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Oregon Revised Statutes Revenue and Taxation § 315.264

Current as of January 01, 2023 | Updated by Findlaw Staff

<Section applicable to to tax years beginning on or after January 1, 2016, and before January 1, 2022.>

(1)(a) A credit against the tax otherwise due under ORS chapter 316 shall be allowed a taxpayer in an amount equal to a percentage of employment-related expenses of a type allowable as a credit pursuant to section 21 of the Internal Revenue Code,  1 notwithstanding the limitation imposed by section 21(c) of the Internal Revenue Code, and limited as provided in paragraph (b) of this subsection.

(b) The employment-related expenses for which a credit is claimed under this section may not exceed $12,000 for a taxpayer for which there is one qualifying individual, or $24,000 for a taxpayer for which there are two or more qualifying individuals.

(2) The applicable percentage described in subsection (1) of this section shall be determined in accordance with the following table:

Greater of Federal

 

or Oregon Adjusted

 

Gross Income, as

Applicable percentage based on age of youngest child

Percentage of Federal

at close of tax year

Poverty Level

 

 

 

 

 

 

At least 6 years

 

but less than

At least

13, or at least

3 years

13 but less

18 years or

Greater

Less than

Under 3

but less

than 18 if

older if

than

or equal to

years

than 6

disabled

disabled

  0%

 10%

10%

 8%

 5%

 5%

 10%

 20%

20%

18%

15%

 5%

 20%

 30%

30%

28%

25%

10%

 30%

 40%

40%

38%

35%

20%

 40%

 50%

50%

48%

45%

30%

 50%

 60%

55%

53%

50%

35%

 60%

 70%

60%

58%

55%

40%

 70%

 80%

65%

63%

60%

45%

 80%

 90%

70%

68%

65%

50%

 90%

110%

75%

73%

70%

55%

110%

120%

71%

69%

66%

50%

120%

130%

66%

64%

61%

45%

130%

140%

61%

59%

56%

39%

140%

150%

55%

53%

50%

33%

150%

160%

50%

48%

45%

28%

160%

200%

47%

45%

42%

25%

200%

210%

45%

43%

40%

22%

210%

220%

40%

38%

35%

20%

220%

230%

35%

33%

30%

15%

230%

240%

30%

28%

25%

10%

240%

250%

20%

18%

15%

 5%

250%

260%

10%

 8%

 5%

 5%

260%

280%

 6%

 6%

 4%

 4%

280%

300%

 4%

 4%

 4%

 4%

300%

-

 0%

 0%

 0%

 0%

 

(3) The applicable percentage for a household in excess of eight members shall be calculated as if for a household size of eight members.

(4) The credit under this section is not allowed to a taxpayer with federal adjusted gross income or Oregon adjusted gross income, whichever is greater, in excess of 300 percent of the federal poverty level.

(5) In order to ensure compliance with the eligibility requirements of the credit allowed under this section, the Department of Revenue shall be afforded access to utilization data maintained by the Department of Human Services in its administration of the Employment Related Day Care program.

(6) The Director of the Department of Revenue may assess a penalty in an amount not to exceed 25 percent of the amount of credit claimed by the taxpayer against any taxpayer who knowingly claims or attempts to claim any amount of credit under this section for which the taxpayer is ineligible, or against any individual who knowingly assists another individual in claiming any amount of credit for which the individual is ineligible.

(7) The Department of Revenue may adopt rules for carrying out the provisions of this section and prescribe the form used to claim a credit and the information required on the form.

(8) 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.

(9) 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.

(10) 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.

(11) If the amount allowable as a credit under this section, when added to the sum of the amounts allowable as payment of tax under ORS 316.187 or 316.583, other tax prepayment amounts and other refundable credit amounts, exceeds the taxes imposed by ORS chapters 314 and 316 for the tax year after application of any nonrefundable credits allowable for purposes of ORS chapter 316 for the tax year, the amount of the excess shall be refunded to the taxpayer as provided in ORS 316.502.

1  Internal Revenue Code sections are in Title 26 of U.S.C.A.
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Cite this article: FindLaw.com - Oregon Revised Statutes Revenue and Taxation § 315.264 - last updated January 01, 2023 | https://codes.findlaw.com/or/title-29-revenue-and-taxation/or-rev-st-sect-315-264/

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