Chapter
AN ACT
843
HB 3201
Relating to taxation; creating new provisions; amending ORS 90.635,
285C.506, 315.354, 315.356, 315.514, 316.085, 316.116, 316.502, 316.680,
316.699, 317.097, 348.841, 469.160, 469.165, 469.170, 469.172, 469.176,
469.180, 469.185, 469.200, 469.205, 469.206 and 469.215 and section 2, chapter
649, Oregon Laws 1975, section 2, chapter 422, Oregon Laws 1979, sections 28,
29, 31 and 32, chapter 618, Oregon Laws 2003, section 3, chapter 595, Oregon
Laws 2005, and section 5a, chapter 832, Oregon Laws 2005; repealing ORS
316.153; and prescribing an effective date.
Be It Enacted by the People of
the State of
SECTION 1. ORS 316.680 is amended to read:
316.680. (1) There shall be subtracted from federal taxable income:
(a) The interest or
dividends on obligations of the
(b) The amount of any
federal income taxes accrued by the taxpayer during the taxable year as
described in ORS 316.685, less the amount of any refunds of federal taxes
previously accrued for which a tax benefit was received.
(c)(A) If the taxpayer
does not qualify for the subtraction under subparagraph (B) of this paragraph,
compensation (other than pension or retirement pay) received for active service
performed by a member of the Armed Forces of the
(B) For the tax year of
initial draft or enlistment into the Armed Forces of the United States or for
the tax year of discharge from or termination of full-time active duty for the
Armed Forces of the United States, compensation (other than pension or
retirement pay or pay for service when on military reserve duty) paid by the
Armed Forces of the United States for services performed outside this state, if
the taxpayer is on active duty as a full-time officer, enlistee or draftee,
with the Armed Forces of the United States.
(d) Amounts allowable
under sections 2621(a)(2) and 2622(b) of the Internal
Revenue Code to the extent that the taxpayer does not elect under section
642(g) of the Internal Revenue Code to reduce federal taxable income by those
amounts.
(e) Any supplemental
payments made to JOBS Plus Program participants under ORS 411.892.
(f)(A) Federal pension
income that is attributable to federal employment occurring before October 1,
1991. Federal pension income that is attributable to federal employment
occurring before October 1, 1991, shall be determined by multiplying the total
amount of federal pension income for the tax year by the ratio of the number of
months of federal creditable service occurring before October 1, 1991, over the
total number of months of federal creditable service.
(B) The subtraction
allowed under this paragraph applies only to federal pension income received at
a time when:
(i) Benefit increases
provided under chapter 569, Oregon Laws 1995, are in effect; or
(ii) Public Employees
Retirement System benefits received for service prior to October 1, 1991, are
exempt from state income tax.
(C) As used in this
paragraph:
(i) “Federal creditable
service” means those periods of time for which a federal employee earned a
federal pension.
(ii) “Federal pension”
means any form of retirement allowance provided by the federal government, its
agencies or its instrumentalities to retirees of the federal government or
their beneficiaries.
(g) Any amount included
in federal taxable income for the tax year that is attributable to the
conversion of a regular individual retirement account into a Roth individual
retirement account described in section 408A of the Internal Revenue Code, to
the extent that:
(A) The amount was
subject to the income tax of another state or the
(B) The taxpayer was a
resident of the other state or the
(h) Any amounts awarded
to the taxpayer by the Public Safety Memorial Fund Board under ORS 243.954 to
243.974 to the extent that the taxpayer has not taken the amount as a deduction
in determining the taxpayer’s federal taxable income for the tax year.
(i) If included in
taxable income for federal tax purposes, the amount withdrawn during the tax
year in qualified withdrawals from a college savings network account
established under ORS 348.841 to 348.873.
(j) Any amount paid
by the TRICARE military health care system to a health care provider during the
first two years that the health care provider participates in the TRICARE
system.
(2) There shall be added
to federal taxable income:
(a)
Interest or dividends, exempt from federal income tax, on obligations or
securities of any foreign state or of a political subdivision or authority of
any foreign state. However, the amount added under this paragraph shall be
reduced by any interest on indebtedness incurred to carry the obligations or
securities described in this paragraph and by any expenses incurred in the
production of interest or dividend income described in this paragraph.
(b) Interest or
dividends on obligations of any authority, commission, instrumentality and
territorial possession of the United States that by the laws of the United
States are exempt from federal income tax but not from state income taxes.
However, the amount added under this paragraph shall be reduced by any interest
on indebtedness incurred to carry the obligations or securities described in
this paragraph and by any expenses incurred in the production of interest or
dividend income described in this paragraph.
(c) The amount of any
federal estate taxes allocable to income in respect of a decedent not taxable
by
(d) The amount of any
allowance for depletion in excess of the taxpayer’s adjusted basis in the
property depleted, deducted on the taxpayer’s federal income tax return for the
taxable year, pursuant to sections 613, 613A, 614, 616 and 617 of the Internal
Revenue Code.
(e) For taxable years
beginning on or after January 1, 1985, the dollar amount deducted under section
151 of the Internal Revenue Code for personal exemptions for the taxable year.
(f) The amount taken as
a deduction on the taxpayer’s federal return for
unused qualified business credits under section 196 of the Internal Revenue Code.
(g) The amount of any
increased benefits paid to a taxpayer under chapter 569, Oregon Laws 1995,
under the provisions of chapter 796, Oregon Laws 1991, and under section 26,
chapter 815, Oregon Laws 1991, that is not includable in the taxpayer’s federal
taxable income under the Internal Revenue Code.
(h) The amount of any
long term care insurance premiums paid or incurred by the taxpayer during the
tax year if:
(A) The amount is taken
into account as a deduction on the taxpayer’s federal return for the tax year;
and
(B) The taxpayer claims
the credit allowed under ORS 315.610 for the tax year.
(i) Any amount taken as
a deduction under section 1341 of the Internal Revenue Code in computing
federal taxable income for the tax year, if the taxpayer has claimed a credit
for claim of right income repayment adjustment under ORS 315.068.
(j) If the taxpayer
makes a nonqualified withdrawal, as defined in ORS 348.841, from a college
savings network account established under ORS 348.841 to 348.873, the amount of
the withdrawal that is attributable to contributions that were subtracted from
federal taxable income under ORS 316.699.
(3) Discount and gain or
loss on retirement or disposition of obligations described under subsection (2)(a) of this section issued on or after January 1, 1985,
shall be treated for purposes of this chapter in the same manner as under
sections 1271 to 1283 and other pertinent sections of the Internal Revenue Code
as if the obligations, although issued by a foreign state or a political
subdivision of a foreign state, were not tax exempt under the Internal Revenue
Code.
SECTION 2. ORS 316.680, as amended by section 1 of this
2007 Act, is amended to read:
316.680. (1) There shall be subtracted from federal taxable income:
(a) The interest or
dividends on obligations of the
(b) The amount of any
federal income taxes accrued by the taxpayer during the taxable year as
described in ORS 316.685, less the amount of any refunds of federal taxes
previously accrued for which a tax benefit was received.
(c)(A) If the taxpayer
does not qualify for the subtraction under subparagraph (B) of this paragraph,
compensation (other than pension or retirement pay) received for active service
performed by a member of the Armed Forces of the
(B) For the tax year of
initial draft or enlistment into the Armed Forces of the United States or for
the tax year of discharge from or termination of full-time active duty for the
Armed Forces of the United States, compensation (other than pension or
retirement pay or pay for service when on military reserve duty) paid by the
Armed Forces of the United States for services performed outside this state, if
the taxpayer is on active duty as a full-time officer, enlistee or draftee,
with the Armed Forces of the United States.
(d) Amounts allowable
under sections 2621(a)(2) and 2622(b) of the Internal
Revenue Code to the extent that the taxpayer does not elect under section
642(g) of the Internal Revenue Code to reduce federal taxable income by those
amounts.
(e) Any supplemental
payments made to JOBS Plus Program participants under ORS 411.892.
(f)(A) Federal pension
income that is attributable to federal employment occurring before October 1,
1991. Federal pension income that is attributable to federal employment
occurring before October 1, 1991, shall be determined by multiplying the total
amount of federal pension income for the tax year by the ratio of the number of
months of federal creditable service occurring before October 1, 1991, over the
total number of months of federal creditable service.
(B) The subtraction
allowed under this paragraph applies only to federal pension income received at
a time when:
(i) Benefit increases
provided under chapter 569, Oregon Laws 1995, are in effect; or
(ii) Public Employees
Retirement System benefits received for service prior to October 1, 1991, are
exempt from state income tax.
(C) As used in this
paragraph:
(i) “Federal creditable
service” means those periods of time for which a federal employee earned a
federal pension.
(ii) “Federal pension”
means any form of retirement allowance provided by the federal government, its
agencies or its instrumentalities to retirees of the federal government or
their beneficiaries.
(g) Any amount included
in federal taxable income for the tax year that is attributable to the
conversion of a regular individual retirement account into a Roth individual
retirement account described in section 408A of the Internal Revenue Code, to
the extent that:
(A) The amount was
subject to the income tax of another state or the
(B) The taxpayer was a
resident of the other state or the
(h) Any amounts awarded
to the taxpayer by the Public Safety Memorial Fund Board under ORS 243.954 to
243.974 to the extent that the taxpayer has not taken the amount as a deduction
in determining the taxpayer’s federal taxable income for the tax year.
(i) If included in
taxable income for federal tax purposes, the amount withdrawn during the tax
year in qualified withdrawals from a college savings network account
established under ORS 348.841 to 348.873.
(j) Any amount paid by
the TRICARE military health care system to a health care provider during the
first two years that the health care provider participates in the TRICARE
system.
(k) Any amounts
included in the federal taxable income that are attributable to income earned
by an employee of the Oregon Military Department for performing duties for the
Oregon National Guard Youth Challenge Program in an amount not to exceed $6,000
per annum.
(2) There shall be added
to federal taxable income:
(a)
Interest or dividends, exempt from federal income tax, on obligations or
securities of any foreign state or of a political subdivision or authority of
any foreign state. However, the amount added under this paragraph shall be
reduced by any interest on indebtedness incurred to carry the obligations or
securities described in this paragraph and by any expenses incurred in the
production of interest or dividend income described in this paragraph.
(b) Interest or
dividends on obligations of any authority, commission, instrumentality and
territorial possession of the United States that by the laws of the United
States are exempt from federal income tax but not from state income taxes.
However, the amount added under this paragraph shall be reduced by any interest
on indebtedness incurred to carry the obligations or securities described in
this paragraph and by any expenses incurred in the production of interest or
dividend income described in this paragraph.
(c) The amount of any
federal estate taxes allocable to income in respect of a decedent not taxable
by
(d) The amount of any
allowance for depletion in excess of the taxpayer’s adjusted basis in the
property depleted, deducted on the taxpayer’s federal income tax return for the
taxable year, pursuant to sections 613, 613A, 614, 616 and 617 of the Internal
Revenue Code.
(e) For taxable years
beginning on or after January 1, 1985, the dollar amount deducted under section
151 of the Internal Revenue Code for personal exemptions for the taxable year.
(f) The amount taken as
a deduction on the taxpayer’s federal return for
unused qualified business credits under section 196 of the Internal Revenue
Code.
(g) The amount of any
increased benefits paid to a taxpayer under chapter 569, Oregon Laws 1995,
under the provisions of chapter 796, Oregon Laws 1991, and under section 26,
chapter 815, Oregon Laws 1991, that is not includable in the taxpayer’s federal
taxable income under the Internal Revenue Code.
(h) The amount of any
long term care insurance premiums paid or incurred by the taxpayer during the
tax year if:
(A) The amount is taken
into account as a deduction on the taxpayer’s federal return for the tax year;
and
(B) The taxpayer claims
the credit allowed under ORS 315.610 for the tax year.
(i) Any amount taken as
a deduction under section 1341 of the Internal Revenue Code in computing
federal taxable income for the tax year, if the taxpayer has claimed a credit
for claim of right income repayment adjustment under ORS 315.068.
(j) If the taxpayer
makes a nonqualified withdrawal, as defined in ORS 348.841, from a college
savings network account established under ORS 348.841 to 348.873, the amount of
the withdrawal that is attributable to contributions that were subtracted from
federal taxable income under ORS 316.699.
(3) Discount and gain or
loss on retirement or disposition of obligations described under subsection (2)(a) of this section issued on or after January 1, 1985,
shall be treated for purposes of this chapter in the same manner as under
sections 1271 to 1283 and other pertinent sections of the Internal Revenue Code
as if the obligations, although issued by a foreign state or a political
subdivision of a foreign state, were not tax exempt under the Internal Revenue
Code.
SECTION 2a. ORS 316.680, as amended by sections 1 and 2 of
this 2007 Act, is amended to read:
316.680. (1) There shall be subtracted from federal taxable income:
(a) The interest or dividends
on obligations of the
(b) The amount of any
federal income taxes accrued by the taxpayer during the taxable year as
described in ORS 316.685, less the amount of any refunds of federal taxes
previously accrued for which a tax benefit was received.
(c)(A) If the taxpayer
does not qualify for the subtraction under subparagraph (B) of this paragraph,
compensation (other than pension or retirement pay) received for active service
performed by a member of the Armed Forces of the
(B) For the tax year of
initial draft or enlistment into the Armed Forces of the United States or for
the tax year of discharge from or termination of full-time active duty for the
Armed Forces of the United States, compensation (other than pension or
retirement pay or pay for service when on military reserve duty) paid by the
Armed Forces of the United States for services performed outside this state, if
the taxpayer is on active duty as a full-time officer, enlistee or draftee,
with the Armed Forces of the United States.
(d) Amounts allowable
under sections 2621(a)(2) and 2622(b) of the Internal
Revenue Code to the extent that the taxpayer does not elect under section
642(g) of the Internal Revenue Code to reduce federal taxable income by those
amounts.
(e) Any supplemental
payments made to JOBS Plus Program participants under ORS 411.892.
(f)(A) Federal pension
income that is attributable to federal employment occurring before October 1,
1991. Federal pension income that is attributable to federal employment
occurring before October 1, 1991, shall be determined by multiplying the total
amount of federal pension income for the tax year by the ratio of the number of
months of federal creditable service occurring before October 1, 1991, over the
total number of months of federal creditable service.
(B) The subtraction
allowed under this paragraph applies only to federal pension income received at
a time when:
(i) Benefit increases
provided under chapter 569, Oregon Laws 1995, are in effect; or
(ii) Public Employees
Retirement System benefits received for service prior to October 1, 1991, are
exempt from state income tax.
(C) As used in this
paragraph:
(i) “Federal creditable
service” means those periods of time for which a federal employee earned a
federal pension.
(ii) “Federal pension”
means any form of retirement allowance provided by the federal government, its
agencies or its instrumentalities to retirees of the federal government or
their beneficiaries.
(g) Any amount included
in federal taxable income for the tax year that is attributable to the conversion
of a regular individual retirement account into a Roth individual retirement
account described in section 408A of the Internal Revenue Code, to the extent
that:
(A) The amount was
subject to the income tax of another state or the
(B) The taxpayer was a
resident of the other state or the
(h) Any amounts awarded
to the taxpayer by the Public Safety Memorial Fund Board under ORS 243.954 to
243.974 to the extent that the taxpayer has not taken the amount as a deduction
in determining the taxpayer’s federal taxable income for the tax year.
(i) If included in
taxable income for federal tax purposes, the amount withdrawn during the tax
year in qualified withdrawals from a college savings network account
established under ORS 348.841 to 348.873.
[(j) Any amount paid by the TRICARE military health care system to a
health care provider during the first two years that the health care provider
participates in the TRICARE system.]
[(k) Any amounts included in the federal taxable income that are
attributable to income earned by an employee of the Oregon Military Department
for performing duties for the Oregon National Guard Youth Challenge Program in
an amount not to exceed $6,000 per annum.]
(2) There shall be added
to federal taxable income:
(a)
Interest or dividends, exempt from federal income tax, on obligations or
securities of any foreign state or of a political subdivision or authority of
any foreign state. However, the amount added under this paragraph shall be
reduced by any interest on indebtedness incurred to carry the obligations or
securities described in this paragraph and by any expenses incurred in the
production of interest or dividend income described in this paragraph.
(b) Interest or
dividends on obligations of any authority, commission, instrumentality and
territorial possession of the United States that by the laws of the United
States are exempt from federal income tax but not from state income taxes.
However, the amount added under this paragraph shall be reduced by any interest
on indebtedness incurred to carry the obligations or securities described in
this paragraph and by any expenses incurred in the production of interest or
dividend income described in this paragraph.
(c) The amount of any
federal estate taxes allocable to income in respect of a decedent not taxable
by
(d) The amount of any
allowance for depletion in excess of the taxpayer’s adjusted basis in the
property depleted, deducted on the taxpayer’s federal income tax return for the
taxable year, pursuant to sections 613, 613A, 614, 616 and 617 of the Internal
Revenue Code.
(e) For taxable years
beginning on or after January 1, 1985, the dollar amount deducted under section
151 of the Internal Revenue Code for personal exemptions for the taxable year.
(f) The amount taken as
a deduction on the taxpayer’s federal return for
unused qualified business credits under section 196 of the Internal Revenue
Code.
(g) The amount of any increased
benefits paid to a taxpayer under chapter 569, Oregon Laws 1995, under the
provisions of chapter 796, Oregon Laws 1991, and under section 26, chapter 815,
Oregon Laws 1991, that is not includable in the taxpayer’s federal taxable
income under the Internal Revenue Code.
(h) The amount of any
long term care insurance premiums paid or incurred by the taxpayer during the
tax year if:
(A) The amount is taken
into account as a deduction on the taxpayer’s federal return for the tax year;
and
(B) The taxpayer claims
the credit allowed under ORS 315.610 for the tax year.
(i) Any amount taken as
a deduction under section 1341 of the Internal Revenue Code in computing
federal taxable income for the tax year, if the taxpayer has claimed a credit
for claim of right income repayment adjustment under ORS 315.068.
(j) If the taxpayer
makes a nonqualified withdrawal, as defined in ORS 348.841, from a college
savings network account established under ORS 348.841 to 348.873, the amount of
the withdrawal that is attributable to contributions that were subtracted from
federal taxable income under ORS 316.699.
(3) Discount and gain or
loss on retirement or disposition of obligations described under subsection (2)(a) of this section issued on or after January 1, 1985,
shall be treated for purposes of this chapter in the same manner as under
sections 1271 to 1283 and other pertinent sections of the Internal Revenue Code
as if the obligations, although issued by a foreign state or a political
subdivision of a foreign state, were not tax exempt under the Internal Revenue
Code.
SECTION 3. (1) A resident or nonresident individual
physician licensed under ORS chapter 677 who is engaged in the practice of
medicine qualifies for an annual credit against the taxes that are otherwise
due under ORS chapter 316 if the physician provides medical care to residents
of an Oregon Veterans’ Home.
(2) The amount of the
credit allowed under this section shall be equal to the lesser of:
(a) $1,000 for every
eight residents to whom the physician provides care at an
(b)
$5,000.
(3) The credit allowed
under this section may not exceed the tax liability of the taxpayer for the tax
year, and a credit allowed under this section that is unused may not be carried
forward to a succeeding tax year.
(4) A nonresident shall
be allowed the credit described in this section in the proportion provided in
ORS 316.117. 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.
(5) In order to qualify
for the tax credit allowed under this section, the physician claiming the
credit must submit with the physician’s tax return a letter from the Oregon
Veterans’ Home at which the physician provided care to residents, confirming
that the physician missed no more than five percent of the physician’s
scheduled visits with residents of the home during the tax year.
(6) In the case of a
shareholder of a corporation or a member of a partnership, only the care
provided by the individual shareholder or partner shall be considered, and the
full amount of the credit shall be allowed to each shareholder or partner who
qualifies in an individual capacity.
(7) The Director of
Veterans’ Affairs shall assist the Department of Revenue in determining if a
taxpayer claiming a credit under this section qualifies for the credit.
SECTION 4. Sections 3 and 5 of this 2007 Act are added
to and made a part of ORS chapter 315.
SECTION 5. (1) A health care provider who enters into a
contract for the first time on or after January 1, 2007, to provide health care
services permitted under a TRICARE contract to patients enrolled in the TRICARE
military health care system shall be allowed a one-time credit against taxes
otherwise due under ORS chapter 316 in the amount of $2,500.
(2) A health care
provider who has a contract to provide health care services permitted under a
TRICARE contract to patients enrolled in the TRICARE military health care
system shall be allowed a credit each tax year against taxes otherwise due
under ORS chapter 316 in the amount of $1,000 if the health care provider
actively participates in the TRICARE military health care system and each tax year
provides health care services to at least 10 patients enrolled in the TRICARE
military health care system. A health care provider
who serves patients in a rural community, as defined by the Office of Rural
Health, may provide health care services to fewer than 10 patients in a tax
year and qualify for the credit.
(3) A health care
provider may not receive a credit under subsections (1) and (2) of this section
in the same tax year.
(4) A nonresident shall
be allowed a credit under this section in the proportion provided in ORS
316.117. 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.
SECTION 6. (1) The Office of Rural Health shall
establish criteria for certifying health care providers as eligible for a tax
credit authorized by section 5 of this 2007 Act or a deduction from federal
taxable income under ORS 316.680. Upon finding that a health care provider
meets the eligibility criteria established by the office, the office shall
certify the provider for a tax credit under section 5 of this 2007 Act or the
tax deduction under ORS 316.680. The office may not issue more than 500
certifications under this section in any calendar year and may not certify more
than 1,000 providers before December 31, 2009.
(2) Prior to October 1
of each year, the office shall report to the legislative interim committees on
revenue regarding the number of health care providers who qualify for the tax
credit under section 5 (2) of this 2007 Act.
(3) Prior to December 31
of each year, the administrator of the TRICARE contracts with health care
providers who provide health care services to patients in
SECTION 7. The amendments to ORS 316.680 by section 1
of this 2007 Act apply to tax years beginning on or after January 1, 2007.
SECTION 8. Sections 5 and 6 of this 2007 Act apply to
tax years beginning on or after January 1, 2008, and before January 1, 2012.
SECTION 9. Section 3 of this 2007 Act
and the amendments to ORS 316.680 by section 2 of this 2007 Act apply
to tax years beginning on or after January 1, 2008, and before January 1, 2012.
SECTION 10. The amendments to ORS 316.680 by section 2a
of this 2007 Act apply to tax years beginning on or after January 1, 2012.
SECTION 11. ORS 316.699 is amended to read:
316.699. (1) There shall be subtracted from federal taxable income the
amount contributed to a college savings network account established under ORS
348.841 to 348.873.
(2) Notwithstanding
subsection (1) of this section, a subtraction under this section may not exceed
the lesser of:
[(a) $2,000 for the tax year or, in the case of a married individual
filing separately, $1,000 for the tax year; and]
(a) $4,000 for the
tax year if the taxpayer files a joint return, or $2,000 for the tax year if
the taxpayer files a return other than a joint return; and
(b) If an amount is
carried forward to a succeeding tax year under subsection (3) of this section,
the balance in the college savings network account at the close of the tax year
for which the subtraction is being made.
(3)(a) The Department
of Revenue shall annually adjust the maximum subtraction allowable under this
section according to the cost-of-living adjustment for the calendar year. The
department shall make this adjustment by multiplying the amount in subsection
(2) of this section by the percentage (if any) by which the monthly averaged
U.S. City Average Consumer Price Index for the 12 consecutive months ending
August 31 of the prior calendar year exceeds the monthly averaged U.S. City
Average Consumer Price Index for the 12 consecutive months ending August 31,
2007.
(b) As used in this
subsection, “U.S. City Average Consumer Price Index” means the U.S. City
Average Consumer Price Index for All Urban Consumers (All Items) as published
by the Bureau of Labor Statistics of the United States Department of Labor.
[(3)] (4) Any amounts contributed to a college savings
network account that are not subtracted from federal taxable income because of
the monetary limitations imposed by subsection (2) of this section may be
carried forward for four succeeding tax years and subtracted from federal
taxable income in any of those succeeding tax years in an amount that does not
exceed the monetary limitations imposed by subsection (2) of this section.
[(4)] (5) The amount contributed to a college savings network
account may be subtracted from a preceding tax year if the contribution is made
before the taxpayer files a return or before the 15th day of the fourth month
following the closing of the taxpayer’s tax year, whichever is earlier.
SECTION 12. ORS 348.841 is amended to read:
348.841. As used in ORS
348.841 to 348.873:
(1) “Account” means an
individual account established in accordance with ORS 348.841 to 348.873.
(2) “Account owner”
means the person who has the right to withdraw funds from the account. The
account owner may also be the designated beneficiary of the account.
(3) “Board” means the
Oregon 529 College Savings Board established under ORS 348.849.
(4) “Designated
beneficiary” means, except as provided in ORS 348.867, the individual
designated at the time the account is opened as having the right to receive a
qualified withdrawal for the payment of qualified higher education expenses, or
if the designated beneficiary is replaced in accordance with ORS 348.867, the
replacement.
(5) “Financial
institution” means a bank, a commercial bank, a national bank, a savings bank,
a savings and loan, a thrift institution, a credit union, an insurance company,
a trust company, a mutual fund, an investment firm or other similar entity
authorized to do business in this state.
(6) “Higher education
institution” means an eligible education institution as defined in section
529(e)(5) of the Internal Revenue Code.
(7) “Internal Revenue
Code” means the federal Internal Revenue Code[, as amended and in effect on December 31,
2002].
(8) “Member of the
family” shall have the same meaning as contained in section 529(e) of the
Internal Revenue Code.
(9) “Network” means the
Oregon 529 College Savings Network established under ORS 348.841 to 348.873.
(10) “Nonqualified
withdrawal” means a withdrawal from an account that is not a qualified
withdrawal.
(11) “Qualified higher
education expenses” means tuition and other permitted expenses as set forth in
section 529(e) of the Internal Revenue Code for the enrollment or attendance of
a designated beneficiary at a higher education institution.
(12) “Qualified
withdrawal” means a withdrawal made as prescribed under ORS 348.870 and made:
(a) From an account to
pay the qualified higher education expenses of the designated beneficiary;
(b) As the result of the
death or disability of the designated beneficiary;
(c) As the result of a
scholarship, allowance or payment described in section 135(d)(1)(A), (B) or (C)
of the Internal Revenue Code that is received by the designated beneficiary,
but only to the extent of the amount of the scholarship, allowance or payment;
or
(d) As a rollover or
change in the designated beneficiary described in ORS 348.867.
SECTION 13. The amendments to ORS 316.699 by section 11
of this 2007 Act apply to tax years beginning on or after January 1, 2008.
SECTION 14. ORS 315.354 is amended to read:
315.354. (1) A credit is
allowed against the taxes otherwise due under ORS chapter 316 (or, if the
taxpayer is a corporation, under ORS chapter 317 or 318), based upon the
certified cost of the facility during the period for which that facility is
certified under ORS 469.185 to 469.225. The credit is allowed as follows:
(a) Except as provided
in paragraph (b) or (c) of this subsection, the credit allowed in each
of the first two tax years in which the credit is claimed shall be 10 percent
of the certified cost of the facility, but may not exceed the tax liability of
the taxpayer. The credit allowed in each of the succeeding three years shall be
five percent of the certified cost, but may not exceed the tax liability of the
taxpayer.
(b) If [the application for certification under ORS
469.185 to 469.225 was filed with the State Department of Energy on or after
January 1, 2001, and] the certified cost of the facility does not exceed
$20,000, the total amount of the credit allowable under subsection [(3)] (4) of this section may be
claimed in the first tax year for which the credit may be claimed, but may not
exceed the tax liability of the taxpayer.
(c) If the facility
uses or produces renewable energy resources or is a renewable energy resource
equipment manufacturing facility, the credit allowed in each of five succeeding
tax years shall be 10 percent of the certified cost of the facility, but may
not exceed the tax liability of the taxpayer.
(2) Notwithstanding
subsection (1) of this section:
(a) If the facility is
one or more renewable energy resource systems installed in a single-family
dwelling, the amount of the credit for each system shall be determined as if
the facility was considered a residential alternative energy device under ORS
316.116, but subject to the maximum credit amount under subsection (4)(b) of
this section;
(b) If the facility is a
high-performance home, the amount of the credit shall equal the amount
determined under paragraph (a) of this subsection plus $3,000; and
(c) If the facility is a
high-performance home or a homebuilder-installed renewable energy system, the
total amount of the credit may be claimed in the first tax year for which the
credit is claimed, but may not exceed the tax liability of the taxpayer.
[(2)] (3) In order for a tax credit to be allowable under
this section:
(a) The facility must be
located in
(b) The facility must
have received final certification from the Director of the State Department of
Energy under ORS 469.185 to 469.225; and
(c) The taxpayer must be
an eligible applicant under ORS 469.205 (1)(c).
[(3)] (4) [The maximum
total credit or credits allowed for a facility under this section to eligible
taxpayers] The total amount of credit allowable
to an eligible taxpayer under this section may not exceed:
(a) 50 percent of the
certified cost of a renewable energy resources facility, a renewable energy
resource equipment manufacturing facility or a high-efficiency combined heat
and power facility;
(b) $9,000 per
single-family dwelling for homebuilder-installed renewable energy systems;
(c) $12,000 per single-family dwelling for homebuilder-installed
renewable energy systems, if the dwelling also constitutes a high-performance
home; or
(d) 35 percent of the certified cost of [the] any other facility.
[(4)(a)] (5)(a) Upon any sale,
termination of the lease or contract, exchange or other disposition of the
facility, notice thereof shall be given to the Director of the State Department
of Energy who shall revoke the certificate covering the facility as of the date
of such disposition. The new owner, or upon re-leasing of the facility, the new
lessor, may apply for a new certificate under ORS 469.215, but the tax credit
available to the new owner shall be limited to the amount of credit not claimed
by the former owner or, for a new lessor, the amount of credit not claimed by
the lessor under all previous leases.
(b) The State Department
of Energy may not revoke the certificate covering a facility under paragraph
(a) of this subsection if the tax credit associated with the facility has been
transferred to a taxpayer who is an eligible applicant under ORS 469.205
(1)(c)(A).
[(5)] (6) 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 credit remaining unused in that 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 likewise, any credit not used in
that third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and likewise, any credit not used in that fourth
succeeding tax year may be carried forward and used in the fifth succeeding tax
year, and likewise, any credit not used in that fifth succeeding tax year may
be carried forward and used in the sixth succeeding tax year, and likewise, any
credit not used in that sixth succeeding tax year may be carried forward and
used in the seventh succeeding tax year, and likewise, any credit not used in
that seventh succeeding tax year may be carried forward and used in the eighth
succeeding tax year, but may not be carried forward for any tax year
thereafter. Credits may be carried forward to and used in a tax year beyond the
years specified in subsection (1) of this section only as provided in this
subsection.
[(6)] (7) The credit provided by
this section is not in lieu of any depreciation or amortization deduction for
the facility to which the taxpayer otherwise may be entitled for purposes of
ORS chapter 316, 317 or 318 for such year.
[(7)] (8) The taxpayer’s adjusted
basis for determining gain or loss may not be decreased by any tax credits
allowed under this section.
(9) If a homebuilder
claims a credit under this section with respect to a homebuilder-installed
renewable energy system or a high-performance home:
(a) The homebuilder may
not claim credits for both a homebuilder-installed renewable energy system and
a high-performance home with respect to the same dwelling;
(b) The homebuilder must
inform the buyer of the dwelling that the homebuilder is claiming a tax credit
under this section with respect to the dwelling; and
(c) The buyer of the
dwelling may not claim a credit under this section that is based on any
facility for which the homebuilder has already claimed a credit.
(10) The definitions in
ORS 469.185 apply to this section.
SECTION 15. ORS 315.356 is amended to read:
315.356. (1) If a
taxpayer obtains a grant [or tax credit]
from the federal government [other than
an investment tax credit or a low income housing tax credit] in connection
with a facility [which] that
has been certified by the Director of the State Department of Energy, the
certified cost of the facility shall be reduced on a dollar for dollar basis.
Any income or excise tax credits [which
such] that the taxpayer would be entitled to under ORS 315.354 and
469.185 to 469.225 after any [such
reduction shall] reduction described in this subsection may not be
reduced by [such] the federal
[grants or tax credits] grant.
A taxpayer applying for a federal grant [or
credit] shall notify the Department of Revenue by certified mail within 30
days after each application, and after the receipt of any grant.
(2) A taxpayer is
eligible to participate in both this tax credit program and low interest,
government-sponsored loans.
(3) A taxpayer who
receives a tax credit or [ad valorem]
property tax relief on a pollution control facility or an alternative
energy device under ORS 307.405, 315.304 or 316.116 is not eligible for a tax
credit on the same facility or device under ORS 315.354 and 469.185 to 469.225.
(4) A credit may not be
allowed under ORS 315.354 if the taxpayer has received a tax credit on the same
facility or device under ORS 315.324.
SECTION 16. ORS 469.185 is amended to read:
469.185. As used in ORS
469.185 to 469.225 and 469.878:
(1) “Alternative fuel
vehicle” means a vehicle as defined by the Director of the State Department of
Energy by rule that is used primarily in connection with the conduct of a trade
or business and that is manufactured or modified to use an alternative fuel,
including but not limited to electricity, ethanol, methanol, gasohol and
propane or natural gas, regardless of energy consumption savings.
(2) “Car sharing
facility” means the expenses of operating a car sharing program, including but
not limited to the fair market value of parking spaces used to store the fleet
of cars available for a car sharing program, but does not include the costs of
the fleet of cars.
(3) “Car sharing program”
means a program in which drivers pay to become members in order to have joint
access to a fleet of cars from a common parking area on an hourly basis. “Car
sharing program” does not include operations conducted by car rental agencies.
(4) “Cost” means the
capital costs and expenses necessarily incurred in the acquisition, erection,
construction and installation of a facility, including site development costs
and expenses for a sustainable building practices facility.
(5) “Energy facility”
means any capital investment for which the first year energy savings yields a
simple payback period of greater than one year. An energy facility includes:
(a) Any land, structure,
building, installation, excavation, machinery, equipment or device, or any
addition to, reconstruction of or improvement of, land or an existing
structure, building, installation, excavation, machinery, equipment or device
necessarily acquired, erected, constructed or installed by any person in
connection with the conduct of a trade or business and actually used in the
processing or utilization of renewable energy resources to:
(A) Replace a
substantial part or all of an existing use of electricity, petroleum or natural
gas;
(B) Provide the initial
use of energy where electricity, petroleum or natural gas would have been used;
(C) Generate electricity
to replace an existing source of electricity or to provide a new source of
electricity for sale by or use in the trade or business; [or]
(D) Perform a process
that obtains energy resources from material that would otherwise be solid waste
as defined in ORS 459.005; or
(E) Manufacture or
distribute alternative fuels, including but not limited to electricity,
ethanol, methanol, gasohol or biodiesel.
(b) Any acquisition of,
addition to, reconstruction of or improvement of land or an existing structure,
building, installation, excavation, machinery, equipment or device necessarily
acquired, erected, constructed or installed by any person in connection with
the conduct of a trade or business in order to substantially reduce the
consumption of purchased energy.
(c) A necessary feature
of a new commercial building or multiple unit dwelling, as dwelling is defined
by ORS 469.160, that causes that building or dwelling to exceed an energy
performance standard in the state building code.
(d) The replacement of
an electric motor with another electric motor that substantially reduces the
consumption of electricity.
(6) “Facility” means an
energy facility, recycling facility, transportation facility, car sharing
facility, sustainable building practices facility, alternative fuel vehicle or
facilities necessary to operate alternative fuel vehicles, including but not
limited to an alternative fuel vehicle refueling station, a high-efficiency
combined heat and power facility, a high-performance home, a
homebuilder-installed renewable energy system, or a renewable energy resource
equipment manufacturing facility.
(7) “High-efficiency
combined heat and power facility” means a device or equipment that
simultaneously produces heat and electricity from a single source of fuel and
that meets the criteria established for a high-efficiency combined heat and
power facility under section 22 of this 2007 Act.
(8) “High-performance
home” means a new single-family dwelling that:
(a) Is designed and
constructed to reduce net purchased energy through use of both energy
efficiency and on-site renewable energy resources; and
(b) Meets the criteria
established for a high-performance home under section 22 of this 2007 Act.
(9) “Homebuilder-installed
renewable energy system” means a renewable energy resource system that:
(a) Meets the criteria
established for a renewable energy resource system under section 22 of this
2007 Act; and
(b) Is installed in a
new single-family dwelling by, or at the direction of, the homebuilder
constructing the dwelling.
[(7)] (10) “Qualified transit pass contract” means a purchase
agreement entered into between a transportation provider and a person, the
terms of which obligate the person to purchase transit passes on behalf or for
the benefit of employees, students, patients or other individuals over a
specified period of time.
[(8)] (11) “Recycling facility” means equipment used by a
trade or business solely for recycling:
(a) Including:
(A) Equipment used
solely for hauling and refining used oil;
(B) New vehicles or
modifications to existing vehicles used solely to transport used recyclable
materials that cannot be used further in their present form or location such as
glass, metal, paper, aluminum, rubber and plastic;
(C) Trailers, racks or
bins that are used for hauling used recyclable materials and are added to or
attached to existing waste collection vehicles; and
(D) Any equipment used
solely for processing recyclable materials such as bailers, flatteners,
crushers, separators and scales.
(b) But not including
equipment used for transporting or processing scrap materials that are recycled
as a part of the normal operation of a trade or business as defined by the
director.
[(9)(a)] (12)(a) “Renewable energy
resource” includes, but is not limited to[,]:
(A) Straw, forest slash, wood waste or other
wastes from farm or forest land, [industrial
waste] nonpetroleum plant or animal based biomass, solar energy,
wind power, water power or geothermal energy; or
(B) A hydroelectric
generating facility that obtains all applicable permits and complies with all
state and federal statutory requirements for the protection of fish and
wildlife and:
(i) That does not exceed
10 megawatts of installed capacity; or
(ii)
Qualifies as a research, development or demonstration facility.
(b) “Renewable energy
resource” does not include a hydroelectric generating facility [larger than one megawatt of installed
capacity unless the facility qualifies as a research, development or
demonstration facility] that is not described in paragraph (a) of this
subsection.
(13) “Renewable energy
resource equipment manufacturing facility” means any structure, building, installation,
excavation, machinery, equipment or device, or an addition, reconstruction or
improvement to land or an existing structure, building, installation,
excavation, machinery, equipment or device, that is necessarily acquired,
constructed or installed by a person in connection with the conduct of a trade
or business, that is used primarily to manufacture equipment, machinery or
other products designed to use a renewable energy resource and that meets the
criteria established under section 22 of this 2007 Act.
[(10)] (14) “Sustainable building practices facility” means a
commercial building in which building practices that reduce the amount of
energy, water or other resources needed for construction and operation of the
building are used. “Sustainable building practices facility” may be further
defined by the State Department of Energy by rule, including rules that
establish traditional building practice baselines in energy, water or other
resource usage for comparative purposes for use in determining whether a
facility is a sustainable building practices facility.
[(11)] (15) “Transportation facility” means a transportation
project that reduces energy use during commuting to and from work or school,
during work-related travel, or during travel to obtain medical or other
services, and may be further defined by the department by rule. “Transportation
facility” includes, but is not limited to, a qualified transit pass contract or
a transportation services contract.
[(12)] (16) “Transportation provider” means a public, private
or nonprofit entity that provides transportation services to members of the
public.
[(13)] (17) “Transportation services contract” means a
contract that is related to a transportation facility, and may be further
defined by the department by rule.
SECTION 17. ORS 469.200 is amended to read:
469.200. (1) The total cost of a facility that receives a preliminary
certification from the Director of the State Department of Energy for tax
credits in any calendar year [shall] may
not exceed:
(a) $20 million, in the
case of a facility using or producing renewable energy resources, a renewable
energy resource equipment manufacturing facility or a high-efficiency combined
heat and power facility; or
(b) $10 million, in the case of any other
facility.
(2) The director
shall determine the dollar amount certified for any facility and the priority
between applications for certification based upon the criteria contained in ORS
469.185 to 469.225 and applicable rules and standards adopted under ORS 469.185
to 469.225. The director may consider the status of a facility as a research,
development or demonstration facility of new renewable resource generating and
conservation technologies or a qualified transit pass contract in the
determination.
SECTION 18. ORS 469.205 is amended to read:
469.205. (1) Prior to
erection, construction, installation or acquisition of a proposed facility, any
person may apply to the State Department of Energy for preliminary
certification under ORS 469.210 if:
(a) The erection,
construction, installation or acquisition of the facility is to be commenced on
or after October 3, 1979;
(b) The facility
complies with the standards or rules adopted by the Director of the State
Department of Energy; and
(c) The applicant meets
one of the following criteria:
(A) The applicant is a
person to whom a tax credit has been transferred; or
(B) The applicant will
be the owner or contract purchaser of the facility at the time of erection,
construction, installation or acquisition of the proposed facility, and:
(i) The applicant is the
owner, contract purchaser or lessee of a trade or business that plans to
utilize the facility in connection with
(ii) The applicant is
the owner, contract purchaser or lessee of a trade or business that plans to
lease the facility to a person who will utilize the facility in connection with
(2) An application for
preliminary certification shall be made in writing on a form prepared by the
department and shall contain:
(a) A statement that the
applicant or the lessee of the applicant’s facility:
(A) Intends to convert
from a purchased energy source to a renewable energy resource;
(B) Plans to acquire, construct or install a facility that will use a
renewable energy resource or solid waste instead of electricity, petroleum or
natural gas;
(C) Plans to use a
renewable energy resource in the generation of electricity for sale or to
replace an existing or proposed use of an existing source of electricity;
(D) Plans to acquire, construct or install a facility that substantially
reduces the consumption of purchased energy;
(E) Plans to acquire,
construct or install equipment for recycling as defined in ORS 469.185 [(8)] (11);
(F) Plans to acquire an
alternative fuel vehicle or to convert an existing vehicle to an alternative
fuel vehicle;
(G) Plans to acquire, construct or install a facility necessary to
operate alternative fuel vehicles;
(H) Plans to acquire
transit passes for use by individuals specified by the applicant;
(I) Plans to acquire,
construct or install a transportation facility;
(J) Plans to acquire a
sustainable building practices facility; [or]
(K) Plans to acquire a
car sharing facility and operate a car sharing program;
(L) Plans to construct a
high-efficiency combined heat and power facility;
(M) Is
a homebuilder and plans to construct a homebuilder-installed renewable energy
system;
(N) Is
a homebuilder and plans to construct a high-performance home; or
(O) Plans to acquire,
construct or install a renewable energy resource equipment manufacturing
facility.
(b) A detailed
description of the proposed facility and its operation and information showing
that the facility will operate as represented in the application.
(c) Information on the
amount by which consumption of electricity, petroleum or natural gas by the
applicant or the lessee of the applicant’s facility will be reduced, and on the
amount of energy that will be produced for sale, as the result of using the
facility or, if applicable, information about the expected level of sustainable
building practices facility performance.
(d) The projected cost
of the facility.
(e) If applicable, a
copy of the proposed qualified transit pass contract, transportation services
contract or contract for lease of parking spaces for a car sharing facility.
(f) Any other
information the director considers necessary to determine whether the proposed
facility is in accordance with the provisions of ORS 469.185 to 469.225, and
any applicable rules or standards adopted by the director.
(3) An application for
preliminary certification shall be accompanied by a fee established under ORS
469.217. The director may refund the fee if the application for certification
is rejected.
(4) The director may
allow an applicant to file the preliminary application after the start of
erection, construction, installation or acquisition of the facility if the
director finds:
(a) Filing the
application before the start of erection, construction, installation or
acquisition is inappropriate because special circumstances render filing
earlier unreasonable; and
(b) The facility would
otherwise qualify for tax credit certification pursuant to ORS 469.185 to
469.225.
(5) A preliminary
certification of a sustainable building practices facility shall be applied for
and issued as prescribed by the department by rule.
SECTION 19. ORS 469.206 is amended to read:
469.206. (1) The owner
of a facility may transfer a tax credit for the facility in exchange for a cash
payment equal to the present value of the tax credit.
(2) 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 section.
(3) Notwithstanding
any other provision of law, a tax credit transferred pursuant to this section
does not decrease the amount of taxes required to be reported by a public
utility.
SECTION 20. ORS 469.215 is amended to read:
469.215. (1) [No] A final certification [shall] may not be issued by the
Director of the State Department of Energy under this section unless the
facility was acquired, erected, constructed or installed under a preliminary
certificate of approval issued under ORS 469.210 and in accordance with the
applicable provisions of ORS 469.185 to 469.225 and any applicable rules or
standards adopted by the director.
(2) Any person may apply
to the State Department of Energy for final certification of a facility:
(a) If the department
issued preliminary certification for the facility under ORS 469.210; and
(b)(A) After completion
of erection, construction, installation or acquisition of the proposed facility
or, if the facility is a qualified transit pass contract, after entering into
the contract with a transportation provider; or
(B) After transfer of
the facility, as provided in ORS 315.354 [(4)]
(5).
(3) An application for
final certification shall be made in writing on a form prepared by the
department and shall contain:
(a) A statement that the
conditions of the preliminary certification have been complied with;
(b) The actual cost of
the facility certified to by a certified public accountant who is not an
employee of the applicant or, if the actual cost of the facility is less than
$50,000, copies of receipts for purchase and installation of the facility;
(c) A statement that the
facility is in operation or, if not in operation, that the applicant has made
every reasonable effort to make the facility operable; and
(d) Any other
information determined by the director to be necessary prior to issuance of a
final certificate, including inspection of the facility by the department.
(4) The director shall
act on an application for certification before the 60th day after the filing of
the application under this section. The director, after consultation with the
Public Utility Commission, may issue the certificate together with such
conditions as the director determines are appropriate to promote the purposes
of this section and ORS 315.354, 469.185, 469.200, 469.205 and 469.878. The
action of the director shall include certification of the actual cost of the
facility. However, in no event shall the director certify an amount for tax
credit purposes which is more than 10 percent in excess of the amount approved
in the preliminary certificate issued for the facility.
(5) If the director
rejects an application for final certification, or certifies a lesser actual
cost of the facility than was claimed in the application, the director shall
send to the applicant written notice of the action, together with a statement
of the findings and reasons therefor, by certified mail, before the 60th day
after the filing of the application. Failure of the director to act constitutes
rejection of the application.
(6) Upon approval of an
application for final certification of a facility, the director shall certify
the facility. Each certificate shall bear a separate serial number for each
device. Where one or more devices constitute an operational unit, the director
may certify the operational unit under one certificate.
SECTION 21. Section 22 of this 2007 Act is added to and
made a part of ORS 469.185 to 469.225.
SECTION 22. The State Department of Energy shall by
rule establish all of the following criteria:
(1) For a
high-performance home, the minimum design and construction standards that must
be met or exceeded for a dwelling to be considered a high-performance home,
including but not limited to standards for the building envelope, HVAC systems,
lighting, appliances, water conservation measures, use of sustainable building
materials and on-site renewable energy systems. The criteria must also
establish the minimum reduction in estimated net purchased energy that a
dwelling must achieve to be considered a high-performance home.
(2) For a
homebuilder-installed renewable energy system, the minimum performance and
efficiency standards that a solar electric system, solar domestic water heating
system, passive solar space heating system, wind power system, geothermal
heating system, fuel cell system or other system utilizing renewable resources
must achieve to be considered a homebuilder-installed renewable energy system.
(3) For a
high-efficiency combined heat and power facility, the minimum performance and
efficiency standards that the facility must achieve to be considered a
high-efficiency combined heat and power facility.
(4) For a renewable
energy resource equipment manufacturing facility, standards relating to the
type of equipment, machinery or other products being manufactured and related
performance and efficiency standards applicable to the manufactured products.
SECTION 23. Section 24 of this 2007 Act is added to and
made a part of ORS chapter 315.
SECTION 24. A taxpayer may not be allowed a credit
under ORS 315.354 if the first tax year for which the credit with respect to a
facility certified under ORS 469.215 would otherwise be allowed begins on or
after January 1, 2016.
SECTION 25. Section 26 of this 2007 Act is added to and
made a part of ORS 469.185 to 469.225.
SECTION 26. The Director of the State Department of
Energy may not issue a final certification of a facility under ORS 469.215 on
or after January 1, 2016.
SECTION 27. Section 22 of this 2007 Act and the
amendments to ORS 315.354, 315.356, 469.185, 469.200, 469.205, 469.206 and
469.215 by sections 14 to 20 of this 2007 Act apply to facilities acquired,
erected, constructed or installed on or after January 1, 2007, and to tax years
beginning on or after January 1, 2007.
SECTION 28. 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.]
(1) “Alternative
energy device” means a category one alternative energy device or a category two
alternative energy 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) “Category one
alternative energy device” means:
(a) Any system,
mechanism or series of mechanisms that uses solar radiation for space heating
or cooling 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) Any wind powered
device used to offset or supplement the use of electricity by performing a
specific task such as pumping water;
(e) Equipment used in
the production of alternative fuels;
(f) A generator powered
by alternative fuels and used to produce electricity;
(g) An energy efficient
appliance;
(h) An alternative fuel
device; or
(i) A premium efficiency
biomass combustion device that includes a dedicated outside combustion air
source and that meets minimum performance standards that are established by the
State Department of Energy.
(5) “Category two
alternative energy device” means a fuel cell system, solar electric system or
wind electric system.
[(4)] (6) “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)] (7) “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)] (8)(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)] (9) “Domestic water heating” means the heating of water
used in a dwelling for bathing, clothes washing, dishwashing and other related
functions.
[(8)] (10) “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)] (11) “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)] (12) “First year energy yield” of an alternative
energy device is the usable energy produced under average environmental
conditions in one year.
(13) “Fuel cell
system” means any system, mechanism or series of mechanisms that uses fuel
cells or fuel cell technology to generate electrical energy for a dwelling.
[(11)] (14) “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)] (15) “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)] (16) “Related equipment” means equipment necessary to
convert a vehicle to use an alternative fuel.
[(14)] (17) “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.
(18) “Wind electric
system” means any system, mechanism or series of mechanisms that uses wind to
generate electrical energy for a dwelling.
SECTION 29. 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] each of one or more
alternative energy [device]
devices 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] In the case of a category one
alternative energy device that is not an alternative fuel device, 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 category one alternative energy device for
each dwelling [shall] may 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] each category one 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] each 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 each
category two alternative energy device that is a solar electric system
or fuel cell 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) For each category
two alternative energy device that is a wind electric system, the credit
allowed under this section may not exceed the lesser of $6,000 or the first
year energy yield in kilowatt hours per year multiplied by $2.
[(B)] (C) Notwithstanding subparagraph (A) or (B) of
this paragraph, the total amount of the [credit] credits allowed in any one tax year may not exceed
the tax liability of the taxpayer or $1,500 for each alternative energy
device, 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] category two alternative energy device
that is the basis for the credit.
[(C)] (D) Notwithstanding subparagraph (A) or (B) of
this paragraph, the total amount of the credit for each device allowed
under this paragraph may not exceed 50 percent of the total installed cost of
the [solar electric system]
category two alternative energy device.
(3)(a) In the case of a
credit for [an] a category one
alternative energy device that is an energy efficient appliance, the credit
allowed for each appliance 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]
may 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 category one 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 category one
alternative energy device is related equipment for an alternative fuel
vehicle, 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 does not affect the computation of basis under this chapter.
(6) The [credit] total credits allowed
under this section in any one year may not exceed the tax liability of the
taxpayer.
(7) 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 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.
(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)] (b) “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)] (c) [As used in
this section,] “Taxpayer” includes a transferee of a verification form
under ORS 469.170 (8).
[(14)] (13) 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] may not exceed the cost to
the taxpayer for the acquisition, construction and installation of the
alternative energy device [or solar
electric system].
SECTION 30. 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 31. 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 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 32. ORS 469.172 is amended to read:
469.172. The following
devices are not eligible for the 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, unless the
woodstove, furnace or system constitutes a premium efficiency biomass
combustion device described in ORS 469.160 (4)(i);
(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];
(11) A [solar electric system] category two
alternative energy device, if the equipment or other property that
comprises the [solar electric system]
category two alternative energy device is [also] the basis for an allowed credit for [an] a category one alternative energy device under ORS
316.116;
(12) [An] A category one alternative
energy device, if the equipment or other property that comprises the category
one alternative energy device is also the basis for an allowed credit for a
[solar electric system] category
two alternative energy device under ORS 316.116; or
(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 33. 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 34. 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. 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 35. Section 5a, chapter 832, Oregon Laws 2005, is
amended to read:
Sec.
5a. A taxpayer may not be allowed a credit under ORS 316.116 if the
first tax year for which the credit would otherwise be allowed with respect to
an alternative energy device[, solar
electric system] or alternative fuel vehicle or related equipment is on or
after January 1, 2016.
SECTION 36. The amendments to ORS 316.116, 469.160,
469.165, 469.170, 469.172, 469.176 and 469.180 and section 5a, chapter 832,
Oregon Laws 2005, by sections 28 to 35 of this 2007 Act apply to alternative
energy devices constructed or installed on or after January 1, 2007.
SECTION 37. Sections 38, 41 and 44 of this 2007 Act are
added to and made a part of ORS chapter 468A.
SECTION 38. As used in this section and sections 41,
44, 47, 48, 50 and 51 of this 2007 Act:
(1) “Combined weight”
has the meaning given that term in ORS 825.005.
(2) “Cost-effectiveness
threshold” means the cost, in dollars, per ton of diesel particulate matter
reduced, as established by rule of the Environmental Quality Commission.
(3) “Heavy-duty truck”
means a motor vehicle or combination of vehicles operated as a unit that has a
combined weight that is greater than 26,000 pounds.
(4) “Incremental cost”
means the cost of a qualifying repower or retrofit
less a baseline cost that would otherwise be incurred in the normal course of
business.
(5) “Medium-duty truck”
means a motor vehicle or combination of vehicles operated as a unit that has a
combined weight that is greater than 14,000 pounds but less than or equal to
26,000 pounds.
(6) “Motor vehicle” has
the meaning given that term in ORS 825.005.
(7) “Nonroad
(8) “
(9) “Oregon diesel truck
engine” means a diesel engine in a truck at least 50 percent of the use of
which, as measured by miles driven or hours operated, has occurred in Oregon
for the two years preceding the scrapping of the engine.
(10) “Public highway”
has the meaning given that term in ORS 825.005.
(11) “Repower” means to
scrap an old diesel engine and replace it with a new engine, a used engine or a
remanufactured engine, or with electric motors, drives or fuel cells, with a
minimum useful life of seven years.
(12) “Retrofit” means to
equip a diesel engine with new emissions-reducing parts or technology after the
manufacture of the original engine. A retrofit must use the greatest degree of
emissions reduction available for the particular application of the equipment
retrofitted that meets the cost-effectiveness threshold.
(13) “Scrap” means to
destroy and render inoperable.
(14) “Truck” means a
motor vehicle or combination of vehicles operated as a unit that has a combined
weight that is greater than 14,000 pounds.
SECTION 39. Section 38 of this 2007 Act is amended to
read:
Sec.
38. As used in this section and sections 41[,] and 44[, 47, 48, 50
and 51] of this 2007 Act:
(1) “Combined weight”
has the meaning given that term in ORS 825.005.
(2) “Cost-effectiveness
threshold” means the cost, in dollars, per ton of diesel particulate matter reduced,
as established by rule of the Environmental Quality Commission.
(3) “Heavy-duty truck”
means a motor vehicle or combination of vehicles operated as a unit that has a
combined weight that is greater than 26,000 pounds.
(4) “Incremental cost”
means the cost of a qualifying repower or retrofit
less a baseline cost that would otherwise be incurred in the normal course of
business.
(5) “Medium-duty truck”
means a motor vehicle or combination of vehicles operated as a unit that has a
combined weight that is greater than 14,000 pounds but less than or equal to
26,000 pounds.
(6) “Motor vehicle” has
the meaning given that term in ORS 825.005.
(7) “Nonroad Oregon
diesel engine” means any
(8) “
(9) “Oregon diesel truck
engine” means a diesel engine in a truck at least 50 percent of the use of
which, as measured by miles driven or hours operated, has occurred in Oregon
for the two years preceding the scrapping of the engine.
(10) “Public highway”
has the meaning given that term in ORS 825.005.
(11) “Repower” means to
scrap an old diesel engine and replace it with a new engine, a used engine or a
remanufactured engine, or with electric motors, drives or fuel cells, with a
minimum useful life of seven years.
(12) “Retrofit” means to
equip a diesel engine with new emissions-reducing parts or technology after the
manufacture of the original engine. A retrofit must use the greatest degree of
emissions reduction available for the particular application of the equipment
retrofitted that meets the cost-effectiveness threshold.
(13) “Scrap” means to
destroy and render inoperable.
(14) “Truck” means a
motor vehicle or combination of vehicles operated as a unit that has a combined
weight that is greater than 14,000 pounds.
SECTION 40. The amendments to section 38 of this 2007
Act by section 39 of this 2007 Act become operative on January 2, 2018.
SECTION 41. (1) The Environmental Quality Commission by
rule shall establish standards related to the certified cost necessary to
perform a qualifying repower or retrofit, including but not limited to rules
establishing the certified cost for purposes of the tax credit established in
section 47 of this 2007 Act.
(2) For the purposes of
subsection (1) of this section, certified cost:
(a) May not exceed the
incremental cost of labor and hardware that the Department of Environmental
Quality finds necessary to perform a qualifying repower or retrofit;
(b) Does not include the
cost of any portion of a repower or retrofit undertaken to comply with any
applicable local, state or federal pollution or emissions law or for ordinary
maintenance, repair or replacement of a diesel engine; and
(c) May not exceed the
cost-effectiveness threshold.
SECTION 42. Section 41 of this 2007 Act is amended to
read:
Sec.
41. (1) The Environmental Quality Commission by rule shall establish
standards related to the certified cost necessary to perform a qualifying
repower or retrofit[, including but not
limited to rules establishing the certified cost for purposes of the tax credit
established in section 47 of this 2007 Act].
(2) For the purposes of
subsection (1) of this section, certified cost:
(a) May not exceed the
incremental cost of labor and hardware that the Department of Environmental
Quality finds necessary to perform a qualifying repower or retrofit;
(b) Does not include the
cost of any portion of a repower or retrofit undertaken to comply with any
applicable local, state or federal pollution or emissions law or for ordinary
maintenance, repair or replacement of a diesel engine; and
(c) May not exceed the
cost-effectiveness threshold.
SECTION 43. The amendments to section 41 of this 2007
Act by section 42 of this 2007 Act become operative on January 2, 2018.
SECTION 44. (1) The Environmental Quality Commission by
rule shall establish standards for the qualifying repower of a nonroad Oregon
diesel engine or retrofit of an Oregon diesel engine, including but not limited
to rules establishing repower or retrofit qualifications for purposes of the
tax credit established in section 47 of this 2007 Act.
(2) The standards
adopted by the commission under this section must include:
(a) A requirement for
the reduction of diesel particulate matter emissions by at least 25 percent
compared with the baseline emissions for the relevant engine year and
application;
(b) A list of
technologies approved as qualifying repowers or retrofits that have been
verified by the United States Environmental Protection Agency or the California
Air Resources Board; and
(c) A requirement that a
qualifying repower or retrofit does not include the repower or retrofit of a
vehicle or engine for which a tax credit under section 47 of this 2007 Act has
been allowed, unless the repower or retrofit will reduce emissions further than
the repower or retrofit funded by the tax credit.
SECTION 45. Section 44 of this 2007 Act is amended to
read:
Sec.
44. (1) The Environmental Quality Commission by rule shall establish
standards for the qualifying repower of a nonroad Oregon diesel engine or
retrofit of an Oregon diesel engine[,
including but not limited to rules establishing repower or retrofit
qualifications for purposes of the tax credit established in section 47 of this
2007 Act].
(2) The standards
adopted by the commission under this section must include:
(a) A requirement for
the reduction of diesel particulate matter emissions by at least 25 percent
compared with the baseline emissions for the relevant engine year and
application; and
(b) A list of
technologies approved as qualifying repowers or retrofits that have been
verified by the United States Environmental Protection Agency or the California
Air Resources Board[; and].
[(c) A requirement that a qualifying repower or retrofit does not
include the repower or retrofit of a vehicle or engine for which a tax credit
under section 47 of this 2007 Act has been allowed, unless the repower or
retrofit will reduce emissions further than the repower or retrofit funded by
the tax credit.]
SECTION 46. The amendments to section 44 of this 2007
Act by section 45 of this 2007 Act become operative on January 2, 2018.
SECTION 47. (1) A personal income or corporate income
or excise taxpayer is allowed a credit against the taxes that are otherwise due
under ORS chapter 316, 317 or 318 for the certified costs of a repower of a
nonroad Oregon diesel engine or retrofit of an Oregon diesel engine that occurs
after the effective date of this 2007 Act if:
(a) The repower or
retrofit has been identified as qualifying for the credit under rules adopted
by the Environmental Quality Commission under section 44 of this 2007 Act;
(b) The engine will
constitute an
(c) The taxpayer has
obtained a tax credit cost certification from the Department of Environmental
Quality under section 51 of this 2007 Act for the cost of the repower or
retrofit.
(2) The maximum amount
of the tax credit allowed under this section is limited to:
(a) 25 percent of the
certified cost of each qualifying repower; and
(b) 50 percent of the
certified cost of each qualifying retrofit.
(3) The amount of the
tax credit allowed to the taxpayer under this section in any one tax year may
not exceed the tax liability of the taxpayer for the tax year.
(4) Any tax credit that
is allowed under this section, but limited by subsection (3) of this section,
and that is not used by the taxpayer in a particular tax year may be carried
forward and offset against the taxpayer’s tax liability as prescribed in
subsection (3) of this section for the next succeeding tax year. Any credit
remaining unused in the next succeeding tax year may be carried forward and
offset against the taxpayer’s tax liability as prescribed in subsection (3) of
this section for the second succeeding tax year. Any credit remaining unused in
the second succeeding tax year may be carried forward and offset against the
taxpayer’s tax liability as prescribed in subsection (3) of this section for
the third succeeding tax year, but may not be carried forward for any tax year
thereafter.
(5) The credit allowed
under this section is not in lieu of any depreciation or amortization deduction
for the engine to which the taxpayer otherwise may be entitled for purposes of
ORS chapter 316, 317 or 318. The taxpayer’s adjusted basis for determining gain
or loss may not be decreased by any tax credits allowed under this section.
(6)(a) The Department of
Revenue may disallow the credit allowed under this section if the department
finds that the credit was obtained by fraud or misrepresentation, or if the
department learns that the engine that was the subject of the qualifying
repower or retrofit was destroyed by arson committed by the taxpayer, or if the
engine no longer meets the requirements for obtaining the tax credit.
(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, the
department shall proceed to collect those taxes not paid by the taxpayer as a result
of the prior granting of the credit and the taxpayer shall be denied any
further credit provided under this section.
(c) The department may
perform activities necessary to ensure that recipients of the tax credit comply
with applicable requirements.
(7)(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 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.
(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.
(8) The taxpayer shall
claim the credit on a form prescribed by the Department of Revenue containing
the information required by the Department of Revenue. The taxpayer shall
maintain the tax credit cost certification issued by the Department of
Environmental Quality under section 51 of this 2007 Act in the records of the
taxpayer for the length of time prescribed by the Department of Revenue and
shall provide a copy of the cost certification to the Department of Revenue if
requested.
(9) A taxpayer may not
claim a credit under this section and ORS 315.304 with respect to the same
diesel engine or group of diesel engines. A taxpayer may claim a credit under
this section and under ORS 469.185 to 469.225 with respect to the same diesel
engine or group of diesel engines if the taxpayer and diesel engines otherwise
meet the requirements to be allowed a tax credit under ORS 469.185 to 469.225.
SECTION 48. (1) A person that has obtained a tax credit
cost certification from the Department of Environmental Quality under section
51 of this 2007 Act may transfer the cost certification to a personal income or
corporate income or excise taxpayer in exchange for consideration from the
taxpayer.
(2) In order for a
credit under section 47 of this 2007 Act to be claimed by a person that does
not own the repowered or retrofitted engine that qualifies for the credit, the
person that received the tax credit cost certification and the taxpayer that
will claim the credit must jointly file a cost certification transfer notice
with the Department of Revenue to transfer the cost certification to the
taxpayer. The transfer notice shall be on a form prescribed by the department
and shall contain any information required by the department.
(3) The cost
certification transfer notice shall be filed with the Department of Revenue
prior to the first tax year for which a credit will be claimed under section 47
of this 2007 Act. A transfer is not allowed under this section if the
transferor has claimed any portion of the credit allowed under section 47 of
this 2007 Act.
SECTION 49. Sections 47 and 48 of this 2007 Act apply
to diesel engine repower and retrofit tax credit cost certifications issued in
tax years beginning on or after January 1, 2008.
SECTION 50. (1) The Environmental Quality Commission shall
adopt rules to implement this section and sections 47, 48 and 51 of this 2007
Act, including rules:
(a) Imposing a
nonrefundable application fee of $50 for applications for cost certification of
repowers or retrofits that qualify for the tax credit allowed under section 47
of this 2007 Act.
(b) Imposing a
nonrefundable application processing fee. The amount of the fee shall be the
amount that in the judgment of the commission is needed for the Department of
Environmental Quality to recoup its expenses in administering the tax credit
cost certification under section 51 of this 2007 Act.
(2) The Environmental
Quality Commission shall consult with the Department of Revenue prior to
adopting or amending rules under this section.
SECTION 51. (1) A person seeking a tax credit under
section 47 of this 2007 Act or a person seeking to transfer a tax credit cost
certification under section 48 of this 2007 Act shall first apply to the
Department of Environmental Quality for certification of the cost of a repower
or retrofit of an engine that qualifies for the tax credit under section 47 of
this 2007 Act.
(2) The application must
contain the following information:
(a) The name, address
and taxpayer identification number of the taxpayer;
(b) A statement that the
engine on which the repower or retrofit was performed is owned by the applicant
and is intended to be an
(c) A description of the
technologies used in the repower or retrofit that are sufficient for the
department to determine if the repower or retrofit qualifies for the tax
credit;
(d) Invoices or other
documentation of the cost and payment of the repower or retrofit; and
(e) Any other
information required by the department or required under rules adopted by the
Environmental Quality Commission.
(3) The taxpayer shall
file the application within one year following the date of the invoice for the
qualifying repower or retrofit. The application may not be accepted unless the
application includes payment of the nonrefundable fees imposed under rules
adopted under section 50 of this 2007 Act.
(4) The department shall
consider completed applications and determine if the application describes a
repower or retrofit that qualifies for a tax credit under section 47 of this
2007 Act and, if qualified, the certified cost of the repower or retrofit. In
determining the amount of a tax credit under this section, the department shall
reduce the incremental cost of a qualifying repower or retrofit by the value of
any existing financial incentive that directly reduces the cost of the
qualifying repower or retrofit, including tax credits, grants, loans or any
other public financial assistance. The department shall send written notice of
the certified cost to the taxpayer. The department may not certify more than $3
million of tax credits under this section during each calendar year.
(5) If the department
determines that a repower or retrofit does not qualify for a tax credit under
section 47 of this 2007 Act or certifies a lesser amount than was sought in the
application, the taxpayer may appeal the determination as a contested case
under ORS chapter 183.
(6) The department shall
deposit fees collected under this section in a miscellaneous receipts account
established in the State Treasury for the benefit of the department. Amounts in
the account are continuously appropriated to the department for the purpose of
reimbursing the department for expenses incurred in administering this section.
SECTION 52. Sections 47, 48, 50 and 51 of this 2007 Act
are repealed on January 2, 2018.
SECTION 53. Section 28, chapter 618, Oregon Laws 2003, is
amended to read:
Sec.
28. (1) As used in this section and section 29, chapter 618,
(a) “Combined weight”
has the meaning given that term in ORS 825.005.
(b) “Motor vehicle” has
the meaning given that term in ORS 825.005.
(c) “Truck” means a
motor vehicle or combination of vehicles that has a combined weight of more
than 26,000 pounds.
(2) A taxpayer who owns
a truck that is registered in Oregon under the provisions of ORS chapter 803 or
826 and that has a diesel engine that was purchased in Oregon on or after [the effective date of this 2003 Act] the
effective date of this 2007 Act, and that is certified by the federal
Environmental Protection Agency to emit [oxides
of nitrogen] particulate matter at the rate of [2.5] 0.01 grams per brake horsepower-hour or less, is
allowed a credit against the taxes otherwise due under ORS chapter 316, if the
taxpayer is a resident individual, or against the taxes otherwise due under ORS
chapter 317, if the taxpayer is a corporation. The total amount of the credit
under this section depends on the number of trucks owned by the taxpayer prior
to the purchase, as follows:
(a)
1 to 10 trucks, $925 for each qualifying engine purchased.
(b)
11 to 50 trucks, $705 for each qualifying engine purchased.
(c) 51 to 100 trucks,
$525 for each qualifying engine purchased.
(d) More than 100
trucks, $400 for each qualifying engine purchased.
(3) Notwithstanding
subsection (2) of this section, a taxpayer may not claim a credit under this
section of more than $80,000 for purchases in any one year.
(4) A credit may not be
allowed under this section unless the taxpayer claiming the credit complies
with rules adopted by the [Department of]
Environmental Quality Commission and the Department of Revenue as
provided in section 29, chapter 618, Oregon Laws 2003 [of this 2003 Act].
(5) Except as provided
under subsection (6) of this section, the credit allowed in any one year may
not exceed the tax liability of the taxpayer.
(6) 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
the next succeeding tax year may be carried forward and used in the second
succeeding tax year, any credit not used in the second succeeding tax year may
be carried forward and used in the third succeeding tax year and any credit not
used in the third succeeding tax year may be carried forward and used in the
fourth succeeding tax year but may not be carried forward for any tax year
thereafter.
(7)(a) The credit
provided by this section is not in lieu of any depreciation or amortization
deduction for the truck to which the taxpayer otherwise may be entitled under
ORS chapter 316 or 317 for the tax year.
(b) The taxpayer’s
adjusted basis for determining gain or loss may not be further decreased by any
tax credit allowed under this section.
(8)(a) Pursuant to the
procedures for a contested case under ORS [183.310
to 183.550] chapter 183, the Department of Revenue may order the
disallowance of the credit allowed under this section if it finds, by order, that the credit was obtained by fraud or
misrepresentation.
(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 of Revenue 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 from and after the date that the
order of disallowance becomes final.
(9) If the engine 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 described 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 of
Revenue. If the taxpayer is convicted of arson, the Department of Revenue shall
disallow the credit in accordance with subsection (8) of this section.
(10)(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 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.
(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.
SECTION 54. Section 29, chapter 618, Oregon Laws 2003, is
amended to read:
Sec.
29. (1) The [Department of]
Environmental Quality Commission, after consultation with [and] the Department of Revenue,
shall adopt rules for implementing section 28 [of this 2003 Act], chapter 618, Oregon Laws 2003. Rules may
include but need not be limited to rules specifying procedures for application,
review and approval of the tax credit and rules for issuance and use of a
certificate of credit approval.
(2) The application
developed under subsection (1) of this section shall include:
(a) The name, address
and taxpayer identification number of the taxpayer;
(b) The number of trucks
owned by the taxpayer and the number of engines eligible for the tax credit
that the taxpayer has purchased; and
(c) Any other
information that the rules adopted under subsection (1) of this section may
require.
(3) Applications filed
in compliance with this section and section 28 [of this 2003 Act], chapter 618, Oregon Laws 2003, shall be
approved to the extent that the total of estimated tax credits for all approved
purchases of engines for the calendar year is equal to or less than [$3 million] $500,000. An
application may not be approved if the addition of the amount of the tax credit
to the amount of the tax credits for all approved purchases for the calendar year
would exceed [$3 million] $500,000.
(4) Notwithstanding
section 31 [of this 2003 Act],
chapter 618, Oregon Laws 2003, the Department of Environmental Quality may
approve applications for tax credits for qualifying engines purchased in
calendar years 2004[, 2005, 2006 and 2007]
through 2011, although the taxpayer may not claim the credit until a tax
year beginning on or after January 1, 2005.
(5) The Department of
Revenue may disallow, in whole or in part, a claim for credit under section 28
[of this 2003 Act], chapter 618,
Oregon Laws 2003, upon the Department of Revenue’s determination that,
under section 28 [of this 2003 Act],
chapter 618, Oregon Laws 2003, the taxpayer is not entitled to the credit
or is entitled to only a portion of the amount claimed.
(6) The Department of
Environmental Quality shall charge a fee of [$15] $50 for each engine for which a taxpayer applies for a
tax credit. The fee is payable to the department and may not be refunded to the
applicant for any reason.
SECTION 55. Section 31, chapter 618, Oregon Laws 2003, is
amended to read:
Sec.
31. The tax credit established in section 28 [of this 2003 Act], chapter 618, Oregon Laws 2003, applies to
tax years beginning on and after January 1, 2005, and to engine model years
2003[, 2004, 2005, 2006 and 2007]
through 2011.
SECTION 56. Section 32, chapter 618, Oregon Laws 2003, is
amended to read:
Sec.
32. A certificate of credit approval may not be issued under section
29, chapter 618, Oregon Laws 2003, [of
this 2003 Act] after December 31, [2007]
2011.
SECTION 57. The amendments to sections 28, 29, 31 and
32, chapter 618, Oregon Laws 2003, by sections 53 to 56 of this 2007 Act apply
to certificates of credit approval under section 29, chapter 618, Oregon Laws
2003, that are issued on or after the effective date of this 2007 Act.
SECTION 58. (1) Sections 47 and 48 of this 2007 Act and
section 28, chapter 618,
(2) Sections 50 and 51
of this 2007 Act and section 29, chapter 618,
SECTION 59. ORS 315.514 is amended to read:
315.514. (1) A credit
against the taxes that are otherwise due under ORS chapter 316 or, if the
taxpayer is a corporation, under ORS chapter 317 or 318, is allowed to a
taxpayer for certified film production development contributions made by the
taxpayer during the tax year to the Oregon Production Investment Fund
established under ORS 284.367.
(2)(a) The amount of the
tax credit shall equal the amount certified for credit by the Oregon Film and
Video Office, except that a contribution must equal at least 90 percent of the
tax credit.
(b) The Oregon Film and
Video Office shall adopt rules for determining the amount of tax credit to be
certified by the office. The rules shall be adopted in order to achieve the
following goals:
(A) Subject to paragraph
(a) of this subsection, generate contributions for which tax credits of [$1 million] $5 million are
certified for each fiscal year;
(B) Maximize income and
excise tax revenues that are retained by the State of
(C) Provide the
necessary financial incentives for taxpayers to make contributions, taking into
consideration the impact of granting a credit upon a taxpayer’s federal income
tax liability.
(3) A taxpayer seeking a
tax credit under this section shall apply for tax credit certification to the
Oregon Film and Video Office on a form supplied by the office. The taxpayer
shall include payment of the contribution at the time of application.
(4) Contributions made
under this section shall be deposited in the Oregon Production Investment Fund.
(5)(a) Upon receipt of a
contribution, the Oregon Film and Video Office shall issue to the taxpayer
written certification of the amount certified for tax credit under this section
to the extent the amount certified for tax credit, when added to all amounts
previously certified for tax credit under this section, does not exceed [$1 million] $5 million for the fiscal
year in which certification is made.
(b) The Oregon Film and
Video Office is not liable, and a refund of a contributed amount need not be
made, if a taxpayer who has received tax credit certification is unable to use
all or a portion of the tax credit to offset the tax liability of the taxpayer.
(6) To the extent the
Oregon Film and Video Office does not certify contributed amounts as eligible
for a tax credit under this section, the taxpayer may request a refund of the
amount the taxpayer contributed, and the office shall refund that amount.
(7)(a) Except as
provided in paragraph (b) of this subsection, a tax credit claimed under this
section may not exceed the tax liability of the taxpayer and may not be carried
over to another tax year.
(b) 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
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 but may not be carried forward for any tax year thereafter.
(c) A taxpayer is not
eligible for a tax credit under this section if the first tax year for which
the credit would otherwise be allowed begins on or after January 1, 2012.
(8) If a tax credit is
claimed under this section by a nonresident or part-year resident taxpayer, the
amount shall be allowed without proration under ORS 316.117.
(9) A taxpayer who has
received a tax credit certificate under this section may sell the certificate
to another taxpayer. The sale is effective only if a notice of tax credit
certificate sale is filed with the Department of Revenue. The notice shall be
filed on a form prescribed by the department on or before the date on which the
income or corporate excise tax return of the buyer for the first year for which
the credit could be claimed is filed or due, whichever is earlier. The notice
form shall include the following information:
(a) The name and
taxpayer identification number of the seller;
(b) The name and
taxpayer identification number of the buyer;
(c) The amount of the
tax credit certificate that is being sold to the buyer;
(d) The amount of the
tax credit certificate that is being retained by the seller; and
(e) Any other
information required by the department.
(10) If requested by the
Department of Revenue, the Oregon Film and Video Office shall supply a list of
taxpayers that have obtained tax credit certification under this section, and
for each listed taxpayer disclose:
(a) The amount of
contribution made by the taxpayer; and
(b) The amount certified
for tax credit under this section.
(11) If the amount of
contribution for which a tax credit certification is made is allowed as a
deduction for federal tax purposes, the amount of the contribution shall be
added to federal taxable income for
SECTION 60. The amendments to ORS 315.514 by section 59
of this 2007 Act apply to tax credit certifications issued by the
SECTION 61. ORS 317.097 is amended to read:
317.097. (1) A credit
against taxes otherwise due under this chapter for the taxable year shall be
allowed to a lending institution in an amount equal to the difference between:
(a) The amount of
finance charge charged by the lending institution during the taxable year at an
annual rate less than the market rate for a loan that is made before January 1,
2020, that complies with the requirements of this section; and
(b) The amount of
finance charge that would have been charged during the taxable year by the
lending institution for the loan for housing construction, development,
acquisition or rehabilitation measured at the annual rate charged by the
lending institution for nonsubsidized loans made under like terms and
conditions at the time the loan for housing construction, development,
acquisition or rehabilitation is made.
(2) The maximum amount
of credit for the difference between the amounts described in subsection (1)(a) and (b) of this section may not exceed four percent of
the average unpaid balance of the loan during the tax year for which the credit
is claimed.
(3) 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 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.
(4) In order to be
eligible for the tax credit allowed under subsection (1) of this section, the
loan shall be:
(a) Made to an
individual or individuals who own the dwelling, participate in an
owner-occupied community rehabilitation program and are certified by the local
government or its designated agent as having an income level at the time the
loan is made of less than 80 percent of the area median income; [or]
(b)(A) Made to a
qualified borrower;
(B) Used to finance
construction, development, acquisition or rehabilitation [or development] of housing; and
(C) Accompanied by a
written certification by the Housing and Community Services Department that
the:
(i) Housing created by
the loan is or will be occupied by households earning less than 80 percent of
the area median income; and
(ii) Full amount of
savings from the reduced interest rate provided by the lending institution is
or will be passed on to the tenants in the form of reduced housing payments,
regardless of other subsidies provided to the housing project[.];
(c)(A) Made to a
qualified borrower;
(B) Used to finance
construction, development, acquisition, or acquisition and rehabilitation of
housing consisting of a manufactured dwelling park; and
(C) Accompanied by a
written certification by the Housing and Community Services Department that the
housing will continue to be operated as a manufactured dwelling park during the
period for which the tax credit is allowed; or
(d)(A) Made to a
qualified borrower;
(B) Used to finance
acquisition, or acquisition and rehabilitation, of housing consisting of a
preservation project; and
(C) Accompanied by a
written certification by the Housing and Community Services Department that the
housing preserved by the loan:
(i) Is or will be
occupied by households earning less than 80 percent of the area median income;
and
(ii) Has a rent
assistance contract with the United States Department of Housing and Urban
Development or the United States Department of Agriculture that will be
maintained by the qualified borrower.
(5) A loan made to
refinance a loan that meets the criteria stated in subsection (4) of this
section shall be treated the same as a loan that meets the criteria stated in
subsection (4) of this section.
(6) In order to be
eligible for the tax credit allowed under subsection (1) of this section, the
loan also shall be accompanied by a written certification by the Housing and
Community Services Department that:
(a) Specifies the
period, as determined by the Housing and Community Services Department, during
which the loan is eligible for the tax credit under subsection (1) of this
section; and
(b) States that the loan
is within the limitation imposed by subsection (7) of this section.
(7)(a) The Housing and
Community Services Department may certify loans that are eligible under
subsection (4) of this section if the total credits attributable to all loans
eligible for credits under subsection (1) of this section and then outstanding
do not exceed [$11] $13
million for any fiscal year. In making loan certifications, the Housing
and Community Services Department shall attempt to distribute the tax credits
statewide, but shall concentrate the tax credits in those areas of the state
that are determined by the State Housing Council to have the greatest need for
affordable housing.
(b) The certification
under subsection (6) of this section shall state the period for which the
credit will be allowed, which may not exceed 20 years.
(8) The applicant’s
receipt of a credit under section 42 of the Internal Revenue Code does not
affect the credit allowed under this section.
(9) A loan meeting the
requirements of subsections (4) and (6) of this section may be sold to a
qualified assignee with or without the lending institution’s retaining
servicing of the loan so long as a designated lending institution maintains
records annually verified by a loan servicer that establish the amount of tax
credit earned by the taxpayer throughout each year of eligibility.
(10) As used in this
section:
(a) “Annual rate” means
the yearly interest rate specified on the note, and not the annual percentage
rate, if any, disclosed to the applicant to comply with the federal Truth in
Lending Act.
(b) “Finance charge”
means the total of all interest, loan fees, interest on any loan fees financed
by the lending institution, and other charges related to the cost of obtaining
credit.
(c) “Lending institution”
means any insured institution, as that term is defined in ORS 706.008, any
mortgage banking company that maintains an office in this state or any
community development corporation that is organized under the Oregon Nonprofit
Corporation Law.
(d) “Manufactured dwelling park” has the meaning given that term in ORS
446.003.
(e) “Nonprofit
corporation” means a corporation that is exempt from income taxes under section
501(c)(3) or (4) of the Internal Revenue Code as
amended and in effect on December 31, 2006.
(f) “Preservation project”
means housing that was previously developed as affordable housing with a
contract for rent assistance from the United States Department of Housing and
Urban Development or the United States Department of Agriculture and that is
being acquired by a sponsoring entity.
[(d)] (g) “Qualified assignee” means
any investor participating in the secondary market for real estate loans.
[(e)] (h) “Qualified borrower” means any borrower that is a
sponsoring entity that has a controlling interest in the real property that is
financed by the loan described in subsection (4) of this section. Such a
controlling interest includes, but is not limited to, a controlling interest in
the general partner of a limited partnership that owns the real property.
[(f)] (i) “Sponsoring entity” means
a nonprofit corporation, nonprofit cooperative, state governmental
entity, local unit of government as defined in ORS 466.706, housing authority
or any other person, provided that the person has agreed to restrictive
covenants imposed by a nonprofit corporation, nonprofit cooperative,
state governmental entity, local unit of government or housing authority.
(11) Notwithstanding any
other provision of law, a lending institution that is a community development
corporation organized under the Oregon Nonprofit Corporation Law may transfer
any part or all of any tax credit arising under subsection (1) of this section
to one or more other lending institutions that are stockholders or members of
the community development corporation or that otherwise participate through the
community development corporation in the making of one or more loans that
generate the tax credit under subsection (1) of this section.
(12) The lending
institution shall file an annual statement with the Housing and Community
Services Department, specifying that it has conformed with
all requirements imposed by law to qualify for this tax credit.
(13) The Housing and
Community Services Department and the Department of Revenue may adopt rules to
carry out the provisions of this section.
SECTION 62. The amendments to ORS 317.097 by section 61
of this 2007 Act apply to tax credit certifications issued on or after the
effective date of this 2007 Act.
SECTION 63. ORS 316.085 is amended to read:
316.085. (1)(a) There shall be allowed a personal exemption credit
against taxes otherwise due under this chapter. The credit shall equal $90
multiplied by the number of personal exemptions allowed under section 151 of
the Internal Revenue Code.
(b) In the case of an
individual with respect to whom a credit under paragraph (a) of this subsection
is allowable to another taxpayer for a taxable year beginning in the calendar
year in which the individual’s taxable year begins, the credit amount
applicable to such individual for such individual’s taxable year is zero.
(2)(a) A nonresident
shall be allowed the credit provided under subsection (1) of this section
computed in the same manner and subject to the same limitations as the credit
allowed to a resident of this state. 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 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.
(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.
(3) The Department of
Revenue shall recompute the dollar amount of the personal exemption credit
allowed for state personal income tax purposes. The computation shall be as
follows:
(a) Divide the monthly
averaged U.S. City Average Consumer Price Index for the 12 consecutive months
ending August 31 of the prior calendar year by the monthly averaged index for
the first six months of 1986.
(b) Recompute the dollar
amount of the personal exemption credit by multiplying $90 by the appropriate
indexing factor determined as provided in paragraph (a) of this subsection.
Round off the amount obtained under this paragraph to the nearest $1.
(4) As used in this
section, “U.S. City Average Consumer Price Index” means the U.S. City Average
Consumer Price Index for All Urban Consumers (All Items) as published by the
Bureau of Labor Statistics of the United States Department of Labor.
[(5) For purposes of determining if a personal exemption credit or an
additional personal exemption credit is allowable under this chapter or
determining the number of personal exemption credits allowed, section 151(d)(3)
of the Internal Revenue Code shall be disregarded.]
(5) Notwithstanding
subsections (1) to (3) of this section, if a taxpayer’s federal adjusted gross
income for the tax year exceeds the threshold amount, the exemption amount
shall be the greater of:
(a)
Thirty-three percent of the amount computed in subsection (3) of this section;
or
(b) The amount computed
in subsection (3) of this section reduced by:
(A) Two percentage
points for each $2,500 (or fraction thereof) by which the taxpayer’s federal
adjusted gross income exceeds the threshold amount; or
(B) Two percentage
points for each $1,250 (or fraction thereof) by which the taxpayer’s federal
adjusted gross income exceeds the threshold amount, if the taxpayer is married
but filing separately.
(6) As used in this
section, “threshold amount” means:
(a)
$234,600 in the case of a joint return or a surviving spouse.
(b)
$195,500 in the case of a head of a household.
(c) $156,400 in the case of an individual who is not a married individual
and is not a surviving spouse.
(d)
$117,300 in the case of a married individual filing a separate return.
(7) The Department of Revenue
shall adjust the threshold amounts in subsection (6) of this section according
to the cost-of-living adjustment for the calendar year. The department shall
annually recompute the threshold amounts for the current tax year by
multiplying each dollar amount by the percentage (if any) by which the monthly
averaged U.S. City Average Consumer Price Index for the 12 consecutive months
ending August 31 of the prior calendar year exceeds the monthly averaged U.S.
City Average Consumer Price Index for the 12 consecutive months ending August
31, 2006.
(8) If a threshold
amount computed under subsections (6) and (7) of this section is not a multiple
of $50, the amount shall be rounded to the next lower multiple of $50.
SECTION 64. The amendments to ORS 316.085 by section 63
of this 2007 Act apply to tax years beginning or after January 1, 2007.
SECTION 65. Section 2, chapter 649, Oregon Laws 1975, as
amended by section 3, chapter 422, Oregon Laws 1979, section 2, chapter 169,
Oregon Laws 1985, section 5, chapter 748, Oregon Laws 1995, and section 5,
chapter 67, Oregon Laws 2001, is amended to read:
Sec.
2. ORS 307.183 applies to tax years beginning on or after July 1,
1976[, but prior to July 1, 2012].
SECTION 66. Section 2, chapter 422, Oregon Laws 1979, as
amended by section 3, chapter 169, Oregon Laws 1985, section 6, chapter 748,
Oregon Laws 1995, and section 6, chapter 67, Oregon Laws 2001, is amended to
read:
Sec.
2. ORS 307.184 applies to tax years beginning on or after July 1,
1980[, but prior to July 1, 2012].
SECTION 67. Section 68 of this 2007 Act is added to and
made a part of ORS 118.005 to 118.840.
SECTION 68. (1) As used in this section, “natural
resource property” means real property, as defined in ORS 307.010, lawfully
qualified, at the decedent’s death, for designation as:
(a) Farm use, as defined
in ORS 308A.056, or as one or more farm use homesites, as defined in ORS
308A.250, related to that real property; or
(b) Forestland, as
defined in ORS 321.201, or as one or more forestland homesites, as defined in
ORS 308A.250, related to that real property, not to exceed 5,000 acres.
(2) For purposes of
computing the tax imposed under ORS 118.010, the gross estate of a decedent may
not include the value of:
(a) Natural resource
property, to the extent the value of natural resource property does not exceed
$7.5 million; or
(b) Property used in
commercial fishing operations and any property used in processing or marketing
of the product of those commercial fishing operations, to the extent the value
of the property described in this paragraph does not exceed $7.5 million.
(3) Subsection (2) of
this section applies only if the property that is excluded from the value of
the gross estate under subsection (2) of this section is transferred to:
(a) The spouse of the
decedent;
(b) A natural or adopted
child of the decedent;
(c) A natural or adopted
grandchild of the decedent;
(d) A natural or adopted
brother or sister of the decedent; or
(e) A natural or adopted
niece or nephew of the decedent.
(4)(a) For each calendar
year beginning on or after January 1, 2009, the Department of Revenue shall
recompute the maximum excluded value of the gross estate provided for in
subsection (2) of this section by the change in the cost of living, if any. The
computation shall be as follows:
(A) Divide the average
U.S. City Average Consumer Price Index for the 12 consecutive months ending
January 1 of the calendar year prior to the calculation by the average U.S.
City Average Consumer Price Index for the calendar year 2007.
(B) Multiply $7.5
million by the indexing factor determined as provided in subparagraph (A) of
this paragraph.
(b) As used in this
subsection, “U.S. City Average Consumer Price Index” means the U.S. City
Average Consumer Price Index for All Urban Consumers (All Items) as published
by the Bureau of Labor Statistics of the United States Department of Labor.
(c) If any change in the
maximum excluded value of the gross estate determined under paragraph (a) of
this subsection is not a multiple of $500, the change shall be rounded to the
nearest $500.
(5)(a) If property
initially excluded from the value of a gross estate as natural resource
property under this section is not then used as natural resource property for
at least five out of the eight calendar years following the decedent’s death or
is disposed of by the transferee other than by disposition to another family
member who is eligible for the exclusion allowed under this section, an
additional tax under ORS 118.005 to 118.840 shall be imposed.
(b) The additional tax
liability shall be an amount that is no greater than the amount of additional
taxes that would have been due had the property been included in the gross
estate, but at least the amount of such additional taxes multiplied by ((five
minus the number of years the property was used as natural resource property)
divided by five). The additional tax liability shall be apportioned to the
estate for any time period prior to transfer and apportioned to the transferee
for any time period thereafter.
(c) Prior to the
transfer of property treated as natural resource property under this section,
the executor or the decedent shall notify the transferee of the potential for
tax consequences to the transferee if the transferee fails to meet the
conditions of paragraph (a) of this subsection. The transferee’s written
acknowledgment of this notice shall be attached to the inheritance tax return.
(6) The Department of
Revenue shall adopt rules consistent with those adopted under section 2032A of
the Internal Revenue Code, as that section was amended and in effect on
December 31, 2006, to administer this section.
SECTION 69. Section 68 of this 2007 Act applies only to
decedents who die on or after January 1, 2007.
SECTION 70. (1) As used in this section and section 71
of this 2007 Act:
(a) “Assessor” means the
county assessor, or the Department of Revenue if under ORS 306.126 the
department is responsible for appraisal of the facility at which the qualified
machinery and equipment is located.
(b) “Egg processor”
means a person engaged in the business of freezing, canning, dehydrating,
concentrating, preserving, processing or repacking eggs for human consumption
in any procedure that occurs prior to the point of first sale by the processor.
(c) “Integrated
processing line” does not include forklifts, trucks or other rolling stock used
to transport material to or from a point of manufacture or assembly.
(d) “Qualified machinery
and equipment” means property, whether new or used, that is newly acquired by
an egg processor and placed into service prior to January 1 preceding the first
tax year for which an exemption under this section is sought, and that consists
of:
(A) Real property
machinery and equipment that is used by an egg processor in the primary
processing of eggs; or
(B) Personal property
machinery and equipment that is used in an integrated processing line for the
primary processing of eggs.
(2)(a) On or before
March 1 preceding the first tax year for which
property is to be exempt from taxation under this section, an egg processor
seeking an exemption under this section shall apply to the assessor for
exemption. The application shall be on a form prescribed by the Department of
Revenue and shall include any information required by the department, including
a schedule of the qualified machinery and equipment for which certification is
sought.
(b) Notwithstanding
paragraph (a) of this subsection, the assessor may approve an application that
is filed after March 1, and on or before December 31 of the assessment year, if
the statement is accompanied by a late filing fee of the greater of $200 or
one-tenth of one percent of the real market value of the property that is the
subject of the application.
(c) The assessor shall
review the application and, if the machinery and equipment that is the subject
of the application constitutes qualified machinery and equipment certified by
the State Department of Agriculture under section 71 of this 2007 Act, shall
approve the application and exempt the qualified machinery and equipment.
(d) If any of the
machinery and equipment that is the subject of the application does not
constitute qualified machinery and equipment certified by the State Department
of Agriculture under section 71 of this 2007 Act, the assessor shall exclude
the nonqualified machinery and equipment from the application.
(3) Qualified machinery
and equipment for which an application has been approved under subsection (2)
of this section shall be exempt for the tax year for which the application was
approved and for the next four succeeding tax years, if as of the assessment
date for each year the property constitutes qualified machinery and equipment.
(4) The duration of the
exemption under subsection (3) of this section may not be extended as the
result of the value of changes to qualified machinery and equipment that are
attributable to rehabilitation, reconditioning or ongoing maintenance or
repair.
SECTION 71. (1) At the request of an egg processor or
under the State Department of Agriculture’s own initiative, the department
shall certify qualified machinery and equipment as eligible for exemption under
section 70 of this 2007 Act.
(2) The method of
certification under this section shall be provided by rules adopted by the State
Department of Agriculture, after consultation with the Department of Revenue.
(3) A decision by the
State Department of Agriculture to deny certification of certain property may
be appealed to the Director of Agriculture as a contested case under ORS chapter
183.
SECTION 72. The Department of Revenue and the State
Department of Agriculture may adopt rules to implement the provisions of
sections 70 and 71 of this 2007 Act.
SECTION 73. The exemption provided in section 70 of
this 2007 Act applies only to the taxes of a taxing district the governing body
of which has adopted an ordinance or resolution authorizing the exemption under
section 70 of this 2007 Act.
SECTION 74. Sections 70 to 73 of this 2007 Act are
added to and made a part of ORS chapter 307.
SECTION 75. Section 70 of this 2007 Act applies to tax
years beginning on or after July 1, 2007, and before July 1, 2012.
SECTION 76. Section 77 of this 2007 Act is added to and
made a part of ORS chapter 285C.
SECTION 77. ORS 285C.500 to 285C.506 may be cited as
the
SECTION 78. ORS 285C.506 is amended to read:
285C.506. (1) Following
completion of the construction, reconstruction, modification, acquisition,
installation or lease of the facility, the hiring of employees to conduct
business operations at the facility and the commencement of operations at the
facility, a business firm that obtained preliminary certification under ORS
285C.503 may apply for annual certification under this section.
(2) The application
shall be filed with the Economic and Community Development Department on or
before 30 days after the end of the income or corporate excise tax year of the
business firm.
(3) The application
shall contain the following information:
(a) A description of the
business operations conducted at the facility;
(b) The date business
operations commenced at the facility;
(c) The number of
full-time, year-round employees employed by the business firm at the facility;
(d) A schedule of the
annual compensation paid to the employees; and
(e) Any other
information required by the department.
(4) An application filed
under this section must be accompanied by a fee in an amount prescribed by the
department by rule. The fee required by the department may not exceed $100.
(5) The department shall
review a business firm’s application and approve the application if:
(a) The business
operations of the firm at the facility commenced within 10 years before the end
of the tax year preceding the date of application for annual certification;
and
[(b) The facility and the business operations actually conducted at the
facility are reasonably similar to the proposed facility and proposed
operations described in the application for preliminary certification; and]
[(c)] (b) The business firm has
satisfied the employment and minimum compensation requirements described in ORS
285C.503 (5)(c) and (d).
(6) In the case of the
first application for annual certification filed by a business firm under this
section, the department may approve the application only if, in addition to the
requirements [under] of
subsection (5) of this section:
(a) Business operations
commenced at the facility within a reasonable period of time, as determined by
the department by rule, following the date of preliminary certification under
ORS 285C.503; [and]
(b) There has not been a
significant interruption in construction, reconstruction, modification or
installation activity at the location, as determined by the department by rule,
following the date of preliminary certification under ORS 285C.503[.]; and
(c) The facility and the
business operations actually conducted at the facility are reasonably similar
to the proposed facility and proposed operations described in the application
for preliminary certification.
(7) After the first
application for annual certification, the department may approve a subsequent
application or certification filed under this section only if:
(a) The business firm
meets the requirements of subsection (5) of this section; and
(b) The facility and the
business operations actually conducted at the facility retain similar
characteristics to the facility and the business operations actually conducted
at the facility during the period of prior certification. This paragraph does
not preclude an applicant from changing the location of the facility, the
ownership or organization of the business firm or other aspects of the facility
or business firm that are within the intent of ORS 285C.500 to 285C.506 if the
change is made in accordance with rules adopted by the department.
[(7)] (8) The department may consult
with the city or county in determining whether to approve or disapprove an
application under this section.
[(8)] (9) If the department approves an application, it shall
issue an annual certification to the business firm.
[(9)] (10) If the department disapproves an application, the
business firm or any owner of the business firm may not be allowed the
exemption described in ORS 316.778 or 317.391 for the tax year for which the annual
certification was sought or for any subsequent tax year.
[(10)] (11) The decision of the
department to disapprove an application under this section may be appealed in
the manner of a contested case under ORS chapter 183.
[(11)] (12) An annual certification may not be issued under
this section for a tax year that is more than nine consecutive tax years
following the first tax year an exemption is allowed under ORS 316.778 or
317.391 with respect to the facility.
[(12)] (13) The department must
approve or disapprove an application under this section within 30 days of the
date the application is filed.
SECTION 79. Section 3, chapter 595, Oregon Laws 2005, is
amended to read:
Sec.
3. Notwithstanding ORS 285C.500 (5), for purposes of preliminary
certifications issued under ORS 285C.503 on or after January 1, 2006, and
before January 1, 2011, and annual certifications issued under ORS 285C.506
that are associated with preliminary certifications issued under ORS 285C.503
on or after January 1, 2006, and before January 1, 2011:
(1) “Qualified location”
means any area that is:
(a) Within the urban
growth boundary of a city that has 15,000 or fewer residents or is land zoned
for industrial use; and
(b) Located in a county
that, during either of the two years preceding the date an application for
preliminary certification is filed under ORS 285C.503 and this section, had:
(A) A county
unemployment rate that was in the highest third of county unemployment rates in
this state; or
(B) A county per capita
personal income that was in the lowest third of county per capita personal
incomes in this state.
(2) The minimum annual
compensation requirements of ORS 285C.503 (5)(d) do
not apply.
(3) In lieu of the
requirements of ORS 285C.506 (5), the Economic and Community Development
Department shall approve an application for annual certification if the
business firm satisfies the requirements of ORS 285C.506 (5)(a)
and [(b)] (6)(c) and the
business firm satisfies the employment requirements of ORS 285C.503 (5)(c).
SECTION 80. The amendments to ORS 285C.506 and section
3, chapter 595, Oregon Laws 2005, by sections 78 and 79 of this 2007 Act apply
to tax years beginning on or after January 1, 2007.
SECTION 81. Section 82 of this 2007 Act is added to and
made a part of ORS chapter 316.
SECTION 82. (1) As used in this section:
(a) “Household” has the
meaning given that term in ORS 310.630.
(b) “Manufactured
dwelling” has the meaning given that term in ORS 446.003.
(c) “Manufactured
dwelling park” means a place within this state where four or more manufactured
dwellings are located, the primary purpose of which is to rent space or keep
space for rent to any person for a charge or fee.
(d) “Rental agreement”
means a contract under which an individual rents space in a manufactured
dwelling park for siting a manufactured dwelling.
(2) A credit of $5,000
against the taxes otherwise due under this chapter is allowed to an individual
who:
(a) Rents space in a
manufactured dwelling park for a manufactured dwelling that is owned and
occupied by the individual as the individual’s principal residence on the date
that the landlord delivers notice that the park, or a portion of the park, is
being closed and the rental agreement for the space is being terminated because
of the exercise of eminent domain, by order of a federal, state or local agency
or by the landlord; and
(b)
Ends tenancy at the manufactured dwelling park site in response to the
delivered notice described in paragraph (a) of this subsection.
(3) For purposes of
subsection (2) of this section:
(a) Tenancy by the
individual at the manufactured dwelling park site ends on the last day that a
member of the individual’s household occupies the manufactured dwelling at the
manufactured dwelling park site; and
(b) Tenancy by the
individual at the manufactured dwelling park site does not end if the
manufactured dwelling park is converted to a subdivision under ORS 92.830 to
92.845 and the individual buys a space or lot in the subdivision or sells the
manufactured dwelling to a person who buys a space or lot in the subdivision.
(4) Notwithstanding
subsection (2) of this section, if the manufactured dwelling park, or a portion
of the park, is being closed and the rental agreement of the individual is
being terminated because of the exercise of eminent domain, the credit amount
allowed to the individual is the amount described in subsection (2) of this
section, reduced by any amount that was paid to the individual as compensation
for the exercise of eminent domain.
(5) An individual may
not claim more than one credit under this section for tenancies ended during
the tax year.
(6) If, for the year in
which the individual ends the tenancy at the manufactured dwelling park, the
amount of the credit allowed by this section, when added to the sum of the
amounts allowable as payment of tax under ORS 316.187 and 316.583 plus other
tax prepayment amounts and other refundable credit amounts, exceeds the taxes
imposed by this chapter or ORS chapter 314 for the tax year, reduced by any
nonrefundable credits allowable for purposes of this chapter for the tax year,
the amount of the excess shall be refunded to the individual as provided in ORS
316.502.
(7) If more than one
individual in a household qualifies under this section to claim the tax credit,
the qualifying individuals may each claim a share of the available credit that
is in proportion to their respective gross incomes for the tax year.
SECTION 83. Section 82 of this 2007 Act applies to
individuals whose household ends tenancy at a manufactured dwelling park during
a tax year that begins on or after January 1, 2007, and before January 1, 2013.
SECTION 84. ORS 316.502 is amended to read:
316.502. (1) The net
revenue from the tax imposed by this chapter, after deducting refunds, shall be
paid over to the State Treasurer and held in the General Fund as miscellaneous
receipts available generally to meet any expense or obligation of the State of
Oregon lawfully incurred.
(2) A working balance of
unreceipted revenue from the tax imposed by this chapter may be retained for
the payment of refunds, but such working balance shall not at the close of any
fiscal year exceed the sum of $1 million.
(3) Moneys are
continuously appropriated to the Department of Revenue to make:
(a) The refunds
authorized under subsection (2) of this section;
(b) The refund payments
in excess of tax liability authorized under ORS 315.262 and 315.266 and
section 82 of this 2007 Act; and
(c) The refund payments
in excess of tax liability authorized under ORS 316.153 (4).
SECTION 85. ORS 316.502, as amended by section 4a, chapter
826, Oregon Laws 2005, is amended to read:
316.502. (1) The net
revenue from the tax imposed by this chapter, after deducting refunds, shall be
paid over to the State Treasurer and held in the General Fund as miscellaneous
receipts available generally to meet any expense or obligation of the State of
Oregon lawfully incurred.
(2) A working balance of
unreceipted revenue from the tax imposed by this chapter may be retained for the
payment of refunds, but such working balance shall not at the close of any
fiscal year exceed the sum of $1 million.
(3) Moneys are
continuously appropriated to the Department of Revenue to make:
(a) The refunds
authorized under subsection (2) of this section; and
(b) The refund payments
in excess of tax liability authorized under ORS 315.262 and 315.266 and
section 82 of this 2007 Act.
SECTION 86.
ORS 316.502, as amended by section 4a, chapter 826, Oregon Laws 2005, and
section 60, chapter 832, Oregon Laws 2005, is amended to read:
316.502. (1) The net
revenue from the tax imposed by this chapter, after deducting refunds, shall be
paid over to the State Treasurer and held in the General Fund as miscellaneous
receipts available generally to meet any expense or obligation of the State of
Oregon lawfully incurred.
(2) A working balance of
unreceipted revenue from the tax imposed by this chapter may be retained for
the payment of refunds, but such working balance shall not at the close of any
fiscal year exceed the sum of $1 million.
(3) Moneys are
continuously appropriated to the Department of Revenue to make:
(a) The refunds
authorized under subsection (2) of this section; and
(b) The refund payments
in excess of tax liability authorized under ORS 315.262 and section 82 of
this 2007 Act.
SECTION 87. ORS 316.502, as amended by section 4a, chapter
826, Oregon Laws 2005, section 60, chapter 832, Oregon Laws 2005, and section
86 of this 2007 Act, is amended to read:
316.502. (1) The net
revenue from the tax imposed by this chapter, after deducting refunds, shall be
paid over to the State Treasurer and held in the General Fund as miscellaneous
receipts available generally to meet any expense or obligation of the State of
Oregon lawfully incurred.
(2) A working balance of
unreceipted revenue from the tax imposed by this chapter may be retained for
the payment of refunds, but such working balance shall not at the close of any
fiscal year exceed the sum of $1 million.
(3) Moneys are
continuously appropriated to the Department of Revenue to make:
(a) The refunds
authorized under subsection (2) of this section; and
(b) The refund payments
in excess of tax liability authorized under ORS 315.262 [and section 82 of this 2007 Act].
SECTION 88. (1) The amendments to ORS 316.502 by
sections 84 to 86 of this 2007 Act apply to refunds for credits claimed for tax
years beginning on or after January 1, 2007, and before January 1, 2013.
(2) The amendments to
ORS 316.502 by section 87 of this 2007 Act become operative January 2, 2018.
SECTION 89. ORS 316.153 is repealed.
SECTION 90. The repeal of ORS 316.153 by section 89 of
this 2007 Act applies to tax years beginning on or after January 1, 2007.
SECTION 91. ORS 90.635 is amended to read:
90.635. (1) If a facility
is closed or a portion of a facility is closed, resulting in the termination of
the rental agreement between the landlord of the facility and a tenant renting
space for a manufactured dwelling, whether because of the exercise of eminent
domain, by order of the state or local agencies, or as provided under ORS
90.630 (5), the landlord shall provide notice to the tenant of the tax credit
provided under [ORS 316.153]
section 82 of this 2007 Act. The notice shall state the eligibility
requirements for the credit, information on how to apply for the credit and any
other information required by the Office of Manufactured Dwelling Park
Community Relations by rule.
(2) The landlord shall
send the notice described under subsection (1) of this section to a tenant
affected by a facility closure on or before:
(a) The date notice of
rental termination must be given to the tenant under ORS 90.630 (5), if
applicable; or
(b) In the event of
facility closure by exercise of eminent domain or by order of a state or local
agency, within 15 days of the date the landlord received notice of the closure.
(3) The landlord shall
forward to the office a list of the names and addresses of tenants to whom
notice under this section has been sent.
(4) The office may adopt
rules to implement this section, including rules specifying the form and
content of the notice described under this section.
SECTION 92. This 2007 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fourth Legislative
Assembly adjourns sine die.
Approved by the Governor July 31, 2007
Filed in the office of Secretary of State July 31, 2007
Effective date September 27, 2007
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