Chapter 292 Oregon Laws 2001

AN ACT

HB 2103

Relating to taxation; creating new provisions; amending ORS 318.031 and sections 36, 37, 38 and 39, chapter 835, Oregon Laws 1997; repealing sections 40, 42 and 43, chapter 835, Oregon Laws 1997, and sections 15, 17 and 27, chapter 1104, Oregon Laws 1999; appropriating money; and prescribing an effective date.

Be It Enacted by the People of the State of Oregon:

SECTION 1. Section 36, chapter 835, Oregon Laws 1997, as amended by section 10, chapter 1104, Oregon Laws 1999, is amended to read:

Sec. 36. As used in sections 36 to [40] 39, chapter 835, Oregon Laws 1997:

(1) “Business firm” has the meaning given that term in ORS 285B.650.

(2) “Certified business firm” means a business firm that has been certified under section 37, chapter 835, Oregon Laws 1997.

[(1)] (3) “County with chronically low income or chronic unemployment” means, based on the most recently revised annual average unemployment rate or annual per capita income levels available, a county in which:

(a) The median ratio of the per capita personal income of the county to the equivalent annual personal income figure of the entire United States for each year, as reported by the Bureau of Economic Analysis of the United States Department of Commerce, is equal to or less than 0.75 over the last 10 years;

(b) Both of the following criteria are satisfied:

(A) The median ratio of the unemployment rate of the county to the equivalent rate of the entire United States for each year is at least 1.3 over the last 20 years or over the last 10 years; and

(B) The current unemployment rate of the county is at least one percentage point higher than the unemployment rate of the county for the immediately prior year or at least 50 percent higher than the current unemployment rate of this state; or

(c) The population of the county has experienced a negative net migration, irrespective of natural population change, since the most recent federal decennial census occurring three or more years prior to the current estimated population figure for the county, based on available population statistics.

(4) “Facility” means the land, real property improvements and personal property that are used:

(a) At a location in a nonurban enterprise zone that is identified in the application for certification under section 37, chapter 835, Oregon Laws 1997; and

(b) In those business operations of the business firm that are the subject of the application for certification under section 37, chapter 835, Oregon Laws 1997.

[(2)] (5) “Nonurban enterprise zone” has the meaning given that term in ORS 285B.650.

[(3) “Taxing unit” means the State of Oregon or any county, city, municipal corporation, district or other government unit that has the power to tax.]

SECTION 2. Section 37, chapter 835, Oregon Laws 1997, as amended by section 11, chapter 1104, Oregon Laws 1999, is amended to read:

Sec. 37. (1) Any business firm proposing to apply for the tax exemption provided under section 38 [(1)], chapter 835, Oregon Laws 1997, shall, before the commencement of construction or installation of property or improvements at a [facility] location in a nonurban enterprise zone and before the hiring of employees, apply for certification with the sponsor of the zone and with the county assessor of the county or counties in which the zone is located. The application shall be made on a form prescribed by the Department of Revenue.

(2) The application shall contain the following information:

(a) A description of the firm’s proposed business operations and facility in the nonurban enterprise zone;

(b) A description and estimated cost or value of the property or improvements to be constructed or installed at the facility [in the nonurban enterprise zone];

(d) A commitment to meet [all] the applicable requirements of [subsection (8) of this section] section 3 of this 2001 Act;

(e) A commitment to satisfy all additional conditions [for certification that are imposed by] agreed to pursuant to the written agreement between the nonurban enterprise zone sponsor and the business firm under subsection (3)(c) of this section; and

(f) Any other information considered necessary by the Department of Revenue.

(3) The sponsor and the county assessor shall certify the business firm by approving the application if the sponsor and the county assessor determine that all of the following requirements have been met:

(a) The governing body of the county and city in which the facility is located has adopted a resolution approving the property tax exemption for the facility[;].

(b) The business firm has committed to meet the applicable requirements of [subsection (8) of this section;] section 3 of this 2001 Act.

(c) The business firm has entered into a written agreement with the sponsor of the nonurban enterprise zone that may include any additional requirements that the sponsor may reasonably request, including but not limited to contributions for local services or infrastructure benefiting the facility. [; and] The written agreement shall state the number of consecutive tax years for which the facility, following commencement of operations, is to be exempt from property tax under section 38, chapter 835, Oregon Laws 1997. The agreement may not provide for a period of exemption that is less than seven consecutive tax years or more than 15 consecutive tax years. If the agreement is silent on the number of tax years for which the facility is to be exempt following placement in service, the exemption shall be for seven consecutive tax years.

(d) The facility is located in a county with chronically low income or chronic unemployment, based on the most recently revised annual data available when the written agreement with the zone sponsor is [entered into] executed.

(4) The approval of an application by both the sponsor and the county assessor under subsection (3) of this section shall be prima facie evidence that the business firm will [be qualified] qualify for the property tax exemption under section 38 [(1) and (2)], chapter 835, Oregon Laws 1997.

[(5) The sponsor or the county assessor shall not be liable in any way if it is determined that the certified business firm has not satisfied the requirements of subsection (8) of this section.]

[(6)] (5) The sponsor and the county assessor shall provide copies of an approved application to the applicant, the Department of Revenue and the Economic and Community Development Department.

[(7)] (6) If the sponsor or the county assessor fails or refuses to certify the business firm, the business firm may appeal to the Oregon Tax Court under ORS 305.404 to 305.560. The business firm shall provide copies of the firm’s appeal to the sponsor, the county assessor, the Economic and Community Development Department and the Department of Revenue.

[(8) A business firm shall receive a property tax exemption from the county assessor under section 38 (1), chapter 835, Oregon Laws 1997, for property and improvements at a facility in a nonurban enterprise zone if, except as allowed under section 15 (1), (2) or (3) or section 17 (1) of this 1999 Act, all of the following conditions are met:]

[(a) By the end of the calendar year in which the facility is placed in service, the total costs of property and improvements at the facility after certification are or will be more than the lesser of:]

[(A) $50 million; or]

[(B) A figure equal to one percent of the value of all nonexempt taxable property in the county in which the facility is located, as reported by the Department of Revenue as net real market value at the time that the business firm is certified, and rounded to the nearest $10 million of such value.]

[(b) The business firm hires or will hire at least 75 full-time employees at the facility by the end of the fifth calendar year following the year in which the facility is placed in service. Unless the decrease in the number of employees is caused by circumstances beyond the taxpayer’s control, including force majeure, or is due to a temporary adverse business cycle, after the number of employees required by this paragraph are hired, the number of employees shall not fall below 75.]

[(c) The annual average compensation for employees, based on payroll, at the business firm’s facility is at least 150 percent of the average wage in the county in which the facility is located. This one-time requirement may be met in any year during the first five years after the year in which operation of the facility begins. Unless the decrease in the average compensation is caused by circumstances beyond the taxpayer’s control, including force majeure, the average compensation at the taxpayer’s facility shall not decrease to less than 150 percent of the average wage in the county in which the taxpayer’s facility is located, as determined for the year in which the one-time requirement was met.]

[(9) Upon meeting the requirements set forth in subsection (8) of this section, the business firm shall notify the county assessor in writing that the requirements of subsection (8) of this section have been met.]

[(10) The county assessor, for each tax year that the property at the facility is exempt from taxation under section 38 (1) or (2), chapter 835, Oregon Laws 1997, shall:]

[(a) Enter on the assessment roll, as a notation, the real market value and assessed value of the property as if it were not exempt under section 38 (1) or (2), chapter 835, Oregon Laws 1997.]

[(b) Enter on the assessment and the tax roll, as a notation, the amount of taxes that would be due if the property were not exempt.]

[(c) Indicate on the assessment and tax roll that the property is exempt and is subject to potential additional taxes as provided in section 39, chapter 835, Oregon Laws 1997, by adding the notation “enterprise zone exemption (potential additional tax).”]

SECTION 3. In order for a facility of a business firm to continue to be exempt from ad valorem property taxation under section 38, chapter 835, Oregon Laws 1997, for a tax year following the first assessment date on which the facility is in service, all of the conditions of any one of the alternative subsections in this section must be met:

(1) In order for the exemption under section 38 (1)(c), chapter 835, Oregon Laws 1997, to be allowable pursuant to this subsection:

(a) By the end of the calendar year in which the facility is placed in service, the total cost of the facility exceeds the lesser of $25 million or one percent of the real market value of all nonexempt taxable property in the county in which the facility is located, as determined for the assessment year in which the business firm is certified (and rounded to the nearest $10 million of such value);

(b) The business firm hires or will hire at least 75 full-time employees at the facility by the end of the fifth calendar year following the year in which the facility is placed in service; and

(c) The annual average compensation for employees, based on payroll, at the business firm’s facility is at least 150 percent of the average wage in the county in which the facility is located. This requirement may be initially met in any year during the first five years after the year in which operation of the facility begins, and thereafter is met if the annual average compensation at the facility for the year exceeds the average wage in the county for the year in which the requirement is initially met.

(2) In order for the exemption under section 38 (1)(c), chapter 835, Oregon Laws 1997, to be allowable pursuant to this subsection:

(a) The facility meets the total cost requirements set forth in subsection (1)(a) of this section;

(b) The business firm meets the annual average compensation requirements set forth in subsection (1)(c) of this section; and

(c)(A) The business firm hires or will hire at least 10 full-time employees at the facility by the end of the third calendar year following the year in which the facility is placed in service, and at the time that the business firm is certified, the location of the facility is in a county with a population of 10,000 or fewer; or

(B) The business firm hires or will hire at least 35 full-time employees at the facility by the end of the third calendar year following the year in which the facility is placed in service, and at the time that the business firm is certified, the location of the facility is in a county with a population of 40,000 or fewer.

(3) In order for the exemption under section 38 (1)(c), chapter 835, Oregon Laws 1997, to be allowable pursuant to this subsection:

(a) By the end of the calendar year in which the facility is placed in service, the total cost of the facility exceeds one-half of one percent of the real market value of all nonexempt taxable property in the county in which the facility is located, as determined for the assessment year in which the business firm is certified (and rounded to the nearest $10 million of such value);

(b) At the time that the business firm is certified, the location of the facility is 10 or more miles from Interstate Highway 5, as measured between the two closest points between the facility site and anywhere along that interstate highway;

(c) The business firm meets the annual average compensation requirements set forth in subsection (1)(c) of this section; and

(d)(A) The business firm hires or will hire at least 50 full-time employees at the facility by the end of the third calendar year following the year in which the facility is placed in service; or

(B) The business firm satisfies the requirements of subsection (2)(c)(A) or (B) of this section.

(4) In order for the exemption under section 38 (1)(c), chapter 835, Oregon Laws 1997, to be allowable pursuant to this subsection:

(a) Within three years either before or after the property tax year in which the facility is placed in service, the business firm places one or more other facilities in the same or another enterprise zone for which the business firm is certified and otherwise meets the requirements of sections 36 to 39, chapter 835, Oregon Laws 1997;

(b) The total cost of all facilities of the business firm exceeds $25 million by the end of the calendar year in which the last such facility is placed in service;

(c) The business firm meets the annual average compensation requirements set forth in subsection (1)(c) of this section independently for each facility of the firm; and

(d) The business firm hires or will hire a total of at least 100 full-time employees at all of the firm’s facilities by the end of the fifth calendar year following the year in which the first such facility is placed in service.

SECTION 4. Upon meeting the applicable requirements of section 3 of this 2001 Act, the certified business firm shall notify the county assessor in writing that the applicable requirements have been met.

SECTION 5. Section 38, chapter 835, Oregon Laws 1997, as amended by section 12, chapter 1104, Oregon Laws 1999, is amended to read:

Sec. 38. (1) [All of the property and improvements at the] A facility of a certified business firm [shall be] is exempt from ad valorem property taxation:

(a) For the first tax year following the calendar year in which the business firm is certified under section 37, chapter 835, Oregon Laws 1997, or after which construction or reconstruction of the facility commences, whichever event occurs later;

(b) For each subsequent tax year in which the facility is not yet in service as of the assessment date; and

(c) For a period of at least seven consecutive tax years but not more than 15 consecutive tax years, as provided in the written agreement between the business firm and the nonurban enterprise zone sponsor under section 37 (3)(c), chapter 835, Oregon Laws 1997, if the facility satisfies the requirements of [section 37 (8), chapter 835, Oregon Laws 1997. The exemption allowed under this subsection shall first apply to the ad valorem tax year immediately following the tax year in which the business firm’s facility is placed in service.] section 3 of this 2001 Act. The period described in this paragraph shall commence as of the first tax year in which the facility is in service as of the assessment date.

[(2) Prior to the ad valorem tax year specified in subsection (1) of this section, no ad valorem taxes shall be imposed by a taxing unit on or with respect to the facility site and any property thereon owned or leased by the taxpayer, beginning in the tax year that begins in the first calendar year after which the business firm is certified or after which construction or reconstruction of the facility commences, whichever event occurs later.]

[(3) Any exemption allowed under subsection (1) or (2) of this section shall be 100 percent of the assessed value of the property and improvements at the facility in each of the tax years for which the exemption is available.]

[(4) The exemption allowed under subsection (1) of this section is available for a period of at least 7 but not more than 15 consecutive tax years, as determined in the written agreement between the business firm and the enterprise zone sponsor under section 37 (3)(c), chapter 835, Oregon Laws 1997.]

[(5)] (2) An exemption [allowed] under [subsection (1) or (2) of] this section [shall] may not be allowed for real or personal property that has received a property tax exemption under ORS 285B.698.

(3) For each tax year that the facility is exempt from taxation under this section, the county assessor shall:

(a) Enter on the assessment and tax roll, as a notation, the real market value and assessed value of the facility.

(b) Enter on the assessment and tax roll, as a notation, the amount of tax that would be due if the facility were not exempt.

(c) Indicate on the assessment and tax roll that the property is exempt and is subject to potential additional taxes as provided in section 39, chapter 835, Oregon Laws 1997, by adding the notation “enterprise zone exemption (potential additional tax).”

(4) The amount determined under subsection (3)(b) of this section and the name of the business firm shall be reported to the Department of Revenue on or before December 31 of each tax year so that the department may compute the distributions described in section 12 of this 2001 Act.

SECTION 6. Section 39, chapter 835, Oregon Laws 1997, as amended by section 13, chapter 1104, Oregon Laws 1999, is amended to read:

Sec. 39. (1) If a certified business firm [that is certified under section 37, chapter 835, Oregon Laws 1997,] does not begin operations or is not reasonably expected to begin operations, as determined by the county assessor consistent with criteria established by rule of the Department of Revenue, or fails to meet the minimum requirements set forth in section [37 (8), chapter 835, Oregon Laws 1997] 3 of this 2001 Act, while receiving an exemption under section 38 [(1) or (2)], chapter 835, Oregon Laws 1997, the assessor shall, as of the next tax year, disqualify the property from the exemption. [exemption shall terminate on July 1 following the then current tax year and]

(2)(a) If a certified business firm that has achieved the minimum applicable full-time hiring requirements and annual average wage requirements at a facility under section 3 of this 2001 Act subsequently fails to maintain the applicable minimum number of full-time employees or the minimum annual average compensation level at the facility, the assessor shall disqualify the facility from exemption under section 38, chapter 835, Oregon Laws 1997.

(b) This subsection does not apply if the decrease in hiring or in annual average compensation is caused by circumstances beyond the control of the business firm, including force majeure.

(3) Upon disqualification, there shall be added to the tax extended against the property on the next general property tax roll, to be collected and distributed in the same manner as the remainder of ad valorem property taxes, an amount equal to the [difference between the taxes assessed against the property and improvements and the] taxes that would otherwise have been assessed against the property and improvements for each of the [consecutive] tax years [referred to in section 38 (4), chapter 835, Oregon Laws 1997, (or a lesser number of applicable years) and for any tax years] for which the property was exempt under section 38 [(2)], chapter 835, Oregon Laws 1997[, prior to the termination of the exemption under this section].

(4) The additional taxes described in this section shall be deemed assessed and imposed in the year to which the additional taxes relate.

SECTION 7. In order for a taxpayer to claim the property tax exemption under section 38, chapter 835, Oregon Laws 1997, or a corporate excise or income tax credit under section 8 of this 2001 Act:

(1) The written agreement between the business firm and the nonurban enterprise zone sponsor that is required under section 37 (3)(c), chapter 835, Oregon Laws 1997, must be entered into prior to the termination of the enterprise zone under ORS 285B.686; and

(2) The business firm must obtain certification under section 37, chapter 835, Oregon Laws 1997, on or before December 31, 2004.

SECTION 8. (1) As used in this section:

(a) “Facility” has the meaning given that term in section 36, chapter 835, Oregon Laws 1997.

(b) “Payroll costs” means the costs of paying employee salary, wages and other remuneration in cash or property, and employee benefit costs, including but not limited to workers’ compensation, health, life or other insurance premium payments, payroll taxes and contributions to pension or other retirement plans.

(2) A taxpayer that owns a facility that is exempt from property tax under section 38, chapter 835, Oregon Laws 1997, may claim a tax credit under this section against the taxes that are otherwise due under this chapter.

(3) The credit may be claimed over a period of consecutive tax years elected by the taxpayer:

(a) That must commence on or after the tax year in which the facility is placed in service and no later than the tax year beginning in the third calendar year after the year in which the facility is placed in service;

(b) The duration of which must be at least five tax years and no more than 15 tax years; and

(c) The duration of which must be established in writing by the Governor (pursuant to a request made by the taxpayer) prior to the date on which a return claiming the credit is filed.

(4) The amount of the credit for a tax year shall equal 62.5 percent of the payroll costs of the taxpayer for that tax year that are attributable to employment at the facility.

(5) The credit computed under subsection (4) of this section may be offset only against the qualified tax liability of the taxpayer, as determined under this subsection. To compute the qualified tax liability of the taxpayer:

(a) Subtract the tax credit threshold amount determined under subsection (7) of this section from the tax liability of the taxpayer under this chapter; and

(b) Multiply the difference determined under paragraph (a) of this subsection by the apportionment factor determined under subsection (6) of this section.

(6)(a) The apportionment factor to be used in computing the qualified tax liability of the taxpayer under subsection (5) of this section shall be a fraction, the numerator of which is income of the facility for the fiscal year of the taxpayer that ends in the tax year for which the qualified tax liability of the taxpayer is being computed, and the denominator of which is the total Oregon income of the taxpayer for the fiscal year of the taxpayer that ends in the tax year for which the qualified tax liability of the taxpayer is being computed. For purposes of this computation, income shall be determined in accordance with generally accepted accounting principles and shall be reviewed by an independent public accountant in a review that is conducted in accordance with the Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants.

(b)(A) If no data are prepared that meet the accounting and review standards set forth in paragraph (a) of this subsection, the apportionment factor shall be a fraction, the numerator of which is the sum of the intrastate payroll factor and the intrastate property factor, and the denominator of which is two.

(B) The intrastate payroll factor is a fraction, the numerator of which is the total amount paid for compensation at the qualifying facility during the tax year for which the qualified tax liability of the taxpayer is being computed, and the denominator of which is the total amount of compensation paid in this state during that tax year.

(C) The intrastate property factor is a fraction, the numerator of which is the average net book value of the facility for the tax year for which the qualified tax liability of the taxpayer is being computed, and the denominator of which is the average net book value of all real and tangible personal property owned or rented by the taxpayer in this state for that tax year.

(7) The tax credit threshold amount for the tax year for which the qualified tax liability of the taxpayer is being computed equals:

(a) $1 million; or

(b) If the facility is one described in section 3 (2) or (3) of this 2001 Act, the lesser of $1 million or:

(A) If the facility is one described in section 3 (2)(c)(A) of this 2001 Act, $10,000 multiplied by the number of verified full-time employees at the facility;

(B) If the facility is one described in section 3 (2)(c)(B) of this 2001 Act, $12,500 multiplied by the number of verified full-time employees at the facility; or

(C) If the facility is one described in section 3 (3) of this 2001 Act but not otherwise described under this paragraph, $15,000 multiplied by the number of verified full-time employees at the facility.

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

(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 qualified tax liability for the next succeeding tax year. Any credit remaining unused in the next succeeding tax year may be carried forward and used against the taxpayer’s qualified tax liability for the second succeeding tax year. Any credit remaining unused in the second succeeding tax year may be carried forward and used against the taxpayer’s qualified tax liability for the third succeeding tax year. Any credit remaining unused in the third succeeding tax year may be carried forward and used against the taxpayer’s qualified tax liability for the fourth succeeding tax year. Any credit remaining unused in the fourth succeeding tax year may be carried forward and used against the taxpayer’s qualified tax liability for the fifth succeeding tax year, but may not be used in any tax year thereafter.

(10) A tax credit allowed under this section is not in lieu of any deduction for depreciation, amortization, payroll costs or any other expense to which the taxpayer may be entitled.

SECTION 9. Notwithstanding any other provision of law creating a tax credit against corporate excise or income taxes, a taxpayer claiming a tax credit under section 8 of this 2001 Act may not claim any type of tax credit otherwise authorized by law against the tax credit threshold amount computed under section 8 (7) of this 2001 Act.

SECTION 10. Notwithstanding ORS 317.850, corporate income or excise tax payments of a taxpayer allowed a tax credit under section 8 of this 2001 Act shall be deposited in the Long Term Enterprise Zone Fund established in section 11 of this 2001 Act, to the extent those payments do not exceed an amount estimated by the Department of Revenue to equal 30 percent of the tax credit threshold amount determined under section 8 (7) of this 2001 Act plus 30 percent of any remaining qualified tax liability of the taxpayer under section 8 of this 2001 Act after allowance of the credit.

SECTION 11. (1) The Long Term Enterprise Zone Fund is established, separate and distinct from the General Fund.

(2) Amounts credited to the Long Term Enterprise Zone Fund are continuously appropriated to the Department of Revenue for the purpose of making the distributions to local taxing districts described in section 12 of this 2001 Act.

(3) Amounts in the Long Term Enterprise Zone Fund remaining unexpended on June 30 of the end of a biennium are transferred to the General Fund.

SECTION 12. (1) For each tax year in which a taxpayer claims a credit under section 8 of this 2001 Act, the Department of Revenue shall make the following distributions to the local taxing districts in which the facility that is the basis of the credit is located:

(a) Thirty percent of the tax credit threshold amount computed for the tax year, as determined under section 8 (7) of this 2001 Act; and

(b) Thirty percent of the qualifying tax liability of the taxpayer under section 8 of this 2001 Act that remains following allowance of the tax credit allowed under section 8 of this 2001 Act.

(2)(a) Amounts to be distributed under subsection (1) of this section shall be distributed to the local taxing districts of the code area in which the facility is located that are not school districts, education service districts, community college districts or community college service districts.

(b) If the facility is located in more than one code area, amounts to be distributed under this section shall be allocated to each code area in which the facility is located, based on the ratio of the real market value of the facility in each code area to the total real market value of the facility.

(c) The amount distributed to each district under this section shall be the amount that bears the same proportion to the total amount to be distributed under this section as the proportion of the operating tax billing rate of the district receiving distribution bears to the total operating tax billing rate of all of the local taxing districts described in paragraph (a) of this subsection.

(d) Notwithstanding paragraph (b) of this subsection, the amount distributed to a local taxing district under this section for a fiscal year may not exceed the amount of property taxes forgone by that district as a result of the exemption from property tax under section 38, chapter 835, Oregon Laws 1997.

(3) If any moneys described in subsection (1) of this section remain following computation of the distributions to local taxing districts under subsection (2) of this section, the moneys shall be distributed to the zone sponsor.

(4) Distributions shall be made under this section on or before June 1 of each fiscal year.

SECTION 13. ORS 318.031 is amended to read:

318.031. It being the intention of the Legislative Assembly that this chapter and the Corporation Excise Tax Law of 1929 shall be administered as uniformly as possible (allowance being made for the difference in imposition of the taxes and the operative date of this chapter), the provisions of ORS 305.140 and 305.150 and ORS chapter 314 and of the following sections of ORS chapter 315 or 317, as amended on or before August 3, 1955, and as they may thereafter be amended, are incorporated into this chapter by this reference and made a part hereof: ORS 315.104, 315.134, 315.156, 315.204, 315.208, 315.234, 315.254, 315.304, 315.504 and 315.604 (all only to the extent applicable for a corporation) and ORS 317.010, 317.013, 317.018 to 317.022, 317.030, 317.035, 317.038, 317.080, 317.152 to 317.154, 317.259 to 317.303, 317.310 to 317.386, 317.476 to 317.485, 317.510 to 317.635 and 317.705 to 317.725 and [section 40, chapter 835, Oregon Laws 1997, and] section 4, chapter 358, Oregon Laws 1999, and sections 8 to 12 of this 2001 Act.

SECTION 14. Sections 3, 4 and 7 of this 2001 Act are added to and made a part of sections 36 to 39, chapter 835, Oregon Laws 1997.

SECTION 15. Sections 8 to 12 of this 2001 Act are added to and made a part of ORS chapter 317.

SECTION 16. Sections 40, 42 and 43, chapter 835, Oregon Laws 1997, and sections 15, 17 and 27, chapter 1104, Oregon Laws 1999, are repealed.

SECTION 17. (1) The repeal of section 40, chapter 835, Oregon Laws 1997, and sections 15 and 17, chapter 1104, Oregon Laws 1999, does not alter the right of a taxpayer to claim a tax credit under section 40, chapter 835, Oregon Laws 1997, or pursuant to section 15 or 17, chapter 1104, Oregon Laws 1999, for a tax year beginning before January 1, 2001.

(2) Any business firm that, as of the effective date of this 2001 Act, has met the applicable requirements of section 37, chapter 835, Oregon Laws 1997, as amended and in effect prior to the effective date of this 2001 Act, or that has met the requirements of section 15 or 17, chapter 1104, Oregon Laws 1999, shall be deemed to have met the applicable requirements of section 3 of this 2001 Act.

SECTION 18. Sections 8 to 12 of this 2001 Act apply to corporate excise and income tax years beginning on or after January 1, 2001.

SECTION 19. This 2001 Act takes effect on the 91st day after the date on which the regular session of the Seventy-first Legislative Assembly adjourns sine die.

Approved by the Governor June 4, 2001

Filed in the office of Secretary of State June 4, 2001

Effective date October 6, 2001

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