ORS 315.104
Reforestation

  • rules

(1)

A credit against the taxes otherwise due under ORS chapter 316 (or if the taxpayer is a corporation, under ORS chapter 317 or 318) shall be allowed in an amount equal to 50 percent of reforestation project costs actually paid or incurred to reforest underproductive Oregon forestlands. Such costs include, but are not limited to, any fees established by the State Forester under ORS 315.106 (Reforestation credit preliminary certificate) (4), site preparation, tree planting and other silviculture treatments considered necessary by the State Forester to establish commercial, hardwood or softwood stands on appropriate sites. Subject to subsection (5) of this section:

(a)

One-half of the credit shall be taken in the tax year for which the State Forester, after physical inspection of the forestland, issues a preliminary certificate under ORS 315.106 (Reforestation credit preliminary certificate) certifying that the land qualifies as underproductive Oregon forestland and that the reforestation project undertaken meets the requirements of this section and the specifications established by the State Forester and the costs appear to be reasonable; and

(b)

One-half of the credit shall be taken in the tax year for which the State Forester, after further physical inspection of the land and project, certifies that the new forest is established in accordance with the specifications of the State Forester.

(2)

No credit shall be allowed under either subsection (1)(a) or (b) of this section unless written certification containing the following statements accompanies the claim for the credit or is otherwise filed with the Department of Revenue:

(a)

A preliminary certificate issued by the State Forester under ORS 315.106 (Reforestation credit preliminary certificate) that the land and project meet the preliminary specifications established by the State Forester or that the new forest is established, whichever is applicable at the time.

(b)

A statement by the landowner or person in possession of the land that the land within the project area will be used for the primary purpose of growing and harvesting trees of an acceptable species.

(c)

A statement that the landowner or person in possession of the land is aware that maintenance practices, including release, may be needed to insure that a new forest is established and will remain established.

(3)

For purposes of this section, reforestation project costs shall not include:

(a)

Costs paid or incurred to reforest any forestland that has been commercially logged to the extent that reforestation is required under the Oregon Forest Practices Act, except costs paid or incurred to reforest forestland following a hardwood harvest, conducted for the purposes of converting underproductive forestlands, as determined by administrative rule.

(b)

That portion of costs or expenses paid through a federal or state cost share, financial assistance or other incentive program.

(c)

Those costs paid or incurred to grow Christmas trees, ornamental trees, shrubs or plants, or those costs paid or incurred to grow hardwood timber described under ORS 321.267 (Lands not eligible for special assessment) (3) or 321.824 (Lands not eligible for special assessment) (3).

(d)

Any costs paid or incurred to purchase or otherwise acquire the land.

(e)

The cost of purchase or other acquisition of tools and equipment with a useful life of more than one year.

(4)

To qualify for the credit:

(a)

The project must be completed to specifications approved by the State Forester.

(b)

The taxpayer’s portion of the project costs must be $500 or more.

(c)

The taxpayer must be a private individual, corporation, group, Indian tribe or other native group, association or other nonpublic legal entity owning, purchasing under recorded contract of sale or leasing at least five acres of Oregon commercial forestland.

(d)

Prior to December 31, 2012, the taxpayer must file with the State Forester a written request for preliminary certification under ORS 315.106 (Reforestation credit preliminary certificate).

(5)

Any tax credit otherwise allowable under this section which 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 such 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. In all cases the taxpayer must be the person who made the investment into the project.

(6)

The credit provided by this section shall be in addition to and not in lieu of any depreciation or amortization deduction to which the taxpayer otherwise may be entitled with respect to the reforestation project and the credit shall not affect the computation of basis for the property.

(7)

In compliance with ORS chapter 183, the Department of Revenue and the State Forestry Department may adopt rules consistent with law for carrying out the provisions of this section.

(8)

As used in this section, “underproductive Oregon forestlands” means Oregon commercial forestlands not meeting the minimum stocking standards of the Oregon Forest Practices Act.

(9)

If, for any reason other than those specified in subsection (10) of this section, a new forest is not established by the last day of the second taxable year following the taxable year for which the preliminary certificate was issued, the State Forester shall so report to the Department of Revenue. The report filed under this subsection shall be the basis for the department to recover any credit granted under subsection (1)(a) of this section. If, however, the new forest is not established within the time required by this subsection on account of the reasons specified in subsection (10) of this section, any credit allowed under subsections (1)(a) and (5) of this section shall not be recovered but no further credit as provided under subsections (1)(b) and (5) of this section shall be allowed.

(10)

Subject to requalification under this section in the manner applicable for the original claim, including obtaining a new preliminary certificate, a taxpayer may claim an additional credit or credits for reestablishing a new planting in the event that the new forest is destroyed by a natural disaster or is not established for reasons beyond the control of the taxpayer, if the measures taken in completing the original or earlier project would normally have resulted in establishing the minimum number of trees per acre anticipated by the project.

(11)

Any owner affected by a determination, regarding the reforestation tax credit made by:

(a)

The State Forester, except for a denial of a request for a preliminary certificate due to the annual reforestation credit cost limitation calculated under ORS 315.108 (Annual reforestation credit cost limitation), may appeal that determination in the manner provided for in ORS 526.475 (Appeal of decisions by State Forester) (1).

(b)

The Department of Revenue, may appeal that determination in the manner provided for in ORS 526.475 (Appeal of decisions by State Forester) (2). [1993 c.730 §8 (enacted in lieu of 316.094, 317.102 and 318.110); 1995 c.746 §23; 2001 c.359 §1; 2003 c.454 §122; 2003 c.621 §97a; 2007 c.883 §1; 2009 c.913 §19]
Note: Section 5, chapter 605, Oregon Laws 1987, provides:
Sec. 5. No tax credit shall be allowed under ORS 315.104 (Reforestation) based upon reforestation project costs if the preliminary certificate is not issued on or before December 31, 2011. [1987 c.605 §5; 1989 c.887 §4; 1995 c.746 §28; 2001 c.359 §3]
Note: 315.104 (Reforestation) is repealed January 2, 2028. See section 9, chapter 883, Oregon Laws 2007.

Source: Section 315.104 — Reforestation; rules, 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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