(1) A resident individual shall be allowed a credit against the tax otherwise due under this chapter in an amount equal to a percentage of employment-related expenses allowable pursuant to section 21 of the Internal Revenue Code, notwithstanding the limitation imposed by section 26 of the Internal Revenue Code. The percentage shall be determined on the basis of federal taxable income, as defined in section 63 of the Internal Revenue Code and as reflected on the federal return, whether or not a joint return, of the taxpayer for the taxable year, in accordance with the following table:

Terms Used In Oregon Statutes 316.078

  • Department: means the Department of Revenue. See Oregon Statutes 316.022
  • Individual: means a natural person, including aliens and minors. See Oregon Statutes 316.022
  • nonresident: means an individual who is not a resident of this state. See Oregon Statutes 316.022
  • Taxable income: means the taxable income as defined in subsection (a) or (b), section 63 of the Internal Revenue Code, with such additions, subtractions and adjustments as are prescribed by this chapter. See Oregon Statutes 316.022
  • Taxpayer: means any natural person, estate, trust, or beneficiary whose income is in whole or in part subject to the taxes imposed by this chapter, or any employer required by this chapter to withhold personal income taxes from the compensation of employees for remittance to the state. See Oregon Statutes 316.022

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(2) A nonresident individual shall be allowed the credit computed in the same manner and subject to the same limitations as the credit allowed a resident by subsection (1) of this section. However, the credit shall be prorated using the proportion provided in ORS § 316.117.

(3) If a change in the taxable year of a taxpayer occurs as described in ORS § 314.085, or if the Department of Revenue 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.

(4) 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.

(5) 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. [1975 c.672 § 15a; 1977 c.872 § 3; 1979 c.691 § 4; 1983 c.684 § 9; 1985 c.802 § 4; 1987 c.293 § 10; 1989 c.625 § 7; 1989 c.1047 § 11; 1991 c.457 § 2; 1993 c.726 § 28; 1997 c.839 § 6; 1999 c.90 § 8; 2001 c.660 § 36]

 

Section 44, chapter 913, Oregon Laws 2009, provides:

Except as provided in ORS § 316.078 (5), a credit may not be claimed under ORS § 316.078 for tax years beginning on or after January 1, 2016. [2009 c.913 § 44]