2017 ORS 314.752¹
Business tax credits
  • allowance to shareholders

Caution-flag-2-25x25
This section is amended
Effective June 2, 2018
Relating to taxation; creating new provisions; amending ORS 314.752 and 318.031; and prescribing an effective date.

(1) Except as provided in ORS 314.740 (Tax on built-in gain) (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 (Taxation of shareholder’s income), 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 (Proration between Oregon income and other income for nonresidents, part-year residents and trusts), then that provision shall apply to the nonresident shareholder.

(5) As used in this section, “business tax credit” means the following credits: ORS 315.104 (Reforestation) (forestation and reforestation), ORS 315.138 (Screening devices, by-pass devices or fishways) (fish screening, by-pass devices, fishways), ORS 315.141 (Biomass production or collection) (biomass production for biofuel), ORS 315.156 (Crop donation) (crop gleaning), ORS 315.164 (Agriculture workforce housing projects) and 315.169 (Agriculture workforce housing contributor credit) (agriculture workforce housing), ORS 315.176 (Bovine manure production or collection) (bovine manure), ORS 315.204 (Dependent care assistance) (dependent care assistance), ORS 315.208 (Dependent care facilities) (dependent care facilities), ORS 315.213 (Contributions to Office of Child Care) (contributions for child care), ORS 315.237 (Employee and dependent scholarship program payments) (employee and dependent scholarships), ORS 315.271 (Individual development accounts) (individual development accounts), ORS 315.304 (Pollution control facilities) (pollution control facility), ORS 315.326 (Renewable energy development contributions) (renewable energy development contributions), ORS 315.331 (Energy conservation projects) (energy conservation projects), ORS 315.336 (Transportation projects) (transportation projects), ORS 315.341 (Renewable energy resource equipment manufacturing facilities) (renewable energy resource equipment manufacturing facilities), ORS 315.354 (Energy conservation facilities) and 469B.151 (Tax credit for rental housing units) (energy conservation facilities), ORS 315.506 (New business facility in reservation enterprise zone or reservation partnership zone) (tribal taxes on reservation enterprise zones and reservation partnership zones), ORS 315.507 (Electronic commerce in designated enterprise zone) (electronic commerce), ORS 315.514 (Film production development contributions) (film production development contributions), ORS 315.521 (University venture development fund contributions) (university venture development funds), ORS 315.523 (Employee training) (employee training programs), ORS 315.533 (Qualified equity investments) (low income community jobs initiative), ORS 315.675 (Trust for Cultural Development Account contributions) (Trust for Cultural Development Account contributions), ORS 317.097 (Lending institution loans for housing) (loans for affordable housing), ORS 317.124 (Long term enterprise zone facilities) (long term enterprise zone facilities), ORS 317.147 (Agriculture workforce housing loans) (loans for agriculture workforce housing), ORS 317.152 (Qualified research activities credit) (qualified research expenses) and ORS 317.154 (Alternative qualified research activities credit) (alternative qualified research expenses) and section 9, chapter 774, Oregon Laws 2013 (alternative fuel vehicle contributions). [1991 c.877 §36; 1993 c.730 §5; 1997 c.170 §34; 1997 c.534 §2; 1999 c.21 §36; 2001 c.674 §11; 2001 c.868 §9; 2001 c.932 §10; 2001 c.957 §18; 2005 c.80 §1; 2005 c.94 §80; 2007 c.625 §13; 2007 c.739 §7; 2007 c.883 §3; 2009 c.33 §§14,15,16; 2010 c.76 §26; 2011 c.83 §11; 2011 c.474 §32; 2011 c.730 §19; 2011 c.732 §9; 2013 c.750 §25; 2015 c.701 §35; 2017 c.610 §21; 2017 c.638 §1]

Chapter 314

Law Review Cita­tions

9 WLJ 249 (1973); 5 EL 516 (1975)

1 Legislative Counsel Committee, CHAPTER 314—Taxes Imposed Upon or Measured by Net Income, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors314.­html (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 314, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano314.­html (2017) (last ac­cessed Mar. 30, 2018).
 
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.