Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 315 - PERSONAL INCOME TAX CREDITS › Section 150-315-0146 - Pollution Control Facilities: To Whom Is Credit Allowable

Current through Register Vol. 63, No. 7, July 1, 2024
(1) With the
			 exception of a facility used for resource recovery certified on or after
			 November 1, 1981, and pulp, paper and paperboard facilities discussed in
			 paragraph (2), the credit is allowable only to the taxpayer who owns or
			 conducts the trade or business which utilizes the facility. Therefore, if the
			 owner of the facility also carries on the trade or business which uses the
			 facility, such owner is entitled to the credit. But if the owner of the
			 facility leases the property to someone who carries on a trade or business
			 using the leased property, then the lessee is the one entitled to the credit
			 during the period of the lease agreement.
(2) If an application for certification of a
			 pulp, paper or paperboard facility is filed with the Department of
			 Environmental Quality on or after January 1, 1999, the credit may be claimed by
			 the facility's owner/lessor, including a contract purchaser, or lessee. The
			 owner need not operate the facility or conduct the trade or business that
			 utilizes the property to qualify for the credit.
(3)
(a) For
			 a resource recovery facility certified on or after November 1, 1981, and prior
			 to September 27, 1987, the credit is allowable to taxpayers who own, lease, or
			 have a beneficial interest in the facility. "Beneficial interest" refers to the
			 right to receive a profit, benefit, or other advantage from the facility. That
			 right must be conveyed by a contract or other written document. A capital
			 investment is required. Beneficial interest includes but is not limited to a
			 partner's interest in a partnership owning part or all of the facility, or a
			 contract purchaser's interest in a facility. If more than one taxpayer has an
			 interest in the facility, the cost may be allocated between them. It is not
			 necessary that the cost be allocated according to percentage of interest. The
			 total costs allocated cannot exceed the total certified cost.
(b) For a resource recovery facility
			 certified on or after September 27, 1987, the credit is allowable only to the
			 taxpayer who owns, or leases the facility. An allocation of the costs is not
			 allowed for these facilities.
(c)
			 For purposes of (a) and (b), it is not necessary that the taxpayer receiving
			 the credit operate or use the facility in the business.
(d) The taxpayer to whom the certificate is
			 issued must file a written statement with the Department of Revenue not later
			 than the final day of the first tax year for which a tax credit is claimed. For
			 resource recovery facilities certified prior to September 27, 1987, the
			 statement must designate the persons to whom the certified costs have been
			 allocated and the cost allocated to each. For resource recovery facilities
			 certified on or after September 27, 1987, the statement filed with the
			 Department of Revenue must designate the taxpayer claiming the
			 credit.