Signed by Governor Ted Kulongoski

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that establishes expiration dates for various tax credits and personal exemption credits, including, but not limited to, the following highlights.

Highlights:

-Establishes an expiration date of January 1, 2012 for the following (Secs. 3, 5, 6, 11, 14, 16 & 20):

-Tax credit for business firms engaged or preparing to engage in electronic commerce in an enterprise zone (285C.095), or a city that has been designated for electronic commerce (285C.100), equal to 25 percent of the investments made by the business firm in capital assets; -Tax credit for crop growers who make a qualified donation of the crop to a cooperative, food bank, or other charitable organization engaged in the distribution of food without charge, equal to 10 percent of the value of the crop donated; -Tax credit for individuals who voluntarily remove riparian land from farm production for conservation practices that are consistent with the agricultural water quality management plan administered by the Department of Agriculture, equal to 75 percent of the market value of the crops forfeited; -Tax credit for contractors who construct or install a fueling station necessary to operate an alternative fuel vehicle, equal to 25 percent of the cost of the fueling station, provided that the credit does not exceed $750; -Tax credit for commercial lending institutions that issue loans to a dwelling owner that is or rents to a residential fuel oil customer or wood heating resident for the purpose of financing energy conservation measures, equal to the amount of the finance charge, with some some adjustments (317.112); -Tax credit for insurers for the gross premium tax paid on fire insurance premiums, equal to the amount of any assessment paid by the insurer or the total profit attributable to the workers' compensation line of business, whichever is less; -Tax credit for the installation of screening devices, by-pass devices, or fishways that are not part of a hydroelectric project required to by licensed under the Federal Energy Regulatory Commission, equal to 50 percent of the costs incurred, provided the credit does not exceed $5,000 per device installed; and -Tax credit for projects to reforest underproductive Oregon forestlands, equal to 50 percent of the costs incurred, including those associated with fees established by the State Forester, site preparation, and tree planting.

-Establishes an expiration date of January 1, 2014 for the following (Secs. 5, 29, 31, 34, 35, 36, 39 & 41):

-Tax credit for businesses operating a new business facility in a reservation enterprise zone (285C.306), equal to the amount of tribal property tax imposed on the new business facility or, if the business has not previously conducted business operations within the reservation enterprise zone, the amount of tribal tax imposed on the business; -Tax credit for employers that provide scholarships that meet the criteria set forth or incorporated into the letter of employee and dependent scholarship program certification issued by the Oregon Student Assistance Commission, equal to 50 percent of the amount of scholarship funds disbursed, provided that the credit does not exceed $50,000 or the tax liability of the individual for the tax year; -Tax credit for providers of rural medical care (315.613), such that at least 60 percent of the individual's practice constitutes rural medical care, equal to $5,000; -Tax credit for owners or operators of farmworker housing, equal to 50 percent of the costs incurred to complete a housing project, provided that estimated costs for all approved projects is equal to or less than $7.25 million; -Tax credit for lending institutions that issue loans to finance the costs directly associated with construction or rehabilitation of farmworker housing, equal to 50 percent of the interest earned on the loan; -Tax credit for contributions to a major political party, political committee, or candidate for nomination or election to a federal, state, or local elective office in a primary or general election, equal to the total contribution, provided that the credit does not exceed $50 ($100 on a joint tax return), or the tax liability of the tax payer, whichever is less; -Tax credit for retirement income, equal to nine percent of an individual's pension income or the individual's tax liability, whichever is less; and -Tax credit for lending institutions that issue loans for specific housing projects (317.097), equal to the amount of the finance charge, with some some adjustments (317.097).

-Establishes an expiration date of January 1, 2016 for the following (Secs. 33, 37-44 & 49-50):

-Tax credit for corporations that contribute to a university venture development fund, equal to 60 percent of the contribution, provided that the credit does not exceed $50,000 or the tax liability of the individual for the tax year; -Tax credit for food, clothing, medical care, and transportation expenses on behalf of an individual in a nursing home, equal to $250 or eight percent of the expenses incurred, whichever is less; -Personal exemption credit for children with disabilities, equal to the amount allowed as a personal exemption credit for a dependent for state personal income tax purposes; -Tax credit for elderly or permanently and totally disabled individuals, equal to 40 percent of the credit authorized under the Internal Revenue Code (§22 & §26); -Tax credit for individuals with disabilities that result in the permanent and complete loss of function of both arms or one leg, equal to $50; -Personal exemption credit for individuals with severe disabilities, who (1) have lost the use of one or both lower extremities, (2) have lost the use of both hands, or (3) have a physical or mental condition that limits their ability to earn a living, maintain a household, or provide personal transportation without orthopedic or medical equipment or outside help, equal to the amount allowed as a personal exemption credit for state personal income tax purposes; -Personal exemption credit for spouses of individuals with severe disabilities, as defined above, equal to the amount allowed as a personal exemption credit for state personal income tax purposes, provided that the spouse has no gross income for the taxable year and is not the dependent of another individual; -Tax credit for the purchase of a primary residence that was financed from a withdrawal from an individual development account (458.658), equal to the lesser of:
-The amount of the withdrawal; -The amount of usual and reasonable settlement, financing, and other costs incurred; -$2,000; or -The tax liability of the individual; -Tax assessment offset for insurers with respect to the tax liabilities resulting from the assessment of their member insurers, equal to 20 percent of the assessment amount;
-Tax credit for costs incurred for a long-term care insurance policy, equal to 15 percent of the total amount of long-term care insurance premiums incurred or $500, whichever is less, unless the coverage is provided by an Oregon based employer to their employees, then the $500 figure shall be multiplied by the number of employees and their dependents and parents covered under the plan; and -Tax credit for dependent care expenses necessary for employment, equal to the following percentages, as determined by federal taxable income:
-30 percent if income is not over $5,000; -15 percent if income is over $5,000 but no over $10,000; -8 percent if income is over $10,000 but not over $15,000; -6 percent if income is over $15,000 but not over $25,000; -5 percent if income is over $25,000 but not over $35,000; -4 percent if income is over $35,000 but not over $45,000; and -0 percent if income is over $45,000.

-This bill was sponsored by Speaker Dave Hunt at the request of the House Interim Committee on Revenue.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes expiration dates for various tax credits and personal exemption credits, including, but not limited to, the following highlights.

Highlights:

-Establishes an expiration date of January 1, 2012 for the following (Secs. 3, 5, 6, 11, 14, 16 & 20):

-Tax credit for business firms engaged or preparing to engage in electronic commerce in an enterprise zone (285C.095), or a city that has been designated for electronic commerce (285C.100), equal to 25 percent of the investments made by the business firm in capital assets; -Tax credit for crop growers who make a qualified donation of the crop to a cooperative, food bank, or other charitable organization engaged in the distribution of food without charge, equal to 10 percent of the value of the crop donated; -Tax credit for individuals who voluntarily remove riparian land from farm production for conservation practices that are consistent with the agricultural water quality management plan administered by the Department of Agriculture, equal to 75 percent of the market value of the crops forfeited; -Tax credit for contractors who construct or install a fueling station necessary to operate an alternative fuel vehicle, equal to 25 percent of the cost of the fueling station, provided that the credit does not exceed $750; -Tax credit for commercial lending institutions that issue loans to a dwelling owner that is or rents to a residential fuel oil customer or wood heating resident for the purpose of financing energy conservation measures, equal to the amount of the finance charge, with some some adjustments (317.112); -Tax credit for insurers for the gross premium tax paid on fire insurance premiums, equal to the amount of any assessment paid by the insurer or the total profit attributable to the workers' compensation line of business, whichever is less; -Tax credit for the installation of screening devices, by-pass devices, or fishways that are not part of a hydroelectric project required to by licensed under the Federal Energy Regulatory Commission, equal to 50 percent of the costs incurred, provided the credit does not exceed $5,000 per device installed; and -Tax credit for projects to reforest underproductive Oregon forestlands, equal to 50 percent of the costs incurred, including those associated with fees established by the State Forester, site preparation, and tree planting.

-Establishes an expiration date of January 1, 2014 for the following (Secs. 5, 29, 31, 34, 35, 36, 39 & 41):

-Tax credit for businesses operating a new business facility in a reservation enterprise zone (285C.306), equal to the amount of tribal property tax imposed on the new business facility or, if the business has not previously conducted business operations within the reservation enterprise zone, the amount of tribal tax imposed on the business; -Tax credit for employers that provide scholarships that meet the criteria set forth or incorporated into the letter of employee and dependent scholarship program certification issued by the Oregon Student Assistance Commission, equal to 50 percent of the amount of scholarship funds disbursed, provided that the credit does not exceed $50,000 or the tax liability of the individual for the tax year; -Tax credit for providers of rural medical care (315.613), such that at least 60 percent of the individual's practice constitutes rural medical care, equal to $5,000; -Tax credit for owners or operators of farmworker housing, equal to 50 percent of the costs incurred to complete a housing project, provided that estimated costs for all approved projects is equal to or less than $7.25 million; -Tax credit for lending institutions that issue loans to finance the costs directly associated with construction or rehabilitation of farmworker housing, equal to 50 percent of the interest earned on the loan; -Tax credit for contributions to a major political party, political committee, or candidate for nomination or election to a federal, state, or local elective office in a primary or general election, equal to the total contribution, provided that the credit does not exceed $50 ($100 on a joint tax return), or the tax liability of the tax payer, whichever is less; -Tax credit for retirement income, equal to nine percent of an individual's pension income or the individual's tax liability, whichever is less; and -Tax credit for lending institutions that issue loans for specific housing projects (317.097), equal to the amount of the finance charge, with some some adjustments (317.097).

-Establishes an expiration date of January 1, 2016 for the following (Secs. 33, 37-44 & 49-50):

-Tax credit for corporations that contribute to a university venture development fund, equal to 60 percent of the contribution, provided that the credit does not exceed $50,000 or the tax liability of the individual for the tax year; -Tax credit for food, clothing, medical care, and transportation expenses on behalf of an individual in a nursing home, equal to $250 or eight percent of the expenses incurred, whichever is less; -Personal exemption credit for children with disabilities, equal to the amount allowed as a personal exemption credit for a dependent for state personal income tax purposes; -Tax credit for elderly or permanently and totally disabled individuals, equal to 40 percent of the credit authorized under the Internal Revenue Code (§22 & §26); -Tax credit for individuals with disabilities that result in the permanent and complete loss of function of both arms or one leg, equal to $50; -Personal exemption credit for individuals with severe disabilities, who (1) have lost the use of one or both lower extremities, (2) have lost the use of both hands, or (3) have a physical or mental condition that limits their ability to earn a living, maintain a household, or provide personal transportation without orthopedic or medical equipment or outside help, equal to the amount allowed as a personal exemption credit for state personal income tax purposes; -Personal exemption credit for spouses of individuals with severe disabilities, as defined above, equal to the amount allowed as a personal exemption credit for state personal income tax purposes, provided that the spouse has no gross income for the taxable year and is not the dependent of another individual; -Tax credit for the purchase of a primary residence that was financed from a withdrawal from an individual development account (458.658), equal to the lesser of:
-The amount of the withdrawal; -The amount of usual and reasonable settlement, financing, and other costs incurred; -$2,000; or -The tax liability of the individual; -Tax assessment offset for insurers with respect to the tax liabilities resulting from the assessment of their member insurers, equal to 20 percent of the assessment amount;
-Tax credit for costs incurred for a long-term care insurance policy, equal to 15 percent of the total amount of long-term care insurance premiums incurred or $500, whichever is less, unless the coverage is provided by an Oregon based employer to their employees, then the $500 figure shall be multiplied by the number of employees and their dependents and parents covered under the plan; and -Tax credit for dependent care expenses necessary for employment, equal to the following percentages, as determined by federal taxable income:
-30 percent if income is not over $5,000; -15 percent if income is over $5,000 but no over $10,000; -8 percent if income is over $10,000 but not over $15,000; -6 percent if income is over $15,000 but not over $25,000; -5 percent if income is over $25,000 but not over $35,000; -4 percent if income is over $35,000 but not over $45,000; and -0 percent if income is over $45,000.

-This bill was sponsored by Speaker Dave Hunt at the request of the House Interim Committee on Revenue.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes expiration dates for various tax credits and personal exemption credits, including, but not limited to, the following highlights.

Highlights:

-Establishes an expiration date of January 1, 2014 for the following (Secs. 6, 8, 9, 16, 19, 21 & 26):

-Tax credit for business firms engaged or preparing to engage in electronic commerce in an enterprise zone (285C.095), or a city that has been designated for electronic commerce (285C.100), equal to 25 percent of the investments made by the business firm in capital assets; -Tax credit for crop growers who make a qualified donation of the crop to a cooperative, food bank, or other charitable organization engaged in the distribution of food without charge, equal to 10 percent of the value of the crop donated; -Tax credit for individuals who voluntarily remove riparian land from farm production for conservation practices that are consistent with the agricultural water quality management plan administered by the Department of Agriculture, equal to 75 percent of the market value of the crops forfeited; -Tax credit for contractors who construct or install a fueling station necessary to operate an alternative fuel vehicle, equal to 25 percent of the cost of the fueling station, provided that the credit does not exceed $750; -Tax credit for commercial lending institutions that issue loans to a dwelling owner that is or rents to a residential fuel oil customer or wood heating resident for the purpose of financing energy conservation measures, equal to the amount of the finance charge, with some some adjustments (317.112); -Tax credit for insurers for the gross premium tax paid on fire insurance premiums, equal to the amount of any assessment paid by the insurer or the total profit attributable to the workers' compensation line of business, whichever is less; and -Tax credit for the installation of screening devices, by-pass devices, or fishways that are not part of a hydroelectric project required to by licensed under the Federal Energy Regulatory Commission, equal to 50 percent of the costs incurred, provided the credit does not exceed $5,000 per device installed.

-Establishes an expiration date of January 1, 2016 for the following (Secs. 5, 24, 29, 31, 33-36, 39 & 41):

-Tax credit for businesses operating a new business facility in a reservation enterprise zone (285C.306), equal to the amount of tribal property tax imposed on the new business facility or, if the business has not previously conducted business operations within the reservation enterprise zone, the amount of tribal tax imposed on the business; -Tax credit for employers that provide scholarships that meet the criteria set forth or incorporated into the letter of employee and dependent scholarship program certification issued by the Oregon Student Assistance Commission, equal to 50 percent of the amount of scholarship funds disbursed, provided that the credit does not exceed $50,000 or the tax liability of the individual for the tax year; -Tax credit for providers of rural medical care (315.613), such that at least 60 percent of the individual's practice constitutes rural medical care, equal to $5,000; -Tax credit for corporations that contribute to a university venture development fund (351.697), equal to 60 percent of the contribution, provided that the credit does not exceed $50,000 or the tax liability of the individual for the tax year; -Tax credit for owners or operators of farmworker housing, equal to 50 percent of the costs incurred to complete a housing project, provided that estimated costs for all approved projects is equal to or less than $7.25 million; -Tax credit for lending institutions that issue loans to finance the costs directly associated with construction or rehabilitation of farmworker housing, equal to 50 percent of the interest earned on the loan; -Tax credit for contributions to a major political party, political committee, or candidate for nomination or election to a federal, state, or local elective office in a primary or general election, equal to the total contribution, provided that the credit does not exceed $50 ($100 on a joint tax return), or the tax liability of the tax payer, whichever is less; -Tax credit for retirement income, equal to nine percent of an individual's pension income or the individual's tax liability, whichever is less; -Tax credit for lending institutions that issue loans for specific housing projects (317.097), equal to the amount of the finance charge, with some some adjustments (317.097); and -Tax credit for projects to reforest underproductive Oregon forestlands, equal to 50 percent of the costs incurred, including those associated with fees established by the State Forester, site preparation, and tree planting.

-Establishes an expiration date of January 1, 2018 for the following (Secs. 42-49 & 55-56):

-Tax credit for food, clothing, medical care, and transportation expenses on behalf of an individual in a nursing home, equal to $250 or eight percent of the expenses incurred, whichever is less; -Personal exemption credit for children with disabilities, equal to the amount allowed as a personal exemption credit for a dependent for state personal income tax purposes; -Tax credit for elderly or permanently and totally disabled individuals, equal to 40 percent of the credit authorized under the Internal Revenue Code (§22 & §26); -Tax credit for disabilities that result in the permanent and complete loss of function of both arms or one leg, equal to $50; -Personal exemption credit for severe disabilities, meaning individuals that (1) have lost the use of one or both lower extremities, (2) have lost the use of both hands, or (3) have a physical or mental condition that limits their ability to earn a living, maintain a household, or provide personal transportation without orthopedic or medical equipment or outside help, equal to the amount allowed as a personal exemption credit for state personal income tax purposes; -Personal exemption credit for spouses of individuals with severe disabilities, equal to the amount allowed as a personal exemption credit for state personal income tax purposes, provided that the spouse has no gross income for the taxable year and is not the dependent of another individual; -Tax credit for the purchase of a primary residence that was financed from a withdrawal from an individual development account (458.658), equal to the lesser of:
- The amount of the withdrawal; -The amount of usual and reasonable settlement, financing, and other costs incurred; -$2,000; or -The tax liability of the individual;
- Tax assessment offset for insurers with respect to the tax liabilities resulting from the assessment of their member insurers, equal to 20 percent of the assessment amount; -Tax credit for costs incurred for a long-term care insurance policy, equal to 15 percent of the total amount of long-term care insurance premiums incurred or $500, whichever is less, unless the coverage is provided by an Oregon based employer to their employees, then the $500 figure shall be multiplied by the number of employees and their dependents and parents covered under the plan; and -Tax credit for dependent care expenses necessary for employment, equal to the following percentages, as determined by federal taxable income:
- 30 percent if income is not over $5,000; -15 percent if income is over $5,000 but no over $10,000; -8 percent if income is over $10,000 but not over $15,000; -6 percent if income is over $15,000 but not over $25,000; -5 percent if income is over $25,000 but not over $35,000; -4 percent if income is over $35,000 but not over $45,000; and -0 percent if income is over $45,000.

-This bill was sponsored by Speaker Dave Hunt at the request of the House Interim Committee on Revenue.

Full Bill Text