75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 598
A-Engrossed
House Bill 2180
Ordered by the House April 16
Including House Amendments dated April 16
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for State Department of Energy)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
{ - Establishes Oregon Renewable Energy Grant Account and
allows credit against income taxes for contributions to account.
Authorizes State Department of Energy to award grants for
renewable energy projects. - }
Modifies business energy tax credit to include { - certain
recycling facilities - } { + industrial process energy
facilities + }. Allows taxpayer to claim residential energy tax
credit for hydroelectric generating system. { + Creates specific
tax credit for purchasers of plug-in hybrid electric vehicles and
related equipment. Directs Director of State Department of Energy
to adopt rules relating to tax credits for certain energy saving
devices. + }
Modifies provisions for claiming biomass tax credit. Limits
eligibility to biofuels that have been converted into fuels ready
for use as energy in Oregon. Revises biomass credit transfer
provisions. Allows credit where biofuel producer is also
agricultural producer or biomass collector. { + Authorizes State
Department of Energy to adopt rules relating to tax credits for
production of biomass. + }
Applies to tax years beginning on or after January 1, 2010.
A BILL FOR AN ACT
Relating to energy; creating new provisions; and amending ORS
315.141, 315.144, 315.354, 316.116, 317.115, 469.160, 469.165,
469.185, 469.197 and 469.205.
Be It Enacted by the People of the State of Oregon:
SECTION 1. 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).
(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 { + or an industrial process
energy 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 2. ORS 469.160 is amended to read:
469.160. As used in ORS 316.116, 317.115 and 469.160 to
469.180:
(1) 'Alternative energy device' means a category one
alternative energy device or a category two alternative energy
device.
(2) 'Alternative fuel device' means any of the following:
(a) An alternative fuel vehicle;
(b) Related equipment; or
(c) A fueling station necessary to operate an alternative fuel
vehicle.
(3) 'Alternative fuel vehicle' means a motor vehicle as defined
in ORS 801.360 that is:
(a) Registered in this state; and
{ + (b)(A) Is a plug-in hybrid electric vehicle; or + }
{ - (b) - } { + (B) Is + } manufactured or modified to use
an alternative fuel, including but not limited to electricity,
natural gas, ethanol, methanol, propane and any other fuel
approved in rules adopted by the Director of the State Department
of Energy that produces less exhaust emissions than vehicles
fueled by gasoline or diesel. { - Determination that a vehicle
is an alternative fuel vehicle shall be made without regard to
energy consumption savings. - }
(4) 'Category one alternative energy device' means:
(a) Any system, mechanism or series of mechanisms that uses
solar radiation for space heating or cooling for one or more
dwellings;
(b) Any system that uses solar radiation for:
(A) Domestic water heating; or
(B) Swimming pool, spa or hot tub heating and that meets the
requirements set forth in ORS 316.116;
(c) A ground water heat pump and ground loop system;
(d) Any wind powered device used to offset or supplement the
use of electricity by performing a specific task such as pumping
water;
(e) Equipment used in the production of alternative fuels;
(f) A generator powered by alternative fuels and used to
produce electricity;
(g) An energy efficient appliance;
(h) An alternative fuel device; or
(i) A premium efficiency biomass combustion device that
includes a dedicated outside combustion air source and that meets
minimum performance standards that are established by the State
Department of Energy.
(5) 'Category two alternative energy device' means a fuel cell
system, { + hydroelectric generating system, + } solar electric
system or wind electric system.
(6) 'Coefficient of performance' means the ratio calculated by
dividing the usable output energy by the electrical input energy.
Both energy values must be expressed in equivalent units.
(7) 'Contractor' means a person whose trade or business
consists of offering for sale an alternative energy device,
construction service, installation service or design service.
(8)(a) 'Cost' means the actual cost of the acquisition,
construction and installation of the alternative energy device
paid by the taxpayer for the alternative energy device.
(b) For an alternative fuel vehicle, 'cost' means the
difference between the cost of the alternative fuel vehicle and
the same vehicle or functionally similar vehicle manufactured to
use conventional gasoline or diesel fuel or, in the case of
modification of an existing vehicle, the cost of the
modification. ' Cost' does not include any amounts paid for
remodification of the same vehicle { + , unless the added
efficiency or capacity meets requirements established by the
Director of the State Department of Energy + }.
(c) For a fueling station necessary to operate an alternative
fuel vehicle, 'cost' means the cost to the contractor of
constructing or installing the fueling station in a dwelling and
of making the { - fuel - } { + fueling + } station
operational in accordance with the specifications issued under
ORS 469.160 to 469.180 and any rules adopted by the Director of
the State Department of Energy.
(d) For related equipment, 'cost' means the cost of the related
equipment and any modifications or additions to the related
equipment necessary to prepare the related equipment for use in
converting a vehicle to alternative fuel use.
(9) 'Domestic water heating' means the heating of water used in
a dwelling for bathing, clothes washing, dishwashing and other
related functions.
(10) 'Dwelling' means real or personal property ordinarily
inhabited as a principal or secondary residence and located
within this state. 'Dwelling' includes, but is not limited to, an
individual unit within multiple unit residential housing.
(11) 'Energy efficient appliance' means a clothes washer,
clothes dryer, water heater, refrigerator, freezer, dishwasher,
appliance designed to heat or cool a dwelling or other major
household appliance that has been certified by the State
Department of Energy to have premium energy efficiency
characteristics.
(12) 'First year energy yield' of an alternative energy device
is the usable energy produced under average environmental
conditions in one year.
(13) 'Fuel cell system' means any system, mechanism or series
of mechanisms that uses fuel cells or fuel cell technology to
generate electrical energy for a dwelling.
(14) 'Fueling station' includes but is not limited to a
compressed natural gas compressor fueling system or an electric
charging system for vehicle power battery charging.
{ + (15) 'Hydroelectric generating system' means a system
that obtains all applicable permits and complies with all state
and federal statutory requirements for the protection of fish and
wildlife and does not exceed 10 megawatts of installed
capacity. + }
{ - (15) - } { + (16) + } 'Placed in service' means:
(a) The date an alternative energy device is ready and
available to produce usable energy or save energy.
(b) For an alternative fuel vehicle:
(A) In the case of purchase, the date that the alternative fuel
vehicle is first purchased as an alternative fuel vehicle ready
and available for use.
(B) In the case of modification, the date that the modification
is completed and the vehicle is ready and available for use as an
alternative fuel vehicle.
(c) For a fueling station necessary to operate an alternative
fuel vehicle, the date that the fueling station is first
operational.
(d) For related equipment, the date that the equipment is first
operational.
{ - (16) - } { + (17) + } 'Related equipment' means
equipment necessary to convert a vehicle to use an alternative
fuel.
{ - (17) - } { + (18) + } 'Solar electric system' means any
system, mechanism or series of mechanisms, including photovoltaic
systems, that uses solar radiation to generate electrical energy
for a dwelling.
{ - (18) - } { + (19) + } 'Wind electric system' means any
system, mechanism or series of mechanisms that uses wind to
generate electrical energy for a dwelling.
SECTION 3. ORS 469.185 is amended to read:
469.185. As used in ORS 469.185 to 469.225 and 469.878:
(1) 'Alternative fuel vehicle' means a vehicle as defined by
the Director of the State Department of Energy by rule that is
used primarily in connection with the conduct of a trade or
business and that { + : + }
{ + (a)(A) + } Is manufactured or modified to use an
alternative fuel, including but not limited to electricity,
ethanol, methanol, gasohol and propane or natural gas { - ,
regardless of energy consumption savings. - } { + ; and
(B) Produces less exhaust emissions than vehicles fueled by
gasoline or diesel; or
(b) Is a plug-in hybrid electric vehicle, as defined by the
director by rule. + }
(2) 'Car sharing facility' means the expenses of operating a
car sharing program, including but not limited to the fair market
value of parking spaces used to store the fleet of cars available
for a car sharing program, but does not include the costs of the
fleet of cars.
(3) 'Car sharing program' means a program in which drivers pay
to become members in order to have joint access to a fleet of
cars from a common parking area on an hourly basis. 'Car sharing
program' does not include operations conducted by car rental
agencies.
(4) 'Cost' means the capital costs and expenses necessarily
incurred in the acquisition, erection, construction and
installation of a facility, including site development costs and
expenses for a sustainable building practices facility.
(5) 'Energy facility' means any capital investment for which
the first year energy savings yields a simple payback period of
greater than one year. An energy facility includes:
(a) Any { - land, - } structure, building, installation,
excavation, machinery, equipment or device, or any addition to,
reconstruction of or improvement of, { - land or - } an
existing structure, building, installation, excavation,
machinery, equipment or device necessarily acquired, erected,
constructed or installed by any person in connection with the
conduct of a trade or business and actually used in the
processing or utilization of renewable energy resources to:
(A) Replace a substantial part or all of an existing use of
electricity, petroleum or natural gas;
(B) Provide the initial use of energy where electricity,
petroleum or natural gas would have been used;
(C) Generate electricity to replace an existing source of
electricity or to provide a new source of electricity for sale by
or use in the trade or business;
(D) Perform a process that obtains energy resources from
material that would otherwise be solid waste as defined in ORS
459.005; or
(E) Manufacture or distribute alternative fuels, including but
not limited to electricity, ethanol, methanol, gasohol or
biodiesel.
(b) Any acquisition of, addition to, reconstruction of or
improvement of { - land or - } an existing structure,
building, installation, excavation, machinery, equipment or
device necessarily acquired, erected, constructed or installed by
any person in connection with the conduct of a trade or business
in order to substantially reduce the consumption of purchased
energy.
(c) A necessary feature of a new commercial building or
multiple unit dwelling, as dwelling is defined by ORS 469.160,
that causes that building or dwelling to exceed an energy
performance standard in the state building code.
(d) The replacement of an electric motor with another electric
motor that substantially reduces the consumption of electricity.
(6) 'Facility' means an energy facility, recycling facility,
transportation facility, car sharing facility, sustainable
building practices facility, alternative fuel vehicle or
facilities necessary to operate alternative fuel vehicles,
including but not limited to an alternative fuel vehicle
refueling station, a high-efficiency combined heat and power
facility, a high-performance home, a homebuilder-installed
renewable energy system, or a renewable energy resource equipment
manufacturing facility.
(7) 'High-efficiency combined heat and power facility ' means a
device or equipment that simultaneously produces heat and
electricity from a single source of fuel and that meets the
criteria established for a high-efficiency combined heat and
power facility under ORS 469.197.
(8) 'High-performance home' means a new single-family dwelling
that:
(a) Is designed and constructed to reduce net purchased energy
through use of both energy efficiency and on-site renewable
energy resources; and
(b) Meets the criteria established for a high-performance home
under ORS 469.197.
(9) 'Homebuilder-installed renewable energy system' means a
renewable energy resource system that:
(a) Meets the criteria established for a renewable energy
resource system under ORS 469.197; and
(b) Is installed in a new single-family dwelling by, or at the
direction of, the homebuilder constructing the dwelling.
{ + (10) 'Industrial process energy facility' means an energy
facility that improves the energy efficiency of a manufacturing
process. 'Industrial process energy facility' does not include
general heating, cooling, ventilation or lighting. + }
{ - (10) - } { + (11) + } 'Qualified transit pass contract'
means a purchase agreement entered into between a transportation
provider and a person, the terms of which obligate the person to
purchase transit passes on behalf or for the benefit of
employees, students, patients or other individuals over a
specified period of time.
{ - (11) - } { + (12) + } 'Recycling facility' means
equipment used by a trade or business solely for recycling { + ,
including + }:
{ - (a) Including: - }
{ - (A) - } { + (a) + } Equipment used solely for hauling
and refining used oil;
{ - (B) - } { + (b) + } New vehicles or modifications to
existing vehicles used solely to transport used recyclable
materials that cannot be used further in their present form or
location such as glass, metal, paper, aluminum, rubber and
plastic;
{ - (C) - } { + (c) + } Trailers, racks or bins that are
used for hauling used recyclable materials and are added to or
attached to existing waste collection vehicles; { - and - }
{ - (D) - } { + (d) + } Any equipment used solely for
processing recyclable materials such as bailers, flatteners,
crushers, separators and scales { - . - } { + ; and + }
{ - (b) - } { + (e) + } { - But not including - }
Equipment used for transporting or processing scrap materials
that are recycled as a part of the normal operation of a trade or
business as defined by the director.
{ - (12)(a) - } { + (13)(a) + } 'Renewable energy resource'
includes, but is not limited to:
(A) Straw, forest slash, wood waste or other wastes from farm
or forest land, nonpetroleum plant or animal based biomass, ocean
wave energy, solar energy, wind power, water power or geothermal
energy; or
(B) A hydroelectric generating facility that obtains all
applicable permits and complies with all state and federal
statutory requirements for the protection of fish and wildlife
and:
(i) That does not exceed 10 megawatts of installed capacity; or
(ii) Qualifies as a research, development or demonstration
facility.
(b) 'Renewable energy resource' does not include a
hydroelectric generating facility that is not described in
paragraph (a) of this subsection.
{ - (13) - } { + (14) + } 'Renewable energy resource
equipment manufacturing facility' means any structure, building,
installation, excavation, machinery, equipment or device, or an
addition, reconstruction or improvement to { - land or - } an
existing structure, building, installation, excavation,
machinery, equipment or device, that is necessarily acquired,
constructed or installed by a person in connection with the
conduct of a trade or business, that is used primarily to
manufacture equipment, machinery or other products designed to
use a renewable energy resource and that meets the criteria
established under ORS 469.197.
{ - (14) - } { + (15) + } 'Sustainable building practices
facility' means a commercial building in which building practices
that reduce the amount of energy, water or other resources needed
for construction and operation of the building are used.
'Sustainable building practices facility' may be further defined
by the State Department of Energy by rule, including rules that
establish traditional building practice baselines in energy,
water or other resource usage for comparative purposes for use in
determining whether a facility is a sustainable building
practices facility.
{ - (15) - } { + (16) + } 'Transportation facility' means a
transportation project that reduces energy use during commuting
to and from work or school, during work-related travel, or during
travel to obtain medical or other services, and may be further
defined by the department by rule. 'Transportation facility '
includes, but is not limited to, a qualified transit pass
contract or a transportation services contract.
{ - (16) - } { + (17) + } 'Transportation provider' means a
public, private or nonprofit entity that provides transportation
services to members of the public.
{ - (17) - } { + (18) + } 'Transportation services
contract' means a contract that is related to a transportation
facility, and may be further defined by the department by rule.
SECTION 4. 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 { + urban
waste or + }wood that has been treated with creosote,
pentachlorophenol, inorganic arsenic or other inorganic chemical
compounds.
{ - (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 to determine additional
characteristics of biomass as defined in subsection (1)(d) and
(e) 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 5. 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 uniform discount rate to be used in calculating the present
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 6. 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 { + that is not a plug-in
hybrid electric vehicle or related equipment + }, the credit
allowed under this section is 25 percent of the cost of the
alternative fuel device { + , as determined by the Director of
the State Department of Energy by rule, + } but the total credit
shall not exceed $750 if the device is placed in service on or
after January 1, 1998.
{ + (e) For each alternative fuel device that is a plug-in
hybrid electric vehicle or related equipment, the costs for which
a credit is allowed under this section shall be determined by the
director by rule. The total credit allowed for a plug-in hybrid
electric vehicle may not exceed $5,000. + }
{ - (e)(A) - } { + (f)(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.
(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 7. ORS 317.115 is amended to read:
317.115. (1) A business tax credit is allowed against the taxes
otherwise due under this chapter based upon costs paid or
incurred for construction or installation in a dwelling of a
fueling station necessary to operate an alternative fuel vehicle.
The credit is allowed to the contractor who constructs the
dwelling in which the fueling station is incorporated or installs
the fueling station in the dwelling but may be taken by any
person under the circumstances described in ORS 469.170 (9) and
the rules adopted thereunder.
(2) { + (a) + } The credit { + allowed for a fueling station
necessary to operate an alternative fuel vehicle that is not a
plug-in hybrid electric vehicle + }is 25 percent of the cost of
the fueling station but the total credit { - shall - }
{ + may + } not exceed $750 if the fueling station is placed in
service on or after January 1, 1998.
{ + (b) For a fueling station necessary to operate a plug-in
hybrid electric vehicle and for associated equipment, the amount
of the credit allowable under this section shall be determined by
the Director of the State Department of Energy by rule, but the
total credit for a fueling station necessary to operate a plug-in
hybrid electric vehicle and for associated equipment may not
exceed $5,000. + }
(3) To qualify for a credit under this section, all of the
following are required:
(a) The fueling station must be constructed, installed and
operated in accordance with ORS 469.160 to 469.180 and a
certificate issued thereunder.
(b) The contractor must present with the claim for credit a
verification form signed not only by the contractor but by the
owner, contract purchaser or tenant authorizing the contractor to
claim the credit and indicating that the owner, contract
purchaser or tenant will not claim a credit based upon the cost
of the same fueling station under ORS 316.116 or this section.
(c) The credit must be claimed for the tax year in which the
fueling station that has been certified under ORS 469.160 to
469.180 first is placed in service or the immediately succeeding
tax year.
(4) The credit allowed under this section shall not affect the
computation of basis for purposes of this chapter, nor shall the
credit affect the computation or be in lieu of any depreciation
deduction for the fueling station.
(5) The credit allowed under this section in any one year shall
not exceed the tax liability of the taxpayer for that year.
(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 such
next succeeding tax year may be carried forward and used in the
second succeeding tax year, and likewise any credit not used in
that second succeeding tax year may be carried forward and used
in the third succeeding tax year, and any credit not used in that
third succeeding tax year may be carried forward and used in the
fourth succeeding tax year, 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.
(7) The certificate and verification form described under ORS
469.170 may be transferred by the contractor to the first
purchaser of the dwelling that incorporates the fueling station
if the purchaser intends to use the dwelling as a principal or
secondary residence or, in the case of construction or
installation of a fueling station in an existing dwelling, the
current owner, if the current owner intends to use, or uses, the
dwelling as a principal or secondary residence. A certificate and
verification form so transferred may be used by the purchaser to
claim a credit under ORS 316.116.
SECTION 8. ORS 469.165 is amended to read:
469.165. (1) For the purposes of carrying out ORS 469.160 to
469.180, the State Department of Energy may adopt rules
prescribing minimum performance criteria for alternative energy
devices for dwellings.
(2) The department, in adopting rules under this section for
solar heating and cooling systems, shall take into consideration
applicable standards of federal performance criteria prescribed
pursuant to the provisions of section 5506, title 42, United
States Code (Solar Heating and Cooling { + Demonstration + } Act
of 1974).
(3) The Director of the State Department of Energy shall adopt
rules governing the determination of eligibility, verification
and certification of an alternative fuel device for purposes of
the tax credits granted under ORS 316.116 and 317.115, including
but not limited to rules that { + :
(a) + } Further define an alternative fuel vehicle,
{ + plug-in hybrid electric vehicle, + } related equipment or
fueling station necessary to operate an alternative fuel vehicle
{ - , that - } { + ;
(b) + } Govern { - the computation of - } costs eligible for
credit
{ - and that - } { + , including maximum allowable costs and
computation of costs; and
(c) + } Require equitable allocation of the tax credit benefits
between the lessor and the lessee of an alternative fuel vehicle
as a condition of tax credit eligibility.
{ + (4) Determination that a vehicle is an alternative fuel
vehicle shall be made by the director based on consideration of
petroleum use reduction, efficiency, market acceptance,
greenhouse gas emissions reduction and technology. + }
SECTION 9. ORS 469.197, as amended by section 1, chapter 29,
Oregon Laws 2008, is amended to read:
469.197. The State Department of Energy shall by rule establish
all of the following criteria:
(1) For a high-performance home, the minimum design and
construction standards that must be met or exceeded for a
dwelling to be considered a high-performance home, including but
not limited to standards for the building envelope, HVAC systems,
lighting, appliances, water conservation measures, use of
sustainable building materials and on-site renewable energy
systems. The criteria must also establish the minimum reduction
in estimated net purchased energy that a dwelling must achieve to
be considered a high-performance home.
(2) For a homebuilder-installed renewable energy system, the
minimum performance and efficiency standards that a solar
electric system, solar domestic water heating system, passive
solar space heating system, wind power system, geothermal heating
system, fuel cell system or other system utilizing renewable
resources must achieve to be considered a homebuilder-installed
renewable energy system.
(3) For a high-efficiency combined heat and power facility, the
minimum performance and efficiency standards that the facility
must achieve to be considered a high-efficiency combined heat and
power facility.
(4) For a renewable energy resource equipment manufacturing
facility:
(a) Standards relating to the type of equipment, machinery or
other products being manufactured and related performance and
efficiency standards applicable to the manufactured products;
(b) Standards, consistent with the definitions in ORS 469.185,
relating to what constitutes a single renewable energy resource
equipment manufacturing facility and what constitutes property
that is not included within a renewable energy resource equipment
manufacturing facility;
(c) Standards relating to the minimum level of increased
employment in Oregon for a renewable energy resource equipment
manufacturing facility;
(d) Standards relating to indicators of financial viability of
an applicant for preliminary certification under ORS 469.205;
(e) Standards relating to the likelihood of long-term success
of a renewable energy resource equipment manufacturing facility;
and
(f) Standards relating to the likelihood that an applicant
seeking preliminary certification of a renewable energy resource
equipment manufacturing facility will base decisions to locate or
expand a facility in Oregon on the allowance of a tax credit
under ORS 315.354.
{ + (5) For an alternative fuel vehicle, the Director of the
State Department of Energy shall adopt rules governing the
determination of eligibility, verification, maximum eligible
costs and certification for purposes of the tax credits allowed
under ORS 315.354, including rules that further define
alternative fuel vehicle, plug-in hybrid electric vehicle,
related equipment and fueling station or charging station
necessary to operate an alternative fuel vehicle and rules
related to levels of petroleum use reduction, efficiency, market
acceptance, greenhouse gas emissions reduction and technology
that a vehicle must achieve to be considered an alternative fuel
vehicle. + }
SECTION 10. ORS 469.205, as amended by section 3, chapter 29,
Oregon Laws 2008, is amended to read:
469.205. (1) Prior to erection, construction, installation or
acquisition of a proposed facility, any person may apply to the
State Department of Energy for preliminary certification under
ORS 469.210 if:
(a) The erection, construction, installation or acquisition of
the facility is to be commenced on or after October 3, 1979;
(b) The facility complies with the standards or rules adopted
by the Director of the State Department of Energy; and
(c) The applicant meets one of the following criteria:
(A) The applicant is a person to whom a tax credit has been
transferred; or
(B) The applicant will be the owner or contract purchaser of
the facility at the time of erection, construction, installation
or acquisition of the proposed facility, and:
(i) The applicant is the owner, contract purchaser or lessee of
a trade or business that plans to utilize the facility in
connection with Oregon property; or
(ii) The applicant is the owner, contract purchaser or lessee
of a trade or business that plans to lease the facility to a
person who will utilize the facility in connection with Oregon
property.
(2) An application for preliminary certification shall be made
in writing on a form prepared by the department and shall
contain:
(a) A statement that the applicant or the lessee of the
applicant's facility:
(A) Intends to convert from a purchased energy source to a
renewable energy resource;
(B) Plans to acquire, construct or install a facility that will
use a renewable energy resource or solid waste instead of
electricity, petroleum or natural gas;
(C) Plans to use a renewable energy resource in the generation
of electricity for sale or to replace an existing or proposed use
of an existing source of electricity;
(D) Plans to acquire, construct or install a facility that
substantially reduces the consumption of purchased energy;
(E) Plans to acquire, construct or install equipment for
recycling as defined in ORS 469.185 { - (11) - } ;
(F) Plans to acquire an alternative fuel vehicle or to convert
an existing vehicle to an alternative fuel vehicle;
(G) Plans to acquire, construct or install a facility necessary
to operate alternative fuel vehicles;
(H) Plans to acquire transit passes for use by individuals
specified by the applicant;
(I) Plans to acquire, construct or install a transportation
facility;
(J) Plans to acquire a sustainable building practices facility;
(K) Plans to acquire a car sharing facility and operate a car
sharing program;
(L) Plans to construct a high-efficiency combined heat and
power facility;
(M) Is a homebuilder and plans to construct a
homebuilder-installed renewable energy system;
(N) Is a homebuilder and plans to construct a high-performance
home; or
(O) Plans to acquire, construct or install a renewable energy
resource equipment manufacturing facility.
(b) A detailed description of the proposed facility and its
operation and information showing that the facility will operate
as represented in the application.
(c) Information on the amount by which consumption of
electricity, petroleum or natural gas by the applicant or the
lessee of the applicant's facility will be reduced, and on the
amount of energy that will be produced for sale, as the result of
using the facility or, if applicable, information about the
expected level of sustainable building practices facility
performance.
(d) The projected cost of the facility.
(e) If applicable, a copy of the proposed qualified transit
pass contract, transportation services contract or contract for
lease of parking spaces for a car sharing facility.
(f) Any other information the director considers necessary to
determine whether the proposed facility is in accordance with the
provisions of ORS 469.185 to 469.225, and any applicable rules or
standards adopted by the director.
(3) An application for preliminary certification shall be
accompanied by a fee established under ORS 469.217. The director
may refund the fee if the application for certification is
rejected.
(4) The director may allow an applicant to file the preliminary
application after the start of erection, construction,
installation or acquisition of the facility if the director
finds:
(a) Filing the application before the start of erection,
construction, installation or acquisition is inappropriate
because special circumstances render filing earlier unreasonable;
and
(b) The facility would otherwise qualify for tax credit
certification pursuant to ORS 469.185 to 469.225.
(5) A preliminary certification of a sustainable building
practices facility shall be applied for and issued as prescribed
by the department by rule.
(6) A preliminary certification of a renewable energy resource
equipment manufacturing facility shall remain valid for a period
of five calendar years after the date the preliminary
certification is issued by the director.
SECTION 11. { + The amendments to ORS 315.141, 315.144,
315.354, 316.116, 317.115, 469.160, 469.165, 469.185, 469.197 and
469.205 by sections 1 to 10 of this 2009 Act apply to tax years
beginning on or after January 1, 2010. + }
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