Personal and Corporate Income or Excise Tax Credits
Long term care insurance
(1)A taxpayer shall be allowed a credit against the taxes otherwise due under ORS chapter 316 (or, if the taxpayer is a corporation, under ORS chapter 317 or 318) for premium costs actually paid or incurred during the tax year for a long term care insurance policy:
(a)For long term care coverage of the taxpayer or a dependent or parent of the taxpayer; or
(b)That is offered by the taxpayer to employees of the taxpayer that are employed in this state.
(2)The amount of the credit allowed under this section shall equal the lesser of:
(a)Fifteen percent of the total amount of long term care insurance premiums paid or incurred by the taxpayer during the tax year; or
(b)(A) If the long term care insurance coverage is for the taxpayer and the dependents or parents of the taxpayer, $500; or
(B)If the long term care insurance coverage is for Oregon-based employees of the taxpayer and their dependents or parents, $500 multiplied by the number of employees covered.
(3)A credit may not be allowed under this section if the policy was first issued prior to January 1, 2000.
(4)The credit allowed under this section may not exceed the tax liability of the taxpayer and may not be carried forward to another tax year.
(5)In the case of a credit allowed under this section for purposes of ORS chapter 316:
(a)A nonresident shall be allowed the credit under this section in 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 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).
(c)Spouses in a marriage who file separate returns for a taxable year may each claim a share of the tax credit that would have been allowed on a joint return in proportion to the contribution of each.
(d)If a change in the taxable year of a 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 under this section shall be prorated or computed in a manner consistent with ORS 314.085 (Taxable year).
(6)As used in this section, “long term care insurance” has the meaning given that term in ORS 743.652 (Definitions for ORS 743.650 to 743.665). [1999 c.1005 §2; 2015 c.629 §38]
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)