74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
Enrolled
House Bill 3201
Sponsored by Representative NELSON; Representatives BERGER,
BRUUN, FLORES, GARRARD, Senator FERRIOLI (at the request of
Oregon War Veterans Association)
CHAPTER ................
AN ACT
Relating to taxation; creating new provisions; amending ORS
90.635, 285C.506, 315.354, 315.356, 315.514, 316.085, 316.116,
316.502, 316.680, 316.699, 317.097, 348.841, 469.160, 469.165,
469.170, 469.172, 469.176, 469.180, 469.185, 469.200, 469.205,
469.206 and 469.215 and section 2, chapter 649, Oregon Laws
1975, section 2, chapter 422, Oregon Laws 1979, sections 28,
29, 31 and 32, chapter 618, Oregon Laws 2003, section 3,
chapter 595, Oregon Laws 2005, and section 5a, chapter 832,
Oregon Laws 2005; repealing ORS 316.153; and prescribing an
effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 316.680 is amended to read:
316.680. (1) There shall be subtracted from federal taxable
income:
(a) The interest or dividends on obligations of the United
States and its territories and possessions or of any authority,
commission or instrumentality of the United States to the extent
includable in gross income for federal income tax purposes but
exempt from state income taxes under the laws of the United
States. However, the amount subtracted under this paragraph shall
be reduced by any interest on indebtedness incurred to carry the
obligations or securities described in this paragraph, and by any
expenses incurred in the production of interest or dividend
income described in this paragraph to the extent that such
expenses, including amortizable bond premiums, are deductible in
determining federal taxable income.
(b) The amount of any federal income taxes accrued by the
taxpayer during the taxable year as described in ORS 316.685,
less the amount of any refunds of federal taxes previously
accrued for which a tax benefit was received.
(c)(A) If the taxpayer does not qualify for the subtraction
under subparagraph (B) of this paragraph, compensation (other
than pension or retirement pay) received for active service
performed by a member of the Armed Forces of the United States in
an amount not to exceed { - $3,000 - } { + $6,000 + } per
annum.
(B) For the tax year of initial draft or enlistment into the
Armed Forces of the United States or for the tax year of
discharge from or termination of full-time active duty for the
Armed Forces of the United States, compensation (other than
Enrolled House Bill 3201 (HB 3201-B) Page 1
pension or retirement pay or pay for service when on military
reserve duty) paid by the Armed Forces of the United States for
services performed outside this state, if the taxpayer is on
active duty as a full-time officer, enlistee or draftee, with the
Armed Forces of the United States.
(d) Amounts allowable under sections 2621(a)(2) and 2622(b) of
the Internal Revenue Code to the extent that the taxpayer does
not elect under section 642(g) of the Internal Revenue Code to
reduce federal taxable income by those amounts.
(e) Any supplemental payments made to JOBS Plus Program
participants under ORS 411.892.
(f)(A) Federal pension income that is attributable to federal
employment occurring before October 1, 1991. Federal pension
income that is attributable to federal employment occurring
before October 1, 1991, shall be determined by multiplying the
total amount of federal pension income for the tax year by the
ratio of the number of months of federal creditable service
occurring before October 1, 1991, over the total number of months
of federal creditable service.
(B) The subtraction allowed under this paragraph applies only
to federal pension income received at a time when:
(i) Benefit increases provided under chapter 569, Oregon Laws
1995, are in effect; or
(ii) Public Employees Retirement System benefits received for
service prior to October 1, 1991, are exempt from state income
tax.
(C) As used in this paragraph:
(i) 'Federal creditable service' means those periods of time
for which a federal employee earned a federal pension.
(ii) 'Federal pension' means any form of retirement allowance
provided by the federal government, its agencies or its
instrumentalities to retirees of the federal government or their
beneficiaries.
(g) Any amount included in federal taxable income for the tax
year that is attributable to the conversion of a regular
individual retirement account into a Roth individual retirement
account described in section 408A of the Internal Revenue Code,
to the extent that:
(A) The amount was subject to the income tax of another state
or the District of Columbia in a prior tax year; and
(B) The taxpayer was a resident of the other state or the
District of Columbia for that prior tax year.
(h) Any amounts awarded to the taxpayer by the Public Safety
Memorial Fund Board under ORS 243.954 to 243.974 to the extent
that the taxpayer has not taken the amount as a deduction in
determining the taxpayer's federal taxable income for the tax
year.
(i) If included in taxable income for federal tax purposes, the
amount withdrawn during the tax year in qualified withdrawals
from a college savings network account established under ORS
348.841 to 348.873.
{ + (j) Any amount paid by the TRICARE military health care
system to a health care provider during the first two years that
the health care provider participates in the TRICARE system. + }
(2) There shall be added to federal taxable income:
(a) Interest or dividends, exempt from federal income tax, on
obligations or securities of any foreign state or of a political
subdivision or authority of any foreign state. However, the
amount added under this paragraph shall be reduced by any
interest on indebtedness incurred to carry the obligations or
Enrolled House Bill 3201 (HB 3201-B) Page 2
securities described in this paragraph and by any expenses
incurred in the production of interest or dividend income
described in this paragraph.
(b) Interest or dividends on obligations of any authority,
commission, instrumentality and territorial possession of the
United States that by the laws of the United States are exempt
from federal income tax but not from state income taxes. However,
the amount added under this paragraph shall be reduced by any
interest on indebtedness incurred to carry the obligations or
securities described in this paragraph and by any expenses
incurred in the production of interest or dividend income
described in this paragraph.
(c) The amount of any federal estate taxes allocable to income
in respect of a decedent not taxable by Oregon.
(d) The amount of any allowance for depletion in excess of the
taxpayer's adjusted basis in the property depleted, deducted on
the taxpayer's federal income tax return for the taxable year,
pursuant to sections 613, 613A, 614, 616 and 617 of the Internal
Revenue Code.
(e) For taxable years beginning on or after January 1, 1985,
the dollar amount deducted under section 151 of the Internal
Revenue Code for personal exemptions for the taxable year.
(f) The amount taken as a deduction on the taxpayer's federal
return for unused qualified business credits under section 196 of
the Internal Revenue Code.
(g) The amount of any increased benefits paid to a taxpayer
under chapter 569, Oregon Laws 1995, under the provisions of
chapter 796, Oregon Laws 1991, and under section 26, chapter 815,
Oregon Laws 1991, that is not includable in the taxpayer's
federal taxable income under the Internal Revenue Code.
(h) The amount of any long term care insurance premiums paid or
incurred by the taxpayer during the tax year if:
(A) The amount is taken into account as a deduction on the
taxpayer's federal return for the tax year; and
(B) The taxpayer claims the credit allowed under ORS 315.610
for the tax year.
(i) Any amount taken as a deduction under section 1341 of the
Internal Revenue Code in computing federal taxable income for the
tax year, if the taxpayer has claimed a credit for claim of right
income repayment adjustment under ORS 315.068.
(j) If the taxpayer makes a nonqualified withdrawal, as defined
in ORS 348.841, from a college savings network account
established under ORS 348.841 to 348.873, the amount of the
withdrawal that is attributable to contributions that were
subtracted from federal taxable income under ORS 316.699.
(3) Discount and gain or loss on retirement or disposition of
obligations described under subsection (2)(a) of this section
issued on or after January 1, 1985, shall be treated for purposes
of this chapter in the same manner as under sections 1271 to 1283
and other pertinent sections of the Internal Revenue Code as if
the obligations, although issued by a foreign state or a
political subdivision of a foreign state, were not tax exempt
under the Internal Revenue Code.
SECTION 2. ORS 316.680, as amended by section 1 of this 2007
Act, is amended to read:
316.680. (1) There shall be subtracted from federal taxable
income:
(a) The interest or dividends on obligations of the United
States and its territories and possessions or of any authority,
commission or instrumentality of the United States to the extent
Enrolled House Bill 3201 (HB 3201-B) Page 3
includable in gross income for federal income tax purposes but
exempt from state income taxes under the laws of the United
States. However, the amount subtracted under this paragraph shall
be reduced by any interest on indebtedness incurred to carry the
obligations or securities described in this paragraph, and by any
expenses incurred in the production of interest or dividend
income described in this paragraph to the extent that such
expenses, including amortizable bond premiums, are deductible in
determining federal taxable income.
(b) The amount of any federal income taxes accrued by the
taxpayer during the taxable year as described in ORS 316.685,
less the amount of any refunds of federal taxes previously
accrued for which a tax benefit was received.
(c)(A) If the taxpayer does not qualify for the subtraction
under subparagraph (B) of this paragraph, compensation (other
than pension or retirement pay) received for active service
performed by a member of the Armed Forces of the United States in
an amount not to exceed $6,000 per annum.
(B) For the tax year of initial draft or enlistment into the
Armed Forces of the United States or for the tax year of
discharge from or termination of full-time active duty for the
Armed Forces of the United States, compensation (other than
pension or retirement pay or pay for service when on military
reserve duty) paid by the Armed Forces of the United States for
services performed outside this state, if the taxpayer is on
active duty as a full-time officer, enlistee or draftee, with the
Armed Forces of the United States.
(d) Amounts allowable under sections 2621(a)(2) and 2622(b) of
the Internal Revenue Code to the extent that the taxpayer does
not elect under section 642(g) of the Internal Revenue Code to
reduce federal taxable income by those amounts.
(e) Any supplemental payments made to JOBS Plus Program
participants under ORS 411.892.
(f)(A) Federal pension income that is attributable to federal
employment occurring before October 1, 1991. Federal pension
income that is attributable to federal employment occurring
before October 1, 1991, shall be determined by multiplying the
total amount of federal pension income for the tax year by the
ratio of the number of months of federal creditable service
occurring before October 1, 1991, over the total number of months
of federal creditable service.
(B) The subtraction allowed under this paragraph applies only
to federal pension income received at a time when:
(i) Benefit increases provided under chapter 569, Oregon Laws
1995, are in effect; or
(ii) Public Employees Retirement System benefits received for
service prior to October 1, 1991, are exempt from state income
tax.
(C) As used in this paragraph:
(i) 'Federal creditable service' means those periods of time
for which a federal employee earned a federal pension.
(ii) 'Federal pension' means any form of retirement allowance
provided by the federal government, its agencies or its
instrumentalities to retirees of the federal government or their
beneficiaries.
(g) Any amount included in federal taxable income for the tax
year that is attributable to the conversion of a regular
individual retirement account into a Roth individual retirement
account described in section 408A of the Internal Revenue Code,
to the extent that:
Enrolled House Bill 3201 (HB 3201-B) Page 4
(A) The amount was subject to the income tax of another state
or the District of Columbia in a prior tax year; and
(B) The taxpayer was a resident of the other state or the
District of Columbia for that prior tax year.
(h) Any amounts awarded to the taxpayer by the Public Safety
Memorial Fund Board under ORS 243.954 to 243.974 to the extent
that the taxpayer has not taken the amount as a deduction in
determining the taxpayer's federal taxable income for the tax
year.
(i) If included in taxable income for federal tax purposes, the
amount withdrawn during the tax year in qualified withdrawals
from a college savings network account established under ORS
348.841 to 348.873.
(j) Any amount paid by the TRICARE military health care system
to a health care provider during the first two years that the
health care provider participates in the TRICARE system.
{ + (k) Any amounts included in the federal taxable income
that are attributable to income earned by an employee of the
Oregon Military Department for performing duties for the Oregon
National Guard Youth Challenge Program in an amount not to exceed
$6,000 per annum. + }
(2) There shall be added to federal taxable income:
(a) Interest or dividends, exempt from federal income tax, on
obligations or securities of any foreign state or of a political
subdivision or authority of any foreign state. However, the
amount added under this paragraph shall be reduced by any
interest on indebtedness incurred to carry the obligations or
securities described in this paragraph and by any expenses
incurred in the production of interest or dividend income
described in this paragraph.
(b) Interest or dividends on obligations of any authority,
commission, instrumentality and territorial possession of the
United States that by the laws of the United States are exempt
from federal income tax but not from state income taxes. However,
the amount added under this paragraph shall be reduced by any
interest on indebtedness incurred to carry the obligations or
securities described in this paragraph and by any expenses
incurred in the production of interest or dividend income
described in this paragraph.
(c) The amount of any federal estate taxes allocable to income
in respect of a decedent not taxable by Oregon.
(d) The amount of any allowance for depletion in excess of the
taxpayer's adjusted basis in the property depleted, deducted on
the taxpayer's federal income tax return for the taxable year,
pursuant to sections 613, 613A, 614, 616 and 617 of the Internal
Revenue Code.
(e) For taxable years beginning on or after January 1, 1985,
the dollar amount deducted under section 151 of the Internal
Revenue Code for personal exemptions for the taxable year.
(f) The amount taken as a deduction on the taxpayer's federal
return for unused qualified business credits under section 196 of
the Internal Revenue Code.
(g) The amount of any increased benefits paid to a taxpayer
under chapter 569, Oregon Laws 1995, under the provisions of
chapter 796, Oregon Laws 1991, and under section 26, chapter 815,
Oregon Laws 1991, that is not includable in the taxpayer's
federal taxable income under the Internal Revenue Code.
(h) The amount of any long term care insurance premiums paid or
incurred by the taxpayer during the tax year if:
Enrolled House Bill 3201 (HB 3201-B) Page 5
(A) The amount is taken into account as a deduction on the
taxpayer's federal return for the tax year; and
(B) The taxpayer claims the credit allowed under ORS 315.610
for the tax year.
(i) Any amount taken as a deduction under section 1341 of the
Internal Revenue Code in computing federal taxable income for the
tax year, if the taxpayer has claimed a credit for claim of right
income repayment adjustment under ORS 315.068.
(j) If the taxpayer makes a nonqualified withdrawal, as defined
in ORS 348.841, from a college savings network account
established under ORS 348.841 to 348.873, the amount of the
withdrawal that is attributable to contributions that were
subtracted from federal taxable income under ORS 316.699.
(3) Discount and gain or loss on retirement or disposition of
obligations described under subsection (2)(a) of this section
issued on or after January 1, 1985, shall be treated for purposes
of this chapter in the same manner as under sections 1271 to 1283
and other pertinent sections of the Internal Revenue Code as if
the obligations, although issued by a foreign state or a
political subdivision of a foreign state, were not tax exempt
under the Internal Revenue Code.
SECTION 2a. ORS 316.680, as amended by sections 1 and 2 of this
2007 Act, is amended to read:
316.680. (1) There shall be subtracted from federal taxable
income:
(a) The interest or dividends on obligations of the United
States and its territories and possessions or of any authority,
commission or instrumentality of the United States to the extent
includable in gross income for federal income tax purposes but
exempt from state income taxes under the laws of the United
States. However, the amount subtracted under this paragraph shall
be reduced by any interest on indebtedness incurred to carry the
obligations or securities described in this paragraph, and by any
expenses incurred in the production of interest or dividend
income described in this paragraph to the extent that such
expenses, including amortizable bond premiums, are deductible in
determining federal taxable income.
(b) The amount of any federal income taxes accrued by the
taxpayer during the taxable year as described in ORS 316.685,
less the amount of any refunds of federal taxes previously
accrued for which a tax benefit was received.
(c)(A) If the taxpayer does not qualify for the subtraction
under subparagraph (B) of this paragraph, compensation (other
than pension or retirement pay) received for active service
performed by a member of the Armed Forces of the United States in
an amount not to exceed $6,000 per annum.
(B) For the tax year of initial draft or enlistment into the
Armed Forces of the United States or for the tax year of
discharge from or termination of full-time active duty for the
Armed Forces of the United States, compensation (other than
pension or retirement pay or pay for service when on military
reserve duty) paid by the Armed Forces of the United States for
services performed outside this state, if the taxpayer is on
active duty as a full-time officer, enlistee or draftee, with the
Armed Forces of the United States.
(d) Amounts allowable under sections 2621(a)(2) and 2622(b) of
the Internal Revenue Code to the extent that the taxpayer does
not elect under section 642(g) of the Internal Revenue Code to
reduce federal taxable income by those amounts.
Enrolled House Bill 3201 (HB 3201-B) Page 6
(e) Any supplemental payments made to JOBS Plus Program
participants under ORS 411.892.
(f)(A) Federal pension income that is attributable to federal
employment occurring before October 1, 1991. Federal pension
income that is attributable to federal employment occurring
before October 1, 1991, shall be determined by multiplying the
total amount of federal pension income for the tax year by the
ratio of the number of months of federal creditable service
occurring before October 1, 1991, over the total number of months
of federal creditable service.
(B) The subtraction allowed under this paragraph applies only
to federal pension income received at a time when:
(i) Benefit increases provided under chapter 569, Oregon Laws
1995, are in effect; or
(ii) Public Employees Retirement System benefits received for
service prior to October 1, 1991, are exempt from state income
tax.
(C) As used in this paragraph:
(i) 'Federal creditable service' means those periods of time
for which a federal employee earned a federal pension.
(ii) 'Federal pension' means any form of retirement allowance
provided by the federal government, its agencies or its
instrumentalities to retirees of the federal government or their
beneficiaries.
(g) Any amount included in federal taxable income for the tax
year that is attributable to the conversion of a regular
individual retirement account into a Roth individual retirement
account described in section 408A of the Internal Revenue Code,
to the extent that:
(A) The amount was subject to the income tax of another state
or the District of Columbia in a prior tax year; and
(B) The taxpayer was a resident of the other state or the
District of Columbia for that prior tax year.
(h) Any amounts awarded to the taxpayer by the Public Safety
Memorial Fund Board under ORS 243.954 to 243.974 to the extent
that the taxpayer has not taken the amount as a deduction in
determining the taxpayer's federal taxable income for the tax
year.
(i) If included in taxable income for federal tax purposes, the
amount withdrawn during the tax year in qualified withdrawals
from a college savings network account established under ORS
348.841 to 348.873.
{ - (j) Any amount paid by the TRICARE military health care
system to a health care provider during the first two years that
the health care provider participates in the TRICARE system. - }
{ - (k) Any amounts included in the federal taxable income
that are attributable to income earned by an employee of the
Oregon Military Department for performing duties for the Oregon
National Guard Youth Challenge Program in an amount not to exceed
$6,000 per annum. - }
(2) There shall be added to federal taxable income:
(a) Interest or dividends, exempt from federal income tax, on
obligations or securities of any foreign state or of a political
subdivision or authority of any foreign state. However, the
amount added under this paragraph shall be reduced by any
interest on indebtedness incurred to carry the obligations or
securities described in this paragraph and by any expenses
incurred in the production of interest or dividend income
described in this paragraph.
Enrolled House Bill 3201 (HB 3201-B) Page 7
(b) Interest or dividends on obligations of any authority,
commission, instrumentality and territorial possession of the
United States that by the laws of the United States are exempt
from federal income tax but not from state income taxes. However,
the amount added under this paragraph shall be reduced by any
interest on indebtedness incurred to carry the obligations or
securities described in this paragraph and by any expenses
incurred in the production of interest or dividend income
described in this paragraph.
(c) The amount of any federal estate taxes allocable to income
in respect of a decedent not taxable by Oregon.
(d) The amount of any allowance for depletion in excess of the
taxpayer's adjusted basis in the property depleted, deducted on
the taxpayer's federal income tax return for the taxable year,
pursuant to sections 613, 613A, 614, 616 and 617 of the Internal
Revenue Code.
(e) For taxable years beginning on or after January 1, 1985,
the dollar amount deducted under section 151 of the Internal
Revenue Code for personal exemptions for the taxable year.
(f) The amount taken as a deduction on the taxpayer's federal
return for unused qualified business credits under section 196 of
the Internal Revenue Code.
(g) The amount of any increased benefits paid to a taxpayer
under chapter 569, Oregon Laws 1995, under the provisions of
chapter 796, Oregon Laws 1991, and under section 26, chapter 815,
Oregon Laws 1991, that is not includable in the taxpayer's
federal taxable income under the Internal Revenue Code.
(h) The amount of any long term care insurance premiums paid or
incurred by the taxpayer during the tax year if:
(A) The amount is taken into account as a deduction on the
taxpayer's federal return for the tax year; and
(B) The taxpayer claims the credit allowed under ORS 315.610
for the tax year.
(i) Any amount taken as a deduction under section 1341 of the
Internal Revenue Code in computing federal taxable income for the
tax year, if the taxpayer has claimed a credit for claim of right
income repayment adjustment under ORS 315.068.
(j) If the taxpayer makes a nonqualified withdrawal, as defined
in ORS 348.841, from a college savings network account
established under ORS 348.841 to 348.873, the amount of the
withdrawal that is attributable to contributions that were
subtracted from federal taxable income under ORS 316.699.
(3) Discount and gain or loss on retirement or disposition of
obligations described under subsection (2)(a) of this section
issued on or after January 1, 1985, shall be treated for purposes
of this chapter in the same manner as under sections 1271 to 1283
and other pertinent sections of the Internal Revenue Code as if
the obligations, although issued by a foreign state or a
political subdivision of a foreign state, were not tax exempt
under the Internal Revenue Code.
SECTION 3. { + (1) A resident or nonresident individual
physician licensed under ORS chapter 677 who is engaged in the
practice of medicine qualifies for an annual credit against the
taxes that are otherwise due under ORS chapter 316 if the
physician provides medical care to residents of an Oregon
Veterans' Home.
(2) The amount of the credit allowed under this section shall
be equal to the lesser of:
(a) $1,000 for every eight residents to whom the physician
provides care at an Oregon Veterans' Home; or
Enrolled House Bill 3201 (HB 3201-B) Page 8
(b) $5,000.
(3) The credit allowed under this section may not exceed the
tax liability of the taxpayer for the tax year, and a credit
allowed under this section that is unused may not be carried
forward to a succeeding tax year.
(4) A nonresident shall be allowed the credit described in this
section in the proportion provided in ORS 316.117. 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.
(5) In order to qualify for the tax credit allowed under this
section, the physician claiming the credit must submit with the
physician's tax return a letter from the Oregon Veterans' Home at
which the physician provided care to residents, confirming that
the physician missed no more than five percent of the physician's
scheduled visits with residents of the home during the tax year.
(6) In the case of a shareholder of a corporation or a member
of a partnership, only the care provided by the individual
shareholder or partner shall be considered, and the full amount
of the credit shall be allowed to each shareholder or partner who
qualifies in an individual capacity.
(7) The Director of Veterans' Affairs shall assist the
Department of Revenue in determining if a taxpayer claiming a
credit under this section qualifies for the credit. + }
SECTION 4. { + Sections 3 and 5 of this 2007 Act are added to
and made a part of ORS chapter 315. + }
SECTION 5. { + (1) A health care provider who enters into a
contract for the first time on or after January 1, 2007, to
provide health care services permitted under a TRICARE contract
to patients enrolled in the TRICARE military health care system
shall be allowed a one-time credit against taxes otherwise due
under ORS chapter 316 in the amount of $2,500.
(2) A health care provider who has a contract to provide health
care services permitted under a TRICARE contract to patients
enrolled in the TRICARE military health care system shall be
allowed a credit each tax year against taxes otherwise due under
ORS chapter 316 in the amount of $1,000 if the health care
provider actively participates in the TRICARE military health
care system and each tax year provides health care services to at
least 10 patients enrolled in the TRICARE military health care
system. A health care provider who serves patients in a rural
community, as defined by the Office of Rural Health, may provide
health care services to fewer than 10 patients in a tax year and
qualify for the credit.
(3) A health care provider may not receive a credit under
subsections (1) and (2) of this section in the same tax year.
(4) A nonresident shall be allowed a credit under this section
in the proportion provided in ORS 316.117. 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. + }
SECTION 6. { + (1) The Office of Rural Health shall establish
criteria for certifying health care providers as eligible for a
tax credit authorized by section 5 of this 2007 Act or a
deduction from federal taxable income under ORS 316.680. Upon
finding that a health care provider meets the eligibility
criteria established by the office, the office shall certify the
provider for a tax credit under section 5 of this 2007 Act or the
Enrolled House Bill 3201 (HB 3201-B) Page 9
tax deduction under ORS 316.680. The office may not issue more
than 500 certifications under this section in any calendar year
and may not certify more than 1,000 providers before December 31,
2009.
(2) Prior to October 1 of each year, the office shall report to
the legislative interim committees on revenue regarding the
number of health care providers who qualify for the tax credit
under section 5 (2) of this 2007 Act.
(3) Prior to December 31 of each year, the administrator of the
TRICARE contracts with health care providers who provide health
care services to patients in Oregon shall make a report to the
office regarding the number of patients that each health care
provider has contracted to provide health care services. + }
SECTION 7. { + The amendments to ORS 316.680 by section 1 of
this 2007 Act apply to tax years beginning on or after January 1,
2007. + }
SECTION 8. { + Sections 5 and 6 of this 2007 Act apply to tax
years beginning on or after January 1, 2008, and before January
1, 2012. + }
SECTION 9. { + Section 3 of this 2007 Act and the amendments
to ORS 316.680 by section 2 of this 2007 Act apply to tax years
beginning on or after January 1, 2008, and before January 1,
2012. + }
SECTION 10. { + The amendments to ORS 316.680 by section 2a of
this 2007 Act apply to tax years beginning on or after January 1,
2012. + }
SECTION 11. ORS 316.699 is amended to read:
316.699. (1) There shall be subtracted from federal taxable
income the amount contributed to a college savings network
account established under ORS 348.841 to 348.873.
(2) Notwithstanding subsection (1) of this section, a
subtraction under this section may not exceed the lesser of:
{ - (a) $2,000 for the tax year or, in the case of a married
individual filing separately, $1,000 for the tax year; and - }
{ + (a) $4,000 for the tax year if the taxpayer files a joint
return, or $2,000 for the tax year if the taxpayer files a return
other than a joint return; and + }
(b) If an amount is carried forward to a succeeding tax year
under subsection (3) of this section, the balance in the college
savings network account at the close of the tax year for which
the subtraction is being made.
{ + (3)(a) The Department of Revenue shall annually adjust
the maximum subtraction allowable under this section according to
the cost-of-living adjustment for the calendar year. The
department shall make this adjustment by multiplying the amount
in subsection (2) of this section by the percentage (if any) by
which the monthly averaged U.S. City Average Consumer Price Index
for the 12 consecutive months ending August 31 of the prior
calendar year exceeds the monthly averaged U.S. City Average
Consumer Price Index for the 12 consecutive months ending August
31, 2007.
(b) As used in this subsection, 'U.S. City Average Consumer
Price Index' means the U.S. City Average Consumer Price Index for
All Urban Consumers (All Items) as published by the Bureau of
Labor Statistics of the United States Department of Labor. + }
{ - (3) - } { + (4) + } Any amounts contributed to a
college savings network account that are not subtracted from
federal taxable income because of the monetary limitations
imposed by subsection (2) of this section may be carried forward
for four succeeding tax years and subtracted from federal taxable
Enrolled House Bill 3201 (HB 3201-B) Page 10
income in any of those succeeding tax years in an amount that
does not exceed the monetary limitations imposed by subsection
(2) of this section.
{ - (4) - } { + (5) + } The amount contributed to a college
savings network account may be subtracted from a preceding tax
year if the contribution is made before the taxpayer files a
return or before the 15th day of the fourth month following the
closing of the taxpayer's tax year, whichever is earlier.
SECTION 12. ORS 348.841 is amended to read:
348.841. As used in ORS 348.841 to 348.873:
(1) 'Account' means an individual account established in
accordance with ORS 348.841 to 348.873.
(2) 'Account owner' means the person who has the right to
withdraw funds from the account. The account owner may also be
the designated beneficiary of the account.
(3) 'Board' means the Oregon 529 College Savings Board
established under ORS 348.849.
(4) 'Designated beneficiary' means, except as provided in ORS
348.867, the individual designated at the time the account is
opened as having the right to receive a qualified withdrawal for
the payment of qualified higher education expenses, or if the
designated beneficiary is replaced in accordance with ORS
348.867, the replacement.
(5) 'Financial institution' means a bank, a commercial bank, a
national bank, a savings bank, a savings and loan, a thrift
institution, a credit union, an insurance company, a trust
company, a mutual fund, an investment firm or other similar
entity authorized to do business in this state.
(6) 'Higher education institution' means an eligible education
institution as defined in section 529(e)(5) of the Internal
Revenue Code.
(7) 'Internal Revenue Code' means the federal Internal Revenue
Code { - , as amended and in effect on December 31, 2002 - } .
(8) 'Member of the family' shall have the same meaning as
contained in section 529(e) of the Internal Revenue Code.
(9) 'Network' means the Oregon 529 College Savings Network
established under ORS 348.841 to 348.873.
(10) 'Nonqualified withdrawal' means a withdrawal from an
account that is not a qualified withdrawal.
(11) 'Qualified higher education expenses' means tuition and
other permitted expenses as set forth in section 529(e) of the
Internal Revenue Code for the enrollment or attendance of a
designated beneficiary at a higher education institution.
(12) 'Qualified withdrawal' means a withdrawal made as
prescribed under ORS 348.870 and made:
(a) From an account to pay the qualified higher education
expenses of the designated beneficiary;
(b) As the result of the death or disability of the designated
beneficiary;
(c) As the result of a scholarship, allowance or payment
described in section 135(d)(1)(A), (B) or (C) of the Internal
Revenue Code that is received by the designated beneficiary, but
only to the extent of the amount of the scholarship, allowance or
payment; or
(d) As a rollover or change in the designated beneficiary
described in ORS 348.867.
SECTION 13. { + The amendments to ORS 316.699 by section 11 of
this 2007 Act apply to tax years beginning on or after January 1,
2008. + }
SECTION 14. ORS 315.354 is amended to read:
Enrolled House Bill 3201 (HB 3201-B) Page 11
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 application for certification under ORS
469.185 to 469.225 was filed with the State Department of Energy
on or after January 1, 2001, and - } the certified cost of the
facility does not exceed $20,000, the total amount of the credit
allowable under subsection { - (3) - } { + (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. + }
{ - (2) - } { + (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).
{ - (3) - } { + (4) + } { - The maximum total credit or
credits allowed for a facility under this section to eligible
taxpayers - } { + 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;
Enrolled House Bill 3201 (HB 3201-B) Page 12
(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 { - the - } { +
any other + } facility.
{ - (4)(a) - } { + (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).
{ - (5) - } { + (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.
{ - (6) - } { + (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.
{ - (7) - } { + (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
Enrolled House Bill 3201 (HB 3201-B) Page 13
(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 15. ORS 315.356 is amended to read:
315.356. (1) If a taxpayer obtains a grant { - or tax
credit - } from the federal government { - other than an
investment tax credit or a low income housing tax credit - } in
connection with a facility
{ - which - } { + that + } has been certified by the Director
of the State Department of Energy, the certified cost of the
facility shall be reduced on a dollar for dollar basis. Any
income or excise tax credits { - which such - } { + that
the + } taxpayer would be entitled to under ORS 315.354 and
469.185 to 469.225 after any { - such reduction shall - } { +
reduction described in this subsection may + } not be reduced by
{ - such - } { + the + } federal { - grants or tax
credits - } { + grant + }. A taxpayer applying for a federal
grant { - or credit - } shall notify the Department of Revenue
by certified mail within 30 days after each application, and
after the receipt of any grant.
(2) A taxpayer is eligible to participate in both this tax
credit program and low interest, government-sponsored loans.
(3) A taxpayer who receives a tax credit or { - ad
valorem - } { + property + } tax relief on a pollution control
facility or an alternative energy device under ORS 307.405,
315.304 or 316.116 is not eligible for a tax credit on the same
facility or device under ORS 315.354 and 469.185 to 469.225.
(4) A credit may not be allowed under ORS 315.354 if the
taxpayer has received a tax credit on the same facility or device
under ORS 315.324.
SECTION 16. 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
Enrolled House Bill 3201 (HB 3201-B) Page 14
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; { - or - }
(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 section 22 of this 2007 Act.
(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 section 22 of this 2007 Act.
(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 section 22 of this 2007 Act; and
(b) Is installed in a new single-family dwelling by, or at the
direction of, the homebuilder constructing the dwelling + }.
{ - (7) - } { + (10) + } 'Qualified transit pass contract'
means a purchase agreement entered into between a transportation
Enrolled House Bill 3201 (HB 3201-B) Page 15
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.
{ - (8) - } { + (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 bailers, 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.
{ - (9)(a) - } { + (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, { - industrial waste - } { +
nonpetroleum plant or animal based biomass + }, 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 { - larger than one megawatt
of installed capacity unless the facility qualifies as a
research, development or demonstration 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 section 22 of this 2007
Act + }.
{ - (10) - } { + (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
Enrolled House Bill 3201 (HB 3201-B) Page 16
determining whether a facility is a sustainable building
practices facility.
{ - (11) - } { + (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.
{ - (12) - } { + (16) + } 'Transportation provider' means a
public, private or nonprofit entity that provides transportation
services to members of the public.
{ - (13) - } { + (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 17. ORS 469.200 is amended to read:
469.200. { + (1) + } The total cost of a facility that
receives a preliminary certification from the Director of the
State Department of Energy for tax credits in any calendar year
{ - shall - } { + may + } not exceed { + :
(a) $20 million, in the case of a facility using or producing
renewable energy resources, a renewable energy resource equipment
manufacturing facility or a high-efficiency combined heat and
power facility; or
(b) + } $10 million { + , in the case of any other
facility + }.
{ + (2) + } The director shall determine the dollar amount
certified for any facility and the priority between applications
for certification based upon the criteria contained in ORS
469.185 to 469.225 and applicable rules and standards adopted
under ORS 469.185 to 469.225. The director may consider the
status of a facility as a research, development or demonstration
facility of new renewable resource generating and conservation
technologies or a qualified transit pass contract in the
determination.
SECTION 18. ORS 469.205 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:
Enrolled House Bill 3201 (HB 3201-B) Page 17
(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 { - (8) - } { + (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;
{ - or - }
(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:
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(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.
SECTION 19. ORS 469.206 is amended to read:
469.206. (1) The owner of a facility may transfer a tax credit
for the facility in exchange for a cash payment equal to the
present value of the tax credit.
(2) The State Department of Energy may establish by rule
uniform discount rates to be used in calculating the present
value of a tax credit under this section.
{ + (3) Notwithstanding any other provision of law, a tax
credit transferred pursuant to this section does not decrease the
amount of taxes required to be reported by a public utility. + }
SECTION 20. ORS 469.215 is amended to read:
469.215. (1) { - No - } { + A + } final certification
{ - shall - } { + may not + } be issued by the Director of the
State Department of Energy under this section unless the facility
was acquired, erected, constructed or installed under a
preliminary certificate of approval issued under ORS 469.210 and
in accordance with the applicable provisions of ORS 469.185 to
469.225 and any applicable rules or standards adopted by the
director.
(2) Any person may apply to the State Department of Energy for
final certification of a facility:
(a) If the department issued preliminary certification for the
facility under ORS 469.210; and
(b)(A) After completion of erection, construction, installation
or acquisition of the proposed facility or, if the facility is a
qualified transit pass contract, after entering into the contract
with a transportation provider; or
(B) After transfer of the facility, as provided in ORS 315.354
{ - (4) - } { + (5) + }.
(3) An application for final certification shall be made in
writing on a form prepared by the department and shall contain:
(a) A statement that the conditions of the preliminary
certification have been complied with;
(b) The actual cost of the facility certified to by a certified
public accountant who is not an employee of the applicant or, if
the actual cost of the facility is less than $50,000, copies of
receipts for purchase and installation of the facility;
(c) A statement that the facility is in operation or, if not in
operation, that the applicant has made every reasonable effort to
make the facility operable; and
(d) Any other information determined by the director to be
necessary prior to issuance of a final certificate, including
inspection of the facility by the department.
(4) The director shall act on an application for certification
before the 60th day after the filing of the application under
this section. The director, after consultation with the Public
Utility Commission, may issue the certificate together with such
conditions as the director determines are appropriate to promote
the purposes of this section and ORS 315.354, 469.185, 469.200,
469.205 and 469.878. The action of the director shall include
certification of the actual cost of the facility. However, in no
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event shall the director certify an amount for tax credit
purposes which is more than 10 percent in excess of the amount
approved in the preliminary certificate issued for the facility.
(5) If the director rejects an application for final
certification, or certifies a lesser actual cost of the facility
than was claimed in the application, the director shall send to
the applicant written notice of the action, together with a
statement of the findings and reasons therefor, by certified
mail, before the 60th day after the filing of the application.
Failure of the director to act constitutes rejection of the
application.
(6) Upon approval of an application for final certification of
a facility, the director shall certify the facility. Each
certificate shall bear a separate serial number for each device.
Where one or more devices constitute an operational unit, the
director may certify the operational unit under one certificate.
SECTION 21. { + Section 22 of this 2007 Act is added to and
made a part of ORS 469.185 to 469.225. + }
SECTION 22. { + 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, standards relating to the type of equipment, machinery
or other products being manufactured and related performance and
efficiency standards applicable to the manufactured products. + }
SECTION 23. { + Section 24 of this 2007 Act is added to and
made a part of ORS chapter 315. + }
SECTION 24. { + A taxpayer may not be allowed a credit under
ORS 315.354 if the first tax year for which the credit with
respect to a facility certified under ORS 469.215 would otherwise
be allowed begins on or after January 1, 2016. + }
SECTION 25. { + Section 26 of this 2007 Act is added to and
made a part of ORS 469.185 to 469.225. + }
SECTION 26. { + The Director of the State Department of Energy
may not issue a final certification of a facility under ORS
469.215 on or after January 1, 2016. + }
SECTION 27. { + Section 22 of this 2007 Act and the amendments
to ORS 315.354, 315.356, 469.185, 469.200, 469.205, 469.206 and
469.215 by sections 14 to 20 of this 2007 Act apply to facilities
acquired, erected, constructed or installed on or after January
Enrolled House Bill 3201 (HB 3201-B) Page 20
1, 2007, and to tax years beginning on or after January 1,
2007. + }
SECTION 28. 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) Any system, mechanism or series of mechanisms,
including photovoltaic systems, that uses solar radiation or wind
for space heating, cooling or electrical energy 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) A wind powered turbine that generates
electricity; - }
{ - (e) Any wind powered device used to offset or supplement
the use of electricity by performing a specific task such as
pumping water; - }
{ - (f) Equipment used in the production of alternative
fuels; - }
{ - (g) A generator powered by alternative fuels and used to
produce electricity; - }
{ - (h) A fuel cell; - }
{ - (i) An energy efficient appliance; or - }
{ - (j) An alternative fuel device. - }
{ + (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.
{ + (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;
Enrolled House Bill 3201 (HB 3201-B) Page 21
(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, solar electric system or wind electric system. + }
{ - (4) - } { + (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.
{ - (5) - } { + (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.
{ - (6)(a) - } { + (8)(a) + } 'Cost' means the actual cost
of the acquisition, construction and installation of the
alternative energy device { - or solar electric system - }
paid by the taxpayer for the alternative energy device { - or
solar electric system - } .
(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.
(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.
{ - (7) - } { + (9) + } 'Domestic water heating' means the
heating of water used in a dwelling for bathing, clothes washing,
dishwashing and other related functions.
{ - (8) - } { + (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.
{ - (9) - } { + (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.
{ - (10) - } { + (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. + }
{ - (11) - } { + (14) + } 'Fueling station' includes but is
not limited to a compressed natural gas compressor fueling system
Enrolled House Bill 3201 (HB 3201-B) Page 22
or an electric charging system for vehicle power battery
charging.
{ - (12) - } { + (15) + } 'Placed in service' means:
(a) The date an alternative energy device { - or solar
electric system - } 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.
{ - (13) - } { + (16) + } 'Related equipment' means
equipment necessary to convert a vehicle to use an alternative
fuel.
{ - (14) - } { + (17) + } '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) 'Wind electric system' means any system, mechanism
or series of mechanisms that uses wind to generate electrical
energy for a dwelling. + }
SECTION 29. 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 { - an - }
{ + each of one or more + } alternative energy { - device - }
{ + 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.
{ - (c) 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 a solar electric
system in a dwelling. - }
(2)(a) { - Except in the case of an alternative fuel device
or a solar electric system - } { + 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
{ - shall - } { + 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
Enrolled House Bill 3201 (HB 3201-B) Page 23
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 { - an - } { + 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 { - an - } { + 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. + }
{ - (B) - } { + (C) + } Notwithstanding subparagraph
(A) { + or (B) + } of this paragraph, the { + total + } amount
of the { - credit - } { + 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
{ - solar electric system - } { + category two alternative
energy device + } that is the basis for the credit.
{ - (C) - } { + (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
{ - solar electric system - } { + category two alternative
energy device + }.
(3)(a) In the case of a credit for { - an - } { + 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
Enrolled House Bill 3201 (HB 3201-B) Page 24
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 { - shall - }
{ + 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 { - or solar electric
system - } 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 solar electric system - } 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 { - or solar electric system - } 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 { - or solar electric system - } was
purchased if the device { - or system - } 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 { - credit - } { + 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
Enrolled House Bill 3201 (HB 3201-B) Page 25
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) 'First year energy yield' has the meaning given in
ORS 469.160. - }
{ - (c) - } { + (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.
{ - (13) - } { + (c) + } { - As used in this section, - }
'Taxpayer' includes a transferee of a verification form under ORS
469.170 (8).
{ - (14) - } { + (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 { - shall - }
{ + may + } not exceed the cost to the taxpayer for the
acquisition, construction and installation of the alternative
energy device { - or solar electric system - } .
SECTION 30. 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 { - and solar electric systems - } .
(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 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 further define an alternative fuel
vehicle, related equipment or fueling station necessary to
operate an alternative fuel vehicle, that govern the computation
Enrolled House Bill 3201 (HB 3201-B) Page 26
of costs eligible for credit and that 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.
SECTION 31. ORS 469.170 is amended to read:
469.170. (1) Any person may claim a tax credit under ORS
316.116 (or ORS 317.115, if the person is a corporation) if the
person:
(a) Meets the requirements of ORS 316.116 (or ORS 317.115, if
applicable);
(b) Meets the requirements of ORS 469.160 to 469.180; and
(c) Pays, subject to subsection (9) of this section, all or a
portion of the costs of an alternative energy device { - or a
solar electric system - } .
(2) A credit under ORS 317.115 may be claimed only if the
alternative energy device is a fueling station necessary to
operate an alternative fuel vehicle.
(3)(a) In order to be eligible for a tax credit under ORS
316.116 or 317.115, a person claiming a tax credit for
construction or installation of an alternative energy device
(including a fueling station) { - or a solar electric
system - } shall have the device { - or system - } certified
by the State Department of Energy or constructed or installed by
a contractor certified by the department under subsection (5) of
this section. This paragraph does not apply to an alternative
fuel vehicle or to related equipment.
(b) Certification of an alternative fuel vehicle or related
equipment shall be accomplished under rules that shall be adopted
by the Director of the State Department of Energy.
(4) Verification of the purchase, construction or installation
of an alternative energy device { - or solar electric
system - } shall be made in writing on a form provided by the
Department of Revenue and, if applicable, shall contain:
(a) The location of the alternative energy device { - or
solar electric system - } ;
(b) A description of the type of device { - or system - } ;
(c) If the device { - or system - } was constructed or
installed by a contractor, evidence that the contractor has any
license, bond, insurance and permit required to sell and
construct or install the alternative energy device { - or solar
electric system - } ;
(d) If the device { - or system - } was constructed or
installed by a contractor, a statement signed by the contractor
that the applicant has received:
(A) A statement of the reasonably expected energy savings of
the device { - or system - } ;
(B) A copy of consumer information published by the State
Department of Energy;
(C) An operating manual for the alternative energy device
{ - or solar electric system - } ; and
(D) A copy of the contractor's certification certificate or
alternative energy device system certificate for the alternative
energy device { - or solar electric system - } , as
appropriate;
(e) If the device { - or system - } was not constructed or
installed by a contractor, evidence that:
(A) The State Department of Energy has issued an alternative
energy device system certificate for the alternative energy
device
{ - or solar electric system - } ; and
Enrolled House Bill 3201 (HB 3201-B) Page 27
(B) The taxpayer has obtained all building permits required for
construction or installation of the device { - or system - } ;
(f) A statement, signed by both the taxpayer claiming the
credit and the contractor if the device { - or system - } was
constructed or installed by a contractor, that the construction
or installation meets all the requirements of ORS 469.160 to
469.180 or, if the device is a fueling station and the taxpayer
is the contractor, a statement signed by the contractor that the
construction or installation meets all of the requirements of ORS
469.160 to 469.180;
(g) The date the alternative energy device { - or solar
electric system - } was purchased;
(h) The date the alternative energy device { - or solar
electric system - } was placed in service; and
(i) Any other information that the Director of the State
Department of Energy or the Department of Revenue determines is
necessary.
(5)(a) When the State Department of Energy finds that an
alternative energy device { - or solar electric system - } can
meet the standards adopted under ORS 469.165, the Director of the
State Department of Energy may issue a contractor system
certification to the person selling and constructing or
installing the alternative energy device { - or solar electric
system - } .
(b) Any person who sells or installs more than 12 alternative
energy devices { - or solar electric systems - } in one year
shall apply for a contractor system certification. An application
for a contractor system certification shall be made in writing on
a form provided by the State Department of Energy and shall
contain:
(A) A statement that the contractor has any license, bonding,
insurance and permit that is required for the sale and
construction or installation of the alternative energy device
{ - or solar electric system - } ;
(B) A specific description of the alternative energy device
{ - or solar electric system - } , including, but not limited
to, the material, equipment and mechanism used in the device
{ - or system - } , operating procedure, sizing and siting
method and construction or installation procedure;
(C) The addresses of three installations of the device { - or
system - } that are available for inspection by the State
Department of Energy;
(D) The range of installed costs to purchasers of the device
{ - or system - } ;
(E) Any important construction, installation or operating
instructions; and
(F) Any other information that the State Department of Energy
determines is necessary.
(c) A new application for contractor system approval shall be
filed when there is a change in the information supplied under
paragraph (b) of this subsection.
(d) The State Department of Energy may issue contractor system
certificates to each contractor who on October 3, 1989, has a
valid dealer system certification, which shall authorize the sale
and installation of the same domestic water heating alternative
energy devices authorized by the dealer certification.
(e) If the State Department of Energy finds that an alternative
energy device { - or solar electric system - } can meet the
standards adopted under ORS 469.165, the Director of the State
Department of Energy may issue an alternative energy device
Enrolled House Bill 3201 (HB 3201-B) Page 28
system certificate to the taxpayer constructing or installing or
having an alternative energy device { - or solar electric
system - } constructed or installed.
(f) An application for an alternative energy device system
certificate shall be made in writing on a form provided by the
State Department of Energy and shall contain:
(A) A specific description of the alternative energy device
{ - or solar electric system - } , including, but not limited
to, the material, equipment and mechanism used in the device
{ - or system - } , operating procedure, sizing, siting method
and construction or installation procedure;
(B) The constructed or installed cost of the device { - or
system - } ; and
(C) A statement that the taxpayer has all permits required for
construction or installation of the device { - or system - } .
(6) To claim the tax credit, the verification form described in
subsection (4) of this section shall be submitted with the
taxpayer's tax return for the year the alternative energy device
{ - or solar electric system - } is placed in service or the
immediately succeeding tax year. A copy of the contractor's
certification certificate, alternative energy device system
certificate or alternative fuel vehicle or related equipment
certificate also shall be submitted.
(7) The verification form and contractor's certificate,
alternative energy device system certificate or alternative fuel
vehicle or related equipment certificate described under this
section shall be effective for purposes of tax relief allowed
under ORS 316.116 or 317.115.
(8) The verification form and contractor's certificate
described under this section may be transferred to the first
purchaser of a dwelling or, in the case of construction or
installation of a fueling station in an existing dwelling, the
current owner, who intends to use or is using the dwelling as a
principal or secondary residence.
(9) Any person that pays the present value of the tax credit
for an alternative energy device { - or solar electric
system - } provided under ORS 316.116 or 317.115 and 469.160 to
469.180 to the person who constructs or installs the alternative
energy device { - or solar electric system - } shall be
entitled to claim the credit in the manner and subject to rules
adopted by the Department of Revenue to carry out the purposes of
this subsection. The State Department of Energy may establish by
rule uniform discount rates to be used in calculating the present
value of a tax credit under this subsection.
SECTION 32. ORS 469.172 is amended to read:
469.172. The following devices are not eligible for the tax
credit under ORS 316.116:
(1) Standard efficiency furnaces;
(2) Standard back-up heating systems;
(3) Woodstoves or wood furnaces, or any part of a heating
system that burns wood { + , unless the woodstove, furnace or
system constitutes a premium efficiency biomass combustion device
described in ORS 469.160 (4)(i) + };
(4) Heat pump water heaters that are part of a geothermal heat
pump space heating system;
(5) Structures that cover or enclose a swimming pool;
(6) Swimming pools, hot tubs or spas used to store heat;
(7) Above ground, uninsulated swimming pools, hot tubs or spas;
(8) Photovoltaic systems installed on recreational vehicles;
Enrolled House Bill 3201 (HB 3201-B) Page 29
(9) Conversion of an existing alternative energy device
{ - or solar electric system - } to another type of alternative
energy device { - or solar electric system - } ;
(10) Repair or replacement of an existing alternative energy
device { - or solar electric system - } ;
(11) A { - solar electric system - } { + category two
alternative energy device + }, if the equipment or other property
that comprises the { - solar electric system - } { + category
two alternative energy device + } is { - also - } the basis
for an allowed credit for { - an - } { + a category one + }
alternative energy device under ORS 316.116;
(12) { - An - } { + A category one + } alternative energy
device, if the equipment or other property that comprises the
{ + category one + } alternative energy device is also the basis
for an allowed credit for a { - solar electric system - } { +
category two alternative energy device + } under ORS 316.116; or
(13) Any other device identified by the State Department of
Energy. The department may adopt rules defining standards for
eligible and ineligible devices under this section.
SECTION 33. ORS 469.176 is amended to read:
469.176. (1) Except for alternative fuel vehicles or related
equipment, in order to carry out ORS 469.160 to 469.180, the
State Department of Energy shall develop performance assumptions
and prescriptive measures to determine the eligibility and tax
credit amount for alternative energy devices { - and solar
electric systems - } constructed or installed in a dwelling.
(2) The department shall use the performance assumptions and
prescriptive measures to develop information for the Department
of Revenue to use to allow taxpayers to determine their
eligibility and tax credit amount. The State Department of Energy
may review this information on an annual basis to take into
consideration new technology and performance assumption accuracy.
(3) For the purpose of determining the first year energy yield
of an alternative energy device, the department shall use the
following assumptions and test standards:
(a) Solar Rating and Certification Corporation standard SRCC
100, 200, American Society of Heating, Refrigerating and
Air-Conditioning Engineers 93-77, or the American Refrigeration
Institute standard 325-85 test at 50 degrees entering water
temperature, as appropriate. The testing requirements under this
paragraph shall not apply to an owner-built alternative energy
device.
(b) For an alternative energy device used as a source for
domestic water heating energy, a hot water use of 75 gallons per
day at 120 degrees Fahrenheit. The load of 75 gallons per day at
120 degrees Fahrenheit shall be achieved by including
conservation measures in the construction or installation of the
alternative energy device.
(c) For an alternative energy device used as a source for space
heating or cooling, the heating or cooling energy load as
determined by a heat loss or gain calculation performed in
accordance with the methods established by the American Society
of Heating, Refrigerating and Air-Conditioning Engineers. Except
for an owner-built or site-built system, an alternative energy
device used as a source for domestic hot water heating must meet
the SRCC OG 300 systems test or comply with comparable
requirements as determined by the department.
(d) For an alternative energy device used as a source for
electrical energy, the first year energy yield shall be based
Enrolled House Bill 3201 (HB 3201-B) Page 30
upon the electrical energy load of the dwelling as determined
according to the procedure established by the department.
(e) For an alternative energy device used as a source for
swimming pool, spa or hot tub heating, the first year energy
yield shall be based on the heating load of the swimming pool,
spa or hot tub as determined according to the procedure
established by the department.
SECTION 34. ORS 469.180 is amended to read:
469.180. (1) Upon the Department of Revenue's own motion, or
upon request of the State Department of Energy, the Department of
Revenue may initiate proceedings for the forfeiture of a tax
credit allowed under ORS 316.116 or 317.115 if:
(a) The verification was fraudulent because of a
misrepresentation by the taxpayer or investor owned utility;
(b) The verification was fraudulent because of a
misrepresentation by the contractor;
(c) In the case of { - a solar electric system or - } an
alternative energy device other than an alternative fuel vehicle
or related equipment, the { - solar electric system or - }
alternative energy device has not been constructed, installed or
operated in substantial compliance with the requirements of ORS
469.160 to 469.180; or
(d) The taxpayer or investor owned utility failed to consent to
an inspection of the constructed or installed alternative energy
device { - or solar electric system - } by the State
Department of Energy after a reasonable, written request for such
an inspection by the State Department of Energy. This paragraph
does not apply to an alternative fuel vehicle or to related
equipment.
(2) Pursuant to the procedures for a contested case under ORS
chapter 183, the Director of the State Department of Energy may
order the revocation of a contractor certificate issued under ORS
469.170 if the director finds that:
(a) The contractor certificate was obtained by fraud or
misrepresentation by the contractor certificate holder;
(b) The contractor's performance for the alternative energy
device { - or solar electric system - } for which the
contractor is issued a certificate under ORS 469.170 does not
meet industry standards; or
(c) The contractor has misrepresented to the customer either
the tax credit program or the nature or quality of the
alternative energy device { - or solar electric system - } .
(3) If the tax credit allowed under ORS 316.116 or 317.115 for
the purchase, construction or installation of an alternative
energy device { - or solar electric system - } is ordered
forfeited due to an action of the taxpayer or investor owned
utility under subsection (1)(a), (c) or (d) of this section, all
prior tax relief provided to the taxpayer or investor owned
utility shall be forfeited and the Department of Revenue shall
proceed to collect those taxes not paid by the taxpayer or
utility as a result of the tax credit relief under ORS 316.116 or
317.115.
(4) If the tax credit for the construction or installation of
an alternative energy device { - or solar electric system - }
is ordered forfeited due to an action of the contractor under
subsection (1)(b) of this section, the Department of Revenue
shall proceed to collect, from the contractor, an amount
equivalent to those taxes not paid by the taxpayer or investor
owned utility as a result of the tax credit relief under ORS
316.116 or 317.115. As long as the forfeiture is due to an action
Enrolled House Bill 3201 (HB 3201-B) Page 31
of the contractor and not to an action of the taxpayer or
utility, the assessment of such taxes shall be levied on the
contractor and not on the taxpayer or utility. Notwithstanding
ORS 314.835, the Department of Revenue may disclose information
from income tax returns or reports to the extent such disclosure
is necessary to collect amounts from contractors under this
subsection.
(5) In order to obtain information necessary to verify
eligibility and amount of the tax credit, the State Department of
Energy or its representative may inspect an alternative energy
device { - or solar electric system - } that has been
purchased, constructed or installed. The inspection shall be made
only with the consent of the owner of the dwelling. Failure to
consent to the inspection is grounds for the forfeiture of any
tax credit relief under ORS 316.116 or 317.115. The Department of
Revenue shall proceed to collect any taxes due according to
subsection (4) of this section. For electrical generating
alternative energy devices { - or solar electric systems - } ,
the State Department of Energy may obtain energy consumption
records for the dwelling the device { - or system - } serves,
for a 12-month period, in order to verify eligibility and amount
of the tax credit.
SECTION 35. Section 5a, chapter 832, Oregon Laws 2005, is
amended to read:
{ + Sec. 5a. + } A taxpayer may not be allowed a credit under
ORS 316.116 if the first tax year for which the credit would
otherwise be allowed with respect to an alternative energy device
{ - , solar electric system - } or alternative fuel vehicle or
related equipment is on or after January 1, 2016.
SECTION 36. { + The amendments to ORS 316.116, 469.160,
469.165, 469.170, 469.172, 469.176 and 469.180 and section 5a,
chapter 832, Oregon Laws 2005, by sections 28 to 35 of this 2007
Act apply to alternative energy devices constructed or installed
on or after January 1, 2007. + }
SECTION 37. { + Sections 38, 41 and 44 of this 2007 Act are
added to and made a part of ORS chapter 468A. + }
SECTION 38. { + As used in this section and sections 41, 44,
47, 48, 50 and 51 of this 2007 Act:
(1) 'Combined weight' has the meaning given that term in ORS
825.005.
(2) 'Cost-effectiveness threshold' means the cost, in dollars,
per ton of diesel particulate matter reduced, as established by
rule of the Environmental Quality Commission.
(3) 'Heavy-duty truck' means a motor vehicle or combination of
vehicles operated as a unit that has a combined weight that is
greater than 26,000 pounds.
(4) 'Incremental cost' means the cost of a qualifying repower
or retrofit less a baseline cost that would otherwise be incurred
in the normal course of business.
(5) 'Medium-duty truck' means a motor vehicle or combination of
vehicles operated as a unit that has a combined weight that is
greater than 14,000 pounds but less than or equal to 26,000
pounds.
(6) 'Motor vehicle' has the meaning given that term in ORS
825.005.
(7) 'Nonroad Oregon diesel engine' means any Oregon diesel
engine that was not designed primarily to propel a motor vehicle
on public highways of this state.
(8) 'Oregon diesel engine' means an engine at least 50 percent
of the use of which, as measured by miles driven or hours
Enrolled House Bill 3201 (HB 3201-B) Page 32
operated, will occur in Oregon for the three years following the
repowering or retrofitting of the engine.
(9) 'Oregon diesel truck engine' means a diesel engine in a
truck at least 50 percent of the use of which, as measured by
miles driven or hours operated, has occurred in Oregon for the
two years preceding the scrapping of the engine.
(10) 'Public highway' has the meaning given that term in ORS
825.005.
(11) 'Repower' means to scrap an old diesel engine and replace
it with a new engine, a used engine or a remanufactured engine,
or with electric motors, drives or fuel cells, with a minimum
useful life of seven years.
(12) 'Retrofit' means to equip a diesel engine with new
emissions-reducing parts or technology after the manufacture of
the original engine. A retrofit must use the greatest degree of
emissions reduction available for the particular application of
the equipment retrofitted that meets the cost-effectiveness
threshold.
(13) 'Scrap' means to destroy and render inoperable.
(14) 'Truck' means a motor vehicle or combination of vehicles
operated as a unit that has a combined weight that is greater
than 14,000 pounds. + }
SECTION 39. Section 38 of this 2007 Act is amended to read:
{ + Sec. 38. + } As used in this section and sections 41
{ - , - } { + and + } 44 { - , 47, 48, 50 and 51 - } of this
2007 Act:
(1) 'Combined weight' has the meaning given that term in ORS
825.005.
(2) 'Cost-effectiveness threshold' means the cost, in dollars,
per ton of diesel particulate matter reduced, as established by
rule of the Environmental Quality Commission.
(3) 'Heavy-duty truck' means a motor vehicle or combination of
vehicles operated as a unit that has a combined weight that is
greater than 26,000 pounds.
(4) 'Incremental cost' means the cost of a qualifying repower
or retrofit less a baseline cost that would otherwise be incurred
in the normal course of business.
(5) 'Medium-duty truck' means a motor vehicle or combination of
vehicles operated as a unit that has a combined weight that is
greater than 14,000 pounds but less than or equal to 26,000
pounds.
(6) 'Motor vehicle' has the meaning given that term in ORS
825.005.
(7) 'Nonroad Oregon diesel engine' means any Oregon diesel
engine that was not designed primarily to propel a motor vehicle
on public highways of this state.
(8) 'Oregon diesel engine' means an engine at least 50 percent
of the use of which, as measured by miles driven or hours
operated, will occur in Oregon for the three years following the
repowering or retrofitting of the engine.
(9) 'Oregon diesel truck engine' means a diesel engine in a
truck at least 50 percent of the use of which, as measured by
miles driven or hours operated, has occurred in Oregon for the
two years preceding the scrapping of the engine.
(10) 'Public highway' has the meaning given that term in ORS
825.005.
(11) 'Repower' means to scrap an old diesel engine and replace
it with a new engine, a used engine or a remanufactured engine,
or with electric motors, drives or fuel cells, with a minimum
useful life of seven years.
Enrolled House Bill 3201 (HB 3201-B) Page 33
(12) 'Retrofit' means to equip a diesel engine with new
emissions-reducing parts or technology after the manufacture of
the original engine. A retrofit must use the greatest degree of
emissions reduction available for the particular application of
the equipment retrofitted that meets the cost-effectiveness
threshold.
(13) 'Scrap' means to destroy and render inoperable.
(14) 'Truck' means a motor vehicle or combination of vehicles
operated as a unit that has a combined weight that is greater
than 14,000 pounds.
SECTION 40. { + The amendments to section 38 of this 2007 Act
by section 39 of this 2007 Act become operative on January 2,
2018. + }
SECTION 41. { + (1) The Environmental Quality Commission by
rule shall establish standards related to the certified cost
necessary to perform a qualifying repower or retrofit, including
but not limited to rules establishing the certified cost for
purposes of the tax credit established in section 47 of this 2007
Act.
(2) For the purposes of subsection (1) of this section,
certified cost:
(a) May not exceed the incremental cost of labor and hardware
that the Department of Environmental Quality finds necessary to
perform a qualifying repower or retrofit;
(b) Does not include the cost of any portion of a repower or
retrofit undertaken to comply with any applicable local, state or
federal pollution or emissions law or for ordinary maintenance,
repair or replacement of a diesel engine; and
(c) May not exceed the cost-effectiveness threshold. + }
SECTION 42. Section 41 of this 2007 Act is amended to read:
{ + Sec. 41. + } (1) The Environmental Quality Commission by
rule shall establish standards related to the certified cost
necessary to perform a qualifying repower or retrofit { - ,
including but not limited to rules establishing the certified
cost for purposes of the tax credit established in section 47 of
this 2007 Act - } .
(2) For the purposes of subsection (1) of this section,
certified cost:
(a) May not exceed the incremental cost of labor and hardware
that the Department of Environmental Quality finds necessary to
perform a qualifying repower or retrofit;
(b) Does not include the cost of any portion of a repower or
retrofit undertaken to comply with any applicable local, state or
federal pollution or emissions law or for ordinary maintenance,
repair or replacement of a diesel engine; and
(c) May not exceed the cost-effectiveness threshold.
SECTION 43. { + The amendments to section 41 of this 2007 Act
by section 42 of this 2007 Act become operative on January 2,
2018. + }
SECTION 44. { + (1) The Environmental Quality Commission by
rule shall establish standards for the qualifying repower of a
nonroad Oregon diesel engine or retrofit of an Oregon diesel
engine, including but not limited to rules establishing repower
or retrofit qualifications for purposes of the tax credit
established in section 47 of this 2007 Act.
(2) The standards adopted by the commission under this section
must include:
(a) A requirement for the reduction of diesel particulate
matter emissions by at least 25 percent compared with the
baseline emissions for the relevant engine year and application;
Enrolled House Bill 3201 (HB 3201-B) Page 34
(b) A list of technologies approved as qualifying repowers or
retrofits that have been verified by the United States
Environmental Protection Agency or the California Air Resources
Board; and
(c) A requirement that a qualifying repower or retrofit does
not include the repower or retrofit of a vehicle or engine for
which a tax credit under section 47 of this 2007 Act has been
allowed, unless the repower or retrofit will reduce emissions
further than the repower or retrofit funded by the tax
credit. + }
SECTION 45. Section 44 of this 2007 Act is amended to read:
{ + Sec. 44. + } (1) The Environmental Quality Commission by
rule shall establish standards for the qualifying repower of a
nonroad Oregon diesel engine or retrofit of an Oregon diesel
engine { - , including but not limited to rules establishing
repower or retrofit qualifications for purposes of the tax credit
established in section 47 of this 2007 Act - } .
(2) The standards adopted by the commission under this section
must include:
(a) A requirement for the reduction of diesel particulate
matter emissions by at least 25 percent compared with the
baseline emissions for the relevant engine year and application;
{ + and + }
(b) A list of technologies approved as qualifying repowers or
retrofits that have been verified by the United States
Environmental Protection Agency or the California Air Resources
Board { - ; and - } { + . + }
{ - (c) A requirement that a qualifying repower or retrofit
does not include the repower or retrofit of a vehicle or engine
for which a tax credit under section 47 of this 2007 Act has been
allowed, unless the repower or retrofit will reduce emissions
further than the repower or retrofit funded by the tax
credit. - }
SECTION 46. { + The amendments to section 44 of this 2007 Act
by section 45 of this 2007 Act become operative on January 2,
2018. + }
SECTION 47. { + (1) A personal income or corporate income or
excise taxpayer is allowed a credit against the taxes that are
otherwise due under ORS chapter 316, 317 or 318 for the certified
costs of a repower of a nonroad Oregon diesel engine or retrofit
of an Oregon diesel engine that occurs after the effective date
of this 2007 Act if:
(a) The repower or retrofit has been identified as qualifying
for the credit under rules adopted by the Environmental Quality
Commission under section 44 of this 2007 Act;
(b) The engine will constitute an Oregon diesel engine; and
(c) The taxpayer has obtained a tax credit cost certification
from the Department of Environmental Quality under section 51 of
this 2007 Act for the cost of the repower or retrofit.
(2) The maximum amount of the tax credit allowed under this
section is limited to:
(a) 25 percent of the certified cost of each qualifying
repower; and
(b) 50 percent of the certified cost of each qualifying
retrofit.
(3) The amount of the tax credit allowed to the taxpayer under
this section in any one tax year may not exceed the tax liability
of the taxpayer for the tax year.
(4) Any tax credit that is allowed under this section, but
limited by subsection (3) of this section, and that is not used
Enrolled House Bill 3201 (HB 3201-B) Page 35
by the taxpayer in a particular tax year may be carried forward
and offset against the taxpayer's tax liability as prescribed in
subsection (3) of this section for the next succeeding tax year.
Any credit remaining unused in the next succeeding tax year may
be carried forward and offset against the taxpayer's tax
liability as prescribed in subsection (3) of this section for the
second succeeding tax year. Any credit remaining unused in the
second succeeding tax year may be carried forward and offset
against the taxpayer's tax liability as prescribed in subsection
(3) of this section for the third succeeding tax year, but may
not be carried forward for any tax year thereafter.
(5) The credit allowed under this section is not in lieu of any
depreciation or amortization deduction for the engine to which
the taxpayer otherwise may be entitled for purposes of ORS
chapter 316, 317 or 318. The taxpayer's adjusted basis for
determining gain or loss may not be decreased by any tax credits
allowed under this section.
(6)(a) The Department of Revenue may disallow the credit
allowed under this section if the department finds that the
credit was obtained by fraud or misrepresentation, or if the
department learns that the engine that was the subject of the
qualifying repower or retrofit was destroyed by arson committed
by the taxpayer, or if the engine no longer meets the
requirements for obtaining the tax credit.
(b) If the tax credit is disallowed pursuant to this
subsection, notwithstanding ORS 314.410 or other law, all prior
tax relief provided to the taxpayer shall be forfeited, the
department shall proceed to collect those taxes not paid by the
taxpayer as a result of the prior granting of the credit and the
taxpayer shall be denied any further credit provided under this
section.
(c) The department may perform activities necessary to ensure
that recipients of the tax credit comply with applicable
requirements.
(7)(a) A nonresident individual shall be allowed the credit
computed in the same manner and subject to the same limitations
as the credit allowed a resident by this section. However, the
credit shall be prorated using the proportion provided in ORS
316.117.
(b) 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.
(c) 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.
(8) The taxpayer shall claim the credit on a form prescribed by
the Department of Revenue containing the information required by
the Department of Revenue. The taxpayer shall maintain the tax
credit cost certification issued by the Department of
Environmental Quality under section 51 of this 2007 Act in the
records of the taxpayer for the length of time prescribed by the
Department of Revenue and shall provide a copy of the cost
certification to the Department of Revenue if requested.
(9) A taxpayer may not claim a credit under this section and
ORS 315.304 with respect to the same diesel engine or group of
diesel engines. A taxpayer may claim a credit under this section
and under ORS 469.185 to 469.225 with respect to the same diesel
Enrolled House Bill 3201 (HB 3201-B) Page 36
engine or group of diesel engines if the taxpayer and diesel
engines otherwise meet the requirements to be allowed a tax
credit under ORS 469.185 to 469.225. + }
SECTION 48. { + (1) A person that has obtained a tax credit
cost certification from the Department of Environmental Quality
under section 51 of this 2007 Act may transfer the cost
certification to a personal income or corporate income or excise
taxpayer in exchange for consideration from the taxpayer.
(2) In order for a credit under section 47 of this 2007 Act to
be claimed by a person that does not own the repowered or
retrofitted engine that qualifies for the credit, the person that
received the tax credit cost certification and the taxpayer that
will claim the credit must jointly file a cost certification
transfer notice with the Department of Revenue to transfer the
cost certification to the taxpayer. The transfer notice shall be
on a form prescribed by the department and shall contain any
information required by the department.
(3) The cost certification transfer notice shall be filed with
the Department of Revenue prior to the first tax year for which a
credit will be claimed under section 47 of this 2007 Act. A
transfer is not allowed under this section if the transferor has
claimed any portion of the credit allowed under section 47 of
this 2007 Act. + }
SECTION 49. { + Sections 47 and 48 of this 2007 Act apply to
diesel engine repower and retrofit tax credit cost certifications
issued in tax years beginning on or after January 1, 2008. + }
SECTION 50. { + (1) The Environmental Quality Commission shall
adopt rules to implement this section and sections 47, 48 and 51
of this 2007 Act, including rules:
(a) Imposing a nonrefundable application fee of $50 for
applications for cost certification of repowers or retrofits that
qualify for the tax credit allowed under section 47 of this 2007
Act.
(b) Imposing a nonrefundable application processing fee. The
amount of the fee shall be the amount that in the judgment of the
commission is needed for the Department of Environmental Quality
to recoup its expenses in administering the tax credit cost
certification under section 51 of this 2007 Act.
(2) The Environmental Quality Commission shall consult with the
Department of Revenue prior to adopting or amending rules under
this section. + }
SECTION 51. { + (1) A person seeking a tax credit under
section 47 of this 2007 Act or a person seeking to transfer a tax
credit cost certification under section 48 of this 2007 Act shall
first apply to the Department of Environmental Quality for
certification of the cost of a repower or retrofit of an engine
that qualifies for the tax credit under section 47 of this 2007
Act.
(2) The application must contain the following information:
(a) The name, address and taxpayer identification number of the
taxpayer;
(b) A statement that the engine on which the repower or
retrofit was performed is owned by the applicant and is intended
to be an Oregon diesel engine;
(c) A description of the technologies used in the repower or
retrofit that are sufficient for the department to determine if
the repower or retrofit qualifies for the tax credit;
(d) Invoices or other documentation of the cost and payment of
the repower or retrofit; and
Enrolled House Bill 3201 (HB 3201-B) Page 37
(e) Any other information required by the department or
required under rules adopted by the Environmental Quality
Commission.
(3) The taxpayer shall file the application within one year
following the date of the invoice for the qualifying repower or
retrofit. The application may not be accepted unless the
application includes payment of the nonrefundable fees imposed
under rules adopted under section 50 of this 2007 Act.
(4) The department shall consider completed applications and
determine if the application describes a repower or retrofit that
qualifies for a tax credit under section 47 of this 2007 Act and,
if qualified, the certified cost of the repower or retrofit. In
determining the amount of a tax credit under this section, the
department shall reduce the incremental cost of a qualifying
repower or retrofit by the value of any existing financial
incentive that directly reduces the cost of the qualifying
repower or retrofit, including tax credits, grants, loans or any
other public financial assistance. The department shall send
written notice of the certified cost to the taxpayer. + } { +
The department may not certify more than $3 million of tax
credits under this section during each calendar year. + } { +
(5) If the department determines that a repower or retrofit
does not qualify for a tax credit under section 47 of this 2007
Act or certifies a lesser amount than was sought in the
application, the taxpayer may appeal the determination as a
contested case under ORS chapter 183.
(6) The department shall deposit fees collected under this
section in a miscellaneous receipts account established in the
State Treasury for the benefit of the department. Amounts in the
account are continuously appropriated to the department for the
purpose of reimbursing the department for expenses incurred in
administering this section. + }
SECTION 52. { + Sections 47, 48, 50 and 51 of this 2007 Act
are repealed on January 2, 2018. + }
SECTION 53. Section 28, chapter 618, Oregon Laws 2003, is
amended to read:
{ + Sec. 28. + } (1) As used in this section and section
29 { + , chapter 618, Oregon Laws 2003 + } { - of this 2003
Act - } :
(a) 'Combined weight' has the meaning given that term in ORS
825.005.
(b) 'Motor vehicle' has the meaning given that term in ORS
825.005.
(c) 'Truck' means a motor vehicle or combination of vehicles
that has a combined weight of more than 26,000 pounds.
(2) A taxpayer who owns a truck that is registered in Oregon
under the provisions of ORS chapter 803 or 826 and that has a
diesel engine that was purchased in Oregon on or after { - the
effective date of this 2003 Act - } { + the effective date of
this 2007 Act + }, and that is certified by the federal
Environmental Protection Agency to emit { - oxides of
nitrogen - } { + particulate matter + } at the rate of
{ - 2.5 - } { + 0.01 + } grams per brake horsepower-hour or
less, is allowed a credit against the taxes otherwise due under
ORS chapter 316, if the taxpayer is a resident individual, or
against the taxes otherwise due under ORS chapter 317, if the
taxpayer is a corporation. The total amount of the credit under
this section depends on the number of trucks owned by the
taxpayer prior to the purchase, as follows:
(a) 1 to 10 trucks, $925 for each qualifying engine purchased.
Enrolled House Bill 3201 (HB 3201-B) Page 38
(b) 11 to 50 trucks, $705 for each qualifying engine purchased.
(c) 51 to 100 trucks, $525 for each qualifying engine
purchased.
(d) More than 100 trucks, $400 for each qualifying engine
purchased.
(3) Notwithstanding subsection (2) of this section, a taxpayer
may not claim a credit under this section of more than $80,000
for purchases in any one year.
(4) A credit may not be allowed under this section unless the
taxpayer claiming the credit complies with rules adopted by the
{ - Department of - } Environmental Quality
{ + Commission + } and the Department of Revenue as provided in
section 29 { + , chapter 618, Oregon Laws 2003 + } { - of this
2003 Act - } .
(5) Except as provided under subsection (6) of this section,
the credit allowed in any one year may not exceed the tax
liability of the taxpayer.
(6) 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, any credit not used in the second
succeeding tax year may be carried forward and used in the third
succeeding tax year and any credit not used in the 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.
(7)(a) The credit provided by this section is not in lieu of
any depreciation or amortization deduction for the truck to which
the taxpayer otherwise may be entitled under ORS chapter 316 or
317 for the tax year.
(b) The taxpayer's adjusted basis for determining gain or loss
may not be further decreased by any tax credit allowed under this
section.
(8)(a) Pursuant to the procedures for a contested case under
ORS { - 183.310 to 183.550 - } { + chapter 183 + }, the
Department of Revenue may order the disallowance of the credit
allowed under this section if it finds, by order, that the credit
was obtained by fraud or misrepresentation.
(b) If the tax credit is disallowed pursuant to this
subsection, notwithstanding ORS 314.410 or other law, all prior
tax relief provided to the taxpayer shall be forfeited and the
Department of Revenue shall proceed to collect those taxes not
paid by the taxpayer as a result of the prior granting of the
credit.
(c) If the tax credit is disallowed pursuant to this
subsection, the taxpayer shall be denied any further credit
provided under this section from and after the date that the
order of disallowance becomes final.
(9) If the engine is destroyed by fire, flood, natural disaster
or act of God before all of the credit has been used, the
taxpayer may nevertheless claim the credit as if no destruction
had taken place. In the event of fire, if the fire chief of the
fire protection district or unit determines that the fire was
caused by arson, as described in ORS 164.315 and 164.325, by the
taxpayer or by another at the taxpayer's direction, then the fire
chief shall notify the Department of Revenue. If the taxpayer is
convicted of arson, the Department of Revenue shall disallow the
credit in accordance with subsection (8) of this section.
Enrolled House Bill 3201 (HB 3201-B) Page 39
(10)(a) A nonresident individual shall be allowed the credit
compu