Or. Admin. R. 150-317-0260

Current through Register Vol. 63, No. 6, June 1, 2024

Section 150-317-0260 - Lender's Credit for Agriculture Workforce Housing

(1) A credit is available to commercial lending institutions that make low interest loans to finance the construction or rehabilitation of agriculture workforce housing.

(2) Qualifications for the Tax Credit:

(a) The agriculture workforce housing must be located in Oregon.

(b) The interest rate charged by the lending institution cannot exceed 13.5 percent per annum. If the interest rate exceeds 13.5 percent for a short period of time, but the annual rate for the year is 13.5 percent or less, the credit would not be lost for that year. Each year will stand alone in determining whether the credit is available for the year.

(3) Computation of the Tax Credit:

(a) For loans made in tax years beginning on or after January 1, 2002, the credit is equal to 50 percent of the interest income earned. For loans made in tax years beginning on or after January 1, 1996, and before January 1, 2002, the credit is equal to 30 percent of the interest income earned. For loans made in tax years beginning before January 1, 1996, the credit is equal to 50 percent of the interest actually received by the commercial lending institution on loans certified by the borrower to finance the construction or rehabilitation of agriculture workforce housing. Construction includes acquisition of new or used prefabricated or manufactured housing. Interest that has been accrued but not actually received may not be included in computing the credit.

(b) Interest on loans to finance the acquisition of land and existing improvements on that land does not qualify for the credit. If a loan is made to cover the acquisition and construction or rehabilitation costs, only interest on the portion of the loan attributable to the construction and rehabilitation costs qualifies for the credit.

(c) Loan fees and other charges imposed and collected by the lending institution may not be included in the computation of the credit.

(d) The tax credit must be claimed over the term of the loan or 10 tax years, whichever is shorter.

(4) If a qualifying loan is transferred by the original lender to another commercial lending institution, the transferee may not claim a credit on the loan beyond the 10-year period that started with the tax year the loan was originally made. The transferee's credit must be computed in the same way and subject to the same limitations as the original lender's credit.

(5) If a qualifying loan is transferred by the original lender to another person, the transferor may retain the right to claim the credit if it also retains the responsibility for servicing the loan.

(6) For tax years beginning on or after January 1, 2002, a lending institution that is not subject to tax under ORS Chapter 317 may sell or otherwise transfer its allowable credit to a taxpayer that is subject to taxation under ORS Chapter 317. The transferee of the credit may claim the credit for the same tax years the transferor would have been allowed to claim the credit. The transferee and the transferor must attach to the return on which the credit is claimed by the transferee, a statement that includes the following information:

(a) The transferor's name, federal employer ID number (FEIN) and Oregon business identification number (BIN);

(b) The transferee's name, FEIN and BIN;

(c) The amount of the credit transferred;

(d) The amount of any proceeds received for the transfer; and

(e) Signatures of a corporate officer of the transferor and a corporate officer of the transferee.

(7) A single unit of housing can qualify as an agriculture workforce housing project.

Or. Admin. R. 150-317-0260

RD 7-1989, f. 12-18-89, cert. ef. 12-31-89; RD 12-1990, f. 12-20-90, cert. ef. 12-31-90; RD 7-1991, f. 12-30-91, cert. ef. 12-31-91, Renumbered from 150-317.145(Note)-(C)-(2); RD 3-1995, f. 12-29-95, cert. ef. 12-31-95; REV 8-2001, f. & cert. ef. 12-31-01; REV 1-2014, f. & cert. ef. 7-31-14; Renumbered from 150-317.147, REV 68-2016, f. 8-15-16, cert. ef. 9/1/2016

Stat. Auth.: ORS 305.100

Stats. Implemented: ORS 317.147