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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 3087
Sponsored by Representative LEVY E (Presession filed.)
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 as introduced.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.
Applies to tax years beginning on or after January 1, 2026, and to eligible generation facilities
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; amending ORS 314.772 and 318.031; and
prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Sections 2 and 3 of this 2025 Act are added to and made a part of ORS
chapter315.
SECTION 2.As used in this section and section 3 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;
(C) First placed in service on or after January 1, 2026; and
(D) Covered by an interconnection agreement, entered into on or after January 1, 2025,
with:
(i) The Bonneville Power Administration; or
(ii) An electric utility.
(3) “Interconnection agreement” means a contract, between an owner or operator of a
transmission or distribution system and a person that owns an eligible generation facility,
that governs the interconnection of an eligible generation facility to a transmission or dis-
tribution system.
(4) “Nonemitting electricity” has the meaning given that term in ORS 469A.400.
(5) “Placed in service” means the date on which an eligible generation facility is ready
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 3524 HB3087
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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,
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) Prior to claiming the credit allowed under this section, a taxpayer is required to re-
ceive written certification from the State Department of Energy that the taxpayer is the
owner of an eligible generation facility.
(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 the 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 but may not be carried forward for any tax year thereafter.
(6) If a change in the tax year of the taxpayer occurs as described in ORS 314.085, or if
the Department of Revenue terminates the taxpayer’s tax year under ORS 314.440, the credit
allowed under this section shall be prorated or computed in a manner consistent with ORS
314.085.
(7) The Department of Revenue shall adopt rules for the purposes of this section, in-
cluding policies and procedures for verifying taxpayer eligibility for the credit allowed under
this section.
(8) The State Department of Energy shall provide information to the Department of Re-
venue about all taxpayers that are eligible for a tax credit under this section, if required by
ORS 315.058.
SECTION 4. 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
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-
[2] HB3087
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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 5. 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 6.Section 3 of this 2025 Act applies:
(1) Notwithstanding ORS 315.037, to all tax years beginning on or after January 1, 2026;
and
(2) To eligible generation facilities first placed in service on or after January 1, 2026, and
before January 1, 2032.
SECTION 7.This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
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