Personal and Corporate Income or Excise Tax Credits
Water transit vessels
(1)As used in this section, “water transit vessel” means a United States Coast Guard licensed and inspected vessel that is primarily designed to carry 50 or more passengers and vehicles or 50 or more passengers only for a published fee across a body of water between two or more fixed points on a regular schedule.
(2)(a) 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 resident employer based upon wages actually paid by the taxpayer to a person employed in this state to assist in the manufacture of a water transit vessel.
(b)The credit allowed under this section:
(A)Must be claimed for the year in which the wages were paid;
(B)May not be claimed for wages paid to an employee who was employed by the employer during the previous tax year; and
(C)Must be for wages paid as a result of an increase in the number of full-time equivalent employees employed by the eligible taxpayer when compared to the previous tax year.
(3)The amount of the credit provided under this section shall be equal to the lesser of:
(b)15 percent of the wages paid to employees during the tax year for which the credit is claimed.
(4)The tax credit available under this section may not exceed the tax liability of the taxpayer for the tax year.
(5)(a) Wages taken into account for the purposes of subsection (3) of this section may not include any amount paid by the employer to an employee for whom the employer receives federal funds for on-the-job training.
(b)A tax credit under this section is not in lieu of any deduction for payroll costs or any other expense to which the taxpayer may be entitled.
(6)(a) A nonresident individual shall be allowed the credit computed in the same manner and subject to the same limitations as the credit allowed a resident by this section. However, the credit shall be prorated using the proportion provided in ORS 316.117 (Proration between Oregon income and other income for nonresidents, part-year residents and trusts).
(b)If a change in the taxable year of the taxpayer occurs as described in ORS 314.085 (Taxable year), or if the Department of Revenue terminates the taxpayer’s taxable year under ORS 314.440 (Tax as debt), the credit allowed by this section shall be prorated or computed in a manner consistent with ORS 314.085 (Taxable year).
(c)If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117 (Proration between Oregon income and other income for nonresidents, part-year residents and trusts). [2005 c.677 §1]
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)