Individual development accounts
(1)A credit against taxes otherwise due under ORS chapter 316, 317 or 318 shall be allowed for donations to a fiduciary organization for distribution to individual development accounts established under ORS 458.685 (Approved purpose of account). The credit shall equal a percentage of the taxpayer’s donation amount, as determined by the fiduciary organization, but not to exceed 90 percent of any donation amount. To qualify for a credit under this section, donations to a fiduciary organization must be made prior to January 1, 2022.
(2)If a credit allowed under this section is claimed, the amount upon which the credit is based that is allowed or allowable as a deduction from federal taxable income under section 170 of the Internal Revenue Code shall be added to federal taxable income in determining Oregon taxable income. As used in this subsection, the amount upon which a credit is based is the allowed credit divided by the applicable percentage, as determined by the fiduciary organization.
(3)The allowable tax credit that may be used in any one tax year shall not exceed the tax liability of the taxpayer.
(4)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 tax credit remaining unused in the next succeeding tax year may be carried forward and used in the second succeeding tax year. Any tax credit not used in the 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.
(5)The total credits allowed to all taxpayers in any tax year under this section and ORS 458.690 (Required account features) may not exceed $7.5 million. The total credit allowed to a taxpayer in any tax year under this section and ORS 458.690 (Required account features) may not exceed $500,000. [1999 c.1000 §12; 2001 c.648 §1; 2007 c.765 §1; 2009 c.913 §48; 2015 c.701 §8; 2016 c.29 §2; 2019 c.579 §49a]
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)