(1) A credit against the taxes that are otherwise due under ORS Chapter 316 or, if the taxpayer is a corporation, under ORS Chapter 317 or 318, is allowed to a taxpayer for certified Opportunity Grant contributions made by the taxpayer to the Opportunity Grant Fund established under ORS § 348.266. A credit is allowed for the tax year in which a contribution is made, or for the tax year immediately preceding the tax year in which a contribution is made and for auctions conducted no later than April 15 following December 31 of any tax year for which the credit is allowed, if no return has yet been filed for the preceding tax year.

(2)(a) The Department of Revenue shall, in cooperation with the Higher Education Coordinating Commission, conduct an auction of tax credits under this section. The auction may be conducted no later than April 15 following December 31 of any tax year for which the credit is allowed. The department may conduct the auction in the manner that it determines is best suited to maximize the return to the state on the sale of tax credit certifications and shall announce a reserve bid prior to conducting the auction. The reserve amount shall be at least 90 percent of the total amount of the tax credit. Moneys necessary to reimburse the department for the actual costs incurred by the department in administering an auction, not to exceed 0.25 percent of auction proceeds, are continuously appropriated to the department. Moneys necessary to reimburse the commission for the actual costs incurred by the commission in administering an auction, not to exceed 0.25 percent of auction proceeds, are continuously appropriated to the commission. The department shall deposit net receipts from the auction required under this section in the Opportunity Grant Fund.

(b) The commission may adopt rules necessary for the administration of the auction.

(3) Contributions made under this section shall be deposited in the Opportunity Grant Fund.

(4)(a) Upon receipt of a contribution, the commission shall, except as provided in ORS § 315.646, issue to the taxpayer written certification of the amount certified for tax credit under this section to the extent the amount certified for tax credit, when added to all amounts previously certified for tax credit under this section, does not exceed $14 million for the fiscal year in which certification is made.

(b) The commission and the department are not liable, and a refund of a contributed amount need not be made, if a taxpayer that has received tax credit certification is unable to use all or a portion of the tax credit to offset the tax liability of the taxpayer.

(5) To the extent the commission does not certify contributed amounts as eligible for a tax credit under this section, the taxpayer may request a refund of the amount the taxpayer contributed, and the commission shall refund that amount.

(6)(a) Except as provided in paragraph (b) of this subsection, a tax credit claimed under this section may not exceed the tax liability of the taxpayer and may not be carried over to another tax year.

(b) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a particular tax year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any credit remaining unused in the 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 but may not be carried forward for any tax year thereafter.

(c) A taxpayer is not eligible for a tax credit under this section if the first tax year for which the credit would otherwise be allowed begins on or after January 1, 2024.

(7) If a tax credit is claimed under this section by a nonresident or part-year resident taxpayer, the amount shall be allowed without proration under ORS § 316.117.

(8) If the amount of contribution for which a tax credit certification is made is allowed as a deduction for federal tax purposes, the amount of the contribution shall be added to federal taxable income for Oregon tax purposes. [2018 c.108 § 2; 2019 c.370 § 2; 2021 c.528 § 14]

Section 6, chapter 108, Oregon Laws 2018, provides:

(1) Except as provided in subsection (2) of this section, ORS § 315.643, 315.646 and 348.267 apply to tax years beginning on or after January 1, 2018, and before January 1, 2023.

(2) A taxpayer may claim a credit under ORS § 315.643 for a tax year beginning in the 2023 calendar year, if the taxpayer has received certification issued for the credit at an auction conducted on or after January 1, 2023, and before March 1, 2023. [2018 c.108 § 6; 2023 c.569 § 1]