1. (1) Annual Program Cap. The total amount of tax credits that may be certified by OBDD for all taxpayers in a single tax year may not exceed $12,500,000, as provided in Oregon Laws 2026, chapter 142, section 12 (SB 1507).
2. (2) Cap Tracking. OBDD shall track the cumulative total of credit amounts requested by approved applicants following the close of the application period and the completion of eligibility determinations under OAR 123-670-0050.
3. (3) Determination of Cap Status. Following completion of all eligibility determinations, OBDD shall calculate the total credit amount requested by all approved applicants for the tax year. If the total does not exceed $12,500,000, OBDD shall certify each approved applicant for the full credit amount requested. If the total exceeds $12,500,000, OBDD shall apply a proportionate reduction as provided in section (4) of this rule.

4. (4) Proportionate Reduction. If the total credit amount requested by all approved applicants exceeds the annual program cap, OBDD shall reduce the certified credit amount for each approved applicant proportionately as follows:

   1. (a) OBDD shall calculate a reduction factor equal to $12,500,000 divided by the total credit amount requested by all approved applicants;
   2. (b) The certified credit amount for each approved applicant shall be equal to the applicant's requested credit amount multiplied by the reduction factor, rounded down to the nearest whole dollar; and
   3. (c) The sum of all certified credit amounts shall not exceed $12,500,000.
5. (5) Notification of Proportionate Reduction. If a proportionate reduction is applied, OBDD shall notify all approved applicants of the reduction in the certification notice issued under OAR 123-670-0050(5). The certification notice shall state the applicant's requested credit amount and the resulting certified credit amount.
6. (6) Reporting. OBDD shall publish annually on its website the total amount of credits certified for each tax year, the number of approved applicants, and whether a proportionate reduction was applied, consistent with the confidentiality requirements of OAR 123-670-0090.

Statutory/Other Authority

ORS 285A.075

Statutes/Other Implemented

Oregon Laws 2026, Chapter 142 & Oregon Laws 2026, Chapter 50

History

OBDD 9-2026, temporary adopt filed 06/02/2026, effective 06/05/2026 through 12/01/2026