2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 317 - Corporation Excise Tax › Section 317.112 - Energy conservation loans to residential fuel oil customers or wood heating residents; rules.

(1) A credit against taxes otherwise due under this chapter for the taxable year shall be allowed to a commercial lending institution in an amount equal to the difference between:
(a) The amount of finance charge charged during the taxable year including interest on the loan and interest on any loan fee financed at an annual rate of six and one-half percent, by the lending institution to a dwelling owner who is or who rents to a residential fuel oil customer, or who is or who rents to a wood heating resident for the purpose of financing energy conservation measures; and
(b) The amount of finance charge that would have been charged during the taxable year, including interest on the loan and interest on any loan fee financed by the lending institution for the loan for energy conservation measures at an annual rate that is the lesser of the following:
(A) The annual rate charged by the commercial lending institution for nonsubsidized loans made under like terms and conditions at the time the loan for energy conservation measures is made; or
(B) An upper limit established by rule by the Director of the State Department of Energy.
(2) 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 credit remaining unused in the next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise until the 15th succeeding tax year. The credit may not be carried forward beyond the 15th succeeding tax year.
(3) In order to be eligible for the tax credit allowed under subsection (1) of this section, the loan shall:
(a) Be made only to an owner of an oil-heated or wood-heated dwelling who presents the results of an energy audit pursuant to ORS 469.631 to 469.645, 469.649 to 469.659 or 469.685 that is conducted by an investor-owned utility or publicly owned utility or through the State Department of Energy, regardless of whether that utility provides the dwelling’s space heating energy.
(b) Be subject to an annual rate not to exceed six and one-half percent and have a term not exceeding 10 years.
(c) Not finance any materials installed in the construction of a new dwelling, additions to existing structures or remodeling that adds living space.
(d) Finance only those energy conservation measures that are recommended as cost-effective in the energy audit, and any loan fee that is included in the body of the loan.
(4) The credit allowed under this section may not be allowed to the extent that the loan exceeds $5,000 for a single dwelling unit, or, if the dwelling owner is a corporation described in ORS 307.375, to the extent that the loan exceeds $2,000 for a single dwelling unit.
(5) A commercial lending institution may charge, finance and collect a nonrefundable front-end loan fee, and such a fee does not affect the eligibility of the loan for a tax credit under this section. The fee, if any, may not exceed that charged by the lending institution for nonsubsidized loans made under like terms and conditions at the time the loan for energy conservation measures is made.
(6) Nothing in this section or in rules adopted under this section shall be construed to cause a loan to violate the usury laws of this state.
(7) As used in this section, "annual rate," "commercial lending institution," "cost-effective," "dwelling," "dwelling owner," "energy audit," "energy conservation measures," "finance charge," "fuel oil dealer," "residential fuel oil customer," "space heating" and "wood heating resident" have the meaning given those terms in ORS 469.710. [1981 c.894 §28; 1987 c.749 §1; 1991 c.718 §1; 1995 c.746 §21; 2001 c.584 §3; 2017 c.727 §14]
Note:
Section 16, chapter 913, Oregon Laws 2009, provides:
Sec. 16.
Except as provided in ORS 317.112 (2), a credit may not be claimed under ORS 317.112 for tax years beginning on or after January 1, 2012. [2009 c.913 §16]