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
B-Engrossed
House Bill 2180
Ordered by the House June 8
Including House Amendments dated April 16 and June 8
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.
{ - Modifies business energy tax credit to include 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. - }
{ + Limits tax credits for gasoline-electric hybrid vehicles
that are not designed for electric plug-in charging to vehicles
purchased before January 1, 2010.
Modifies definition of 'renewable energy resource equipment
manufacturing facility' for purposes related to receipt of tax
credit. + }
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 and 469.185.
Be It Enacted by the People of the State of Oregon:
SECTION 1. 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 2. 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 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 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.
(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) '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) 'Recycling facility' means equipment used by a trade or
business solely for recycling:
(a) Including:
(A) Equipment used solely for hauling and refining used oil;
(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) 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) Any equipment used solely for processing recyclable
materials such as balers, flatteners, crushers, separators and
scales.
(b) 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) '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) '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 { + :
(a) + } Equipment, machinery or other products designed to use
a renewable energy resource and that meets the criteria
established under ORS 469.197 { - . - } { + ; or
(b) Electric vehicles designed for use as modes of
transportation on public roads and highways or component parts of
electric vehicles, but not including component parts that may be
used in both electric and conventional vehicles. + }
(14) '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) '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) 'Transportation provider' means a public, private or
nonprofit entity that provides transportation services to members
of the public.
(17) '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 { +
+ }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 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 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 6. { + The amendments to ORS 315.141, 315.144,
315.354, 316.116 and 469.185 by sections 1 to 5 of this 2009 Act
apply to tax years beginning on or after January 1, 2010. + }
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