Bill Text: OR HB3606 | 2011 | Regular Session | Enrolled
Bill Title: Relating to tax credits for energy facilities; and prescribing an effective date.
Sponsorship: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2011-08-02 - Chapter 693, (2011 Laws): Effective date September 29, 2011. [HB3606 Detail]
Download: Oregon-2011-HB3606-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
House Bill 3606
Sponsored by Representatives BREWER, BAILEY, Senator TELFER
CHAPTER ................
AN ACT
Relating to tax credits for energy facilities; creating new
provisions; amending ORS 315.354, 315.356 and 469.220; and
prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 315.354, as amended by section 3, chapter 76,
Oregon Laws 2010, is amended to read:
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 certified cost of the facility does not exceed
$20,000, the total amount of the credit allowable under
subsection (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
Enrolled House Bill 3606 (HB 3606-B) Page 1
credit is claimed, but may not exceed the tax liability of the
taxpayer.
(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;
(c) The taxpayer must be an eligible applicant under ORS
469.205 (1)(c); and
(d) If the alternative fuel vehicle is a gasoline-electric
hybrid vehicle not designed for electric plug-in charging, it
must be purchased before January 1, 2010.
(4) 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;
(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 any other facility.
(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.
(b) The new owner, or upon re-leasing of the facility, the new
lessor, may apply for a new certificate under ORS 469.215. The
new lessor or owner must meet the requirements of ORS 469.185 to
469.225 and may claim a tax credit under this section only if all
moneys owed to the State of Oregon have been paid, the facility
continues to operate, unless continued operation is waived by the
State Department of Energy, and all conditions in the final
certification are met. 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.
(c) 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).
{ - (d) A transferee holding a credit that has been
transferred under ORS 469.206 or 469.208 may not claim the tax
credit under this section for any tax year prior to the tax year
in which the transferee obtained the credit. - }
(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
Enrolled House Bill 3606 (HB 3606-B) Page 2
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.
(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.
(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
(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 2. ORS 315.356 is amended to read:
315.356. (1) If a taxpayer obtains a grant from the federal
government in connection with a facility that has been certified
by the Director of the State Department of Energy, the
{ - certified - } { + total + } cost of the facility shall be
reduced on a dollar for dollar basis. Any income or excise tax
credits that the taxpayer would be entitled to under ORS 315.354
and 469.185 to 469.225 after any reduction described in this
subsection may not be reduced by the federal grant. A taxpayer
applying for a federal grant 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 { + , or an applicant who is otherwise
eligible, + } 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 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 3. ORS 469.220, as amended by section 13, chapter 76,
Oregon Laws 2010, is amended to read:
469.220. { - (1) - } { + (1)(a) + } A certificate issued
under ORS 469.215 is required for purposes of obtaining tax
credits in accordance with ORS 315.354. Such certification shall
Enrolled House Bill 3606 (HB 3606-B) Page 3
be granted for a period not to exceed five years. The five-year
period shall begin with the tax year of the applicant during
which the completed application for final certification of the
facility under ORS 469.215 is received by the State Department of
Energy.
{ - (2) Notwithstanding subsection (1) of this section, for a
facility using or producing renewable energy resources with a
certified cost that exceeds $10 million and that receives final
certification under ORS 469.215 after January 1, 2010, the
five-year period shall begin with the tax year immediately
following the tax year during which the completed application for
final certification of the facility under ORS 469.215 is received
by the department. - }
{ + (b) For a transferee holding a credit that has been
transferred under ORS 469.206 or 469.208, the five-year period
shall begin with the tax year in which the transferee pays for
the credit.
(2) Notwithstanding subsection (1) of this section, for a
facility using or producing renewable energy resources with a
certified cost that exceeds $10 million and that receives final
certification under ORS 469.215 after January 1, 2010:
(a) The five-year period prescribed in subsection (1)(a) of
this section shall begin with the tax year immediately following
the tax year during which the completed application for final
certification of the facility under ORS 469.215 is received by
the department.
(b) If claimed by a transferee, the first of five tax years in
which the transferee may claim the credit is the tax year in
which the transferee paid for the credit or the tax year
prescribed in paragraph (a) of this subsection, whichever is
later.
(c) An application shall be considered complete without the
identification of a transferee for purposes of ORS 469.206 or
469.208.
(3) If the original owner of the certificate uses any portion
of the credit, the certificate becomes nontransferable. + }
SECTION 4. { + (1) The amendments to ORS 315.354 and 315.356
by sections 1 and 2 of this 2011 Act apply to tax years beginning
on or after January 1, 2009, and any tax year for which a
taxpayer may file an amended return or for which the Department
of Revenue may issue a notice of deficiency.
(2) The amendments to ORS 469.220 by section 3 of this 2011 Act
apply to final certifications issued under ORS 469.215 on or
after January 1, 2010.
(3) Notwithstanding the applicability dates in subsections (1)
and (2) of this section, the amendments to ORS 315.354, 315.356
and 469.220 by sections 1 to 3 of this 2011 Act do not invalidate
any action taken by the State Department of Energy prior to the
effective date of this 2011 Act and do not provide a basis for
applicants to obtain amendments to certifications issued under
ORS 469.210 or 469.215 prior to the effective date of this 2011
Act. + }
SECTION 5. { + 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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Enrolled House Bill 3606 (HB 3606-B) Page 4
Passed by House June 22, 2011
.............................................................
Ramona Kenady Line, Chief Clerk of House
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Passed by Senate June 24, 2011
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 3606 (HB 3606-B) Page 5
Received by Governor:
......M.,............., 2011
Approved:
......M.,............., 2011
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2011
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 3606 (HB 3606-B) Page 6
