73rd OREGON LEGISLATIVE ASSEMBLY--2005 Regular Session
Enrolled
Senate Bill 853
Sponsored by Senator MORSE; Senators DECKERT, JOHNSON,
MORRISETTE, WALKER, Representative BUTLER
CHAPTER ................
AN ACT
Relating to university research tax incentives.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) Each university in the Oregon University
System and Oregon Health and Science University may elect to
establish a university venture development fund for the purpose
of facilitating the commercialization of university research and
development.
(2) The purposes of a university venture development fund are
to provide:
(a) Capital for university entrepreneurial programs;
(b) Opportunities for students to gain experience in applying
research to commercial activities;
(c) Proof-of-concept funding for transforming research and
development concepts into commercially viable products and
services;
(d) Entrepreneurial opportunities for persons interested in
transforming research into viable commercial ventures that create
jobs in this state; and
(e) Tax credits for contributors to university research
commercialization activities.
(3) Each university that elects to establish a university
venture development fund shall:
(a) Notify the Department of Revenue of the establishment of
the fund;
(b) Either directly or through a foundation supporting
university activities, solicit contributions to the fund from
contributors;
(c) Subject to sections 2 (3), 3 (3) and 5 (1) of this 2005
Act, issue tax credit certificates to contributors to the fund in
the amount of the contributions;
(d) Establish a grant program that meets the requirements for a
venture grant program under policies adopted by the State Board
of Higher Education under section 2 of this 2005 Act or under
policies adopted by the Oregon Health and Science University
Board of Directors under section 3 of this 2005 Act; and
(e) Subject to available moneys from the fund, provide
qualified grant applicants with moneys to transform research and
development concepts undertaken by the university into
commercially viable products and services.
(4) A university that has established a university venture
development fund shall monitor the use of grants made from the
Enrolled Senate Bill 853 (SB 853-B) Page 1
fund and identify sources of income received by the university as
the result of the use of grants to convert research and
development concepts into commercially viable products and
services. The university shall transfer 20 percent of the
received income to the General Fund, until the amount transferred
to the General Fund equals the amount of tax credits claimed due
to contributions to the fund. + }
SECTION 2. { + The State Board of Higher Education shall adopt
policies that prescribe the requirements for a venture grant
program and the requirements that a grant applicant must meet in
order to receive grant moneys from a university venture
development fund, including requirements:
(1) That a grant recipient remain within this state for at
least five years following the receipt of a grant or repay the
grant plus interest;
(2) That each university that establishes a venture development
fund report amounts of tax credit certificates issued by the
university and maintain records of licensing and royalty revenue
received by the university as the result of grants made from the
fund under section 1 (4) of this 2005 Act and records of amounts
paid to the General Fund under section 1 (4) of this 2005 Act;
and
(3) Under which the Oregon University System is to maintain
records and issue directions to universities that have
established venture development funds relating to when
universities must cease issuing certificates, in order to ensure
that the total amount contributed to university venture
development funds within the Oregon University System does not
exceed $10 million. + }
SECTION 3. { + The Oregon Health and Science University Board
of Directors shall adopt a policy that prescribes the
requirements for a venture grant program and the requirements
that a grant applicant must meet in order to receive grant moneys
from the university venture development fund operated by Oregon
Health and Science University, including requirements:
(1) That a grant recipient remain within this state for at
least five years following the receipt of a grant or repay the
grant plus interest;
(2) That the university maintain records of tax credit
certificates issued by the university and cease issuing
certificates when the total amount of certificates issued by the
university equals $4 million; and
(3) That the university maintain records of licensing and
royalty revenue received by the university as the result of
grants made from the fund under section 1 (4) of this 2005 Act
and records of amounts paid to the General Fund under section 1
(4) of this 2005 Act. + }
SECTION 4. { + Section 5 of this 2005 Act is added to and made
a part of ORS chapter 315. + }
SECTION 5. { + (1) There shall be allowed a credit against the
taxes that are otherwise due under ORS chapter 316 or, if the
taxpayer is a corporation, under ORS chapter 317 or 318, for
amounts contributed to a university venture development fund
established under section 1 of this 2005 Act, to the extent the
university that established the fund issued a tax credit
certificate to the taxpayer.
(2) The total amount of the credit allowed to a taxpayer shall
equal 60 percent of the amount stated on the tax credit
certificate. Except as provided in subsection (3) of this
section, the amount of the credit allowed in any one tax year
Enrolled Senate Bill 853 (SB 853-B) Page 2
shall equal 20 percent of the amount actually contributed to the
fund.
(3) The credit allowed under this section may not exceed
$50,000 or the tax liability of the taxpayer for the tax year.
(4) In the case of a credit allowed under this section for
purposes of ORS chapter 316:
(a) A nonresident shall be allowed the credit in the same
manner and subject to the same limitations as a resident.
However, the credit shall be prorated using the proportion
provided in ORS 316.117.
(b) If a change in the tax year of a 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
shall be prorated or computed in a manner consistent with ORS
314.085.
(c) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
shall be determined in a manner consistent with ORS 316.117.
(5) A taxpayer claiming a credit under this section shall add
to federal taxable income for Oregon tax purposes any amount that
is deducted for federal tax purposes and that also serves as the
basis for the credit allowed under this section. + }
SECTION 6. { + Section 5 of this 2005 Act applies to tax years
beginning on or after January 1, 2006. + }
SECTION 7. { + (1) At the request of a university within the
Oregon University System, the State Treasurer shall establish one
or more university venture development funds for the university
within the State Treasury.
(2) Each university venture development fund established under
subsection (1) of this section may be used for the receipt and
disbursement of funds as described in section 1 of this 2005 Act
and policies adopted under section 2 of this 2005 Act. The State
Treasurer may invest moneys deposited in a university venture
development fund. Interest earned by moneys in a university
venture development fund shall be credited to the fund. + }
----------
Passed by Senate June 22, 2005
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House July 11, 2005
...........................................................
Speaker of House
Enrolled Senate Bill 853 (SB 853-B) Page 3
Received by Governor:
......M.,............., 2005
Approved:
......M.,............., 2005
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2005
...........................................................
Secretary of State
Enrolled Senate Bill 853 (SB 853-B) Page 4