(1) A nonresident shall be allowed a credit against the taxes otherwise due under this chapter for income taxes imposed by and paid to the state of residence (not including any preference, alternative or minimum tax) on income taxable under this chapter, subject to the following conditions:

(a) The credit shall be allowed only if the state of residence either:

(A) Does not tax the income of residents of this state derived from sources within that state; or

(B) Allows residents of this state a credit against income taxes imposed by that state on income for tax paid or payable under this chapter.

(b) The credit may not be allowed for taxes paid to a state that allows its residents a credit against the taxes imposed by that state for income tax paid or payable under this chapter irrespective of whether its residents are allowed a credit against the taxes imposed by this chapter for income taxes paid to that state.

(c) Credit shall be allowed only for the proportion of the taxes paid to the state of residence (not including preference, alternative or minimum taxes) as the adjusted gross income taxable under this chapter and also subject to taxes in the state of residence bears to the entire adjusted gross income upon which the taxes paid to the state of residence are imposed.

(d) The credit may not exceed the proportion of the tax payable under this chapter that the modified adjusted gross income subject to tax in the state of residence and also taxable under this chapter bears to the entire modified adjusted gross income of the taxpayer.

(2) For purposes of this section, the amount of income taxes paid to another state includes the taxpayer’s pro rata share of any taxes on, or according to, or measured by, income or profits paid or accrued that were paid by an S corporation.

(3) Notwithstanding subsection (1) of this section, credit may not be allowed under this section for taxes paid by a nonresident on qualifying compensation.

(4) As used in this section:

(a) ‘Modified adjusted gross income’ means federal adjusted gross income as modified by this chapter and the other laws of this state applicable to personal income taxation.

(b) ‘Qualifying compensation’ has the meaning given that term in section 1, chapter 559, Oregon Laws 2005.

(c) ‘State’ means a state, district, territory or possession of the United States. [1991 c.838 § 5; 2001 c.9 § 2; 2005 c.559 § 6]

[1987 c.682 § 3; 1991 c.877 § 12; 1991 c.929 § 1; repealed by 1993 c.730 § 23 (315.208 enacted in lieu of 316.132, 317.114 and 318.160)]

[1991 c.928 § 2; repealed by 1993 c.730 § 25 (315.234 enacted in lieu of 316.133 and 317.134)]

[1987 c.682 § 2; 1989 c.625 § 10; 1991 c.457 § 6; 1991 c.877 § 13; repealed by 1993 c.730 § 21 (315.204 enacted in lieu of 316.134, 317.135 and 318.175)]

[1979 c.554 § 2; renumbered 316.752]

[1979 c.554 § 3; renumbered 316.758]

[1979 c.554 § 4; renumbered 316.765]

[1979 c.554 § 5; renumbered 316.771]

[1989 c.924 § 2; 1991 c.858 § 10; 1991 c.877 § 14; repealed by 1993 c.730 § 11 (315.138 enacted in lieu of 316.139 and 317.145)]

[1979 c.512 § 12; 1981 c.894 § 10; 1991 c.877 § 15; repealed by 1993 c.730 § 33 (315.354 enacted in lieu of 316.140 and 317.104)]

[1979 c.512 § 15; 1981 c.894 § 11; 1989 c.765 § 2; 1991 c.457 § 7; repealed by 1993 c.730 § 35 (315.356 enacted in lieu of 316.141, 316.142 and 317.103)]

[1979 c.512 § 16, 17; 1981 c.894 § 12; 1989 c.765 § 3; repealed by 1993 c.730 § 35 (315.356 enacted in lieu of 316.141, 316.142 and 317.103)]

[1989 c.893 § 2; 1991 c.877 § 16; 1995 c.746 § 36; 1999 c.459 § 1; 2001 c.509 § 12; renumbered 315.613 in 2005]

[1989 c.893 § 3; 1991 c.877 § 17; 1995 c.746 § 38; 1997 c.787 § 3; 1999 c.459 § 6; 1999 c.582 § 10; 2003 c.46 § 39; renumbered 315.616 in 2005]

[1979 c.561 § 4; renumbered 316.849]

[1989 c.893 § 6a; 1991 c.877 § 18; 1999 c.291 § 31; 2003 c.46 § 40; renumbered 315.619 in 2005]

ADDITIONAL CREDITS

(Costs in Lieu of Nursing Home Care)