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 3191
A-Engrossed
House Bill 3173
Ordered by the House April 23
Including House Amendments dated April 23
Sponsored by COMMITTEE ON BUSINESS, LABOR, AND CONSUMER AFFAIRS
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.
Increases amount allowed in tax credits for all approved
seasonal or year-round farmworker housing projects during
calendar year and percentage of eligible costs actually paid or
incurred by owner or operator of seasonal or year-round
farmworker housing that may be claimed as tax credit.
Requires owner or operator to show that housing is used as
seasonal or year-round farmworker housing for 10 years following
completion of housing project.
Extends length of time owner or operator may claim credit.
Allows owner or operator to transfer portion of tax credit to
person that contributed to housing through construction,
manufacturing, installation or contribution of money.
Repeals sunset of tax credit for lending institution that makes
loans for seasonal or year-round farmworker housing. Allows
public benefit or other nonprofit corporation to claim tax
credit.
Applies to tax years beginning on or after January 1, 2002.
A BILL FOR AN ACT
Relating to tax credits for farmworker housing; creating new
provisions; and amending ORS 314.752, 315.164, 315.167 and
317.147 and section 6, chapter 963, Oregon Laws 1989, and
section 5, chapter 766, Oregon Laws 1991.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 315.164 is amended to read:
315.164. (1) As used in this section { + and sections 3 and 4
of this 2001 Act + }:
(a) '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.
{ + (b) 'Contributor' means a person that constructed,
manufactured, installed or contributed money to finance a
seasonal or year-round farmworker housing project. + }
{ - (b) - } { + (c) + } 'Eligible costs' includes finance
costs, construction costs, excavation costs, installation costs
and permit costs and excludes land costs. { +
(d) 'Owner' means a person that owns seasonal or year-round
farmworker housing and does not include a person that only has an
interest in the housing as a holder of a security interest. + }
{ - (c) - } { + (e) + } 'Rehabilitation' means to restore
and reinstate a building to a condition of habitability.
{ - (d) - } { + (f) + } '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.
{ - (e) - } { + (g) + } 'Seasonal farmworker' means any
person who, for an agreed remuneration or rate of pay, performs
temporary labor for another in the production of farm products or
in the planting, cultivating or harvesting of seasonal
agricultural crops or in the 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.
{ - (f) - } { + (h) + } 'Seasonal farmworker housing' means
housing limited to occupancy by seasonal farmworkers and their
immediate families which is occupied no more than nine months of
the year.
{ - (g) - } { + (i) + } 'Seasonal farmworker housing
project' means construction, installation or rehabilitation of
seasonal farmworker housing.
{ - (h) - } { + (j) + } 'Year-round farmworker housing'
means housing:
(A) Limited to occupancy by farmworkers and their immediate
families;
(B) No dwelling unit of which is occupied by a relative of the
owner or operator of the farmworker housing; and
(C) Consisting, if located in an exclusive farm use zone, of
housing that is in compliance with any applicable local zoning
ordinance and that is:
(i) A manufactured dwelling, as that term is defined in ORS
446.003; or
(ii) Any other dwelling unit, if the project for which credit
under this section is being claimed consists of the
rehabilitation of existing farmworker housing.
{ - (i) - } { + (k) + } 'Year-round farmworker housing
project' means construction, installation or rehabilitation of
farmworker housing.
(2) A { - resident individual - } { + taxpayer who is the
owner or operator of seasonal or year-round farmworker
housing + } is allowed a credit against the taxes otherwise due
under ORS chapter 316 { + , if the taxpayer is a resident
individual, + } or { - , if the taxpayer is a corporation, the
credit shall be allowed - } 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 { - 30 - } { + 50 + } percent of the eligible costs
actually paid or incurred to complete a seasonal or year-round
farmworker housing project, to the extent the eligible costs
actually paid or incurred do not exceed the estimate of eligible
costs approved by the Department of Consumer and Business
Services under ORS 315.167.
{ + (3) A taxpayer claiming a credit under this section may
elect to transfer a portion of the credit to a contributor in the
manner provided in section 3 of this 2001 Act. No more than 80
percent of the credit may be transferred. + }
{ - (3) The credit allowed under subsection (2) of this
section shall be taken in five equal installments over a period
of five consecutive tax years beginning in the tax year of the
taxpayer during which the project is completed. - }
{ + (4)(a) The credit allowed under this section may be taken
for the tax year in which the seasonal or year-round farmworker
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.
(5)(a) To claim a credit under this section, a taxpayer must
show in each year following the completion of a seasonal or
year-round farmworker housing project that the housing continues
to be operated as seasonal or year-round farmworker housing.
(b) A taxpayer need not make the showing required in paragraph
(a) of this subsection if the Department of Consumer and Business
Services waives the requirement after the taxpayer has
successfully met the requirement for the first five years after
completion of the housing project.
(c) The Department of Consumer and Business Services shall
determine by rule the factors necessary to grant a waiver. Such
factors may include a documented decline in a particular area for
farmworker housing. + }
{ - (4) - } { + (6) + } The credit shall apply only to a
seasonal or a year-round farmworker housing project that is
located within this state and physically begun on or after
January 1, 1990.
{ - (5)(a) - } { + (7)(a) + } { - No credit shall - }
{ + 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 Department of
Consumer and Business Services pursuant to ORS 315.167; and
(B) Files with the Department of Revenue an annual
certification providing that all occupied units for which credit
is being claimed are occupied by seasonal or year-round
farmworkers 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
Department of Revenue.
{ - (6) - } { + (8) + } Except as provided under subsection
{ - (7) - } { + (9) + } of this section, the credit allowed in
any one year { - shall - } { + may + } not exceed the tax
liability of the taxpayer.
{ - (7) - } { + (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 { - such - } { + 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, and any credit not used in that ninth
succeeding tax year may be carried forward and used in the tenth
succeeding tax year, + } but may not be carried forward for any
tax year thereafter.
{ - (8)(a) - } { + (10)(a) + } The credit provided by this
section is not in lieu of any depreciation or amortization
deduction for the project to which the taxpayer otherwise may be
entitled under ORS chapter 316 or 317 for { - such - } { +
the + } year.
(b) The taxpayer's adjusted basis for determining gain or loss
{ - shall - } { + may + } not be further decreased by any tax
credits allowed under this section.
{ - (9)(a) If the taxpayer is a person who is not, and will
not be, the owner or operator of the seasonal or year-round
farmworker housing, the taxpayer is entitled to the credit
allowed under this section only if, upon completion of the
seasonal or year-round farmworker housing project and first
occupation by farmworkers, the housing complies with all safety
or health laws, rules, regulations and standards applicable for
farmworker housing. - }
{ - (b) If the taxpayer is a person who is, or will be, the
owner or operator of the seasonal or year-round farmworker
housing at any time during the period for which the credit is
claimed, the housing must: - }
{ + (11) For a taxpayer to receive a credit under this
section, the seasonal or year-round farmworker housing must: + }
{ - (A) - } { + (a) + } Comply with all occupational safety
or health laws, rules, regulations and standards;
{ - (B) - } { + (b) + } If registration is required, be
registered as a farmworker camp with the Department of Consumer
and Business Services under ORS 658.750; { - and - }
{ - (C) - } { + (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 seasonal or year-round
farmworker housing for a period of at least 10 years after the
completion of the seasonal or year-round farmworker housing
project, unless a waiver has been granted under subsection (5) of
this section + }.
{ - (c) For purposes of this section, 'owner' does not
include a person whose only interest in the housing is as holder
of a security interest. - }
{ - (10)(a) - } { + (12)(a) + } Pursuant to the procedures
for a contested case under ORS 183.310 to 183.550, the Department
of Revenue may order the disallowance of the credit allowed under
this section if it finds, by order, that:
(A) The credit was obtained by fraud or misrepresentation; or
(B) In the event that an owner or operator claims or claimed
the credit:
(i) The taxpayer has failed { + to continue to + }
substantially { - to - } comply with the occupational safety or
health laws, rules, regulations or standards; { - or - }
(ii) After occupancy and if registration is required, the
seasonal or year-round farmworker housing is not registered as a
farmworker camp with the Department of Consumer and Business
Services under ORS 658.750; { - or - }
(iii) After occupancy and if an indorsement is required, the
seasonal or year-round farmworker housing is not operated by a
person who holds a valid indorsement as a farmworker camp
operator under ORS 658.730 { + ; or
(iv) The taxpayer has failed to make a showing that the housing
continues to be operated as seasonal or year-round farmworker
housing as required under subsection (5)(a) of this section and
the taxpayer has not been granted a waiver by the Department of
Consumer and Business Services under subsection (5)(c) of this
section + }.
(b) If the tax credit is disallowed pursuant to this
subsection, notwithstanding ORS 314.410 or other law, all prior
tax relief provided to the taxpayer shall be forfeited and the
department shall proceed to collect those taxes not paid by the
taxpayer as a result of the prior granting of the credit.
(c) If the tax credit is disallowed pursuant to this
subsection, the taxpayer shall be denied any further credit
provided under this section, in connection with the seasonal or
year-round farmworker housing project, as the case may be, from
and after the date that the order of disallowance becomes final.
{ - (11) - } { + (13) + } In the event that the farmworker
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 department. Upon conviction of arson, the
department shall disallow the credit in accordance with
subsection { - (10) - } { + (12) + } of this section.
{ - (12)(a) - } { + (14)(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 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.
{ - (13) - } { + (15) + } The department may adopt rules
for carrying out the provisions of this section.
SECTION 2. { + Sections 3 and 4 of this 2001 Act are added to
and made a part of ORS chapter 315. + }
SECTION 3. { + (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 seasonal or year-round farmworker housing transferred
a portion of the credit allowed to the owner or operator under
ORS 315.164.
(2) An owner or operator of seasonal or year-round farmworker
housing may transfer a portion of the credit allowed to the owner
or operator under ORS 315.164 to one or more contributors in
portions that do not total more than 80 percent of the total
credit the owner or operator may claim.
(3) To receive a credit under this section:
(a) The owner or operator and contributor must jointly file a
statement with the Department of Revenue stating the portion of
credit the contributor is allowed to claim and any other
information the department may require by rule; and
(b) The contributor must show that upon completion of the
seasonal or year-round farmworker housing project and first
occupation by farmworkers, the housing complies with all
occupational safety or health laws, rules, regulations and
standards applicable for farmworker housing.
(4) A contributor remains eligible to receive a credit under
this section even if the owner or operator of the seasonal or
year-round farmworker 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 (11);
(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 farmworker
housing after the contributor has completed work on the project.
(5)(a) A contributor does not remain eligible to receive a
credit under this section if the department finds, by order of a
disallowance of credit and pursuant to the procedures for a
contested case under ORS 183.310 to 183.550, that the contributor
obtained the credit by fraud or misrepresentation, including a
finding that the housing did not comply with all occupational
safety or health laws, rules, regulations and standards
applicable for farmworker housing at the time the housing was
completed.
(b) If the credit is disallowed pursuant to this subsection,
notwithstanding ORS 314.410 or other law, all prior tax relief
provided to the taxpayer shall be forfeited and the department
shall proceed to collect those taxes not paid by the taxpayer as
a result of the prior granting of the credit.
(c) If the credit is disallowed pursuant to this subsection,
the taxpayer shall be denied any further credit provided under
this section, in connection with the seasonal or year-round
farmworker housing project, as the case may be, from and after
the date that the order of disallowance becomes final.
(6)(a) The credit allowed under this section may be taken for
the tax year in which the seasonal or year-round farmworker
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.
(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
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, 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, and any credit not used in that ninth
succeeding tax year may be carried forward and used in the tenth
succeeding tax year, but may not be carried forward for any tax
year thereafter.
(9)(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 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.
(10) The department may adopt rules for carrying out the
provisions of this section. + }
SECTION 4. { + Upon an order of the disallowance of a credit
for seasonal or year-round farmworker housing under ORS 315.164
(12) or section 3 (5) of this 2001 Act, the Department of Revenue
immediately shall collect any taxes due by reason of the
disallowance and shall have the benefit of all the laws of this
state pertaining to the collection of income and excise taxes. An
assessment of the taxes is not necessary and a statute of
limitation shall not preclude the collection of the taxes. + }
SECTION 5. ORS 315.167 is amended to read:
315.167. (1) Prior to beginning a seasonal or year-round
farmworker housing project for which credit under ORS 315.164
will be claimed, a taxpayer shall apply to the Department of
Consumer and Business Services for a letter of credit approval.
(2) The application shall be on such form as is prescribed by
the Department of Consumer and Business Services and shall
provide:
(a) The name, address and taxpayer identification number of the
taxpayer;
(b) The location of the proposed farmworker housing;
(c) A description of the project identifying the type of
housing that is the subject of the project;
(d) An estimate of the eligible costs of the project; and
(e) Any other information as the Department of Consumer and
Business Services may require.
(3) The Department of Consumer and Business Services shall
consider applications in the chronological order in which the
applications are filed with the department.
(4) Applications filed in compliance with this section shall be
approved by the Department of Consumer and Business Services to
the extent that the total of estimated eligible costs for all
approved projects for the calendar year is equal to or less than
{ - $3.3 - } { + $7.5 + } million. No application shall be
approved if the addition of the estimated eligible costs of the
project to the estimated eligible costs for all approved projects
for the calendar year would exceed { - $3.3 - } { + $7.5 + }
million.
(5) Upon approval of an application, the Department of Consumer
and Business Services shall send a letter of credit approval to
the taxpayer. The letter of credit approval shall state the
approved amount of estimated eligible costs for the project.
(6) At the conclusion of each calendar year, the Department of
Consumer and Business Services 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 project, to the Department of
Revenue.
(7) 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.
SECTION 6. ORS 317.147 is amended to read:
317.147. (1) As used in this section:
(a) ' { - Commercial - } Lending institution' means a bank,
mortgage banking company, trust company, savings bank, savings
and loan association, credit union, national banking association,
federal savings and loan association { + , + } { - or - }
federal credit union maintaining an office in this state { + ,
nonprofit community development financial institution or
nonprofit public benefit corporation operating as a lending
institution + }.
(b) 'Seasonal farmworker housing' has the meaning given the
term under ORS 315.164.
(c) 'Year-round farmworker housing' has the meaning given the
term under ORS 315.164.
(2)(a) A { - commercial - } lending institution shall be
allowed a credit against the taxes otherwise due under this
chapter for the tax year equal to { - 30 - } { + 50 + }
percent of the interest income earned during the tax year on
loans to finance only costs directly associated with construction
or rehabilitation of seasonal or year-round farmworker housing
if, at the time the loan is made, the borrower certifies, to the
satisfaction of the lender, that upon completion of the
construction or rehabilitation and first occupation by
farmworkers, the housing will comply with all { +
occupational + } safety or health laws, rules, regulations and
standards applicable for farmworker housing and that the housing
will be occupied only by seasonal or year-round farmworkers and
their immediate families.
(b) A copy of the certification described under paragraph (a)
of this subsection shall be submitted to the Department of
Revenue at the time that a credit under this section is first
claimed.
(3) The credit allowed under this section shall apply only to
loans to construct or rehabilitate seasonal or year-round
farmworker housing located within this state.
(4) This credit shall apply only to loans made on or after
January 1, 1990.
(5) The credit allowed in any one year { - shall - } { +
may + } not exceed the tax liability of the taxpayer.
(6) If the loan has a term of longer than 10 years, then the
credit shall be allowed only for the tax year of the taxpayer
during which the loan is made and the nine tax years immediately
following.
(7) The credit allowed under this section shall not apply to
loans in which the interest rate charged exceeds 13-1/2 percent
per annum.
(8) The credit allowed under this section shall apply only to
interest income from the loan and shall not apply to any other
loan fees or other charges collected by the { - commercial - }
lending institution with respect to the loan.
(9) The credit allowed under this section shall only apply to
interest income actually collected by the { - commercial - }
lending institution during the tax year.
(10)(a) Except as provided in paragraph (b) of this subsection,
if the { - commercial - } lending institution sells the loan
to another { - commercial - } lending institution { - as
defined in subsection (1) of this section - } , then the credit
shall pass to the assignee or transferee of the loan, subject to
the same conditions and limitations as set forth in this section.
(b) A { - commercial - } lending institution may assign,
sell or otherwise transfer the loan to another person and retain
the right to claim the credit granted under this section if the
{ - commercial - } lending institution also retains
responsibility for servicing the loan.
{ + (c)(A) A lending institution that is not subject to
taxation under this chapter may sell or otherwise transfer the
credit allowed to the lending institution under this section to a
taxpayer that is subject to taxation under this chapter.
(B) A transferee of a credit under this section shall be
allowed the credit for the tax years that would have been
allowable to the transferor had the transfer not occurred.
(C) The Department of Revenue shall by rule establish
procedures for transferring a credit under this section. + }
SECTION 7. Section 6, chapter 963, Oregon Laws 1989, as amended
by section 56, chapter 746, Oregon Laws 1995, is amended to read:
{ + Sec. 6. + } (1) ORS 315.164 shall apply to seasonal or
year-round farmworker housing projects completed in tax years
that begin on or after the January 1 immediately following the
date that both chapter 962, Oregon Laws 1989, and chapter 964,
Oregon Laws 1989, have become both effective and operative
{ - and which are completed on or before December 31, 2001 - } .
(2) ORS 317.147 applies to loans made in tax years that begin
on or after the January 1 immediately following the date that
both chapter 964, Oregon Laws 1989, and chapter 962, Oregon Laws
1989, have become both effective and operative { - and which
are made on or before December 31, 2001 - } .
SECTION 8. Section 5, chapter 766, Oregon Laws 1991, as amended
by section 58, chapter 746, Oregon Laws 1995, is amended to read:
{ + Sec. 5. + } ORS 315.164 shall apply to seasonal or
year-round farmworker housing projects completed in tax years
that begin on or after January 1, 1991 { - , and that are
completed on or before December 31, 2001 - } .
SECTION 9. 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 { + and section 3 of this 2001
Act + } (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).
SECTION 10. { + Sections 3 and 4 of this 2001 Act and the
amendments to ORS 314.752, 315.164, 315.167 and 317.147 and
section 6, chapter 963, Oregon Laws 1989, and section 5, chapter
766, Oregon Laws 1991, by sections 1, 5, 6, 7, 8 and 9 of this
2001 Act apply to seasonal or year-round farmworker housing
completed in tax years beginning on or after January 1, 2002. + }
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