75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
HA to HB 2078
 
LC 1944/HB 2078-3
 
                       HOUSE AMENDMENTS TO
                         HOUSE BILL 2078
 
                     By COMMITTEE ON REVENUE
 
                             June 17
 
  On page 1 of the printed bill, line 2, after 'provisions; '
delete the rest of the line and line 3 and insert 'and amending
ORS 238A.005, 238A.125, 238A.150, 238A.170, 238A.230, 238A.370,
238A.400, 238A.410, 238A.415, 238A.430, 305.230, 305.494,
305.690, 307.130, 307.147, 308A.450, 310.140, 310.630, 310.800,
311.689, 314.011, 315.004, 315.141, 315.144, 315.262, 315.354,
316.012, 316.013, 316.116, 316.752, 317.010, 317.018, 317.097,
317.115, 458.670 and 657.010 and section 9, chapter ___, Oregon
Laws 2009 (Enrolled House Bill 2649); repealing section 5,
chapter ___, Oregon Laws 2009 (Enrolled House Bill 2649).'.
  Delete lines 5 through 30 and delete page 2 and insert:
  '  { +  SECTION 1. + } ORS 238A.005, as amended by section 1,
chapter 5, Oregon Laws 2009 (Enrolled House Bill 2157), is
amended to read:
  ' 238A.005. For the purposes of this chapter:
  ' (1) 'Active member' means a member of the pension program or
the individual account program of the Oregon Public Service
Retirement Plan who is actively employed in a qualifying
position.
  ' (2) 'Actuarial equivalent' means a payment or series of
payments having the same value as the payment or series of
payments replaced, computed on the basis of interest rate and
mortality assumptions adopted by the board.
  ' (3) 'Board' means the Public Employees Retirement Board.
  ' (4) 'Eligible employee' means a person who performs services
for a participating public employer, including elected officials
other than judges. 'Eligible employee' does not include:
  ' (a) Persons engaged as independent contractors;
  ' (b) Aliens working under a training or educational visa;
  ' (c) Persons, other than workers in the Industries for the
Blind Program under ORS 346.190, provided sheltered employment or
make-work by a public employer;
  ' (d) Persons categorized by a participating public employer as
student employees;
  ' (e) Any person who is an inmate of a state institution;
  ' (f) Employees of foreign trade offices of the Economic and
Community Development Department who live and perform services in
foreign countries under the provisions of ORS 285A.075 (1)(g);
  ' (g) An employee actively participating in an alternative
retirement program established under ORS 353.250 or an optional
retirement plan established under ORS 341.551;
  ' (h) Employees of the Oregon University System who are
actively participating in an optional retirement plan offered
under ORS 243.800;
  ' (i) Any employee who belongs to a class of employees that was
not eligible on August 28, 2003, for membership in the system
under the provisions of ORS chapter 238 or other law;
  ' (j) Any person who belongs to a class of employees who are
not eligible to become members of the Oregon Public Service
Retirement Plan under the provisions of ORS 238A.070 (2);
  ' (k) Any person who is retired under ORS 238A.100 to 238A.245
or ORS chapter 238 and who continues to receive retirement
benefits while employed; and
  ' (L) Judges.
  ' (5) 'Firefighter' means:
  ' (a) A person employed by a local government, as defined in
ORS 174.116, whose primary job duties include the fighting of
fires;
  ' (b) The State Fire Marshal, the chief deputy state fire
marshal and deputy state fire marshals; and
  ' (c) An employee of the State Forestry Department who is
certified by the State Forester as a professional wildland
firefighter and whose primary duties include the abatement of
uncontrolled fires as described in ORS 477.064.
  ' (6) 'Fund' means the Public Employees Retirement Fund.
  ' (7)(a) 'Hour of service' means:
  ' (A) An hour for which an eligible employee is directly or
indirectly paid or entitled to payment by a participating public
employer for performance of duties in a qualifying position; and
  ' (B) An hour of vacation, holiday, illness, incapacity, jury
duty, military duty or authorized leave during which an employee
does not perform duties but for which the employee is directly or
indirectly paid or entitled to payment by a participating public
employer for services in a qualifying position, as long as the
hour is within the number of hours regularly scheduled for the
performance of duties during the period of vacation, holiday,
illness, incapacity, jury duty, military duty or authorized
leave.
  ' (b) 'Hour of service' does not include any hour for which
payment is made or due under a plan maintained solely for the
purpose of complying with applicable workers' compensation laws
or unemployment compensation laws.
  ' (8) 'Inactive member' means a member of the pension program
or the individual account program of the Oregon Public Service
Retirement Plan whose membership has not been terminated, who is
not a retired member and who is not employed in a qualifying
position.
  ' (9) 'Individual account program' means the defined
contribution individual account program of the Oregon Public
Service Retirement Plan established under ORS 238A.025.
  ' (10) 'Member' means an eligible employee who has established
membership in the pension program or the individual account
program of the Oregon Public Service Retirement Plan and whose
membership has not been terminated under ORS 238A.110 or
238A.310.
  ' (11) 'Participating public employer' means a public employer
as defined in ORS 238.005 that provides retirement benefits for
employees of the public employer under the system.
  ' (12) 'Pension program' means the defined benefit pension
program of the Oregon Public Service Retirement Plan established
under ORS 238A.025.
  ' (13) 'Police officer' means a police officer as described in
ORS 238.005.
  ' (14) 'Qualifying position' means one or more jobs with one or
more participating public employers in which an eligible employee
performs 600 or more hours of service in a calendar year,
excluding any service in a job for which benefits are not
provided under the Oregon Public Service Retirement Plan pursuant
to ORS 238A.070 (2).
  ' (15) 'Retired member' means a pension program member who is
receiving a pension as provided in ORS 238A.180 to 238A.195.
  ' (16)(a) 'Salary' means the remuneration paid to an active
member in return for services to the participating public
employer, including remuneration in the form of living quarters,
board or other items of value, to the extent the remuneration is
includable in the employee's taxable income under Oregon law.
Salary includes the additional amounts specified in paragraph (b)
of this subsection, but does not include the amounts specified in
paragraph (c) of this subsection, regardless of whether those
amounts are includable in taxable income.
  ' (b) 'Salary' includes the following amounts:
  ' (A) Payments of employee and employer money into a deferred
compensation plan that are made at the election of the employee.
  ' (B) Contributions to a tax-sheltered or deferred annuity that
are made at the election of the employee.
  ' (C) Any amount that is contributed to a cafeteria plan or
qualified transportation fringe benefit plan by the employer at
the election of the employee and that is not includable in the
taxable income of the employee by reason of 26 U.S.C. 125 or
132(f)(4), as in effect on   { - December 31, 2008 - }  { +  May
1, 2009 + }.
  ' (D) Any amount that is contributed to a cash or deferred
arrangement by the employer at the election of the employee and
that is not included in the taxable income of the employee by
reason of 26 U.S.C. 402(e)(3), as in effect on   { - December 31,
2008 - }  { +  May 1, 2009 + }.
  ' (E) Retroactive payments made to an employee to correct a
clerical error, pursuant to an award by a court or by order of or
pursuant to a conciliation agreement with an administration
agency charged with enforcing federal or state law protecting the
employee's rights to employment or wages, which shall be
allocated to and deemed paid in the periods in which the work was
done or in which the work would have been done.
  ' (F) The amount of an employee contribution to the individual
account program that is paid by the employer and deducted from
the compensation of the employee, as provided under ORS 238A.335
(1) and (2)(a).
  ' (G) The amount of an employee contribution to the individual
account program that is not paid by the employer under ORS
238A.335.
  ' (H) Wages of a deceased member paid to a surviving spouse or
dependent children under ORS 652.190.
  ' (c) 'Salary' does not include the following amounts:
  ' (A) Travel or any other expenses incidental to employer's
business which is reimbursed by the employer.
  ' (B) Payments made on account of an employee's death.
  ' (C) Any lump sum payment for accumulated unused sick leave,
vacation leave or other paid leave.
  ' (D) Any severance payment, accelerated payment of an
employment contract for a future period or advance against future
wages.
  ' (E) Any retirement incentive, retirement bonus or retirement
gratuitous payment.
  ' (F) Payment for a leave of absence after the date the
employer and employee have agreed that no future services in a
qualifying position will be performed.
  ' (G) Payments for instructional services rendered to
institutions of the Department of Higher Education or the Oregon
Health and Science University when those services are in excess
of full-time employment subject to this chapter. A person
employed under a contract for less than 12 months is subject to
this subparagraph only for the months covered by the contract.
  ' (H) The amount of an employee contribution to the individual
account program that is paid by the employer and is not deducted
from the compensation of the employee, as provided under ORS
238A.335 (1) and (2)(b).
  ' (I) Any amount in excess of $200,000 for a calendar year.  If
any period over which salary is determined is less than 12
months, the $200,000 limitation for that period shall be
multiplied by a fraction, the numerator of which is the number of
months in the determination period and the denominator of which
is 12. The board shall adopt rules adjusting this dollar limit to
incorporate cost-of-living adjustments authorized by the Internal
Revenue Service.
  ' (17) 'System' means the Public Employees Retirement System.
  '  { +  SECTION 2. + } ORS 238A.125, as amended by section 2,
chapter 5, Oregon Laws 2009 (Enrolled House Bill 2157), is
amended to read:
  ' 238A.125. (1) Upon retiring at normal retirement age, a
vested pension program member shall be paid an annual pension for
the life of the member as follows:
  ' (a) For service as a police officer or firefighter, 1.8
percent of final average salary multiplied by the number of years
of retirement credit attributable to service as a police officer
or firefighter.
  ' (b) For service as other than a police officer or
firefighter, 1.5 percent of final average salary multiplied by
the number of years of retirement credit attributable to service
as other than a police officer or firefighter.
  ' (2) Notwithstanding any provision of ORS 238A.100 to
238A.245, the annual benefit payable to a member under the
pension program and under any other tax-qualified defined benefit
plan maintained by the participating public employer may not
exceed the applicable limitations set forth in 26 U.S.C. 415(b),
as in effect on   { - December 31, 2008 - }  { +  May 1,
2009 + }. The Public Employees Retirement Board shall adopt rules
for the administration of this limitation, including adjustments
in the annual dollar limitation to reflect cost-of-living
adjustments authorized by the Internal Revenue Service.
  ' (3) The board shall make no actuarial adjustment in a
member's pension calculated under this section by reason of the
member's retirement after normal retirement age.
  '  { +  SECTION 3. + } ORS 238A.150, as amended by section 3,
chapter 5, Oregon Laws 2009 (Enrolled House Bill 2157), is
amended to read:
  ' 238A.150. (1) Notwithstanding any other provision of ORS
238A.100 to 238A.245, an eligible employee who leaves a
qualifying position for the purpose of performing service in the
uniformed services, and who subsequently returns to employment
with a participating public employer with reemployment rights
under federal law, is entitled to accrue retirement credit,
credit toward the probationary period required by ORS 238A.100
and credit toward the vesting requirements of ORS 238A.115 under
rules adopted by the Public Employees Retirement Board pursuant
to subsection (2) of this section.
  ' (2) The board shall adopt rules establishing benefits and
service credit for any period of service in the uniformed
services by an employee described in subsection (1) of this
section. For the purpose of adopting rules under this subsection,
the board shall consider and take into account all federal law
relating to benefits and service credit for any period of service
in the uniformed services, including 26 U.S.C. 414(u), as in
effect on
  { - December 31, 2008 - }  { +  May 1, 2009 + }. Benefits and
service credit under rules adopted by the board pursuant to this
subsection may not exceed benefits and service credit required
under federal law for periods of service in the uniformed
services.
  '  { +  SECTION 4. + } ORS 238A.170, as amended by section 4,
chapter 5, Oregon Laws 2009 (Enrolled House Bill 2157), is
amended to read:
  ' 238A.170. (1) An active member of the pension program who is
70-1/2 years of age or older must retire not later than April 1
of the calendar year following the calendar year in which the
member terminates employment with all participating public
employers. An inactive member of the pension program must retire
not later than April 1 of the calendar year following the
calendar year in which the member attains 70-1/2 years of age.
  ' (2) Notwithstanding any other provision of ORS 238A.100 to
238A.245, the entire interest of a member of the pension program
must be distributed over a time period commencing no later than
the required beginning date set forth in subsection (1) of this
section, and must be distributed in a manner that satisfies all
other minimum distribution requirements of 26 U.S.C. 401(a)(9)
and regulations implementing that section, as in effect on
 { - December 31, 2008 - }  { +  May 1, 2009 + }. The Public
Employees Retirement Board shall adopt rules implementing those
minimum distribution requirements.
  '  { +  SECTION 5. + } ORS 238A.230, as amended by section 5,
chapter 5, Oregon Laws 2009 (Enrolled House Bill 2157), is
amended to read:
  ' 238A.230. (1) If a member of the pension program who is
vested dies before the member's effective date of retirement, the
Public Employees Retirement Board shall pay the death benefit
provided for in this section to the spouse of the member or to
any other person who is constitutionally required to be treated
in the same manner as a spouse for the purpose of retirement
benefits.
  ' (2)(a) The death benefit to be paid under this section shall
be for the life of the spouse or other person who is
constitutionally required to be treated in the same manner as a
spouse, and shall be the actuarial equivalent of 50 percent of
the pension that would otherwise have been paid to the deceased
member.
  ' (b) For the purpose of paragraph (a) of this subsection, the
amount of the pension that would otherwise have been paid to the
deceased member shall be calculated:
  ' (A) As of the date of death if the member dies after the
earliest retirement date for the member under ORS 238A.165; or
  ' (B) As if the member became an inactive member on the date of
death and thereafter retired at the earliest retirement date if
the member dies before the earliest retirement date for the
member under ORS 238A.165.
  ' (3) The death benefit provided under this section is first
effective on the first day of the month following the date of
death of the member. The surviving spouse or other person
entitled to the death benefit may elect to delay payment of the
death benefit, but payment must commence no later than December
31 of the calendar year in which the member would have reached
70-1/2 years of age.
  ' (4) Notwithstanding any other provision of ORS 238A.100 to
238A.245, distributions of death benefits under the pension
program must comply with the minimum distribution requirements of
26 U.S.C. 401(a)(9) and the regulations implementing that
section, as in effect on   { - December 31, 2008 - }  { +  May 1,
2009 + }. The board shall adopt rules implementing those minimum
distribution requirements.
  '  { +  SECTION 6. + } ORS 238A.370, as amended by section 6,
chapter 5, Oregon Laws 2009 (Enrolled House Bill 2157), is
amended to read:
  ' 238A.370. Notwithstanding any other provision of ORS 238A.300
to 238A.415, the annual addition to the employee and employer
accounts of a member of the individual account program for a
calendar year, together with the annual additions to the accounts
of the member under any other defined contribution plan
maintained by the participating public employer for a calendar
year, may not exceed the lesser of $40,000, or 100 percent of the
member's compensation for that calendar year. For purposes of
this section, 'annual addition' has the meaning given that term
in 26 U.S.C. 415(c)(2), as in effect on   { - December 31,
2008 - }  { +  May 1, 2009 + }, and 'compensation' has the
meaning given the term 'participant's compensation' in 26 U.S.C.
415(c)(3), as in effect on   { - December 31, 2008 - }  { +  May
1, 2009 + }. The Public Employees Retirement Board shall adopt
rules for the administration of this limitation, including
adjustments in the annual dollar limitation to reflect
cost-of-living adjustments authorized by the Internal Revenue
Service.
  '  { +  SECTION 7. + } ORS 238A.400, as amended by section 7,
chapter 5, Oregon Laws 2009 (Enrolled House Bill 2157), is
amended to read:
  ' 238A.400. (1) Upon retirement on or after the earliest
retirement date, as described in ORS 238A.165, a member of the
individual account program shall receive in a lump sum the
amounts in the member's employee account, rollover account and
employer account to the extent the member is vested in those
accounts under ORS 238A.320.
  ' (2) In lieu of a lump sum payment under subsection (1) of
this section, a member of the individual account program may
elect to receive the amounts in the member's employee account and
employer account, to the extent the member is vested in those
accounts under ORS 238A.320, in substantially equal installments
paid over a period of 5, 10, 15 or 20 years, or over a period
that is equal to the anticipated life span of the member as
actuarially determined by the Public Employees Retirement Board.
Installments may be made on a monthly, quarterly or annual basis.
In no event may the period selected by the member exceed the time
allowed by the minimum distribution requirements described in
subsection (5) of this section. The board shall by rule establish
the manner in which installments will be adjusted to reflect
investment gains and losses on the unpaid balance during the
payout period elected by the member under this subsection. The
board by rule may establish minimum monthly amounts payable under
this subsection.  The board may require that a lump sum payment,
or an installment schedule different than the schedules provided
for in this subsection, be used to pay the vested amounts in the
member's accounts if those amounts are not adequate to generate
the minimum monthly amounts specified by the rule.
  ' (3) A member of the individual account program electing to
receive installments under subsection (2) of this section must
designate a beneficiary or beneficiaries. In the event the member
dies before all amounts in the employee and vested employer
accounts are paid, all remaining installment payments shall be
made to the beneficiary or beneficiaries designated by the
member.  A beneficiary may elect to receive a lump sum
distribution of the remaining amounts.
  ' (4) A member who is entitled to receive retirement benefits
under ORS chapter 238 may receive vested amounts in the member's
employee account, rollover account and employer account in the
manner provided by this section when the member retires for
service under the provisions of ORS chapter 238.
  ' (5) Notwithstanding any other provision of ORS 238A.300 to
238A.415, the entire interest of a member of the individual
account program must be distributed over a time period commencing
no later than the latest retirement date set forth in ORS
238A.170, and must be distributed in a manner that satisfies all
other minimum distribution requirements of 26 U.S.C. 401(a)(9)
and regulations implementing that section, as in effect on
 { - December 31, 2008 - }  { +  May 1, 2009 + }. The board shall
adopt rules implementing those minimum distribution requirements.
  '  { +  SECTION 8. + } ORS 238A.410, as amended by section 8,
chapter 5, Oregon Laws 2009 (Enrolled House Bill 2157), is
amended to read:
  ' 238A.410. (1) If a member of the individual account program
dies before retirement, the amounts in the member's employee
account, rollover account and employer account, to the extent the
member is vested in those accounts under ORS 238A.320, shall be
paid in a lump sum to the beneficiary or beneficiaries designated
by the member for the purposes of this section.
 
  ' (2) If a member of the individual account program is married
at the time of death, or there exists at the time of death any
other person who is constitutionally required to be treated in
the same manner as a spouse for the purpose of retirement
benefits, the spouse or other person shall be the beneficiary for
purposes of the death benefit payable under this section unless
the spouse or other person consents to the designation of a
different beneficiary or beneficiaries before the designation has
been made and the consent has not been revoked by the spouse or
other person as of the time of the member's death. Consent and
revocation of consent must be in writing, acknowledged by a
notary public, and submitted to the Public Employees Retirement
Board in accordance with rules adopted by the board. If the
member's spouse is designated as the member's beneficiary and the
marriage of the member and spouse is subsequently dissolved, the
former spouse shall be treated as predeceasing the member for
purposes of this section, unless the member expressly designates
the former spouse as beneficiary after the effective date of the
dissolution or the former spouse is required to be designated as
a beneficiary under the provisions of ORS 238.465.
  ' (3) For purposes of this section and ORS 238A.400 (3), if a
member fails to designate a beneficiary, or if the person or
persons designated do not survive the member, the death benefit
provided for in this section shall be paid to the following
person or persons, in the following order of priority:
  ' (a) The member's surviving spouse or other person who is
constitutionally required to be treated in the same manner as a
spouse;
  ' (b) The member's surviving children, in equal shares; or
  ' (c) The member's estate.
  ' (4) The entire amount of a deceased member's vested accounts
must be distributed by December 31 of the fifth calendar year
after the year in which the member died. Notwithstanding any
other provision of this chapter, distributions of death benefits
under the individual account program must comply with the minimum
distribution requirements of 26 U.S.C. 401(a)(9) and the
regulations implementing that section, as in effect on
 { - December 31, 2008 - }  { +  May 1, 2009 + }. The Public
Employees Retirement Board shall adopt rules implementing those
minimum distribution requirements.
  '  { +  SECTION 9. + } ORS 238A.415, as amended by section 9,
chapter 5, Oregon Laws 2009 (Enrolled House Bill 2157), is
amended to read:
  ' 238A.415. (1) Notwithstanding any other provision of ORS
238A.300 to 238A.415, an eligible employee who leaves a
qualifying position for the purpose of performing service in the
uniformed services, and who subsequently returns to employment
with a participating public employer with reemployment rights
under federal law, is entitled to credit toward the probationary
period required by ORS 238A.300, credit toward the vesting
requirements of ORS 238A.320 and contributions under rules
adopted by the Public Employees Retirement Board pursuant to
subsection (2) of this section.
  ' (2) The board shall adopt rules establishing contributions
and service credit for any period of service in the uniformed
services by an employee described in subsection (1) of this
section. For the purpose of adopting rules under this subsection,
the board shall consider and take into account all federal law
relating to benefits and service credit for any period of service
in the uniformed services, including 26 U.S.C. 414(u), as in
effect on   { - December 31, 2008 - }   { + May 1, 2009 + }.
Contributions and service credit under rules adopted by the board
pursuant to this subsection may not exceed contributions and
service credit required under federal law for periods of service
in the uniformed services.
 
  '  { +  SECTION 10. + } ORS 238A.430, as amended by section 10,
chapter 5, Oregon Laws 2009 (Enrolled House Bill 2157), is
amended to read:
  ' 238A.430. (1) To the extent required by law, and except as
otherwise provided by rules adopted by the Public Employees
Retirement Board under subsection (4) of this section, any
portion of a distribution of benefits described in subsection (2)
of this section shall, at the election of and in lieu of
distribution to the distributee, be paid directly to an eligible
retirement plan specified by the distributee.
  ' (2) The provisions of subsection (1) of this section apply to
a distribution of any benefit under the pension program or the
individual account program except:
  ' (a) A distribution that is one of a series of substantially
equal periodic payments made at least annually for the life or
life expectancy of the distributee, or for the joint lives or
life expectancies of the distributee and a designated
beneficiary;
  ' (b) A distribution that is one of a series of substantially
equal periodic payments made at least annually for a specified
period of 10 years or more; and
  ' (c) A distribution to the extent that the distribution is
required under 26 U.S.C. 401(a)(9).
  ' (3) The provisions of subsection (1) of this section apply to
any portion of a distribution of benefits under the pension
program or the individual account program even though the portion
consists of after-tax employee contributions that are not
includable in gross income. Any portion of a distribution that
consists of after-tax employee contributions that are not
includable in gross income may be transferred only to an
individual retirement account or annuity described in 26 U.S.C.
408(a) or (b), or to a qualified defined contribution or defined
benefit plan described in 26 U.S.C. 401(a) or 403(b) that agrees
to account separately for amounts transferred, including
accounting separately for the portion of the distribution that is
includable in gross income and the portion of the distribution
that is not includable in gross income. The amount transferred
shall be treated as consisting first of the portion of the
distribution that is includable in gross income, determined
without regard to 26 U.S.C. 402(c)(1).
  ' (4) The board shall adopt rules implementing the direct
rollover requirements of 26 U.S.C. 401(a)(31) and the regulations
implementing that section, and may adopt administrative
exceptions to the direct rollover requirements to the extent
permitted by 26 U.S.C. 401(a)(31) and the regulations
implementing that section.
  ' (5) All references in this section to federal laws and
regulations are to the laws and regulations in effect on
 { - December 31, 2008 - }  { +  May 1, 2009 + }.
  ' (6) For purposes of this section:
  ' (a) 'Distributee' means a member, a member's surviving spouse
or a member's alternate payee under ORS 238.465.
  ' (b) 'Eligible retirement plan' means:
  ' (A) An individual retirement account described in 26 U.S.C.
408(a);
  ' (B) An individual retirement annuity described in 26 U.S.C.
408(b), other than an endowment contract;
  ' (C) A qualified trust under 26 U.S.C. 401(a), that is a
defined contribution or defined benefit plan and permits the
acceptance of rollover contributions;
  ' (D) An annuity plan described in 26 U.S.C. 403(a);
  ' (E) An eligible deferred compensation plan described in 26
U.S.C. 457(b) that is maintained by an eligible governmental
employer described in 26 U.S.C. 457(e)(1)(A) and that agrees to
account separately for amounts transferred into such plan from
the distributing plan; or
  ' (F) An annuity contract described in 26 U.S.C. 403(b).
  '  { +  SECTION 11. + } ORS 305.230, as amended by section 1,
chapter 45, Oregon Laws 2008, and section 11, chapter 5, Oregon
Laws 2009 (Enrolled House Bill 2157), is amended to read:
  ' 305.230. (1) Notwithstanding ORS 9.320:
  ' (a) Any person who is qualified to practice law or public
accountancy in this state, any person who has been granted active
enrollment to practice before the Internal Revenue Service and
who is qualified to prepare tax returns in this state or any
person who is the authorized employee of a taxpayer and is
regularly employed by the taxpayer in tax matters may represent
the taxpayer before a tax court magistrate or the Department of
Revenue in any conference or proceeding with respect to the
administration of any tax.
  ' (b) Any person who is licensed by the State Board of Tax
Practitioners or who is exempt from such licensing requirement as
provided for and limited by ORS 673.610 may represent a taxpayer
before a tax court magistrate or the department in any conference
or proceeding with respect to the administration of any tax on or
measured by net income.
  ' (c) Any shareholder of an S corporation, as defined in
section 1361 of the Internal Revenue Code, as amended and in
effect on   { - December 31, 2008 - }  { +  May 1, 2009 + }, may
represent the corporation in any proceeding before a tax court
magistrate or the department in the same manner as if the
shareholder were a partner and the S corporation were a
partnership. The S corporation must designate in writing a tax
matters shareholder authorized to represent the S corporation.
  ' (d) An individual who is licensed as a real estate broker or
principal real estate broker under ORS 696.022 or is a state
certified appraiser or state licensed appraiser under ORS 674.310
or is a registered appraiser under ORS 308.010 may represent a
taxpayer before a tax court magistrate or the department in any
conference or proceeding with respect to the administration of
any ad valorem property tax.
  ' (e) A general partner who has been designated by members of a
partnership as their tax matters partner under ORS 305.242 may
represent those partners in any conference or proceeding with
respect to the administration of any tax on or measured by net
income.
  ' (f) Any person authorized under rules adopted by the
department may represent a taxpayer before the department in any
conference or proceeding with respect to any tax. Rules adopted
under this paragraph, to the extent feasible, shall be consistent
with federal law that governs representation before the Internal
Revenue Service, as federal law is amended and in effect on
  { - December 31, 2008 - }  { +  May 1, 2009 + }.
  ' (g) Any person authorized under rules adopted by the tax
court may represent a taxpayer in a proceeding before a tax court
magistrate.
  ' (2) A person may not be recognized as representing a taxpayer
pursuant to this section unless there is first filed with the
magistrate or department a written authorization, or unless it
appears to the satisfaction of the magistrate or department that
the representative does in fact have authority to represent the
taxpayer. A person recognized as an authorized representative
under rules or procedures adopted by the tax court shall be
considered an authorized representative by the department.
  ' (3) A taxpayer represented by someone other than an attorney
is bound by all things done by the authorized representative, and
may not thereafter claim any proceeding was legally defective
because the taxpayer was not represented by an attorney.
  ' (4) Prior to the holding of a conference or proceeding before
the tax court magistrate or department, written notice shall be
given by the magistrate or department to the taxpayer of the
provisions of subsection (3) of this section.
  '  { +  SECTION 12. + } ORS 305.494, as amended by section 2,
chapter 45, Oregon Laws 2008, and section 12, chapter 5, Oregon
Laws 2009 (Enrolled House Bill 2157), is amended to read:
  ' 305.494. Notwithstanding ORS 9.320, any shareholder of an S
corporation as defined in section 1361 of the Internal Revenue
Code, as amended and in effect on   { - December 31, 2008 - }
 { +  May 1, 2009 + }, may represent the corporation in any
proceeding before the Oregon Tax Court in the same manner as if
the shareholder were a partner and the S corporation were a
partnership.
  '  { +  SECTION 13. + } ORS 305.690, as amended by section 3,
chapter 45, Oregon Laws 2008, and section 13, chapter 5, Oregon
Laws 2009 (Enrolled House Bill 2157), is amended to read:
  ' 305.690. As used in ORS 305.690 to 305.753, unless the
context otherwise requires:
  ' (1) 'Biennial years' means the two income tax years of
individual taxpayers that begin in the two calendar years
immediately following the calendar year in which a list is
certified under ORS 305.715.
  ' (2) 'Commission' means the Oregon Charitable Checkoff
Commission.
  ' (3) 'Department' means the Department of Revenue.
  ' (4) 'Eligibility roster' means a list, prepared under ORS
305.715 and maintained by the commission in chronological order
based on the date of form listing or date of eligibility
determination, whichever is later, of charitable and governmental
entities seeking inclusion on the Oregon individual income tax
return forms.
  ' (5) 'Form listed' or 'form listing' means being listed on the
Oregon individual income tax return form.
  ' (6) 'Instruction listing' means being listed on the
Department of Revenue instructions for tax return checkoff
contribution.
  ' (7) 'Internal Revenue Code' means the federal Internal
Revenue Code as amended and in effect on   { - December 31,
2008 - }  { +  May 1, 2009 + }.
  '  { +  SECTION 14. + } ORS 307.130, as amended by section 4,
chapter 45, Oregon Laws 2008, and section 14, chapter 5, Oregon
Laws 2009 (Enrolled House Bill 2157), is amended to read:
  ' 307.130. (1) As used in this section:
  ' (a) 'Art museum' means a nonprofit corporation organized to
display works of art to the public.
  ' (b) 'Internal Revenue Code' means the federal Internal
Revenue Code as amended and in effect on   { - December 31,
2008 - }  { +  May 1, 2009 + }.
  ' (c) 'Nonprofit corporation' means a corporation that:
  ' (A) Is organized not for profit, pursuant to ORS chapter 65
or any predecessor of ORS chapter 65; or
  ' (B) Is organized and operated as described under section
501(c) of the Internal Revenue Code.
  ' (d) 'Volunteer fire department' means a nonprofit corporation
organized to provide fire protection services in a specific
response area.
  ' (2) Upon compliance with ORS 307.162, the following property
owned or being purchased by art museums, volunteer fire
departments, or incorporated literary, benevolent, charitable and
scientific institutions shall be exempt from taxation:
  ' (a) Except as provided in ORS 748.414, only such real or
personal property, or proportion thereof, as is actually and
exclusively occupied or used in the literary, benevolent,
charitable or scientific work carried on by such institutions.
  ' (b) Parking lots used for parking or any other use as long as
that parking or other use is permitted without charge for no
fewer than 355 days during the tax year.
  ' (c) All real or personal property of a rehabilitation
facility or any retail outlet thereof, including inventory. As
used in this subsection, 'rehabilitation facility' means either
those facilities defined in ORS 344.710 or facilities which
provide individuals who have physical, mental or emotional
disabilities with occupational rehabilitation activities of an
educational or therapeutic nature, even if remuneration is
received by the individual.
  ' (d) All real and personal property of a retail store dealing
exclusively in donated inventory, where the inventory is
distributed without cost as part of a welfare program or where
the proceeds of the sale of any inventory sold to the general
public are used to support a welfare program. As used in this
subsection, ' welfare program' means the providing of food,
shelter, clothing or health care, including dental service, to
needy persons without charge.
  ' (e) All real and personal property of a retail store if:
  ' (A) The retail store deals primarily and on a regular basis
in donated and consigned inventory;
  ' (B) The individuals who operate the retail store are all
individuals who work as volunteers; and
  ' (C) The inventory is either distributed without charge as
part of a welfare program, or sold to the general public and the
sales proceeds used exclusively to support a welfare program. As
used in this paragraph, 'primarily' means at least one-half of
the inventory.
  ' (f) The real and personal property of an art museum that is
used in conjunction with the public display of works of art or
used to educate the public about art, but not including any
portion of the art museum's real or personal property that is
used to sell, or hold out for sale, works of art, reproductions
of works of art or other items to be sold to the public.
  ' (g) All real and personal property of a volunteer fire
department that is used in conjunction with services and
activities for providing fire protection to all residents within
a fire response area.
  ' (h) All real and personal property, including inventory, of a
retail store owned by a nonprofit corporation if:
  ' (A) The retail store deals exclusively in donated inventory;
and
  ' (B) Proceeds of the retail store sales are used to support a
not-for-profit housing program whose purpose is to:
  ' (i) Acquire property and construct housing for resale to
individuals at or below the cost of acquisition and construction;
and
  ' (ii) Provide loans bearing no interest to individuals
purchasing housing through the program.
  ' (3) An art museum or institution shall not be deprived of an
exemption under this section solely because its primary source of
funding is from one or more governmental entities.
  ' (4) An institution shall not be deprived of an exemption
under this section because its purpose or the use of its property
is not limited to relieving pain, alleviating disease or removing
constraints.
  '  { +  SECTION 15. + } ORS 307.147, as amended by section 5,
chapter 45, Oregon Laws 2008, and section 15, chapter 5, Oregon
Laws 2009 (Enrolled House Bill 2157), is amended to read:
  ' 307.147. (1) For purposes of this section:
  ' (a) 'Internal Revenue Code' means the federal Internal
Revenue Code as amended and in effect on   { - December 31,
2008 - }  { +  May 1, 2009 + }.
  ' (b) 'Nonprofit corporation' means a corporation that:
  ' (A) Is organized not for profit, pursuant to ORS chapter 65
or any predecessor of ORS chapter 65; or
  ' (B) Is organized and operated as described under section
501(c) of the Internal Revenue Code.
  ' (c) 'Senior services center' means property that:
  ' (A) Is owned or being purchased by a nonprofit corporation;
  ' (B) Is actually and exclusively used to provide services and
activities (including parking) primarily to or for persons over
50 years of age;
  ' (C) Is open generally to all persons over 50 years of age;
  ' (D) Is not used primarily for fund-raising activities; and
  ' (E) Is not a residential or dwelling place.
  ' (2) Upon compliance with ORS 307.162, a senior services
center is exempt from ad valorem property taxation.
  '  { +  SECTION 16. + } ORS 308A.450, as amended by section 6,
chapter 45, Oregon Laws 2008, and section 16, chapter 5, Oregon
Laws 2009 (Enrolled House Bill 2157), is amended to read:
  ' 308A.450. As used in ORS 308A.450 to 308A.465:
  ' (1) 'Conservation easement' has the meaning given that term
in ORS 271.715.
  ' (2) 'Holder' has the meaning given that term in ORS 271.715.
  ' (3) 'Internal Revenue Code' means the federal Internal
Revenue Code as amended and in effect on   { - December 31,
2008 - }  { +  May 1, 2009 + }.
  ' (4) 'Lot' has the meaning given that term in ORS 92.010.
  ' (5) 'Parcel' has the meaning given that term in ORS 92.010,
as further modified by ORS 215.010.
  '  { +  SECTION 17. + } ORS 310.140, as amended by section 7,
chapter 45, Oregon Laws 2008, and section 17, chapter 5, Oregon
Laws 2009 (Enrolled House Bill 2157), is amended to read:
  ' 310.140. The Legislative Assembly finds that section 11b,
Article XI of the Oregon Constitution, was drafted by citizens
and placed before the voters of the State of Oregon by initiative
petition. Section 11b, Article XI of the Oregon Constitution,
uses terms that do not have established legal meanings and
require definition by the Legislative Assembly. Section 11b,
Article XI of the Oregon Constitution, was amended by section 11
(11), Article XI of the Oregon Constitution. This section is
intended to interpret the terms of section 11b, Article XI of the
Oregon Constitution, as originally adopted and as amended by
section 11 (11), Article XI of the Oregon Constitution,
consistent with the intent of the people in adopting these
provisions, so that the provisions of section 11b, Article XI of
the Oregon Constitution, may be given effect uniformly throughout
the State of Oregon, with minimal confusion and misunderstanding
by citizens and affected units of government. As used in the
revenue and tax laws of this state, and for purposes of section
11b, Article XI of the Oregon Constitution:
  ' (1) 'Actual cost' means all direct or indirect costs incurred
by a government unit in order to deliver goods or services or to
undertake a capital construction project. The ' actual cost' of
providing goods or services to a property or property owner
includes the average cost or an allocated portion of the total
amount of the actual cost of making a good or service available
to the property or property owner, whether stated as a minimum,
fixed or variable amount. 'Actual cost' includes, but is not
limited to, the costs of labor, materials, supplies, equipment
rental, property acquisition, permits, engineering, financing,
reasonable program delinquencies, return on investment, required
fees, insurance, administration, accounting, depreciation,
amortization, operation, maintenance, repair or replacement and
debt service, including debt service payments or payments into
reserve accounts for debt service and payment of amounts
necessary to meet debt service coverage requirements.
  ' (2) 'Assessment for local improvement' means any tax, fee,
charge or assessment that does not exceed the actual cost
incurred by a unit of government for design, construction and
financing of a local improvement.
  ' (3) 'Bonded indebtedness' means any formally executed written
agreement representing a promise by a unit of government to pay
to another a specified sum of money, at a specified date or dates
at least one year in the future.
  ' (4) 'Capital construction':
  ' (a) For bonded indebtedness issued prior to December 5, 1996,
and for the proceeds of any bonded indebtedness approved by
electors prior to December 5, 1996, that were spent or
contractually obligated to be spent prior to June 20, 1997, means
the construction, modification, replacement, repair, remodeling
or renovation of a structure, or addition to a structure, that is
expected to have a useful life of more than one year, and
includes, but is not limited to:
  ' (A) Acquisition of land, or a legal interest in land, in
conjunction with the capital construction of a structure.
  ' (B) Acquisition, installation of machinery or equipment,
furnishings or materials that will become an integral part of a
structure.
  ' (C) Activities related to the capital construction, including
planning, design, authorizing, issuing, carrying or repaying
interim or permanent financing, research, land use and
environmental impact studies, acquisition of permits or licenses
or other services connected with the construction.
  ' (D) Acquisition of existing structures, or legal interests in
structures, in conjunction with the capital construction.
  ' (b) For bonded indebtedness issued on or after December 5,
1996, except for the proceeds of any bonded indebtedness approved
by electors prior to December 5, 1996, that were spent or
contractually obligated to be spent before June 20, 1997, has the
meaning given that term in paragraph (a) of this subsection,
except that 'capital construction':
  ' (A) Includes public safety and law enforcement vehicles with
a projected useful life of five years or more; and
  ' (B) Does not include:
  ' (i) Maintenance and repairs, the need for which could be
reasonably anticipated;
  ' (ii) Supplies and equipment that are not intrinsic to the
structure; or
  ' (iii) Furnishings, unless the furnishings are acquired in
connection with the acquisition, construction, remodeling or
renovation of a structure, or the repair of a structure that is
required because of damage or destruction of the structure.
  ' (5) 'Capital improvements':
  ' (a) For bonded indebtedness issued prior to December 5, 1996,
and for the proceeds of any bonded indebtedness approved by
electors before December 5, 1996, that were spent or
contractually obligated to be spent before June 20, 1997, means
land, structures, facilities, personal property that is
functionally related and subordinate to real property, machinery,
equipment or furnishings having a useful life longer than one
year.
  ' (b) For bonded indebtedness issued on or after December 5,
1996, except for the proceeds of any bonded indebtedness approved
by electors prior to December 5, 1996, that were spent or
contractually obligated to be spent before June 20, 1997, has the
meaning given that term in paragraph (a) of this subsection,
except that 'capital improvements':
  ' (A) Includes public safety and law enforcement vehicles with
a projected useful life of five years or more; and
  ' (B) Does not include:
  ' (i) Maintenance and repairs, the need for which could be
reasonably anticipated;
  ' (ii) Supplies and equipment that are not intrinsic to the
structure; or
  ' (iii) Furnishings, unless the furnishings are acquired in
connection with the acquisition, construction, remodeling or
renovation of a structure, or the repair of a structure that is
required because of damage or destruction of the structure.
  ' (6) 'Direct consequence of ownership' means that the
obligation of the owner of property to pay a tax arises solely
because that person is the owner of the property, and the
obligation to pay the tax arises as an immediate and necessary
result of that ownership without respect to any other intervening
transaction, condition or event.
  ' (7)(a) 'Exempt bonded indebtedness' means:
  ' (A) Bonded indebtedness authorized by a specific provision of
the Oregon Constitution;
  ' (B) Bonded indebtedness incurred or to be incurred for
capital construction or capital improvements that was issued as a
general obligation of the issuing governmental unit on or before
November 6, 1990;
  ' (C) Bonded indebtedness incurred or to be incurred for
capital construction or capital improvements that was issued as a
general obligation of the issuing governmental unit after
November 6, 1990, with the approval of the electors of the
issuing governmental unit; or
  ' (D) Bonded indebtedness incurred or to be incurred for
capital construction or capital improvements, if the issuance of
the bonds is approved by voters on or after December 5, 1996, in
an election that is in compliance with the voter participation
requirements of section 11 (8), Article XI of the Oregon
Constitution.
  ' (b) 'Exempt bonded indebtedness' includes bonded indebtedness
issued to refund or refinance any bonded indebtedness described
in paragraph (a) of this subsection.
  ' (8)(a) 'Incurred charge' means a charge imposed by a unit of
government on property or upon a property owner that does not
exceed the actual cost of providing goods or services and that
can be controlled or avoided by the property owner because:
  ' (A) The charge is based on the quantity of the goods or
services used, and the owner has direct control over the
quantity;
  ' (B) The goods or services are provided only on the specific
request of the property owner; or
  ' (C) The goods or services are provided by the government unit
only after the individual property owner has failed to meet
routine obligations of ownership of the affected property, and
such action is deemed necessary by an appropriate government unit
to enforce regulations pertaining to health or safety.
  ' (b) For purposes of this subsection, an owner of property may
control or avoid an incurred charge if the owner is capable of
taking action to affect the amount of a charge that is or will be
imposed or to avoid imposition of a charge even if the owner must
incur expense in so doing.
  ' (c) For purposes of paragraph (a)(A) of this subsection, an
owner of property has direct control over the quantity of goods
or services if the owner of property has the ability, whether or
not that ability is exercised, to determine the quantity of goods
or services provided or to be provided.
  ' (9)(a) 'Local improvement' means a capital construction
project, or part thereof, undertaken by a local government,
pursuant to ORS 223.387 to 223.399, or pursuant to a local
ordinance or resolution prescribing the procedure to be followed
in making local assessments for benefits from a local improvement
upon the lots that have been benefited by all or a part of the
improvement:
  ' (A) That provides a special benefit only to specific
properties or rectifies a problem caused by specific properties;
  ' (B) The costs of which are assessed against those properties
in a single assessment upon the completion of the project; and
  ' (C) For which the property owner may elect to make payment of
the assessment plus appropriate interest over a period of at
least 10 years.
  ' (b) For purposes of paragraph (a) of this subsection, the
status of a capital construction project as a local improvement
 
is not affected by the accrual of a general benefit to property
other than the property receiving the special benefit.
  ' (10) 'Maintenance and repairs, the need for which could be
reasonably anticipated':
  ' (a) Means activities, the type of which may be deducted as an
expense under the provisions of the federal Internal Revenue
Code, as amended and in effect on   { - December 31, 2008 - }
 { +  May 1, 2009 + }, that keep the property in ordinarily
efficient operating condition and that do not add materially to
the value of the property nor appreciably prolong the life of the
property;
  ' (b) Does not include maintenance and repair of property that
is required by damage, destruction or defect in design, or that
was otherwise not reasonably expected at the time the property
was constructed or acquired, or the addition of material that is
in the nature of the replacement of property and that arrests the
deterioration or appreciably prolongs the useful life of the
property; and
  ' (c) Does not include street and highway construction, overlay
and reconstruction.
  ' (11) 'Projected useful life' means the useful life, as
reasonably estimated by the unit of government undertaking the
capital construction or capital improvement project, beginning
with the date the property was acquired, constructed or
reconstructed and based on the property's condition at the time
the property was acquired, constructed or reconstructed.
  ' (12) 'Routine obligations of ownership' means a standard of
operation, maintenance, use or care of property established by
law, or if established by custom or common law, a standard that
is reasonable for the type of property affected.
  ' (13) 'Single assessment' means the complete assessment
process, including preassessment, assessment or reassessment, for
any local improvement authorized by ORS 223.387 to 223.399, or a
local ordinance or resolution that provides the procedure to be
followed in making local assessments for benefits from a local
improvement upon lots that have been benefited by all or part of
the improvement.
  ' (14) 'Special benefit only to specific properties' shall have
the same meaning as 'special and peculiar benefit' as that term
is used in ORS 223.389.
  ' (15) 'Specific request' means:
  ' (a) An affirmative act by a property owner to seek or obtain
delivery of goods or services;
  ' (b) An affirmative act by a property owner, the legal
consequence of which is to cause the delivery of goods or
services to the property owner; or
  ' (c) Failure of an owner of property to change a request for
goods or services made by a prior owner of the property.
  ' (16) 'Structure' means any temporary or permanent building or
improvement to real property of any kind that is constructed on
or attached to real property, whether above, on or beneath the
surface.
  ' (17) 'Supplies and equipment intrinsic to a structure ' means
the supplies and equipment that are necessary to permit a
structure to perform the functions for which the structure was
constructed, or that will, upon installation, constitute fixtures
considered to be part of the real property that is comprised, in
whole or part, of the structure and land supporting the
structure.
  ' (18) 'Tax on property' means any tax, fee, charge or
assessment imposed by any government unit upon property or upon a
property owner as a direct consequence of ownership of that
property, but does not include incurred charges or assessments
for local improvements. As used in this subsection, 'property'
means real or tangible personal property, and intangible property
that is part of a unit of real or tangible personal property to
the extent that such intangible property is subject to a tax on
property.
  '  { +  SECTION 18. + } ORS 310.630, as amended by section 8,
chapter 45, Oregon Laws 2008, and section 18, chapter 5, Oregon
Laws 2009 (Enrolled House Bill 2157), is amended to read:
  ' 310.630. As used in ORS 310.630 to 310.706:
  ' (1) 'Contract rent' means rental paid to the landlord for the
right to occupy a homestead, including the right to use the
personal property located therein. 'Contract rent' does not
include rental paid for the right to occupy a homestead that is
exempt from taxation, unless payments in lieu of taxes of 10
percent or more of the rental exclusive of fuel and utilities are
made on behalf of the homestead. 'Contract rent' does not include
advanced rental payments for another period and rental deposits,
whether or not expressly set out in the rental agreement, or
payments made to a nonprofit home for the elderly described in
ORS 307.375. If a landlord and tenant have not dealt with each
other at arm's length, and the Department of Revenue is satisfied
that the contract rent charged was excessive, it may adjust the
contract rent to a reasonable amount for purposes of ORS 310.630
to 310.706.
  ' (2) 'Department' means the Department of Revenue.
  ' (3) 'Fuel and utility payments' includes payments for heat,
lights, water, sewer and garbage made solely to secure those
commodities or services for the homestead of the taxpayer. 'Fuel
and utility payments' does not include telephone service.
  ' (4) 'Gross rent' means contract rent paid plus the fuel and
utility payments made for the homestead in addition to the
contract rent, during the calendar year for which the claim is
filed.
  ' (5) 'Homestead' means the taxable principal dwelling located
in Oregon, either real or personal property, rented by the
taxpayer, and the taxable land area of the tax lot upon which it
is built.
  ' (6) 'Household' means the taxpayer, the spouse of the
taxpayer and all other persons residing in the homestead during
any part of the calendar year for which a claim is filed.
  ' (7) 'Household income' means the aggregate income of the
taxpayer and the spouse of the taxpayer who reside in the
household, that was received during the calendar year for which
the claim is filed. 'Household income' includes payments received
by the taxpayer or the spouse of the taxpayer under the federal
Social Security Act for the benefit of a minor child or minor
children who are members of the household.
  ' (8) 'Income' means 'adjusted gross income' as defined in the
federal Internal Revenue Code, as amended and in effect on
  { - December 31, 2008 - }  { +  May 1, 2009 + }, even when the
amendments take effect or become operative after that date,
relating to the measurement of taxable income of individuals,
estates and trusts, with the following modifications:
  ' (a) There shall be added to adjusted gross income the
following items of otherwise exempt income:
  ' (A) The gross amount of any otherwise exempt pension less
return of investment, if any.
  ' (B) Child support received by the taxpayer.
  ' (C) Inheritances.
  ' (D) Gifts and grants, the sum of which are in excess of $500
per year.
  ' (E) Amounts received by a taxpayer or spouse of a taxpayer
for support from a parent who is not a member of the taxpayer's
household.
  ' (F) Life insurance proceeds.
  ' (G) Accident and health insurance proceeds, except
reimbursement of incurred medical expenses.
  ' (H) Personal injury damages.
 
  ' (I) Sick pay which is not included in federal adjusted gross
income.
  ' (J) Strike benefits excluded from federal gross income.
  ' (K) Worker's compensation, except for reimbursement of
medical expense.
  ' (L) Military pay and benefits.
  ' (M) Veteran's benefits.
  ' (N) Payments received under the federal Social Security Act
which are excluded from federal gross income.
  ' (O) Welfare payments, except as follows:
  ' (i) Payments for medical care, drugs and medical supplies, if
the payments are not made directly to the welfare recipient;
  ' (ii) In-home services authorized and approved by the
Department of Human Services; and
  ' (iii) Direct or indirect reimbursement of expenses paid or
incurred for participation in work or training programs.
  ' (P) Nontaxable dividends.
  ' (Q) Nontaxable interest not included in federal adjusted
gross income.
  ' (R) Rental allowance paid to a minister that is excluded from
federal gross income.
  ' (S) Income from sources without the United States that is
excluded from federal gross income.
  ' (b) Adjusted gross income shall be increased due to the
disallowance of the following deductions:
  ' (A) The amount of the net loss, in excess of $1,000, from all
dispositions of tangible or intangible properties.
  ' (B) The amount of the net loss, in excess of $1,000, from the
operation of a farm or farms.
  ' (C) The amount of the net loss, in excess of $1,000, from all
operations of a trade or business, profession or other activity
entered into for the production or collection of income.
  ' (D) The amount of the net loss, in excess of $1,000, from
tangible or intangible property held for the production of rents,
royalties or other income.
  ' (E) The amount of any net operating loss carryovers or
carrybacks included in federal adjusted gross income.
  ' (F) The amount, in excess of $5,000, of the combined
deductions or other allowances for depreciation, amortization or
depletion.
  ' (G) The amount added or subtracted, as required within the
context of this section, for adjustments made under ORS 316.680
(2)(d) and 316.707 to 316.737.
  ' (c) 'Income' does not include any of the following:
  ' (A) Any governmental grant which must be used by the taxpayer
for rehabilitation of the homestead of the taxpayer.
  ' (B) The amount of any payments made pursuant to ORS 310.630
to 310.706.
  ' (C) Any refund of Oregon personal income taxes that were
imposed under ORS chapter 316.
  ' (9) 'Payments for heat' means those payments made to secure
the commodities or services to be used as the principal source of
heat for the homestead of the taxpayer and includes payments for
natural gas, oil, firewood, coal, sawdust, electricity, steam or
other materials that are capable of use as a primary source of
heat for the homestead.
  ' (10) 'Statement of gross rent' means a declaration by the
applicant, under penalties of false swearing, that the amount of
contract rent and fuel and utility payments designated is the
actual amount both incurred and paid during the year for which
elderly rental assistance is claimed.
  ' (11) 'Taxpayer' means an individual who is a resident of this
state on December 31 of the year for which elderly rental
assistance is claimed and whose homestead, as of the same
December 31 and during all or a portion of the year ending on the
same December 31, is rented and while rented is the subject,
directly or indirectly, of property tax levied by this state or a
political subdivision or of payments made in lieu of taxes.
  '  { +  SECTION 19. + } ORS 310.800, as amended by section 9,
chapter 45, Oregon Laws 2008, and section 19, chapter 5, Oregon
Laws 2009 (Enrolled House Bill 2157), is amended to read:
  ' 310.800. (1) As used in this section:
  ' (a) 'Authorized representative' means a senior citizen who is
authorized by a tax-exempt entity to perform charitable or public
service on behalf of a senior citizen who has entered into a
contract under subsection (2) of this section.
  ' (b) 'Homestead' means an owner-occupied principal residence.
  ' (c) 'Senior citizen' means a person who is 60 years of age or
older.
  ' (d) 'Tax-exempt entity' means an entity that is exempt from
federal income taxes under section 501(c) of the Internal Revenue
Code, as amended and in effect on   { - December 31, 2008 - }
 { +  May 1, 2009 + }.
  ' (e) 'Taxing unit' means any county, city or common or union
high school district, community college service district or
community college district within this state with authority to
impose ad valorem property taxes.
  ' (2) A tax-exempt entity may establish a property tax work-off
program pursuant to which a senior citizen may contract to
perform charitable or public service in consideration of payment
of property taxes extended against the homestead of the senior
citizen and billed to the senior citizen. For purposes of ORS
chapters 316 and 656, and notwithstanding ORS 670.600 or other
law, a senior citizen who enters into a contract under this
subsection shall be considered an independent contractor and not
a worker or employee with respect to the services performed
pursuant to the contract. Nothing in this section precludes a
taxing unit from being considered an employer, for purposes of
unemployment compensation under ORS chapter 657, of a senior
citizen who enters into a contract under this section.
  ' (3) A taxing unit may enter into an agreement with a
tax-exempt entity that has established a property tax work-off
program. Pursuant to the agreement the taxing unit may accept, as
volunteer and public service, the services of a senior citizen
who has entered into a contract described in subsection (2) of
this section or an authorized representative.
  ' (4) A taxing unit may provide funds or make grants to any
tax-exempt entity that has established a property tax work-off
program for use to carry out the program.
  '  { +  SECTION 20. + } ORS 311.689, as amended by section 10,
chapter 45, Oregon Laws 2008, and section 20, chapter 5, Oregon
Laws 2009 (Enrolled House Bill 2157), is amended to read:
  ' 311.689. (1) Notwithstanding ORS 311.668 or any other
provision of ORS 311.666 to 311.701, if the individual or, in the
case of two or more individuals electing to defer property taxes
jointly, all of the individuals together, or the spouse who has
filed a claim under ORS 311.688, has federal adjusted gross
income that exceeds $32,000 for the tax year that began in the
previous calendar year, then for the tax year next beginning, the
amount of taxes for which deferral is allowed shall be reduced by
$0.50 for each dollar of federal adjusted gross income in excess
of $32,000.
  ' (2) Prior to June 1 of each year, and notwithstanding ORS
314.835, the Department of Revenue shall review returns filed
under ORS chapter 314 and 316 to determine if subsection (1) of
this section is applicable for a homestead for the tax year next
beginning. If subsection (1) of this section is applicable, the
department shall notify by mail the taxpayer or spouse electing
deferral, and the taxes otherwise to be deferred for the tax year
next beginning shall be reduced as provided in subsection (1) of
this section or, if federal adjusted gross income in excess of
 
$32,000 exceeds the amount of property taxes by a factor of two,
the property taxes shall not be deferred.
  ' (3) If the taxpayer or spouse does not file a return for
purposes of ORS chapters 314 and 316 and the department has
reason to believe that the federal adjusted gross income of the
taxpayer or spouse exceeds $32,000 for the tax year that began in
the previous calendar year, the department shall notify by mail
the taxpayer or spouse electing deferral. If, within 30 days
after the notice is mailed, the taxpayer or spouse does not file
a return under ORS chapter 314 or 316 or otherwise satisfy the
department that federal adjusted gross income does not exceed
$32,000, the department shall again notify the taxpayer or
spouse, and the taxes otherwise to be deferred for the tax year
next beginning shall not be deferred.
  ' (4) For tax years beginning on or after July 1, 2002, the
federal adjusted gross income limit set forth in subsections (1)
to (3) of this section shall be recomputed by multiplying $32,000
by the indexing factor described in ORS 311.668 (7)(a)(A), and
rounding the amount so computed to the nearest multiple of $500.
  ' (5) Nothing in this section shall affect the continued
deferral of taxes that have been deferred for tax years beginning
prior to the tax year next beginning or the right to deferral of
taxes for a tax year beginning after the tax year next beginning
if subsection (1) is not applicable for that tax year for the
homestead.
  ' (6) As used in this section, 'federal adjusted gross income'
means federal adjusted gross income of the individual or, in the
case of two or more individuals electing to defer property tax
jointly, the combined federal adjusted gross income of the
individuals, or the federal adjusted gross income of the spouse
who has filed a claim under ORS 311.688, all as determined for
the tax year beginning in the calendar year prior to which a
determination is required under subsection (2) of this section.
' Federal adjusted gross income' shall be determined under the
Internal Revenue Code, as amended and in effect on   { - December
31, 2008 - }  { +  May 1, 2009 + }, without any of the additions,
subtractions or other modifications or adjustments required under
ORS chapter 314 or 316.
  ' (7)(a) If, after an initial determination under this section
has been made by the department, upon audit or examination or
otherwise, it is discovered that the taxpayer or spouse had
federal adjusted gross income in excess of the limitation
provided under subsection (1) of this section, the department
shall determine the amount of taxes deferred that should not have
been deferred and give notice to the taxpayer or spouse of the
amount of taxes that should not have been deferred. The
provisions of ORS chapters 305 and 314 shall apply to a
determination of the department under this section in the same
manner as those provisions are applicable to an income tax
deficiency. The amount of deferred taxes that should not have
been deferred shall bear interest from the date paid by the
department until paid at the rate established under ORS 305.220
for deficiencies. A deficiency shall not be assessed under this
section if notice required under this section is not given to the
taxpayer or spouse within three years after the date that the
department has paid the deferred taxes to the county. Upon
payment of the amount assessed as deficiency, and interest, the
department shall execute a release in the amount of the payment
and the release shall be conclusive evidence of the removal and
extinguishment of the lien under ORS 311.666 to 311.701 to the
extent of the payment.
  ' (b) If, after an initial determination under this section has
been made by the department, upon claim for refund, audit or
examination or otherwise, it is discovered that the taxpayer or
spouse had federal adjusted gross income in the amount of or less
than the limitation provided under subsection (1) of this
section, the department shall determine the amount of taxes
deferred that should have been deferred and give notice to the
taxpayer or spouse of the amount of taxes that should have been
deferred. The provisions of ORS chapters 305 and 314 shall apply
to a determination of the department under this section in the
same manner as those provisions are applicable to an income tax
refund.  The amount of the taxes that should have been deferred
shall bear interest from the date paid by the taxpayer to the
county at the rate established under ORS 305.220 for refunds
until paid. Claim for refund under this paragraph must be filed
within three years after the earliest date that the taxpayer or
spouse is notified by the department that the taxes are not
deferred.
  ' (8) This section applies to all tax-deferred property,
notwithstanding that election to defer taxes is made under ORS
311.666 to 311.701 before or after October 3, 1989.
  '  { +  SECTION 21. + } ORS 314.011, as amended by section 11,
chapter 45, Oregon Laws 2008, and section 21, chapter 5, Oregon
Laws 2009 (Enrolled House Bill 2157), is amended to read:
  ' 314.011. (1) As used in this chapter, unless the context
requires otherwise, 'department' means the Department of Revenue.
  ' (2) As used in this chapter:
  ' (a) Any term has the same meaning as when used in a
comparable context in the laws of the United States relating to
federal income taxes, unless a different meaning is clearly
required or the term is specifically defined in this chapter.
  ' (b) Except where the Legislative Assembly has provided
otherwise, a reference to the laws of the United States or to the
Internal Revenue Code refers to the laws of the United States or
to the Internal Revenue Code as they are amended and in effect on
  { - December 31, 2008 - }  { +  May 1, 2009 + }.
  ' (c) With respect to ORS 314.105, 314.256 (relating to proxy
tax on lobbying expenditures), 314.260 (1)(b), 314.265 (1)(b),
314.302, 314.306, 314.330, 314.360, 314.362, 314.385, 314.402,
314.410, 314.412, 314.525, 314.742 (7), 314.750 and 314.752 and
other provisions of this chapter, any reference to the laws of
the United States or to the Internal Revenue Code means the laws
of the United States relating to income taxes or the Internal
Revenue Code as they are amended on or before   { - December 31,
2008 - }  { +  May 1, 2009 + }, even when the amendments take
effect or become operative after that date, except where the
Legislative Assembly has specifically provided otherwise.
  ' (3) Insofar as is practicable in the administration of this
chapter, the department shall apply and follow the administrative
and judicial interpretations of the federal income tax law. When
a provision of the federal income tax law is the subject of
conflicting opinions by two or more federal courts, the
department shall follow the rule observed by the United States
Commissioner of Internal Revenue until the conflict is resolved.
Nothing contained in this section limits the right or duty of the
department to audit the return of any taxpayer or to determine
any fact relating to the tax liability of any taxpayer.
  ' (4) When portions of the Internal Revenue Code incorporated
by reference as provided in subsection (2) of this section refer
to rules or regulations prescribed by the Secretary of the
Treasury, then such rules or regulations shall be regarded as
rules adopted by the department under and in accordance with the
provisions of this chapter, whenever they are prescribed or
amended.
  ' (5)(a) When portions of the Internal Revenue Code
incorporated by reference as provided in subsection (2) of this
section are later corrected by an Act or a Title within an Act of
the United States Congress designated as an Act or Title making
technical corrections, then notwithstanding the date that the Act
or Title becomes law, those portions of the Internal Revenue
Code, as so corrected, shall be the portions of the Internal
Revenue Code incorporated by reference as provided in subsection
(2) of this section and shall take effect, unless otherwise
indicated by the Act or Title (in which case the provisions shall
take effect as indicated in the Act or Title), as if originally
included in the provisions of the Act being technically
corrected. If, on account of this subsection, any adjustment is
required to an Oregon return that would otherwise be prevented by
operation of law or rule, the adjustment shall be made,
notwithstanding any law or rule to the contrary, in the manner
provided under ORS 314.135.
  ' (b) As used in this subsection, 'Act or Title' includes any
subtitle, division or other part of an Act or Title.
  '  { +  SECTION 22. + } ORS 314.011, as amended by section 11,
chapter 45, Oregon Laws 2008, section 21, chapter 5, Oregon Laws
2009 (Enrolled House Bill 2157), and section 21 of this 2009 Act,
is amended to read:
  ' 314.011. (1) As used in this chapter, unless the context
requires otherwise, 'department' means the Department of Revenue.
  ' (2) As used in this chapter:
  ' (a) Any term has the same meaning as when used in a
comparable context in the laws of the United States relating to
federal income taxes, unless a different meaning is clearly
required or the term is specifically defined in this chapter.
  ' (b) Except where the Legislative Assembly has provided
otherwise, a reference to the laws of the United States or to the
Internal Revenue Code refers to the laws of the United States or
to the Internal Revenue Code as they are amended and in
effect { + :
  ' (A) + } On May 1, 2009  { - . - }  { + ; or
  ' (B) If related to the definition of taxable income, as
applicable to the tax year of the taxpayer. + }
  ' (c) With respect to ORS 314.105, 314.256 (relating to proxy
tax on lobbying expenditures), 314.260 (1)(b), 314.265 (1)(b),
314.302, 314.306, 314.330, 314.360, 314.362, 314.385, 314.402,
314.410, 314.412, 314.525, 314.742 (7), 314.750 and 314.752 and
other provisions of this chapter,  { + except those described in
paragraph (b) of this subsection, + } any reference to the laws
of the United States or to the Internal Revenue Code means the
laws of the United States relating to income taxes or the
Internal Revenue Code as they are amended on or before May 1,
2009, even when the amendments take effect or become operative
after that date, except where the Legislative Assembly has
specifically provided otherwise.
  ' (3) Insofar as is practicable in the administration of this
chapter, the department shall apply and follow the administrative
and judicial interpretations of the federal income tax law. When
a provision of the federal income tax law is the subject of
conflicting opinions by two or more federal courts, the
department shall follow the rule observed by the United States
Commissioner of Internal Revenue until the conflict is resolved.
Nothing contained in this section limits the right or duty of the
department to audit the return of any taxpayer or to determine
any fact relating to the tax liability of any taxpayer.
  ' (4) When portions of the Internal Revenue Code incorporated
by reference as provided in subsection (2) of this section refer
to rules or regulations prescribed by the Secretary of the
Treasury, then such rules or regulations shall be regarded as
rules adopted by the department under and in accordance with the
provisions of this chapter, whenever they are prescribed or
amended.
  ' (5)(a) When portions of the Internal Revenue Code
incorporated by reference as provided in subsection (2) of this
section are later corrected by an Act or a Title within an Act of
the United States Congress designated as an Act or Title making
technical corrections, then notwithstanding the date that the Act
or Title becomes law, those portions of the Internal Revenue
Code, as so corrected, shall be the portions of the Internal
Revenue Code incorporated by reference as provided in subsection
(2) of this section and shall take effect, unless otherwise
indicated by the Act or Title (in which case the provisions shall
take effect as indicated in the Act or Title), as if originally
included in the provisions of the Act being technically
corrected. If, on account of this subsection, any adjustment is
required to an Oregon return that would otherwise be prevented by
operation of law or rule, the adjustment shall be made,
notwithstanding any law or rule to the contrary, in the manner
provided under ORS 314.135.
  ' (b) As used in this subsection, 'Act or Title' includes any
subtitle, division or other part of an Act or Title.
  '  { +  SECTION 23. + } ORS 315.004, as amended by section 12,
chapter 45, Oregon Laws 2008, and section 22, chapter 5, Oregon
Laws 2009 (Enrolled House Bill 2157), is amended to read:
  ' 315.004. (1) Except when the context requires otherwise, the
definitions contained in ORS chapters 314, 316, 317 and 318 are
applicable in the construction, interpretation and application of
the personal and corporate income and excise tax credits
contained in this chapter.
  ' (2)(a) For purposes of the tax credits contained in this
chapter, any term has the same meaning as when used in a
comparable context in the laws of the United States relating to
federal income taxes, unless a different meaning is clearly
required or the term is specifically defined for purposes of
construing, interpreting and applying the credit.
  ' (b) With respect to the tax credits contained in this
chapter, any reference to the laws of the United States or to the
Internal Revenue Code means the laws of the United States
relating to income taxes or the Internal Revenue Code as they are
amended on or before   { - December 31, 2008 - }  { +  May 1,
2009 + }, even when the amendments take effect or become
operative after that date.
  ' (3) Insofar as is practicable in the administration of this
chapter, the Department of Revenue shall apply and follow the
administrative and judicial interpretations of the federal income
tax law. When a provision of the federal income tax law is the
subject of conflicting opinions by two or more federal courts,
the department shall follow the rule observed by the United
States Commissioner of Internal Revenue until the conflict is
resolved.  Nothing contained in this section limits the right or
duty of the department to audit the return of any taxpayer or to
determine any fact relating to the tax liability of any taxpayer.
  ' (4) When portions of the Internal Revenue Code incorporated
by reference as provided in subsection (2) of this section refer
to rules or regulations prescribed by the Secretary of the
Treasury, then such rules or regulations shall be regarded as
rules adopted by the department under and in accordance with the
provisions of this chapter, whenever they are prescribed or
amended.
  ' (5)(a) When portions of the Internal Revenue Code
incorporated by reference as provided in subsection (2) of this
section are later corrected by an Act or a Title within an Act of
the United States Congress designated as an Act or Title making
technical corrections, then notwithstanding the date that the Act
or Title becomes law, those portions of the Internal Revenue
Code, as so corrected, shall be the portions of the Internal
Revenue Code incorporated by reference as provided in subsection
(2) of this section and shall take effect, unless otherwise
indicated by the Act or Title (in which case the provisions shall
take effect as indicated in the Act or Title), as if originally
included in the provisions of the Act being technically
corrected. If, on account of this subsection, any adjustment is
required to an Oregon return that would otherwise be prevented by
operation of law or rule, the adjustment shall be made,
notwithstanding any law or rule to the contrary, in the manner
provided under ORS 314.135.
  ' (b) As used in this subsection, 'Act or Title' includes any
subtitle, division or other part of an Act or Title.
  '  { +  SECTION 24. + } ORS 316.012, as amended by section 13,
chapter 45, Oregon Laws 2008, and section 23, chapter 5, Oregon
Laws 2009 (Enrolled House Bill 2157), is amended to read:
  ' 316.012. Any term used in this chapter has the same meaning
as when used in a comparable context in the laws of the United
States relating to federal income taxes, unless a different
meaning is clearly required or the term is specifically defined
in this chapter. Except where the Legislative Assembly has
provided otherwise, any reference in this chapter to the laws of
the United States or to the Internal Revenue Code refers to the
laws of the United States or to the Internal Revenue Code as they
are amended and in effect on   { - December 31, 2008 - }  { +
May 1, 2009 + }.
  '  { +  SECTION 25. + } ORS 316.012, as amended by section 13,
chapter 45, Oregon Laws 2008, section 23, chapter 5, Oregon Laws
2009 (Enrolled House Bill 2157), and section 24 of this 2009 Act,
is amended to read:
  ' 316.012. Any term used in this chapter has the same meaning
as when used in a comparable context in the laws of the United
States relating to federal income taxes, unless a different
meaning is clearly required or the term is specifically defined
in this chapter. Except where the Legislative Assembly has
provided otherwise, any reference in this chapter to the laws of
the United States or to the Internal Revenue Code refers to the
laws of the United States or to the Internal Revenue Code as they
are amended and in effect { + :
  ' (1) + } On May 1, 2009  { - . - }  { + ; or
  ' (2) If related to the definition of taxable income, as
applicable to the tax year of the taxpayer. + }
  '  { +  SECTION 26. + } ORS 317.010, as amended by section 14,
chapter 45, Oregon Laws 2008, and section 24, chapter 5, Oregon
Laws 2009 (Enrolled House Bill 2157), is amended to read:
  ' 317.010. As used in this chapter, unless the context requires
otherwise:
  ' (1) 'Centrally assessed corporation' means every corporation
the property of which is assessed by the Department of Revenue
under ORS 308.505 to 308.665.
  ' (2) 'Department' means the Department of Revenue.
  ' (3)(a) 'Consolidated federal return' means the return
permitted or required to be filed by a group of affiliated
corporations under section 1501 of the Internal Revenue Code.
  ' (b) 'Consolidated state return' means the return required to
be filed under ORS 317.710 (5).
  ' (4) 'Doing business' means any transaction or transactions in
the course of its activities conducted within the state by a
national banking association, or any other corporation; provided,
however, that a foreign corporation whose activities in this
state are confined to purchases of personal property, and the
storage thereof incident to shipment outside the state, shall not
be deemed to be doing business unless such foreign corporation is
an affiliate of another foreign or domestic corporation which is
doing business in Oregon. Whether or not corporations are
affiliated shall be determined as provided in section 1504 of the
Internal Revenue Code.
  ' (5) 'Excise tax' means a tax measured by or according to net
income imposed upon national banking associations, all other
banks, and financial, centrally assessed, mercantile,
manufacturing and business corporations for the privilege of
carrying on or doing business in this state.
  ' (6) 'Financial institution' or 'financial corporation ' means
a bank or trust company organized under ORS chapter 707, national
banking association or production credit association organized
under federal statute, building and loan association, savings and
loan association, mutual savings bank, and any other corporation
whose principal business is in direct competition with national
and state banks.
  ' (7) 'Internal Revenue Code,' except where the Legislative
Assembly has provided otherwise, refers to the laws of the United
States or to the Internal Revenue Code as they are amended and in
effect on   { - December 31, 2008 - }  { +  May 1, 2009 + }.
  ' (8) 'Oregon taxable income' means taxable income, less the
deduction allowed under ORS 317.476, except as otherwise provided
with respect to insurers in subsection (11) of this section and
ORS 317.650 to 317.665.
  ' (9) 'Oregon net loss' means taxable loss, except as otherwise
provided with respect to insurers in subsection (11) of this
section and ORS 317.650 to 317.665.
  ' (10) 'Taxable income or loss' means the taxable income or
loss determined, or in the case of a corporation for which no
federal taxable income or loss is determined, as would be
determined, under chapter 1, Subtitle A of the Internal Revenue
Code and any other laws of the United States relating to the
determination of taxable income or loss of corporate taxpayers,
with the additions, subtractions, adjustments and other
modifications as are specifically prescribed by this chapter
except that in determining taxable income or loss for any year,
no deduction under ORS 317.476 or 317.478 and section 45b,
chapter 293, Oregon Laws 1987, shall be allowed. If the
corporation is a corporation to which ORS 314.280 or 314.605 to
314.675 (requiring or permitting apportionment of income from
transactions or activities carried on both within and without the
state) applies, to derive taxable income or loss, the following
shall occur:
  ' (a) From the amount otherwise determined under this
subsection, subtract nonbusiness income, or add nonbusiness loss,
whichever is applicable.
  ' (b) Multiply the amount determined under paragraph (a) of
this subsection by the Oregon apportionment percentage defined
under ORS 314.280, 314.650 or 314.670, whichever is applicable.
The resulting product shall be Oregon apportioned income or loss.
  ' (c) To the amount determined as Oregon apportioned income or
loss under paragraph (b) of this subsection, add nonbusiness
income allocable entirely to Oregon under ORS 314.280 or 314.625
to 314.645, or subtract nonbusiness loss allocable entirely to
Oregon under ORS 314.280 or 314.625 to 314.645. The resulting
figure is 'taxable income or loss' for those corporations
carrying on taxable transactions or activities both within and
without Oregon.
  ' (11) As used in ORS 317.122 and 317.650 to 317.665, '
insurer' means any domestic, foreign or alien insurer as defined
in ORS 731.082 and any interinsurance and reciprocal exchange and
its attorney in fact with respect to its attorney in fact net
income as a corporate attorney in fact acting as attorney in
compliance with ORS 731.458, 731.462, 731.466 and 731.470 for the
reciprocal or interinsurance exchange. However, 'insurer' does
not include title insurers or health care service contractors
operating pursuant to ORS 750.005 to 750.095.
  '  { +  SECTION 27. + } ORS 317.010, as amended by section 14,
chapter 45, Oregon Laws 2008, section 24, chapter 5, Oregon Laws
2009 (Enrolled House Bill 2157), and section 26 of this 2009 Act,
is amended to read:
  ' 317.010. As used in this chapter, unless the context requires
otherwise:
  ' (1) 'Centrally assessed corporation' means every corporation
the property of which is assessed by the Department of Revenue
under ORS 308.505 to 308.665.
  ' (2) 'Department' means the Department of Revenue.
 
  ' (3)(a) 'Consolidated federal return' means the return
permitted or required to be filed by a group of affiliated
corporations under section 1501 of the Internal Revenue Code.
  ' (b) 'Consolidated state return' means the return required to
be filed under ORS 317.710 (5).
  ' (4) 'Doing business' means any transaction or transactions in
the course of its activities conducted within the state by a
national banking association, or any other corporation; provided,
however, that a foreign corporation whose activities in this
state are confined to purchases of personal property, and the
storage thereof incident to shipment outside the state, shall not
be deemed to be doing business unless such foreign corporation is
an affiliate of another foreign or domestic corporation which is
doing business in Oregon. Whether or not corporations are
affiliated shall be determined as provided in section 1504 of the
Internal Revenue Code.
  ' (5) 'Excise tax' means a tax measured by or according to net
income imposed upon national banking associations, all other
banks, and financial, centrally assessed, mercantile,
manufacturing and business corporations for the privilege of
carrying on or doing business in this state.
  ' (6) 'Financial institution' or 'financial corporation ' means
a bank or trust company organized under ORS chapter 707, national
banking association or production credit association organized
under federal statute, building and loan association, savings and
loan association, mutual savings bank, and any other corporation
whose principal business is in direct competition with national
and state banks.
  ' (7) 'Internal Revenue Code,' except where the Legislative
Assembly has provided otherwise, refers to the laws of the United
States or to the Internal Revenue Code as they are amended and in
effect { + :
  ' (a) + } On May 1, 2009  { - . - }  { + ; or
  ' (b) If related to the definition of taxable income, as
applicable to the tax year of the taxpayer. + }
  ' (8) 'Oregon taxable income' means taxable income, less the
deduction allowed under ORS 317.476, except as otherwise provided
with respect to insurers in subsection (11) of this section and
ORS 317.650 to 317.665.
  ' (9) 'Oregon net loss' means taxable loss, except as otherwise
provided with respect to insurers in subsection (11) of this
section and ORS 317.650 to 317.665.
  ' (10) 'Taxable income or loss' means the taxable income or
loss determined, or in the case of a corporation for which no
federal taxable income or loss is determined, as would be
determined, under chapter 1, Subtitle A of the Internal Revenue
Code and any other laws of the United States relating to the
determination of taxable income or loss of corporate taxpayers,
with the additions, subtractions, adjustments and other
modifications as are specifically prescribed by this chapter
except that in determining taxable income or loss for any year,
no deduction under ORS 317.476 or 317.478 and section 45b,
chapter 293, Oregon Laws 1987, shall be allowed. If the
corporation is a corporation to which ORS 314.280 or 314.605 to
314.675 (requiring or permitting apportionment of income from
transactions or activities carried on both within and without the
state) applies, to derive taxable income or loss, the following
shall occur:
  ' (a) From the amount otherwise determined under this
subsection, subtract nonbusiness income, or add nonbusiness loss,
whichever is applicable.
  ' (b) Multiply the amount determined under paragraph (a) of
this subsection by the Oregon apportionment percentage defined
under ORS 314.280, 314.650 or 314.670, whichever is applicable.
The resulting product shall be Oregon apportioned income or loss.
 
  ' (c) To the amount determined as Oregon apportioned income or
loss under paragraph (b) of this subsection, add nonbusiness
income allocable entirely to Oregon under ORS 314.280 or 314.625
to 314.645, or subtract nonbusiness loss allocable entirely to
Oregon under ORS 314.280 or 314.625 to 314.645. The resulting
figure is 'taxable income or loss' for those corporations
carrying on taxable transactions or activities both within and
without Oregon.
  ' (11) As used in ORS 317.122 and 317.650 to 317.665, '
insurer' means any domestic, foreign or alien insurer as defined
in ORS 731.082 and any interinsurance and reciprocal exchange and
its attorney in fact with respect to its attorney in fact net
income as a corporate attorney in fact acting as attorney in
compliance with ORS 731.458, 731.462, 731.466 and 731.470 for the
reciprocal or interinsurance exchange. However, 'insurer' does
not include title insurers or health care service contractors
operating pursuant to ORS 750.005 to 750.095.
  '  { +  SECTION 28. + } ORS 317.097, as amended by section 6,
chapter 29, Oregon Laws 2008, section 15, chapter 45, Oregon Laws
2008, section 25, chapter 5, Oregon Laws 2009 (Enrolled House
Bill 2157), and section 1a, chapter 82, Oregon Laws 2009
(Enrolled House Bill 2261), is amended to read:
  ' 317.097. (1) 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, 2008 - }  { +  May 1, 2009 + }.
  ' (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.
  ' (g) 'Qualified assignee' means any investor participating in
the secondary market for real estate loans.
  ' (h) 'Qualified borrower' means any borrower that is a
sponsoring entity that has a controlling interest in the real
property that is financed by a qualified loan. 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.
  ' (i) 'Qualified loan' means:
  ' (A) A loan that meets the criteria stated in subsection (5)
of this section or that is made to refinance a loan that meets
the criteria described in subsection (5) of this section; or
  ' (B) The purchase by a lending institution of bonds, as
defined in ORS 286A.001, issued on behalf of the Housing and
Community Services Department, the proceeds of which are used to
finance or refinance a loan that meets the criteria described in
subsection (5) of this section.
  ' (j) '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.
  ' (2) The Department of Revenue shall allow a credit against
taxes otherwise due under this chapter for the taxable year to a
lending institution that makes a qualified loan certified by the
Housing and Community Services Department as provided in
subsection (7) of this section. The amount of the credit is 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 qualified 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
qualified 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 qualified loan for housing
construction, development, acquisition or rehabilitation is made.
  ' (3) The maximum amount of credit for the difference between
the amounts described in subsection (2)(a) and (b) of this
section may not exceed four percent of the average unpaid balance
of the qualified loan during the tax year for which the credit is
claimed.
  ' (4) Any tax credit allowed 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.
  ' (5) To be eligible for the tax credit allowable under this
section, a lending institution must make a qualified loan by
either purchasing bonds, as defined in ORS 286A.001, issued on
behalf of the Housing and Community Services Department, the
proceeds of which are used to finance or refinance a loan that
meets the criteria stated in this subsection, or by making a loan
directly to:
  ' (a) An individual or individuals who own a 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 when the loan is made of less than 80
percent of the area median income;
  ' (b) A qualified borrower who:
  ' (A) Uses the loan proceeds to finance construction,
development, acquisition or rehabilitation of housing; and
  ' (B) Provides a written certification executed 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 qualified borrower who:
 
 
  ' (A) Uses the loan proceeds to finance construction,
development, acquisition or rehabilitation of housing consisting
of a manufactured dwelling park; and
  ' (B) Provides a written certification executed 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 qualified borrower who:
  ' (A) Uses the loan proceeds to finance acquisition or
rehabilitation of housing consisting of a preservation project;
and
  ' (B) Provides a written certification executed 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) Is the subject of 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.
  ' (6) A loan made to refinance a loan that meets the criteria
stated in subsection (5) of this section must be treated the same
as a loan that meets the criteria stated in subsection (5) of
this section.
  ' (7) For a qualified loan to be eligible for the tax credit
allowable under this section, the Housing and Community Services
Department must execute a written certification for the qualified
loan that:
  ' (a) Specifies the period, not to exceed 20 years, as
determined by the Housing and Community Services Department,
during which the tax credit is allowed for the qualified loan;
and
  ' (b) States that the qualified loan is within the limitation
imposed by subsection (8) of this section.
  ' (8) The Housing and Community Services Department may certify
qualified loans that are eligible under subsection (5) of this
section if the total credits attributable to all qualified loans
eligible for credits under this section and then outstanding do
not exceed $17 million for any fiscal year. In making loan
certifications under subsection (7) of this section, 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.
  ' (9) The tax credit provided for in this section may be taken
whether or not:
  ' (a) The financial institution is eligible to take a federal
income tax credit under section 42 of the Internal Revenue Code
with respect to the project financed by the qualified loan; or
  ' (b) The project receives financing from bonds, the interest
on which is exempt from federal taxation under section 103 of the
Internal Revenue Code.
  ' (10) For a qualified loan defined in subsection (1)(i)(B) of
this section financed through the purchase of bonds, the interest
of which is exempt from federal taxation under section 103 of the
Internal Revenue Code, the amount of finance charge that would
have been charged under subsection (2)(b) of this section is
determined by reference to the finance charge that would have
been charged if the federally tax exempt bonds had been issued
and the tax credit under this section did not apply.
  ' (11) A lending institution may sell a qualified loan for
which a certification has been executed to a qualified assignee
whether or not the lending institution retains servicing of the
qualified 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.
  ' (12) Notwithstanding any other provision of law, a lending
institution that is a community development corporation organized
under the Oregon Nonprofit Corporation Law may transfer all or
part of a tax credit allowed under 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 qualified loans for which the tax credit
under this section is allowed.
  ' (13) 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 a tax credit under this section.
  ' (14) The Housing and Community Services Department and the
Department of Revenue may adopt rules to carry out the provisions
of this section.
  '  { +  SECTION 29. + } ORS 458.670, as amended by section 16,
chapter 45, Oregon Laws 2008, and section 26, chapter 5, Oregon
Laws 2009 (Enrolled House Bill 2157), is amended to read:
  ' 458.670. As used in this section and ORS 458.675 to 458.700,
unless the context requires otherwise:
  ' (1) 'Account holder' means a resident of this state who:
  ' (a) Is 12 years of age or older;
  ' (b) Is a member of a lower income household; and
  ' (c) Has established an individual development account with a
fiduciary organization.
  ' (2) 'Fiduciary organization' means an organization selected
under ORS 458.695 to administer state moneys directed to
individual development accounts and that is:
  ' (a) A nonprofit, fund raising organization that is exempt
from taxation under section 501(c)(3) of the Internal Revenue
Code as amended and in effect on   { - December 31, 2008 - }
 { +  May 1, 2009 + }; or
  ' (b) A federally recognized Oregon Indian tribe that is
located, to a significant degree, within the boundaries of this
state.
  ' (3) 'Financial institution' means:
  ' (a) An organization regulated under ORS chapters 706 to 716,
722 or 723; or
  ' (b) In the case of individual development accounts
established for the purpose described in ORS 458.685 (1)(c), a
financial institution as defined in ORS 348.841.
  ' (4) 'Individual development account' means a contract between
an account holder and a fiduciary organization, for the deposit
of funds into a financial institution by the account holder, and
the deposit of matching funds into the financial institution by
the fiduciary organization, to allow the account holder to
accumulate assets for use toward achieving a specific purpose
approved by the fiduciary organization.
  ' (5) 'Lower income household' means a household having an
income equal to or less than 80 percent of the median household
income for the area as determined by the Housing and Community
Services Department. In making the determination, the department
shall give consideration to any data on area household income
published by the United States Department of Housing and Urban
Development.
  ' (6) 'Resident of this state' has the meaning given that term
in ORS 316.027.
  '  { +  SECTION 30. + } ORS 657.010, as amended by section 17,
chapter 45, Oregon Laws 2008, and section 27, chapter 5, Oregon
Laws 2009 (Enrolled House Bill 2157), is amended to read:
  ' 657.010. As used in this chapter, unless the context requires
otherwise:
 
  ' (1) 'Base year' means the first four of the last five
completed calendar quarters preceding the benefit year.
  ' (2) 'Benefits' means the money allowances payable to
unemployed persons under this chapter.
  ' (3) 'Benefit year' means a period of 52 consecutive weeks
commencing with the first week with respect to which an
individual files an initial valid claim for benefits, and
thereafter the 52 consecutive weeks period beginning with the
first week with respect to which the individual next files an
initial valid claim after the termination of the individual's
last preceding benefit year except that the benefit year shall be
53 weeks if the filing of an initial valid claim would result in
overlapping any quarter of the base year of a previously filed
initial valid claim.
  ' (4) 'Calendar quarter' means the period of three consecutive
calendar months ending on March 31, June 30, September 30 or
December 31, or the approximate equivalent thereof, as the
Director of the Employment Department may, by regulation,
prescribe.
  ' (5) 'Contribution' or 'contributions' means the taxes, as
defined in subsection (13) of this section, that are the money
payments required by this chapter, or voluntary payments
permitted, to be made to the Unemployment Compensation Trust
Fund.
  ' (6) 'Educational institution,' including an institution of
higher education as defined in subsection (9) of this section,
means an institution:
  ' (a) In which participants, trainees or students are offered
an organized course of study or training designed to transfer to
them knowledge, skills, information, doctrines, attitudes or
abilities from, by or under the guidance of an instructor or
teacher;
  ' (b) That is accredited, registered, approved, licensed or
issued a permit to operate as a school by the Department of
Education or other government agency, or that offers courses for
credit that are transferable to an approved, registered or
accredited school;
  ' (c) In which the course or courses of study or training that
it offers may be academic, technical, trade or preparation for
gainful employment in a recognized occupation; and
  ' (d) In which the course or courses of study or training are
offered on a regular and continuing basis.
  ' (7) 'Employment office' means a free public employment office
or branch thereof, operated by this state or maintained as a part
of a state-controlled system of public employment offices.
  ' (8) 'Hospital' means an organization that has been licensed,
certified or approved by the Department of Human Services as a
hospital.
  ' (9) 'Institution of higher education' means an educational
institution that:
  ' (a) Admits as regular students only individuals having a
certificate of graduation from a high school, or the recognized
equivalent of such a certificate;
  ' (b) Is legally authorized in this state to provide a program
of education beyond high school;
  ' (c) Provides an educational program for which it awards a
bachelor's or higher degree, or provides a program that is
acceptable for full credit toward such a degree, a program of
post-graduate or post-doctoral studies, or a program of training
to prepare students for gainful employment in a recognized
occupation; and
  ' (d) Is a public or other nonprofit institution.
  ' (10) 'Internal Revenue Code' means the federal Internal
Revenue Code, as amended and in effect on   { - December 31,
2008 - }  { +  May 1, 2009 + }.
 
  ' (11) 'Nonprofit employing unit' means an organization, or
group of organizations, described in section 501(c)(3) of the
Internal Revenue Code that is exempt from income tax under
section 501(a) of the Internal Revenue Code.
  ' (12) 'State' includes, in addition to the states of the
United States of America, the District of Columbia and Puerto
Rico. However, for all purposes of this chapter the Virgin
Islands shall be considered a state on and after the day on which
the United States Secretary of Labor first approves the Virgin
Islands' law under section 3304(a) of the Federal Unemployment
Tax Act as amended by Public Law 94-566.
  ' (13) 'Taxes' means the money payments to the Unemployment
Compensation Trust Fund required, or voluntary payments
permitted, by this chapter.
  ' (14) 'Valid claim' means any claim for benefits made in
accordance with ORS 657.260 if the individual meets the
wages-paid-for-employment requirements of ORS 657.150.
  ' (15) 'Week' means any period of seven consecutive calendar
days ending at midnight, as the director may, by regulation,
prescribe. The director may by regulation prescribe that a 'week
' shall be 'in,' 'within,' or 'during' the calendar quarter that
includes the greater part of such week.  { +  + }
  '  { +  SECTION 31. + } ORS 316.013, as amended by section 29,
chapter 5, Oregon Laws 2009 (Enrolled House Bill 2157), is
amended to read:
  ' 316.013. Unless the context requires otherwise and
notwithstanding ORS 316.012, whenever, in the calculation of
Oregon taxable income, reference to the taxpayer's federal
adjusted gross income is required to be made, the taxpayer's
federal adjusted gross income shall be as determined under the
provisions of the Internal Revenue Code as they may be in effect
on   { - December 31, 2008 - }  { +  May 1, 2009 + }, without any
of the additions, subtractions or other modifications or
adjustments required under this chapter and other laws of this
state applicable to personal income taxation.
  '  { +  SECTION 32. + } ORS 316.013, as amended by section 29,
chapter 5, Oregon Laws 2009 (Enrolled House Bill 2157), and
section 31 of this 2009 Act, is amended to read:
  ' 316.013. Unless the context requires otherwise and
notwithstanding ORS 316.012, whenever, in the calculation of
Oregon taxable income, reference to the taxpayer's federal
adjusted gross income is required to be made, the taxpayer's
federal adjusted gross income shall be as determined under the
provisions of the Internal Revenue Code as they may be in effect
  { - on May 1, 2009, - }   { + for the tax year of the
taxpayer + } without any of the additions, subtractions or other
modifications or adjustments required under this chapter and
other laws of this state applicable to personal income taxation.
  '  { +  SECTION 33. + } ORS 317.018, as amended by section 30,
chapter 5, Oregon Laws 2009 (Enrolled House Bill 2157), is
amended to read:
  ' 317.018. It is the intent of the Legislative Assembly:
  ' (1) To make the Oregon corporate excise tax law, insofar as
it relates to the measurement of taxable income, identical to the
provisions of the federal Internal Revenue Code, as in effect and
applicable on   { - December 31, 2008 - }  { +  May 1, 2009 + },
to the end that taxable income of a corporation for Oregon
purposes is the same as it is for federal income tax purposes,
subject to Oregon's jurisdiction to tax, and subject to the
additions, subtractions, adjustments and modifications contained
in this chapter.
  ' (2) To achieve the results desired under subsection (1) of
this section by application of the various provisions of the
federal Internal Revenue Code relating to the definitions for
corporations, of income, deductions, accounting methods,
accounting periods, taxation of corporations, basis and other
pertinent provisions relating to gross income. It is not the
intent of the Legislative Assembly to adopt federal Internal
Revenue Code provisions dealing with the computation of tax, tax
credits or any other provisions designed to mitigate the amount
of tax due.
  ' (3) To impose on each corporation doing business within this
state an excise tax for the privilege of carrying on or doing
that business measured by its federal taxable income as adjusted
in this chapter.
  '  { +  SECTION 34. + } ORS 317.018, as amended by section 30,
chapter 5, Oregon Laws 2009 (Enrolled House Bill 2157), and
section 33 of this 2009 Act, is amended to read:
  ' 317.018. It is the intent of the Legislative Assembly:
  ' (1) To make the Oregon corporate excise tax law, insofar as
it relates to the measurement of taxable income, identical to the
provisions of the federal Internal Revenue Code, as in effect and
applicable   { - on May 1, 2009 - }  { +  for the tax year of the
taxpayer + }, to the end that taxable income of a corporation for
Oregon purposes is the same as it is for federal income tax
purposes, subject to Oregon's jurisdiction to tax, and subject to
the additions, subtractions, adjustments and modifications
contained in this chapter.
  ' (2) To achieve the results desired under subsection (1) of
this section by application of the various provisions of the
federal Internal Revenue Code relating to the definitions for
corporations, of income, deductions, accounting methods,
accounting periods, taxation of corporations, basis and other
pertinent provisions relating to gross income. It is not the
intent of the Legislative Assembly to adopt federal Internal
Revenue Code provisions dealing with the computation of tax, tax
credits or any other provisions designed to mitigate the amount
of tax due.
  ' (3) To impose on each corporation doing business within this
state an excise tax for the privilege of carrying on or doing
that business measured by its federal taxable income as adjusted
in this chapter.
  '  { +  SECTION 35. + }  { + (1) Except as provided in
subsections (2) and (3) of this section, the amendments to
statutes by sections 1 to 34 of this 2009 Act apply to
transactions or activities occurring on or after May 1, 2009, in
tax years beginning on or after January 1, 2009.
  ' (2) The effective and applicable dates, and the exceptions,
special rules and coordination with the Internal Revenue Code, as
amended, relative to those dates, contained in the American
Recovery and Reinvestment Act of 2009 (P.L. 111-5) and other
federal law amending the Internal Revenue Code apply for Oregon
personal income and corporate excise and income tax purposes, to
the extent they can be made applicable, in the same manner as
they are applied under the Internal Revenue Code and related
federal law.
  ' (3)(a) If a deficiency is assessed against any taxpayer for a
tax year beginning before January 1, 2009, and the deficiency or
any portion thereof is attributable to any retroactive treatment
under the amendments to ORS 305.230, 305.494, 305.690, 307.130,
307.147, 308A.450, 310.140, 310.630, 310.800, 311.689, 314.011,
315.004, 316.012, 316.013, 317.010, 317.018, 317.097, 458.670 and
657.010 by sections 11 to 34 of this 2009 Act, then any interest
or penalty assessed under ORS chapter 305, 314, 315, 316, 317 or
318 with respect to the deficiency or portion thereof shall be
canceled.
  ' (b) If a refund is due any taxpayer for a tax year beginning
before January 1, 2010, and the refund or any portion thereof is
due the taxpayer on account of any retroactive treatment under
the amendments to ORS 305.230, 305.494, 305.690, 307.130,
307.147, 308A.450, 310.140, 310.630, 310.800, 311.689, 314.011,
315.004, 316.012, 316.013, 317.010, 317.018, 317.097, 458.670 and
657.010 by sections 11 to 34 of this 2009 Act, then
notwithstanding ORS 305.270 or 314.415 or other law, the refund
or portion thereof shall be paid without interest.
  ' (c) Any changes required because of the amendments to ORS
305.230, 305.494, 305.690, 307.130, 307.147, 308A.450, 310.140,
310.630, 310.800, 311.689, 314.011, 315.004, 316.012, 316.013,
317.010, 317.018, 317.097, 458.670 and 657.010 by sections 11 to
34 of this 2009 Act for a tax year beginning before January 1,
2010, shall be made by filing an amended return within the time
prescribed by law.
  ' (d) If a taxpayer fails to file an amended return under
paragraph (c) of this subsection, the Department of Revenue shall
make any changes under paragraph (c) of this subsection on the
return to which the changes relate within the period specified
for issuing a notice of deficiency or claiming a refund as
otherwise provided by law with respect to that return, or within
one year after a return for a tax year beginning on or after
January 1, 2009, and before January 1, 2010, is filed, whichever
period expires later. + }
  '  { +  SECTION 36. + }  { + Sections 37 and 42 of this 2009
Act are added to and made a part of ORS chapter 316. + }
  '  { +  SECTION 37. + }  { + (1) There shall be added to
federal taxable income for Oregon tax purposes the difference
between the amount allowable as a deduction under section 108 of
the Internal Revenue Code as applicable to the tax year of the
taxpayer and the amount allowable as a deduction under section
108 of the Internal Revenue Code as amended and in effect on
December 31, 2008, and as applicable to tax years beginning on or
after January 1, 2008, and before January 1, 2009.
  ' (2) There shall be added to federal taxable income for Oregon
tax purposes the difference between the amount allowable as a
deduction under section 168(k) of the Internal Revenue Code as
applicable to the tax year of the taxpayer and the amount
allowable as a deduction under section 168(k) of the Internal
Revenue Code as amended and in effect on December 31, 2008, and
as applicable to tax years beginning on or after January 1, 2008,
and before January 1, 2009.
  ' (3) There shall be added to federal taxable income for Oregon
tax purposes the difference between the amount allowable as a
deduction under section 179 of the Internal Revenue Code as
applicable to the tax year of the taxpayer and the amount
allowable as a deduction under section 179 of the Internal
Revenue Code as amended and in effect on December 31, 2008, and
as applicable to tax years beginning on or after January 1, 2008,
and before January 1, 2009.
  ' (4) Amounts added to federal taxable income for Oregon tax
purposes under subsections (1) to (3) of this section may
thereafter be subtracted from federal taxable income for Oregon
tax purposes in the tax year for which the amounts would have
been allowed as a deduction on the taxpayer's federal income tax
return under the Internal Revenue Code as amended and in effect
on December 31, 2008, and as applicable to tax years beginning on
or after January 1, 2008, and before January 1, 2009. + }
  '  { +  SECTION 38. + }  { + Section 39 of this 2009 Act is
added to and made a part of ORS chapter 317. + }
  '  { +  SECTION 39. + }  { + (1) There shall be added to
federal taxable income for Oregon tax purposes the difference
between the amount allowable as a deduction under section 108 of
the Internal Revenue Code as applicable to the tax year of the
taxpayer and the amount allowable as a deduction under section
108 of the Internal Revenue Code as amended and in effect on
December 31, 2008, and as applicable to tax years beginning on or
after January 1, 2008, and before January 1, 2009.
  ' (2) There shall be added to federal taxable income for Oregon
tax purposes the difference between the amount allowable as a
deduction under section 168(k) of the Internal Revenue Code as
applicable to the tax year of the taxpayer and the amount
allowable as a deduction under section 168(k) of the Internal
Revenue Code as amended and in effect on December 31, 2008, and
as applicable to tax years beginning on or after January 1, 2008,
and before January 1, 2009.
  ' (3) There shall be added to federal taxable income for Oregon
tax purposes the difference between the amount allowable as a
deduction under section 179 of the Internal Revenue Code as
applicable to the tax year of the taxpayer and the amount
allowable as a deduction under section 179 of the Internal
Revenue Code as amended and in effect on December 31, 2008, and
as applicable to tax years beginning on or after January 1, 2008,
and before January 1, 2009.
  ' (4) Amounts added to federal taxable income for Oregon tax
purposes under subsections (1) to (3) of this section may
thereafter be subtracted from federal taxable income for Oregon
tax purposes in the tax year for which the amounts would have
been allowed as a deduction on the taxpayer's federal income tax
return under the Internal Revenue Code as amended and in effect
on December 31, 2008, and as applicable to tax years beginning on
or after January 1, 2008, and before January 1, 2009. + }
  '  { +  SECTION 40. + } ORS 316.752 is amended to read:
  ' 316.752. For purposes of ORS 316.752 to 316.771:
  ' (1) A person has a 'severe disability' if the person:
  ' (a) Has lost the use of one or more lower extremities;
  ' (b) Has lost the use of both hands;   { - or - }
  '  { +  (c) Is disabled as that term is defined in section
72(m)(7) of the Internal Revenue Code, to a degree that the
person is unable to engage in any substantial gainful activity;
or + }
  '  { - (c) - }   { + (d) + } Has a physical or mental condition
that limits the abilities of the person to earn a living,
maintain a household or provide personal transportation for the
person without employing orthopedic or medical equipment or
outside help.
  ' (2) 'Orthopedic or medical equipment' includes, but is not
limited to, wheelchairs, braces, prostheses or special crutches.
  ' (3) 'Outside help' includes, but is not limited to, unrelated
individuals whom the taxpayer with a severe disability employs to
keep house, maintain the house or yard, or to transport the
taxpayer.
  '  { +  SECTION 41. + } ORS 315.262 is amended to read:
  ' 315.262. (1) As used in this section:
  ' (a) 'Child care' means care provided to a qualifying child of
the taxpayer for the purpose of allowing the taxpayer to be
gainfully employed, to seek employment or to attend school on a
full-time or part-time basis, except that the term does not
include care provided by:
  ' (A) The child's parent or guardian, unless the care is
provided in a certified or registered child care facility; or
  ' (B) A person who has a relationship to the taxpayer that is
described in section 152(a) of the Internal Revenue Code who has
not yet attained 19 years of age at the close of the tax year.
  ' (b) 'Child care expenses' means the costs associated with
providing child care to a qualifying child of a qualified
taxpayer.
  ' (c) 'Disability' means a physical or cognitive condition that
results in a person requiring assistance with activities of daily
living.
  ' (d) 'Earned income' has the meaning given that term in
section 32 of the Internal Revenue Code.
  ' (e) 'Qualified taxpayer' means a taxpayer:
  ' (A) Who is an Oregon resident with at least $6,000 of earned
income for the tax year or who is a nonresident of Oregon with at
least $6,000 of earned income from Oregon sources for the tax
year;
  ' (B) With federal adjusted gross income for the tax year that
does not exceed 250 percent of the federal poverty level;
  ' (C) With Oregon adjusted gross income for the tax year that
does not exceed 250 percent of the federal poverty level; and
  ' (D) Who does not have more than the maximum amount of
disqualified income under section 32(i) of the Internal Revenue
Code that is allowed to a taxpayer entitled to the earned income
tax credit for federal tax purposes.
  ' (f) 'Qualifying child' has the meaning given that term in
section   { - 152 - }   { + 152(c) + } of the Internal Revenue
Code { + , determined without regard to section 152(c)(1)(D) of
the Internal Revenue Code or section 152(e) of the Internal
Revenue Code, + } except that it is limited to an individual who
is under 13 years of age, or who is a child with a disability, as
that term is defined in ORS 316.099.
  ' (2) A taxpayer is not disqualified from claiming the credit
under this section solely because the taxpayer's spouse has a
disability, if the disability is such that it prevents the
taxpayer's spouse from providing child care, being gainfully
employed, seeking employment and attending school. The Department
of Revenue may require that a physician verify the existence of
the disability and its severity.
  ' (3) A qualified taxpayer shall be allowed a credit against
the taxes otherwise due under ORS chapter 316 equal to the
applicable percentage of the qualified taxpayer's child care
expenses (rounded to the nearest $50).
  ' (4) The applicable percentage to be used in calculating the
amount of the credit provided in this section shall be determined
in accordance with the following table:
' _______________________________________________________________
 
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
Applicable Greater of Oregon
Percentage Adjusted Gross Income or
           Federal Adjusted
           Gross Income, as Percent
           of Federal Poverty Level
 
 
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
  40       200 or less
  36       Greater than 200 and less than
            or equal to 210
  32       Greater than 210 and less than
            or equal to 220
  24       Greater than 220 and less than
            or equal to 230
  16       Greater than 230 and less than
            or equal to 240
  8        Greater than 240 and less than
            or equal to 250
  0        Greater than 250 percent
            of federal poverty level
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
' _______________________________________________________________
  ' (5) The department may:
  ' (a) Adopt rules for carrying out the provisions of this
section; and
  ' (b) Prescribe the form used to claim a credit and the
information required on the form. The form may provide for
verification of an individual's disability by a physician, if
applicable, as described in subsection (2) of this section.
  ' (6) 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.
  ' (d) In the case of a qualified taxpayer who is married, a
credit shall be allowed under this section only if:
  ' (A) The taxpayer files a joint return;
  ' (B) The taxpayer files a separate return and is legally
separated or subject to a separate maintenance agreement; or
  ' (C) The taxpayer files a separate return and the taxpayer and
the taxpayer's spouse reside in separate households on the last
day of the tax year with the intent of remaining in separate
households in the future.
  ' (7) If the amount allowable as a credit under this section,
when added to the sum of the amounts allowable as payment of tax
under ORS 316.187 (withholding), ORS 316.583 (estimated tax),
other tax prepayment amounts and other refundable credit amounts,
exceeds the taxes imposed by ORS chapters 314 and 316 for the tax
year (reduced by any nonrefundable credits allowable for purposes
of ORS chapter 316 for the tax year), the amount of the excess
shall be refunded to the taxpayer as provided in ORS 316.502.
  ' (8)(a) The minimum amount of earned income a taxpayer must
earn in order to be a qualified taxpayer shall be adjusted for
tax years beginning in each calendar year by multiplying $6,000
by the ratio of the monthly averaged U.S. City Average Consumer
Price Index for the 12 consecutive months ending August 31 of the
prior calendar year over the monthly averaged index for the
second quarter of the calendar year 1998.
  ' (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 adjustment determined under paragraph (a) of this
subsection is not a multiple of $50, the adjustment shall be
rounded to the nearest multiple of $50.
  ' (d) Notwithstanding paragraphs (a) to (c) of this subsection,
the adjusted minimum amount of earned income a taxpayer must earn
may not exceed the amount an individual would earn if the
individual worked 1,040 hours at the minimum wage established
under ORS 653.025 and in effect on January 1 of the calendar year
in which begins the tax year of the taxpayer, rounded to the next
lower multiple of $50.
  '  { +  SECTION 42. + }  { + There shall be added to federal
taxable income for Oregon tax purposes the difference between the
amount allowable as a deduction under section 85 of the Internal
Revenue Code as applicable to the tax year of the taxpayer and
the amount allowable as a deduction under section 85 of the
Internal Revenue Code as amended and in effect on December 31,
2008, and as applicable to tax years beginning on or after
January 1, 2008, and before January 1, 2009. + }
  '  { +  SECTION 43. + }  { + (1) If House Bill 2649 becomes
law, section 42 of this 2009 Act is repealed.
  ' (2) If House Bill 2649 becomes law, section 5, chapter ___,
Oregon Laws 2009 (Enrolled House Bill 2649), is repealed. + }
  '  { +  SECTION 44. + } If House Bill 2649 becomes law, section
9, chapter ___, Oregon Laws 2009 (Enrolled House Bill 2649), is
amended to read:
  '  { +  Sec. 9. + }   { - Sections 5 and 8 of this 2009 Act
apply - }  { +  Section 8, chapter ___, Oregon Laws 2009
(Enrolled House Bill 2649) applies + } to tax years beginning on
or after January 1, 2009, and before January 1, 2010.
  '  { +  SECTION 45. + }  { + Sections 37, 39 and 42 of this
2009 Act, the amendments to statutes by sections 1 to 21, 23, 24,
26, 28 to 31, 33, 40 and 41 of this 2009 Act and the repeal of
section 5, chapter ___, Oregon Laws 2009 (Enrolled House Bill
2649), and section 42 of this 2009 Act by section 43 of this 2009
Act apply to tax years beginning on or after January 1, 2009. + }
  '  { +  SECTION 46. + }  { + The amendments to statutes by
sections 22, 25, 27, 32 and 34 of this 2009 Act apply to tax
years beginning on or after January 1, 2011. + }
  '  { +  SECTION 47. + } 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 each
of one or more alternative energy 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.
  ' (2)(a) 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 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 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 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.
  ' (C) Notwithstanding subparagraph (A) or (B) of this
paragraph, the total amount of the 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 category two
alternative energy device that is the basis for the credit.
  ' (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 category two alternative energy device.
  ' (3)(a) In the case of a credit for 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 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 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 the tenant of the owner or of the
contract purchaser and must:
  ' (A) Use the dwelling or dwellings served by the alternative
energy device 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 was purchased if the device is
operational by April 1 of the next following tax year.
  '  { +  (e) If the alternative fuel vehicle is a
gasoline-electric hybrid vehicle not designed for electric
plug-in charging, it must be purchased before January 1,
2010. + }
  ' (5) The credit provided by this section does not affect the
computation of basis under this chapter.
  ' (6) The 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) '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.
  ' (c) 'Taxpayer' includes a transferee of a verification form
under ORS 469.170 (8).
  ' (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 may not exceed the cost to the taxpayer for
the acquisition, construction and installation of the alternative
energy device.
  '  { +  SECTION 48. + } 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 certified cost of the facility does not exceed
$20,000, the total amount of the credit allowable under
subsection (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.
  ' (3) In order for a tax credit to be allowable under this
section:
  ' (a) The facility must be located in Oregon;
  ' (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)  { - . - }  { + ; and
  ' (d) If the alternative fuel vehicle is a gasoline-electric
hybrid vehicle not designed for electric plug-in charging, it
must be purchased before January 1, 2010. + }
  ' (4) 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 any other facility.
  ' (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).
  ' (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.
  ' (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.
  ' (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 49. + } ORS 315.141 is amended to read:
  ' 315.141. (1) As used in this section:
  ' (a) 'Agricultural producer' means a person that produces
biomass  { + in Oregon + } that is used { + , + } in
Oregon { + , + } as biofuel or to produce biofuel.
  ' (b) 'Biofuel' means liquid, gaseous or solid fuels { + , + }
derived from biomass { + , that have been converted into a
processed fuel ready for use as energy by a biofuel producer's
customers or for direct biomass energy use at the biofuel
producer's site + }.
  '  { +  (c) 'Biofuel producer' means a person that through
activities in Oregon:
  ' (A) Alters the physical makeup of biomass to convert it into
biofuel;
  ' (B) Changes one biofuel into another type of biofuel; or
  ' (C) Uses biomass in Oregon to produce energy. + }
  '  { - (c) - }   { + (d) + } 'Biomass' means organic matter
that is available on a renewable or recurring basis and that is
derived from:
  ' (A) Forest or rangeland woody debris from harvesting or
thinning conducted to improve forest or rangeland ecological
health and reduce uncharacteristic stand replacing wildfire risk;
  ' (B) Wood material from hardwood timber described in ORS
321.267 (3);
  ' (C) Agricultural residues;
  ' (D) Offal and tallow from animal rendering;
  ' (E) Food wastes collected as provided under ORS chapter 459
or 459A;
  ' (F) Yard or wood debris collected as provided under ORS
chapter 459 or 459A;
  ' (G) Wastewater solids; or
  ' (H) Crops grown solely to be used for energy.
  '  { - (d) - }   { + (e) + } 'Biomass' does not mean { +
 + }wood that has been treated with creosote, pentachlorophenol,
inorganic arsenic or other inorganic chemical compounds { +  or
waste, other than matter described in paragraph (d) of this
subsection + }.
  '  { - (e) - }   { + (f) + } 'Biomass collector' means a person
that collects biomass  { + in Oregon + } to be used { + , + } in
Oregon { + , + } as biofuel or to produce biofuel.
  '  { +  (2) The Director of the State Department of Energy may
adopt rules to define criteria, only as the criteria apply to
organic biomass, to determine additional characteristics of
biomass for purposes of this section. + }
  '  { - (2)(a) - }   { + (3)(a) + } An agricultural producer or
biomass collector shall be allowed a credit against the taxes
that would otherwise be due under ORS chapter 316 or, if the
taxpayer is a corporation, under ORS chapter 317 or 318 for:
  ' (A) The production of biomass  { + in Oregon + } that is
used { + ,  + }in Oregon { + , + } as biofuel or to produce
biofuel; or
  ' (B) The collection of biomass  { + in Oregon + } that is
used { + ,  + }in Oregon { + , + } as biofuel or to produce
biofuel.
  ' (b) A credit under this section may be claimed in the tax
year in which the   { - agricultural producer or biomass
collector transfers biomass to a biofuel producer - }  { +
credit is certified under subsection (5) of this section + }.
  '  { +  (c) A taxpayer may be allowed a credit under this
section for more than one of the roles defined in subsection (1)
of this section, but a biofuel producer that is not also an
agricultural producer or a biomass collector may not claim a
credit under this section. + }
  '  { - (c) - }   { + (d) + } Notwithstanding paragraph (a) of
this subsection, a tax credit is not allowed for grain corn, but
a tax credit shall be allowed for other corn material.
  '  { - (3) The amount of the credit shall be calculated as
follows: - }
  '  { - (a) Determine the quantity of biomass transferred to a
biofuel producer during the tax year; - }
  '  { - (b) Categorize the biomass into appropriate categories;
and - }
  '  { - (c) Multiply the quantity of biomass in a particular
category by the appropriate credit rate for that category,
expressed in dollars and cents, that is prescribed in ORS
469.790. - }
  '  { +  (4) The amount of the credit shall equal the amount
certified under subsection (5) of this section.
  ' (5)(a) The State Department of Energy may establish by rule
procedures and criteria for determining the amount of the tax
credit to be certified under this section, consistent with ORS
469.790. The department shall provide written certification to
taxpayers that are eligible to claim the credit under this
section.
  ' (b) The State Department of Energy may charge and collect a
fee from taxpayers for certification of credits under this
section. The fee may not exceed the cost to the department of
determining the amount of certified cost.
  ' (c) The State Department of Energy shall provide to the
Department of Revenue a list, by tax year, of taxpayers for which
a credit is certified under this section, upon request of the
Department of Revenue. + }
  '  { - (4) - }   { + (6) + } The amount of the credit claimed
under this section for any tax year may not exceed the tax
liability of the taxpayer.
  '  { - (5)(a) A biofuel producer shall provide a written
receipt to an agricultural producer or biomass collector at the
time biomass is transferred from the agricultural producer or
biomass collector to the biofuel producer. The receipt must state
the quantity and type of biomass being transferred and that the
biomass is to be used to produce biofuel. - }
  '  { - (b) - }   { + (7) + } Each agricultural producer or
biomass collector shall maintain the   { - receipts described in
this subsection - }   { + written documentation of the amount
certified for tax credit under this section + } in
 { - their - }   { + its + } records for a period of at least
five years after the tax year in which the credit is claimed
 { - or for a longer period of time prescribed by the Department
of Revenue - }  { +  and provide the written documentation to the
Department of Revenue upon request + }.
  '  { - (6) - }   { + (8) + } The credit shall be claimed on a
form prescribed by the Department of Revenue that contains the
information required by the department.
  '  { - (7) - }   { + (9) + } 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,
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.
  '  { - (8) - }   { + (10) + } 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 the 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 the taxpayer occurs as
described in ORS 314.085, or if the department 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.
  '  { +  SECTION 50. + } ORS 315.144 is amended to read:
  ' 315.144. (1) A person that has obtained a tax credit under
ORS 315.141 may transfer the credit   { - for consideration - }
to a taxpayer subject to tax under ORS chapter 316, 317 or 318.
  '  { +  (2) A tax credit allowed under ORS 315.141 may be
transferred on or before the date on which the return is due for
the tax year in which the credit may first be claimed. After that
date, no portion of a credit allowed under ORS 315.141 may be
transferred. + }
  '  { - (2) - }   { + (3) + } To transfer the tax credit, the
taxpayer earning the credit and the taxpayer that will claim the
credit shall { + , on or before the date prescribed in subsection
(2) of this section, + } jointly file a notice of tax credit
transfer with the Department of Revenue. The notice shall be
given on a form prescribed by the department that contains all of
the following:
  ' (a) The name  { - , - }   { + and + } address   { - and
taxpayer identification number - }  of the transferor and
transferee;
  ' (b) The amount of the tax credit { +  that is being
transferred + };
  { - and - }
  '  { +  (c) The amount of the tax credit that is being retained
by the transferor; and + }
  '  { - (c) - }   { + (d) + } Any other information required by
the department.
  '  { - (3) Notwithstanding subsection (1) of this section, a
tax credit may not be transferred under this section: - }
  '  { - (a) From an agricultural producer to a biomass collector
claiming a credit for collecting the biomass; or - }
  '  { - (b) From a biomass collector to an agricultural producer
claiming a credit for producing the biomass. - }
  '  { +  (4) The State Department of Energy may establish by
rule a minimum discounted value of a tax credit under this
section.
  ' (5) The Department of Revenue, in consultation with the State
Department of Energy, may by rule establish procedures for the
transfer of tax credits provided by this section. + }
  '  { +  SECTION 51. + }  { +  The amendments to ORS 315.141,
315.144, 315.354 and 316.116 by sections 47 to 50 of this 2009
Act apply to tax years beginning on or after January 1, 2010. + }
' .
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