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 693
 
                           A-Engrossed
 
                         House Bill 2363
                  Ordered by the House June 25
            Including House Amendments dated June 25
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of House Interim Committee on
  Judiciary for Oregon State Bar Adoption Subcommittee of Family
  Law Section)
 
 
                             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.
 
  Reinstates income tax credit for qualified adoption expenses
for tax years beginning on or after January 1, 2007 { + , and
before January 1, 2015. Limits credit to taxpayer with no more
than $60,000 in federal adjusted gross income + }.
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
Relating to tax credits for adoption expenses; amending ORS
  315.274 and section 3, chapter 1088, Oregon Laws 1999; and
  prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. Section 3, chapter 1088, Oregon Laws 1999, is
amended to read:
   { +  Sec. 3. + }   { - Section 2 of this 1999 Act - }
 { + ORS 315.274 + } applies to tax years beginning on or after
January 1, 2000, and before January 1, 2006 { + , and to tax
years beginning on or after January 1, 2007, and before January
1, 2015 + }.
  SECTION 2. ORS 315.274 is amended to read:
  315.274. (1) For purposes of this section, 'qualified adoption
expenses' has the meaning given that term in section 23 of the
Internal Revenue Code.
  (2) A taxpayer shall be allowed a credit against the taxes
otherwise due under ORS chapter 316 in an amount determined under
subsection (3) of this section for qualified adoption expenses
paid or incurred by the taxpayer during the tax year { + , if the
taxpayer's federal adjusted gross income does not exceed $60,000
for the tax year + }.
  (3) The amount of the credit allowed under this section shall
be equal to the lesser of:
  (a) The qualified adoption expenses paid or incurred by the
taxpayer during the tax year less the credit allowed to the
taxpayer under section 23 of the Internal Revenue Code;
  (b) $1,500; or
 
  (c) The credit allowed to the taxpayer for qualified adoption
expenses under section 23 of the Internal Revenue Code.
  (4) In the case of a credit allowed under this section:
  (a) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
  (b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
  (c) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed under this section shall be prorated or computed
in a manner consistent with ORS 314.085.
  (5) 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
such 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, but may not be carried forward
for any tax year thereafter.
  SECTION 3.  { + 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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