Bill Text: OR HB4096 | 2012 | Regular Session | Introduced

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Bill Title: Relating to a hiring incentive tax credit; prescribing an effective date.

Spectrum: Partisan Bill (Republican 9-0)

Status: (Failed) 2012-03-05 - In committee upon adjournment. [HB4096 Detail]

Download: Oregon-2012-HB4096-Introduced.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2012 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 102

                         House Bill 4096

Sponsored by Representative CAMERON; Representatives BREWER,
  ESQUIVEL, LINDSAY, PARRISH, G SMITH, WAND, WHISNANT, WINGARD
  (Presession filed.)

                             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 income tax credit for hiring of qualified employee by
taxpayer with fewer than 100 employees.
  Applies to tax years beginning on or after January 1, 2013, and
prior to January 1, 2014.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to a hiring incentive tax credit; creating new
  provisions; amending ORS 314.752 and 318.031; and prescribing
  an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 3 of this 2012 Act shall be known and
may be cited as the Rehire Oregon Act of 2012. + }
  SECTION 2.  { + Section 3 of this 2012 Act is added to and made
a part of ORS chapter 315. + }
  SECTION 3.  { + (1) As used in this section, 'qualified
employee' means an individual who:
  (a) Is first employed on or after June 1, 2012, and prior to
January 1, 2013, by a taxpayer claiming the credit allowed under
this section;
  (b) Remains employed by the taxpayer for at least 12
consecutive months;
  (c) During the first 12 months of employment by the taxpayer,
receives monthly compensation from the taxpayer in an amount
equal to or greater than the average monthly unemployment
insurance compensation benefit received by unemployed persons in
this state; and
  (d) Was unemployed for a period of at least four weeks
immediately prior to being first employed by the taxpayer.
  (2) A credit against taxes that are otherwise due under ORS
chapter 316 or, if the taxpayer is a corporation, under ORS
chapter 317 or 318 is allowed to a taxpayer that hires a
qualified employee. The amount of the credit is $3,000 for each
qualified employee hired by the taxpayer. For each qualified
employee, the credit is allowed for the tax year in which the
12th calendar month of employment of the qualified employee by
the taxpayer is completed.
  (3) In order to qualify for the credit allowed under this
section, a taxpayer must demonstrate:
  (a) That the taxpayer has done business in this state for at
least two years prior to the hiring of any qualified employee for
which the credit is claimed;
  (b) That the commencement of employment of the qualified
employee creates a net increase in the number of employees
compared to the taxpayer's payroll as of May 31, 2012;
  (c) That at no point during the first three months of 2012 did
the taxpayer's payroll exceed 99 employees; and
  (d) That any employee for whom the taxpayer is claiming a
credit has been unemployed for the period required under
subsection (1) of this section. This must be demonstrated by
documentation from the Employment Department or from a previous
employer of the employee.
  (4) Prior to claiming the credit allowed under this section, a
taxpayer is required to receive written certification of
eligibility from the Employment Department.
  (5) The credit allowed under this section may not exceed the
tax liability of the taxpayer for the tax year.
  (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 but may not be carried forward for
any tax year thereafter.
  (7) A nonresident shall be allowed the credit under this
section. The credit shall be computed in the same manner and be
subject to the same limitations as the credit granted to a
resident. However, the credit shall be prorated using the
proportion provided in ORS 316.117.
  (8) If a change in the taxable year of the 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.
  (9) 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.
  (10) The Employment Department shall adopt rules for the
purposes of this section, including policies and procedures for:
  (a) Providing documentation that may be required under
subsection (3) of this section; and
  (b) Certifying taxpayers as eligible for the credit allowed
under this section as provided in subsection (4) of this
section. + }
  SECTION 4. ORS 314.752 is amended to read:
  314.752. (1) Except as provided in ORS 314.740 (5)(b), the tax
credits allowed or allowable to a C corporation for purposes of
ORS chapter 317 or 318 shall not be allowed to an S corporation.
The business tax credits allowed or allowable for purposes of ORS
chapter 316 shall be allowed or are allowable to the shareholders
of the S corporation.
  (2) In determining the tax imposed under ORS chapter 316, as
provided under ORS 314.734, on income of the shareholder of an S
corporation, there shall be taken into account the shareholder's
pro rata share of business tax credit (or item thereof) that
would be allowed to the corporation (but for subsection (1) of
this section) or recapture or recovery thereof. The credit (or
item thereof), recapture or recovery shall be passed through to
shareholders in pro rata shares as determined in the manner
prescribed under section 1377(a) of the Internal Revenue Code.
  (3) The character of any item included in a shareholder's pro
rata share under subsection (2) of this section shall be
determined as if such item were realized directly from the source

from which realized by the corporation, or incurred in the same
manner as incurred by the corporation.
  (4) If the shareholder is a nonresident and there is a
requirement applicable for the business tax credit that in the
case of a nonresident the credit be allowed in the proportion
provided in ORS 316.117, then that provision shall apply to the
nonresident shareholder.
  (5) As used in this section, 'business tax credit' means a tax
credit granted to personal income taxpayers to encourage certain
investment, to create employment, economic opportunity or
incentive or for charitable, educational, scientific, literary or
public purposes that is listed under this subsection as a
business tax credit or is designated as a business tax credit by
law or by the Department of Revenue by rule and includes but is
not limited to the following credits: ORS 285C.309 (tribal taxes
on reservation enterprise zones and reservation partnership
zones), ORS 315.104 (forestation and reforestation), ORS 315.138
(fish screening, by-pass devices, fishways), ORS 315.141 (biomass
production for biofuel), ORS 315.156 (crop gleaning), ORS 315.164
and 315.169 (farmworker housing), ORS 315.204 (dependent care
assistance), ORS 315.208 (dependent care facilities), ORS 315.213
(contributions for child care), ORS 315.304 (pollution control
facility), ORS 315.326 (renewable energy development
contributions), ORS 315.331 (energy conservation projects), ORS
315.336 (transportation projects), ORS 315.341 (renewable energy
resource equipment manufacturing facilities), ORS 315.354 and
469B.151 (energy conservation facilities), ORS 315.507
(electronic commerce), ORS 315.533 (low income community jobs
initiative) and ORS 317.115 (fueling stations necessary to
operate an alternative fuel vehicle)  { + and section 3 of this
2012 Act (hiring of qualified employees) + }.
  SECTION 5. ORS 318.031 is amended to read:
  318.031. It being the intention of the Legislative Assembly
that this chapter and ORS chapter 317 shall be administered as
uniformly as possible (allowance being made for the difference in
imposition of the taxes), ORS 305.140 and 305.150, ORS chapter
314 and the following sections are incorporated into and made a
part of this chapter: ORS 285C.309, 315.104, 315.141, 315.156,
315.204, 315.208, 315.213, 315.304, 315.326, 315.331, 315.336,
315.507 and 315.533  { + and section 3 of this 2012 Act + } (all
only to the extent applicable to a corporation) and ORS chapter
317.
  SECTION 6.  { + Section 3 of this 2012 Act and the amendments
to ORS 314.752 and 318.031 by sections 4 and 5 of this 2012 Act
apply to tax years beginning on or after January 1, 2013, and
prior to January 1, 2014. + }
  SECTION 7.  { + This 2012 Act takes effect on the 91st day
after the date on which the 2012 regular session of the
Seventy-sixth Legislative Assembly adjourns sine die. + }
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