Bill Text: OR HB2002 | 2013 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to analysis of tax credit legislation.

Sponsorship: Partisan Bill (Democrat 7)

Status: (Passed) 2013-07-29 - Chapter 676, (2013 Laws): Effective date January 1, 2014. [HB2002 Detail]

Download: Oregon-2013-HB2002-Introduced.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 2023

                         House Bill 2002

Sponsored by Representatives GALLEGOS, KOTEK; Representatives
  FAGAN, FREDERICK, GORSEK, GREENLICK, KOMP

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Directs Legislative Revenue Officer to submit report for each
measure that extends sunset of tax credit or creates new tax
credit. Provides that report is to be submitted to committee
related to revenue and is to analyze policy impacts and goals of
existing or new credit.
  Applies to measures introduced in odd-numbered year regular
sessions beginning on or after January 1, 2015.

                        A BILL FOR AN ACT
Relating to analysis of tax credit legislation.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2013 Act is added to and made
a part of ORS chapter 315. + }
  SECTION 2.  { + (1) For each measure reported out of a
committee of the Legislative Assembly, the effect of which is to
extend the time of applicability of an income or excise tax
credit or to create a tax credit, the Legislative Revenue Officer
shall submit a report to a committee of the Legislative Assembly
related to revenue.
  (2) For each existing or proposed credit, the report required
in subsection (1) of this section shall set forth:
  (a) The public policy purpose of the credit.
  (b) The expected timeline for achieving the public policy
purpose, if a timeline exists.
  (c) The taxpayers or other entities or individuals that are
likely to benefit from allowance of the credit and those that are
intended to benefit.
  (d) The effectiveness of the credit in benefitting the targeted
taxpayers or entities.
  (e) The expected results if the credit is allowed to expire
under current law and the potential results of reducing the
impact of the credit rather than allowing it to expire.
  (f) Background information on the effect of similar credits
allowed in other states.
  (3) The report required in subsection (1) of this section shall
include analysis of the following:
  (a) Whether use of a tax credit is an effective and efficient
way to achieve the stated policy goal.
  (b) The administrative and compliance costs associated with the
credit.
  (c) Whether a direct appropriation might achieve the stated
public policy purpose of the credit more efficiently.
  (d) What other incentives, including state or local subsidies,
federal tax expenditures or subsidies are available in this state
that have a similar policy purposes.
  (e) How the credit could be modified to make it more effective
and efficient.
  (f) How the state's return on investment in allowing this
credit could best be measured, in terms of:
  (A) Creation of jobs and increased overall economic activity.
  (B) Environmental goals such as energy conservation or
improvement of air and water quality.
  (C) Social goals.
  (g) In terms of the areas set out in paragraph (f) of this
subsection, how the credit ranks compared to other credits that
are being considered by the committee.
  (4) If the credit has a primary purpose of economic development
and job creation, the following should be addressed based on
historical evidence for existing credits and projections for new
proposed credits:
  (a) The number of jobs associated with the credit on an annual
basis;
  (b) The breakdown between permanent and temporary jobs;
  (c) The breakdown between traded sector and domestic sector
jobs;
  (d) The estimates of average wage per job; and
  (e) The estimate of tax revenue cost per job. + }
  SECTION 3.  { + Section 2 of this 2013 Act applies to measures
introduced in odd-numbered year regular sessions beginning on or
after January 1, 2015. + }
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