As Passed by the House 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- REPRESENTATIVES 10
HOUSEHOLDER-MOTTLEY-GRENDELL-HAINES-PETERSON-AUSTRIA-
JOLIVETTE-BRITTON-BARNES-HOOD-FLANNERY-HARTNETT-DISTEL-CORBIN- 11
TERWILLEGER-PERZ-MEAD-MYERS-TRAKAS-SULZER-OGG-VERICH-GARDNER- 12
JERSE-WILSON-BENDER-YOUNG-MAIER-CLANCY-WINKLER-BRADING-CORE- 13
HARRIS-METZGER-GOODMAN-JACOBSON-ROMAN-JORDAN-PADGETT- 14
WILLAMOWSKI-BUCHY-CALVERT-SUTTON-PRINGLE-BARRETT-KRUPINSKI- 15
NETZLEY-DePIERO-HOOPS-CALLENDER-STAPLETON-DAMSCHRODER-ALLEN- 16
O'BRIEN-CATES-TAYLOR-KREBS-PATTON-LOGAN-OLMAN-JONES-SMITH- 17
AMSTUTZ-D.MILLER-SALERNO-CAREY-EVANS 18
_________________________________________________________________ 19
A B I L L
To amend section 5747.98 and to enact section 21
5747.37 of the Revised Code to grant a 22
nonrefundable credit against the personal income 23
tax to persons who adopt children. 25
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 27
Section 1. That section 5747.98 be amended and section 29
5747.37 of the Revised Code be enacted to read as follows: 30
Sec. 5747.37. AS USED IN THIS SECTION: 32
(A) "MINOR CHILD" MEANS A PERSON UNDER EIGHTEEN YEARS OF 35
AGE.
(B) "LEGALLY ADOPT" MEANS TO ADOPT A MINOR CHILD PURSUANT 38
TO CHAPTER 3107. OF THE REVISED CODE, OR PURSUANT TO THE LAWS OF 40
ANY OTHER STATE OR NATION IF SUCH AN ADOPTION IS RECOGNIZABLE
UNDER SECTION 3107.18 OF THE REVISED CODE. FOR THE PURPOSES OF 41
THIS SECTION, A MINOR CHILD IS LEGALLY ADOPTED WHEN THE FINAL 42
DECREE OR ORDER OF ADOPTION IS ISSUED BY THE PROPER COURT UNDER 43
2
THE LAWS OF THE STATE OR NATION UNDER WHICH THE CHILD IS ADOPTED, 45
OR, IN THE CASE OF AN INTERLOCUTORY ORDER OF ADOPTION, WHEN THE 46
ORDER BECOMES FINAL UNDER THE LAWS OF THE STATE OR NATION. 48
"LEGALLY ADOPT" DOES NOT INCLUDE THE ADOPTION OF A MINOR CHILD BY 49
THE CHILD'S STEPPARENT.
THERE IS HEREBY GRANTED A CREDIT AGAINST THE TAX IMPOSED BY 51
SECTION 5747.02 OF THE REVISED CODE FOR THE LEGAL ADOPTION BY A 52
TAXPAYER OF A MINOR CHILD. THE AMOUNT OF THE CREDIT SHALL BE 54
FIVE HUNDRED DOLLARS FOR EACH MINOR CHILD LEGALLY ADOPTED BY THE 55
TAXPAYER DURING THE TAXABLE YEAR. THE CREDIT SHALL BE CLAIMED IN 56
THE ORDER REQUIRED UNDER SECTION 5747.98 OF THE REVISED CODE.
FOR THE PURPOSES OF MAKING TAX PAYMENTS UNDER THIS CHAPTER, TAXES 58
EQUAL TO THE AMOUNT OF THE CREDIT SHALL BE CONSIDERED TO BE PAID 59
TO THIS STATE ON THE FIRST DAY OF THE TAXABLE YEAR. 60
Sec. 5747.98. (A) To provide a uniform procedure for 70
calculating the amount of tax due under section 5747.02 of the 71
Revised Code, a taxpayer shall claim any credits to which the 72
taxpayer is entitled in the following order: 74
(2)(1) The retirement income credit under division (B) of 76
section 5747.055 of the Revised Code; 77
(3)(2) The senior citizen credit under division (C) of 79
section 5747.05 of the Revised Code; 80
(4)(3) The lump sum distribution credit under division (D) 82
of section 5747.05 of the Revised Code; 83
(5)(4) The dependent care credit under section 5747.054 of 85
the Revised Code; 86
(6)(5) The lump sum retirement income credit under 88
division (C) of section 5747.055 of the Revised Code; 89
(7)(6) The lump sum retirement income credit under 91
division (D) of section 5747.055 of the Revised Code; 92
(8)(7) The lump sum retirement income credit under 94
division (E) of section 5747.055 of the Revised Code; 95
(9)(8) The credit for displaced workers who pay for job 97
training under section 5747.27 of the Revised Code; 98
3
(10)(9) The campaign contribution credit under section 100
5747.29 of the Revised Code; 103
(11)(10) The twenty-dollar personal exemption credit under 105
section 5747.022 of the Revised Code; 106
(12)(11) The joint filing credit under division (G) of 108
section 5747.05 of the Revised Code; 109
(13)(12) The nonresident credit under division (A) of 111
section 5747.05 of the Revised Code; 112
(14)(13) The credit for a resident's out-of-state income 114
under division (B) of section 5747.05 of the Revised Code; 115
(15)(14) The credit for employers that enter into 118
agreements with child day-care centers under section 5747.34 of
the Revised Code; 119
(16)(15) The credit for employers that reimburse employee 121
child day-care expenses under section 5747.36 of the Revised 123
Code;
(16) THE CREDIT FOR ADOPTION OF A MINOR CHILD UNDER 125
SECTION 5747.37 OF THE REVISED CODE; 126
(17) The credit for manufacturing investments under 128
section 5747.051 of the Revised Code; 129
(18) The credit for purchases of new manufacturing 131
machinery and equipment under section 5747.26 or section 5747.261 133
of the Revised Code;
(19) The second credit for purchases of new manufacturing 136
machinery and equipment under section 5747.31 of the Revised 137
Code;
(20) The enterprise zone credit under section 5709.66 of 139
the Revised Code; 140
(21) The credit for the eligible costs associated with a 142
voluntary action under section 5747.32 of the Revised Code; 144
(22) The credit for employers that establish on-site child 147
day-care centers under section 5747.35 of the Revised Code; 148
(23) The credit for purchases of qualifying grape 150
production property under section 5747.28 of the Revised Code; 151
4
(24) The export sales credit under section 5747.057 of the 154
Revised Code;
(25) The credit for research and development and 156
technology transfer investors under section 5747.33 of the 157
Revised Code;
(26) The enterprise zone credits under section 5709.65 of 160
the Revised Code;
(27) The refundable jobs creation credit under section 163
5747.058 of the Revised Code;
(28) The refundable credit for taxes paid by a qualifying 165
entity granted under section 5747.059 of the Revised Code; 166
(29) The refundable credits for taxes paid by a qualifying 169
pass-through entity granted under division (J) of section 5747.08 171
of the Revised Code.
(B) For any credit, except the refundable credits 173
enumerated in divisions (A)(27), (28), and (29) of this section 175
and the credit granted under division (I) of section 5747.08 of 177
the Revised Code, the amount of the credit for a taxable year 178
shall not exceed the tax due after allowing for any other credit 179
that precedes it in the order required under this section. Any 180
excess amount of a particular credit may be carried forward if 181
authorized under the section creating that credit. Nothing in 182
this chapter shall be construed to allow a taxpayer to claim, 183
directly or indirectly, a credit more than once for a taxable 184
year.
Section 2. That existing section 5747.98 of the Revised 186
Code is hereby repealed. 187
Section 3. Section 5747.37 of the Revised Code, as enacted 189
by this act, applies to adoptions of minor children under final 190
decrees or orders of adoption duly issued, or interlocutory 191
orders of adoption that become final, during taxable years 192
beginning on or after January 1, 1999. 193