2007 ORS 315.141¹
Biomass production or collection

(1) As used in this section:

(a) "Agricultural producer" means a person that produces biomass that is used in Oregon as biofuel or to produce biofuel.

(b) "Biofuel" means liquid, gaseous or solid fuels derived from biomass.

(c) "Biomass" means organic matter that is available on a renewable or recurring basis and that is derived from:

(A) Forest or rangeland woody debris from harvesting or thinning conducted to improve forest or rangeland ecological health and reduce uncharacteristic stand replacing wildfire risk;

(B) Wood material from hardwood timber described in ORS 321.267 (Lands not eligible for special assessment) (3);

(C) Agricultural residues;

(D) Offal and tallow from animal rendering;

(E) Food wastes collected as provided under ORS chapter 459 or 459A;

(F) Yard or wood debris collected as provided under ORS chapter 459 or 459A;

(G) Wastewater solids; or

(H) Crops grown solely to be used for energy.

(d) "Biomass" does not mean wood that has been treated with creosote, pentachlorophenol, inorganic arsenic or other inorganic chemical compounds.

(e) "Biomass collector" means a person that collects biomass to be used in Oregon as biofuel or to produce biofuel.

(2)(a) An agricultural producer or biomass collector shall be allowed a credit against the taxes that would otherwise be due under ORS chapter 316 or, if the taxpayer is a corporation, under ORS chapter 317 or 318 for:

(A) The production of biomass that is used in Oregon as biofuel or to produce biofuel; or

(B) The collection of biomass that is used in Oregon as biofuel or to produce biofuel.

(b) A credit under this section may be claimed in the tax year in which the agricultural producer or biomass collector transfers biomass to a biofuel producer.

(c) Notwithstanding paragraph (a) of this subsection, a tax credit is not allowed for grain corn, but a tax credit shall be allowed for other corn material.

(3) The amount of the credit shall be calculated as follows:

(a) Determine the quantity of biomass transferred to a biofuel producer during the tax year;

(b) Categorize the biomass into appropriate categories; and

(c) Multiply the quantity of biomass in a particular category by the appropriate credit rate for that category, expressed in dollars and cents, that is prescribed in ORS 469.790 (Biomass).

(4) The amount of the credit claimed under this section for any tax year may not exceed the tax liability of the taxpayer.

(5)(a) A biofuel producer shall provide a written receipt to an agricultural producer or biomass collector at the time biomass is transferred from the agricultural producer or biomass collector to the biofuel producer. The receipt must state the quantity and type of biomass being transferred and that the biomass is to be used to produce biofuel.

(b) Each agricultural producer or biomass collector shall maintain the receipts described in this subsection in their records for a period of at least five years after the tax year in which the credit is claimed or for a longer period of time prescribed by the Department of Revenue.

(6) The credit shall be claimed on a form prescribed by the Department of Revenue that contains the information required by the department.

(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, and any credit not used in that third succeeding tax year may be carried forward and used in the fourth succeeding tax year, but may not be carried forward for any tax year thereafter.

(8) In the case of a credit allowed under this section:

(a) A nonresident shall be allowed the credit under this section in the proportion provided in ORS 316.117 (Proration between Oregon income and other income for nonresidents, part-year residents and trusts).

(b) If a change in the status of the 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 (Proration between Oregon income and other income for nonresidents, part-year residents and trusts).

(c) If a change in the taxable year of the taxpayer occurs as described in ORS 314.085 (Taxable year), or if the department terminates the taxpayer’s taxable year under ORS 314.440 (Tax as debt), the credit allowed under this section shall be prorated or computed in a manner consistent with ORS 314.085 (Taxable year). [2007 c.739 §2; 2007 c.590 §4]

Note: Section 6, chapter 739, Oregon Laws 2007, provides:

Sec. 6. (1) Sections 2 [315.141 (Biomass production or collection)], 3 [315.144 (Transfer of biomass credit)] and 5 [469.790 (Biomass)], chapter 739, Oregon Laws 2007, apply to tax credits for tax years beginning on or after January 1, 2007, and before January 1, 2013.

(2) Notwithstanding subsection (1) of this section, a tax credit is not allowed for wheat grain (other than nongrain wheat material) before tax years beginning on or after January 1, 2009, or on or after January 1, 2013. [2007 c.739 §6; 2007 c.590 §5]

Chapter 315

Notes of Decisions

State could not recalculate tax for tax year closed to review in order to prevent elective carry forward of tax credit to tax year subject to review. Smurfit Newsprint Corp. v. Dept. of Revenue, 329 Or 591, 997 P2d 185 (2000)

1 Legislative Counsel Committee, CHAPTER 315—Personal and Corporate Income or Excise Tax Credits, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­315.­html (2007) (last ac­cessed Feb. 12, 2009).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 315, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­315ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.