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 3355
 
                           A-Engrossed
 
                         House Bill 3391
                   Ordered by the House May 8
             Including House Amendments dated May 8
 
Sponsored by Representatives MERKLEY, WESTLUND; Representative
  BECK (at the request of Enterprise Foundation)
 
 
                             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 of credit allowed for donations to fiduciary
organization for distribution to individual development accounts.
    { - Exempts from taxation matching contributions made by
employer to individual development account. - }
  Applies to tax years beginning on or after January 1, 2002.
 
                        A BILL FOR AN ACT
Relating to individual development accounts; creating new
  provisions; and amending ORS 315.271.
Be It Enacted by the People of the State of Oregon: + }
  SECTION 1. ORS 315.271 is amended to read:
  315.271. (1) A credit against taxes otherwise due under ORS
chapter 316, 317 or 318 shall be allowed for donations to a
fiduciary organization for distribution to individual development
accounts established under ORS 458.685. The credit shall equal
the lesser of   { - $25,000 or 25 - }  { +  $50,000 or 50 + }
percent of the donation amount.
  (2) If a credit allowed under this section is claimed, the
amount upon which the credit is based that is allowed or
allowable as a deduction from federal taxable income under
section 170 of the Internal Revenue Code shall be added to
federal taxable income in determining Oregon taxable income. As
used in this subsection, the amount upon which a credit is based
is the allowed credit divided by   { - 25 - }  { +  50 + }
percent.
  (3) The allowable tax credit that may be used in any one tax
year shall not exceed the tax liability of the taxpayer.
  (4) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular year may be carried
forward and offset against the taxpayer's tax liability for the
next succeeding tax year. Any tax credit remaining unused in the
next succeeding tax year may be carried forward and used in the
second succeeding tax year. Any tax credit not used in the second
succeeding tax year may be carried forward and used in the third
succeeding tax year, but may not be carried forward for any tax
year thereafter.
 
  SECTION 2.  { + The amendments to ORS 315.271 by section 1 of
this 2001 Act apply to tax years beginning on or after January 1,
2002. + }
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