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 1910
A-Engrossed
House Bill 2280
Ordered by the House May 18
Including House Amendments dated May 18
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Representative Bill Witt)
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.
Allows credit { + equal to 10 percent of premiums + } against
personal income tax or corporate income or excise tax to be
claimed for long term care insurance premiums paid on policies
first issued prior to January 1, 2000.
Applies to tax years beginning on or after January 1,
{ - 2001 - } { + 2003 + }.
{ - Takes effect on 91st day following adjournment sine
die. - }
{ + Raises credit for policies first issued prior to January
1, 2000, to be same as 15 percent credit for policies first
issued on or after January 1, 2000, for tax years beginning on or
after January 1, 2005. + }
A BILL FOR AN ACT
Relating to taxation; creating new provisions; and amending ORS
315.610.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 315.610 is amended to read:
315.610. (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) { + (A) + } { - Fifteen - } { + For policies first
issued prior to January 1, 2000, 10 percent of the total amount
of long term care insurance premiums paid or incurred by the
taxpayer during the tax year; or
(B) For policies first issued on or after January 1, 2000,
15 + } 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) - } { + (3) + } 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) - } { + (4) + } 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) A husband and wife who file separate returns for a taxable
year may each claim a share of the tax credit that would have
been allowed on a joint return in proportion to the contribution
of each.
(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) - } { + (5) + } As used in this section, 'long term
care insurance' has the meaning given that term in ORS 743.652.
SECTION 2. { + The amendments to ORS 315.610 by section 1 of
this 2001 Act apply to tax years beginning on or after January 1,
2003. + }
SECTION 3. ORS 315.610, as amended by section 1 of this 2001
Act, is amended to read:
315.610. (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) (A) { - For policies first issued prior to January 1,
2000, 10 percent of the total amount of long term care insurance
premiums paid or incurred by the taxpayer during the tax year;
or - }
{ - (B) For policies first issued on or after January 1,
2000, 15 - } { + 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) 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.
(4) 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) A husband and wife who file separate returns for a taxable
year may each claim a share of the tax credit that would have
been allowed on a joint return in proportion to the contribution
of each.
(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.
(5) As used in this section, 'long term care insurance' has the
meaning given that term in ORS 743.652.
SECTION 4. { + The amendments to ORS 315.610 by section 3 of
this 2001 Act apply to tax years beginning on or after January 1,
2005. + }
----------