Bill Text: OR HB3169 | 2011 | Regular Session | Introduced
Bill Title: Relating to tax credits for reforestation; prescribing an effective date.
Spectrum: Committee Bill
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB3169 Detail]
Download: Oregon-2011-HB3169-Introduced.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 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 3584
House Bill 3169
Sponsored by COMMITTEE ON REVENUE
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.
Adjusts sunset for tax credit for reforestation. Removes
deadline for filing written request for preliminary
certification.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to tax credits for reforestation; amending ORS 315.104
and section 5, chapter 605, Oregon Laws 1987; and prescribing
an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 315.104 is amended to read:
315.104. (1) A credit against the taxes otherwise due under ORS
chapter 316 (or if the taxpayer is a corporation, under ORS
chapter 317 or 318) shall be allowed in an amount equal to 50
percent of reforestation project costs actually paid or incurred
to reforest underproductive Oregon forestlands. Such costs
include, but are not limited to, any fees established by the
State Forester under ORS 315.106 (4), site preparation, tree
planting and other silviculture treatments considered necessary
by the State Forester to establish commercial, hardwood or
softwood stands on appropriate sites. Subject to subsection (5)
of this section:
(a) One-half of the credit shall be taken in the tax year for
which the State Forester, after physical inspection of the
forestland, issues a preliminary certificate under ORS 315.106
certifying that the land qualifies as underproductive Oregon
forestland and that the reforestation project undertaken meets
the requirements of this section and the specifications
established by the State Forester and the costs appear to be
reasonable; and
(b) One-half of the credit shall be taken in the tax year for
which the State Forester, after further physical inspection of
the land and project, certifies that the new forest is
established in accordance with the specifications of the State
Forester.
(2) No credit shall be allowed under either subsection (1)(a)
or (b) of this section unless written certification containing
the following statements accompanies the claim for the credit or
is otherwise filed with the Department of Revenue:
(a) A preliminary certificate issued by the State Forester
under ORS 315.106 that the land and project meet the preliminary
specifications established by the State Forester or that the new
forest is established, whichever is applicable at the time.
(b) A statement by the landowner or person in possession of the
land that the land within the project area will be used for the
primary purpose of growing and harvesting trees of an acceptable
species.
(c) A statement that the landowner or person in possession of
the land is aware that maintenance practices, including release,
may be needed to insure that a new forest is established and will
remain established.
(3) For purposes of this section, reforestation project costs
shall not include:
(a) Costs paid or incurred to reforest any forestland that has
been commercially logged to the extent that reforestation is
required under the Oregon Forest Practices Act, except costs paid
or incurred to reforest forestland following a hardwood harvest,
conducted for the purposes of converting underproductive
forestlands, as determined by administrative rule.
(b) That portion of costs or expenses paid through a federal or
state cost share, financial assistance or other incentive
program.
(c) Those costs paid or incurred to grow Christmas trees,
ornamental trees, shrubs or plants, or those costs paid or
incurred to grow hardwood timber described under ORS 321.267 (3)
or 321.824 (3).
(d) Any costs paid or incurred to purchase or otherwise acquire
the land.
(e) The cost of purchase or other acquisition of tools and
equipment with a useful life of more than one year.
(4) To qualify for the credit:
(a) The project must be completed to specifications approved by
the State Forester.
(b) The taxpayer's portion of the project costs must be $500 or
more.
(c) The taxpayer must be a private individual, corporation,
group, Indian tribe or other native group, association or other
nonpublic legal entity owning, purchasing under recorded contract
of sale or leasing at least five acres of Oregon commercial
forestland.
{ - (d) Prior to December 31, 2012, the taxpayer must file
with the State Forester a written request for preliminary
certification under ORS 315.106. - }
(5) Any tax credit otherwise allowable under this section which
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 such
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. In all cases the taxpayer must be
the person who made the investment into the project.
(6) The credit provided by this section shall be in addition to
and not in lieu of any depreciation or amortization deduction to
which the taxpayer otherwise may be entitled with respect to the
reforestation project and the credit shall not affect the
computation of basis for the property.
(7) In compliance with ORS chapter 183, the Department of
Revenue and the State Forestry Department may adopt rules
consistent with law for carrying out the provisions of this
section.
(8) As used in this section, 'underproductive Oregon
forestlands' means Oregon commercial forestlands not meeting the
minimum stocking standards of the Oregon Forest Practices Act.
(9) If, for any reason other than those specified in subsection
(10) of this section, a new forest is not established by the last
day of the second taxable year following the taxable year for
which the preliminary certificate was issued, the State Forester
shall so report to the Department of Revenue. The report filed
under this subsection shall be the basis for the department to
recover any credit granted under subsection (1)(a) of this
section. If, however, the new forest is not established within
the time required by this subsection on account of the reasons
specified in subsection (10) of this section, any credit allowed
under subsections (1)(a) and (5) of this section shall not be
recovered but no further credit as provided under subsections
(1)(b) and (5) of this section shall be allowed.
(10) Subject to requalification under this section in the
manner applicable for the original claim, including obtaining a
new preliminary certificate, a taxpayer may claim an additional
credit or credits for reestablishing a new planting in the event
that the new forest is destroyed by a natural disaster or is not
established for reasons beyond the control of the taxpayer, if
the measures taken in completing the original or earlier project
would normally have resulted in establishing the minimum number
of trees per acre anticipated by the project.
(11) Any owner affected by a determination, regarding the
reforestation tax credit made by:
(a) The State Forester, except for a denial of a request for a
preliminary certificate due to the annual reforestation credit
cost limitation calculated under ORS 315.108, may appeal that
determination in the manner provided for in ORS 526.475 (1).
(b) The Department of Revenue, may appeal that determination in
the manner provided for in ORS 526.475 (2).
SECTION 2. Section 5, chapter 605, Oregon Laws 1987, as amended
by section 4, chapter 887, Oregon Laws 1989, section 28, chapter
746, Oregon Laws 1995, and section 3, chapter 359, Oregon Laws
2001, is amended to read:
{ + Sec. 5. + } No tax credit shall be allowed under ORS
315.104 based upon reforestation project costs if the preliminary
certificate is not issued on or before December 31,
{ - 2011 - } ___.
SECTION 3. { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 regular session of the
Seventy-sixth Legislative Assembly adjourns sine die. + }
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