ORS 315.523¹
Employee training

(1) As used in this section, “qualifying county” means a county with a population greater than 60,000 but less than 80,000 that:

(a) Is located entirely outside of the Portland Metropolitan Area Regional Urban Growth Boundary and the acknowledged urban growth boundary of cities with populations of 30,000 or more;

(b) Has an annual economic development budget of $500,000 or greater;

(c) Has an unemployment rate at least 1.5 percentage points greater than the comparable unemployment rate for the state;

(d) Is party to an agreement with an institute of higher education to coordinate efforts to promote enterprise throughout the county;

(e) Is the site of a base or installation of the Armed Forces of the United States that employs at least 750 civilian and military personnel; and

(f) Has access to Internet service with the minimum connection speed required to effectively conduct electronic commerce.

(2) A credit against taxes that are otherwise due under ORS chapter 316 or, if the taxpayer is a corporation, under ORS chapter 317 or 318, is allowed to a taxpayer who is located in a qualifying county and who establishes and implements an employee training program in collaboration with a local community college operated under ORS chapter 341.

(3) The credit allowed under this section shall be equal to 12 percent of the taxpayer’s expenses to establish and implement the employee training program described in subsection (2) of this section.

(4) For each tax year for which a credit is claimed under this section, the taxpayer shall maintain records sufficient to prove the taxpayer’s eligibility for the credit allowed under this section. A taxpayer shall maintain the records required under this subsection for at least five years.

(5) The credit allowed under this section may not exceed the tax liability of the taxpayer for the tax year.

(6) 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, but may not be carried forward for any tax year thereafter.

(7) A nonresident taxpayer shall be allowed the credit under this section. The credit shall be computed in the same manner and be subject to the same limitations as the credit granted to a resident taxpayer. However, the credit shall be prorated using the proportion provided in ORS 316.117 (Proration between Oregon income and other income for nonresidents, part-year residents and trusts).

(8) If a change in the taxable year of the taxpayer occurs as described in ORS 314.085 (Taxable year), or if the Department of Revenue terminates the taxpayer’s taxable year under ORS 314.440 (Tax as debt), the credit allowed by this section shall be prorated or computed in a manner consistent with ORS 314.085 (Taxable year).

(9) If a change in the status of a 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).

(10) Spouses in a marriage who file separate returns for a taxable year may each claim a share of the tax credit that would have been allowed on a joint return in proportion to the adjusted gross income of each. [2017 c.610 §19]

Note: Section 20, chapter 610, Oregon Laws 2017, provides:

Sec. 20. Section 19 of this 2017 Act [315.523 (Employee training)] applies to tax years beginning on or after January 1, 2017. [2017 c.610 §20]

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/­ors315.­html (2019) (last ac­cessed May 16, 2020).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2019, Chapter 315, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano315.­html (2019) (last ac­cessed May 16, 2020).
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. Currency Information