72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 1827
House Bill 2500
Sponsored by Representative NELSON
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.
Establishes tax credit for medical care during tax year for
taxpayer, spouse of taxpayer and dependents of taxpayer.
Applies to amounts paid or incurred for medical care and
prescriptions in tax years beginning on or after January 1, 2004.
A BILL FOR AN ACT
Relating to taxation.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2003 Act is added to and made
a part of ORS chapter 315. + }
SECTION 2. { + (1) As used in this section, 'medical care' has
the meaning given that term in section 213 of the Internal
Revenue Code. 'Medical care' includes insulin or a prescribed
medicine or drug.
(2) A credit against the taxes otherwise due under ORS chapter
316 is allowed to a taxpayer for medical care during the tax year
for the taxpayer, the spouse of the taxpayer and the dependents
of the taxpayer when those amounts are not covered by insurance
or reimbursed by any source.
(3) The amount of the credit allowed under this section shall
be the sum of:
(a) __ percent of the medical care that exceeds $100,000 in the
tax year; and
(b) If the adjusted gross income for the tax year of the
taxpayer and the spouse of the taxpayer is $35,000 or less,
__ percent of the medical care in the tax year that is not
described in paragraph (a) of this subsection.
(4)(a) A taxpayer that elects to take the tax credit under ORS
315.610 may not include the premium costs paid or incurred during
the tax year for a long term care insurance policy when
calculating medical care costs under this section.
(b) A taxpayer that qualifies for a tax credit under ORS
316.148 may not include the same medical expenses to calculate
the credit under ORS 316.148 and this section.
(5) The amount of the credit claimed under this section may not
exceed the tax liability of the taxpayer for the tax year.
(6) Any credit 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 credit remaining
unused in 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, but may not be carried
forward for any tax year thereafter.
(7)(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.
(8) If the taxpayer is married at the close of the tax year,
the credit shall be allowed to only one taxpayer if the spouses
file separate returns for the tax year.
(9) The credit allowed under this section shall be claimed on
the form and in the time and manner in which the Department of
Revenue prescribes. + }
SECTION 3. { + Section 4 of this 2003 Act is added to and made
a part of ORS chapter 316. + }
SECTION 4. { + If a taxpayer claims a credit under section 2
of this 2003 Act for the tax year, a positive amount equal to the
sum of the following shall be added to federal taxable income:
(1) Amounts deducted from federal adjusted gross income for
federal tax purposes for the tax year under section 213 of the
Internal Revenue Code; and
(2) Amounts subtracted from federal taxable income for the tax
year under ORS 316.695 (1)(d)(B). + }
SECTION 5. { + Sections 2 and 4 of this 2003 Act apply to
medical care in tax years beginning on or after January 1,
2004. + }
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