Caption: Remove date-specific language to
allow more than one auction per year.
Order No.: REV 3-2011(Temp)
Filed with Sec. of
Certified to be
Effective: 11-29-11 thru 3-11-12
Rules Adopted: 150-315.HB 3672
Rules Suspended: 150-315.HB 3672(T)
Subject: This rule gives guidance to taxpayers wanting to
purchase renewable energy tax credits. It sets the requirements for submission
of a qualified bid in the credit auction. The amendment removes date-specific
language to allow the department to facilitate more than one auction per year,
Rules Coordinator: Ken Ross—(503) 945-8890
Tax Credit Auctions
(a) “Tax Credits” means the credits authorized by
Chapter 730, Section 23, Oregon Laws 2011 (HB 3672). These credits may also be
referred to as the “Renewable Energy Development Contribution Credit(s).”
(b) “Qualified Bid” means a bid that is eligible to
participate in the tax credit auction because:
(A) It is submitted in a manner and time prescribed by
the department’s instructions and this rule;
(B) It is submitted for no less than 95 percent of the
tax credit value or $950 per tax credit increment;
(C) An associated payment is received by the department
in the time and manner prescribed in section (4).
(c) “Non-qualified Bid” means a bid that is not
eligible to participate in the auction because it does not meet the
requirements of subsection (b).
(d) “Invalid or Insufficient Payments” are payments
(A) Not received by the department by 5:00 p.m. (PT) on
the date for payment set by the department;
(B) In a form other than one listed in section (4) of
(C) Fraudulent or otherwise not able to be immediately
banked by the department;
(D) Less than the full amount of the corresponding bid
received by the department; or
(E) Not submitted in a manner consistent with
department’s instructions (including attaching the required completed forms).
(d) “PT” means Pacific Time (Daylight or Standard as
dictated by the time of year).
(2) Auction Bidding Period. The tax credits auction
bidding period is no less than seven days, not to exceed 14 days; with specific
dates as announced by the department.
(3) Tax Credit Certificates. 1,500 increments of $1,000
tax credit certificates ($1,500,000 total) will be available for bidding at the
auction. The Oregon Department of Energy will issue tax credit certificates for
the prevailing qualified bids. A taxpayer to whom a certificate is issued may
claim a credit in the amount shown on the certificate against Oregon personal
income or corporate income or excise tax otherwise due for that tax year. The
tax credit may not exceed the liability of the taxpayer in any one year. Any
credit amount unused by the taxpayer may be carried forward to offset tax
liabilities in the next three succeeding tax years. No transfer of the
certificate (or the credit that it represents) is allowed.
(4) Determination of Qualifying Bids and Payments.
(a) Bids must be submitted on-line in a manner
consistent with the department’s instructions and within the bidding period as
outlined in section (2). Bids received before or after the bidding period will
be considered a non-qualified bid. The department will determine the order of bids
received by the electronic date and time stamp.
(b) A bidder may submit multiple separate bids.
(c) After a bid is submitted, a bidder must send, and
the department must receive, a payment for the total amount bid. Invalid or
insufficient payments will be returned to the bidder and the associated bid
considered a non-qualified. All bid payments must be received by the department
no later than 5:00 p.m. (PT) on the payment date. The department will date
stamp payments when they are received. The department will not consider
postmarks when determining if the payment has been timely received. It is the
bidder’s responsibility to ensure that the department receives the payment by
the deadline. The method of payment is limited to the following:
(A) Bank-issued certified check;
(B) Bank-issued cashier’s check; or
(C) Money Order.
(d) All payments will be held until the outcome of the
auction is determined. As soon as practicable, the department will return
payments received to bidders that do not prevail at the auction. No interest
will be paid on payments.
(e) A bid, once submitted, is not revocable and may not
be changed. A payment will only be returned if a bid does not result in the
issuance of a tax credit certificate.
(5) Determination of the Prevailing Bid(s). After the
payment deadline has passed, the department will determine the prevailing bids
by placing the qualifying bids in order from highest bid amount to lowest bid
amount. The department will allot up to 1,500 tax credit increments of $1,000
each to the highest qualifying bids in order from highest bid to lowest bid. In
the event that two or more qualifying bids have identical bid amounts for the
last tax credit increment (or increments) available, the prevailing qualifying
bid will be the one the department received first as determined under section
Example: Four bidders (A, B, C and D) make qualifying bids on $10,000
worth of tax credits (sold in ten increments of $1,000). Bidder A bids $950 for
each of four increments on October 24, 2011. Bidder B bids $965 for each of
four increments on October 26, 2011. Bidder C bids $985 for each of three
increments and $965 for each of two increments on November 1, 2011. Bidder D
bids $990 for each of five increments on November 4, 2011. Table not included.
See Ed. Note.
[ED. NOTE: Tables & Bids
referenced are available from the agency.]
Stat. Auth.: ORS 305.100
Stats. Implemented: Ch 730, § 23,
OL 2011(HB 3672)
Hist.: REV 2-2011(Temp), f. &
cert. ef. 10-12-11 thru 3-11-12; REV 3-2011(Temp), f. & cert. ef. 11-29-11
Notes 1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2011.