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 2736
Senate Bill 577
Sponsored by Senator HARPER
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.
Consolidates income and corporate excise tax credits for
political contributions, Trust for Cultural Development Account
contributions, Child Care Division contributions and child
development or student-parent program contributions into single
tax credit. Expands credit to include all charitable
contributions or contributions to private or public educational
institutions. Modifies maximum amount of credit.
Applies to tax years beginning on or after January 1, 2004.
A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
314.752, 318.031, 329.385, 657A.700 and 657A.706; and repealing
ORS 315.213, 315.234, 315.675 and 316.104.
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) There shall be allowed a credit against the
taxes otherwise due under ORS chapter 316 or, if the taxpayer is
a corporation, ORS chapter 317 or 318, for amounts contributed:
(a) To a major political party qualified under ORS 248.006 or
to a committee of a major political party or to a minor political
party qualified under ORS 248.008 or to a committee of a minor
political party.
(b) To or for the use of a person who must be a candidate for
nomination or election to a federal, state or local elective
office in any primary election, general election or special
election in this state. The person must, in the calendar year in
which the contribution is made, either be listed on a primary
election, general election or special election ballot in this
state or have filed in this state one of the following:
(A) A prospective petition;
(B) A declaration of candidacy;
(C) A certificate of nomination; or
(D) A designation of a principal campaign committee.
(c) To a political committee, as defined in ORS 260.005, if the
political committee has certified the name of its treasurer to
the filing officer, as defined in ORS 260.005, in the manner
provided in ORS chapter 260.
(d) To the Trust for Cultural Development Account established
under ORS 359.405, but only if the taxpayer has contributed an
equal amount to an Oregon cultural organization during the tax
year.
(e) To the Child Care Division or a selected community agency
under ORS 657A.706, if the contribution is certified as provided
in ORS 657A.706.
(f) To:
(A) A school district child development program that has been
approved by the Department of Education under ORS 329.385; or
(B) A school district student-parent program that has been
approved by the Department of Education under ORS 329.385.
(g) To any charitable organization described in section
501(c)(3) of the Internal Revenue Code.
(h) To any private or public school providing kindergarten
through grade 12 education.
(i) To any community college or institution of higher
education.
(2) The amount of the credit allowed under this section shall
equal 100 percent of the amount contributed, but may not exceed
the lesser of:
(a) The tax liability of the taxpayer; or
(b) $500.
(3) The credit allowed under this section may not be carried
over to another tax year.
(4) The credit allowed under this section is in addition to and
not in lieu of any charitable contribution deduction allowed the
taxpayer.
(5) 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) 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) As used in this section, 'cultural organization' means an
entity that is:
(a) Exempt from federal income tax under section 501(c)(3) of
the Internal Revenue Code; and
(b) Organized primarily for the purpose of producing, promoting
or presenting the arts, heritage, programs and humanities to the
public or organized primarily for identifying, documenting,
interpreting and preserving cultural resources. + }
SECTION 3. 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 285B.773 (tribal taxes
on reservation enterprise zones), 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 315.169 (farmworker housing),
ORS 315.204 (dependent care assistance), ORS 315.208 (dependent
care facilities), { - ORS 315.213 (contributions for child
care), 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), ORS 317.115 (fueling stations necessary to
operate an alternative fuel vehicle), ORS 315.507 (electronic
commerce) and ORS 315.511 (advanced telecommunications
facilities) { + and section 2 of this 2003 Act (consolidated
contributions) + }.
SECTION 4. ORS 318.031 is amended to read:
318.031. It being the intention of the Legislative Assembly
that this chapter and the Corporation Excise Tax Law of 1929
shall be administered as uniformly as possible (allowance being
made for the difference in imposition of the taxes and the
operative date of this chapter), ORS 305.140 and 305.150, ORS
chapter 314 and the following sections are incorporated into and
made a part of this chapter: ORS 315.104, 315.134, 315.156,
315.204, 315.208,
{ - 315.213, 315.234, - } 315.254, 315.304, 315.504, 315.511
and 315.604 { + and section 2 of this 2003 Act + } (all only to
the extent applicable for a corporation) and ORS 285B.773,
315.507, 317.010, 317.013, 317.018 to 317.022, 317.030, 317.035,
317.038, 317.080, 317.124 to 317.131, 317.152 to 317.154, 317.259
to 317.303, 317.310 to 317.386, 317.476 to 317.485, 317.488,
317.510 to 317.635 and 317.705 to 317.725.
SECTION 5. ORS 329.385 is amended to read:
329.385. (1) The Department of Education shall prepare
operating guides for child development programs and for
student-parent programs applicable to programs under { - ORS
315.234, 318.031 - } { + section 2 (1)(f) of this 2003 Act + }
and this section that are consistent with requirements imposed by
the State Board of Education.
(2) The Department of Education shall review applications for
approval of child development programs and student-parent
programs and may approve up to 20 child development and up to 20
student-parent programs after considering:
(a) The educational adequacy and type of programs.
(b) The number of students and children who are to be served by
the program.
(c) The availability of trained personnel and facilities.
(d) The need for the programs in the applying district.
(3) In approving applications for child development programs,
the department shall require that the school district use the
contributions described in { - ORS 315.234 and 318.031 - }
{ + section 2 (1)(f) of this 2003 Act + } for child development
curriculum and in the formulation and initiation of on-site child
development centers. Each center must be able to accommodate not
more than 30 full-time equivalent spaces for children,
distributed according to needs of the community.
(4) In approving applications for student-parent programs, the
department shall require that the school district use the
contributions described in { - ORS 315.234 and 318.031 - }
{ + section 2 (1)(f) of this 2003 Act + } for appropriate
education for student-parents leading to graduation and in the
formulation and development of appropriate on-site child care
facilities. Each facility must be able to accommodate not more
than 30 full-time equivalent spaces for children, distributed
according to the needs of the student-parents.
(5) As used in this section:
(a) 'Child development program' means an educational program
that conforms to standards adopted by the State Board of
Education and that consists of an education component and a child
care component.
(b) 'Student-parent program' means an educational program that
conforms to standards adopted by the State Board of Education and
that consists of education for the student-parent and child care
for the student-parent's child.
SECTION 6. ORS 657A.700 is amended to read:
657A.700. As used in ORS 657A.700 to 657A.718:
(1) 'Child care provider' means a provider, for compensation,
of care, supervision or guidance to a child on a regular basis in
a center or in a home other than the child's home. 'Child care
provider' does not include a person who is the child's parent,
guardian or custodian.
(2) 'Community agency' means a nonprofit agency that is:
(a) Located in a region, established under ORS 657A.706, in
which it provides services related to child care, children and
families, community development or similar services; and
(b) Eligible to receive contributions that qualify as
deductions under section 170 of the Internal Revenue Code.
(3) 'Qualified contribution' means a contribution made by a
taxpayer to the Child Care Division of the Employment Department
or a selected community agency for the purpose of promoting child
care, and for which an application is submitted for a tax credit
certificate under ORS 657A.706.
(4) 'Tax credit certificate' means a certificate issued by the
Child Care Division to a taxpayer to qualify the taxpayer for a
tax credit under { - ORS 315.213 - } { + section 2 (1)(e) of
this 2003 Act + }.
SECTION 7. ORS 657A.706 is amended to read:
657A.706. (1) For the purpose of implementing the program
established under ORS 657A.703, the Child Care Division of the
Employment Department, in collaboration with an advisory
committee established by the Child Care Division, shall:
(a) Establish regions in this state by rule in a manner that
facilitates the planning of the program, the allocation of tax
credit certificates to taxpayers and the distribution to child
care providers of moneys from contributions made to the Child
Care Division and selected community agencies.
(b) Identify for each region contribution and child care goals
that are consistent with the purposes provided in ORS 657A.703
(2). The goals identified under this paragraph shall take into
account the resources and needs of the region.
(c) Develop by rule the application process a community agency
must complete to represent a region, and any process for the
renewal of such representation.
(d) Select a community agency in each region.
(e) Enter into an agreement with each community agency selected
to represent a region to have the community agency perform the
functions specified in ORS 657A.715.
(f) Determine the total value in tax credit certificates
available to taxpayers in each region, based on goals identified
under paragraph (b) of this subsection, and transmit those
determinations to the selected community agencies by February 1
of each year. The total value in tax credit certificates
available to all selected community agencies in this state may
not exceed $500,000 per calendar year.
(g) Determine the total value of moneys to be available to each
selected community agency to distribute to providers based on
goals identified under paragraph (b) of this subsection, and
distribute those moneys in the manner provided in ORS 657A.712 to
the selected community agencies by June 30 of the year following
the year the application is made. The total value of moneys
available to all selected community agencies in this state may
not exceed the amount of contributions received from taxpayers
during the tax year minus any reasonable administrative costs
incurred by the Child Care Division and the selected community
agencies.
(2) If a taxpayer makes a contribution to the Child Care
Division or a selected community agency for child care but does
not want to receive the tax credit available under { - ORS
315.213 - } { + section 2 (1)(e) of this 2003 Act + }, the
taxpayer may receive only deductions and credits otherwise
allowed for a charitable contribution. A contribution described
in this subsection shall be deposited in the Child Care Fund
established under ORS 657A.010.
(3)(a) If a taxpayer makes a contribution to the Child Care
Division or to a selected community agency and wants to receive
the tax credit available under { - ORS 315.213 - } { +
section 2 (1)(e) of this 2003 Act + }, the taxpayer shall submit
an application for a tax credit certificate with the
contribution. If the contribution is made to a selected community
agency, the selected community agency shall forward the
application and contribution to the Child Care Division.
(b) The application for a tax credit certificate shall be
available to taxpayers from the Child Care Division and from
selected community agencies in a form prescribed by the Child
Care Division. The application must be submitted by December 31
of each year and contain such information as the division
requires.
(c) The Child Care Division shall consider applications for tax
credit certificates in the chronological order in which the
applications are received by the division and shall approve
applications in an amount that does not exceed the limitations
imposed by subsection (1)(f) of this section.
(d) The Child Care Division may not issue a tax credit
certificate to a taxpayer to the extent the claim for credit in
the application, when added to the total amount of claims for
credit previously certified by the Child Care Division for
distribution, exceeds the value of tax credit certificates
available to the Child Care Division for the calendar year.
(e) The Child Care Division shall send a copy of all tax credit
certificates issued under this section to the Department of
Revenue.
(f) Contributions made under this subsection shall be deposited
in the Child Care Fund.
(4) A taxpayer that receives a notice of denial of a tax credit
certificate or that receives a tax credit certificate issued for
an amount that is less than the amount contributed may request a
refund for the amount contributed within 90 days of the Child
Care Division's denial or issuance of the certificate. The Child
Care Division must send notice of a denial or changed amount and
refund the amount for which a tax credit will not be granted
within 30 days after receiving the request. The refund shall be
made from the Child Care Fund.
(5) The Child Care Division may establish by rule any other
provisions required to implement the program established under
ORS 657A.700 to 657A.718.
SECTION 8. { + Section 2 of this 2003 Act and the amendments
to ORS 314.752, 318.031, 329.385, 657A.700 and 657A.706 by
sections 3 to 7 of this 2003 Act apply to tax years beginning on
or after January 1, 2004. + }
SECTION 9. { + Notwithstanding any other provision of law, an
income or corporate excise tax credit may not be claimed under
ORS 315.213, 315.234, 315.675 or 316.104 for a tax year beginning
on or after January 1, 2004, except as provided in ORS 315.213
(7). + }
SECTION 10. { + ORS 315.234, 315.675 and 316.104 are repealed
on January 2, 2006. + }
SECTION 11. { + ORS 315.213 is repealed on January 2,
2010. + }
SECTION 12. { + Nothing in the repeal of ORS 315.213, 315.234,
315.675 or 316.104 by sections 10 and 11 of this 2003 Act affects
the allowance of a tax credit under ORS 315.213, 315.234, 315.675
or 316.104 for a tax year beginning before January 1, 2004. + }
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