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Oregon Bulletin

November 1, 2011

 

Department of Revenue
Chapter 150

Rule Caption: Defining the process and procedures for tax credit auctions.

Adm. Order No.: REV 2-2011(Temp)

Filed with Sec. of State: 10-12-2011

Certified to be Effective: 10-12-11 thru 3-11-12

Notice Publication Date:

Rules Adopted: 150-315.HB 3672

Subject: This temporary rule explains the rules and procedures surrounding the tax credit auctions (for fiscal year 2011) mandated by Chapter 730, Section 23, Oregon Laws 2011 (House Bill 3672).

Rules Coordinator: Ken Ross—(503) 945-8890

150-315.HB 3672

Tax Credit Auctions (Fiscal Year 2011)

(1) Definitions.

(a) “Tax Credits” means the credits authorized by Chapter 730, Section 23, Oregon Laws 2011 (HB 3672) for fiscal year 2011. 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 has been received by the department in the date 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 that are:

(A) Not received by the department by 5:00 p.m. (PST) on Thursday, November 10, 2011;

(B) Any payments other than a money order, certified check, or cashier’s check;

(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) “PDT” means Pacific Daylight Time.

(e) “PST” means Pacific Standard Time.

(2) Auction Bidding Period. The tax credits auction bidding period will begin at 9:00 a.m. on Monday, October 24, 2011 and end at 5:00 p.m. on Friday, November 4, 2011 (PDT).

(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 of the total amount bid. Any payments that are found to be invalid or insufficient will not be accepted and the bid will be considered a non-qualified bid. Any such payments will be returned to the bidder. All bid payments must be received by the department no later than Thursday, November 10, 2011 at 5:00 p.m. (PST). 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) A bank-issued certified check;

(B) A bank-issued cashier’s check; or

(C) Money Orders.

(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 November 10, 2011 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 (4).

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

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, 2010.

2.) Copyright 2011 Oregon Secretary of State: Terms and Conditions of Use

Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • oregon.sos@state.or.us

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