(1)
(a)
When a facility is sold, the seller may claim a credit for the year of sale
prorated to the portion of the tax year that the seller owned and operated the
facility. The buyer also may claim a credit for the year of purchase prorated
to the period of ownership and operation of the facility if the buyer applies
for and receives a new certificate as required by ORS
315.354(5)(a)
and
469.215. If the seller's tax
year is not the same as the purchaser's, each taxpayer's credit is based upon
the portion of each taxpayer's own tax year in which that taxpayer owned the
facility.
Example: Taxpayer A, a calendar year taxpayer,
sold a certified facility to Taxpayer B on July 1. Taxpayer B is a fiscal year
taxpayer with a tax year ending March 31. Taxpayer A's credit would be limited
to 50 percent of a full year's credit (facility owned January 1 through June
30). Assuming Taxpayer B applied for and received a new certificate, Taxpayer B
would be entitled to 75 percent of a full year's credit (facility owned July 1
through March 31).
(b) ORS
315.354(5)(a)
provides that the tax credit available to the new owner is limited to the
amount of credit not claimed by the former owner or, for a new lessor, the
amount of credit not claimed by the lessor under all previous leases.
Therefore, it is necessary for the seller to disclose to the buyer the amount
of allowable credit not yet claimed based on the original certificate holder's
investment in the facility.
(2) When the credit is available to co-owners
of a facility and one owner purchases the interest of another, the credit must
be prorated between purchaser and seller. The method of prorating partnership
income when a partnership interest is sold that is provided in Internal Revenue
Code Section 706(d) must be used to prorate the credit.
(3) When a facility is sold, any credit
carryforward from tax periods prior to the sale cannot be sold or otherwise
transferred to the buyer. Such credit carry forwards may only be used by the
seller.
Notes
Or. Admin. Code §
150-315-0170
9-20-89,
12-31-89, 12-31-92, Renumbered from 150-317.104(5); 12-31-93; REV 8-2001, f.
& cert. ef. 12-31-01; REV 10-2007, f. 12-28-07, cert. ef. 1-1-08;
Renumbered from 150-315.274(3),
REV
44-2016, f. 8-12-16, cert. ef.
9/1/2016
Stat. Auth.: ORS
305.100
Stats. Implemented: ORS
315.354
