(2)(a) Each employer that elects to receive a credit allowed under subsection (1) of this section must submit an application to the Office of Child Care each year the employer wishes to receive the credit. The Early Learning Council shall prescribe by rule the form of the application and the information required to be given on the application.
(b) The Office of Child Care shall issue a certificate to each employer that submits an application under this subsection.
(3) The amount of the credit allowed under subsection (1) of this section shall be 50 percent of the amount so paid or incurred by the employer during the taxable year but shall not exceed $2,500 of dependent care assistance actually provided to the employee.
(4)(a) A credit against the taxes otherwise due under ORS chapter 316 (or, if the taxpayer is a corporation, under ORS chapter 317 or 318) shall be allowed to a resident employer, or to a corporation that is an employer, based upon amounts paid or incurred by the employer during the taxable year to provide information and referral services to assist employees of the employer employed within this state to obtain dependent care.
(b) The amount of the credit allowed under this subsection shall be 50 percent of the amounts paid or incurred during the taxable year.
(5) No amount paid or incurred during the taxable year of an employer in providing dependent care assistance to any employee shall qualify for the credit allowed under subsection (1) of this section if the amount was paid or incurred to an individual described in section 129(c)(1) or (2) of the Internal Revenue Code.
(6) No amount paid or incurred by an employer to provide dependent care assistance to an employee shall qualify for the credit allowed under subsection (1) of this section if the amount paid or incurred is paid or incurred pursuant to a salary reduction plan or is not paid or incurred for services performed within this state.
(7) If the credit allowed under subsection (1) or (4) of this section is claimed, the amount of any deduction allowed or allowable under ORS chapter 316, 317 or 318 for the amount that qualifies for the credit (or upon which the credit is based) shall be reduced by the dollar amount of the credit allowed. The election to claim a credit allowed under this section shall be made at the time of filing the tax return in accordance with any rules adopted by the Department of Revenue.
(8) The amount upon which the credit allowed under subsection (1) of this section is based shall not be included in the gross income of the employee to whom the dependent care assistance is provided. However, the amount excluded from the income of an employee under this section shall not exceed the limitations provided in section 129(b) of the Internal Revenue Code. For purposes of ORS 316.162, with respect to an employee to whom dependent care assistance is provided, "wages" does not include any amount excluded under this subsection. Amounts excluded under this subsection shall not qualify as expenses for which a credit is allowed to the employee under ORS 316.078.
(9) A nonresident shall be allowed the credit allowed under subsection (1) or (4) of this section. The credit shall be computed in the same manner and be subject to the same limitations as the credit granted to a resident.
(10) If a change in the taxable year of the taxpayer occurs as described in ORS 314.085, or if the department terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed by this section shall be prorated or computed in a manner consistent with ORS 314.085.
(11) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117.
(12) Any tax credit otherwise allowable under this section which 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 such next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise any credit not used in that second succeeding tax year may be carried forward and used in the third succeeding tax year, and any credit not used in that third succeeding tax year may be carried forward and used in the fourth succeeding tax year, and any credit not used in that fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, but may not be carried forward for any tax year thereafter.
(13) For purposes of the credit allowed under subsection (1) or (4) of this section:
(a) The definitions and special rules contained in section 129(e) of the Internal Revenue Code shall apply to the extent applicable.
(b) "Employer" means an employer carrying on a business, trade, occupation or profession in this state.
(14) In the case of an on-site facility, in accordance with any rules adopted by the department, the amount upon which the credit allowed under subsection (1) of this section is based, with respect to any dependent, shall be based upon utilization and the value of the services provided. [1993 c.730 §22 (enacted in lieu of 316.134, 317.135 and 318.175); 1995 c.79 §163; 1997 c.839 §65; 2001 c.674 §14; 2013 c.624 §77]
Note: Section 10, chapter 682, Oregon Laws 1987, provides:
Sec. 10. Except as provided in ORS 315.204 (12), ORS 315.204 applies to tax years beginning on or after January 1, 1988, and before January 1, 2016. [1987 c.682 §10; 1991 c.929 §3; 2001 c.674 §1; 2005 c.485 §1; 2009 c.913 §46]
Structure 2021 Oregon Revised Statutes
Volume : 08 - Revenue and Taxation
Chapter 315 - Personal and Corporate Income or Excise Tax Credits
Section 315.037 - Tax expenditures applicable for limited time.
Section 315.047 - List of tax credits with revenue impact in excess of projection.
Section 315.051 - Report by Legislative Revenue Officer.
Section 315.053 - Restriction on types of transferees.
Section 315.056 - Conditions for transfer of tax credit.
Section 315.058 - Agency to provide tax credit approval information to Department of Revenue.
Section 315.061 - Suspension, revocation or forfeiture.
Section 315.068 - Claim of right income repayment adjustments.
Section 315.104 - Reforestation; rules.
Section 315.108 - Annual reforestation credit cost limitation.
Section 315.113 - Voluntary removal of riparian land from farm production; rules.
Section 315.119 - On-farm processing facilities.
Section 315.138 - Screening devices, by-pass devices or fishways; rules.
Section 315.141 - Biomass production or collection; fee; rules; documentation.
Section 315.144 - Transfer of biomass credit; rules.
Section 315.154 - Definitions for crop donation credit.
Section 315.156 - Crop donation; forms.
Section 315.163 - Definitions for ORS 315.163 to 315.169.
Section 315.164 - Agriculture workforce housing projects; rules.
Section 315.167 - Agriculture workforce housing credit application; procedure; rules.
Section 315.174 - Livestock killed by wolf.
Section 315.176 - Bovine manure production or collection; rules.
Section 315.184 - Annual limitation on total amount of tax credits; proportionate reduction.
Section 315.204 - Dependent care assistance; rules.
Section 315.208 - Dependent care facilities.
Section 315.213 - Contributions to Office of Child Care.
Section 315.237 - Employee and dependent scholarship program payments.
Section 315.262 - Working family child care; rules.
Section 315.264 - Working family household and dependent care expenses; rules.
Section 315.271 - Individual development accounts.
Section 315.272 - Certain individual development account withdrawals.
Section 315.304 - Pollution control facilities.
Section 315.329 - Funding in lieu of tax credit certification.
Section 315.331 - Energy conservation projects.
Section 315.336 - Transportation projects.
Section 315.341 - Renewable energy resource equipment manufacturing facilities.
Section 315.354 - Energy conservation facilities.
Section 315.357 - Time limit applicable to energy conservation tax credit.
Section 315.465 - Biofuels and fuel blends.
Section 315.469 - Biodiesel used in home heating.
Section 315.507 - Electronic commerce in designated enterprise zone.
Section 315.508 - Recordkeeping requirements; disallowance of credit.
Section 315.514 - Film production development contributions; auction of tax credits; rules.
Section 315.516 - Funding in lieu of tax credit certification.
Section 315.517 - Water transit vessels.
Section 315.523 - Employee training.
Section 315.529 - Definitions.
Section 315.533 - Qualified equity investments.
Section 315.536 - Transferability of credit.
Section 315.591 - Definitions.
Section 315.593 - Short line railroad rehabilitation projects; rules.
Section 315.595 - Preliminary certification; application; allocation priority; rules.
Section 315.597 - Final certification; rules.
Section 315.599 - Fees; appropriation for expenses.
Section 315.610 - Long term care insurance.
Section 315.616 - Additional providers who may qualify for credit.
Section 315.619 - Credit for medical staff at type C hospital.
Section 315.622 - Rural emergency medical services providers.
Section 315.624 - Medical care to residents of Oregon Veterans’ Home.
Section 315.628 - Health care services under TRICARE contract.
Section 315.631 - Certification of health care providers; reports.
Section 315.640 - University venture development fund contributions.
Section 315.643 - Opportunity Grant contributions; auction of tax credits; certification; rules.
Section 315.646 - Funding in lieu of tax credit certification.
Section 315.650 - Higher education savings account or ABLE account contributions.
Section 315.653 - Forfeiture of prior tax relief; disallowed withdrawal or distribution.
Section 315.675 - Trust for Cultural Development Account contributions.