filed and complete applications, along with amounts available under section 8, chapter 298, Oregon Laws 2023, the department shall, if the department deems appropriate, issue a certification to an applicant taxpayer if the department determines that the taxpayer is a qualified semiconductor company as that term is defined under ORS 315.518, and if the taxpayer attests that the proposed research and development activities for which the taxpayer seeks the credit under ORS 315.518 will support the taxpayer in conducting a trade or business directly related to semiconductors.

      (4) The department shall establish by rule a fee for filing a written application for certification under this section. The fee shall be adequate to recover the costs incurred by the department in reviewing the applications under this section.

      (5) Information submitted to the department under this section or section 5, chapter 298, Oregon Laws 2023, is exempt from public disclosure under ORS 192.311 to 192.478 and must be treated as confidential. [2023 c.298 §4]

 

(Temporary provisions relating to tax credits for semiconductor research)

 

      Note: Sections 1, 5 to 8 and 12, chapter 298, Oregon Laws 2023, provide:

      Sec. 1. Sections 2 to 5 of this 2023 Act [315.518 to 315.522 and section 5] are added to and made a part of ORS chapter 315. [2023 c.298 §1]

      Sec. 5. Registration required for initial tax year of credit availability. (1) In order to be allowed a credit under section 2 of this 2023 Act [315.518] for a tax year beginning in calendar year 2024, a taxpayer that intends to claim the credit for that tax year shall file not later than December 1, 2023, a registration with the Oregon Business Development Department.

      (2) The registration required under this section shall be submitted in a form and manner prescribed by the department by rule and shall include:

      (a) Documentation of the taxpayer’s qualified research expenses and basic research expenses under section 2 of this 2023 Act, averaged over the three preceding calendar years; and

      (b) A projection, for the tax year beginning in calendar year 2024, of the taxpayer’s qualified research expenses and basic research expenses under section 2 of this 2023 Act.

      (3) Not later than December 31, 2023, the department shall provide acknowledgment to any taxpayer that has timely registered under this section and shall provide preliminary confirmation that the taxpayer appears eligible for the credit allowed under section 2 of this 2023 Act.

      (4) The department shall submit information collected pursuant to this section to the Legislative Revenue Officer not later than February 1, 2024.

      (5) Any taxpayer that does not register as required under this section is not eligible to claim a credit under section 2 of this 2023 Act for a tax year beginning in calendar year 2024.

      (6) This section does not apply to taxpayer eligibility for credits allowed for any tax year that begins on or after January 1, 2025. [2023 c.298 §5]

      Sec. 6. Report by Legislative Revenue Officer. (1) The Legislative Revenue Officer shall prepare a report detailing the information submitted by applicants under section 5 of this 2023 Act. Information released or summarized in the report must be sufficiently anonymized and aggregated so that the report does not reasonably allow an individual whose information is included in the report to be identified. Not later than March 1, 2024, the officer shall submit the report, in the manner provided by ORS 192.245, to the legislative committees of the Legislative Assembly related to revenue.

      (2) The legislative committees of the Legislative Assembly related to revenue:

      (a) Shall review the contents of the report required under this section;

      (b) Shall consider options for modifying the provisions of sections 2 to 5 of this 2023 Act [315.518 to 315.522 and section 5] and for establishing criteria for granting certifications under section 4 of this 2023 Act [315.522] and accommodating the limitations in section 8 of this 2023 Act; and

      (c) May develop legislation intended to further options selected by the committees as provided in paragraph (b) of this subsection and proposed for consideration during the 2024 regular session of the Eighty-second Legislative Assembly. [2023 c.298 §6]

      Sec. 7. Section 6 of this 2023 Act is repealed on January 2, 2025. [2023 c.298 §7]

      Sec. 8. Biennial limitations on credits allowed all taxpayers. The total amount of potential tax credits for all qualified semiconductor companies in this state may not, at the time of certification under section 4 of this 2023 Act [315.522], exceed:

      (1) $35 million for the biennium beginning July 1, 2023;

      (2) $80 million for the biennium beginning July 1, 2025;

      (3) $90 million for the biennium beginning July 1, 2027; and

      (4) $50 million for the fiscal year beginning July 1, 2029. [2023 c.298 §8]

      Sec. 12. Sections 2 to 5 of this 2023 Act [315.518 to 315.522 and section 5] apply to tax years beginning on or after January 1, 2024, and before January 1, 2030. [2023 c.298 §12]

 

      315.523 Employee training. (1) As used in this section, “qualifying county” means a county with a population greater than 60,000 but less than 80,000 that:

      (a) Is located entirely outside of the Portland Metropolitan Area Regional Urban Growth Boundary and the acknowledged urban growth boundary of cities with populations of 30,000 or more;

      (b) Has an annual economic development budget of $500,000 or greater;

      (c) Has an unemployment rate at least 1.5 percentage points greater than the comparable unemployment rate for the state;

      (d) Is party to an agreement with an institute of higher education to coordinate efforts to promote enterprise throughout the county;

      (e) Is the site of a base or installation of the Armed Forces of the United States that employs at least 750 civilian and military personnel; and

      (f) Has access to Internet service with the minimum connection speed required to effectively conduct electronic commerce.

      (2) A credit against 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 who is located in a qualifying county and who establishes and implements an employee training program in collaboration with a local community college operated under ORS chapter 341.

      (3) The credit allowed under this section shall be equal to 12 percent of the taxpayer’s expenses to establish and implement the employee training program described in subsection (2) of this section.

      (4) For each tax year for which a credit is claimed under this section, the taxpayer shall maintain records sufficient to prove the taxpayer’s eligibility for the credit allowed under this section. A taxpayer shall maintain the records required under this subsection for at least five years.

      (5) The credit allowed under this section may not exceed the tax liability of the taxpayer for the tax year.

      (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) A nonresident taxpayer shall be allowed the credit under this section. The credit shall be computed in the same manner and be subject to the same limitations as the credit granted to a resident taxpayer. However, the credit shall be prorated using the proportion provided in ORS 316.117.

      (8) If a change in the taxable year of the taxpayer occurs as described in ORS 314.085, or if the Department of Revenue terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed by this section shall be prorated or computed in a manner consistent with ORS 314.085.

      (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.

      (10) Spouses in a marriage 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 adjusted gross income of each. [2017 c.610 §19]

 

      Note: Section 20, chapter 610, Oregon Laws 2017, provides:

      Sec. 20. Section 19 of this 2017 Act [315.523] applies to tax years beginning on or after January 1, 2017. [2017 c.610 §20]

 

      315.525 [Repealed by 1965 c.26 §6]

 

OREGON LOW INCOME COMMUNITY JOBS INITIATIVE

 

      315.526 Short title. ORS 285C.650, 285C.653, 285C.656 and 315.529 to 315.536 shall be known and may be cited as the Oregon Low Income Community Jobs Initiative. [2011 c.732 §1]

 

      Note: 315.526, 315.529 and 315.536 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 315 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      315.529 Definitions. As used in ORS 285C.650, 285C.653, 285C.656 and 315.529 to 315.536:

      (1) “Credit allowance date” means, with respect to any qualified equity investment:

      (a) The date on which the investment is initially made; and

      (b) Each of the six yearly anniversary dates after that initial date.

      (2) “Long-term debt security” means any debt instrument issued by a qualified community development entity, at par value or at a premium, with an original maturity date of at least seven years from the date of its issuance, with no acceleration of repayment, amortization or prepayment features prior to its original maturity date.

      (3) “Purchase price” means the amount of cash paid to a qualified community development entity for a qualified equity investment.

      (4) “Qualified active low-income community business” has the meaning given that term in section 45D of the Internal Revenue Code. “Qualified active low-income community business” does not include a business that derives or projects to derive 15 percent or more of its annual revenue from the rental or sale of real estate, unless the business is controlled by, or under common control with, another business that:

      (a) Does not derive or project to derive 15 percent or more of its annual gross revenues from the rental or sale of real estate; and

      (b) Is the primary tenant of real estate leased from the controlled business.

      (5) “Qualified community development entity” has the meaning given that term in section 45D of the Internal Revenue Code, provided that the entity has entered into, or is controlled by an entity that has entered into, an allocation agreement with the Community Development Financial Institutions Fund of the United States Department of the Treasury with respect to credits authorized by section 45D of the Internal Revenue Code, and the State of Oregon is included within the service area set forth in the allocation agreement.

      (6) “Qualified equity investment” means any equity investment in, or long-term debt security issued by, a qualified community development entity, that:

      (a) Is acquired at its original issuance solely in exchange for cash after July 1, 2012, unless it was a qualified equity investment in the hands of a prior holder; and

      (b) Has at least 85 percent of its cash purchase price used by the issuer to make qualified low-income community investments in qualified active low-income community businesses located in this state.

      (7) “Qualified low-income community investment” means any capital or equity investment in, or loan to, any qualified active low-income community business made after July 1, 2012. [2011 c.732 §2]

 

      Note: See note under 315.526.

 

      315.530 [Repealed by 1965 c.26 §6]

 

      315.533 Qualified equity investments. (1) As used in this section, “applicable percentage” means zero percent for each of the first two credit allowance dates, seven percent for the third credit allowance date and eight percent for the next four credit allowance dates.

      (2) A person that makes a qualified equity investment shall, at the time of investment, earn a vested credit against the taxes otherwise due under ORS chapter 316 or, if the person is a corporation, under ORS chapter 317 or 318.

      (3)(a) The total amount of the tax credit available to a taxpayer under this section shall equal 39 percent of the purchase price of the qualified equity investment.

      (b) The taxpayer that holds a qualified equity investment on a particular credit allowance date of the qualified equity investment may claim a portion of the tax credit against its tax liability for the tax year that includes the credit allowance date equal to the applicable percentage for that credit allowance date multiplied by the purchase price of the qualified equity investment.

      (4) The credit allowed under this section may not exceed the tax liability of the taxpayer for the tax year in which the credit is claimed.

      (5) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a particular tax year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any credit remaining unused in the next succeeding tax year may be carried forward and used in the second succeeding tax year. Any credit remaining unused in the second succeeding tax year may be carried forward and used in the third succeeding tax year. Any credit remaining unused in the third succeeding tax year may be carried forward and used in the fourth succeeding tax year. Any credit remaining unused in the fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, but may not be used in any tax year thereafter.

      (6) The following conditions must exist for a taxpayer to be eligible for the credit allowed under this section:

      (a) A qualified community development entity that issues a debt instrument may not make cash interest payments on the debt instrument during the period commencing with its issuance and ending on its final credit allowance date in excess of the sum of the cash interest payments and the cumulative operating income, as defined in the regulations promulgated under section 45D of the Internal Revenue Code, of the qualified community development entity for the same period. Neither this paragraph nor the definition of “long-term debt security” provided in ORS 315.529 in any way limits the holder’s ability to accelerate payments on the debt instrument in situations where the qualified community development entity has defaulted on covenants designed to ensure compliance with this section or section 45D of the Internal Revenue Code.

      (b) A business shall be considered a qualified active low-income community business for the duration of a qualified community development entity’s investment in or loan to the business, if it is reasonable to expect that at the time of the qualified community development entity’s investment in or loan to a qualified active low-income community business, the business will continue to satisfy the requirements for being a qualified active low-income community business throughout the entire period of the investment or loan.

      (c) A qualified equity investment must be designated by the issuer as a qualified equity investment and be certified by the Oregon Business Development Department as not exceeding the limitation in ORS 285C.653. The qualified community development entity must keep sufficiently detailed books and records with respect to the investments made with the proceeds of the qualified equity investments to allow the direct tracing of proceeds into qualified low-income community investments in qualified active low-income community businesses in this state.

      (d) The qualified community development entity shall report annually to the department:

      (A) The number of employment positions created and retained as a result of qualified low-income community investments by the qualified community development entity;

      (B) The average annual salary of positions described in subparagraph (A) of this paragraph; and

      (C) The number of positions described in subparagraph (A) of this paragraph that provide health benefits.

      (e) The maximum amount of qualified low-income community investments that may be made in a qualified active low-income community business and all of its affiliates, with the proceeds of qualified equity investments that have been certified under ORS 285C.650, shall be $8 million, whether made by one or several qualified community development entities.

      (f) A qualified equity investment must be made before July 1, 2016. Nothing in this paragraph precludes an entity that makes a qualified equity investment prior to July 1, 2016, from claiming a tax credit relating to that qualified equity investment for each applicable credit allowance date.

      (7) A taxpayer claiming a credit under this section may not claim any other credit under this chapter or ORS chapter 285C during the same tax year based on activities related to the same qualified active low-income community business. [2011 c.732 §4; 2013 c.744 §1]

 

      315.535 [Repealed by 1965 c.26 §6]

 

      315.536 Transferability of credit. A tax credit allowed under ORS 315.533 may not be sold or transferred, with the exception that tax credits that a partnership, limited liability company, S corporation or other pass-through entity is entitled to claim may be allocated to the partners, members or shareholders of the entity for their direct use in accordance with the provisions of any agreement among the partners, members or shareholders. [2011 c.732 §5]

 

      Note: See note under 315.526.

 

      315.540 [Repealed by 1965 c.26 §6]

 

      315.545 [Repealed by 1965 c.26 §6]

 

      315.550 [Repealed by 1965 c.26 §6]

 

      315.555 [Repealed by 1965 c.26 §6]

 

      315.560 [Repealed by 1965 c.26 §6]

 

      315.570 [Repealed by 1965 c.26 §6]

 

      315.575 [Repealed by 1965 c.26 §6]

 

      315.580 [Repealed by 1965 c.26 §6]

 

      315.585 [Repealed by 1965 c.26 §6]

 

      315.590 [Repealed by 1965 c.26 §6]

 

SHORT LINE RAILROADS

 

      315.591 Definitions. As used in ORS 315.591 to 315.603:

      (1) “Infrastructure” includes tracks, switches, sidings, roadbeds, railroad bridges and industrial leads owned or leased by a short line railroad.

      (2) “Short line railroad” means a class II or class III railroad as defined in 49 C.F.R. 1201.

      (3) “Short line railroad rehabilitation project” means a project that involves the maintenance, reconstruction or replacement of infrastructure.

      (4) “Short line railroad rehabilitation project costs” means costs that are directly related to the work necessary to maintain, reconstruct or replace infrastructure. [2019 c.579 §7; 2021 c.630 §44; 2023 c.545 §1]

 

      315.593 Short line railroad rehabilitation projects; rules. (1) A credit against taxes imposed by ORS chapter 316 (or, if the taxpayer is a corporation, under ORS chapter 317 or 318) is allowed to a taxpayer, based upon short line railroad rehabilitation project costs actually paid or incurred by the taxpayer during the tax year for which the credit is claimed.

      (2) The credit allowed under this section shall be the lesser of:

      (a) $3,500 multiplied by the number of miles of short line railroad track the taxpayer owns or leases in this state on the day the short line railroad rehabilitation project is completed; or

      (b) Fifty percent of the short line railroad rehabilitation project costs paid or incurred by the taxpayer during the tax year in which the credit is claimed.

      (3) For the credit to be allowed under this section:

      (a) The infrastructure must be located in Oregon; and

      (b) The taxpayer must:

      (A) Own or lease the infrastructure;

      (B) Be a short line railroad; and

      (C) Receive a final written certification from the Department of Transportation before claiming the credit.

      (4) A credit under this section is not allowed for:

      (a) Costs that are funded by or used to qualify for any state or federal grants.

      (b) The amount that is equal to the greater of:

      (A) Costs that are used to claim a federal tax credit under section 45G of the Internal Revenue Code; or

      (B) The credit limitation set out in section 45G(b)(1) of the Internal Revenue Code, as applied to the taxpayer’s miles of short line railroad track in this state.

      (5) The amount of the credit claimed 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 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.

      (7) The credit allowed under this section is not in lieu of any depreciation or amortization deduction for the short line railroad rehabilitation project to which the taxpayer otherwise may be entitled for purposes of ORS chapter 316, 317 or 318 for the tax year.

      (8) The taxpayer’s adjusted basis for determining gain or loss may not be decreased by any tax credit allowed under this section.

      (9) The credit shall be claimed on a form prescribed by the Department of Revenue that contains the information required by the department.

      (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 a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117.

      (c) If a change in the taxable year of a taxpayer occurs as described in ORS 314.085, or if the Department of Revenue terminates a 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.

      (11) A person that has earned a tax credit under this section may transfer the credit to a taxpayer subject to tax under ORS chapter 316, 317 or 318. The transfer must comply with ORS 315.056.

      (12) The Director of Transportation may order the suspension or revocation of a certification issued under this section, as provided in ORS 315.061. [2019 c.579 §8; 2021 c.528 §25; 2023 c.545 §2]

 

      Note: Section 17, chapter 579, Oregon Laws 2019, provides:

      Sec. 17. (1) ORS 315.591 to 315.603 apply to tax years beginning on or after January 1, 2020, and before January 1, 2030.

      (2) Except as provided in ORS 315.593 (6), a credit may not be claimed under ORS 315.593 for tax years beginning on or after January 1, 2030.

      (3) The amendments to ORS 315.591, 315.593 and 315.595 by sections 1 to 3 of this 2023 Act apply to tax years beginning on or after January 1, 2024, and before January 1, 2026. [2019 c.579 §17; 2023 c.490 §13; 2023 c.545 §4]

 

      315.595 Preliminary certification; application; allocation priority; rules. (1) Prior to construction of a short line railroad rehabilitation project, a taxpayer may apply to the Department of Transportation for preliminary certification of the project in the manner prescribed by rules adopted under this section, which must include:

      (a) Timelines and deadlines for submission of application materials;

      (b) A description of the information required by the department to determine that the taxpayer qualifies for the credit allowed under ORS 315.593;

      (c) Criteria for determining the amount of the tax credit allowed under ORS 315.593, including standards for what constitutes completion of a short line railroad rehabilitation project;

      (d) The process by which an applicant will be notified of an incomplete application and the time allowed for the applicant to provide the missing information; and

      (e) The month and date by which the department must notify an applicant of the preliminary certification decision and the potential amount of the tax credit for which the applicant has received preliminary certification.

      (2)(a) If the total amount of potential tax credits allowed under ORS 315.593 for all taxpayers that have applied for preliminary certification would exceed the limit in ORS 315.603, the department shall allocate the tax credits allowed under ORS 315.593 so that no railroad is allowed more than $400,000 for any tax year.

      (b) After applying the limitation in paragraph (a) of this subsection, if the total amount of potential tax credits allowed under ORS 315.593 for all taxpayers that have applied for preliminary certification exceeds the limit in ORS 315.603, the department shall allocate the available amount among taxpayers proportionally, based on the amount each taxpayer would have otherwise received under ORS 315.593. [2019 c.579 §9; 2021 c.528 §26; 2023 c.545 §3]

 

      315.597 Final certification; rules. (1) A taxpayer may apply to the Department of Transportation for final certification of a short line railroad rehabilitation project if:

      (a) The taxpayer received preliminary certification for the project under ORS 315.595; and

      (b) The project is completed.

      (2) After approving the application, the department shall certify the project, including the amount of the tax credit for which the taxpayer has received final certification. The department may not certify an amount that is more than the amount approved in the preliminary certification for the project.

      (3) The department may establish by rule a process for accepting applications and issuing final certifications under this section. [2019 c.579 §10]

 

      315.599 Fees; appropriation for expenses. (1) The Department of Transportation may charge and collect a fee from taxpayers for preliminary or final certification of short line rehabilitation projects under ORS 315.595 and 315.597. The fee may not exceed the cost to the department of issuing certifications.

      (2) All fees collected under this section shall be deposited in the State Treasury to the credit of the Railroad Fund established under ORS 824.014. Moneys deposited under this section are continuously appropriated to the Department of Transportation for the purpose of administering and enforcing the provisions of ORS 315.591 to 315.603. [2019 c.579 §11]

 

      315.601 [2019 c.579 §12; repealed by 2021 c.528 §28]

 

      315.603 Tax credit limit for biennium. The total amount of potential tax credits allowed under ORS 315.593 at the time of preliminary certification under ORS 315.595 may not exceed $4 million for any biennium. [2019 c.579 §13]

 

      315.604 [1993 c.730 §40 (enacted in lieu of 316.155 and 317.149); 2009 c.595 §204; repealed by 2011 c.83 §15]

 

      315.606 [2019 c.579 §14; repealed by 2021 c.528 §28]

 

HEALTH

 

      315.610 Long term care insurance. (1) A taxpayer shall be allowed a credit against the taxes otherwise due under ORS chapter 316 (or, if the taxpayer is a corporation, under ORS chapter 317 or 318) for premium costs actually paid or incurred during the tax year for a long term care insurance policy:

      (a) For long term care coverage of the taxpayer or a dependent or parent of the taxpayer; or

      (b) That is offered by the taxpayer to employees of the taxpayer that are employed in this state.

      (2) The amount of the credit allowed under this section shall equal the lesser of:

      (a) Fifteen percent of the total amount of long term care insurance premiums paid or incurred by the taxpayer during the tax year; or

      (b)(A) If the long term care insurance coverage is for the taxpayer and the dependents or parents of the taxpayer, $500; or

      (B) If the long term care insurance coverage is for Oregon-based employees of the taxpayer and their dependents or parents, $500 multiplied by the number of employees covered.

      (3) A credit may not be allowed under this section if the policy was first issued prior to January 1, 2000.

      (4) The credit allowed under this section may not exceed the tax liability of the taxpayer and may not be carried forward to another tax year.

      (5) In the case of a credit allowed under this section for purposes of ORS chapter 316:

      (a) A nonresident shall be allowed the credit under this section in the proportion provided in ORS 316.117.

      (b) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117.

      (c) Spouses in a marriage who file separate returns for a taxable year may each claim a share of the tax credit that would have been allowed on a joint return in proportion to the contribution of each.

      (d) If a change in the taxable year of a taxpayer occurs as described in ORS 314.085, or if the Department of Revenue terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed under this section shall be prorated or computed in a manner consistent with ORS 314.085.

      (6) As used in this section, “long term care insurance” has the meaning given that term in ORS 743.652. [1999 c.1005 §2; 2015 c.629 §38]

 

      Note: Section 38, chapter 913, Oregon Laws 2009, provides:

      Sec. 38. A credit may not be claimed under ORS 315.610 for tax years beginning on or after January 1, 2015. [2009 c.913 §38; 2015 c.701 §39]

 

      315.613 Credit available to persons providing rural medical care and affiliated with certain rural hospitals. (1) An annual credit against the taxes otherwise due under ORS chapter 316 shall be allowed to a resident or nonresident individual who is:

      (a) Certified as eligible under ORS 442.563;

      (b) Licensed under ORS chapter 677;

      (c) Engaged in the practice of medicine, and engaged for at least 20 hours per week, averaged over the month, during the tax year in a rural practice; and

      (d) Has adjusted gross income not in excess of $300,000 for the tax year. The limitation in this paragraph does not apply to a physician who practices as a general surgeon, specializes in obstetrics, specializes in family or general practice and provides obstetrical services or practices emergency medicine in a county that is a frontier rural practice county under rules adopted by the Office of Rural Health.

      (2) The amount of credit allowed shall be based on the distance from a major population center in a qualified metropolitan statistical area at which the taxpayer maintains a practice or hospital membership:

      (a) If at least 10 miles but fewer than 20 miles, $3,000.

      (b) If at least 20 miles but fewer than 50 miles, $4,000.

      (c) If 50 or more miles, $5,000.

      (3) The credit shall be allowed during the time in which the individual retains such practice and membership if the individual is actively practicing in and is a member of the medical staff of one of the following hospitals:

      (a) A type A hospital designated as such by the Office of Rural Health;

      (b) A type B hospital designated as such by the Office of Rural Health if the hospital is:

      (A) Not within the boundaries of a metropolitan statistical area;

      (B) Located 30 or more miles from the closest hospital within the major population center in a metropolitan statistical area; or

      (C) Located in a county with a population of less than 75,000;

      (c) A type C rural hospital, if the Office of Rural Health makes the findings required by ORS 315.619;

      (d) A rural critical access hospital; or

      (e) A hospital:

      (A) Classified by the Centers for Medicare and Medicaid Services as a rural referral center in accordance with 42 U.S.C. 1395ww(d)(5)(C)(i); and

      (B) Classified by the Centers for Medicare and Medicaid Services as a sole community hospital in accordance with 42 U.S.C. 1395ww(d)(5)(D)(iii).

      (4) In order to claim the credit allowed under this section, the individual must remain willing during the tax year to serve patients with Medicare coverage and patients receiving medical assistance in at least the same proportion to the individual’s total number of patients as the Medicare and medical assistance populations represent of the total number of persons determined by the Office of Rural Health to be in need of care in the county served by the practice, not to exceed 20 percent Medicare patients or 15 percent medical assistance patients.

      (5) A nonresident individual shall be allowed the credit under this section in the proportion provided in ORS 316.117. If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117.

      (6) For purposes of this section, an “individual’s practice” shall be determined on the basis of actual time spent in practice each week in hours or days, whichever is considered by the Office of Rural Health to be more appropriate. In the case of a shareholder of a corporation or a member of a partnership, only the time of the individual shareholder or partner shall be considered and the full amount of the credit shall be allowed to each shareholder or partner who qualifies in an individual capacity.

      (7) As used in this section:

      (a) “Qualified metropolitan statistical area” means only those counties of a metropolitan statistical area that are located in Oregon if the largest city within the metropolitan statistical area is located in Oregon.

      (b) “Rural critical access hospital” means a facility that meets the criteria set forth in 42 U.S.C. 1395i-4 (c)(2)(B) and that has been designated a critical access hospital by the Office of Rural Health and the Oregon Health Authority.

      (c) “Type A hospital,” “type B hospital” and “type C hospital” have the meaning for those terms provided in ORS 442.470. [Formerly 316.143; 2009 c.595 §205; 2013 c.750 §11; 2015 c.701 §19; 2015 c.829 §7a; 2016 c.29 §1; 2017 c.610 §14; 2019 c.495 §1; 2021 c.525 §3a]

 

      Note: Section 3, chapter 495, Oregon Laws 2019, provides:

      Sec. 3. The amendments to ORS 315.613 and 442.563 by sections 1 and 2 of this 2019 Act apply to tax years beginning on or after January 1, 2020. [2019 c.495 §3]

 

      Note: Section 25, chapter 913, Oregon Laws 2009, provides:

      Sec. 25. (1) Except as provided in subsection (2) of this section, a credit may not be claimed under ORS 315.613 for tax years beginning on or after January 1, 2028.

      (2) A taxpayer who meets the eligibility requirements in ORS 315.613 for the tax year beginning on or after January 1, 2027, and before January 1, 2028, shall be allowed the credit under ORS 315.613 for any tax year:

      (a) That begins on or before January 1, 2037; and

      (b) For which the taxpayer meets the eligibility requirements of ORS 315.613.

      (3) Notwithstanding subsection (2) of this section, a taxpayer may not during the taxpayer’s lifetime claim the credit allowed under this section for more than a total of 10 tax years that begin on or after January 1, 2018. [2009 c.913 §25; 2013 c.750 §10; 2015 c.701 §18; 2015 c.829 §7; 2017 c.610 §13; 2021 c.525 §3]

 

      315.616 Additional providers who may qualify for credit. A resident or nonresident individual who is certified as eligible under ORS 442.561, 442.562, 442.563 or 442.564, and is licensed as a physician under ORS chapter 677, licensed as a physician assistant under ORS chapter 677, licensed as a nurse practitioner under ORS chapter 678, licensed as a certified registered nurse anesthetist under ORS chapter 678, licensed as a dentist under ORS chapter 679 or licensed as an optometrist under ORS 683.010 to 683.340 is entitled to the tax credit described in ORS 315.613 even if not a member of the hospital medical staff if the Office of Rural Health certifies that the individual:

      (1) Is engaged for at least 20 hours per week, averaged over the month, during the tax year in a rural practice; and

      (2)(a) If a physician or a physician assistant, can cause a patient to be admitted to the hospital;

      (b) If a certified registered nurse anesthetist, is employed by or has a contractual relationship with one of the hospitals described in ORS 315.613 (1); or

      (c) If an optometrist, has consulting privileges with a hospital listed in ORS 315.613 (1). This paragraph does not apply to an optometrist who qualifies as a “frontier rural practitioner,” as defined by the Office of Rural Health. [Formerly 316.144; 2013 c.129 §25; 2013 c.750 §12]

 

      315.619 Credit for medical staff at type C hospital. A member of the medical staff of a type C hospital who meets the requirements of ORS 315.616 (1) and (2)(a) is entitled to the tax credit described in ORS 315.613 if:

      (1) The hospital is isolated due to geographic conditions, complies with rules relating to emergency response and is subject to such other special factors as the Office of Rural Health may prescribe; and

      (2) The hospital is designated by the Office of Rural Health as being subject to particular problems in recruiting and retaining medical staff and is located in an area that is medically underserved. [Formerly 316.146]

 

      315.622 Rural emergency medical services providers. (1) A resident or nonresident individual who is certified as eligible under ORS 442.561 to 442.570 and who is licensed as an emergency medical services provider under ORS chapter 682 shall be allowed a credit against the taxes that are otherwise due under ORS chapter 316 if the Office of Rural Health certifies that the individual provides volunteer emergency medical services in a rural area that comprise at least 20 percent of the total emergency medical services provided by the individual in the tax year.

      (2) The amount of the credit shall equal $250.

      (3) A nonresident shall be allowed the credit under this section in the proportion provided in ORS 316.117. If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117.

      (4) As used in this section, “rural area” means a geographic area that is located at least 25 miles from any city with a population of 30,000 or more.

      (5) The Office of Rural Health shall provide information to the Department of Revenue about all taxpayers that are eligible for a tax credit under this section, if required by ORS 315.058. [2005 c.832 §63; 2011 c.703 §31; 2019 c.483 §16]

 

      Note: Section 66, chapter 832, Oregon Laws 2005, provides:

      Sec. 66. ORS 315.622 applies to tax credit certifications issued by the Office of Rural Health on or after January 1, 2006, and before January 1, 2028. [2005 c.832 §66; 2009 c.913 §26; 2013 c.750 §16; 2019 c.579 §28; 2023 c.490 §10]

 

      315.624 Medical care to residents of Oregon Veterans’ Home. (1) A resident or nonresident individual physician licensed under ORS chapter 677 who is engaged in the practice of medicine qualifies for an annual credit against the taxes that are otherwise due under ORS chapter 316 if the physician provides medical care to residents of an Oregon Veterans’ Home, as defined in ORS 408.362.

      (2) The amount of the credit allowed under this section shall be equal to the lesser of:

      (a) $1,000 for every eight residents to whom the physician provides care at an Oregon Veterans’ Home; or

      (b) $5,000.

      (3) The credit allowed under this section may not exceed the tax liability of the taxpayer for the tax year, and a credit allowed under this section that is unused may not be carried forward to a succeeding tax year.

      (4) A nonresident shall be allowed the credit described in this section in the proportion provided in ORS 316.117. If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117.

      (5) In order to qualify for the tax credit allowed under this section, the physician claiming the credit must obtain a letter from the Oregon Veterans’ Home at which the physician provided care to residents, confirming that the physician missed no more than five percent of the physician’s scheduled visits with residents of the home during the tax year, and must retain the letter with the physician’s tax records.

      (6) In the case of a shareholder of a corporation or a member of a partnership, only the care provided by the individual shareholder or partner shall be considered, and the full amount of the credit shall be allowed to each shareholder or partner who qualifies in an individual capacity.

      (7) The Director of Veterans’ Affairs shall assist the Department of Revenue in determining if a taxpayer claiming a credit under this section qualifies for the credit and shall provide information if required by ORS 315.058 to the Department of Revenue about all physicians to whom the Oregon Veterans’ Home has issued letters as provided under subsection (5) of this section.

      (8) The director may order the suspension or revocation of a certificate issued under this section, as provided in ORS 315.061. [2007 c.843 §3; 2019 c.224 §8; 2019 c.483 §20]

 

      Note: Section 9 (1), chapter 843, Oregon Laws 2007, provides:

      Sec. 9. (1) ORS 315.624 applies to tax years beginning on or after January 1, 2008, and before January 1, 2028. [2007 c.843 §9; 2009 c.913 §52(1); 2015 c.701 §12(1); 2021 c.525 §17(1)]

 

      315.628 Health care services under TRICARE contract. (1) A health care provider who enters into a contract for the first time on or after January 1, 2007, to provide health care services permitted under a TRICARE contract to patients enrolled in the TRICARE military health care system shall be allowed a one-time credit against taxes otherwise due under ORS chapter 316 in the amount of $2,500.

      (2) A health care provider who has a contract to provide health care services permitted under a TRICARE contract to patients enrolled in the TRICARE military health care system shall be allowed a credit each tax year against taxes otherwise due under ORS chapter 316 in the amount of $1,000 if the health care provider actively participates in the TRICARE military health care system and each tax year provides health care services to at least 10 patients enrolled in the TRICARE military health care system. A health care provider who serves patients in a rural community, as defined by the Office of Rural Health, may provide health care services to fewer than 10 patients in a tax year and qualify for the credit.

      (3) A health care provider may not receive a credit under subsections (1) and (2) of this section in the same tax year.

      (4) A nonresident shall be allowed a credit under this section in the proportion provided in ORS 316.117. If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117. [2007 c.843 §5]

 

      Note: Section 8, chapter 843, Oregon Laws 2007, provides:

      Sec. 8. ORS 315.628 and 315.631 apply to tax years beginning on or after January 1, 2008, and before January 1, 2016. [2007 c.843 §8; 2009 c.913 §51]

 

      315.631 Certification of health care providers; reports. (1) The Office of Rural Health shall establish criteria for certifying health care providers as eligible for a tax credit authorized by ORS 315.628 or a deduction from federal taxable income under ORS 316.680. Upon finding that a health care provider meets the eligibility criteria established by the office, the office shall certify the provider for a tax credit under ORS 315.628 or the tax deduction under ORS 316.680. The office may issue no more than:

      (a) 500 certifications for tax years beginning on or after January 1, 2008, and before January 1, 2009;

      (b) 1,000 certifications for tax years beginning on or after January 1, 2009, and before January 1, 2010;

      (c) 1,500 certifications for tax years beginning on or after January 1, 2010, and before January 1, 2011; and

      (d) 2,000 certifications for tax years beginning on or after January 1, 2011, and before January 1, 2012.

      (2) Prior to October 1 of each year, the office shall report to the legislative interim committees on revenue regarding the number of health care providers who qualify for the tax credit under ORS 315.628 (2).

      (3) Prior to December 31 of each year, the administrator of the TRICARE contracts with health care providers who provide health care services to patients in Oregon shall make a report to the office regarding the number of patients that each health care provider has contracted to provide health care services. [2007 c.843 §6; 2008 c.3 §1]

 

      Note: See note under 315.628.

 

      Note: 315.631 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 315 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

HIGHER EDUCATION

 

      315.640 University venture development fund contributions. (1) There shall be allowed a credit against the taxes that are otherwise due under ORS chapter 316 or, if the taxpayer is a corporation, under ORS chapter 317 or 318, based on amounts contributed in the tax year to a university venture development fund established under ORS 350.550, to the extent the university that established the fund issued a tax credit certificate to the taxpayer.

      (2) The total amount of the credit allowed to a taxpayer shall equal 60 percent of the contribution amount stated on the tax credit certificate, but may not exceed $600,000.

      (3) The credit allowed under this section in any one tax year may not exceed the tax liability of the taxpayer for the tax year.

      (4) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a particular year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any credit remaining unused in such next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise, any credit not used in that second succeeding tax year may be carried forward and used in the third succeeding tax year, but may not be carried forward for any tax year thereafter.

      (5) In the case of a credit allowed under this section for purposes of ORS chapter 316:

      (a) A nonresident shall be allowed the credit in the same manner and subject to the same limitations as a resident. However, the credit shall be prorated using the proportion provided in ORS 316.117.

      (b) If a change in the tax year of a taxpayer occurs as described in ORS 314.085 or if the Department of Revenue terminates the taxpayer’s tax year under ORS 314.440, the credit shall be prorated or computed in a manner consistent with ORS 314.085.

      (c) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit shall be determined in a manner consistent with ORS 316.117.

      (6) A taxpayer claiming a credit under this section shall add to federal taxable income for Oregon tax purposes any amount that is deducted for federal tax purposes and that also serves as the basis for the credit allowed under this section.

      (7) All universities that issue tax credit certificates under this section shall provide information to the Department of Revenue about all taxpayers that are eligible for a tax credit under this section, if required by ORS 315.058. [Formerly 315.521]

 

      Note: Section 27, chapter 913, Oregon Laws 2009, provides:

      Sec. 27. A credit may not be claimed under ORS 315.640 if the initial tax year in which the credit would otherwise be allowed begins on or after January 1, 2030. [2009 c.913 §27; 2013 c.750 §43; 2016 c.31 §1; 2021 c.525 §4; 2023 c.490 §15]

 

      315.643 Opportunity Grant contributions; auction of tax credits; certification; rules. (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 Opportunity Grant contributions made by the taxpayer to the Opportunity Grant Fund established under ORS 348.266. A credit is allowed for the tax year in which a contribution is made, or for the tax year immediately preceding the tax year in which a contribution is made and for auctions conducted no later than April 15 following December 31 of any tax year for which the credit is allowed, if no return has yet been filed for the preceding tax year.

      (2)(a) The Department of Revenue shall, in cooperation with the Higher Education Coordinating Commission, conduct an auction of tax credits under this section. The auction may be conducted no later than April 15 following December 31 of any tax year for which the credit is allowed. 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 90 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. Moneys necessary to reimburse the commission for the actual costs incurred by the commission in administering an auction, not to exceed 0.25 percent of auction proceeds, are continuously appropriated to the commission. The department shall deposit net receipts from the auction required under this section in the Opportunity Grant Fund.

      (b) The commission may adopt rules necessary for the administration of the auction.

      (3) Contributions made under this section shall be deposited in the Opportunity Grant Fund.

      (4)(a) Upon receipt of a contribution, the commission shall, except as provided in ORS 315.646, 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 $14 million for the fiscal year in which certification is made.

      (b) The commission and the department are not liable, and a refund of a contributed amount need not be made, if a taxpayer that 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) To the extent the commission 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 commission shall refund that amount.

      (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, 2024.

      (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. [2018 c.108 §2; 2019 c.370 §2; 2021 c.528 §14]

 

      Note: Section 6, chapter 108, Oregon Laws 2018, provides:

      Sec. 6. (1) Except as provided in subsection (2) of this section, ORS 315.643, 315.646 and 348.267 apply to tax years beginning on or after January 1, 2018, and before January 1, 2023.

      (2) A taxpayer may claim a credit under ORS 315.643 for a tax year beginning in the 2023 calendar year, if the taxpayer has received certification issued for the credit at an auction conducted on or after January 1, 2023, and before March 1, 2023. [2018 c.108 §6; 2023 c.569 §1]

 

      315.646 Funding in lieu of tax credit certification. (1) In lieu of the issuance of certifications for tax credit under ORS 315.643 by the Higher Education Coordinating Commission, the Legislative Assembly may, no later than 30 days prior to the end of each fiscal year, appropriate to the commission for deposit into the Opportunity Grant Fund established under ORS 348.266 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 commission during the fiscal year.

      (2) If the Legislative Assembly makes the election allowed in subsection (1) of this section:

      (a) Any contributions to the Opportunity Grant Fund made for the upcoming fiscal year and for which an application for a credit under ORS 315.643 is pending shall, at the request of the taxpayer, be refunded by the commission; and

      (b) A credit under ORS 315.643 may not be claimed for any contribution made during the current fiscal year. [2018 c.108 §3]

 

      315.650 Higher education savings account or ABLE account contributions. (1) A credit against taxes otherwise imposed under ORS chapter 316 shall be allowed for amounts contributed by the taxpayer during the tax year to a savings network account for higher education established under ORS 178.300 to 178.360 or an ABLE account established under ORS 178.380. A taxpayer who makes contributions to both types of account may claim the credit for the amounts listed in subsection (2) of this section for each type of account.

      (2) The amount of the credit allowed under this section shall be limited based on the taxpayer’s adjusted gross income and shall be the lesser of $300, if reported on a joint return, or $150, if reported on any other type of return, or the following:

      (a) The amount contributed, if the taxpayer’s adjusted gross income does not exceed $30,000;

      (b) 50 percent of the amount contributed, if the taxpayer’s adjusted gross income exceeds $30,000 but does not exceed $70,000;

      (c) 25 percent of the amount contributed, if the taxpayer’s adjusted gross income exceeds $70,000 but does not exceed $100,000;

      (d) 10 percent of the amount contributed, if the taxpayer’s adjusted gross income exceeds $100,000 but does not exceed $250,000; or

      (e) 5 percent of the amount contributed, if the taxpayer’s adjusted gross income exceeds $250,000.

      (3)(a) The Department of Revenue shall annually adjust the maximum credit amounts allowable under this section according to the cost-of-living adjustment for the calendar year. The department shall first make this adjustment for a joint return by multiplying the maximum credit amount in subsection (2) of this section by the percentage (if any) by which the monthly averaged U.S. City Average Consumer Price Index for the 12 consecutive months ending August 31 of the prior calendar year exceeds the monthly averaged U.S. City Average Consumer Price Index for the 12 consecutive months ending August 31, 2018.

      (b) As used in this subsection, “U.S. City Average Consumer Price Index” means the U.S. City Average Consumer Price Index for All Urban Consumers (All Items) as published by the Bureau of Labor Statistics of the United States Department of Labor.

      (c) If any adjustment to the maximum credit amount for a joint return, as determined under paragraph (a) of this subsection, is not a multiple of $20, the adjustment shall be rounded to the next lower multiple of $20. The department shall then adjust the maximum credit amount for all other types of returns so that it is half the maximum credit amount for a joint return.

      (4) A credit under this section is allowed for a preceding tax year for amounts contributed to a savings network account for higher education or to an ABLE account if the contribution is made before the taxpayer files a return or before the 15th day of the fourth month following the closing of the taxpayer’s tax year, whichever is earlier.

      (5) A credit is not allowed under this section for any amount that has been transferred into a savings network account for higher education from an individual development account, through a rollover, as provided in ORS 458.685 (3)(a)(A).

      (6) If the amount allowable as a credit under this section, when added to the sum of the amounts allowable as payment of tax under ORS 316.187 (withholding), ORS 316.583 (estimated tax), other tax prepayment amounts and other refundable credit amounts, exceeds the taxes imposed by ORS chapters 314 and 316 for the tax year (reduced by any nonrefundable credits allowable for purposes of ORS chapter 316 for the tax year), the amount of the excess shall be refunded to the taxpayer as provided in ORS 316.502.

      (7) The credit shall be claimed on a form prescribed by the Department of Revenue that contains the information required by the department.

      (8) Spouses in a marriage 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 adjusted gross income of each.

      (9) In the case of a credit allowed under this section:

      (a) A nonresident shall be allowed the credit 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 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 shall be prorated or computed in a manner consistent with ORS 314.085. [2019 c.579 §2; 2021 c.525 §14]

 

      Note: Section 5, chapter 579, Oregon Laws 2019, provides:

      Sec. 5. ORS 315.650 and 315.653 apply to tax years beginning on or after January 1, 2020, and before January 1, 2030. [2019 c.579 §5; 2023 c.490 §12]

 

      315.653 Forfeiture of prior tax relief; disallowed withdrawal or distribution. (1) As provided in subsection (2) of this section, prior tax relief afforded a taxpayer by virtue of the credit allowed under ORS 315.650 shall be forfeited if any of the following are taken:

      (a) A nonqualified withdrawal from an account, as defined in ORS 178.300;

      (b) A withdrawal from a savings network account for higher education established under ORS 178.300 to 178.360 to pay expenses in connection with enrollment or attendance at an elementary or secondary school; or

      (c) A distribution from an ABLE account that is not a qualified disability expense of the designated beneficiary as provided in ORS 178.375 and 178.380 and rules adopted by the Oregon 529 Savings Board.

      (2) A taxpayer shall report the amount of a disallowed withdrawal or distribution in the tax year in which it is taken, and shall remit the taxes due as a result of the forfeited credit. The Department of Revenue shall by rule determine the calculation of forfeited credit amounts.

      (3) If a taxpayer does not report a disallowed withdrawal or distribution in the tax year that it is taken, and notwithstanding ORS 314.410, the department shall proceed to collect those taxes, including penalties and interest, not paid by the taxpayer as a result of the tax credit allowed the taxpayer. [2019 c.579 §3]

 

CULTURE

 

      315.675 Trust for Cultural Development Account contributions. (1) As used in this section, “cultural organization” means an entity that is:

      (a) Exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code; and

      (b) Organized primarily for the purpose of producing, promoting or presenting the arts, heritage, programs and humanities to the public or organized primarily for identifying, documenting, interpreting and preserving cultural resources.

      (2) A taxpayer shall be allowed a credit against the taxes otherwise due under ORS chapter 316 for amounts contributed during the tax year to the Trust for Cultural Development Account established under ORS 359.405.

      (3) A taxpayer that is a corporation shall be allowed a credit against the taxes otherwise due under ORS chapter 317 or 318 for amounts contributed during the tax year to the Trust for Cultural Development Account established under ORS 359.405.

      (4) The credit is allowable under this section only to the extent the taxpayer has contributed an equal amount to an Oregon cultural organization during the tax year.

      (5) The amount of the credit shall equal 100 percent of the amount contributed to the Trust for Cultural Development Account, but may not exceed the lesser of the tax liability of the:

      (a) Taxpayer under ORS chapter 316 for the tax year, or $1,000 for a taxpayer filing a joint return or $500 for a taxpayer filing any other type of return.

      (b) Taxpayer that is a corporation under ORS chapter 317 or 318 for the tax year or $2,500.

      (6) The credit allowed under this section may not be carried over to another tax year.

      (7) The credit allowed under this section is in addition to any charitable contribution deduction allowable to the taxpayer.

      (8) In the case of a credit allowed under this section for purposes of ORS chapter 316:

      (a) A nonresident shall be allowed the credit under this section in the proportion provided in ORS 316.117.

      (b) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed under this section shall be determined in a manner consistent with ORS 316.117.

      (c) Spouses in a marriage who file separate returns for a taxable year may each claim a share of the tax credit that would have been allowed on a joint return in proportion to the contribution of each.

      (d) If a change in the taxable year of a taxpayer occurs as described in ORS 314.085, or if the Department of Revenue terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed under this section shall be prorated or computed in a manner consistent with ORS 314.085. [2001 c.954 §18; 2015 c.629 §39; 2019 c.579 §19]

 

      Note: Section 19, chapter 954, Oregon Laws 2001, provides:

      Sec. 19. ORS 315.675 applies to tax years beginning on or after January 1, 2002, and before January 1, 2028. [2001 c.954 §19; 2009 c.913 §35; 2013 c.750 §8; 2019 c.579 §18; 2023 c.490 §8]

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