Bill Text: OR HB2994 | 2013 | Regular Session | Introduced

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Bill Title: Relating to tax credits for educational expenses; prescribing an effective date.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2994 Detail]

Download: Oregon-2013-HB2994-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 2464

                         House Bill 2994

Sponsored by Representative PARRISH; Representative ESQUIVEL,
  Senator KNOPP

                             SUMMARY

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

  Creates tax credit for educational expenses paid for special
needs student attending private school or public school charging
tuition.
  Applies to tax years beginning on or after January 1, 2013.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to tax credits for educational expenses; and prescribing
  an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 and 3 of this 2013 Act are added to
and made a part of ORS chapter 315. + }
  SECTION 2.  { + As used in this section and section 3 of this
2013 Act:
  (1) 'Eligible student' means a student who:
  (a) Is a resident of this state;
  (b) Is five years of age or older but not more than 21 years of
age;
  (c) Has not graduated from high school;
  (d) Is enrolled in a private school or a school charging
tuition under ORS 339.141 during the tax year for which the
credit under section 3 of this 2013 Act is claimed; and
  (e) Was enrolled in a public elementary or secondary school for
at least 140 school days during a 12-month period that ends
during the tax year for which the credit under section 3 of this
2013 Act is claimed.
  (2) 'Eligible student with special needs' means an eligible
student:
  (a)(A) Who has been identified as being a child with a
disability as defined in ORS 343.035; or
  (B) Has an individualized education program as described in ORS
343.151; and
  (b) Receives special education or related services on a daily
basis.
  (3) 'Related services' has the meaning given that term in ORS
343.035.
  (4) 'Special education' has the meaning given that term in ORS
342.360. + }
  SECTION 3.  { + (1) A credit against the taxes otherwise due
under ORS chapter 316 shall be allowed for expenses actually paid
or incurred during the tax year on behalf of an eligible student
with special needs for whom the taxpayer is entitled to deduct a
personal exemption under section 151(c) of the Internal Revenue
Code for the tax year. The amount of the credit allowed under
this subsection shall equal the amount paid in tuition and
special education and related services expenses, not to exceed
$6,000 per tax year multiplied by the number of students for
which the taxpayer is claiming the credit.
  (2) A credit allowed under this section in one tax year may not
exceed the tax liability of the taxpayer.
  (3) The credit shall be claimed on a form prescribed by the
Department of Revenue that contains the information required by
the department.
  (4) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular year may be carried
forward and offset against the taxpayer's tax liability for the
next succeeding tax year. Any credit remaining unused in the next
succeeding tax year may be carried forward and used in the second
succeeding tax year, and likewise, any credit not used in that
second succeeding tax year may be carried forward and used in the
third succeeding tax year, but may not be carried forward for any
tax year thereafter.
  (5) In the case of a credit allowed under this section for
purposes of ORS chapter 316:
  (a) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
  (b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
  (c) A husband and wife who file separate returns for a taxable
year may each claim a share of the tax credit that would have
been allowed on a joint return in proportion to the contribution
of each.
  (d) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed under this section shall be prorated or computed
in a manner consistent with ORS 314.085.
  (6) The Department of Revenue shall establish by rule policies
and procedures for determining eligibility of taxpayers seeking
to claim the credit allowed under this section. + }
  SECTION 4.  { + Sections 2 and 3 of this 2013 Act apply to tax
years beginning on or after January 1, 2013. + }
  SECTION 5.  { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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