(2) The credit allowed under this section shall be the least of:

(a) In the case of a tier I short line railroad, $1,000 multiplied by the number of miles of short line railroad track the taxpayer owns or leases in this state on the day the short line railroad rehabilitation project is completed;

(b) In the case of a tier II short line railroad, $3,500 multiplied by the number of miles of short line railroad track the taxpayer owns or leases in this state on the day the short line railroad rehabilitation project is completed; or

(c) Fifty percent of the short line railroad rehabilitation project costs paid or incurred by the taxpayer during the tax year in which the credit is claimed.

(3) For the credit to be allowed under this section:

(a) The infrastructure must be located in Oregon; and

(b) The taxpayer must:

(A) Own or lease the infrastructure;

(B) Be a short line railroad; and

(C) Receive a final written certification from the Department of Transportation before claiming the credit.

(4) The amount of the credit claimed under this section for any one tax year may not exceed the tax liability of the taxpayer.

(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 credit allowed under this section is not in lieu of any depreciation or amortization deduction for the short line railroad rehabilitation project to which the taxpayer otherwise may be entitled for purposes of ORS chapter 316, 317 or 318 for the tax year.

(7) The taxpayer’s adjusted basis for determining gain or loss may not be decreased by any tax credit allowed under this section.

(8)(a) The Department of Revenue may by rule require that the Department of Transportation provide information about a certification issued under ORS 315.595, including the name and taxpayer identification number of the taxpayer or other person receiving 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.

(b) A taxpayer that is a pass-through entity that has received certification under ORS 315.595 shall provide to the Department of Revenue, within two months after the close of the tax year in which the certification was issued, the name, taxpayer identification number and any other information required by the department of each owner receiving a distributive share of the credit, in a manner prescribed by the department.

(9) The Department of Revenue shall prescribe by rule the manner and the timing of submission of the information described in subsection (8) of this section to the department.

(10) The credit shall be claimed on a form prescribed by the Department of Revenue that contains the information required by the department.

(11) 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 nonresident 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. [2019 c.579 §8]

Note: Section 17, chapter 579, Oregon Laws 2019, provides:

Sec. 17. (1) Sections 7 to 14 of this 2019 Act [315.591 to 315.606] apply to tax years beginning on or after January 1, 2020, and before January 1, 2026.

(2) Except as provided in section 8 (5) of this 2019 Act [315.593 (5)], a credit may not be claimed under section 8 of this 2019 Act for tax years beginning on or after January 1, 2026. [2019 c.579 §17]