71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1878
House Bill 2005
Sponsored by Representative SIMMONS; Representative BACKLUND
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Allows tax credit based upon contributions to Oregon higher
education institutions, to public and private nonsectarian
educational programs for any grade from kindergarten through
grade 12 and to scholarship and student aid programs.
Applies to contributions made in tax years beginning on or
after January 1, 2002.
A BILL FOR AN ACT
Relating to tax credit for education; creating new provisions;
and amending ORS 314.752 and 318.031.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2001 Act is added to and made
a part of ORS chapter 315. + }
SECTION 2. { + (1)(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, is allowed for contributions in money
actually made during the tax year by the taxpayer to any of the
following in this state:
(A) A state institution of higher education, Oregon Health
Sciences University, a community college or a school approved by
the Oregon Student Assistance Commission through the Office of
Degree Authorization to confer a degree upon a person or to
provide academic credit applicable to a degree.
(B) A school district, a public charter school or a
nonsectarian school registered as a private school with the
Department of Education.
(C) A formal, community-based Oregon scholarship or student aid
program that is tax exempt under section 501(c)(3) of the
Internal Revenue Code or for which the contributions are
deductible under section 170(c)(1) of the Internal Revenue Code.
(b) As used in this subsection, 'approved' does not include an
approval that is revoked as of the date the contribution is made.
(2) The amount of the credit allowed under this section is 50
percent of the contributions made during the tax year or 50
percent of the tax liability of the taxpayer before any other
credits are used to reduce tax liability, whichever is less. The
credit allowed under this section may not exceed $1,000 on a
joint return or $500 on any other return.
(3) For purposes of ORS chapter 316, a resident or nonresident
may take the credit allowed under this section, without
proration.
(4) If, for the tax year, a deduction is taken under ORS
chapter 316, 317 or 318 for the same contributions that are used
to determine the amount of a credit claimed under this section,
the dollar amount of the deduction shall be reduced by the dollar
amount of the credit.
(5) The Department of Revenue may adopt rules to carry out this
section, including but not limited to rules on substantiation
requirements. + }
SECTION 3. ORS 314.752 is amended to read:
314.752. (1) Except as provided in ORS 314.740 (5)(b), the tax
credits allowed or allowable to a C corporation for purposes of
ORS chapter 317 or 318 shall not be allowed to an S corporation.
The business tax credits allowed or allowable for purposes of ORS
chapter 316 shall be allowed or are allowable to the shareholders
of the S corporation.
(2) In determining the tax imposed under ORS chapter 316, as
provided under ORS 314.734, on income of the shareholder of an S
corporation, there shall be taken into account the shareholder's
pro rata share of business tax credit (or item thereof) that
would be allowed to the corporation (but for subsection (1) of
this section) or recapture or recovery thereof. The credit (or
item thereof), recapture or recovery shall be passed through to
shareholders in pro rata shares as determined in the manner
prescribed under section 1377(a) of the Internal Revenue Code.
(3) The character of any item included in a shareholder's pro
rata share under subsection (2) of this section shall be
determined as if such item were realized directly from the source
from which realized by the corporation, or incurred in the same
manner as incurred by the corporation.
(4) If the shareholder is a nonresident and there is a
requirement applicable for the business tax credit that in the
case of a nonresident that the credit be allowed in the
proportion provided in ORS 316.117, then that provision shall
apply to the nonresident shareholder.
(5) As used in this section, 'business tax credit' means a tax
credit granted to personal income taxpayers to encourage certain
investment, to create employment, economic opportunity or
incentive or for charitable, educational, scientific, literary or
public purposes that is listed under this subsection as a
business tax credit or is designated as a business tax credit by
law or by the Department of Revenue by rule and includes but is
not limited to the following credits: ORS 315.104 (forestation
and reforestation), ORS 315.134 (fish habitat improvement), ORS
315.138 (fish screening, by-pass devices, fishways), ORS 315.156
(crop gleaning), ORS 315.164 (farmworker housing), ORS 315.204
(dependent care assistance), ORS 315.208 (dependent care
facilities), ORS 315.234 (child development program
contributions), ORS 315.254 (youth apprenticeship sponsorship),
ORS 315.304 (pollution control facility), ORS 315.324 (plastics
recycling), ORS 315.354 and ORS 469.207 (energy conservation
facilities), ORS 315.504 (Oregon Capital Corporation), ORS
315.604 (bone marrow transplant expenses) and ORS 317.115
(fueling stations necessary to operate an alternative fuel
vehicle) { + and section 2 of this 2001 Act (education and
student aid) + }.
SECTION 4. 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 { + and section 2 of this 2001 Act + } (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.
SECTION 5. { + Section 2 of this 2001 Act and the amendments
to ORS 314.752 and 318.031 by sections 3 and 4 of this 2001 Act
apply to contributions made in tax years beginning on or after
January 1, 2002. + }
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