73rd OREGON LEGISLATIVE ASSEMBLY--2005 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 2452
A-Engrossed
Senate Bill 733
Ordered by the Senate April 25
Including Senate Amendments dated April 25
Sponsored by COMMITTEE ON ENVIRONMENT AND LAND USE
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.
{ - Modifies residential energy income tax credit for
installation of solar alternative energy devices. Allows credit
to be claimed over multiple tax years in instances where credit
amount, when computed on basis of first year energy yield of
device, exceeds maximum amount for which credit may be
allowed. Retains existing cap on maximum amount of credit that
may be claimed in single tax year. - }
{ + Allows residential energy income tax credit for
construction or installation of solar electric system.
Establishes maximum amount of credit that may be claimed in
single tax year. Allows unused credit amounts to be carried
forward to tax year that is not more than five tax years
following first tax year for which any credit was allowed. + }
Applies to solar { - alternative energy devices - }
{ + electric systems + } certified for credit on or after
January 1, 2006.
A BILL FOR AN ACT
Relating to energy tax credits; creating new provisions; and
amending ORS 316.116, 469.160, 469.165, 469.170, 469.172,
469.176 and 469.180.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 316.116 is amended to read:
316.116. (1)(a) A resident individual shall be allowed a credit
against the taxes otherwise due under this chapter for costs paid
or incurred for construction or installation of an alternative
energy device in a dwelling.
(b) A resident individual shall be allowed a credit against the
taxes otherwise due under this chapter for costs paid or incurred
to modify or purchase an alternative fuel vehicle or related
equipment.
{ + (c) A resident individual shall be allowed a credit
against the taxes otherwise due under this chapter for costs paid
or incurred for construction or installation of a solar electric
system in a dwelling. + }
(2)(a) Except in the case of an alternative fuel device { + or
a solar electric system + }, the credit shall be based upon the
first year energy yield of the alternative energy device that
qualifies under ORS 469.160 to 469.180. The amount of the credit
shall be the same whether for collective or noncollective
investment.
(b) The credit allowed under this section for each dwelling
shall not exceed the lesser of:
(A) $1,500 or the first year energy yield in kilowatt hours per
year multiplied by 60 cents per dwelling utilizing the
alternative energy device used for space heating, cooling,
electrical energy or domestic water heating for tax years
beginning on or after January 1, 1990, and before January 1,
1996.
(B) $1,200 or the first year energy yield in kilowatt hours per
year multiplied by 48 cents per dwelling utilizing the
alternative energy device used for space heating, cooling,
electrical energy or domestic water heating for tax years
beginning on or after January 1, 1996, and before January 1,
1998.
(C) $1,500 or the first year energy yield in kilowatt hours per
year multiplied by 60 cents per dwelling utilizing the
alternative energy device used for space heating, cooling,
electrical energy or domestic water heating for tax years
beginning on or after January 1, 1998.
(c) For an alternative energy device used for swimming pool,
spa or hot tub heating, the credit allowed under this section
shall be based upon 50 percent of the cost of the device or the
first year's energy yield in kilowatt hours per year multiplied
by 15 cents, whichever is lower, up to:
(A) $1,500 for tax years beginning on or after January 1, 1990,
and before January 1, 1996.
(B) $1,200 for tax years beginning on or after January 1, 1996,
and before January 1, 1998.
(C) $1,500 for tax years beginning on or after January 1, 1998.
(d) For an alternative fuel device, the credit allowed under
this section is 25 percent of the cost of the alternative fuel
device but the total credit shall not exceed $750 if the device
is placed in service on or after January 1, 1998.
{ + (e)(A) For a solar electric system, the credit allowed
under this section shall equal $3 per watt of installed output,
but the installed output that is used to determine the amount of
credit under this paragraph may not exceed 2,000 watts.
(B) Notwithstanding subparagraph (A) of this paragraph, the
amount of the credit allowed in any one tax year may not exceed
the tax liability of the taxpayer or $1,500, whichever is
less. Unused credit amounts may be carried forward as provided in
subsection (7) of this section, but may not be carried forward to
a tax year that is more than five tax years following the first
tax year for which any credit was allowed with respect to the
solar electric system that is the basis for the credit. + }
(3)(a) In the case of a credit for an alternative energy device
that is an energy efficient appliance, the credit allowed to a
resident individual under this section shall equal:
(A) 48 cents per first year kilowatt hour saved, or the
equivalent for other fuel saved, not to exceed $1,200 for each
tax year beginning on or after January 1, 1998, and before
January 1, 1999; and
(B) 40 cents per kilowatt hour saved, or the equivalent for
other fuel saved, not to exceed $1,000 for each tax year
beginning on or after January 1, 1999.
(b) Notwithstanding paragraph (a) of this subsection, the
credit allowed for an energy efficient appliance shall not exceed
25 percent of the cost of the appliance.
(4) To qualify for a credit under this section, all of the
following are required:
(a) The alternative energy device { + or solar electric
system + } must be purchased, constructed, installed and operated
in accordance with ORS 469.160 to 469.180 and a certificate
issued thereunder.
(b) Except for credits claimed for alternative fuel devices,
the taxpayer who is allowed the credit must be the owner or
contract purchaser of the dwelling or dwellings served by the
alternative energy device { + or solar electric system + } or
the tenant of the owner or of the contract purchaser and must:
(A) Use the dwelling or dwellings served by the alternative
energy device { + or solar electric system + } as a principal or
secondary residence; or
(B) Rent or lease, under a residential rental agreement, the
dwelling or dwellings to a tenant who uses the dwelling or
dwellings as a principal or secondary residence, unless the basis
for the credit is the installation of an energy efficient
appliance. If the basis for the credit is the installation of an
energy efficient appliance, the credit shall be allowed only to
the taxpayer who actually occupies the dwelling as a principal or
secondary residence.
(c) In the case of an alternative fuel device, if the device is
a fueling station necessary to operate an alternative fuel
vehicle, unless the verification form and certificate are
transferred as authorized under ORS 469.170 (8), the taxpayer who
is allowed the credit must be the contractor who constructs the
dwelling that incorporates the fueling station into the dwelling
or installs the fueling station in the dwelling. If the
alternative energy device is an alternative fuel vehicle, the
credit must be claimed by the owner as defined under ORS 801.375
or contract purchaser. If the alternative energy device is
related equipment, the credit may be claimed by the owner or
contract purchaser.
(d) The credit must be claimed for the tax year in which the
alternative energy device { + or solar electric system + } was
purchased if the { + device or + } system is operational by
April 1 of the next following tax year.
(5) The credit provided by this section { - shall - } { +
does + } not affect the computation of basis under this chapter.
(6) The credit allowed under this section in any one year
{ - shall - } { + may + } not exceed the tax liability of the
taxpayer.
(7) Any tax credit otherwise allowable under this section
{ - which - } { + 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
{ - 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, but
may not be carried forward for any tax year thereafter.
(8) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
(9) 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 by this section shall be prorated or computed in a
manner consistent with ORS 314.085.
(10) 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.
(11) A husband and wife who file separate returns for a taxable
year may each claim a share of the tax credit that would have
been allowed on a joint return in proportion to the contribution
of each. However, a husband or wife living in a separate
principal residence may claim the tax credit in the same amount
as permitted a single person.
(12) As used in this section, unless the context requires
otherwise:
(a) 'Collective investment' means an investment by two or more
taxpayers for the acquisition, construction and installation of
an alternative energy device for one or more dwellings.
(b) 'First year energy yield' has the meaning given in ORS
469.160.
(c) 'Noncollective investment' means an investment by an
individual taxpayer for the acquisition, construction and
installation of an alternative energy device for one or more
dwellings.
(13) As used in this section, 'taxpayer' includes a transferee
of a verification form under ORS 469.170 (8).
(14) Notwithstanding any provision of subsection (1) or (2) of
this section, the sum of the credit allowed under subsection (1)
of this section plus any similar credit allowed for federal
income tax purposes shall not exceed the cost to the taxpayer for
the acquisition, construction and installation of the alternative
energy device { + or solar electric system + }.
SECTION 2. ORS 469.160 is amended to read:
469.160. As used in ORS 316.116, 317.115 and 469.160 to
469.180:
(1) 'Alternative energy device' means:
(a) Any system, mechanism or series of mechanisms, including
photovoltaic systems, that uses solar radiation or wind for space
heating, cooling or electrical energy for one or more dwellings;
(b) Any system that uses solar radiation for:
(A) Domestic water heating; or
(B) Swimming pool, spa or hot tub heating and that meets the
requirements set forth in ORS 316.116;
(c) A ground water heat pump and ground loop system;
(d) A wind powered turbine that generates electricity;
(e) Any wind powered device used to offset or supplement the
use of electricity by performing a specific task such as pumping
water;
(f) Equipment used in the production of alternative fuels;
(g) A generator powered by alternative fuels and used to
produce electricity;
(h) A fuel cell;
(i) An energy efficient appliance; or
(j) An alternative fuel device.
(2) 'Alternative fuel device' means any of the following:
(a) An alternative fuel vehicle;
(b) Related equipment; or
(c) A fueling station necessary to operate an alternative fuel
vehicle.
(3) 'Alternative fuel vehicle' means a motor vehicle as defined
in ORS 801.360 that is:
(a) Registered in this state; and
(b) Manufactured or modified to use an alternative fuel,
including but not limited to electricity, natural gas, ethanol,
methanol, propane and any other fuel approved in rules adopted by
the Director of the State Department of Energy that produces less
exhaust emissions than vehicles fueled by gasoline or diesel.
Determination that a vehicle is an alternative fuel vehicle shall
be made without regard to energy consumption savings.
(4) 'Coefficient of performance' means the ratio calculated by
dividing the usable output energy by the electrical input energy.
Both energy values must be expressed in equivalent units.
(5) 'Contractor' means a person whose trade or business
consists of offering for sale an alternative energy device,
construction service, installation service or design service.
(6)(a) 'Cost' means the actual cost of the acquisition,
construction and installation of the alternative energy
device { + or solar electric system + } paid by the taxpayer for
the alternative energy device { + or solar electric system + }.
(b) For an alternative fuel vehicle, 'cost' means the
difference between the cost of the alternative fuel vehicle and
the same vehicle or functionally similar vehicle manufactured to
use conventional gasoline or diesel fuel or, in the case of
modification of an existing vehicle, the cost of the
modification. ' Cost' does not include any amounts paid for
remodification of the same vehicle.
(c) For a fueling station necessary to operate an alternative
fuel vehicle, 'cost' means the cost to the contractor of
constructing or installing the fueling station in a dwelling and
of making the fuel station operational in accordance with the
specifications issued under ORS 469.160 to 469.180 and any rules
adopted by the Director of the State Department of Energy.
(d) For related equipment, 'cost' means the cost of the related
equipment and any modifications or additions to the related
equipment necessary to prepare the related equipment for use in
converting a vehicle to alternative fuel use.
(7) 'Domestic water heating' means the heating of water used in
a dwelling for bathing, clothes washing, dishwashing and other
related functions.
(8) 'Dwelling' means real or personal property ordinarily
inhabited as a principal or secondary residence and located
within this state. 'Dwelling' includes, but is not limited to, an
individual unit within multiple unit residential housing.
(9) 'Energy efficient appliance' means a clothes washer,
clothes dryer, water heater, refrigerator, freezer, dishwasher,
appliance designed to heat or cool a dwelling or other major
household appliance that has been certified by the State
Department of Energy to have premium energy efficiency
characteristics.
(10) 'First year energy yield' of an alternative energy device
is the usable energy produced under average environmental
conditions in one year.
(11) 'Fueling station' includes but is not limited to a
compressed natural gas compressor fueling system or an electric
charging system for vehicle power battery charging.
(12) 'Placed in service' means:
(a) The date an alternative energy device { + or solar
electric system + } is ready and available to produce usable
energy or save energy.
(b) For an alternative fuel vehicle:
(A) In the case of purchase, the date that the alternative fuel
vehicle is first purchased as an alternative fuel vehicle ready
and available for use.
(B) In the case of modification, the date that the modification
is completed and the vehicle is ready and available for use as an
alternative fuel vehicle.
(c) For a fueling station necessary to operate an alternative
fuel vehicle, the date that the fueling station is first
operational.
(d) For related equipment, the date that the equipment is first
operational.
(13) 'Related equipment' means equipment necessary to convert a
vehicle to use an alternative fuel.
{ + (14) 'Solar electric system' means any system, mechanism
or series of mechanisms, including photovoltaic systems, that
uses solar radiation to generate electrical energy for a
dwelling. + }
SECTION 3. ORS 469.165 is amended to read:
469.165. (1) For the purposes of carrying out ORS 469.160 to
469.180, the State Department of Energy may adopt rules
prescribing minimum performance criteria for alternative energy
devices for dwellings { + and solar electric systems + }.
(2) The department, in adopting rules under this section for
solar heating and cooling systems, shall take into consideration
applicable standards of federal performance criteria prescribed
pursuant to the provisions of section 5506, title 42, United
States Code (Solar Heating and Cooling Act of 1974).
(3) The Director of the State Department of Energy shall adopt
rules governing the determination of eligibility, verification
and certification of an alternative fuel device for purposes of
the tax credits granted under ORS 316.116 and 317.115, including
but not limited to rules that further define an alternative fuel
vehicle, related equipment or fueling station necessary to
operate an alternative fuel vehicle, that govern the computation
of costs eligible for credit and that require equitable
allocation of the tax credit benefits between the lessor and the
lessee of an alternative fuel vehicle as a condition of tax
credit eligibility.
SECTION 4. ORS 469.170 is amended to read:
469.170. (1) Any person may claim a tax credit under ORS
316.116 (or ORS 317.115, if the person is a corporation) if the
person:
(a) Meets the requirements of ORS 316.116 (or ORS 317.115, if
applicable);
(b) Meets the requirements of ORS 469.160 to 469.180; and
(c) Pays, subject to subsection (9) of this section, all or a
portion of the costs of an alternative energy device { + or a
solar electric system + }.
(2) A credit under ORS 317.115 may be claimed only if the
alternative energy device is a fueling station necessary to
operate an alternative fuel vehicle.
(3) { + (a) + } In order to be eligible for a tax credit under
ORS 316.116 or 317.115, a person claiming a tax credit for
construction or installation of an alternative energy device
(including a fueling station) { + or a solar electric system + }
shall have the { + device or + } system certified by the State
Department of Energy or constructed or installed by a contractor
certified by the department under subsection (5) of this section.
This
{ - subsection - } { + paragraph + } does not apply to an
alternative fuel vehicle or to related equipment.
{ + (b) + } Certification of an alternative fuel vehicle or
related equipment shall be accomplished under rules that shall be
adopted by the Director of the State Department of Energy.
(4) Verification of the purchase, construction or installation
of an alternative energy device { + or solar electric system + }
shall be made in writing on a form provided by the Department of
Revenue and, if applicable, shall contain:
(a) The location of the alternative energy device { + or solar
electric system + };
(b) A description of the type of device { + or system + };
(c) If the device { + or system + } was constructed or
installed by a contractor, evidence that the contractor has any
license, bond, insurance and permit required to sell and
construct or install the alternative energy device { + or solar
electric system + };
(d) If the device { + or system + } was constructed or
installed by a contractor, a statement signed by the contractor
that the applicant has received:
(A) A statement of the reasonably expected energy savings of
the device { + or system + };
(B) A copy of consumer information published by the State
Department of Energy;
(C) An operating manual for the alternative energy device { +
or solar electric system + }; and
(D) A copy of the contractor's certification certificate or
alternative energy device system certificate { + for the
alternative energy device or solar electric system, + } as
appropriate;
(e) If the device { + or system + } was not constructed or
installed by a contractor, evidence that:
(A) The State Department of Energy has issued an alternative
energy device system certificate for the { + alternative
energy + } device { + or solar electric system + }; and
(B) The taxpayer has obtained all building permits required for
construction or installation of the device { + or system + };
(f) A statement, signed by both the taxpayer claiming the
credit and the contractor if the device { + or system + } was
constructed or installed by a contractor, that the construction
or installation meets all the requirements of ORS 469.160 to
469.180 or, if the device is a fueling station and the taxpayer
is the contractor, a statement signed by the contractor that the
construction or installation meets all of the requirements of ORS
469.160 to 469.180;
(g) The date the alternative energy device { + or solar
electric system + } was purchased;
(h) The date the alternative energy device { + or solar
electric system + } was placed in service; and
(i) Any other information that the Director of the State
Department of Energy or the Department of Revenue determines is
necessary.
(5)(a) When the State Department of Energy finds that an
alternative energy device { + or solar electric system + } can
meet the standards adopted under ORS 469.165, the Director of the
State Department of Energy may issue a contractor system
certification to the person selling and constructing or
installing the alternative energy device { + or solar electric
system + }.
(b) Any person who sells or installs more than 12 alternative
energy devices { + or solar electric systems + } in one year
shall apply for a contractor system certification. An application
for a contractor system certification shall be made in writing on
a form provided by the State Department of Energy and shall
contain:
(A) A statement that the contractor has any license, bonding,
insurance and permit that is required for the sale and
construction or installation of the alternative energy
device { + or solar electric system + };
(B) A specific description of the alternative energy device
{ + or solar electric system + }, including, but not limited
to, the material, equipment and mechanism used in the device { +
or system + }, operating procedure, sizing and siting method and
construction or installation procedure;
(C) The addresses of three installations of the { + device
or + } system that are available for inspection by the State
Department of Energy;
(D) The range of installed costs to purchasers of the device
{ + or system + };
(E) Any important construction, installation or operating
instructions; and
(F) Any other information that the State Department of Energy
determines is necessary.
(c) A new application for contractor system approval shall be
filed when there is a change in the information supplied under
paragraph (b) of this subsection.
(d) The State Department of Energy may issue contractor system
certificates to each contractor who on October 3, 1989, has a
valid dealer system certification, which shall authorize the sale
and installation of the same domestic water heating alternative
energy devices authorized by the dealer certification.
(e) If the State Department of Energy finds that an alternative
energy device { + or solar electric system + } can meet the
standards adopted under ORS 469.165, the Director of the State
Department of Energy may issue an alternative energy device
system certificate to the taxpayer constructing or installing or
having an alternative energy device { + or solar electric
system + } constructed or installed.
(f) An application for an alternative energy device system
certificate shall be made in writing on a form provided by the
State Department of Energy and shall contain:
(A) A specific description of the alternative energy device
{ + or solar electric system + }, including, but not limited
to, the material, equipment and mechanism used in the device { +
or system + }, operating procedure, sizing, siting method and
construction or installation procedure;
(B) The constructed or installed cost of the device { + or
system + }; and
(C) A statement that the taxpayer has all permits required for
construction or installation of the device { + or system + }.
(6) To claim the tax credit, the verification form described in
subsection (4) of this section shall be submitted with the
taxpayer's tax return for the year the alternative energy device
{ + or solar electric system + } is placed in service or the
immediately succeeding tax year. A copy of the contractor's
certification certificate, alternative energy device system
certificate or alternative fuel vehicle or related equipment
certificate also shall be submitted.
(7) The verification form and contractor's certificate,
alternative energy device system certificate or alternative fuel
vehicle or related equipment certificate described under this
section shall be effective for purposes of tax relief allowed
under ORS 316.116 or 317.115.
(8) The verification form and contractor's certificate
described under this section may be transferred to the first
purchaser of a dwelling or, in the case of construction or
installation of a fueling station in an existing dwelling, the
current owner, who intends to use or is using the dwelling as a
principal or secondary residence.
(9) Any person that pays the present value of the tax credit
for an alternative energy device { + or solar electric
system + } provided under ORS 316.116 or 317.115 and 469.160 to
469.180 to the person who constructs or installs the alternative
energy device { + or solar electric system + } shall be entitled
to claim the credit in the manner and subject to rules adopted by
the Department of Revenue to carry out the purposes of this
subsection. The State Department of Energy may establish by rule
uniform discount rates to be used in calculating the present
value of a tax credit under this subsection.
SECTION 5. ORS 469.172 is amended to read:
469.172. The following devices are not eligible for the
{ - alternative energy device - } tax credit under ORS
316.116:
(1) Standard efficiency furnaces;
(2) Standard back-up heating systems;
(3) Woodstoves or wood furnaces, or any part of a heating
system that burns wood;
(4) Heat pump water heaters that are part of a geothermal heat
pump space heating system;
(5) Structures that cover or enclose a swimming pool;
(6) Swimming pools, hot tubs or spas used to store heat;
(7) Above ground, uninsulated swimming pools, hot tubs or spas;
(8) Photovoltaic systems installed on recreational vehicles;
(9) Conversion of an existing alternative energy device { + or
solar electric system + } to another type of alternative energy
device { + or solar electric system + };
(10) Repair or replacement of an existing alternative energy
device { + or solar electric system + }; { - or - }
{ + (11) A solar electric system, if the equipment or other
property that comprises the solar electric system is also the
basis for an allowed credit for an alternative energy device
under ORS 316.116;
(12) An alternative energy device, if the equipment or other
property that comprises the alternative energy device is also the
basis for an allowed credit for a solar electric system under ORS
316.116; or + }
{ - (11) - } { + (13) + } Any other device identified by
the State Department of Energy. The department may adopt rules
defining standards for eligible and ineligible devices under this
section.
SECTION 6. ORS 469.176 is amended to read:
469.176. (1) Except for alternative fuel vehicles or related
equipment, in order to carry out ORS 469.160 to 469.180, the
State Department of Energy shall develop performance assumptions
and prescriptive measures to determine the eligibility and tax
credit amount for alternative energy devices { + and solar
electric systems + } constructed or installed in a dwelling.
(2) The department shall use the performance assumptions and
prescriptive measures to develop information for the Department
of Revenue to use to allow taxpayers to determine their
eligibility and tax credit amount. The State Department of Energy
may review this information on an annual basis to take into
consideration new technology and performance assumption accuracy.
(3) For the purpose of determining the first year energy yield
of an alternative energy device, the department shall use the
following assumptions and test standards:
(a) Solar Rating and Certification Corporation standard SRCC
100, 200, American Society of Heating, Refrigerating and
Air-Conditioning Engineers 93-77, or the American Refrigeration
Institute standard 325-85 test at 50 degrees entering water
temperature, as appropriate. The testing requirements under this
paragraph shall not apply to an owner-built alternative energy
device.
(b) For an alternative energy device used as a source for
domestic water heating energy, a hot water use of 75 gallons per
day at 120 degrees Fahrenheit. The load of 75 gallons per day at
120 degrees Fahrenheit shall be achieved by including
conservation measures in the construction or installation of the
alternative energy device.
(c) For an alternative energy device used as a source for space
heating or cooling, the heating or cooling energy load as
determined by a heat loss or gain calculation performed in
accordance with the methods established by the American Society
of Heating, Refrigerating and Air-Conditioning Engineers. Except
for an owner-built or site-built system, an alternative energy
device used as a source for domestic hot water heating must meet
the SRCC OG 300 systems test or comply with comparable
requirements as determined by the department.
(d) For an alternative energy device used as a source for
electrical energy, the first year energy yield shall be based
upon the electrical energy load of the dwelling as determined
according to the procedure established by the department.
(e) For an alternative energy device used as a source for
swimming pool, spa or hot tub heating, the first year energy
yield shall be based on the heating load of the swimming pool,
spa or hot tub as determined according to the procedure
established by the department.
SECTION 7. ORS 469.180 is amended to read:
469.180. (1) Upon the Department of Revenue's own motion, or
upon request of the State Department of Energy, the Department of
Revenue may initiate proceedings for the forfeiture of a tax
credit allowed under ORS 316.116 or 317.115 if:
(a) The verification was fraudulent because of a
misrepresentation by the taxpayer or investor owned utility;
(b) The verification was fraudulent because of a
misrepresentation by the contractor;
(c) In the case of { + a solar electric system or + } an
alternative energy device other than an alternative fuel vehicle
or related equipment, the { + solar electric system or + }
alternative energy device has not been constructed, installed or
operated in substantial compliance with the requirements of ORS
469.160 to 469.180; or
(d) The taxpayer or investor owned utility failed to consent to
an inspection of the constructed or installed alternative energy
device { + or solar electric system + } by the State Department
of Energy after a reasonable, written request for such an
inspection by the State Department of Energy. This paragraph does
not apply to an alternative fuel vehicle or to related equipment.
(2) Pursuant to the procedures for a contested case under ORS
chapter 183, the Director of the State Department of Energy may
order the revocation of a contractor certificate issued under ORS
469.170 if the director finds that:
(a) The contractor certificate was obtained by fraud or
misrepresentation by the contractor certificate holder;
(b) The contractor's performance for the alternative energy
device { + or solar electric system + } for which the contractor
is issued a certificate under ORS 469.170 does not meet industry
standards; or
(c) The contractor has misrepresented to the customer either
the tax credit program or the nature or quality of the
alternative energy device { + or solar electric system + }.
(3) If the tax credit allowed under ORS 316.116 or 317.115 for
the purchase, construction or installation of an alternative
energy device { + or solar electric system + } is ordered
forfeited due to an action of the taxpayer or investor owned
utility under subsection (1)(a), (c) or (d) of this section, all
prior tax relief provided to the taxpayer or investor owned
utility shall be forfeited and the Department of Revenue shall
proceed to collect those taxes not paid by the taxpayer or
utility as a result of the tax credit relief under ORS 316.116 or
317.115.
(4) If the tax credit for the construction or installation of
an alternative energy device { + or solar electric system + } is
ordered forfeited due to an action of the contractor under
subsection (1)(b) of this section, the Department of Revenue
shall proceed to collect, from the contractor, an amount
equivalent to those taxes not paid by the taxpayer or investor
owned utility as a result of the tax credit relief under ORS
316.116 or 317.115. { - So - } { + As + } long as the
forfeiture is due to an action of the contractor and not to an
action of the taxpayer or utility, the assessment of such taxes
shall be levied on the contractor and not on the taxpayer or
utility. Notwithstanding ORS 314.835, the Department of Revenue
may disclose information from income tax returns or reports to
the extent such disclosure is necessary to collect amounts from
contractors under this subsection.
(5) In order to obtain information necessary to verify
eligibility and amount of the tax credit, the State Department of
Energy or its representative may inspect an alternative energy
device { + or solar electric system + } that has been purchased,
constructed or installed. The inspection shall be made only with
the consent of the owner of the dwelling. Failure to consent to
the inspection is grounds for the forfeiture of any tax credit
relief under ORS 316.116 or 317.115. The Department of Revenue
shall proceed to collect any taxes due according to subsection
(4) of this section. For electrical generating alternative energy
devices { + or solar electric systems + }, the State Department
of Energy may obtain energy consumption records for the dwelling
the device { + or system + } serves, for a 12-month period, in
order to verify eligibility and amount of the tax credit.
SECTION 8. { + The amendments to ORS 316.116, 469.160,
469.165, 469.170, 469.172, 469.176 and 469.180 by sections 1 to 7
of this 2005 Act apply to alternative energy devices and solar
electric systems certified by the State Department of Energy on
or after January 1, 2006. + }
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