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
House Bill 2180
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for State Department of Energy)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
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. Allows taxpayer to claim residential energy
tax credit for hydroelectric generating system.
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.
Applies to tax years beginning on or after January 1, 2010.
A BILL FOR AN ACT
Relating to energy; creating new provisions; amending ORS
315.141, 315.144, 315.354, 469.160 and 469.185; and
appropriating money.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2009 Act is added to and made
a part of ORS chapter 315. + }
SECTION 2. { + (1) A taxpayer shall be allowed a credit
against the taxes otherwise due under ORS chapter 316 for amounts
contributed during the tax year to the Oregon Renewable Energy
Grant Account established under section 4 of this 2009 Act.
(2) A taxpayer that is a corporation shall be allowed a credit
against the taxes otherwise due under ORS chapter 317 or 318 for
amounts contributed during the tax year to the Oregon Renewable
Energy Grant Account established under section 4 of this 2009
Act.
(3) The amount of the credit shall equal 100 percent of the
amount contributed to the Oregon Renewable Energy Grant Account,
but may not exceed the lesser of the tax liability of the:
(a) Taxpayer under ORS chapter 316 for the tax year or $250.
(b) Taxpayer that is a corporation under ORS chapter 317 or 318
for the tax year or $1,250.
(4) The credit allowed under this section may not be carried
over to another tax year.
(5) The credit allowed under this section is in addition to any
charitable contribution deduction allowable to the taxpayer.
(6) In the case of a credit allowed under this section for
purposes of ORS chapter 316:
(a) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
(b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed under this section shall be determined in a manner
consistent with ORS 316.117.
(c) 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.
(d) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed under this section shall be prorated or computed
in a manner consistent with ORS 314.085. + }
SECTION 3. { + Section 4 of this 2009 Act is added to and made
a part of ORS chapter 469. + }
SECTION 4. { + (1) The Oregon Renewable Energy Grant Account
is established in the State Treasury, separate and distinct from
the General Fund. Interest earned by the Oregon Renewable Energy
Grant Account shall be credited to the account. The primary
purpose of the account is to provide grants for the development
of community-scale renewable energy resource projects in Oregon.
(2) All moneys in the Oregon Renewable Energy Grant Account are
appropriated continuously to the State Department of Energy for
the purposes of section 5 of this 2009 Act. + }
SECTION 5. { + (1) The State Department of Energy shall award
grants from the Oregon Renewable Energy Grant Account established
under section 4 of this 2009 Act to fund renewable energy
projects in Oregon. The total amount awarded by the department in
a calendar year may not exceed $1 million.
(2) The grants authorized under this section:
(a) Shall fund renewable energy facilities of less that ten
megawatts or comparably sized heat and fuel generation projects;
and
(b) Shall require applicants to provide matching funds.
(3) The department shall by rule establish criteria for the
awarding of grants under this section. The department may give
preference to:
(a) Public bodies, tribal governments and nonprofit
organizations;
(b) Community-based renewable energy facilities;
(c) Renewable energy facilities likely to benefit rental or
low-income housing developments;
(d) Projects intended to test, demonstrate or develop
innovative renewable energy equipment manufacturing processes or
innovative renewable energy products intended for manufacture in
Oregon by firms based in Oregon;
(e) Projects for communities with demonstrated need, such as
rural or economically distressed communities;
(f) Projects that have received feasibility study funding from
the department; and
(g) Projects that are unlikely to proceed without funding under
this section.
(4) Any amount received under this section shall be subtracted
when determining certified costs under ORS 469.185 to
469.225. + }
SECTION 6. 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 a recycling
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 7. 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) 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 - }
{ + by the director based on a consideration of petroleum
reduction, efficiency, greenhouse gas reduction and
technology + }.
(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 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 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 8. 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 { + 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) '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 equipment, machinery or
other products designed to use a renewable energy resource and
that meets the criteria established under ORS 469.197.
(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 9. ORS 315.141 is amended to read:
315.141. (1) As used in this section:
(a) 'Agricultural producer' means a person that produces
biomass 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) '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) 'Biomass' does not mean wood that has been treated with
creosote, pentachlorophenol, inorganic arsenic or other inorganic
chemical compounds.
(e) 'Biomass collector' means a person that collects biomass to
be used in Oregon as biofuel or to produce biofuel.
(2)(a) An agricultural producer { - or - } { + , a + }
biomass collector { + or a biofuel producer that is also 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 { - that is - } { + in
Oregon + } used { + to produce biofuel + } in Oregon { - as
biofuel or to produce biofuel - } ; or
(B) The collection of biomass { - that is used - } in Oregon
{ - as biofuel or - } to produce biofuel { + in Oregon + }.
(b) A credit under this section may be claimed in the tax year
in which the agricultural producer or biomass collector
{ - transfers - } { + delivers + } biomass to a biofuel
producer.
(c) 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 - }
{ + delivered + } 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 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
{ + of delivery + } to an agricultural producer or biomass
collector at the time biomass is { - transferred - }
{ + delivered + } from the agricultural producer or biomass
collector to the biofuel producer. The receipt must state the
quantity and type of biomass being { - transferred - }
{ + delivered + } and that the biomass is to be used to produce
biofuel.
{ + (b) If the biofuel producer is also the agricultural
producer or biomass collector to which the biomass is delivered,
the agricultural producer or biomass collector may claim the
credit under this section. + }
{ - (b) - } { + (c) + } Each agricultural producer or
biomass collector shall maintain the receipts described in this
subsection in their 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.
(6) The credit shall be claimed on a form prescribed by the
Department of Revenue that contains the information required by
the department.
(7) 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) 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 10. 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) To transfer the tax credit, the taxpayer earning the credit
and the taxpayer that will claim the credit shall 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, address and taxpayer identification number of the
transferor and transferee;
(b) The amount of the tax credit; and
(c) 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 { + same + } biomass; or
(b) From a biomass collector to an agricultural producer
claiming a credit for producing the { + same + } biomass.
SECTION 11. { + Section 2 of this 2009 Act and the amendments
to ORS 315.141, 315.144, 315.354, 469.160 and 469.185 by sections
6 to 10 of this 2009 Act apply to tax years beginning on or after
January 1, 2010. + }
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