74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 563
House Bill 2212
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for State Department of Energy)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Expands residential alternative energy device tax credit to
permit increased capacity wind electric systems and fuel cell
systems to qualify for credit. Makes conforming changes.
Applies to alternative energy devices constructed or installed
on or after January 1, 2007.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to renewable energy; creating new provisions; amending
ORS 316.116, 469.160, 469.165, 469.170, 469.172, 469.176 and
469.180 and section 5a, chapter 832, Oregon Laws 2005; and
prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. 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 2. 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 - }
{ + 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 { + category one
alternative energy devices 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 - } { + a 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 alternative fuel device, the credit allowed under
this section is 25 percent of the cost of the alternative fuel
device but the total credit shall not exceed $750 if the device
is placed in service on or after January 1, 1998.
(e)(A) For { + a 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 a 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 amount of the credit
allowed in any one tax year may not exceed the tax liability of
the taxpayer or $1,500, whichever is less. Unused credit amounts
may be carried forward as provided in subsection (7) of this
section, but may not be carried forward to a tax year that is
more than five tax years following the first tax year for which
any credit was allowed with respect to the { - solar electric
system - } { + 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 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 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 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 3. ORS 469.165 is amended to read:
469.165. (1) For the purposes of carrying out ORS 469.160 to
469.180, the State Department of Energy may adopt rules
prescribing minimum performance criteria for alternative energy
devices for dwellings { - and solar electric systems - } .
(2) The department, in adopting rules under this section for
solar heating and cooling systems, shall take into consideration
applicable standards of federal performance criteria prescribed
pursuant to the provisions of section 5506, title 42, United
States Code (Solar Heating and Cooling Act of 1974).
(3) The Director of the State Department of Energy shall adopt
rules governing the determination of eligibility, verification
and certification of an alternative fuel device for purposes of
the tax credits granted under ORS 316.116 and 317.115, including
but not limited to rules that further define an alternative fuel
vehicle, related equipment or fueling station necessary to
operate an alternative fuel vehicle, that govern the computation
of costs eligible for credit and that require equitable
allocation of the tax credit benefits between the lessor and the
lessee of an alternative fuel vehicle as a condition of tax
credit eligibility.
SECTION 4. ORS 469.170 is amended to read:
469.170. (1) Any person may claim a tax credit under ORS
316.116 (or ORS 317.115, if the person is a corporation) if the
person:
(a) Meets the requirements of ORS 316.116 (or ORS 317.115, if
applicable);
(b) Meets the requirements of ORS 469.160 to 469.180; and
(c) Pays, subject to subsection (9) of this section, all or a
portion of the costs of an alternative energy device { - or a
solar electric system - } .
(2) A credit under ORS 317.115 may be claimed only if the
alternative energy device is a fueling station necessary to
operate an alternative fuel vehicle.
(3)(a) In order to be eligible for a tax credit under ORS
316.116 or 317.115, a person claiming a tax credit for
construction or installation of an alternative energy device
(including a fueling station) { - or a solar electric
system - } shall have the device { - or system - } certified
by the State Department of Energy or constructed or installed by
a contractor certified by the department under subsection (5) of
this section. This paragraph does not apply to an alternative
fuel vehicle or to related equipment.
(b) Certification of an alternative fuel vehicle or related
equipment shall be accomplished under rules that shall be adopted
by the Director of the State Department of Energy.
(4) Verification of the purchase, construction or installation
of an alternative energy device { - or solar electric
system - } shall be made in writing on a form provided by the
Department of Revenue and, if applicable, shall contain:
(a) The location of the alternative energy device { - or
solar electric system - } ;
(b) A description of the type of device { - or system - } ;
(c) If the device { - or system - } was constructed or
installed by a contractor, evidence that the contractor has any
license, bond, insurance and permit required to sell and
construct or install the alternative energy device { - or solar
electric system - } ;
(d) If the device { - or system - } was constructed or
installed by a contractor, a statement signed by the contractor
that the applicant has received:
(A) A statement of the reasonably expected energy savings of
the device { - or system - } ;
(B) A copy of consumer information published by the State
Department of Energy;
(C) An operating manual for the alternative energy device
{ - or solar electric system - } ; and
(D) A copy of the contractor's certification certificate or
alternative energy device system certificate for the alternative
energy device { - or solar electric system - } , as
appropriate;
(e) If the device { - or system - } was not constructed or
installed by a contractor, evidence that:
(A) The State Department of Energy has issued an alternative
energy device system certificate for the alternative energy
device
{ - or solar electric system - } ; and
(B) The taxpayer has obtained all building permits required for
construction or installation of the device { - or system - } ;
(f) A statement, signed by both the taxpayer claiming the
credit and the contractor if the device { - or system - } was
constructed or installed by a contractor, that the construction
or installation meets all the requirements of ORS 469.160 to
469.180 or, if the device is a fueling station and the taxpayer
is the contractor, a statement signed by the contractor that the
construction or installation meets all of the requirements of ORS
469.160 to 469.180;
(g) The date the alternative energy device { - or solar
electric system - } was purchased;
(h) The date the alternative energy device { - or solar
electric system - } was placed in service; and
(i) Any other information that the Director of the State
Department of Energy or the Department of Revenue determines is
necessary.
(5)(a) When the State Department of Energy finds that an
alternative energy device { - or solar electric system - } can
meet the standards adopted under ORS 469.165, the Director of the
State Department of Energy may issue a contractor system
certification to the person selling and constructing or
installing the alternative energy device { - or solar electric
system - } .
(b) Any person who sells or installs more than 12 alternative
energy devices { - or solar electric systems - } in one year
shall apply for a contractor system certification. An application
for a contractor system certification shall be made in writing on
a form provided by the State Department of Energy and shall
contain:
(A) A statement that the contractor has any license, bonding,
insurance and permit that is required for the sale and
construction or installation of the alternative energy device
{ - or solar electric system - } ;
(B) A specific description of the alternative energy device
{ - or solar electric system - } , including, but not limited
to, the material, equipment and mechanism used in the device
{ - or system - } , operating procedure, sizing and siting
method and construction or installation procedure;
(C) The addresses of three installations of the device { - or
system - } that are available for inspection by the State
Department of Energy;
(D) The range of installed costs to purchasers of the device
{ - or system - } ;
(E) Any important construction, installation or operating
instructions; and
(F) Any other information that the State Department of Energy
determines is necessary.
(c) A new application for contractor system approval shall be
filed when there is a change in the information supplied under
paragraph (b) of this subsection.
(d) The State Department of Energy may issue contractor system
certificates to each contractor who on October 3, 1989, has a
valid dealer system certification, which shall authorize the sale
and installation of the same domestic water heating alternative
energy devices authorized by the dealer certification.
(e) If the State Department of Energy finds that an alternative
energy device { - or solar electric system - } can meet the
standards adopted under ORS 469.165, the Director of the State
Department of Energy may issue an alternative energy device
system certificate to the taxpayer constructing or installing or
having an alternative energy device { - or solar electric
system - } constructed or installed.
(f) An application for an alternative energy device system
certificate shall be made in writing on a form provided by the
State Department of Energy and shall contain:
(A) A specific description of the alternative energy device
{ - or solar electric system - } , including, but not limited
to, the material, equipment and mechanism used in the device
{ - or system - } , operating procedure, sizing, siting method
and construction or installation procedure;
(B) The constructed or installed cost of the device { - or
system - } ; and
(C) A statement that the taxpayer has all permits required for
construction or installation of the device { - or system - } .
(6) To claim the tax credit, the verification form described in
subsection (4) of this section shall be submitted with the
taxpayer's tax return for the year the alternative energy device
{ - or solar electric system - } is placed in service or the
immediately succeeding tax year. A copy of the contractor's
certification certificate, alternative energy device system
certificate or alternative fuel vehicle or related equipment
certificate also shall be submitted.
(7) The verification form and contractor's certificate,
alternative energy device system certificate or alternative fuel
vehicle or related equipment certificate described under this
section shall be effective for purposes of tax relief allowed
under ORS 316.116 or 317.115.
(8) The verification form and contractor's certificate
described under this section may be transferred to the first
purchaser of a dwelling or, in the case of construction or
installation of a fueling station in an existing dwelling, the
current owner, who intends to use or is using the dwelling as a
principal or secondary residence.
(9) Any person that pays the present value of the tax credit
for an alternative energy device { - or solar electric
system - } provided under ORS 316.116 or 317.115 and 469.160 to
469.180 to the person who constructs or installs the alternative
energy device { - or solar electric system - } shall be
entitled to claim the credit in the manner and subject to rules
adopted by the Department of Revenue to carry out the purposes of
this subsection. The State Department of Energy may establish by
rule uniform discount rates to be used in calculating the present
value of a tax credit under this subsection.
SECTION 5. ORS 469.172 is amended to read:
469.172. The following devices are not eligible for the 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 6. ORS 469.176 is amended to read:
469.176. (1) Except for alternative fuel vehicles or related
equipment, in order to carry out ORS 469.160 to 469.180, the
State Department of Energy shall develop performance assumptions
and prescriptive measures to determine the eligibility and tax
credit amount for alternative energy devices { - and solar
electric systems - } constructed or installed in a dwelling.
(2) The department shall use the performance assumptions and
prescriptive measures to develop information for the Department
of Revenue to use to allow taxpayers to determine their
eligibility and tax credit amount. The State Department of Energy
may review this information on an annual basis to take into
consideration new technology and performance assumption accuracy.
(3) For the purpose of determining the first year energy yield
of an alternative energy device, the department shall use the
following assumptions and test standards:
(a) Solar Rating and Certification Corporation standard SRCC
100, 200, American Society of Heating, Refrigerating and
Air-Conditioning Engineers 93-77, or the American Refrigeration
Institute standard 325-85 test at 50 degrees entering water
temperature, as appropriate. The testing requirements under this
paragraph shall not apply to an owner-built alternative energy
device.
(b) For an alternative energy device used as a source for
domestic water heating energy, a hot water use of 75 gallons per
day at 120 degrees Fahrenheit. The load of 75 gallons per day at
120 degrees Fahrenheit shall be achieved by including
conservation measures in the construction or installation of the
alternative energy device.
(c) For an alternative energy device used as a source for space
heating or cooling, the heating or cooling energy load as
determined by a heat loss or gain calculation performed in
accordance with the methods established by the American Society
of Heating, Refrigerating and Air-Conditioning Engineers. Except
for an owner-built or site-built system, an alternative energy
device used as a source for domestic hot water heating must meet
the SRCC OG 300 systems test or comply with comparable
requirements as determined by the department.
(d) For an alternative energy device used as a source for
electrical energy, the first year energy yield shall be based
upon the electrical energy load of the dwelling as determined
according to the procedure established by the department.
(e) For an alternative energy device used as a source for
swimming pool, spa or hot tub heating, the first year energy
yield shall be based on the heating load of the swimming pool,
spa or hot tub as determined according to the procedure
established by the department.
SECTION 7. ORS 469.180 is amended to read:
469.180. (1) Upon the Department of Revenue's own motion, or
upon request of the State Department of Energy, the Department of
Revenue may initiate proceedings for the forfeiture of a tax
credit allowed under ORS 316.116 or 317.115 if:
(a) The verification was fraudulent because of a
misrepresentation by the taxpayer or investor owned utility;
(b) The verification was fraudulent because of a
misrepresentation by the contractor;
(c) In the case of { - a solar electric system or - } an
alternative energy device other than an alternative fuel vehicle
or related equipment, the { - solar electric system or - }
alternative energy device has not been constructed, installed or
operated in substantial compliance with the requirements of ORS
469.160 to 469.180; or
(d) The taxpayer or investor owned utility failed to consent to
an inspection of the constructed or installed alternative energy
device { - or solar electric system - } by the State
Department of Energy after a reasonable, written request for such
an inspection by the State Department of Energy. This paragraph
does not apply to an alternative fuel vehicle or to related
equipment.
(2) Pursuant to the procedures for a contested case under ORS
chapter 183, the Director of the State Department of Energy may
order the revocation of a contractor certificate issued under ORS
469.170 if the director finds that:
(a) The contractor certificate was obtained by fraud or
misrepresentation by the contractor certificate holder;
(b) The contractor's performance for the alternative energy
device { - or solar electric system - } for which the
contractor is issued a certificate under ORS 469.170 does not
meet industry standards; or
(c) The contractor has misrepresented to the customer either
the tax credit program or the nature or quality of the
alternative energy device { - or solar electric system - } .
(3) If the tax credit allowed under ORS 316.116 or 317.115 for
the purchase, construction or installation of an alternative
energy device { - or solar electric system - } is ordered
forfeited due to an action of the taxpayer or investor owned
utility under subsection (1)(a), (c) or (d) of this section, all
prior tax relief provided to the taxpayer or investor owned
utility shall be forfeited and the Department of Revenue shall
proceed to collect those taxes not paid by the taxpayer or
utility as a result of the tax credit relief under ORS 316.116 or
317.115.
(4) If the tax credit for the construction or installation of
an alternative energy device { - or solar electric system - }
is ordered forfeited due to an action of the contractor under
subsection (1)(b) of this section, the Department of Revenue
shall proceed to collect, from the contractor, an amount
equivalent to those taxes not paid by the taxpayer or investor
owned utility as a result of the tax credit relief under ORS
316.116 or 317.115. As long as the forfeiture is due to an action
of the contractor and not to an action of the taxpayer or
utility, the assessment of such taxes shall be levied on the
contractor and not on the taxpayer or utility. Notwithstanding
ORS 314.835, the Department of Revenue may disclose information
from income tax returns or reports to the extent such disclosure
is necessary to collect amounts from contractors under this
subsection.
(5) In order to obtain information necessary to verify
eligibility and amount of the tax credit, the State Department of
Energy or its representative may inspect an alternative energy
device { - or solar electric system - } that has been
purchased, constructed or installed. The inspection shall be made
only with the consent of the owner of the dwelling. Failure to
consent to the inspection is grounds for the forfeiture of any
tax credit relief under ORS 316.116 or 317.115. The Department of
Revenue shall proceed to collect any taxes due according to
subsection (4) of this section. For electrical generating
alternative energy devices { - or solar electric systems - } ,
the State Department of Energy may obtain energy consumption
records for the dwelling the device { - or system - } serves,
for a 12-month period, in order to verify eligibility and amount
of the tax credit.
SECTION 8. 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 9. { + 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 1 to 8 of this 2007
Act apply to alternative energy devices constructed or installed
on or after January 1, 2007. + }
SECTION 10. { + 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. + }
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