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OREGON DEPARTMENT OF EDUCATION

EARLY LEARNING DIVISION




 


DIVISION 700
CHILD CARE CONTRIBUTION TAX CREDIT

414-700-0000
Purpose
The purpose of these rules is provide
guidance for administration of the child care contribution tax credit program as
authorized in ORS 314.752, 315.202 and 318.031 and Section 10, chapter 682, Oregon
Laws 1987, Section 87, chapter 625, Oregon Laws 1989 and ORS Chapter 329A.700 to
329A.718. The child care contribution tax credit was enacted by the 2003 legislature
to:
(1) Encourage taxpayers to
make contributions to the Office of Child Care by providing a financial return on
qualified contributions and by soliciting other contributions.
(2) Achieve specific and
measurable goals for targeted communities and populations.
(3) Set standards for the
child care industry concerning the cost of providing quality, affordable child care.
(4) Strengthen the viability
and continuity of child care providers while making child care more affordable for
low and moderate income families.
Stat. Auth: ORS 329A.706
Statutes Implemented: ORS
329A.700-329A.718
Hist.: CCD 4-2003, f. 12-5-03
cert. ef. 12-7-03; ELD 13-2014, f. & cert. ef. 11-25-14
414-700-0010
Definitions
(1) "Child care provider" means a provider,
for compensation, of care, supervision or guidance to a child on a regular basis
in a center or in a home other than the child's home. Child care provider does not
include a person who is the child's parent, guardian or custodian.
(2) "Community" means a recognized
unit of government, service delivery area or other commonly recognized area or region
within the state of Oregon.
(3) "Community agency" means
a nonprofit agency that:
(a) Provides services related
to child care, children and families, community development or similar services;
and
(b) Is eligible to receive
contributions that qualify as deductions under section 170 of the Internal Revenue
Code.
(4) "High quality child care"
means child care that meets standards for high quality child care established or
approved by the Early Learning Council.
(5) "Qualified contribution"
means a contribution made by a taxpayer to the Office of Child Care or a selected
community agency for the purpose of promoting child care, and for which an application
is submitted for a tax credit certificate.
(6) "Tax credit certificate"
means a certificate issued by the Office of Child Careto a taxpayer to qualify the
taxpayer for a tax credit.
(7) "Tax credit marketer"
means an individual or entity selected by the Office of Child Care to market tax
credits to taxpayers.
Stat. Auth: ORS 329A.706
Statutes Implemented: ORS
329A.700-329A.718
Hist.: CCD 4-2003, f. 12-5-03
cert. ef. 12-7-03; ELD 13-2014, f. & cert. ef. 11-25-14
414-700-0020
Advisory Committee
(1) The Early Learning Division shall
guide and direct the implementation of this program in collaboration with an advisory
committee established by the Office of Child Care.
(2) The advisory committee
shall be comprised of representatives of state agencies, local organizations, advocates,
and consumers with experience or interest in tax credit programs, high quality child
care, or community development.
Stat. Auth.: ORS 657A.706
Stats. Implemented: ORS 657A.700
- 657A.718
Hist.: CCD 4-2003, f. 12-5-03
cert. ef. 12-7-03; ELD 13-2014, f. & cert. ef. 11-25-14
414-700-0030
Community Agencies
(1) The Office of Child Care shall select
one or more community agencies that, in the judgment of the Office and based on
the criteria set forth in OAR 414-700-0050(a) through (d), will best serve the interests
of their community.
(2) Community agencies shall:
(a) Disburse moneys to child
care providers in their community;
(b) Coordinate an application
process by which persons may apply to be participating providers as described in
414-700-0060;
(c) Enter into agreements
with participating providers under which the duties and responsibilities of providers
and the community agency are stated;
(d) Provide or coordinate
required training for participating providers;
Stat. Auth: ORS 329A.706
Statutes Implemented: ORS
329A.700-329A.718
Hist.: CCD 4-2003, f. 12-5-03
cert. ef. 12-7-03; ELD 13-2014, f. & cert. ef. 11-25-14
414-700-0040
Application and Renewal Process
for Community Agencies
(1) A community agency desiring to represent
a community described in OAR 414-700-0030 shall submit an application to the Office
of Child Care, in a form prescribed and provided by the Office of Child Care. The
application will demonstrate and describe the agency's experience and abilities
in the following areas:
(a) Financial soundness,
net worth, cash flow, and accounting capacity to manage a tax credit program.
(b) Demonstrated ability
to serve low- and moderate- income families.
(c) A governing board that
is stable, has experience with financial matters, is representative of the community,
and has a history of collaboration with other agencies in the community.
(d) An executive officer
and staff with skill and experience in child care business management and small
business development.
(2) The Office of Child Care,
in collaboration with the advisory committee established in OAR 414-700-0020, shall
select a community agency to represent a community.
(3) A selected community
agency shall enter into a written agreement with the Child Care Division that specifies
the duties and performance expectations required of the agency.
Stat. Auth: ORS 329A.706
Statutes Implemented: ORS
329A.700-329A.718
Hist.: CCD 4-2003, f. 12-5-03
cert. ef. 12-7-03; ELD 13-2014, f. & cert. ef. 11-25-14
414-700-0050
Distribution of Funds to Community Agencies
(1) The Office of Child Care shall determine
the total value of moneys to be available to each selected community agency to distribute
to providers based on goals established for the program by the Office of Child Care
, in collaboration with the advisory committee established in OAR 414-700-0020 and
transmit those determinations to the selected community agencies of each year.
(2) The Office of Child Care
shall distribute moneys to the community agencies in a manner that will facilitate
timely implementation of the program in that community.
(3) The total value of moneys
available to all selected community agencies may not exceed the amount of contributions
received from taxpayers during the tax year, minus any reasonable administrative
costs incurred by the Office of Child Care and the selected community agencies.
(4) Distributions shall be
made to selected community agencies in the proportion that the Office of Child Care
determines best promotes the provision of child care in the state.
Stat. Auth.: ORS 657A.706
Stats. Implemented: ORS 657A.700
- 657A.718
Hist.: CCD 4-2003, f. 12-5-03
cert. ef. 12-7-03; ELD 13-2014, f. & cert. ef. 11-25-14
414-700-0060
Participating Provider Eligibility
Requirements
(1) To be eligible for disbursements
under this program, child care providers shall:
(a) Be regulated by the Office
of Child Care;
(b) Accept children for whom
child care is paid for through Department of Human Services subsidy;
(c) Provide high quality
child care as defined by the Early Learning Council in collaboration with the advisory
council;
(d) Maintain adequate liability
insurance, financial records and parent policies and contracts; and
(e) Permit the community
agency to conduct visits for monitoring purposes.
(2) If the provider is a
home-based business, the provider shall meet the following requirements in addition
to those in subsection (1) of this section:
(a) Enter into an agreement
with the community agency to continue to provide child care services for at least
two additional years; and
(b) Provide care to children
from at least two families that have incomes of 85 percent or less of the median
income for the region.
(3) If the provider is a
child care center, at least 25 percent of the families served by the center must
have incomes that are 85 percent or less of the median income for the region.
(4) In selecting participating
child care providers, selected community agencies must give preference to providers
that provide child care to low and moderate income families.
(5) For care provided to
children of families whose income does not exceed the level established by the community
agency pursuant to ORS 657A.715(2)(g), the fee charged to the family by an eligible
provider shall not exceed ten percent of the family's gross monthly income.
Stat. Auth.: ORS 657A.706
Stats. Implemented: ORS 657A.700
- 657A.718
Hist.: CCD 4-2003, f. 12-5-03
cert. ef. 12-7-03; CCD 2-2005(Temp), f. & cert. ef. 6-16-05 thru 12-13-05; CCD
4-2005(Temp), f. 12-2-05, cert. ef. 12-15-05 thru 6-11-06; CCD 2-2006, f. 4-21-06,
cert. ef. 4-23-06; ELD 13-2014, f. & cert. ef. 11-25-14
414-700-0070
Distribution of Funds to Participating Providers
(1) The selected community agency shall
identify providers in the community that meet the requirements of OAR 414-700-0060
for the purpose of distribution of moneys. The selected community agency shall develop
a process by which child care providers apply to receive distributions of moneys
from contributions made by taxpayers.
(2) By the end of each calendar
year, the selected community agency must distribute to participating child care
providers all moneys available to the community as a result of this program. Distributions
shall be based on:
(a) The actual costs of providing
quality, affordable child care in the community for which distributions are being
made, including training costs, operating expenses and wages.
(b) The incomes of the families
the provider serves and the child care fees the provider charges.
(3) The selected community
agency shall, through a process approved by the Child Care Division, determine the
amount of moneys each eligible provider receives.
(4) A substantial portion
of the moneys shall be distributed to providers who operate home-based child care
businesses.
Stat. Auth.: ORS 657A.706
Stats. Implemented: ORS 657A.700
- 657A.718
Hist.: CCD 4-2003, f. 12-5-03
cert. ef. 12-7-03; ELD 13-2014, f. & cert. ef. 11-25-14
414-700-0080
Allocation of Certificates
(1) Tax credit certificates shall be
available to taxpayers on a statewide basis. The Office of Child Care shall allocate
tax credit certificates to taxpayers that make qualified contributions to the Child
Care Fund.
(2) If a taxpayer makes a
contribution to the Office of Child Care for the purpose of receiving a tax credit
under this program, the taxpayer shall submit an application for a tax credit certificate
with the contribution. The applications shall:
(a) Be available to taxpayers
from the Office of Child Care; and
(b) Be submitted by December
31 of each year.
(3) Contributions made under
this subsection shall be deposited in the Child Care Fund.
(4) The Office of Child Care
shall consider applications for tax credit certificates in the chronological order
in which the applications are received by the Office of Child Care. The division
shall issue tax credit certificates to applicants until the total credit value of
all certificates issued by the division for the calendar year equals $500,000. Each
issued certificate shall state the value of the contribution being certified as
eligible for the tax credit allowed under ORS 315.213.
(5) The Office of Child Care
may not issue a tax credit certificate to a taxpayer to the extent the claim for
credit in the application, when added to the total credit value previously certified
by the Office of Child Care exceeds the $500,000 tax credit value available for
the calendar year requested.
(6) A taxpayer who receives
a notice of denial of a tax credit certificate or that receives a tax credit certificate
issued for an amount that is less than the amount contributed may request a refund
for the amount contributed within 90 days of the Office of Child Care's denial or
issuance of the certificate.
(a) The Office of Child Care
shall send notice of a denial or changed amount and refund the amount for which
a tax credit will not be granted within 30 days after receiving the request.
(b) The refund shall be made
from the Child Care Fund.
(7) The Office of Child Care
shall send a copy of all tax credit certificates issued to the Department of Revenue.
Stat. Auth.: ORS 657A.706
Stats. Implemented: ORS 657A.700
- 657A.718
Hist.: CCD 4-2003, f. 12-5-03
cert. ef. 12-7-03; ELD 13-2014, f. & cert. ef. 11-25-14
414-700-0090
Taxpayer Requirements
(1) A credit against the taxes otherwise
due under ORS Chapter 316 or, if the taxpayer is a corporation, under ORS Chapter
317 or 318, is allowed to a taxpayer for certified contributions made to the Office
of Child Care under OAR 414-700-0080.
(a) The amount of a tax credit
available to a taxpayer for a tax year shall equal the amount stated in the tax
credit certificate.
(b) The tax credit may not
exceed the tax liability of the taxpayer for the tax year in which the credit is
claimed.
(2) Any tax credit not used
by the taxpayer in a particular tax year may be carried forward and offset the taxpayer's
tax liability in any of the four succeeding tax years. The credit cannot be carried
forward for any tax year thereafter.
(a) A taxpayer shall retain
the tax credit certificate received under OAR 414-700-0080 with their copy of their
tax return filed with the state Department of Revenue for the tax year in which
the tax credit certificate applies.
(b) A credit under this section
may be claimed by a non-resident or part-year resident without proration.
(3) The credit allowed under
this section is in addition to, and not in lieu of, any credit or deduction allowable
under ORS chapters 316, 317, or 318 for charitable contributions and contributions
made in relation to child care.
(4) If a taxpayer makes a
contribution to the Office of Child Care but does not want to receive a tax credit,
the taxpayer may receive only deductions and credits otherwise allowed for a charitable
contribution.
(5) Contributions made under
this program shall be deposited in the Child Care Fund established under ORS 329A.010.
Stat. Auth.: ORS 657A.706
Stats. Implemented: ORS 657A.700
- 657A.718
Hist.: CCD 4-2003, f. 12-5-03
cert. ef. 12-7-03; ELD 13-2014, f. & cert. ef. 11-25-14

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