Or. Admin. Code § 150-315-0005 - Tax credit uniformity transfer provisions

(1) Tax credits may be transferred only by the entity or individual that received the original certification.

Example 1: Slabs is an S corporation with two owners, John and Matt who each own 50%. Slabs is the recipient of the Bovine Manure credit in the amount of $1,000. As shareholders of the S-corp, John and Matt each receive $500 as their flow-through share of the credit. John and Matt may not transfer any amount of the credit. Only Slabs, as the holder of the tax credit certification, can transfer the credit.

(2) There are two general groups of transferable credits, those that must be claimed in one year and those that must be claimed over multiple years. The following applies to transfers of these credits:

(a) For credits that are claimed for only one tax year (excluding carry forward provisions), transfer of the entire credit is not required. A portion may be transferred to another taxpayer and the remaining amount of the one year credit may be claimed on the transferor's return.

Example 2: Maggie received a bovine manure production or collection credit for tax year 2020 in the amount of $60,000. Maggie transferred $35,000 to Alicia, $15,000 to Mark, and kept $10,000 to claim on her tax return. Alicia and Mark cannot transfer the credit again and may claim the credit on their respective tax returns only for tax year 2020. If Maggie, Alicia, or Mark are unable to use the entire amount of the credit on their 2020 tax returns, they may carry forward the unused portion for up to four years but cannot transfer the carry forward amount.

(b) For credits that are claimed over multiple tax years (excluding carry forward provisions), the full amount of the credit for each tax year may be transferred to one or more transferees and the transferor may not claim any portion of that tax year's credit.

Example 3: Liam received a certificate for an agriculture workforce housing credit in tax year 2020 in the amount of $100,000. The tax credit must be claimed in increments of 20% of the credit ($20,000) in each of five of the next ten years. Liam may transfer to Jim one-quarter of the 20% of the total credit ($5,000) for an eligible tax year and may transfer the rest of the credit for that year ($15,000) to Becky. Liam may not claim any of the credit for that tax year, because he chose to transfer the credit for that year.

Notes

Or. Admin. Code § 150-315-0005

REV 31-2020, adopt filed 12/23/2020, effective 1/1/2021

Statutory/Other Authority: ORS 305.100 & 315.056

Statutes/Other Implemented: ORS 315.056