US Laws, Codes, Statutes & Cases

Chapter 317 — Corporation Excise Tax

 

2005 EDITION

 

 

CORPORATION EXCISE TAX

 

REVENUE AND TAXATION

 

GENERAL PROVISIONS

 

317.005     Short title

 

317.010     Definitions

 

317.013     Adoption of parts of Internal Revenue Code and application of federal laws and regulations

 

317.018     Statement of purpose

 

317.019     Application of Payment-in-kind Tax Treatment Act of 1983

 

317.025     Omission of previously enacted savings clauses not intended as repeal

 

317.030     License fees not repealed

 

317.035     Effect of subsequent repeal of chapter

 

317.038     Corporation not required to include income or permitted to deduct expense more than once

 

IMPOSITION OF TAX

 

317.056     Financial corporations; applicable taxes

 

317.057     Certain out-of-state financial institutions exempt from tax; exception

 

317.061     Tax rate

 

317.063     Tax rate imposed on certain long-term capital gain from farming; requirements

 

317.067     Tax on homeowners association income

 

317.070     Tax on centrally assessed, mercantile, manufacturing and business corporations

 

317.080     Exempt corporations

 

317.090     Minimum tax

 

CREDITS

 

(Generally)

 

317.097     Lending institution loans for housing

 

317.111     Weatherization loan interest; commercial lending institutions

 

317.112     Energy conservation loans to residential fuel oil customers or wood heating residents

 

317.115     Alternative fuel vehicle fueling stations

 

317.122     Insurers; amounts paid for certain taxes and assessments

 

(Temporary provisions relating to mile-based or time-based motor vehicle insurance are compiled as notes following ORS 317.122)

 

(Long Term Enterprise Zones)

 

317.124     Long term enterprise zone facilities

 

317.125     Other tax credits limited; exception

 

317.127     Long Term Enterprise Zone Fund

 

317.129     Tax payments of long term enterprise zone facilities credit claimants

 

317.131     Distribution of funds to local governments

 

(Farmworker Housing)

 

317.147     Farmworker housing loans; credit transfers; rules

 

(Education and Research)

 

317.151     Contributions of computers or scientific equipment for research to educational organizations

 

317.152     Qualified research activities credit

 

317.153     Qualified research activities; election between credits; rules

 

317.154     Alternative qualified research activities credit

 

DISSOLUTION OF TAXPAYER

 

317.190     Effect on reporting income

 

317.195     Effect on deductions allowed

 

MODIFICATIONS TO TAXABLE INCOME

 

317.259     Modifications generally

 

317.267     Dividends received by corporation from certain other corporations

 

317.273     Dividend income received by domestic corporation from certain foreign corporations

 

317.283     Nonrecognition of transactions with related domestic international sales corporation

 

317.286     Nonrecognition of transactions with related foreign sales corporation

 

317.303     Deduction or adjustment for certain federal credits

 

317.304     Addition for unused qualified business credits

 

317.307     Reduction for charitable contribution deduction under federal law; subtraction

 

317.309     Interest and dividends received from obligations of state or political subdivision

 

317.310     Balance in bad debt reserve of financial institution which has changed from reserve method to specific charge-off method of accounting

 

317.311     Application of section 243 of Tax Reform Act of 1986

 

317.312     Federal depreciation expenses of certain health care service contractors

 

317.314     Taxes on net income or profits imposed by any state or foreign country; nondeductible taxes and license fees; taxes paid to foreign country for certain income

 

317.319     Capital Construction Fund; deferred income; nonqualified withdrawals

 

317.322     Addition of long term care insurance premiums if credit is claimed

 

317.327     Modification of taxable income when deferred gain is recognized as result of out-of-state disposition of property

 

317.329     Basis for stock acquisition

 

317.344     Net operating loss carryback and carryover

 

317.349     Transaction treated as lease purchase under federal law

 

317.351     ORS 317.349 not applicable to finance leases

 

317.356     Basis on disposition of asset; adjustments to reflect depreciation, depletion, other cost recovery, federal credits and other differences in Oregon and federal basis

 

317.362     Reversal of effect of gain or loss in case of timber, coal, domestic iron ore

 

317.374     Depletion

 

317.379     Exemption of income from exercise of Indian fishing rights

 

317.383     Underground storage tank pollution prevention or essential services grant

 

317.386     Energy conservation payments exempt

 

317.388     Claim of right income repayment adjustment when credit is claimed

 

317.391     Small city business development exemption

 

317.394     Qualifying film production labor rebates

 

317.398     Qualified production activities income

 

317.401     Addition for federal prescription drug plan subsidies excluded for federal tax purposes

 

(Temporary provisions relating to exemption for certain sales of manufactured dwelling parks are compiled as notes following ORS 317.401)

 

317.476     Net losses of prior years

 

317.478     Pre-change and built-in losses

 

317.479     Limitation on use of preacquisition losses to offset built-in gain

 

317.485     Loss carryforward after reorganization; construction

 

317.488     Qualified donations and sales to educational institutions

 

RETURNS AND PAYMENT OF TAX

 

317.504     Date return considered filed or advance payment considered made

 

317.510     Requiring additional reports and information

 

FOREIGN INCOME; DOMESTIC INTERNATIONAL SALES CORPORATIONS; INSURERS

 

317.625     Income from sources without the United States

 

317.635     Domestic international sales corporation

 

317.650     Insurers; depreciation and basis provisions; confidentiality of returns; calendar year filing of returns required

 

317.655     Taxable income of insurer; computation; exclusion for certain life insurance or annuity accounts

 

317.660     Allocation of net income where insurer has both in-state and out-of-state business

 

317.665     Oregon net losses of insurer in prior years

 

UNITARY TAX

 

317.705     Definitions

 

317.710     Corporation tax return requirements

 

317.713     Group losses as offset to income of subsidiary paying preferred dividends

 

317.715     Tax return of corporation in affiliated group making consolidated federal return

 

317.720     Computation of taxable income; excess loss accounts

 

317.725     Adjustments to prevent double taxation or deduction

 

DISPOSITION OF REVENUE

 

317.850     Disposition of revenue

 

UNRELATED BUSINESS INCOME OF CERTAIN EXEMPT CORPORATIONS

 

317.920     Tax imposed on unrelated business income of certain exempt corporations

 

317.930     Exceptions and limitations

 

317.950     Assessment of deficiency

 

PENALTIES

 

317.991     Civil penalty; noncompliance with ORS 317.097 relating to credit for housing rehabilitation loans

 

GENERAL PROVISIONS

 

      317.005 Short title. This chapter may be cited as the Corporation Excise Tax Law. [Amended by 2005 c.94 §83]

 

      317.010 Definitions. As used in this chapter, unless the context requires otherwise:

      (1) “Centrally assessed corporation” means every corporation the property of which is assessed by the Department of Revenue under ORS 308.505 to 308.665.

      (2) “Department” means the Department of Revenue.

      (3)(a) “Consolidated federal return” means the return permitted or required to be filed by a group of affiliated corporations under section 1501 of the Internal Revenue Code.

      (b) “Consolidated state return” means the return required to be filed under ORS 317.710 (5).

      (4) “Doing business” means any transaction or transactions in the course of its activities conducted within the state by a national banking association, or any other corporation; provided, however, that a foreign corporation whose activities in this state are confined to purchases of personal property, and the storage thereof incident to shipment outside the state, shall not be deemed to be doing business unless such foreign corporation is an affiliate of another foreign or domestic corporation which is doing business in Oregon. Whether or not corporations are affiliated shall be determined as provided in section 1504 of the Internal Revenue Code.

      (5) “Excise tax” means a tax measured by or according to net income imposed upon national banking associations, all other banks, and financial, centrally assessed, mercantile, manufacturing and business corporations for the privilege of carrying on or doing business in this state.

      (6) “Financial institution” or “financial corporation” means a bank or trust company organized under ORS chapter 707, national banking association or production credit association organized under federal statute, building and loan association, savings and loan association, mutual savings bank, and any other corporation whose principal business is in direct competition with national and state banks.

      (7) “Internal Revenue Code,” except where the Legislative Assembly has provided otherwise, refers to the laws of the United States or to the Internal Revenue Code as they are amended and in effect:

      (a) On December 31, 2004; or

      (b) If related to the definition of taxable income, as applicable to the tax year of the taxpayer.

      (8) “Oregon taxable income” means taxable income, less the deduction allowed under ORS 317.476, except as otherwise provided with respect to insurers in subsection (11) of this section and ORS 317.650 to 317.665.

      (9) “Oregon net loss” means taxable loss, except as otherwise provided with respect to insurers in subsection (11) of this section and ORS 317.650 to 317.665.

      (10) “Taxable income or loss” means the taxable income or loss determined, or in the case of a corporation for which no federal taxable income or loss is determined, as would be determined, under chapter 1, Subtitle A of the Internal Revenue Code and any other laws of the United States relating to the determination of taxable income or loss of corporate taxpayers, with the additions, subtractions, adjustments and other modifications as are specifically prescribed by this chapter except that in determining taxable income or loss for any year, no deduction under ORS 317.476 or 317.478 and section 45b, chapter 293, Oregon Laws 1987, shall be allowed. If the corporation is a corporation to which ORS 314.280 or 314.605 to 314.675 (requiring or permitting apportionment of income from transactions or activities carried on both within and without the state) applies, to derive taxable income or loss, the following shall occur:

      (a) From the amount otherwise determined under this subsection, subtract nonbusiness income, or add nonbusiness loss, whichever is applicable.

      (b) Multiply the amount determined under paragraph (a) of this subsection by the Oregon apportionment percentage defined under ORS 314.280, 314.650 or 314.670, whichever is applicable. The resulting product shall be Oregon apportioned income or loss.

      (c) To the amount determined as Oregon apportioned income or loss under paragraph (b) of this subsection, add nonbusiness income allocable entirely to Oregon under ORS 314.280 or 314.625 to 314.645, or subtract nonbusiness loss allocable entirely to Oregon under ORS 314.280 or 314.625 to 314.645. The resulting figure is “taxable income or loss” for those corporations carrying on taxable transactions or activities both within and without Oregon.

      (11) As used in ORS 317.122 and 317.650 to 317.665, “ insurer” means any domestic, foreign or alien insurer as defined in ORS 731.082 and any interinsurance and reciprocal exchange and its attorney in fact with respect to its attorney in fact net income as a corporate attorney in fact acting as attorney in compliance with ORS 731.458, 731.462, 731.466 and 731.470 for the reciprocal or interinsurance exchange. However, “insurer” does not include title insurers or health care service contractors operating pursuant to ORS 750.005 to 750.095. [Amended by 1953 c.385 §9; 1959 c.631 §1; 1963 c.571 §1; subsection (18) enacted as 1969 c.600 §2; 1975 c.368 §4; 1977 c.866 §2; 1983 c.162 §3; 1984 c.1 §5; 1985 c.802 §20; 1987 c.293 §31; 1989 c.625 §15; 1991 c.457 §8; 1993 c.726 §38; 1995 c.556 §12; 1995 c.786 §12; 1997 c.154 §49; 1997 c.839 §26; 1999 c.224 §8; 2001 c.660 §46; 2003 c.77 §19; 2005 c.832 §31]

 

      317.013 Adoption of parts of Internal Revenue Code and application of federal laws and regulations. (1) Those portions of the Internal Revenue Code, and any other laws of the United States pertaining to the determination of taxable income of corporate taxpayers, are adopted by reference as a part of this chapter. Those portions of the Internal Revenue Code and other laws of the United States have full force and effect under this chapter unless modified by other provisions of this chapter.

      (2) Insofar as is practicable in the administration of this chapter, the Department of Revenue shall apply and follow the administrative and judicial interpretations of the federal income tax law. When a provision of the federal income tax law is the subject of conflicting opinions by two or more federal courts, the department shall follow the rule observed by the United States Commissioner of Internal Revenue until the conflict is resolved. Nothing contained in this section limits the right or duty of the department to audit the return of any taxpayer or to determine any fact relating to the tax liability of any taxpayer.

      (3) When portions of the Internal Revenue Code incorporated by reference as provided in subsection (1) of this section refer to rules or regulations prescribed by the Secretary of the Treasury, they are regarded as rules adopted by the department under and in accord with the provisions of this chapter, whenever they are prescribed or amended.

      (4)(a) When portions of the Internal Revenue Code incorporated by reference as provided in subsection (1) of this section are later corrected by an Act or Title within an Act of the United States Congress designated as an Act or Title making technical corrections, then notwithstanding the date that the Act or Title becomes law, those portions of the Internal Revenue Code, as so corrected, shall be the portions of the Internal Revenue Code incorporated by reference as provided in this section or ORS 317.010 or 317.018 and shall take effect, unless otherwise indicated by the Act or Title (in which case the provisions shall take effect as indicated in the Act or Title) as if originally included in the Act being technically corrected. If, on account of this subsection, any adjustment is required to an Oregon return that would otherwise be prevented by operation of law or rule, the adjustment shall be made, notwithstanding any law or rule to the contrary, in the manner provided under ORS 314.135.

      (b) As used in this subsection, “Act or Title” includes any subtitle, division or other part of an Act or Title. [1983 c.162 §11; 1984 c.1 §6; 1985 c.802 §32; 1987 c.293 §32; 1997 c.839 §27; 2003 c.77 §20]

 

      317.015 [Repealed by 1957 c.632 §1 (314.075 and 314.080 enacted in lieu of 316.025, 316.030, 317.015 and 317.020)]

 

      317.016 [1967 c.274 §§2,3,5; 1975 c.705 §10; repealed by 1983 c.162 §57]

 

      317.017 [1985 c.802 §48; repealed by 1997 c.839 §69]

 

      317.018 Statement of purpose. It is the intent of the Legislative Assembly:

      (1) To make the Oregon corporate excise tax law, insofar as it relates to the measurement of taxable income, identical to the provisions of the federal Internal Revenue Code, as in effect and applicable for the tax year of the taxpayer, to the end that taxable income of a corporation for Oregon purposes is the same as it is for federal income tax purposes, subject to Oregon’s jurisdiction to tax, and subject to the additions, subtractions, adjustments and modifications contained in this chapter.

      (2) To achieve the results desired under subsection (1) of this section by application of the various provisions of the federal Internal Revenue Code relating to the definitions for corporations, of income, deductions, accounting methods, accounting periods, taxation of corporations, basis and other pertinent provisions relating to gross income. It is not the intent of the Legislative Assembly to adopt federal Internal Revenue Code provisions dealing with the computation of tax, tax credits or any other provisions designed to mitigate the amount of tax due.

      (3) To impose on each corporation doing business within this state an excise tax for the privilege of carrying on or doing that business measured by its federal taxable income as adjusted in this chapter. [1983 c.162 §2; 1984 c.1 §7; 1985 c.802 §21; 1987 c.293 §33; 1989 c.625 §16; 1991 c.457 §9; 1993 c.726 §39; 1995 c.556 §13; 1997 c.839 §28]

 

      317.019 Application of Payment-in-kind Tax Treatment Act of 1983. The Payment-in-kind Tax Treatment Act of 1983 (P.L. 98-4, as amended by section 1061 of P.L. 98-369) shall apply in deriving Oregon taxable income under this chapter, notwithstanding that the Act is not part of the Internal Revenue Code. [1985 c.802 §44]

 

      317.020 [Repealed by 1957 c.632 §1 (314.075 and 314.080 enacted in lieu of 316.025, 316.030, 317.015 and 317.020)]

 

      317.021 [1985 c.802 §60; 1987 c.293 §34; renumbered 314.031 in 1993]

 

      317.022 [1983 c.162 §41; 1984 c.1 §8; repealed by 2005 c.94 §84]

 

      317.025 Omission of previously enacted savings clauses not intended as repeal. The omission from the Oregon Revised Statutes of those statutes which were part of Acts amending the statutes that constitute the source of this chapter and which provided savings clauses for the statutes amended, is not intended as a repeal of them. Such statutes shall, in so far as they are applicable, continue to be so applicable.

 

      317.030 License fees not repealed. Nothing in this chapter shall be construed to repeal the present capital stock tax or annual corporation license fee otherwise provided for by law.

 

      317.035 Effect of subsequent repeal of chapter. In the event of repeal of this chapter, unless otherwise specifically provided in the repeal, this chapter shall remain in full force for the assessment, imposition and collection of the tax and all interest, penalty or forfeitures which have accrued or may accrue in relation to any such tax for the calendar year in which the tax is repealed.

 

      317.038 Corporation not required to include income or permitted to deduct expense more than once. (1) Nothing contained in this chapter shall be construed to require a corporation to include an item of income, or to permit a corporation to deduct an expense item, more than once in computing Oregon taxable income.

      (2) The changes to the corporate excise and income tax laws by chapter 162, Oregon Laws 1983, shall not be applied to preclude a corporation from taking into account a deduction or a loss to which it otherwise would be entitled.

      (3) The changes to the corporate excise and income tax laws by chapter 162, Oregon Laws 1983, shall not be applied to preclude a corporation from including income which it otherwise would be required to include. [1983 c.162 §40; 1985 c.802 §21e]

 

      317.045 [1989 c.625 §19; repealed by 1991 c.457 §24]

 

      317.055 [Amended by 1957 c.607 §1; subsection (2) of 1961 Replacement Part derived from 1957 c.607 §11 and 1957 s.s. c.5 §1; 1963 c.571 §2; repealed by 1975 c.368 §8]

 

IMPOSITION OF TAX

 

      317.056 Financial corporations; applicable taxes. Except as otherwise required by federal law, every financial corporation located within this state shall be subject to county, city, district, political subdivision and all other local taxes imposed generally on a nondiscriminatory basis throughout the jurisdiction of the taxing authority, at the same rates and in all respects in the same manner and to the same extent as are mercantile, manufacturing and business corporations, and shall pay annually to the state an excise tax according to or measured by its Oregon taxable income, to be computed in the manner provided by this chapter at the rate provided in ORS 317.061. [1975 c.368 §3; 1983 c.162 §4; 1999 c.21 §43]

 

      317.057 Certain out-of-state financial institutions exempt from tax; exception. (1) As used in this section:

      (a) “Extranational institution” has the meaning given that term in ORS 706.008;

      (b) “Foreign association” means a foreign association as defined in ORS 722.004 or a federal association as defined in ORS 722.004, the home state of which is a state other than Oregon; and

      (c) “Out-of-state bank” has the meaning given that term in ORS 706.008.

      (2) Except as provided in this section and ORS 713.300, an out-of-state bank, extranational institution or foreign association described in ORS 713.300, that engages in activities authorized under ORS 713.300, is not subject to any tax, license fee or charge for the privilege of doing business in this state or to any tax measured by net or gross income.

      (3) If the out-of-state bank, extranational institution or foreign association acquires any property given as security for a mortgage or trust deed, all income accruing to the out-of-state bank, extranational institution or foreign association solely from the ownership, sale or other disposition of such property is subject to taxation in the same manner and on the same basis as income of corporations doing business in this state. [1999 c.30 §2]

 

      317.060 [Amended by 1957 c.607 §2; subsection (2) of 1961 Replacement Part derived from 1957 c.607 §11 and 1957 s.s. c.5 §1; 1963 c.571 §3; repealed by 1975 c.368 §8]

 

      317.061 Tax rate. The rate of the tax imposed by and computed under this chapter is six and six-tenths percent. [1975 c.368 §2; 1983 c.162 §5; 1987 c.293 §34a]

 

      317.063 Tax rate imposed on certain long-term capital gain from farming; requirements. (1) As used in this section:

      (a) “Farming” means:

      (A) Raising, harvesting and selling crops;

      (B) Feeding, breeding, managing or selling livestock, poultry, fur-bearing animals or honeybees or the produce thereof;

      (C) Dairying and selling dairy products;

      (D) Stabling or training equines, including but not limited to providing riding lessons, training clinics and schooling shows;

      (E) Propagating, cultivating, maintaining or harvesting aquatic species and bird and animal species to the extent allowed by the rules adopted by the State Fish and Wildlife Commission;

      (F) On-site constructing and maintaining equipment and facilities used for the activities described in this subsection;

      (G) Preparing, storing or disposing of, by marketing or otherwise, the products or by-products raised for human or animal use on land employed in activities described in this subsection; or

      (H) Any other agricultural or horticultural activity or animal husbandry, or any combination of these activities, except that “farming” does not include growing and harvesting trees of a marketable species other than growing and harvesting cultured Christmas trees or certain hardwood timber described in ORS 321.267 (3) or 321.824 (3).

      (b) “Section 1231 gain” has the meaning given that term in section 1231 of the Internal Revenue Code.

      (2) Notwithstanding ORS 317.061, taxable income that consists of net long-term capital gain shall be subject to tax under this chapter at a rate of five percent if all of the following conditions apply:

      (a) The gain is:

      (A) Derived from the sale or exchange of capital assets consisting of ownership interests in a corporation, partnership or other entity in which, prior to the sale or exchange, the taxpayer owned at least a 10 percent ownership interest; or

      (B) Section 1231 gain.

      (b) The property that was sold or exchanged consisted of:

      (A) Ownership interests in a corporation, partnership or other entity that is engaged in the trade or business of farming; or

      (B) Property that is predominantly used in the trade or business of farming.

      (c) The sale or exchange is to a person who is not related to the taxpayer under section 267 of the Internal Revenue Code.

      (d) The sale or exchange constitutes a substantially complete termination of all of the taxpayer’s ownership interests in a trade or business that is engaged in farming or a substantially complete termination of all of the taxpayer’s ownership interests in property that is employed in the trade or business of farming.

      (3) If the taxpayer has net long-term capital gain derived in part from the sale or exchange of property described in subsection (2)(b) of this section and in part from the sale or exchange of all other property, the net long-term capital gain that is subject to tax under this section shall be determined as follows:

      (a) Compute the net long-term capital gain derived from all property described in subsection (2)(b) of this section that was sold or exchanged during the tax year.

      (b) Compute the net capital gain or loss from the sale or exchange of all other property during the tax year.

      (c) If the amount determined under paragraph (b) of this subsection is a net capital gain, the gain that is subject to tax under subsection (2) of this section shall be the amount determined under paragraph (a) of this subsection.

      (d) If the amount determined under paragraph (b) of this subsection is a net capital loss, the gain that is subject to tax under subsection (2) of this section shall be the amount determined under paragraph (a) of this subsection minus the amount determined under paragraph (b) of this subsection. [2001 c.545 §4; 2003 c.454 §124; 2003 c.621 §99a]

 

      317.065 [Repealed by 1975 c.368 §8]

 

      317.066 [1977 c.597 §2; repealed by 1983 c.162 §57]

 

      317.067 Tax on homeowners association income. (1) A tax is hereby imposed for each taxable year on the homeowners association taxable income of every homeowners association at the rate provided in ORS 317.061 and as though the homeowners association were a corporation.

      (2) As used in this section, “homeowners association” has the meaning given that term in section 528(c) of the Internal Revenue Code. [1977 c.597 §3; 1983 c.162 §6; 1999 c.21 §44; 1999 c.90 §22a]

 

      317.070 Tax on centrally assessed, mercantile, manufacturing and business corporations. Every centrally assessed corporation, the property of which is assessed by the Department of Revenue under ORS 308.505 to 308.665, and every mercantile, manufacturing and business corporation doing business within this state, except as provided in ORS 317.080 and 317.090, shall annually pay to this state, for the privilege of carrying on or doing business by it within this state, an excise tax according to or measured by its Oregon taxable income, to be computed in the manner provided by this chapter, at the rate provided in ORS 317.061. [Amended by 1957 c.607 §3; 1957 c.709 §1; subsection (3) of 1963 Replacement Part derived from 1957 c.607 §11; 1957 c.709 §2 and 1957 s.s. c.5 §1; 1959 c.631 §2; 1963 c.627 §22 (referred and rejected); 1965 c.322 §1; 1965 c.544 §1; 1971 c.247 §1; 1975 c.368 §5; 1977 c.866 §3; 1982 1 c.16 §11; 1983 c.162 §7; 1985 c.565 §55; 1997 c.154 §50; 1999 c.21 §45; 1999 c.60 §1]

 

      317.071 [1977 c.887 §8; 1981 c.778 §40; 1981 c.894 §30; renumbered 317.111]

 

      317.072 [1967 c.592 §9; 1969 c.340 §3; 1973 c.831 §9; 1977 c.795 §12; 1977 c.866 §11; 1981 c.408 §2; 1983 c.637 §7; renumbered 317.116]

 

      317.073 [1959 c.631 §6; repealed by 1969 c.520 §49]

 

      317.074 [1955 c.592 §2; 1957 c.607 §4; subsection (5) derived from 1957 c.607 §11 and 1957 s.s. c.5 §1; repealed by 1969 c.520 §49]

 

      317.075 [Repealed by 1955 c.592 §4]

 

      317.076 [1969 c.600 §9; renumbered 317.122]

 

      317.077 [1977 c.839 §10; 1979 c.439 §2; renumbered 317.128]

 

      317.078 [1969 c.600 §5; 1983 c.162 §35; renumbered 317.650]

 

      317.080 Exempt corporations. The following corporations are exempt from the taxes imposed by this chapter:

      (1) Organizations described in subsection (c) and subsection (j) of section 501 of the Internal Revenue Code unless the exemption is denied under subsection (h), (i) or (m) of section 501 or under section 502, 503 or 505 of the Internal Revenue Code.

      (2) Organizations described in section 501(d) of the Internal Revenue Code, unless the exemption is denied under section 502 or 503 of the Internal Revenue Code.

      (3) Organizations described in section 501(e) of the Internal Revenue Code.

      (4) Organizations described in section 501(f) of the Internal Revenue Code.

      (5) Charitable risk pools described in section 501(n) of the Internal Revenue Code.

      (6) Organizations described in section 521 of the Internal Revenue Code.

      (7) Qualified state tuition programs described in section 529 of the Internal Revenue Code.

      (8) Foreign or alien insurance companies, but only with respect to the underwriting profit derived from writing wet marine and transportation insurance subject to tax under ORS 731.824 and 731.828.

      (9) Corporations, organized and operated primarily for the purpose of furnishing permanent residential, recreational and social facilities primarily for elderly persons, which:

      (a) Are corporations not for profit, authorized to transact business in this state pursuant to ORS chapter 65 or any statute repealed by chapter 580, Oregon Laws 1959;

      (b) Receive not less than 95 percent of their operating gross income (excluding any investment income) solely from payments for living, medical, recreational, and social services and facilities, paid by or on behalf of the elderly persons using the facilities of such corporation;

      (c) Permit no part of their net earnings to inure to the benefit of any private stockholder or individual; and

      (d) Provide in their articles or other governing instrument that, upon dissolution, the assets remaining after satisfying all lawful debts and liabilities shall be distributed to one or more corporations exempt from taxation under this chapter as corporations organized and operated exclusively for religious, charitable, scientific, literary or educational purposes.

      (10) People’s utility districts established under ORS chapter 261. [Amended by 1953 c.207 §1; 1953 c.653 §3; 1955 c.592 §5; last sentence of 1959 Replacement Part derived from 1955 c.592 §6; 1957 c.553 §1; 1959 c.215 §1; 1961 c.473 §1; subsection (17) enacted as 1961 c.473 §2; 1963 c.286 §1; 1967 c.359 §689; 1969 c.600 §11; 1971 c.637 §1; 1985 c.802 §28a; 1987 c.293 §36; 1987 c.838 §20; 1989 c.626 §9; 1995 c.786 §13; 1997 c.839 §29]

 

      317.083 [1981 c.778 §36; renumbered 317.386]

 

      317.084 [1987 c.911 §8e; repealed by 2005 c.80 §7]

 

      317.085 [Repealed by 1957 c.607 §10]

 

      317.087 [1981 c.720 §18; renumbered 317.133]

 

      317.090 Minimum tax. Each taxpayer named in ORS 317.056 or 317.070 shall pay annually to the state, for the privilege of carrying on or doing business by it within this state, a minimum tax of $10. The minimum tax shall not be apportionable (except in the case of a change of accounting periods), but shall be payable in full for any part of the year during which a corporation is subject to tax. [Amended by 1975 c.368 §6]

 

      317.095 [1955 c.592 §§3,6; repealed by 1965 c.479 §1 (317.096 enacted in lieu of 317.095)]

 

      317.096 [1965 c.479 §2 (enacted in lieu of 317.095); repealed by 1983 c.162 §57]

 

CREDITS

 

(Generally)

 

      317.097 Lending institution loans for housing. (1) A credit against taxes otherwise due under this chapter for the taxable year shall be allowed to a lending institution in an amount equal to the difference between:

      (a) The amount of finance charge charged by the lending institution during the taxable year at an annual rate less than the market rate for a loan that is made before January 1, 2020, that complies with the requirements of this section; and

      (b) The amount of finance charge that would have been charged during the taxable year by the lending institution for the loan for housing construction, development or rehabilitation measured at the annual rate charged by the lending institution for nonsubsidized loans made under like terms and conditions at the time the loan for housing construction, development or rehabilitation is made.

      (2) The maximum amount of credit for the difference between the amounts described in subsection (1)(a) and (b) of this section may not exceed four percent of the average unpaid balance of the loan during the tax year for which the credit is claimed.

      (3) Any tax credit otherwise allowable under this section that 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 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, and any credit not used in that fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, but may not be carried forward for any tax year thereafter.

      (4) In order to be eligible for the tax credit allowed under subsection (1) of this section, the loan shall be:

      (a) Made to an individual or individuals who own the dwelling, participate in an owner-occupied community rehabilitation program and are certified by the local government or its designated agent as having an income level at the time the loan is made of less than 80 percent of the area median income; or

      (b)(A) Made to a qualified borrower;

      (B) Used to finance construction, rehabilitation or development of housing; and

      (C) Accompanied by a written certification by the Housing and Community Services Department that the:

      (i) Housing created by the loan is or will be occupied by households earning less than 80 percent of the area median income; and

      (ii) Full amount of savings from the reduced interest rate provided by the lending institution is or will be passed on to the tenants in the form of reduced housing payments, regardless of other subsidies provided to the housing project.

      (5) A loan made to refinance a loan that meets the criteria stated in subsection (4) of this section shall be treated the same as a loan that meets the criteria stated in subsection (4) of this section.

      (6) In order to be eligible for the tax credit allowed under subsection (1) of this section, the loan also shall be accompanied by a written certification by the Housing and Community Services Department that:

      (a) Specifies the period, as determined by the Housing and Community Services Department, during which the loan is eligible for the tax credit under subsection (1) of this section; and

      (b) States that the loan is within the limitation imposed by subsection (7) of this section.

      (7)(a) The Housing and Community Services Department may certify loans that are eligible under subsection (4) of this section if the total credits attributable to all loans eligible for credits under subsection (1) of this section and then outstanding do not exceed $11 million for any year. In making loan certifications, the Housing and Community Services Department shall attempt to distribute the tax credits statewide, but shall concentrate the tax credits in those areas of the state that are determined by the State Housing Council to have the greatest need for affordable housing.

      (b) The certification under subsection (6) of this section shall state the period for which the credit will be allowed, which may not exceed 20 years.

      (8) The applicant’s receipt of a credit under section 42 of the Internal Revenue Code does not affect the credit allowed under this section.

      (9) A loan meeting the requirements of subsections (4) and (6) of this section may be sold to a qualified assignee with or without the lending institution’s retaining servicing of the loan so long as a designated lending institution maintains records annually verified by a loan servicer that establish the amount of tax credit earned by the taxpayer throughout each year of eligibility.

      (10) As used in this section:

      (a) “Annual rate” means the yearly interest rate specified on the note, and not the annual percentage rate, if any, disclosed to the applicant to comply with the federal Truth in Lending Act.

      (b) “Finance charge” means the total of all interest, loan fees, interest on any loan fees financed by the lending institution, and other charges related to the cost of obtaining credit.

      (c) “Lending institution” means any insured institution, as that term is defined in ORS 706.008, any mortgage banking company that maintains an office in this state or any community development corporation that is organized under the Oregon Nonprofit Corporation Law.

      (d) “Qualified assignee” means any investor participating in the secondary market for real estate loans.

      (e) “Qualified borrower” means any borrower that is a sponsoring entity that has a controlling interest in the real property that is financed by the loan described in subsection (4) of this section. Such a controlling interest includes, but is not limited to, a controlling interest in the general partner of a limited partnership that owns the real property.

      (f) “Sponsoring entity” means a nonprofit corporation, state governmental entity, local unit of government as defined in ORS 466.706, housing authority or any other person, provided that the person has agreed to restrictive covenants imposed by a nonprofit corporation, state governmental entity, local unit of government or housing authority.

      (11) Notwithstanding any other provision of law, a lending institution that is a community development corporation organized under the Oregon Nonprofit Corporation Law may transfer any part or all of any tax credit arising under subsection (1) of this section to one or more other lending institutions that are stockholders or members of the community development corporation or that otherwise participate through the community development corporation in the making of one or more loans that generate the tax credit under subsection (1) of this section.

      (12) The lending institution shall file an annual statement with the Housing and Community Services Department, specifying that it has conformed with all requirements imposed by law to qualify for this tax credit.

      (13) The Housing and Community Services Department and the Department of Revenue may adopt rules to carry out the provisions of this section. [1989 c.1045 §2; 1991 c.737 §1; 1993 c.813 §8; 1995 c.746 §43; 1997 c.425 §1; 1997 c.631 §458; 1997 c.839 §31; 1999 c.21 §46; 1999 c.90 §23; 1999 c.857 §§1,4; 2001 c.660 §§47,48; 2005 c.476 §§1,3]

 

      Note: Section 2, chapter 476, Oregon Laws 2005, provides:

      Sec. 2. The amendments to ORS 317.097 by section 1 of this 2005 Act apply to tax years beginning on or after January 1, 2005. [2005 c.476 §2]

 

      317.098 [1979 c.561 §6; 1983 c.162 §8; renumbered 317.392]

 

      317.099 [1989 c.1071 §§10,10a; repealed by 1991 c.863 §69]

 

      317.100 [1979 c.483 §2; repealed by 1989 c.626 §12]

 

      317.102 [1979 c.578 §9; 1985 c.749 §2; 1987 c.605 §2; 1989 c.887 §2; 1991 c.714 §7; 1991 c.877 §24; repealed by 1993 c.730 §7 (315.104 enacted in lieu of 316.094, 317.102 and 318.110)]

 

      317.103 [1981 c.894 §§15,16; 1989 c.765 §4; 1991 c.457 §10; repealed by 1993 c.730 §35 (315.356 enacted in lieu of 316.141, 316.142 and 317.103)]

 

      317.104 [1979 c.512 §14; 1981 c.894 §13; 1989 c.765 §5; 1991 c.711 §7; repealed by 1993 c.730 §33 (315.354 enacted in lieu of 316.140 and 317.104)]

 

      317.105 [Repealed by 1983 c.162 §57]

 

      317.106 [1985 c.684 §14; 1989 c.765 §6; 1989 c.958 §11; repealed by 1993 c.730 §31 (315.324 enacted in lieu of 316.103 and 317.106)]

 

      317.110 [Amended by 1953 c.385 §9; 1973 c.233 §1; repealed by 1983 c.162 §57]

 

      317.111 Weatherization loan interest; commercial lending institutions. (1) A credit against taxes otherwise due under this chapter for the taxable year shall be allowed commercial lending institutions in an amount equal to the difference between:

      (a) The maximum amount of interest allowed to be charged during the taxable year under section 6b, chapter 887, Oregon Laws 1977, for loans made before November 1, 1981, by the lending institution to space-heating customers for the purpose of financing weatherization services; and

      (b) The amount of interest which would have been charged during the taxable year by the lending institution for such loans at an annual interest rate which is the lesser of the following:

      (A) The average interest rate charged by the commercial lending institution for home improvement loans made during the calendar year immediately preceding the year in which the loans for weatherization services are made; or

      (B) Twelve percent.

      (2) Any tax credit otherwise allowable under this section which is not used by the taxpayer in a particular year may be carried forward and used in each of the 15 years following the unused tax credit year. However, the entire amount of the unused credit for an unused credit year shall be carried forward to the earliest of the 15 years to which it may be carried.

      (3) No credit shall be allowed under this section for loans made on or after November 1, 1981. [Formerly 317.071; 1985 c.712 §1]

 

      317.112 Energy conservation loans to residential fuel oil customers or wood heating residents. (1) A credit against taxes otherwise due under this chapter for the taxable year shall be allowed to a commercial lending institution in an amount equal to the difference between:

      (a) The amount of finance charge charged during the taxable year including interest on the loan and interest on any loan fee financed at an annual rate of six and one-half percent, by the lending institution to a dwelling owner who is or who rents to a residential fuel oil customer, or who is or who rents to a wood heating resident for the purpose of financing energy conservation measures; and

      (b) The amount of finance charge that would have been charged during the taxable year, including interest on the loan and interest on any loan fee financed by the lending institution for the loan for energy conservation measures at an annual rate that is the lesser of the following:

      (A) The annual rate charged by the commercial lending institution for nonsubsidized loans made under like terms and conditions at the time the loan for energy conservation measures is made; or

      (B) An upper limit established by rule by the Director of the State Department of Energy.

      (2) Any tax credit otherwise allowable under this section that 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 the next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise until the 15th succeeding tax year. The credit may not be carried forward beyond the 15th succeeding tax year.

      (3) In order to be eligible for the tax credit allowed under subsection (1) of this section, the loan shall:

      (a) Be made only to an owner of an oil-heated or wood-heated dwelling who presents the results of an energy audit pursuant to ORS 469.631 to 469.645, 469.649 to 469.659, 469.673 to 469.683 or 469.685 that is conducted by a fuel oil dealer, investor-owned utility or publicly owned utility or through the State Department of Energy, regardless of whether that fuel oil dealer or utility provides the dwelling’s space heating energy.

      (b) Be subject to an annual rate not to exceed six and one-half percent and have a term not exceeding 10 years.

      (c) Not finance any materials installed in the construction of a new dwelling, additions to existing structures or remodeling that adds living space.

      (d) Finance only those energy conservation measures that are recommended as cost-effective in the energy audit, and any loan fee that is included in the body of the loan.

      (4) The credit allowed under this section may not be allowed to the extent that the loan exceeds $5,000 for a single dwelling unit, or, if the dwelling owner is a corporation described in ORS 307.375, to the extent that the loan exceeds $2,000 for a single dwelling unit.

      (5) A commercial lending institution may charge, finance and collect a nonrefundable front-end loan fee, and such a fee does not affect the eligibility of the loan for a tax credit under this section. The fee, if any, may not exceed that charged by the lending institution for nonsubsidized loans made under like terms and conditions at the time the loan for energy conservation measures is made.

      (6) Nothing in this section or in rules adopted under this section shall be construed to cause a loan to violate the usury laws of this state.

      (7) As used in this section, “annual rate,” “commercial lending institution,” “cost-effective,” “dwelling,” “dwelling owner,” “energy audit,” “energy conservation measures,” “finance charge,” “fuel oil dealer,” “residential fuel oil customer,” “space heating” and “wood heating resident” have the meaning given those terms in ORS 469.710. [1981 c.894 §28; 1987 c.749 §1; 1991 c.718 §1; 1995 c.746 §21; 2001 c.584 §3]

 

      317.113 [1987 c.591 §15; 1989 c.381 §§9,12,15; 1991 c.877 §§25,26,27; 1991 c.916 §§21,22,23; 1993 c.18 §§83,84,85; repealed by 1997 c.170 §33]

 

      317.114 [1987 c.682 §6; 1991 c.877 §28; 1991 c.929 §2; repealed by 1993 c.730 §23 (315.208 enacted in lieu of 316.132, 317.114 and 318.160)]

 

      317.115 Alternative fuel vehicle fueling stations. (1) A business tax credit is allowed against the taxes otherwise due under this chapter based upon costs paid or incurred for construction or installation in a dwelling of a fueling station necessary to operate an alternative fuel vehicle. The credit is allowed to the contractor who constructs the dwelling in which the fueling station is incorporated or installs the fueling station in the dwelling but may be taken by any person under the circumstances described in ORS 469.170 (9) and the rules adopted thereunder.

      (2) The credit is 25 percent of the cost of the fueling station but the total credit shall not exceed $750 if the fueling station is placed in service on or after January 1, 1998.

      (3) To qualify for a credit under this section, all of the following are required:

      (a) The fueling station must be constructed, installed and operated in accordance with ORS 469.160 to 469.180 and a certificate issued thereunder.

      (b) The contractor must present with the claim for credit a verification form signed not only by the contractor but by the owner, contract purchaser or tenant authorizing the contractor to claim the credit and indicating that the owner, contract purchaser or tenant will not claim a credit based upon the cost of the same fueling station under ORS 316.116 or this section.

      (c) The credit must be claimed for the tax year in which the fueling station that has been certified under ORS 469.160 to 469.180 first is placed in service or the immediately succeeding tax year.

      (4) The credit allowed under this section shall not affect the computation of basis for purposes of this chapter, nor shall the credit affect the computation or be in lieu of any depreciation deduction for the fueling station.

      (5) The credit allowed under this section in any one year shall not exceed the tax liability of the taxpayer for that year.

      (6) Any tax credit otherwise allowable under this section that 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, and any credit not used in that third succeeding tax year may be carried forward and used in the fourth succeeding tax year, and any credit not used in that fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, but may not be carried forward for any tax year thereafter.

      (7) The certificate and verification form described under ORS 469.170 may be transferred by the contractor to the first purchaser of the dwelling that incorporates the fueling station if the purchaser intends to use the dwelling as a principal or secondary residence or, in the case of construction or installation of a fueling station in an existing dwelling, the current owner, if the current owner intends to use, or uses, the dwelling as a principal or secondary residence. A certificate and verification form so transferred may be used by the purchaser to claim a credit under ORS 316.116. [1997 c.534 §15; 1999 c.21 §47; 2001 c.584 §8]

 

      317.116 [Formerly 317.072; 1987 c.596 §3; 1989 c.802 §3; repealed by 1993 c.730 §29 (315.304 enacted in lieu of 316.097 and 317.116)]

 

      317.120 [1969 c.681 §5; repealed by 1983 c.162 §57]

 

      317.122 Insurers; amounts paid for certain taxes and assessments. (1) A credit against taxes imposed by this chapter shall be allowed insurers for the gross premium tax paid on fire insurance premiums in accordance with ORS 731.820.

      (2) A credit against the taxes otherwise due under this chapter shall be allowed to an insurer. The amount of the credit shall be the lesser of:

      (a) The amount of any assessments paid by the insurer during the tax year pursuant to ORS 656.612; or

      (b) The total profit attributable to the workers’ compensation line of business, net of reinsurance and including all investment gain attributable to the workers’ compensation line of business, determined in the manner prescribed under ORS 731.574 by the Director of the Department of Consumer and Business Services, with the modifications under ORS 317.655 attributable to the workers’ compensation line of business, and then apportioned in accordance with ORS 317.660 and multiplied by the corporate tax rate set forth in ORS 317.061. In making the apportionment under ORS 317.660 for purposes of this paragraph, the factors shall be determined using only items attributable to the workers’ compensation line of business. [Formerly 317.076; 1995 c.786 §14]

 

(Temporary provisions relating to mile-based or time-based motor vehicle insurance)

 

      Note: Sections 2 to 5, chapter 545, Oregon Laws 2003, provide:

      Sec. 2. (1) As used in this section:

      (a) “Mile-based rating plan” means a rating plan for which a unit of exposure is one mile traveled by the insured motor vehicle.

      (b) “Time-based rating plan” means a rating plan for which a unit of exposure is one minute or one hour traveled by the insured motor vehicle.

      (c) “Unit of exposure” means a unit that measures the loss exposure assumed by an insurer, the total of such units of which is multiplied by the policy rate, or rates, to produce the policy premium.

      (2) A corporation shall be allowed a credit against the taxes that are otherwise due under this chapter or ORS chapter 318 for providing motor vehicle insurance policies in this state that are at least 70 percent based on a mile-based rating plan or a time-based rating plan.

      (3) The amount of the credit shall equal $100 for each vehicle insured under a policy described in subsection (2) of this section that is issued in this state during the tax year.

      (4) The credit may not exceed $300 for each policy described in subsection (2) of this section that is issued by the taxpayer.

      (5) The total amount of credit allowed under this section in a tax year may not exceed the tax liability of the taxpayer and may not be carried forward to another tax year.

      (6) In order for credit to be claimed for a policy under this section, the taxpayer must obtain a verified statement from the policyholder stating that the policy for which a credit is claimed covers all vehicles used at the household of the policyholder and owned, leased or regularly operated by the policyholder or by an individual who is legally related to the policyholder or who otherwise regularly shares vehicles with the policyholder.

      (7) The credit may not be claimed with respect to a policy for which a credit was allowed in a previous tax year. [2003 c.545 §2]

      Sec. 3. Notwithstanding section 2 of this 2003 Act, if a credit claimed under section 2 of this 2003 Act, when added to all previous credits allowed under section 2 of this 2003 Act by all taxpayers for all tax years, exceeds $1 million, the credit shall be disallowed. [2003 c.545 §3]

      Sec. 4. Sections 2 and 3 of this 2003 Act apply to tax years beginning on or after January 1, 2005, and before January 1, 2010. [2003 c.545 §4]

      Sec. 5. Notwithstanding section 2 (3) of this 2003 Act, for tax years beginning on or after January 1, 2005, and before January 1, 2006, a credit may be allowed under section 2 of this 2003 Act for motor vehicle insurance policies issued in this state on or after January 1, 2004, that are otherwise eligible for a credit under section 2 of this 2003 Act. [2003 c.545 §5]

 

(Long Term Enterprise Zones)

 

      317.124 Long term enterprise zone facilities. (1) As used in this section:

      (a) “Facility” has the meaning given that term in ORS 285C.400.

      (b) “Payroll costs” means the costs of paying employee salary, wages and other remuneration in cash or property, and employee benefit costs, including but not limited to workers’ compensation, health, life or other insurance premium payments, payroll taxes and contributions to pension or other retirement plans.

      (2) A taxpayer that owns a facility that is exempt from property tax under ORS 285C.409 may claim a tax credit under this section against the taxes that are otherwise due under this chapter.

      (3) The credit may be claimed over a period of consecutive tax years elected by the taxpayer:

      (a) That must commence on or after the tax year in which the facility is placed in service and no later than the tax year beginning in the third calendar year after the year in which the facility is placed in service;

      (b) The duration of which must be at least five tax years and no more than 15 tax years; and

      (c) The duration of which must be established in writing by the Governor (pursuant to a request made by the taxpayer) prior to the date on which a return claiming the credit is filed.

      (4) The amount of the credit for a tax year shall equal 62.5 percent of the payroll costs of the taxpayer for that tax year that are attributable to employment at the facility.

      (5) The credit computed under subsection (4) of this section may be offset only against the qualified tax liability of the taxpayer, as determined under this subsection. To compute the qualified tax liability of the taxpayer:

      (a) Subtract the tax credit threshold amount determined under subsection (7) of this section from the tax liability of the taxpayer under this chapter; and

      (b) Multiply the difference determined under paragraph (a) of this subsection by the apportionment factor determined under subsection (6) of this section.

      (6)(a) The apportionment factor to be used in computing the qualified tax liability of the taxpayer under subsection (5) of this section shall be a fraction, the numerator of which is income of the facility for the fiscal year of the taxpayer that ends in the tax year for which the qualified tax liability of the taxpayer is being computed, and the denominator of which is the total Oregon income of the taxpayer for the fiscal year of the taxpayer that ends in the tax year for which the qualified tax liability of the taxpayer is being computed. For purposes of this computation, income shall be determined in accordance with gen