H. B. No. 149 As Introduced

Representatives Calvert, Raga, McGregor, C. Evans, Latta, Aslanides, Hartnett, Chandler, Oelslager

A BILL

To amend sections 5733.98, 5747.08, and 5747.98 and 1
to enact sections 149.307, 5703.75, 5733.47, and 2
5747.76 of the Revised Code to authorize a 3
nonrefundable tax credit for rehabilitating a 4
historic building. 5

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That sections 5733.98, 5747.08, and 5747.98 be 6
amended and sections 149.307, 5703.75, 5733.47, and 5747.76 of the 7
Revised Code be enacted to read as follows: 8

       Sec. 149.307. (A) As used in this section: 9

       (1) "Certificate owner" means the owner or qualified lessee 10
of a historic building who is registered with the tax commissioner 11
under section 5703.75 of the Revised Code as the owner of a 12
rehabilitation tax credit certificate issued under this section. 13

       (2) "Historic building" means a building, including its 14
structural components, that is located in this state and that is 15
either: 16

       (a) Individually listed on the national register of historic 17
places under 16 U.S.C. 470a, located in a registered historic 18
district, and certified by the state historic preservation officer 19
as being of historic significance to the district; or 20

       (b) Individually listed as a historic landmark designated by 21
a local government certified under 16 U.S.C. 470a(c) and was 22
originally constructed prior to the year nineteen hundred. 23

       (3) "Owner" of a building means a person holding the fee 24
simple interest in the building. 25

       (4) "Qualified lessee" means a person occupying or otherwise 26
holding a historic building under a lease with a term ending not 27
earlier than five years after completion of the rehabilitation for 28
which a rehabilitation tax credit certificate may be issued under 29
this section, determined without regard to any renewal period of 30
the lease. 31

       (5) "Qualified rehabilitation expenditures" means 32
expenditures paid or incurred during the rehabilitation period by 33
an owner or qualified lessee of a historic building to 34
rehabilitate the building, including architectural or engineering 35
fees paid or incurred in connection with the rehabilitation and 36
expenses paid or incurred in the preparation of nomination forms 37
for listing the building on the national register of historic 38
places. "Qualified rehabilitation expenditures" does not include 39
the cost of acquiring a building or expenditures to expand or 40
enlarge a historic building. 41

       (6) "Registered historic district" means a historic district 42
listed in the national register of historic places under 16 U.S.C. 43
470a, a historic district designated by a local government 44
certified under 16 U.S.C. 470a(c), or a local historic district 45
certified under 36 C.F.R. 67.8 and 67.9. 46

       (7) "Rehabilitation" means the process of returning a 47
building or buildings to a state of utility, through repair or 48
alteration, making possible an efficient use while preserving 49
those portions and features of the building and its site and 50
environment that are significant to its historic, architectural, 51
and cultural values. 52

       (8) "Rehabilitation period" means one of the following: 53

       (a) If the rehabilitation initially was not planned to be 54
completed in stages, a period not to exceed twenty-four months 55
beginning with the month in which physical rehabilitation work 56
begins; 57

       (b) If the rehabilitation initially was planned to be 58
completed in stages, a period not to exceed sixty months beginning 59
with the month in which physical rehabilitation work begins. 60

       (9) "State historic preservation officer" or "officer" means 61
the state historic preservation officer appointed by the governor 62
under 16 U.S.C. 470a. 63

       (B) The owner or qualified lessee of a historic building may 64
apply to the state historic preservation officer for a 65
rehabilitation tax credit certificate. The form and manner of 66
filing such applications shall be prescribed by the state historic 67
preservation officer or the officer's designee. The officer or the 68
officer's designee shall accept and review such applications, and 69
shall approve issuance of a rehabilitation tax credit certificate 70
to an applicant if the officer or designee determines: 71

       (1) That the building that is the subject of the application 72
is a historic building; 73

       (2) That the rehabilitation satisfies standards prescribed by 74
the United States secretary of the interior under 16 U.S.C. 470, 75
et seq., as amended, and 36 C.F.R. 67.7 or a successor to that 76
section; and 77

       (3) That the expenditures to rehabilitate the building are 78
qualified rehabilitation expenditures and are reported by the 79
applicant to exceed: 80

       (a) In the case of a historic building not intended to be 81
held as income-producing property, five thousand dollars; or 82

       (b) In the case of a historic building intended to be held as 83
income-producing property, the greater of five thousand dollars or 84
the adjusted basis of the building as it would be determined under 85
subparagraph (c)(1)(C) of section 47 of the Internal Revenue Code. 86

       An applicant shall demonstrate to the satisfaction of the 87
state historic preservation officer or the officer's designee that 88
the rehabilitation satisfies the standards described in division 89
(B)(2) of this section before the applicant begins physical 90
rehabilitation work. A rehabilitation tax credit certificate for a 91
historic building shall not be issued before rehabilitation of the 92
building is completed. 93

       (C) Rehabilitation tax credit certificates shall be in a form 94
to be devised by the state historic preservation officer or the 95
officer's designee with the advice of the tax commissioner, shall 96
identify the applicant and the building that is the subject of the 97
application, shall show the amount of the qualified rehabilitation 98
expenditures the applicant claims to have paid or incurred, and 99
shall bear a unique registration number. Issuance of a certificate 100
represents a finding by the officer or the officer's designee of 101
the matters described in divisions (B)(1), (2), and (3) of this 102
section only; issuance of a certificate does not represent a 103
verification or certification by the officer or the officer's 104
designee of the amount of qualified rehabilitation expenditures 105
for which a tax credit may be claimed. The amount of qualified 106
rehabilitation expenditures for which a tax credit may be claimed 107
is subject to inspection and examination by the tax commissioner 108
or employees of the commissioner under section 5703.19 of the 109
Revised Code and any other applicable provision of law. Upon the 110
issuance of a certificate, the state historic preservation officer 111
or designee shall certify to the tax commissioner, in the form and 112
manner requested by the tax commissioner, the name of the 113
applicant, the dollar amount of qualified rehabilitation 114
expenditures shown on the certificate, the registration number of 115
the certificate, and any other information required by the tax 116
commissioner. 117

       (D) The state historic preservation officer may fix and 118
collect a reasonable fee payable at the time an application for a 119
rehabilitation tax credit certificate is filed. Proceeds from the 120
fee shall be used exclusively to defray the expenses incurred by 121
the historic preservation office in administering this section. 122

       Sec. 5703.75. For the purpose of sections 5733.47 and 5747.76 123
of the Revised Code, the tax commissioner shall compile and 124
maintain a register of rehabilitation tax credit certificates 125
issued under section 149.307 of the Revised Code. The register 126
shall record, according to the registration number of each 127
certificate issued, the name of the person to which the 128
certificate is issued and the dollar amount of qualified 129
rehabilitation expenditures the person claims to have paid or 130
incurred. 131

       Sec. 5733.47. (A) As used in this section, "certificate 132
owner" and "qualified rehabilitation expenditures" have the same 133
meanings as in section 149.307 of the Revised Code. 134

       (B) There is hereby allowed a nonrefundable credit against 135
the tax imposed under section 5733.06 of the Revised Code for a 136
taxpayer that is the certificate owner of a rehabilitation tax 137
credit certificate issued under section 149.305 of the Revised 138
Code. The credit equals twenty-five per cent of the dollar amount 139
of the taxpayer's qualified rehabilitation expenditures indicated 140
in the tax commissioner's register maintained under section 141
5703.75 of the Revised Code. The credit shall be claimed in the 142
order prescribed in section 5733.98 of the Revised Code. If the 143
amount of the credit exceeds the amount of tax otherwise due under 144
section 5733.06 of the Revised Code after deducting any other 145
credits preceding the credit allowed by this section in that 146
order, the excess may be carried forward and deducted from the tax 147
otherwise due for ten subsequent tax years following the tax year 148
for which the credit is claimed under this section. 149

       Credits allowed under this section may be claimed beginning 150
with tax year 2006. The total amount of credits claimed under this 151
section by a taxpayer for the same historic building shall not 152
exceed fifty thousand dollars. 153

       A taxpayer claiming a credit under this section shall retain 154
the rehabilitation tax credit certificate for four years following 155
the end of the last tax year to which the credit, including any 156
carried-forward amount, is applied, and shall make the certificate 157
available for inspection by the tax commissioner upon the 158
commissioner's request during that period. 159

       Sec. 5733.98. (A) To provide a uniform procedure for 160
calculating the amount of tax imposed by section 5733.06 of the 161
Revised Code that is due under this chapter, a taxpayer shall 162
claim any credits to which it is entitled in the following order, 163
except as otherwise provided in section 5733.058 of the Revised 164
Code: 165

       (1) The credit for taxes paid by a qualifying pass-through 166
entity allowed under section 5733.0611 of the Revised Code; 167

       (2) The credit allowed for financial institutions under 168
section 5733.45 of the Revised Code; 169

       (3) The credit for qualifying affiliated groups under section 170
5733.068 of the Revised Code; 171

       (4) The subsidiary corporation credit under section 5733.067 172
of the Revised Code; 173

       (5) The savings and loan assessment credit under section 174
5733.063 of the Revised Code; 175

       (6) The credit for recycling and litter prevention donations 176
under section 5733.064 of the Revised Code; 177

       (7) The credit for employers that enter into agreements with 178
child day-care centers under section 5733.36 of the Revised Code; 179

       (8) The credit for employers that reimburse employee child 180
care expenses under section 5733.38 of the Revised Code; 181

       (9) The credit for maintaining railroad active grade crossing 182
warning devices under section 5733.43 of the Revised Code; 183

       (10) The credit for purchases of lights and reflectors under 184
section 5733.44 of the Revised Code; 185

       (11) The job retention credit under division (B) of section 186
5733.0610 of the Revised Code; 187

       (12) The credit for losses on loans made under the Ohio 188
venture capital program under sections 150.01 to 150.10 of the 189
Revised Code if the taxpayer elected a nonrefundable credit under 190
section 150.07 of the Revised Code; 191

       (13) The credit for purchases of new manufacturing machinery 192
and equipment under section 5733.31 or section 5733.311 of the 193
Revised Code; 194

       (14) The second credit for purchases of new manufacturing 195
machinery and equipment under section 5733.33 of the Revised Code; 196

       (15) The job training credit under section 5733.42 of the 197
Revised Code; 198

       (16) The credit for qualified research expenses under section 199
5733.351 of the Revised Code; 200

       (17) The enterprise zone credit under section 5709.66 of the 201
Revised Code; 202

       (18) The credit for the eligible costs associated with a 203
voluntary action under section 5733.34 of the Revised Code; 204

       (19) The credit for employers that establish on-site child 205
day-care centers under section 5733.37 of the Revised Code; 206

       (20) The ethanol plant investment credit under section 207
5733.46 of the Revised Code; 208

       (21) The credit for purchases of qualifying grape production 209
property under section 5733.32 of the Revised Code; 210

       (22) The export sales credit under section 5733.069 of the 211
Revised Code; 212

       (23) The credit for research and development and technology 213
transfer investors under section 5733.35 of the Revised Code; 214

       (24) The enterprise zone credits under section 5709.65 of the 215
Revised Code; 216

       (25) The credit for using Ohio coal under section 5733.39 of 217
the Revised Code; 218

       (26) The research and development credit under section 219
5733.352 of the Revised Code; 220

       (27) The credit for small telephone companies under section 221
5733.57 of the Revised Code; 222

       (28) The credit for eligible nonrecurring 9-1-1 charges under 223
section 5733.55 of the Revised Code; 224

       (29) The credit for providing programs to aid the 225
communicatively impaired under section 5733.56 of the Revised 226
Code; 227

       (30) The credit for rehabilitating historic buildings under 228
section 5733.47 of the Revised Code; 229

       (31) The refundable jobs creation credit under division (A) 230
of section 5733.0610 of the Revised Code; 231

       ~~(31)~~(32) The refundable credit for tax withheld under 232
division (B)(2) of section 5747.062 of the Revised Code; 233

       ~~(32)~~(33) The credit for losses on loans made to the Ohio 234
venture capital program under sections 150.01 to 150.10 of the 235
Revised Code if the taxpayer elected a refundable credit under 236
section 150.07 of the Revised Code. 237

       (B) For any credit, except the credits enumerated in 238
divisions (A)~~(30),~~ (31), ~~and~~ (32), and (33) of this section, the 239
amount of the credit for a tax year shall not exceed the tax due 240
after allowing for any other credit that precedes it in the order 241
required under this section. Any excess amount of a particular 242
credit may be carried forward if authorized under the section 243
creating that credit. 244

       Sec. 5747.08. An annual return with respect to the tax 245
imposed by section 5747.02 of the Revised Code and each tax 246
imposed under Chapter 5748. of the Revised Code shall be made by 247
every taxpayer for any taxable year for which the taxpayer is 248
liable for the tax imposed by that section or under that chapter, 249
unless the total credits allowed under divisions (E), (F), and (G) 250
of section 5747.05 of the Revised Code for the year are equal to 251
or exceed the tax imposed by section 5747.02 of the Revised Code, 252
in which case no return shall be required unless the taxpayer is 253
liable for a tax imposed pursuant to Chapter 5748. of the Revised 254
Code. 255

       (A) If an individual is deceased, any return or notice 256
required of that individual under this chapter shall be made and 257
filed by that decedent's executor, administrator, or other person 258
charged with the property of that decedent. 259

       (B) If an individual is unable to make a return or notice 260
required by this chapter, the return or notice required of that 261
individual shall be made and filed by the individual's duly 262
authorized agent, guardian, conservator, fiduciary, or other 263
person charged with the care of the person or property of that 264
individual. 265

       (C) Returns or notices required of an estate or a trust shall 266
be made and filed by the fiduciary of the estate or trust. 267

       (D)(1)(a) Except as otherwise provided in division (D)(1)(b) 268
of this section, any pass-through entity may file a single return 269
on behalf of one or more of the entity's investors other than an 270
investor that is a person subject to the tax imposed under section 271
5733.06 of the Revised Code. The single return shall set forth the 272
name, address, and social security number or other identifying 273
number of each of those pass-through entity investors and shall 274
indicate the distributive share of each of those pass-through 275
entity investor's income taxable in this state in accordance with 276
sections 5747.20 to 5747.231 of the Revised Code. Such 277
pass-through entity investors for whom the pass-through entity 278
elects to file a single return are not entitled to the exemption 279
or credit provided for by sections 5747.02 and 5747.022 of the 280
Revised Code; shall calculate the tax before business credits at 281
the highest rate of tax set forth in section 5747.02 of the 282
Revised Code for the taxable year for which the return is filed; 283
and are entitled to only their distributive share of the business 284
credits as defined in division (D)(2) of this section. A single 285
check drawn by the pass-through entity shall accompany the return 286
in full payment of the tax due, as shown on the single return, for 287
such investors, other than investors who are persons subject to 288
the tax imposed under section 5733.06 of the Revised Code. 289

       (b)(i) A pass-through entity shall not include in such a 290
single return any investor that is a trust to the extent that any 291
direct or indirect current, future, or contingent beneficiary of 292
the trust is a person subject to the tax imposed under section 293
5733.06 of the Revised Code. 294

       (ii) A pass-through entity shall not include in such a single 295
return any investor that is itself a pass-through entity to the 296
extent that any direct or indirect investor in the second 297
pass-through entity is a person subject to the tax imposed under 298
section 5733.06 of the Revised Code. 299

       (c) Nothing in division (D) of this section precludes the tax 300
commissioner from requiring such investors to file the return and 301
make the payment of taxes and related interest, penalty, and 302
interest penalty required by this section or section 5747.02, 303
5747.09, or 5747.15 of the Revised Code. Nothing in division (D) 304
of this section shall be construed to provide to such an investor 305
or pass-through entity any additional deduction or credit, other 306
than the credit provided by division (J) of this section, solely 307
on account of the entity's filing a return in accordance with this 308
section. Such a pass-through entity also shall make the filing and 309
payment of estimated taxes on behalf of the pass-through entity 310
investors other than an investor that is a person subject to the 311
tax imposed under section 5733.06 of the Revised Code. 312

       (2) For the purposes of this section, "business credits" 313
means the credits listed in section 5747.98 of the Revised Code 314
excluding the following credits: 315

       (a) The retirement credit under division (B) of section 316
5747.055 of the Revised Code; 317

       (b) The senior citizen credit under division (C) of section 318
5747.05 of the Revised Code; 319

       (c) The lump sum distribution credit under division (D) of 320
section 5747.05 of the Revised Code; 321

       (d) The dependent care credit under section 5747.054 of the 322
Revised Code; 323

       (e) The lump sum retirement income credit under division (C) 324
of section 5747.055 of the Revised Code; 325

       (f) The lump sum retirement income credit under division (D) 326
of section 5747.055 of the Revised Code; 327

       (g) The lump sum retirement income credit under division (E) 328
of section 5747.055 of the Revised Code; 329

       (h) The credit for displaced workers who pay for job training 330
under section 5747.27 of the Revised Code; 331

       (i) The twenty-dollar personal exemption credit under section 332
5747.022 of the Revised Code; 333

       (j) The joint filing credit under division (G) of section 334
5747.05 of the Revised Code; 335

       (k) The nonresident credit under division (A) of section 336
5747.05 of the Revised Code; 337

       (l) The credit for a resident's out-of-state income under 338
division (B) of section 5747.05 of the Revised Code; 339

       (m) The credit for rehabilitating historic buildings under 340
section 5747.76 of the Revised Code, if the historic building is 341
not income-producing property. 342

       (3) The election provided for under division (D) of this 343
section applies only to the taxable year for which the election is 344
made by the pass-through entity. Unless the tax commissioner 345
provides otherwise, this election, once made, is binding and 346
irrevocable for the taxable year for which the election is made. 347
Nothing in this division shall be construed to provide for any 348
deduction or credit that would not be allowable if a nonresident 349
pass-through entity investor were to file an annual return. 350

       (4) If a pass-through entity makes the election provided for 351
under division (D) of this section, the pass-through entity shall 352
be liable for any additional taxes, interest, interest penalty, or 353
penalties imposed by this chapter if the commissioner finds that 354
the single return does not reflect the correct tax due by the 355
pass-through entity investors covered by that return. Nothing in 356
this division shall be construed to limit or alter the liability, 357
if any, imposed on pass-through entity investors for unpaid or 358
underpaid taxes, interest, interest penalty, or penalties as a 359
result of the pass-through entity's making the election provided 360
for under division (D) of this section. For the purposes of 361
division (D) of this section, "correct tax due" means the tax that 362
would have been paid by the pass-through entity had the single 363
return been filed in a manner reflecting the commissioner's 364
findings. Nothing in division (D) of this section shall be 365
construed to make or hold a pass-through entity liable for tax 366
attributable to a pass-through entity investor's income from a 367
source other than the pass-through entity electing to file the 368
single return. 369

       (E) If a husband and wife file a joint federal income tax 370
return for a taxable year, they shall file a joint return under 371
this section for that taxable year, and their liabilities are 372
joint and several, but, if the federal income tax liability of 373
either spouse is determined on a separate federal income tax 374
return, they shall file separate returns under this section. 375

       If either spouse is not required to file a federal income tax 376
return and either or both are required to file a return pursuant 377
to this chapter, they may elect to file separate or joint returns, 378
and, pursuant to that election, their liabilities are separate or 379
joint and several. If a husband and wife file separate returns 380
pursuant to this chapter, each must claim the taxpayer's own 381
exemption, but not both, as authorized under section 5747.02 of 382
the Revised Code on the taxpayer's own return. 383

       (F) Each return or notice required to be filed under this 384
section shall contain the signature of the taxpayer or the 385
taxpayer's duly authorized agent and of the person who prepared 386
the return for the taxpayer, and shall include the taxpayer's 387
social security number. Each return shall be verified by a 388
declaration under the penalties of perjury. The tax commissioner 389
shall prescribe the form that the signature and declaration shall 390
take. 391

       (G) Each return or notice required to be filed under this 392
section shall be made and filed as required by section 5747.04 of 393
the Revised Code, on or before the fifteenth day of April of each 394
year, on forms that the tax commissioner shall prescribe, together 395
with remittance made payable to the treasurer of state in the 396
combined amount of the state and all school district income taxes 397
shown to be due on the form, unless the combined amount shown to 398
be due is one dollar or less, in which case that amount need not 399
be remitted. 400

       Upon good cause shown, the commissioner may extend the period 401
for filing any notice or return required to be filed under this 402
section and may adopt rules relating to extensions. If the 403
extension results in an extension of time for the payment of any 404
state or school district income tax liability with respect to 405
which the return is filed, the taxpayer shall pay at the time the 406
tax liability is paid an amount of interest computed at the rate 407
per annum prescribed by section 5703.47 of the Revised Code on 408
that liability from the time that payment is due without extension 409
to the time of actual payment. Except as provided in section 410
5747.132 of the Revised Code, in addition to all other interest 411
charges and penalties, all taxes imposed under this chapter or 412
Chapter 5748. of the Revised Code and remaining unpaid after they 413
become due, except combined amounts due of one dollar or less, 414
bear interest at the rate per annum prescribed by section 5703.47 415
of the Revised Code until paid or until the day an assessment is 416
issued under section 5747.13 of the Revised Code, whichever occurs 417
first. 418

       If the commissioner considers it necessary in order to ensure 419
the payment of the tax imposed by section 5747.02 of the Revised 420
Code or any tax imposed under Chapter 5748. of the Revised Code, 421
the commissioner may require returns and payments to be made 422
otherwise than as provided in this section. 423

       (H) If any report, claim, statement, or other document 424
required to be filed, or any payment required to be made, within a 425
prescribed period or on or before a prescribed date under this 426
chapter is delivered after that period or that date by United 427
States mail to the agency, officer, or office with which the 428
report, claim, statement, or other document is required to be 429
filed, or to which the payment is required to be made, the date of 430
the postmark stamped on the cover in which the report, claim, 431
statement, or other document, or payment is mailed shall be deemed 432
to be the date of delivery or the date of payment. 433

       If a payment is required to be made by electronic funds 434
transfer pursuant to section 5747.072 of the Revised Code, the 435
payment is considered to be made when the payment is received by 436
the treasurer of state or credited to an account designated by the 437
treasurer of state for the receipt of tax payments. 438

       "The date of the postmark" means, in the event there is more 439
than one date on the cover, the earliest date imprinted on the 440
cover by the United States postal service. 441

       (I) The amounts withheld by the employer pursuant to section 442
5747.06 of the Revised Code shall be allowed to the recipient of 443
the compensation as credits against payment of the appropriate 444
taxes imposed on the recipient by section 5747.02 and under 445
Chapter 5748. of the Revised Code. 446

       (J) If, in accordance with division (D) of this section, a 447
pass-through entity elects to file a single return and if any 448
investor is required to file the return and make the payment of 449
taxes required by this chapter on account of the investor's other 450
income that is not included in a single return filed by a 451
pass-through entity, the investor is entitled to a refundable 452
credit equal to the investor's proportionate share of the tax paid 453
by the pass-through entity on behalf of the investor. The investor 454
shall claim the credit for the investor's taxable year in which or 455
with which ends the taxable year of the pass-through entity. 456
Nothing in this chapter shall be construed to allow any credit 457
provided in this chapter to be claimed more than once. For the 458
purposes of computing any interest, penalty, or interest penalty, 459
the investor shall be deemed to have paid the refundable credit 460
provided by this division on the day that the pass-through entity 461
paid the estimated tax or the tax giving rise to the credit. 462

       Sec. 5747.76. (A) As used in this section, "certificate 463
owner" and "qualified rehabilitation expenditures" have the same 464
meanings as in section 149.307 of the Revised Code. 465

       (B) There is hereby allowed a nonrefundable credit against 466
the tax imposed under section 5747.02 of the Revised Code for a 467
taxpayer that is the certificate owner of a rehabilitation tax 468
credit certificate issued under section 149.307 of the Revised 469
Code. The credit equals twenty-five per cent of the dollar amount 470
of the taxpayer's qualified rehabilitation expenditures indicated 471
in the tax commissioner's register maintained under section 472
5703.75 of the Revised Code. The credit shall be claimed in the 473
order prescribed in section 5747.98 of the Revised Code. If the 474
amount of the credit exceeds the amount of tax otherwise due under 475
section 5747.02 of the Revised Code after deducting any other 476
credits preceding the credit allowed by this section in that 477
order, the excess may be carried forward and deducted from the tax 478
otherwise due for ten subsequent taxable years following the tax 479
year for which the credit is claimed under this section. 480

       Nothing in this section limits or disallows pass-through 481
treatment of the credit if the certificate owner is a pass-through 482
entity. 483

       The credit may be claimed for taxable years beginning on or 484
after January 1, 2006. The total amount of credits claimed under 485
this section by a taxpayer for the same historic building for all 486
taxable years shall not exceed fifty thousand dollars. 487

       A taxpayer claiming a credit under this section shall retain 488
the rehabilitation tax credit certificate for four years following 489
the end of the last taxable year to which the credit, including 490
any carried-forward amount, is applied, and shall make the 491
certificate available for inspection by the tax commissioner upon 492
the commissioner's request during that period. 493

       Sec. 5747.98. (A) To provide a uniform procedure for 494
calculating the amount of tax due under section 5747.02 of the 495
Revised Code, a taxpayer shall claim any credits to which the 496
taxpayer is entitled in the following order: 497

       (1) The retirement income credit under division (B) of 498
section 5747.055 of the Revised Code; 499

       (2) The senior citizen credit under division (C) of section 500
5747.05 of the Revised Code; 501

       (3) The lump sum distribution credit under division (D) of 502
section 5747.05 of the Revised Code; 503

       (4) The dependent care credit under section 5747.054 of the 504
Revised Code; 505

       (5) The lump sum retirement income credit under division (C) 506
of section 5747.055 of the Revised Code; 507

       (6) The lump sum retirement income credit under division (D) 508
of section 5747.055 of the Revised Code; 509

       (7) The lump sum retirement income credit under division (E) 510
of section 5747.055 of the Revised Code; 511

       (8) The credit for displaced workers who pay for job training 512
under section 5747.27 of the Revised Code; 513

       (9) The campaign contribution credit under section 5747.29 of 514
the Revised Code; 515

       (10) The twenty-dollar personal exemption credit under 516
section 5747.022 of the Revised Code; 517

       (11) The joint filing credit under division (G) of section 518
5747.05 of the Revised Code; 519

       (12) The nonresident credit under division (A) of section 520
5747.05 of the Revised Code; 521

       (13) The credit for a resident's out-of-state income under 522
division (B) of section 5747.05 of the Revised Code; 523

       (14) The credit for employers that enter into agreements with 524
child day-care centers under section 5747.34 of the Revised Code; 525

       (15) The credit for employers that reimburse employee child 526
care expenses under section 5747.36 of the Revised Code; 527

       (16) The credit for adoption of a minor child under section 528
5747.37 of the Revised Code; 529

       (17) The credit for purchases of lights and reflectors under 530
section 5747.38 of the Revised Code; 531

       (18) The job retention credit under division (B) of section 532
5747.058 of the Revised Code; 533

       (19) The credit for losses on loans made under the Ohio 534
venture capital program under sections 150.01 to 150.10 of the 535
Revised Code if the taxpayer elected a nonrefundable credit under 536
section 150.07 of the Revised Code; 537

       (20) The credit for purchases of new manufacturing machinery 538
and equipment under section 5747.26 or section 5747.261 of the 539
Revised Code; 540

       (21) The second credit for purchases of new manufacturing 541
machinery and equipment and the credit for using Ohio coal under 542
section 5747.31 of the Revised Code; 543

       (22) The job training credit under section 5747.39 of the 544
Revised Code; 545

       (23) The enterprise zone credit under section 5709.66 of the 546
Revised Code; 547

       (24) The credit for the eligible costs associated with a 548
voluntary action under section 5747.32 of the Revised Code; 549

       (25) The credit for employers that establish on-site child 550
day-care centers under section 5747.35 of the Revised Code; 551

       (26) The ethanol plant investment credit under section 552
5747.75 of the Revised Code; 553

       (27) The credit for purchases of qualifying grape production 554
property under section 5747.28 of the Revised Code; 555

       (28) The export sales credit under section 5747.057 of the 556
Revised Code; 557

       (29) The credit for research and development and technology 558
transfer investors under section 5747.33 of the Revised Code; 559

       (30) The enterprise zone credits under section 5709.65 of the 560
Revised Code; 561

       (31) The research and development credit under section 562
5747.331 of the Revised Code; 563

       (32) The credit for rehabilitating historic buildings under 564
section 5747.76 of the Revised Code; 565

       (33) The refundable jobs creation credit under division (A) 566
of section 5747.058 of the Revised Code; 567

       ~~(33)~~(34) The refundable credit for taxes paid by a qualifying 568
entity granted under section 5747.059 of the Revised Code; 569

       ~~(34)~~(35) The refundable credits for taxes paid by a 570
qualifying pass-through entity granted under division (J) of 571
section 5747.08 of the Revised Code; 572

       ~~(35)~~(36) The refundable credit for tax withheld under 573
division (B)(1) of section 5747.062 of the Revised Code; 574

       ~~(36)~~(37) The credit for losses on loans made to the Ohio 575
venture capital program under sections 150.01 to 150.10 of the 576
Revised Code if the taxpayer elected a refundable credit under 577
section 150.07 of the Revised Code. 578

       (B) For any credit, except the credits enumerated in 579
divisions (A)~~(32)~~(33) to ~~(36)~~(37) of this section and the credit 580
granted under division (I) of section 5747.08 of the Revised Code, 581
the amount of the credit for a taxable year shall not exceed the 582
tax due after allowing for any other credit that precedes it in 583
the order required under this section. Any excess amount of a 584
particular credit may be carried forward if authorized under the 585
section creating that credit. Nothing in this chapter shall be 586
construed to allow a taxpayer to claim, directly or indirectly, a 587
credit more than once for a taxable year. 588

       Section 2. That existing sections 5733.98, 5747.08, and 589
5747.98 of the Revised Code are hereby repealed. 590

       Section 3. Applications to the State Historic Preservation 591
Officer for a rehabilitation tax credit certificate under section 592
149.305 of the Revised Code may be filed on or after the first day 593
of the sixth month after the month in which this act takes effect. 594

Section 1. That sections 5733.98, 5747.08, and 5747.98 be	6
amended and sections 149.307, 5703.75, 5733.47, and 5747.76 of the	7
Revised Code be enacted to read as follows:	8

(1) "Certificate owner" means the owner or qualified lessee	10
of a historic building who is registered with the tax commissioner	11
under section 5703.75 of the Revised Code as the owner of a	12
rehabilitation tax credit certificate issued under this section.	13

(2) "Historic building" means a building, including its	14
structural components, that is located in this state and that is	15
either:	16

(a) Individually listed on the national register of historic	17
places under 16 U.S.C. 470a, located in a registered historic	18
district, and certified by the state historic preservation officer	19
as being of historic significance to the district; or	20

(b) Individually listed as a historic landmark designated by	21
a local government certified under 16 U.S.C. 470a(c) and was	22
originally constructed prior to the year nineteen hundred.	23

(3) "Owner" of a building means a person holding the fee	24
simple interest in the building.	25

(4) "Qualified lessee" means a person occupying or otherwise	26
holding a historic building under a lease with a term ending not	27
earlier than five years after completion of the rehabilitation for	28
which a rehabilitation tax credit certificate may be issued under	29
this section, determined without regard to any renewal period of	30
the lease.	31

(5) "Qualified rehabilitation expenditures" means	32
expenditures paid or incurred during the rehabilitation period by	33
an owner or qualified lessee of a historic building to	34
rehabilitate the building, including architectural or engineering	35
fees paid or incurred in connection with the rehabilitation and	36
expenses paid or incurred in the preparation of nomination forms	37
for listing the building on the national register of historic	38
places. "Qualified rehabilitation expenditures" does not include	39
the cost of acquiring a building or expenditures to expand or	40
enlarge a historic building.	41

(6) "Registered historic district" means a historic district	42
listed in the national register of historic places under 16 U.S.C.	43
470a, a historic district designated by a local government	44
certified under 16 U.S.C. 470a(c), or a local historic district	45
certified under 36 C.F.R. 67.8 and 67.9.	46

(7) "Rehabilitation" means the process of returning a	47
building or buildings to a state of utility, through repair or	48
alteration, making possible an efficient use while preserving	49
those portions and features of the building and its site and	50
environment that are significant to its historic, architectural,	51
and cultural values.	52

(a) If the rehabilitation initially was not planned to be	54
completed in stages, a period not to exceed twenty-four months	55
beginning with the month in which physical rehabilitation work	56
begins;	57

(b) If the rehabilitation initially was planned to be	58
completed in stages, a period not to exceed sixty months beginning	59
with the month in which physical rehabilitation work begins.	60

(9) "State historic preservation officer" or "officer" means	61
the state historic preservation officer appointed by the governor	62
under 16 U.S.C. 470a.	63

(B) The owner or qualified lessee of a historic building may	64
apply to the state historic preservation officer for a	65
rehabilitation tax credit certificate. The form and manner of	66
filing such applications shall be prescribed by the state historic	67
preservation officer or the officer's designee. The officer or the	68
officer's designee shall accept and review such applications, and	69
shall approve issuance of a rehabilitation tax credit certificate	70
to an applicant if the officer or designee determines:	71

(1) That the building that is the subject of the application	72
is a historic building;	73

(2) That the rehabilitation satisfies standards prescribed by	74
the United States secretary of the interior under 16 U.S.C. 470,	75
et seq., as amended, and 36 C.F.R. 67.7 or a successor to that	76
section; and	77

(3) That the expenditures to rehabilitate the building are	78
qualified rehabilitation expenditures and are reported by the	79
applicant to exceed:	80

(a) In the case of a historic building not intended to be	81
held as income-producing property, five thousand dollars; or	82

(b) In the case of a historic building intended to be held as	83
income-producing property, the greater of five thousand dollars or	84
the adjusted basis of the building as it would be determined under	85
subparagraph (c)(1)(C) of section 47 of the Internal Revenue Code.	86

An applicant shall demonstrate to the satisfaction of the	87
state historic preservation officer or the officer's designee that	88
the rehabilitation satisfies the standards described in division	89
(B)(2) of this section before the applicant begins physical	90
rehabilitation work. A rehabilitation tax credit certificate for a	91
historic building shall not be issued before rehabilitation of the	92
building is completed.	93

(C) Rehabilitation tax credit certificates shall be in a form	94
to be devised by the state historic preservation officer or the	95
officer's designee with the advice of the tax commissioner, shall	96
identify the applicant and the building that is the subject of the	97
application, shall show the amount of the qualified rehabilitation	98
expenditures the applicant claims to have paid or incurred, and	99
shall bear a unique registration number. Issuance of a certificate	100
represents a finding by the officer or the officer's designee of	101
the matters described in divisions (B)(1), (2), and (3) of this	102
section only; issuance of a certificate does not represent a	103
verification or certification by the officer or the officer's	104
designee of the amount of qualified rehabilitation expenditures	105
for which a tax credit may be claimed. The amount of qualified	106
rehabilitation expenditures for which a tax credit may be claimed	107
is subject to inspection and examination by the tax commissioner	108
or employees of the commissioner under section 5703.19 of the	109
Revised Code and any other applicable provision of law. Upon the	110
issuance of a certificate, the state historic preservation officer	111
or designee shall certify to the tax commissioner, in the form and	112
manner requested by the tax commissioner, the name of the	113
applicant, the dollar amount of qualified rehabilitation	114
expenditures shown on the certificate, the registration number of	115
the certificate, and any other information required by the tax	116
commissioner.	117

(D) The state historic preservation officer may fix and	118
collect a reasonable fee payable at the time an application for a	119
rehabilitation tax credit certificate is filed. Proceeds from the	120
fee shall be used exclusively to defray the expenses incurred by	121
the historic preservation office in administering this section.	122

Sec. 5703.75. For the purpose of sections 5733.47 and 5747.76	123
of the Revised Code, the tax commissioner shall compile and	124
maintain a register of rehabilitation tax credit certificates	125
issued under section 149.307 of the Revised Code. The register	126
shall record, according to the registration number of each	127
certificate issued, the name of the person to which the	128
certificate is issued and the dollar amount of qualified	129
rehabilitation expenditures the person claims to have paid or	130
incurred.	131

Sec. 5733.47. (A) As used in this section, "certificate	132
owner" and "qualified rehabilitation expenditures" have the same	133
meanings as in section 149.307 of the Revised Code.	134

(B) There is hereby allowed a nonrefundable credit against	135
the tax imposed under section 5733.06 of the Revised Code for a	136
taxpayer that is the certificate owner of a rehabilitation tax	137
credit certificate issued under section 149.305 of the Revised	138
Code. The credit equals twenty-five per cent of the dollar amount	139
of the taxpayer's qualified rehabilitation expenditures indicated	140
in the tax commissioner's register maintained under section	141
5703.75 of the Revised Code. The credit shall be claimed in the	142
order prescribed in section 5733.98 of the Revised Code. If the	143
amount of the credit exceeds the amount of tax otherwise due under	144
section 5733.06 of the Revised Code after deducting any other	145
credits preceding the credit allowed by this section in that	146
order, the excess may be carried forward and deducted from the tax	147
otherwise due for ten subsequent tax years following the tax year	148
for which the credit is claimed under this section.	149

Credits allowed under this section may be claimed beginning	150
with tax year 2006. The total amount of credits claimed under this	151
section by a taxpayer for the same historic building shall not	152
exceed fifty thousand dollars.	153

A taxpayer claiming a credit under this section shall retain	154
the rehabilitation tax credit certificate for four years following	155
the end of the last tax year to which the credit, including any	156
carried-forward amount, is applied, and shall make the certificate	157
available for inspection by the tax commissioner upon the	158
commissioner's request during that period.	159

Sec. 5733.98. (A) To provide a uniform procedure for	160
calculating the amount of tax imposed by section 5733.06 of the	161
Revised Code that is due under this chapter, a taxpayer shall	162
claim any credits to which it is entitled in the following order,	163
except as otherwise provided in section 5733.058 of the Revised	164
Code:	165

(1) The credit for taxes paid by a qualifying pass-through	166
entity allowed under section 5733.0611 of the Revised Code;	167

(2) The credit allowed for financial institutions under	168
section 5733.45 of the Revised Code;	169