Current through Register Vol. 63, No. 9, September 1, 2024
(1) With the
exception of a facility used for resource recovery certified on or after
November 1, 1981, and pulp, paper and paperboard facilities discussed in
paragraph (2), the credit is allowable only to the taxpayer who owns or
conducts the trade or business which utilizes the facility. Therefore, if the
owner of the facility also carries on the trade or business which uses the
facility, such owner is entitled to the credit. But if the owner of the
facility leases the property to someone who carries on a trade or business
using the leased property, then the lessee is the one entitled to the credit
during the period of the lease agreement.
(2) If an application for certification of a
pulp, paper or paperboard facility is filed with the Department of
Environmental Quality on or after January 1, 1999, the credit may be claimed by
the facility's owner/lessor, including a contract purchaser, or lessee. The
owner need not operate the facility or conduct the trade or business that
utilizes the property to qualify for the credit.
(3)
(a) For
a resource recovery facility certified on or after November 1, 1981, and prior
to September 27, 1987, the credit is allowable to taxpayers who own, lease, or
have a beneficial interest in the facility. "Beneficial interest" refers to the
right to receive a profit, benefit, or other advantage from the facility. That
right must be conveyed by a contract or other written document. A capital
investment is required. Beneficial interest includes but is not limited to a
partner's interest in a partnership owning part or all of the facility, or a
contract purchaser's interest in a facility. If more than one taxpayer has an
interest in the facility, the cost may be allocated between them. It is not
necessary that the cost be allocated according to percentage of interest. The
total costs allocated cannot exceed the total certified cost.
(b) For a resource recovery facility
certified on or after September 27, 1987, the credit is allowable only to the
taxpayer who owns, or leases the facility. An allocation of the costs is not
allowed for these facilities.
(c)
For purposes of (a) and (b), it is not necessary that the taxpayer receiving
the credit operate or use the facility in the business.
(d) The taxpayer to whom the certificate is
issued must file a written statement with the Department of Revenue not later
than the final day of the first tax year for which a tax credit is claimed. For
resource recovery facilities certified prior to September 27, 1987, the
statement must designate the persons to whom the certified costs have been
allocated and the cost allocated to each. For resource recovery facilities
certified on or after September 27, 1987, the statement filed with the
Department of Revenue must designate the taxpayer claiming the
credit.
Stat. Auth.: ORS
305.100
Stats. Implemented: ORS
315.304
