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 2276
A-Engrossed
House Bill 2716
Ordered by the House April 30
Including House Amendments dated April 30
Sponsored by Representatives ROSENBAUM, SHETTERLY;
Representatives BECK, DINGFELDER
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.
Changes working family child care tax credit to refundable
credit. Continuously appropriates moneys out of General Fund to
make credit payments. { + Adjusts method for determining minimum
earnings to qualify for credit. + }
Applies to tax years beginning on or after January 1,
{ - 2001 - } { + 2003 + }.
{ - Takes effect on 91st day following adjournment sine
die. - }
A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
315.262; and appropriating money.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 315.262 is amended to read:
315.262. (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
by the parent in a licensed or registered child care facility; or
(B) A child of the taxpayer 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) 'Earned income' has the meaning given that term in section
32 of the Internal Revenue Code.
(d) 'Qualified taxpayer' means a taxpayer:
(A) With at least $6,000 of earned income 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; and
(C) 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.
(e) 'Qualifying child' means a child of the taxpayer who is
under 13 years of age, or who is a disabled child, as that term
is defined in ORS 316.099.
(2) 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).
(3) 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:
_________________________________________________________________
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Applicable Federal Adjusted
Percentage Gross Income as Percent
of Federal Poverty Level
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
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
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
_________________________________________________________________
(4) The credit shall be claimed on such form and containing
such information as may be prescribed by the Department of
Revenue.
(5) 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.
(6) { + (a) + } { - The credit allowed under this section
shall not exceed the tax liability of the taxpayer and may not be
carried forward to a succeeding tax year. - } { + 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 this subsection.
(b) Except that refunds attributable to the child care tax
credit shall be made from the moneys transferred under paragraph
(c) of this subsection, any refund described in paragraph (a) of
this subsection shall be paid from the Department of Revenue
suspense account established under ORS 293.445.
(c) Moneys necessary to make refunds attributable to the child
care tax credit shall be transferred from and are continuously
appropriated from the General Fund to the Department of Revenue
suspense account established under ORS 293.445 for the purpose of
making the refunds required under this section. + }
(7)(a) For tax years beginning on or after January 1, 1999, the
minimum amount of earned income a taxpayer must earn in order to
be a qualified taxpayer shall be adjusted by multiplying $6,000
by the ratio of the U.S. City Average Consumer Price Index for
the average of the monthly indexes for the second quarter of the
calendar year over the average of the monthly indexes of 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. + }
SECTION 2. { + The amendments to ORS 315.262 by section 1 of
this 2001 Act apply to tax years beginning on or after January 1,
2003. + }
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