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 268
House Bill 2754
Sponsored by Representative WINGARD; Representatives BRUUN,
CAMERON, ESQUIVEL, FREEMAN, GARRARD, GILLIAM, GILMAN, HANNA,
JENSON, KRIEGER, MAURER, OLSON, RICHARDSON, G SMITH, THATCHER,
THOMPSON, WEIDNER, WHISNANT, Senators BOQUIST, GEORGE, GIROD,
MORSE, STARR, WHITSETT
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.
Creates tax credit for educational expenses or contributions to
qualified scholarship granting organization.
Applies to tax years beginning on or after January 1, 2010.
A BILL FOR AN ACT
Relating to tax credits for educational expenses.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 3 of this 2009 Act shall be known as
the Rose Friedman Educational Opportunity Tax Act. + }
SECTION 2. { + Section 3 of this 2009 Act is added to and made
a part of ORS chapter 315. + }
SECTION 3. { + (1) As used in this section:
(a)(A) 'Educational expenses' means expenses for:
(i) Tuition and fees for educational services, including
tutoring, whether delivered in person or by electronic means.
(ii) Transportation related to educational activities.
(iii) Educational association memberships.
(iv) Testing fees.
(v) Educational materials, including books, school supplies,
academic lessons, instructional software and academic curricula.
(B) 'Educational expenses' does not include fees or expenses
for athletic activities.
(b) 'Educational scholarship' means a grant from a scholarship
granting organization to a low-income eligible student or an
eligible student with special needs to cover part or all of the
educational expenses of the student.
(c) 'Eligible student' means a student who:
(A) Is a resident of this state;
(B) Is five years of age or older but not more than 21 years of
age;
(C) Has not graduated from high school; and
(D)(i) Is not a resident of the school district of the public
elementary or secondary school in which the student is enrolled;
or
(ii) If not enrolled in a public elementary or secondary
school, was eligible to attend a public school in this state in a
preceding academic term or is starting school in this state for
the first time.
(d) 'Eligible student with special needs' means an eligible
student:
(A) Whose family has a taxable income for the preceding tax
year that does not exceed an amount equal to twice the income
standard for the free or reduced price lunch program established
under 42 U.S.C. 1751 et seq.; and
(B) Who has been evaluated as having one of the following
conditions as defined under rules established by the State Board
of Education:
(i) Mental retardation.
(ii) Hearing impairment.
(iii) Speech or language impairment.
(iv) Visual impairment.
(v) Emotional disturbance.
(vi) Orthopedic or other health impairment.
(vii) Autism.
(viii) Traumatic brain injury.
(ix) Learning disabilities.
(e) 'Low-income eligible student' means an eligible student
whose family has a taxable income for the preceding tax year that
does not exceed the income standard for the free or reduced price
lunch program established under 42 U.S.C. 1751 et seq.
(f) 'Parent' includes a guardian, custodian or other person
with authority to act on behalf of the student.
(g) 'Scholarship granting organization' means an organization
that:
(A) Receives donations from taxpayers;
(B) Gives educational scholarships to low-income eligible
students or eligible students with special needs;
(C) Spends at least 90 percent of its donations on educational
scholarships;
(D) Spends all interest and proceeds from investments on
educational scholarships; and
(E) Is recognized as tax exempt under section 501(c)(3) of the
Internal Revenue Code.
(2) A credit against the taxes otherwise due under ORS chapter
316 shall be allowed for educational expenses actually paid or
incurred during the tax year on behalf of an eligible student of
whom the taxpayer is a parent. The amount of the credit allowed
under this subsection shall equal $1,000 multiplied by the number
of students for which the taxpayer is claiming the credit.
(3) A credit against the taxes otherwise due under ORS chapter
316 (or, if the taxpayer is a corporation, under ORS chapter 317
or 318) shall be allowed for contributions to a qualified
scholarship granting organization made during the tax year. The
credit allowed under this subsection shall equal:
(a) In the case of a credit allowed against tax under ORS
chapter 316, up to $1,000 of the taxpayer's contributions.
(b) In the case of a credit allowed against tax under ORS
chapter 317 or 318, up to $2,000 of the taxpayer's contributions
plus 75 percent of the next $8,000 of the taxpayer's
contributions.
(4) A credit allowed under this section in one tax year may not
exceed the tax liability of the taxpayer.
(5) 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, but may not be carried forward for any
tax year thereafter.
(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 by 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.
(7) The Department of Revenue shall establish by rule policies
and procedures for certifying taxpayers as eligible for the
credits allowed under subsections (2) and (3) of this
section. + }
SECTION 4. { + Section 3 of this 2009 Act applies to tax years
beginning on or after January 1, 2010. + }
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