Or. Admin. R. 150-317-0220 - Lender’s Credit: Loans to Wood Heat and Fuel Oil Heat Customers

150-317-0220
Lender’s Credit: Loans to Wood Heat and Fuel Oil Heat Customers

(1) A credit is available to commercial lending institutions for tax years beginning on or after January 1, 1982, for low interest loans made to wood heat and fuel oil heat customers to finance energy conservation measures. To qualify, the loans must be made on or after January 1, 1982.

(2) The amount of the credit is equal to the difference between the interest charged on a qualifying loan, at an interest rate of 6 percent, and the interest that would have been charged if the loan had been issued at the lending institution’s normal fixed interest rate. The fixed interest rate cannot exceed a maximum rate set by the director of the Office of Energy. The normal fixed interest rate is the rate that would have been charged on a similar loan made on the same day as the qualifying loan. The initial rate of interest charged on variable rate loans may be substituted for the fixed rate if the lending institution does not make fixed rate nonsubsidized loans. If the credit exceeds the commercial lending institution’s tax liability, the balance may be carried forward for up to 15 years.