ORS 315.141
Biomass production or collection

  • fee
  • rules
  • documentation

(1)

As used in this section:

(a)

“Agricultural producer” means a person that produces biomass in Oregon that is used, in Oregon, as biofuel or to produce biofuel.

(b)

“Biofuel” means liquid, gaseous or solid fuels, derived from biomass, that have been converted into a processed fuel ready for use as energy by a biofuel producer’s customers or for direct biomass energy use at the biofuel producer’s site.

(c)

“Biofuel producer” means a person that through activities in Oregon:

(A)

Alters the physical makeup of biomass to convert it into biofuel;

(B)

Changes one biofuel into another type of biofuel; or

(C)

Uses biomass in Oregon to produce energy.

(d)

“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)

Wood debris collected as provided under ORS chapter 459 or 459A;

(G)

Wastewater solids; or

(H)

Crops grown solely to be used for energy.

(e)

“Biomass” does not mean wood that has been treated with creosote, pentachlorophenol, inorganic arsenic or other inorganic chemical compounds or waste, other than matter described in paragraph (d) of this subsection.

(f)

“Biomass collector” means a person that collects biomass in Oregon to be used, in Oregon, as biofuel or to produce biofuel.

(g)

“Canola” means plants of the genus Brassica:

(A)

In which seeds having a high oil content are the primary economically valuable product; and

(B)

That have a high erucic acid content suitable for industrial uses or a low erucic acid content suitable for edible oils.

(h)

“Oilseed processor” means a person that receives agricultural oilseeds and separates them into meal and oil by mechanical or chemical means.

(i)

“Willamette Valley” means Clackamas, Linn, Marion, Multnomah, Polk, Washington and Yamhill Counties and the portion of Benton and Lane Counties lying east of the summit of the Coast Range.

(2)

The Director of the State Department of Energy may adopt rules to define criteria, only as the criteria apply to organic biomass, to determine additional characteristics of biomass for purposes of this section.

(3)

Intentionally left blank —Ed.

(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 in Oregon that is used, in Oregon, as biofuel or to produce biofuel; or

(B)

The collection of biomass in Oregon 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 credit is certified under subsection (5) of this section.

(c)

A taxpayer may be allowed a credit under this section for more than one of the roles defined in subsection (1) of this section, but a biofuel producer that is not also an agricultural producer or a biomass collector may not claim a credit under this section.

(d)

A credit under this section may be claimed only once for each unit of biomass.

(e)

Notwithstanding paragraph (a) of this subsection, a tax credit:

(A)

Is not allowed for canola grown, collected or produced in the Willamette Valley; and

(B)

Is not allowed for grain corn, but a tax credit shall be allowed for other corn material.

(4)

The amount of the credit shall equal the amount certified under subsection (5) of this section.

(5)

Intentionally left blank —Ed.

(a)

The State Department of Energy may establish by rule procedures and criteria for determining the amount of the tax credit to be certified under this section, consistent with ORS 469B.403 (Biomass). The department shall provide written certification to taxpayers that are eligible to claim the credit under this section.

(b)

The State Department of Energy may charge and collect a fee from taxpayers for certification of credits under this section. The fee may not exceed the cost to the department of determining the amount of certified cost.

(6)

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

(7)

Each agricultural producer or biomass collector shall maintain the written documentation of the amount certified for tax credit under this section in its records for a period of at least five years after the tax year in which the credit is claimed and provide the written documentation to the Department of Revenue upon request.

(8)

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

(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 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.

(10)

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 tax year of the taxpayer occurs as described in ORS 314.085 (Taxable year), or if the department terminates the taxpayer’s tax 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).

(11)

The Director of the State Department of Energy may order the suspension or revocation of a certification issued under this section, as provided in ORS 315.061 (Suspension, revocation or forfeiture). [2007 c.739 §2; 2007 c.590 §4; 2009 c.909 §49; 2011 c.730 §2a; 2012 c.45 §15; 2013 c.750 §40; 2019 c.483 §6]
Note: Section 6, chapter 739, Oregon Laws 2007, provides:
Sec. 6. (1) ORS 315.141 (Biomass production or collection), 315.144 (Transfer of biomass credit) and 469B.403 (Biomass) apply to tax credits for tax years beginning on or after January 1, 2007, and before January 1, 2018.

(2)

Notwithstanding subsection (1) of this section, a tax credit is not allowed for wheat grain (other than nongrain wheat material) for tax years beginning before January 1, 2009, or on or after January 1, 2018. [2007 c.739 §6; 2007 c.590 §5; 2009 c.913 §18; 2011 c.730 §2; 2016 c.29 §11; 2017 c.610 §12]

Source: Section 315.141 — Biomass production or collection; fee; rules; documentation, https://www.­oregonlegislature.­gov/bills_laws/ors/ors315.­html.

Notes of Decisions

Where timber mill operator purchased pulp logs removed from forest, stripped bark and turned logs into wood chips, then sold bark as hog fuel, mill operator is not eligible for biomass tax credit because tax credit is available only when woody debris is removed from forest as debris and sold for biofuel. Warrenton Fiber Company v. Department of Energy, 283 Or App 270, 388 P3d 372 (2016)

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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