ORS 315.331
Energy conservation projects


(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 (Definitions for ORS 315.331 and 469B.270 to 469B.306) to 469B.306 (Policies and procedures). The credit is allowed as follows:

(a)

Except as provided in ORS 469B.298 (Recertification of eligibility) and 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) 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 (Definitions for ORS 315.331 and 469B.270 to 469B.306) to 469B.306 (Policies and procedures).

(c)

If the project is a research and development project, it must receive, prior to certification under ORS 469B.288 (Submissions for preliminary certification), 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 (Reach Code).

(3)

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)

Intentionally left blank —Ed.

(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 (Final certification). The new lessee or owner must meet the requirements of ORS 469B.270 (Definitions for ORS 315.331 and 469B.270 to 469B.306) to 469B.306 (Policies and procedures) 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 (Final certification) 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 (Application for preliminary certification).

(5)

The tax credit allowed under this section for any one tax year may not exceed the tax liability of the taxpayer.

(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 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)

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)

The taxpayer’s adjusted basis for determining gain or loss may not be decreased by any tax credits allowed under this section.

(9)

The definitions in ORS 469B.270 (Definitions for ORS 315.331 and 469B.270 to 469B.306) apply to this section. [2011 c.730 §35; 2015 c.545 §3]
Note: Section 9, chapter 545, Oregon Laws 2015, provides:
Sec. 9. Section 2 of this 2015 Act [469B.298 (Recertification of eligibility)] and the amendments to ORS 315.331 (Energy conservation projects), 469B.276 (Transferability of project tax credit), 469B.291 (Final certification), 469B.294 (Fees for certification or recertification), 469B.297 (Certificate required for tax credits) and 469B.300 (Suspension or revocation of certificate or portion of certificate) by sections 3 to 8 of this 2015 Act apply to applications for final certification under ORS 469B.291 (Final certification) submitted on or after September 1, 2015, and to tax years beginning on or after January 1, 2015. [2015 c.545 §9]
Note: Sections 36 and 51, chapter 730, Oregon Laws 2011, provide:
Sec. 36. (1) A taxpayer may not be allowed a credit under section 35 of this 2011 Act [315.331 (Energy conservation projects)] if the first tax year for which the credit would otherwise be allowed, with respect to an energy conservation project certified under section 45 of this 2011 Act [469B.291 (Final certification)], begins on or after January 1, 2018.

(2)

A taxpayer may not be allowed a credit for an energy conservation project that is a cogeneration facility as that term is defined in ORS 758.505 (Definitions for ORS 758.505 to 758.555) for a tax year that begins before January 1, 2013. [2011 c.730 §36]
Sec. 51. Sections 35 [315.331 (Energy conservation projects)], 36 and 38 to 50 [469B.270 (Definitions for ORS 315.331 and 469B.270 to 469B.306) to 469B.306 (Policies and procedures)] of this 2011 Act apply to applications for preliminary certification submitted under section 43 of this 2011 Act [469B.285 (Application for preliminary certification)] after July 1, 2011, and to tax years beginning on or after January 1, 2011. [2011 c.730 §51]

Source: Section 315.331 — Energy conservation projects, https://www.­oregonlegislature.­gov/bills_laws/ors/ors315.­html.

315.004
Definitions
315.037
Tax expenditures applicable for limited time
315.044
Statement of purpose
315.047
List of tax credits with revenue impact in excess of projection
315.051
Report by Legislative Revenue Officer
315.052
Limitation on transfer or sale of credit
315.053
Restriction on types of transferees
315.054
Federal tax credits allowable only as specified
315.056
Conditions for transfer of tax credit
315.058
Agency to provide tax credit approval information to Department of Revenue
315.061
Suspension, revocation or forfeiture
315.063
Waiver of substantiation by Department of Revenue
315.068
Claim of right income repayment adjustments
315.104
Reforestation
315.106
Reforestation credit preliminary certificate
315.108
Annual reforestation credit cost limitation
315.111
Legislative declarations regarding riparian land conservation
315.113
Voluntary removal of riparian land from farm production
315.117
Legislative findings and declarations regarding on-farm processing
315.119
On-farm processing facilities
315.123
Minimum production and processing volume requirements
315.138
Screening devices, by-pass devices or fishways
315.141
Biomass production or collection
315.144
Transfer of biomass credit
315.154
Definitions for crop donation credit
315.156
Crop donation
315.163
Definitions for ORS 315.163 to 315.169
315.164
Agriculture workforce housing projects
315.167
Agriculture workforce housing credit application
315.169
Agriculture workforce housing contributor credit
315.171
Tax credit limit for biennium
315.174
Livestock killed by wolf
315.176
Bovine manure production or collection
315.184
Annual limitation on total amount of tax credits
315.204
Dependent care assistance
315.208
Dependent care facilities
315.213
Contributions to Office of Child Care
315.237
Employee and dependent scholarship program payments
315.262
Working family child care
315.264
Working family household and dependent care expenses
315.266
Earned income
315.271
Individual development accounts
315.272
Certain individual development account withdrawals
315.304
Pollution control facilities
315.326
Renewable energy development contributions
315.329
Funding in lieu of tax credit certification
315.331
Energy conservation projects
315.336
Transportation projects
315.341
Renewable energy resource equipment manufacturing facilities
315.354
Energy conservation facilities
315.356
Other grants as offset to cost of energy conservation facility
315.357
Time limit applicable to energy conservation tax credit
315.465
Biofuels and fuel blends
315.469
Biodiesel used in home heating
315.506
New business facility in reservation enterprise zone or reservation partnership zone
315.507
Electronic commerce in designated enterprise zone
315.508
Recordkeeping requirements
315.514
Film production development contributions
315.516
Funding in lieu of tax credit certification
315.517
Water transit vessels
315.523
Employee training
315.526
Short title
315.529
Definitions
315.533
Qualified equity investments
315.536
Transferability of credit
315.591
Definitions
315.593
Short line railroad rehabilitation projects
315.595
Preliminary certification
315.597
Final certification
315.599
Fees
315.603
Tax credit limit for biennium
315.610
Long term care insurance
315.613
Credit available to persons providing rural medical care and affiliated with certain rural hospitals
315.616
Additional providers who may qualify for credit
315.619
Credit for medical staff at type C hospital
315.622
Rural emergency medical services providers
315.624
Medical care to residents of Oregon Veterans’ Home
315.628
Health care services under TRICARE contract
315.631
Certification of health care providers
315.640
University venture development fund contributions
315.643
Opportunity Grant contributions
315.646
Funding in lieu of tax credit certification
315.650
Higher education savings account or ABLE account contributions
315.653
Forfeiture of prior tax relief
315.675
Trust for Cultural Development Account contributions
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