ORS 317.124
Long term enterprise zone facilities


(1)

As used in this section:

(a)

“Facility” has the meaning given that term in ORS 285C.400 (Definitions for ORS 285C.400 to 285C.420).

(b)

“Payroll costs” means the costs of paying employee salary, wages and other remuneration in cash or property, and employee benefit costs, including but not limited to workers’ compensation, health, life or other insurance premium payments, payroll taxes and contributions to pension or other retirement plans.

(2)

A taxpayer that owns a facility that is exempt from property tax under ORS 285C.409 (Property tax exemption) may claim a tax credit under this section against the taxes that are otherwise due under this chapter.

(3)

The credit may be claimed over a period of consecutive tax years elected by the taxpayer:

(a)

That must commence on or after the tax year in which the facility is placed in service and no later than the tax year beginning in the third calendar year after the year in which the facility is placed in service;

(b)

The duration of which must be at least five tax years and no more than 15 tax years; and

(c)

The duration of which must be established in writing by the Governor (pursuant to a request made by the taxpayer) prior to the date on which a return claiming the credit is filed.

(4)

The amount of the credit for a tax year shall equal 62.5 percent of the payroll costs of the taxpayer for that tax year that are attributable to employment at the facility.

(5)

The credit computed under subsection (4) of this section may be offset only against the qualified tax liability of the taxpayer, as determined under this subsection. To compute the qualified tax liability of the taxpayer:

(a)

Subtract the tax credit threshold amount determined under subsection (7) of this section from the tax liability of the taxpayer under this chapter; and

(b)

Multiply the difference determined under paragraph (a) of this subsection by the apportionment factor determined under subsection (6) of this section.

(6)

Intentionally left blank —Ed.

(a)

The apportionment factor to be used in computing the qualified tax liability of the taxpayer under subsection (5) of this section shall be a fraction, the numerator of which is income of the facility for the fiscal year of the taxpayer that ends in the tax year for which the qualified tax liability of the taxpayer is being computed, and the denominator of which is the total Oregon income of the taxpayer for the fiscal year of the taxpayer that ends in the tax year for which the qualified tax liability of the taxpayer is being computed. For purposes of this computation, income shall be determined in accordance with generally accepted accounting principles and shall be reviewed by an independent public accountant in a review that is conducted in accordance with the Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants.

(b)

Intentionally left blank —Ed.

(A)

If no data are prepared that meet the accounting and review standards set forth in paragraph (a) of this subsection, the apportionment factor shall be a fraction, the numerator of which is the sum of the intrastate payroll factor and the intrastate property factor, and the denominator of which is two.

(B)

The intrastate payroll factor is a fraction, the numerator of which is the total amount paid for compensation at the qualifying facility during the tax year for which the qualified tax liability of the taxpayer is being computed, and the denominator of which is the total amount of compensation paid in this state during that tax year.

(C)

The intrastate property factor is a fraction, the numerator of which is the average net book value of the facility for the tax year for which the qualified tax liability of the taxpayer is being computed, and the denominator of which is the average net book value of all real and tangible personal property owned or rented by the taxpayer in this state for that tax year.

(7)

The tax credit threshold amount for the tax year for which the qualified tax liability of the taxpayer is being computed equals:

(a)

$1 million; or

(b)

If the facility is one described in ORS 285C.412 (Conditions for continued exemption) (2) or (3), the lesser of $1 million or:

(A)

If the facility is one described in ORS 285C.412 (Conditions for continued exemption) (2)(c)(A), $10,000 multiplied by the number of verified full-time employees at the facility;

(B)

If the facility is one described in ORS 285C.412 (Conditions for continued exemption) (2)(c)(B), $12,500 multiplied by the number of verified full-time employees at the facility; or

(C)

If the facility is one described in ORS 285C.412 (Conditions for continued exemption) (3) but not otherwise described under this paragraph, $15,000 multiplied by the number of verified full-time employees at the facility.

(8)

A tax credit computed under this section for any one tax year may not exceed the qualified tax liability of the taxpayer for the tax year.

(9)

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 qualified tax liability for the next succeeding tax year. Any credit remaining unused in the next succeeding tax year may be carried forward and used against the taxpayer’s qualified tax liability for the second succeeding tax year. Any credit remaining unused in the second succeeding tax year may be carried forward and used against the taxpayer’s qualified tax liability for the third succeeding tax year. Any credit remaining unused in the third succeeding tax year may be carried forward and used against the taxpayer’s qualified tax liability for the fourth succeeding tax year. Any credit remaining unused in the fourth succeeding tax year may be carried forward and used against the taxpayer’s qualified tax liability for the fifth succeeding tax year, but may not be used in any tax year thereafter.

(10)

A tax credit allowed under this section is not in lieu of any deduction for depreciation, amortization, payroll costs or any other expense to which the taxpayer may be entitled. [2001 c.292 §8]

Source: Section 317.124 — Long term enterprise zone facilities, https://www.­oregonlegislature.­gov/bills_laws/ors/ors317.­html.

317.005
Short title
317.010
Definitions
317.013
Adoption of parts of Internal Revenue Code and application of federal laws and regulations
317.018
Statement of purpose
317.019
Application of Payment-in-kind Tax Treatment Act of 1983
317.025
Omission of previously enacted savings clauses from Oregon Revised Statutes
317.030
Effect of chapter
317.035
Effect of subsequent repeal of chapter
317.038
Computation of Oregon taxable history
317.061
Tax rate
317.063
Tax rate imposed on certain long-term capital gain from farming
317.067
Tax on homeowners association income
317.070
Tax on centrally assessed, mercantile, manufacturing and business corporations and financial institutions
317.080
Exempt corporations
317.090
Minimum tax
317.092
Exemption of payments to tenant of manufactured dwelling park upon termination of rental agreement
317.097
Lending institution loans for housing
317.111
Weatherization loan interest
317.112
Energy conservation loans to residential fuel oil customers or wood heating residents
317.122
Insurers
317.124
Long term enterprise zone facilities
317.125
Other tax credits limited
317.127
Long Term Enterprise Zone Fund
317.129
Tax payments of long term enterprise zone facilities credit claimants
317.131
Distribution of funds to local governments
317.147
Agriculture workforce housing loans
317.151
Contributions of computers or scientific equipment for research to educational organizations
317.152
Qualified research activities credit
317.153
Qualified research activities
317.154
Alternative qualified research activities credit
317.190
Effect on reporting income
317.195
Effect on deductions allowed
317.259
Modifications generally
317.267
Dividends received by corporation from certain other corporations
317.273
Dividend income received by domestic corporation from certain foreign corporations
317.283
Nonrecognition of transactions with related domestic international sales corporation
317.286
Nonrecognition of transactions with related foreign sales corporation
317.301
Deferral of deduction for certain amounts deductible under federal law
317.303
Deduction or adjustment for certain federal credits
317.304
Addition for unused qualified business credits
317.307
Reduction for charitable contribution deduction under federal law
317.309
Interest and dividends received from obligations of state or political subdivision
317.310
Balance in bad debt reserve of financial institution which has changed from reserve method to specific charge-off method of accounting
317.311
Application of section 243 of Tax Reform Act of 1986
317.312
Federal depreciation expenses of certain health care service contractors
317.314
Taxes on net income or profits imposed by any state or foreign country
317.319
Capital Construction Fund
317.322
Addition of long term care insurance premiums if credit is claimed
317.327
Modification of taxable income when deferred gain is recognized as result of out-of-state disposition of property
317.329
Basis for stock acquisition
317.344
Net operating loss carryback and carryover
317.349
Transaction treated as lease purchase under federal law
317.351
ORS 317.349 not applicable to finance leases
317.356
Basis on disposition of asset
317.362
Reversal of effect of gain or loss in case of timber, coal, domestic iron ore
317.363
Expenses of marijuana-related trade or business
317.374
Depletion
317.379
Exemption of income from exercise of Indian fishing rights
317.386
Energy conservation payments exempt
317.388
Claim of right income repayment adjustment when credit is claimed
317.391
Small city business development exemption
317.394
Qualifying film production labor rebates
317.398
Qualified production activities income
317.401
Addition for federal prescription drug plan subsidies excluded for federal tax purposes
317.476
Net losses of prior years
317.478
Pre-change and built-in losses
317.479
Limitation on use of preacquisition losses to offset built-in gain
317.485
Loss carryforward after reorganization
317.488
Qualified donations and sales to educational institutions
317.491
Contribution to charitable organization subject to disqualification order
317.504
Date return considered filed or advance payment considered made
317.510
Requiring additional reports and information
317.625
Income from sources without the United States
317.635
Domestic international sales corporation
317.650
Insurers
317.655
Taxable income of insurer
317.660
Allocation of net income where insurer has both in-state and out-of-state business
317.665
Oregon net losses of insurer in prior years
317.667
Tax treatment of captive insurers
317.705
Definitions
317.710
Corporation tax return requirements
317.713
Group losses as offset to income of subsidiary paying preferred dividends
317.715
Tax return of corporation in affiliated group making consolidated federal return
317.720
Computation of taxable income
317.725
Adjustments to prevent double taxation or deduction
317.850
Disposition of revenue
317.853
Disposition of revenue from tax imposed at increased rate
317.920
Tax imposed on unrelated business income of certain exempt corporations
317.930
Exceptions and limitations
317.950
Assessment of deficiency
317.991
Civil penalty
Green check means up to date. Up to date