Con-Way Inc. & Affiliates v. Dept. of Rev.

Under ORS 317.090(2) a taxpayer may satisfy its tax liability by claiming its "Business Energy Tax Credit."

The Department of Revenue (DOR) appealed the Tax Court's grant of summary judgment in favor of Con-Way. After paying $50,000 on its tax liability, Con-Way Inc. attempted to apply its Business Energy Tax Credit (BETC) to its remaining balance of $25,000. The DOR disallowed the application of Con-Way's BETC to its remaining tax liability and assessed a deficiency of $25,000. Con-Way appealed to the Tax Court, arguing that no statute prohibited its application of BETC to taxes due under ORS 317.090(2). The DOR argued that the language in ORS 317.090(2), specifically the words "pay" and "minimum,” meant that the liability must be paid in cash, and could not be reduced by any credit. The Tax Court granted Con-Way's petition for summary judgment. The Supreme Court found that credit was not precluded from the meaning of the word "pay," in regards to a payment. Further, the Court found that the BETC was not excluded by the word "minimum." Affirmed.