(1)
Definitions.
(a) "Tax Credit" means the
credit authorized by ORS
315.514 and ORS
315.643.
(b) "Qualified Bid" means a bid that is
eligible for consideration in the tax credit auction because it meets all
applicable statutory requirements and:
(A) It
is submitted in a manner and time prescribed by the department's instructions
and this rule;
(B) It is submitted
for no less than the reserve bid announced by the department for the particular
auction, the reserve bid amount shall be the minimum reserve amount established
by statute;
(C) An associated
payment is received by the department in the time and manner prescribed in
section (4).
(c)
"Non-qualified Bid" means a bid that is not eligible to participate in the
auction because it does not meet the requirements of section (1)(b) of this
rule.
(d) "Invalid or Insufficient
Payments" are payments that are:
(A) Not
received by the department by 5:00 p.m. (PT) on the date for payment set by the
department;
(B) In a form other
than one listed in section (4) of this rule;
(C) Fraudulent or otherwise not able to be
immediately banked by the department;
(D) Less than the full amount of the
corresponding bid received by the department; or
(E) Not submitted in a manner consistent with
department's instructions (including attaching the required completed
forms).
(e) "PT" means
Pacific Time (Daylight or Standard as dictated by the time of year).
(2) Auction Bidding Period. The
tax credits auction bidding period is no less than three business days, not to
exceed 7 business days; with specific dates as announced by the
department.
(3) Tax Credit
Certificates. The Oregon Office of Film and Television and the Higher Education
Coordinating Commission will issue tax credit certificates for the prevailing
qualified bids. A taxpayer to whom a certificate is issued may claim a credit
in the amount shown on the certificate against Oregon personal income or
corporate income or excise tax otherwise due for that tax year. The tax credit
may not exceed the liability of the taxpayer in any one year. Any credit amount
unused by the taxpayer may be carried forward to offset tax liabilities in the
next three succeeding tax years. No transfer of the certificate (or the credit
that it represents) is allowed.
(4)
Determination of Qualifying Bids and Payments.
(a) Bids must be submitted on-line in a
manner consistent with the department's instructions and within the bidding
period as outlined in section (2). Bids received before or after the bidding
period will be considered a non-qualified bid. The department will determine
the order of bids received by the electronic date and time stamp.
(b) A bidder may submit multiple separate
bids.
(c) After a bid is submitted,
a bidder must send, and the department must receive, a payment for the total
amount bid. Invalid or insufficient payments will be returned to the bidder and
the associated bid considered non-qualified. All bid payments must be received
by the department no later than 5:00 p.m. (PT) on the payment date. The
department will date stamp payments when they are received. The department will
not consider postmarks when determining if the payment has been timely
received. It is the bidder's responsibility to ensure that the department
receives the payment by the deadline. The method of payment is limited to the
following:
(A) Financial institution-issued
certified check;
(B) Financial
institution-issued cashier's check; or
(C) Money Order.
(d) All payments will be held until the
outcome of the auction is determined. As soon as practicable, the department
will return payments to bidders that do not prevail at the auction. No interest
will be paid on payments.
(e) A
bid, once submitted, is irrevocable and may not be changed. A payment will only
be returned if a bid does not result in the issuance of a tax credit
certificate.
(5)
Determination of the Prevailing Bid(s). After the payment deadline has passed,
the department will determine the prevailing bids by placing the qualifying
bids in order from highest bid amount to lowest bid amount. The department will
allot tax credit certificates to the highest qualifying bids. In the event that
two or more qualifying bids have identical bid amounts for the last tax credit
increment (or increments) available, the prevailing qualifying bid will be the
one the department received first as determined under section (4).
Example: Four bidders (A, B, C and D) make qualifying bids on
$10,000 worth of tax credits (sold in twenty increments of $500). Bidder A bids
$475 for each of eight increments on October 24. Bidder B bids $480 for each of
eight increments on October 26. Bidder C bids $485 for each of six increments
and $480 for each of four increments on October 28. Bidder D bids $495 for each
of ten increments on October 30.
The results of the auction are as follows:
10 of the 20 increments go to D.
6 of the 20 increments go to C (for the $485 bid).
4 of the 20 increments go to B (for the $480 bid).
NOTE 1: B only received four of the eight increments he bid on
because no more increments were available. The department will return the
payment to B and B will need to send the department a replacement payment for
the amount of the four prevailing bids B received.
NOTE 2: The bid C placed at $480 did not prevail because it
tied with the bid B submitted. B's bid will prevail over C's bid in the event
of a tie because it was received before C's bid. C's payment for the $480 bid
will be returned for the four increments that did not prevail.
NOTE 3: A's bid was not high enough to prevail. A's bid payment
will be returned.
Notes
Or. Admin. Code §
150-315-0180
REV 3-2006,
f. & cert .ef. 7-31-06; REV 3-2012(Temp), f. 5-17-12, cert. ef. 6-1-12 thru
7-31-12; REV 4-2012, f. 7-20-12, cert. ef. 8-1-12; REV 6-2013, f. & cert.
ef. 12-26-13; Renumbered from 150-315.274(3),
REV
44-2016, f. 8-12-16, cert. ef.
9/1/2016;
REV
14-2020, amend filed 07/24/2020, effective
7/29/2020
Statutory/Other Authority: ORS
305.100
Statutes/Other Implemented: ORS
315.514 &
315.643
