Current through Register Vol. 63, No. 9, September 1, 2024
(1) A credit
against the 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 for certified film production development contributions made by the
taxpayer during the tax year to the Oregon Production Investment Fund
established under ORS 284.367 (Oregon Production Investment Fund).
(2)
(a) The
Department of Revenue shall, in cooperation with OFVO, conduct an auction of
tax credits under this section. The department may conduct the auction in the
manner that it determines is best suited to maximize the return to the state on
the sale of tax credit certifications and shall announce a reserve bid prior to
conducting the auction. The reserve amount shall be at least 90 percent of the
total amount of the tax credit. Moneys necessary to reimburse the department
for the actual costs incurred by the department in administering an auction,
not to exceed 0.25 percent of auction proceeds, are continuously appropriated
to the department. The department shall deposit net receipts from the auction
required under this section in the Oregon Production Investment Fund.
(b) OFVO shall adopt rules in order to
achieve the following goals:
(A) Subject to
paragraph (a) of this subsection, generate contributions for which tax credits
of the maximum allowable under ORS 315.514 Sec. 2(b)(A) are certified for each
fiscal year;
(B) Maximize income
and excise tax revenues that are retained by the State of Oregon for state
operations; and
(C) Provide the
necessary financial incentives for taxpayers to make contributions, taking into
consideration the impact of granting a credit upon a taxpayer's federal income
tax liability.
(3) Contributions made under this section
shall be deposited in the Oregon Production Investment Fund.
(4)
(a)
Upon receipt of a contribution, OFVO shall, except as provided in ORS\ 315.516
(Funding in lieu of tax credit certification), issue to the taxpayer written
certification of the amount certified for tax credit under this section to the
extent the amount certified for tax credit, when added to all amounts
previously certified for tax credit under this section, does not exceed the
maximum allowable under ORS 315.514 Sec. 2(b)(A) for the fiscal year in which
certification is made.
(b) OFVO and
the department are not liable, and a refund of a contributed amount need not be
made, if a taxpayer who has received tax credit certification is unable to use
all or a portion of the tax credit to offset the tax liability of the
taxpayer.
(5) To the
extent OFVO does not certify contributed amounts as eligible for a tax credit
under this section, the taxpayer may request a refund of the amount the
taxpayer contributed, and the office shall refund that amount.
(6)
(a)
Except as provided in paragraph (b) of this subsection, a tax credit claimed
under this section may not exceed the tax liability of the taxpayer and may not
be carried over to another tax year.
(b) 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) If a tax credit is claimed under this
section by a nonresident or part-year resident taxpayer, the amount shall be
allowed without proration under ORS 316.117 (Proration between Oregon income
and other income for nonresidents, part-year residents and trusts).
(8) If the amount of contribution for which a
tax credit certification is made is allowed as a deduction for federal tax
purposes, the amount of the contribution shall be added to federal taxable
income for Oregon tax purposes.
Statutory/Other Authority: ORS 284.335 & ORS
315.514
Statutes/Other Implemented: ORS
315.514
