As Passed by the Senate 1
123rd General Assembly 4
Regular Session Am. S. B. No. 4 5
1999-2000 6
SENATORS MUMPER-BLESSING-JOHNSON-DRAKE-LATTA-WHITE-WATTS- 8
RAY-GARDNER-ARMBRUSTER-SPADA-PRENTISS 9
_________________________________________________________________ 11
A B I L L
To amend section 5747.98 and to enact section 13
5747.37 of the Revised Code to grant a 14
nonrefundable credit against the personal income 15
tax to persons who adopt children. 17
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 19
Section 1. That section 5747.98 be amended and section 21
5747.37 of the Revised Code be enacted to read as follows: 22
Sec. 5747.37. AS USED IN THIS SECTION: 24
(A) "MINOR CHILD" MEANS A PERSON UNDER EIGHTEEN YEARS OF 27
AGE.
(B) "LEGALLY ADOPT" MEANS TO ADOPT A MINOR CHILD PURSUANT 30
TO CHAPTER 3107. OF THE REVISED CODE, OR PURSUANT TO THE LAWS OF 32
ANY OTHER STATE OR NATION IF SUCH AN ADOPTION IS RECOGNIZABLE
UNDER SECTION 3107.18 OF THE REVISED CODE. FOR THE PURPOSES OF 33
THIS SECTION, A MINOR CHILD IS LEGALLY ADOPTED WHEN THE FINAL 34
DECREE OR ORDER OF ADOPTION IS ISSUED BY THE PROPER COURT UNDER 35
THE LAWS OF THE STATE OR NATION UNDER WHICH THE CHILD IS ADOPTED, 37
OR, IN THE CASE OF AN INTERLOCUTORY ORDER OF ADOPTION, WHEN THE 38
ORDER BECOMES FINAL UNDER THE LAWS OF THE STATE OR NATION. 40
"LEGALLY ADOPT" DOES NOT INCLUDE THE ADOPTION OF A MINOR CHILD BY 41
THE CHILD'S STEPPARENT.
THERE IS HEREBY GRANTED A CREDIT AGAINST THE TAX IMPOSED BY 43
SECTION 5747.02 OF THE REVISED CODE FOR THE LEGAL ADOPTION BY A 44
TAXPAYER OF A MINOR CHILD. THE AMOUNT OF THE CREDIT SHALL BE 46
FIVE HUNDRED DOLLARS FOR EACH MINOR CHILD LEGALLY ADOPTED BY THE 47
2
TAXPAYER DURING THE TAXABLE YEAR. THE CREDIT SHALL BE CLAIMED IN 48
THE ORDER REQUIRED UNDER SECTION 5747.98 OF THE REVISED CODE.
FOR THE PURPOSES OF MAKING TAX PAYMENTS UNDER THIS CHAPTER, TAXES 50
EQUAL TO THE AMOUNT OF THE CREDIT SHALL BE CONSIDERED TO BE PAID 51
TO THIS STATE ON THE FIRST DAY OF THE TAXABLE YEAR. 52
Sec. 5747.98. (A) To provide a uniform procedure for 62
calculating the amount of tax due under section 5747.02 of the 63
Revised Code, a taxpayer shall claim any credits to which the 64
taxpayer is entitled in the following order: 66
(2)(1) The retirement income credit under division (B) of 68
section 5747.055 of the Revised Code; 69
(3)(2) The senior citizen credit under division (C) of 71
section 5747.05 of the Revised Code; 72
(4)(3) The lump sum distribution credit under division (D) 74
of section 5747.05 of the Revised Code; 75
(5)(4) The dependent care credit under section 5747.054 of 77
the Revised Code; 78
(6)(5) The lump sum retirement income credit under 80
division (C) of section 5747.055 of the Revised Code; 81
(7)(6) The lump sum retirement income credit under 83
division (D) of section 5747.055 of the Revised Code; 84
(8)(7) The lump sum retirement income credit under 86
division (E) of section 5747.055 of the Revised Code; 87
(9)(8) The credit for displaced workers who pay for job 89
training under section 5747.27 of the Revised Code; 90
(10)(9) The campaign contribution credit under section 92
5747.29 of the Revised Code; 95
(11)(10) The twenty-dollar personal exemption credit under 97
section 5747.022 of the Revised Code; 98
(12)(11) The joint filing credit under division (G) of 100
section 5747.05 of the Revised Code; 101
(13)(12) The nonresident credit under division (A) of 103
section 5747.05 of the Revised Code; 104
(14)(13) The credit for a resident's out-of-state income 106
3
under division (B) of section 5747.05 of the Revised Code; 107
(15)(14) The credit for employers that enter into 110
agreements with child day-care centers under section 5747.34 of
the Revised Code; 111
(16)(15) The credit for employers that reimburse employee 113
child day-care expenses under section 5747.36 of the Revised 115
Code;
(16) THE CREDIT FOR ADOPTION OF A MINOR CHILD UNDER 117
SECTION 5747.37 OF THE REVISED CODE; 118
(17) The credit for manufacturing investments under 120
section 5747.051 of the Revised Code; 121
(18) The credit for purchases of new manufacturing 123
machinery and equipment under section 5747.26 or section 5747.261 125
of the Revised Code;
(19) The second credit for purchases of new manufacturing 128
machinery and equipment under section 5747.31 of the Revised 129
Code;
(20) The enterprise zone credit under section 5709.66 of 131
the Revised Code; 132
(21) The credit for the eligible costs associated with a 134
voluntary action under section 5747.32 of the Revised Code; 136
(22) The credit for employers that establish on-site child 139
day-care centers under section 5747.35 of the Revised Code; 140
(23) The credit for purchases of qualifying grape 142
production property under section 5747.28 of the Revised Code; 143
(24) The export sales credit under section 5747.057 of the 146
Revised Code;
(25) The credit for research and development and 148
technology transfer investors under section 5747.33 of the 149
Revised Code;
(26) The enterprise zone credits under section 5709.65 of 152
the Revised Code;
(27) The refundable jobs creation credit under section 155
5747.058 of the Revised Code;
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(28) The refundable credit for taxes paid by a qualifying 157
entity granted under section 5747.059 of the Revised Code; 158
(29) The refundable credits for taxes paid by a qualifying 161
pass-through entity granted under division (J) of section 5747.08 163
of the Revised Code.
(B) For any credit, except the refundable credits 165
enumerated in divisions (A)(27), (28), and (29) of this section 167
and the credit granted under division (I) of section 5747.08 of 169
the Revised Code, the amount of the credit for a taxable year 170
shall not exceed the tax due after allowing for any other credit 171
that precedes it in the order required under this section. Any 172
excess amount of a particular credit may be carried forward if 173
authorized under the section creating that credit. Nothing in 174
this chapter shall be construed to allow a taxpayer to claim, 175
directly or indirectly, a credit more than once for a taxable 176
year.
Section 2. That existing section 5747.98 of the Revised 178
Code is hereby repealed. 179
Section 3. Section 5747.37 of the Revised Code, as enacted 181
by this act, applies to adoptions of minor children under final 182
decrees or orders of adoption duly issued, or interlocutory 183
orders of adoption that become final, during taxable years 184
beginning on or after January 1, 1999. 185