Read the full stored bill text
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
A-Engrossed
Senate Bill 927
Ordered by the Senate June 2
Including Senate Amendments dated June 2
Sponsored by Senators SMITH DB, MEEK
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure. The statement includes a measure digest written in compliance with applicable readability standards.
Digest: Creates a tax credit for the amount paid for transmission services for solar or wind
power or power storage. (Flesch Readability Score: 62.8).
Creates an income or corporate excise tax credit for the amount paid by an owner of an eligible
generation facility for transmission services. Directs that the amount paid, for purposes of the tax
credit, shall be calculated as the sum of amounts paid by the owner to the Bonneville Power Ad-
ministration or an electric utility for up to 600 megawatts of the eligible generation facility’s
nameplate capacity and to other parties.
Requires a taxpayer to first receive a final written certification from the State Depart-
ment of Energy to claim the tax credit. Allows a taxpayer to apply for a preliminary certi-
fication of an eligible generation facility prior to, during or after construction of the facility.
Applies to all tax years beginning on or after January 1, 2026[ , and to eligible generation facili-
ties first placed in service on or after January 1, 2026, and before January 1, 2032 ].
[Takes effect on the 91st day following adjournment sine die. ]
A BILL FOR AN ACT
Relating to renewable energy; creating new provisions; and amending ORS 314.772 and 318.031.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
Sections 2 to 7 of this 2025 Act are added to and made a part of ORS chapter
315.
SECTION 2. As used in sections 2 to 7 of this 2025 Act:
(1) “Electric utility” has the meaning given that term in ORS 757.600.
(2) “Eligible generation facility” means a facility that:
(a)(A) Generates only nonemitting electricity derived from solar or wind energy; or
(B) Provides energy storage; and
(b) Is:
(A) Owned in whole by a person or persons that are not an electric utility, an electric
utility holding company, an affiliated interest or any combination thereof;
(B) Sited in Oregon; and
(C) First placed in service on or after January 1, 2026.
(3) “Nonemitting electricity” has the meaning given that term in ORS 469A.400.
(4) “Placed in service” means the date on which an eligible generation facility is ready
and available to generate nonemitting electricity or provide energy storage.
SECTION 3.
(1) A credit against 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 that
owns an eligible generation facility during the tax year.
(2) The credit under this section shall, except as provided in subsection (3) of this section,
NOTE: Matter in boldfaced type in an amended section is new; matter [ italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 3142
A-Eng. SB 927
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
equal the amount paid during the tax year by the owner of an eligible generation facility for
transmission services, calculated as the sum of the amounts paid by the owner of the eligible
generation facility to:
(a) The Bonneville Power Administration or to an electric utility for transmission ser-
vices for up to 600 megawatts of the eligible generation facility’s nameplate capacity; and
(b) Parties not described in paragraph (a) of this subsection.
(3) The credit allowed under this section may not exceed:
(a) For the tax year in which the eligible generation facility is first placed in service, and
for each of the four subsequent consecutive tax years, the tax liability of the taxpayer for
the tax year; and
(b) For each of the 15 consecutive tax years following the final year described in para-
graph (a) of this subsection, 75 percent of the tax liability of the taxpayer for the tax year.
(4) To claim a credit allowed under this section, a taxpayer is required to first receive a
final written certification from the State Department of Energy under section 5 of this 2025
Act.
(5) 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 that 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 likewise, any credit not used in that third succeeding tax year
may be carried forward and used in the fourth succeeding tax year, and likewise, 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.
(6) The Department of Revenue may by rule require that the State Department of Energy
provide information about a preliminary certification issued under section 4 of this 2025 Act,
including the name and taxpayer identification number of the taxpayer or other person re-
ceiving certification, the date the certification was issued in its final form, the approved
amount of credit and the first tax year for which the credit may be claimed.
(7) The Department of Revenue shall prescribe by rule the manner and the timing of
submission of the information described in subsection (6) of this section to the department.
(8) The credit shall be claimed on a form prescribed by the Department of Revenue that
contains the information required by the department.
(9) In the case of a credit allowed under this section:
(a) A nonresident shall be allowed the credit under this section in the proportion provided
in ORS 316.117.
(b) If a change in the status of a taxpayer from resident to nonresident or from nonres-
ident to resident occurs, the credit allowed by this section shall be determined in a manner
consistent with ORS 316.117.
(c) If a change in the taxable year of a taxpayer occurs as described in ORS 314.085, or
if the Department of Revenue terminates a taxpayer’s taxable year under ORS 314.440, the
credit allowed under this section shall be prorated or computed in a manner consistent with
ORS 314.085.
(10) The Director of the State Department of Energy may order the suspension or revo-
cation of a certification issued under section 4 or 5 of this 2025 Act, as provided in ORS
[2]
A-Eng. SB 927
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
315.061.
SECTION 4.
(1) A taxpayer may apply to the State Department of Energy for a prelimi-
nary certification of an eligible generation facility and may apply prior to, during or after
construction of the facility. A taxpayer must apply in the manner prescribed by rules adopted
under this section. The rules must include:
(a) A description of the information required by the department to determine that the
taxpayer qualifies for the tax credit allowed under section 3 of this 2025 Act;
(b) Criteria for determining the amount of the tax credit allowed under section 3 of this
2025 Act, including standards for what constitutes completion of an eligible generation facil-
ity;
(c) The process by which an applicant will be notified of an incomplete application and
the time allowed for the applicant to provide the missing information; and
(d) The month and date by which the department must notify an applicant of the pre-
liminary certification decision and the potential amount of the tax credit for which the ap-
plicant has received preliminary certification.
(2) If the department must allocate tax credits to a group of taxpayers in an amount that
is less than the amount the taxpayers would otherwise receive under section 3 of this 2025
Act, the department shall divide the available tax credits among the group proportionally,
based on the amount each taxpayer would have otherwise received under section 3 of this
2025 Act.
SECTION 5. (1) A taxpayer may apply to the State Department of Energy for final cer-
tification of an eligible generation facility if:
(a) The taxpayer received preliminary certification for the facility under section 4 of this
2025 Act; and
(b) The facility is complete.
(2) After approving the application, the department shall certify the facility, including the
amount of the tax credit for which the taxpayer has received final certification. The depart-
ment may not certify an amount that is more than the amount approved in the preliminary
certification for the facility.
(3) The department may establish by rule a process for accepting applications and issuing
final certifications under this section.
SECTION 6.
(1) The State Department of Energy may charge and collect a fee from tax-
payers for preliminary or final certification of an eligible generation facility under sections
4 and 5 of this 2025 Act. The fee may not exceed the cost to the department of issuing cer-
tifications.
(2) All fees collected under this section shall be deposited in the State Treasury and
credited to the department. Moneys deposited under this section are continuously appropri-
ated to the department for the purpose of administering and enforcing the provisions of
sections 2 to 8 of this 2025 Act.
SECTION 7.
The total amount of potential tax credits allowed under section 3 of this 2025
Act at the time of preliminary certification under section 4 of this 2025 Act may not exceed
$ million for any biennium.
SECTION 8. ORS 314.772 is amended to read:
314.772. (1) Except as provided in ORS 314.766 (5)(b), the tax credits allowed or allowable to a
C corporation for purposes of ORS chapter 317 or 318 shall not be allowed to an S corporation. The
[3]
A-Eng. SB 927
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
business tax credits allowed or allowable for purposes of ORS chapter 316 shall be allowed or are
allowable to the shareholders of the S corporation.
(2) In determining the tax imposed under ORS chapter 316, as provided under ORS 314.763, on
income of the shareholder of an S corporation, there shall be taken into account the shareholder’s
pro rata share of business tax credit (or item thereof) that would be allowed to the corporation (but
for subsection (1) of this section) or recapture or recovery thereof. The credit (or item thereof), re-
capture or recovery shall be passed through to shareholders in pro rata shares as determined in the
manner prescribed under section 1377(a) of the Internal Revenue Code.
(3) The character of any item included in a shareholder’s pro rata share under subsection (2)
of this section shall be determined as if such item were realized directly from the source from which
realized by the corporation, or incurred in the same manner as incurred by the corporation.
(4) If the shareholder is a nonresident and there is a requirement applicable for the business tax
credit that in the case of a nonresident the credit be allowed in the proportion provided in ORS
316.117, then that provision shall apply to the nonresident shareholder.
(5) As used in this section, “business tax credit” means the following credits: ORS 315.104
(forestation and reforestation), ORS 315.124 (small forest option), ORS 315.133 (agricultural overtime
pay), ORS 315.138 (fish screening, by-pass devices, fishways), ORS 315.141 (biomass production for
biofuel), ORS 315.156 (crop gleaning), ORS 315.164 and 315.169 (agriculture workforce housing), ORS
315.176 (bovine manure), ORS 315.204 (dependent care assistance), ORS 315.208 (dependent care fa-
cilities), ORS 315.213 (contributions for child care), ORS 315.237 (employee and dependent scholar-
ships), ORS 315.271 (individual development accounts), ORS 315.283 (affordable housing sales), ORS
315.304 (pollution control facility), ORS 315.326 (renewable energy development contributions), ORS
315.331 (energy conservation projects), ORS 315.336 (transportation projects), ORS 315.341
(renewable energy resource equipment manufacturing facilities), ORS 315.354 and 469B.151 (energy
conservation facilities), ORS 315.506 (tribal taxes on reservation enterprise zones and reservation
partnership zones), ORS 315.507 (electronic commerce), ORS 315.514 (film production development
contributions), ORS 315.518 (semiconductors), ORS 315.523 (employee training programs), ORS
315.533 (low income community jobs initiative), ORS 315.593 (short line railroads), ORS 315.640
(university venture development funds), ORS 315.643 (Opportunity Grant Fund contributions), ORS
315.675 (Trust for Cultural Development Account contributions), ORS 317.097 (loans for affordable
housing), ORS 317.124 (long term enterprise zone facilities), ORS 317.147 (loans for agriculture
workforce housing), ORS 317.152 (qualified research expenses) and ORS 317.154 (alternative qualified
research expenses) and section 9, chapter 774, Oregon Laws 2013 (alternative fuel vehicle contribu-
tions), and section 3 of this 2025 Act (eligible generation facilities) .
SECTION 9.
ORS 318.031 is amended to read:
318.031. It being the intention of the Legislative Assembly that this chapter and ORS chapter
317 shall be administered as uniformly as possible (allowance being made for the difference in im-
position of the taxes), ORS 305.140 and 305.150, ORS chapter 314 and the following sections are in-
corporated into and made a part of this chapter: ORS 315.104, 315.124, 315.133, 315.141, 315.156,
315.176, 315.204, 315.208, 315.213, 315.283, 315.304, 315.326, 315.331, 315.336, 315.506, 315.507, 315.523,
315.533, 315.593 and 315.643 and section 3 of this 2025 Act (all only to the extent applicable to a
corporation) and ORS chapter 317.
SECTION 10. Sections 2 to 7 of this 2025 Act apply to all tax years beginning on or after
January 1, 2026.
[4]