Bill Text: OR SB683 | 2011 | Regular Session | Introduced
Bill Title: Relating to an employer tax credit; prescribing an effective date.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2011-06-30 - In committee upon adjournment. [SB683 Detail]
Download: Oregon-2011-SB683-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 1691
Senate Bill 683
Sponsored by Senator ATKINSON
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 or corporate excise tax credit for taxpayer that
creates or maintains employment positions.
Applies to tax years beginning on or after January 1, 2012, and
before January 1, 2015.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to an employer 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 2 of this 2011 Act is added to and made
a part of ORS chapter 315. + }
SECTION 2. { + (1) 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
creates or maintains employment positions during the tax year.
(2) The amount of the credit is:
(a) Five percent of the taxpayer's gross revenue for the tax
year for each full-time position that:
(A) Is created and remains filled for at least 12 months; and
(B) Creates a net increase in the number of full-time
equivalent positions of the taxpayer compared to the taxpayer's
payroll as of June 1, 2011; and
(b) One percent of the taxpayer's gross revenue for the tax
year for each full-time position that:
(A) Was filled as of the first day of the tax year; and
(B) Remains filled throughout the tax year.
(3) The amount allowed under subsection (2)(b) of this section
may be claimed only if the taxpayer's total payroll on the last
day of the tax year, less any new employees for whom credits are
claimed under this section, is equal to or larger than the total
payroll on the first day of the tax year.
(4) If any newly created positions are part-time, the
applicable percentage shall be prorated.
(5) Prior to claiming the credit allowed under this section, a
taxpayer is required to receive written certification of
eligibility from the Department of Revenue.
(6) The credit allowed under this section may not exceed the
tax liability of the taxpayer for the tax year.
(7) 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, 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.
(8) A nonresident shall be allowed the credit provided under
this section computed in the same manner and subject to the same
limitations as the credit allowed to a resident of this state.
However, the credit shall be prorated using the proportion
provided in ORS 316.117.
(9) If a change in the taxable year of the taxpayer occurs as
described in ORS 314.085, or if the department 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.
(10) 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.
(11) The department shall adopt rules for the purposes of this
section, including policies and procedures for certifying
taxpayers as eligible for the credit allowed under this section
as required by subsection (5) of this section. + }
SECTION 3. ORS 314.752, as amended by section 26, chapter 76,
Oregon Laws 2010, 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 315.134
(fish habitat improvement), ORS 315.138 (fish screening, by-pass
devices, fishways), 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 315.324 (plastics recycling), ORS 315.354 and
469.207 (energy conservation facilities), ORS 315.507 (electronic
commerce), ORS 315.511 (advanced telecommunications facilities),
ORS 315.604 (bone marrow transplant expenses), ORS 317.115
(fueling stations necessary to operate an alternative fuel
vehicle) and ORS 315.141 (biomass production for biofuel) { +
and section 2 of this 2011 Act (employer credit) + }.
SECTION 4. 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, 315.134, 315.141,
315.156, 315.204, 315.208, 315.213, 315.304, 315.507, 315.511 and
315.604 { + and section 2 of this 2011 Act + } (all only to the
extent applicable to a corporation) and ORS chapter 317.
SECTION 5. { + Section 2 of this 2011 Act and the amendments
to ORS 314.752 and 318.031 by sections 3 and 4 of this 2011 Act
apply to tax years beginning on or after January 1, 2012, and
before January 1, 2015. + }
SECTION 6. { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 session of the Seventy-sixth
Legislative Assembly adjourns sine die. + }
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