Bill Text: OR HB4166 | 2012 | Regular Session | Introduced

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Bill Title: Relating to use of forest products in energy conservation projects; prescribing an effective date.

Sponsorship: Slight Partisan Bill (Republican 5-2)

Status: (Failed) 2012-03-05 - In committee upon adjournment. [HB4166 Detail]

Download: Oregon-2012-HB4166-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 56

                         House Bill 4166

Sponsored by Representative JOHNSON; Representatives BOONE,
  ESQUIVEL, GILLIAM, KENNEMER, SCHAUFLER, Senator OLSEN
  (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.

  Allows State Department of Energy to require applicants seeking
tax credit certification to demonstrate whether efficiency
standards of energy conservation projects are eligible for
certification under certain forest product stewardship systems.
  Applies to applications for preliminary certification for
energy conservation tax credits filed after January 1, 2013.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to use of forest products in energy conservation
  projects; creating new provisions; amending ORS 315.331; and
  prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 315.331 is amended to read:
  315.331. (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, for an energy conservation project
that is certified under ORS 469B.270 to 469B.306. The credit is
allowed as follows:
  (a) Except as provided in paragraph (b) 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
  { - (3) - }   { + (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.
  (2) In order for a tax credit to be allowable under this
section:
  (a) The project must be located in Oregon.
  (b) The project must have received final certification from the
Director of the State Department of Energy under ORS 469B.270 to
469B.306.

  (c) If the project is a research and development project, it
must receive, prior to certification under ORS 469B.288, a
recommendation from a qualified third party selected by the
director.
  (d) If the project is new construction or a total building
retrofit, then the project must achieve, at a minimum, the energy
efficiency standards required for:
  (A) LEED Platinum certification;
  (B) A four globes rating from the Green Globes program;
  (C) A nationally or regionally recognized and appropriate
sustainable building program whose performance standards are
equivalent to the standards required for LEED Platinum
certification or a four globes rating from the Green Globes
program, as determined by the department; or
  (D) Verification that the construction conformed to the
standards of the Reach Code adopted pursuant to ORS 455.500.
   { +  (3) The State Department of Energy may require applicants
to demonstrate whether the efficiency standards chosen by the
applicant are eligible under the certifications given to forest
products grown, manufactured and certified under the Sustainable
Forestry Initiative, the Forest Stewardship Council and the
American Tree Farm System systems. + }
    { - (3) - }   { + (4) + } The total amount of credit
allowable to an eligible taxpayer under this section may not
exceed 35 percent of the certified cost of the project.
    { - (4)(a) - }   { + (5)(a) + } Upon any sale, termination of
the lease or contract, exchange or other disposition of the
project, notice thereof shall be given to the director, who shall
revoke the certificate covering the project as of the date of
such disposition.
  (b) A new owner, or, upon re-leasing of the project, a new
lessee, may apply for a new certificate under ORS 469B.291. The
new lessee or owner must meet the requirements of ORS 469B.270 to
469B.306 and may claim a tax credit under this section only if
all moneys owed by the new owner or lessee to the State of Oregon
have been paid, if the project continues to operate and if 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 lessee, the
amount of credit not claimed by the lessee under all previous
leases. The State Department of Energy may waive the requirement
that a new owner or lessee apply for a new certificate under ORS
469B.291 if the remaining credit is less than $20,000.
  (c) The department may not revoke the certificate covering a
project under paragraph (a) of this subsection if the tax credit
associated with the project has been transferred to a taxpayer
who is an eligible applicant under ORS 469B.285.
    { - (5) - }   { + (6) + } The tax credit allowed under this
section for any one tax year may not exceed the tax liability of
the taxpayer.
    { - (6) - }   { + (7) + } 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 not used in that fourth succeeding
tax year may be carried forward and used in the fifth 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) - }   { + (8) + } The credit allowed under this
section is not in lieu of any depreciation or amortization
deduction for the project to which the taxpayer otherwise may be
entitled for purposes of ORS chapter 316, 317 or 318 for such
year.
    { - (8) - }   { + (9) + } The taxpayer's adjusted basis for
determining gain or loss may not be decreased by any tax credits
allowed under this section.
    { - (9) - }   { + (10) + } The definitions in ORS 469B.270
apply to this section.
  SECTION 2.  { + The amendments to ORS 315.331 by section 1 of
this 2012 Act apply to applications for preliminary certification
under ORS 469B.285 filed after January 1, 2013. + }
  SECTION 3.  { + 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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