As Reported by the Senate Ways and Means Committee 1
123rd General Assembly 4
Regular Session Am. S. B. No. 4 5
1999-2000 6
SENATORS MUMPER-BLESSING-JOHNSON-DRAKE 8
_________________________________________________________________ 10
A B I L L
To amend section 5747.98 and to enact section 12
5747.37 of the Revised Code to grant a 13
nonrefundable credit against the personal income 14
tax to persons who adopt children. 16
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 18
Section 1. That section 5747.98 be amended and section 20
5747.37 of the Revised Code be enacted to read as follows: 21
Sec. 5747.37. AS USED IN THIS SECTION: 23
(A) "MINOR CHILD" MEANS A PERSON UNDER EIGHTEEN YEARS OF 26
AGE.
(B) "LEGALLY ADOPT" MEANS TO ADOPT A MINOR CHILD PURSUANT 29
TO CHAPTER 3107. OF THE REVISED CODE, OR PURSUANT TO THE LAWS OF 31
ANY OTHER STATE OR NATION IF SUCH AN ADOPTION IS RECOGNIZABLE
UNDER SECTION 3107.18 OF THE REVISED CODE. FOR THE PURPOSES OF 32
THIS SECTION, A MINOR CHILD IS LEGALLY ADOPTED WHEN THE FINAL 33
DECREE OR ORDER OF ADOPTION IS ISSUED BY THE PROPER COURT UNDER 34
THE LAWS OF THE STATE OR NATION UNDER WHICH THE CHILD IS ADOPTED, 36
OR, IN THE CASE OF AN INTERLOCUTORY ORDER OF ADOPTION, WHEN THE 37
ORDER BECOMES FINAL UNDER THE LAWS OF THE STATE OR NATION. 39
"LEGALLY ADOPT" DOES NOT INCLUDE THE ADOPTION OF A MINOR CHILD BY 40
THE CHILD'S STEPPARENT.
THERE IS HEREBY GRANTED A CREDIT AGAINST THE TAX IMPOSED BY 42
SECTION 5747.02 OF THE REVISED CODE FOR THE LEGAL ADOPTION BY A 43
TAXPAYER OF A MINOR CHILD. THE AMOUNT OF THE CREDIT SHALL BE 45
FIVE HUNDRED DOLLARS FOR EACH MINOR CHILD LEGALLY ADOPTED BY THE 46
TAXPAYER DURING THE TAXABLE YEAR. THE CREDIT SHALL BE CLAIMED IN 47
2
THE ORDER REQUIRED UNDER SECTION 5747.98 OF THE REVISED CODE.
FOR THE PURPOSES OF MAKING TAX PAYMENTS UNDER THIS CHAPTER, TAXES 49
EQUAL TO THE AMOUNT OF THE CREDIT SHALL BE CONSIDERED TO BE PAID 50
TO THIS STATE ON THE FIRST DAY OF THE TAXABLE YEAR. 51
Sec. 5747.98. (A) To provide a uniform procedure for 61
calculating the amount of tax due under section 5747.02 of the 62
Revised Code, a taxpayer shall claim any credits to which the 63
taxpayer is entitled in the following order: 65
(2)(1) The retirement income credit under division (B) of 67
section 5747.055 of the Revised Code; 68
(3)(2) The senior citizen credit under division (C) of 70
section 5747.05 of the Revised Code; 71
(4)(3) The lump sum distribution credit under division (D) 73
of section 5747.05 of the Revised Code; 74
(5)(4) The dependent care credit under section 5747.054 of 76
the Revised Code; 77
(6)(5) The lump sum retirement income credit under 79
division (C) of section 5747.055 of the Revised Code; 80
(7)(6) The lump sum retirement income credit under 82
division (D) of section 5747.055 of the Revised Code; 83
(8)(7) The lump sum retirement income credit under 85
division (E) of section 5747.055 of the Revised Code; 86
(9)(8) The credit for displaced workers who pay for job 88
training under section 5747.27 of the Revised Code; 89
(10)(9) The campaign contribution credit under section 91
5747.29 of the Revised Code; 94
(11)(10) The twenty-dollar personal exemption credit under 96
section 5747.022 of the Revised Code; 97
(12)(11) The joint filing credit under division (G) of 99
section 5747.05 of the Revised Code; 100
(13)(12) The nonresident credit under division (A) of 102
section 5747.05 of the Revised Code; 103
(14)(13) The credit for a resident's out-of-state income 105
under division (B) of section 5747.05 of the Revised Code; 106
3
(15)(14) The credit for employers that enter into 109
agreements with child day-care centers under section 5747.34 of
the Revised Code; 110
(16)(15) The credit for employers that reimburse employee 112
child day-care expenses under section 5747.36 of the Revised 114
Code;
(16) THE CREDIT FOR ADOPTION OF A MINOR CHILD UNDER 116
SECTION 5747.37 OF THE REVISED CODE; 117
(17) The credit for manufacturing investments under 119
section 5747.051 of the Revised Code; 120
(18) The credit for purchases of new manufacturing 122
machinery and equipment under section 5747.26 or section 5747.261 124
of the Revised Code;
(19) The second credit for purchases of new manufacturing 127
machinery and equipment under section 5747.31 of the Revised 128
Code;
(20) The enterprise zone credit under section 5709.66 of 130
the Revised Code; 131
(21) The credit for the eligible costs associated with a 133
voluntary action under section 5747.32 of the Revised Code; 135
(22) The credit for employers that establish on-site child 138
day-care centers under section 5747.35 of the Revised Code; 139
(23) The credit for purchases of qualifying grape 141
production property under section 5747.28 of the Revised Code; 142
(24) The export sales credit under section 5747.057 of the 145
Revised Code;
(25) The credit for research and development and 147
technology transfer investors under section 5747.33 of the 148
Revised Code;
(26) The enterprise zone credits under section 5709.65 of 151
the Revised Code;
(27) The refundable jobs creation credit under section 154
5747.058 of the Revised Code;
(28) The refundable credit for taxes paid by a qualifying 156
4
entity granted under section 5747.059 of the Revised Code; 157
(29) The refundable credits for taxes paid by a qualifying 160
pass-through entity granted under division (J) of section 5747.08 162
of the Revised Code.
(B) For any credit, except the refundable credits 164
enumerated in divisions (A)(27), (28), and (29) of this section 166
and the credit granted under division (I) of section 5747.08 of 168
the Revised Code, the amount of the credit for a taxable year 169
shall not exceed the tax due after allowing for any other credit 170
that precedes it in the order required under this section. Any 171
excess amount of a particular credit may be carried forward if 172
authorized under the section creating that credit. Nothing in 173
this chapter shall be construed to allow a taxpayer to claim, 174
directly or indirectly, a credit more than once for a taxable 175
year.
Section 2. That existing section 5747.98 of the Revised 177
Code is hereby repealed. 178
Section 3. Section 5747.37 of the Revised Code, as enacted 180
by this act, applies to adoptions of minor children under final 181
decrees or orders of adoption duly issued, or interlocutory 182
orders of adoption that become final, during taxable years 183
beginning on or after January 1, 1999. 184