Chapter 855
AN ACT
HB 2172
Relating to diesel engines; creating new
provisions; amending ORS 327.033 and sections 28, 29, 31 and 32, chapter 618,
Oregon Laws 2003; appropriating money; and prescribing an effective date.
Be It Enacted by the People of
the State of
SECTION 1. Section 2 of this 2007 Act is added to and
made a part of ORS chapter 468A.
SECTION 2. The Environmental Quality Commission shall
establish a goal to reduce excess lifetime risk of cancer due to exposure to
diesel engine emissions to no more than one case per million individuals by
2017. In setting the goal, the commission shall include a target to
substantially reduce the risk to school children from diesel engine emissions
produced by
SECTION 3. ORS 327.033 is amended to read:
327.033. (1) Approved
transportation costs shall be estimated for the year of distribution.
(2) In determining
approved transportation costs, the State Board of Education:
(a) Shall include depreciation of original cost
to the school district of district-owned buses, not in excess of 10
percent per year;
(b) May not deduct any
moneys received by a school district to repower or retrofit, as defined in
section 6 of this 2007 Act, or to replace school buses for the purpose of
reducing or eliminating diesel engine emissions; and
(c) May not include
transportation costs paid with moneys received by the school district from the
Clean Diesel Engine Fund under section 10 of this 2007 Act.
(3) School
districts [are required to] shall
account separately for those funds received from the State School Fund attributable
to the costs included under subsection (2) of this section, and expenditure of
those funds shall be limited to the acquisition of new buses or transportation
equipment.
SECTION 4. The amendments to ORS 327.033 by section 3
of this 2007 Act apply to
SECTION 5. Sections 6 to 10 of this 2007 Act are added
to and made a part of ORS chapter 468A.
SECTION 6. As used in sections 6 to 16 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 6a. Section 6 of this 2007 Act is amended to read:
Sec.
6. As used in sections 6 to [16]
10 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 6b. The amendments to section 6 of this 2007
Act by section 6a of this 2007 Act become operative on January 2, 2018.
SECTION 7. (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 12 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 7a. Section 7 of this 2007 Act is amended to read:
Sec.
7. (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 12 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 7b. The amendments to section 7 of this 2007
Act by section 7a of this 2007 Act become operative on January 2, 2018.
SECTION 8. (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 12 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 grant, loan or tax credit under section 10 or 12
of this 2007 Act has been awarded or allowed, unless the repower or retrofit
will reduce emissions further than the repower or retrofit funded by the grant,
loan or tax credit.
SECTION 8a. Section 8 of this 2007 Act is amended to read:
Sec.
8. (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 12 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 grant[,] or loan [or tax credit] under section 10 [or 12] of this 2007 Act has been awarded or allowed, unless the
repower or retrofit will reduce emissions further than the repower or retrofit
funded by the grant[,] or loan
[or tax credit].
SECTION 8b. The amendments to section 8 of this 2007
Act by section 8a of this 2007 Act become operative on January 2, 2018.
SECTION 9. (1) The Clean Diesel Engine Fund is
established in the State Treasury separate and distinct from the General Fund.
Interest earned by the Clean Diesel Engine Fund shall be credited to the fund.
The moneys in the fund are continuously appropriated to the Department of
Environmental Quality to be used for the purposes described in section 10 of
this 2007 Act.
(2) The Clean Diesel
Engine Fund consists of:
(a) Funds appropriated
by the Legislative Assembly;
(b) Grants provided by
the federal government pursuant to the federal Clean Air Act, 42 U.S.C. 7401 et
seq., or other federal laws; and
(c) Any other revenues
derived from gifts or grants given to the state for the purpose of providing
financial assistance to owners or operators of diesel engines for the purpose
of repowering, retrofitting or scrapping diesel engines to reduce diesel engine
emissions.
SECTION 10. (1) The Department of Environmental Quality
shall use the moneys in the Clean Diesel Engine Fund to award:
(a) Grants and loans to
the owners and operators of Oregon diesel engines for up to 100 percent of the
certified costs of qualifying retrofits as described in sections 7 and 8 of
this 2007 Act;
(b) Grants and loans to
the owners and operators of nonroad Oregon diesel engines for up to 25 percent
of the certified costs of qualifying repowers as described in sections 7 and 8
of this 2007 Act; and
(c) Grants to the owners
of
(2) In determining the
amount of a grant or loan under this section, the department must 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, other grants or loans, or any other
public financial assistance.
(3) The department may
certify third parties to perform qualifying repowers and retrofits and may
contract with third parties to perform such services for the certified costs of
qualifying repowers and retrofits. The department may also contract with
institutions of higher education or other public bodies as defined by ORS
174.109 to train and certify third parties to perform qualifying repowers and
retrofits.
(4) The department may
not award a grant to scrap an Oregon diesel truck engine under subsection (1)(c) of this section unless the engine was manufactured
prior to 1994 and the engine is in operating condition at the time of the grant
application or, if repairs are needed, the owner demonstrates to the department’s
satisfaction that the engine can be repaired to an operating condition for less
than its commercial scrap value. The Environmental Quality Commission shall
adopt rules for a maximum grant awarded under subsection (1)(c)
of this section for an engine in a heavy-duty truck and for an engine in a
medium-duty truck. A grant awarded under subsection (1)(c)
of this section may not be combined with any other tax credits, grants or
loans, or any other public financial assistance, to scrap an
(5) The department may
use the moneys in the Clean Diesel Engine Fund to pay expenses of the
department in administering the program described in this section.
(6) The commission shall
adopt rules to implement this section and section 9 of this 2007 Act, including
but not limited to establishing preferences for grant and loan awards based
upon percentage of engine use in Oregon, whether a grant or loan applicant will
provide matching funds, whether scrapping, repowering or retrofitting an engine
will benefit sensitive populations or areas with elevated concentrations of
diesel particulate matter, or such other criteria as the commission may
establish. The rules adopted by the commission shall reserve a portion of the
financial assistance available each year for applicants that own or operate a
small number of
(7) The department may
perform activities necessary to ensure that recipients of grants and loans from
the Clean Diesel Engine Fund comply with applicable requirements. If the
department determines that a recipient has not complied with applicable
requirements, it may order the recipient to refund all grant or loan moneys and
may impose penalties pursuant to ORS 468.140.
SECTION 11. The rules adopted by the Environmental
Quality Commission pursuant to section 10 (6) of this 2007 Act, beginning on
the effective date of this 2007 Act and ending on June 30, 2010, shall reserve
75 percent of the funds available for grants and loans under section 10 of this
2007 Act for Oregon diesel engines that:
(1) Will be used in
Oregon for at least 75 percent of the total number of miles that the vehicle is
driven during the three years following the repowering or retrofitting of the
engine; or
(2) Will be used in
SECTION 12. (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 8 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 16 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 16 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 13. (1) A person that has obtained a tax credit
cost certification from the Department of Environmental Quality under section
16 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 12 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 12
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 12 of this 2007
Act.
SECTION 14. Sections 12 and 13 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 15. (1) The Environmental Quality Commission
shall adopt rules to implement this section and sections 12, 13 and 16 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 12
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 16 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 16. (1) A person seeking a tax credit under
section 12 of this 2007 Act or a person seeking to transfer a tax credit cost
certification under section 13 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 12 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 15 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 12 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 12 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 16a. Sections 12 to 16 of this 2007 Act are
repealed on January 2, 2018.
SECTION 17. 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 18. 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 19. 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 20. 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 21. The amendments to sections 28, 29, 31 and
32, chapter 618, Oregon Laws 2003, by sections 17 to 20 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 22. (1) Sections 12 and 13 of this 2007 Act and
section 28, chapter 618,
(2) Sections 15 and 16
of this 2007 Act and section 29, chapter 618,
SECTION 23. 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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