As Passed by the House

126th General Assembly Regular Session 2005-2006

Sub. H. B. No. 245

Representatives Reinhard, Aslanides, Barrett, Buehrer, Core, Faber, Hagan, Hughes, Kearns, Latta, McGregor, Schlichter, Seaver, Seitz, Setzer, Ujvagi, Wagner, Webster, Widowfield, Willamowski, Fende, Perry, Key, Law, Sayre, Bubp, Uecker, Hoops, Blessing, Boccieri, Book, Calvert, Carano, Carmichael, Cassell, Chandler, Collier, Combs, Daniels, DeBose, DeGeeter, Distel, Dolan, Domenick, Evans, C., Evans, D., Flowers, Garrison, Gibbs, Gilb, Hartnett, Harwood, Healy, Martin, Mason, Miller, Oelslager, Otterman, Patton, S., Patton, T., Peterson, Raussen, Reidelbach, Schaffer, Schneider, Skindell, Smith, G., Stewart, D., Stewart, J., Taylor, Trakas, Wagoner, White, Widener, Williams, Wolpert, Yates, Yuko 

---

A BILL

To amend sections 125.831, 5733.98, and 5747.98 and

1

to enact sections 122.86, 125.834, 125.835,

2

125.836, 901.14, 5733.47, 5733.48, 5735.40,

3

5747.76, and 5747.77 of the Revised Code to

4

establish certain requirements related to the use

5

and taxing of alternative fuels and to establish

6

an idle reduction retrofit revolving loan program.

7

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

Section 1. That sections 125.831, 5733.98, and 5747.98 be	8
amended and sections 122.86, 125.834, 125.835, 125.836, 901.14,	9
5733.47, 5733.48, 5735.40, 5747.76, and 5747.77 of the Revised	10
Code be enacted to read as follows:	11

Sec. 122.86.  (A) For purposes of conserving fuel and	12
reducing air emissions, noise, and engine wear, the department of	13
development shall administer an idle reduction retrofit revolving	14
loan program to assist local governments in reducing the amount of	15
time that heavy-duty trucks or other vehicles idle their engines.	16

(B) A loan made under the idle reduction retrofit revolving	17
loan program shall carry interest and may carry a repayment term	18
of up to five years. Loans shall be made from moneys in the idle	19
reduction retrofit revolving loan fund created in division (D) of	20
this section.	21

(C) The director of development shall adopt rules in	22
accordance with Chapter 119. of the Revised Code for the	23
administration of the idle reduction retrofit revolving loan	24
program. The rules shall establish, but not be limited to,	25
application requirements and procedures, loan eligibility	26
requirements, requirements for minimum contributions from local	27
governments towards projects that are the subjects of loans under	28
this section, and requirements and procedures for loan repayments.	29
The director shall consult with the director of environmental	30
protection in adopting rules under this division.	31

(D) There is hereby created in the state treasury the idle	32
reduction retrofit revolving loan fund consisting of money	33
appropriated to it by the general assembly and any grants, gifts,	34
or contributions of money made for deposit to the credit of the	35
fund. Money in the fund shall be used for the purpose of making	36
loans under this section and administering the idle reduction	37
retrofit revolving loan program.	38

Sec. 125.831. As used in sections 125.831 to 125.833125.834	39
of the Revised Code:	40

(A) "Alternative fuel" means any of the following fuels used	41
in a motor vehicle:	42

(1) E85 blend fuel;

43

(2) Blended biodiesel;

44

(3) Natural gas;

45

(4) Liquefied petroleum gas;

46

(5) Hydrogen;

47

(6) Any power source, including electricity;

48

(7) Any fuel not described in divisions (A)(1) to (6) of this	49
section that the United States department of energy determines, by	50
final rule, to be substantially not petroleum, and that would	51
yield substantial energy security and environmental benefits.	52

(B) "Biodiesel" means a mono-alkyl ester combustible liquid	53
fuel that is derived from vegetable oils or animal fats, or any	54
combination of those reagents, and that meets the American society	55
for testing and materials specification D6751-03a for biodiesel	56
fuel (B100) blend stock distillate fuels.	57

(C) "Blended biodiesel" means a blend of biodiesel with	58
petroleum based diesel fuel in which the resultant product	59
contains not less than twenty per cent biodiesel.	60

(D) "Diesel fuel" means any liquid fuel that is capable of	61
use in discrete form or as a blend component in the operation of	62
engines of the diesel type.	63

(E) "E85 blend fuel" means fuel containing eighty-five per	64
cent or more ethanol as defined in section 5733.46 of the Revised	65
Code or containing any other percentage of not less than seventy	66
per cent ethanol if the United States department of energy	67
determines, by rule, that the lower percentage is necessary to	68
provide for the requirements of cold start, safety, or vehicle	69
functions.	70

(F) "Law enforcement officer" means an officer, agent, or	71
employee of a state agency upon whom, by statute, a duty to	72
conserve the peace or to enforce all or certain laws is imposed	73
and the authority to arrest violators is conferred, within the	74
limits of that statutory duty and authority.	75

(B)(G)(1) "Motor vehicle" means any automobile, car minivan,	76
passenger van, sport utility vehicle, or pickup truck with a gross	77
vehicle weight of under twelve thousand pounds.	78

(2) "Motor vehicle" does not include any vehicle described in	79
division (B)(G)(1) of this section that is used by a law	80
enforcement officer and law enforcement agency or any vehicle that	81
is so described and that is equipped with specialized equipment	82
that is not normally found in such a vehicle and that is used to	83
carry out a state agency's specific and specialized duties and	84
responsibilities.	85

(C)(H) "Specialized equipment" does not include standard	86
mobile radios with no capabilities other than voice communication,	87
exterior and interior lights, or roof-mounted caution lights.	88

(D)(I) "State agency" means every organized body, office, or	89
agency established by the laws of the state for the exercise of	90
any function of state government, other than any state-supported	91
institution of higher education, the office of the governor,	92
lieutenant governor, auditor of state, treasurer of state,	93
secretary of state, or attorney general, the general assembly or	94
any legislative agency, or the courts or any judicial agency.	95

Sec. 125.834.  (A) The department of administrative services	96
shall ensure that at least ninety per cent of the total number of	97
new motor vehicles acquired by the state for use by state agencies	98
under section 125.832 of the Revised Code during the two-year	99
period beginning July 1, 2006, and ending June 30, 2008, and	100
during each two-year period beginning on the first day of July	101
thereafter, are capable of using alternative fuels. A state agency	102
that is acquiring new motor vehicles under division (G)(1) of	103
section 125.832 of the Revised Code shall report annually, in a	104
manner prescribed by the director of administrative services, the	105
number of new motor vehicles acquired by the state agency and the	106
number of those motor vehicles that are capable of using	107
alternative fuel.	108

(B)(1) If the department of administrative services	109
determines that the percentage of alternatively fueled motor	110
vehicles specified in division (A) of this section is exceeded	111
during any two-year period described in that division, the excess	112
purchases or leases shall be credited to any future two-year	113
period that the department designates.	114

(2) If the acquisition of alternatively fueled motor vehicles	115
fails to satisfy the percentage specified in division (A) of this	116
section during any two-year period described in that division, the	117
department shall not purchase or lease, or authorize the purchase	118
or lease by a state agency of, any motor vehicles that are	119
incapable of using alternative fuels during any subsequent	120
two-year period until the department satisfies that percentage	121
deficiency unless one or both of the following apply:	122

(a) The department or state agency is unable to acquire or	123
operate motor vehicles within the cost limitations described in	124
division (D) of this section.	125

(b) The use of alternative fuels would not meet the energy	126
conservation and exhaust emissions criteria described in division	127
(D) of this section.	128

(C) Between the effective date of this section and June 30,	129
2006, at least thirty per cent of the fuel purchased for use in	130
fleets of state-owned motor vehicles shall be alternative fuels.	131
Between July 1, 2006, and June 30, 2007, at least fifty per cent	132
of such fuel purchased shall be alternative fuels. Between July 1,	133
2007, and June 30, 2008, at least seventy-five per cent of such	134
fuel purchased shall be alternative fuels. Beginning July 1, 2008,	135
and each fiscal year thereafter, at least ninety per cent of such	136
fuel purchased between the first day of July and the thirtieth day	137
of June of the following year shall be alternative fuels.	138

(D) The director of administrative services shall adopt and	139
may amend, in accordance with Chapter 119. of the Revised Code,	140
rules that establish cost limitations for the acquisition and	141
operation of, and energy conservation and exhaust emissions	142
criteria for, motor vehicles capable of using alternative fuels.	143

Sec. 125.835.  (A) As used in this section:

144

(1) "Biodiesel" has the same meaning as in section 125.831 of	145
the Revised Code.	146

(2) "Ethanol" has the same meaning as in section 5733.46 of	147
the Revised Code.	148

(3) "Law enforcement officer" has the same meaning as in	149
section 125.831 of the Revised Code.	150

(4) "State agency" has the same meaning as in section 125.831	151
of the Revised Code, but includes any state-supported institution	152
of higher education.	153

(5) "Vehicle" means any automobile, automobile truck,	154
tractor, or self-propelled vehicle not operated or driven on fixed	155
rails or track, but does not include a vehicle operated by a law	156
enforcement officer.	157

(B) In awarding any contract that requires the procurement of	158
vehicles, a state agency shall give preference to an otherwise	159
qualified bidder who will fulfill the contract through the use of	160
vehicles that use as a fuel component ethanol produced from Ohio	161
corn or biodiesel produced from Ohio soybeans or Ohio corn.	162

Sec. 125.836.  (A) As used in this section:

163

(1) "Biodiesel" and "diesel fuel" have the same meanings as	164
in section 125.831 of the Revised Code.	165

(2) "Credit" means a credit generated by the acquisition of	166
alternative fueled vehicles in accordance with the "Energy Policy	167
Act of 1992," 106 Stat. 2897, 42 U.S.C. 13257.	168

(3) "Incremental cost" means the difference in cost between	169
blended biodiesel and conventional petroleum-based diesel fuel at	170
the time the blended biodiesel is purchased.	171

(B) The department of administrative services shall establish	172
and administer a credit banking and selling program. The	173
department may sell or trade credits in accordance with procedures	174
established pursuant to the "Energy Policy Act of 1992," 106 Stat.	175
2897, 42 U.S.C. 13258.	176

(C) There is hereby created in the state treasury the	177
"biodiesel revolving fund," to which shall be credited moneys	178
received from the sale of credits under this section, any moneys	179
appropriated to the fund by the general assembly, and any other	180
moneys obtained or accepted by the department for crediting to the	181
fund. Moneys credited to the fund shall be used to pay for the	182
incremental cost of biodiesel for use in vehicles owned or leased	183
by the state that use diesel fuel.	184

Sec. 901.14. (A) As used in this section:

185

(1) "Alternative fuel" means blended biodiesel or E85 blend	186
fuel.	187

(2) "Biodiesel," "blended biodiesel," and "E85 blend fuel"	188
have the same meanings as in section 125.831 of the Revised Code.	189

(3) "Diesel fuel" and "gasoline" have the same meanings as in	190
section 5735.01 of the Revised Code.	191

(4) "Ethanol" has the same meaning as in section 5733.46 of	192
the Revised Code.	193

(5) "Incremental cost" means either of the following:

194

(a) The difference in cost between E85 blend fuel and	195
gasoline containing ten per cent or less ethanol at the time that	196
the E85 blend fuel is purchased;	197

(b) The difference in cost between blended biodiesel and	198
diesel fuel containing two per cent or less biodiesel at the time	199
that the blended biodiesel is purchased.	200

(B) For the purpose of improving the air quality in this	201
state, the director of agriculture shall establish an alternative	202
fuel transportation grant program under which the director may	203
make grants to businesses, nonprofit organizations, public school	204
systems, or local governments for the purchase and installation of	205
alternative fuel refueling facilities, terminals, and distribution	206
facilities and for the purchase and use of alternative fuel.	207

(C) The director shall adopt rules in accordance with Chapter	208
119. of the Revised Code that are necessary for the administration	209
of the alternative fuel transportation grant program. The rules	210
shall establish at least all of the following:	211

(1) An application form and procedures governing the	212
application process for a grant under the program;	213

(2) Procedures for prioritizing the award of grants under the	214
program. The procedures shall give preference to all of the	215
following:	216

(a) Publicly accessible refueling facilities;

217

(b) Entities seeking grants that have secured funding from	218
other sources, including, but not limited to, private or federal	219
grants;	220

(c) Entities that have presented compelling evidence of	221
demand in the market in which the facilities or terminals will be	222
located;	223

(d) Entities that have committed to utilizing purchased or	224
installed facilities or terminals for the greatest number of	225
years;	226

(e) Entities that will be purchasing or installing facilities	227
or terminals for both blended biodiesel and E85 blend fuel.	228

(3) A requirement that the maximum grant for the purchase and	229
installation of an alternative fuel refueling facility, terminal,	230
or distribution facility be eighty per cent of the cost of the	231
facility or terminal;	232

(4) A requirement that the maximum grant for the purchase of	233
alternative fuel be seventy-five per cent of the incremental cost	234
of the fuel;	235

(5) Any other criteria, procedures, or guidelines that the	236
director determines are necessary to administer the program.	237

(D) There is hereby created in the state treasury the	238
alternative fuel transportation grant fund. The fund shall consist	239
of money that is appropriated to it by the general assembly. Money	240
in the fund shall be used to make grants under the alternative	241
fuel transportation grant program and by the director in the	242
administration of that program.	243

Sec. 5733.47.  (A) As used in this section:

244

(1) "Ethanol" has the same meaning as in section 5733.46 of	245
the Revised Code.	246

(2) "Ethanol-blended gasoline" means gasoline containing at	247
least ten per cent ethanol.	248

(3) "Gasoline" has the same meaning as in section 5735.01 of	249
the Revised Code.	250

(4) "Retail dealer" means a taxpayer that sells or	251
distributes gasoline at a retail service station located in this	252
state.	253

(5) "Retail service station" means each location from which	254
gasoline is sold or offered for sale at retail to the general	255
public and is dispensed from a metered pump.	256

(B) There is hereby allowed a nonrefundable credit against	257
the tax imposed by section 5733.06 of the Revised Code for a	258
retail dealer that owns or operates a retail service station at	259
which more than sixty per cent of the total gallons of gasoline	260
sold and dispensed through one or more metered pumps by the	261
taxpayer in the tax year is ethanol-blended gasoline. The amount	262
of the credit for each eligible retail service station is two and	263
one-half cents multiplied by the total number of gallons of	264
ethanol-blended gasoline sold and dispensed through all metered	265
pumps located at that retail service station during the tax year	266
in excess of sixty per cent of all gasoline sold and dispensed	267
through metered pumps at that retail service station during the	268
tax year. The credit shall be calculated separately for each	269
retail service station site owned or operated by that retail	270
dealer.	271

(C) The retail dealer shall claim the credit in the order	272
required by section 5733.98 of the Revised Code. The tax	273
commissioner may require that the retail dealer furnish	274
information as is necessary to support a claim for a tax credit	275
under this section, and no credit shall be allowed unless the	276
information is provided.	277

(D) The credit allowed under this section may be claimed	278
beginning with tax year 2006.	279

Sec. 5733.48. (A) As used in this section:

280

(1) "E85 blend fuel" has the same meaning as in section	281
125.831 of the Revised Code.	282

(2) "Gasoline" and "motor fuel" have the same meanings as in	283
section 5735.01 of the Revised Code.	284

(3) "Motor fuel retail dealer" means a taxpayer that sells or	285
distributes motor fuel at a retail service station located in this	286
state and that possesses an unrevoked retail dealer's license	287
issued by the tax commissioner under section 5735.022 of the	288
Revised Code.	289

(4) "Retail service station" means a location from which	290
motor fuel is sold to the general public and is dispensed or	291
pumped directly into motor vehicle fuel tanks for consumption.	292

(B) For tax years 2006, 2007, 2008, and 2009, there is hereby	293
allowed a nonrefundable credit against the tax imposed by section	294
5733.06 of the Revised Code for a motor fuel retail dealer that	295
installs or retrofits at a retail service station located in this	296
state one or more pumps for the purpose of dispensing E85 blend	297
fuel for sale to the general public. The amount of the credit	298
equals the net cost of installing or retrofitting the pump or ten	299
thousand dollars, whichever is less. The credit shall be claimed	300
in the tax year immediately following the calendar year in which a	301
pump is installed or retrofitted. The amount of the credit claimed	302
in a tax year shall not exceed ten thousand dollars regardless of	303
the number of pumps installed or retrofitted by the motor fuel	304
retail dealer at a retail service station during the preceding	305
calendar year and regardless of the number of retail service	306
stations at which the dealer installs or retrofits a pump during	307
the preceding calendar year. The credit shall be claimed in the	308
order required under section 5733.98 of the Revised Code.	309

(C) The tax commissioner may require that a motor fuel retail	310
dealer furnish information as is necessary to support the claim	311
for the credit under this section, and no credit shall be allowed	312
unless the information is provided.	313

Sec. 5733.98.  (A) To provide a uniform procedure for	314
calculating the amount of tax imposed by section 5733.06 of the	315
Revised Code that is due under this chapter, a taxpayer shall	316
claim any credits to which it is entitled in the following order,	317
except as otherwise provided in section 5733.058 of the Revised	318
Code:	319

(1) The credit for taxes paid by a qualifying pass-through	320
entity allowed under section 5733.0611 of the Revised Code;	321

(2) The credit allowed for financial institutions under	322
section 5733.45 of the Revised Code;	323

(3) The credit for qualifying affiliated groups under section	324
5733.068 of the Revised Code;	325

(4) The subsidiary corporation credit under section 5733.067	326
of the Revised Code;	327

(5) The savings and loan assessment credit under section	328
5733.063 of the Revised Code;	329

(6) The credit for recycling and litter prevention donations	330
under section 5733.064 of the Revised Code;	331

(7) The credit for employers that enter into agreements with	332
child day-care centers under section 5733.36 of the Revised Code;	333

(8) The credit for employers that reimburse employee child	334
care expenses under section 5733.38 of the Revised Code;	335

(9) The credit for maintaining railroad active grade crossing	336
warning devices under section 5733.43 of the Revised Code;	337

(10) The credit for purchases of lights and reflectors under	338
section 5733.44 of the Revised Code;	339

(11) The job retention credit under division (B) of section	340
5733.0610 of the Revised Code;	341

(12) The credit for losses on loans made under the Ohio	342
venture capital program under sections 150.01 to 150.10 of the	343
Revised Code if the taxpayer elected a nonrefundable credit under	344
section 150.07 of the Revised Code;	345

(13) The credit for purchases of new manufacturing machinery	346
and equipment under section 5733.31 or section 5733.311 of the	347
Revised Code;	348

(14) The second credit for purchases of new manufacturing	349
machinery and equipment under section 5733.33 of the Revised Code;	350

(15) The job training credit under section 5733.42 of the	351
Revised Code;	352

(16) The credit for qualified research expenses under section	353
5733.351 of the Revised Code;	354

(17) The enterprise zone credit under section 5709.66 of the	355
Revised Code;	356

(18) The credit for the eligible costs associated with a	357
voluntary action under section 5733.34 of the Revised Code;	358

(19) The credit for employers that establish on-site child	359
day-care centers under section 5733.37 of the Revised Code;	360

(20) The ethanol plant investment credit under section	361
5733.46 of the Revised Code;	362

(21) The credit for purchases of qualifying grape production	363
property under section 5733.32 of the Revised Code;	364

(22) The export sales credit under section 5733.069 of the	365
Revised Code;	366

(23) The credit for research and development and technology	367
transfer investors under section 5733.35 of the Revised Code;	368

(24) The enterprise zone credits under section 5709.65 of the	369
Revised Code;	370

(25) The credit for using Ohio coal under section 5733.39 of	371
the Revised Code;	372

(26) The research and development credit under section	373
5733.352 of the Revised Code;	374

(27) The credit for small telephone companies under section	375
5733.57 of the Revised Code;	376

(28) The credit for eligible nonrecurring 9-1-1 charges under	377
section 5733.55 of the Revised Code;	378

(29) The credit for providing programs to aid the	379
communicatively impaired under section 5733.56 of the Revised	380
Code;	381

(30) The credit for installing or retrofitting ethanol fuel	382
pumps under section 5733.48 of the Revised Code;	383

(31) The ethanol-blended gasoline credit under section	384
5733.47 of the Revised Code;	385

(32) The refundable jobs creation credit under division (A)	386
of section 5733.0610 of the Revised Code;	387

(31)(33) The refundable credit for tax withheld under	388
division (B)(2) of section 5747.062 of the Revised Code;	389

(34) The credit for losses on loans made to the Ohio venture	390
capital program under sections 150.01 to 150.10 of the Revised	391
Code if the taxpayer elected a refundable credit under section	392
150.07 of the Revised Code.	393

(B) For any credit except the credits enumerated in divisions	394
(A)(30), (31), and (32), (33), and (34) of this section, the	395
amount of the credit for a tax year shall not exceed the tax due	396
after allowing for any other credit that precedes it in the order	397
required under this section. Any excess amount of a particular	398
credit may be carried forward if authorized under the section	399
creating that credit.	400

Sec. 5735.40.  (A) As used in this section:

401

(1) "Alternative fuel" has the same meaning as in section	402
125.831 of the Revised Code.	403

(2) "Political subdivision" means a county, township,	404
municipal corporation, school district, or other body corporate	405
and politic responsible for governmental activities in a	406
geographic area smaller than that of the state.	407

(B) Except as provided in division (B)(6) of section 5739.02	408
of the Revised Code when levying the tax imposed by that section	409
in conjunction with sections 5739.021, 5739.023, and 5739.026 of	410
the Revised Code, no political subdivision shall levy or collect	411
any excise, license, privilege, or occupational tax on alternative	412
fuel or on the buying, selling, handling, or consuming of	413
alternative fuel.	414

Sec. 5747.76.  (A) As used in this section:

415

(1) "Ethanol" has the same meaning as in section 5747.75 of	416
the Revised Code.	417

(2) "Ethanol-blended gasoline" means gasoline containing at	418
least ten per cent ethanol.	419

(3) "Gasoline" has the same meaning as in section 5735.01 of	420
the Revised Code.	421

(4) "Retail dealer" means a taxpayer that sells or	422
distributes gasoline at a retail service station located in this	423
state.	424

(5) "Retail service station" means each location from which	425
gasoline is sold or offered for sale at retail to the general	426
public and is dispensed from a metered pump.	427

(B) There is hereby allowed a nonrefundable credit against	428
the tax imposed by section 5747.02 of the Revised Code for a	429
retail dealer that owns or operates a retail service station at	430
which more than sixty per cent of the total gallons of gasoline	431
sold and dispensed through one or more metered pumps by the	432
taxpayer in the taxable year is ethanol-blended gasoline. The	433
amount of the credit for each eligible retail service station is	434
two and one-half cents multiplied by the total number of gallons	435
of ethanol-blended gasoline sold and dispensed through all metered	436
pumps located at that retail service station during the taxable	437
year in excess of sixty per cent of all gasoline sold and	438
dispensed through metered pumps at that retail service station	439
during the taxable year. The credit shall be calculated separately	440
for each retail service station site owned or operated by that	441
retail dealer.	442

(C) The retail dealer shall claim the credit in the order	443
required by section 5747.98 of the Revised Code. The tax	444
commissioner may require that the retail dealer furnish	445
information as is necessary to support a claim for a tax credit	446
under this section, and no credit shall be allowed unless the	447
information is provided.	448

(D) The credit allowed under this section may be claimed for	449
taxable years beginning on or after January 1, 2006.	450

Sec. 5747.77. (A) As used in this section:

451

(1) "E85 blend fuel" has the same meaning as in section	452
125.831 of the Revised Code.	453

(2) "Gasoline" and "motor fuel" have the same meanings as in	454
section 5735.01 of the Revised Code.	455

(3) "Motor fuel retail dealer" means a pass-through entity	456
that sells or distributes motor fuel at a retail service station	457
located in this state and that possesses an unrevoked retail	458
dealer's license issued by the tax commissioner under section	459
5735.022 of the Revised Code.	460

(4) "Pass-through entity" has the same meaning as in section	461
5747.01 of the Revised Code and includes a sole proprietorship.	462

(5) "Retail service station" means a location from which	463
motor fuel is sold to the general public and is dispensed or	464
pumped directly into motor vehicle fuel tanks for consumption.	465

(B) For taxable years beginning in 2005, 2006, 2007, and	466
2008, there is hereby allowed a nonrefundable credit against the	467
tax imposed by section 5747.02 of the Revised Code for a motor	468
fuel retail dealer that installs or retrofits at a retail service	469
station located in this state one or more pumps for the purpose of	470
dispensing E85 blend fuel for sale to the general public. The	471
amount of the credit equals the cost of installing or retrofitting	472
the pump or ten thousand dollars, whichever is less. The credit	473
shall be claimed for the taxable year in which a pump is installed	474
or retrofitted. The amount of the credit claimed for a taxable	475
year shall not exceed ten thousand dollars regardless of the	476
number of pumps installed or retrofitted by the motor fuel retail	477
dealer at a retail service station during the taxable year and	478
regardless of the number of retail service stations at which the	479
dealer installs or retrofits a pump during the taxable year. The	480
credit shall be claimed in the order required under section	481
5747.98 of the Revised Code.	482

(C) Nothing in this section limits or disallows pass-through	483
treatment of the credit.	484

(D) The tax commissioner may require that a motor fuel retail	485
dealer furnish information as is necessary to support the claim	486
for the credit under this section, and no credit shall be allowed	487
unless the information is provided.	488

Sec. 5747.98.  (A) To provide a uniform procedure for	489
calculating the amount of tax due under section 5747.02 of the	490
Revised Code, a taxpayer shall claim any credits to which the	491
taxpayer is entitled in the following order:	492

(1) The retirement income credit under division (B) of	493
section 5747.055 of the Revised Code;	494

(2) The senior citizen credit under division (C) of section	495
5747.05 of the Revised Code;	496

(3) The lump sum distribution credit under division (D) of	497
section 5747.05 of the Revised Code;	498

(4) The dependent care credit under section 5747.054 of the	499
Revised Code;	500

(5) The lump sum retirement income credit under division (C)	501
of section 5747.055 of the Revised Code;	502

(6) The lump sum retirement income credit under division (D)	503
of section 5747.055 of the Revised Code;	504

(7) The lump sum retirement income credit under division (E)	505
of section 5747.055 of the Revised Code;	506

(8) The credit for displaced workers who pay for job training	507
under section 5747.27 of the Revised Code;	508

(9) The campaign contribution credit under section 5747.29 of	509
the Revised Code;	510

(10) The twenty-dollar personal exemption credit under	511
section 5747.022 of the Revised Code;	512

(11) The joint filing credit under division (G) of section	513
5747.05 of the Revised Code;	514

(12) The nonresident credit under division (A) of section	515
5747.05 of the Revised Code;	516

(13) The credit for a resident's out-of-state income under	517
division (B) of section 5747.05 of the Revised Code;	518

(14) The credit for employers that enter into agreements with	519
child day-care centers under section 5747.34 of the Revised Code;	520

(15) The credit for employers that reimburse employee child	521
care expenses under section 5747.36 of the Revised Code;	522

(16) The credit for adoption of a minor child under section	523
5747.37 of the Revised Code;	524

(17) The credit for purchases of lights and reflectors under	525
section 5747.38 of the Revised Code;	526

(18) The job retention credit under division (B) of section	527
5747.058 of the Revised Code;	528

(19) The credit for losses on loans made under the Ohio	529
venture capital program under sections 150.01 to 150.10 of the	530
Revised Code if the taxpayer elected a nonrefundable credit under	531
section 150.07 of the Revised Code;	532

(20) The credit for purchases of new manufacturing machinery	533
and equipment under section 5747.26 or section 5747.261 of the	534
Revised Code;	535

(21) The second credit for purchases of new manufacturing	536
machinery and equipment and the credit for using Ohio coal under	537
section 5747.31 of the Revised Code;	538

(22) The job training credit under section 5747.39 of the	539
Revised Code;	540

(23) The enterprise zone credit under section 5709.66 of the	541
Revised Code;	542

(24) The credit for the eligible costs associated with a	543
voluntary action under section 5747.32 of the Revised Code;	544

(25) The credit for employers that establish on-site child	545
day-care centers under section 5747.35 of the Revised Code;	546

(26) The ethanol plant investment credit under section	547
5747.75 of the Revised Code;	548

(27) The credit for purchases of qualifying grape production	549
property under section 5747.28 of the Revised Code;	550

(28) The export sales credit under section 5747.057 of the	551
Revised Code;	552

(29) The credit for research and development and technology	553
transfer investors under section 5747.33 of the Revised Code;	554

(30) The enterprise zone credits under section 5709.65 of the	555
Revised Code;	556

(31) The research and development credit under section	557
5747.331 of the Revised Code;	558

(32) The credit for installing or retrofitting ethanol fuel	559
pumps under section 5747.77 of the Revised Code;	560

(33) The ethanol-blended gasoline credit under section	561
5733.47 of the Revised Code;	562

(34) The refundable jobs creation credit under division (A)	563
of section 5747.058 of the Revised Code;	564

(33)(35) The refundable credit for taxes paid by a qualifying	565
entity granted under section 5747.059 of the Revised Code;	566

(34)(36) The refundable credits for taxes paid by a	567
qualifying pass-through entity granted under division (J) of	568
section 5747.08 of the Revised Code;	569

(35)(37) The refundable credit for tax withheld under	570
division (B)(1) of section 5747.062 of the Revised Code;	571

(38) The credit for losses on loans made to the Ohio venture	572
capital program under sections 150.01 to 150.10 of the Revised	573
Code if the taxpayer elected a refundable credit under section	574
150.07 of the Revised Code.	575

(B) For any credit, except the credits enumerated in	576
divisions (A)(32)(34) to (36)(38) of this section and the credit	577
granted under division (I) of section 5747.08 of the Revised Code,	578
the amount of the credit for a taxable year shall not exceed the	579
tax due after allowing for any other credit that precedes it in	580
the order required under this section. Any excess amount of a	581
particular credit may be carried forward if authorized under the	582
section creating that credit. Nothing in this chapter shall be	583
construed to allow a taxpayer to claim, directly or indirectly, a	584
credit more than once for a taxable year.	585

Section 2. That existing sections 125.831, 5733.98, and	586
5747.98 of the Revised Code are hereby repealed.	587

Section 3. (A) As used in this section, "alternative fuel"	588
has the same meaning as in section 125.831 of the Revised Code, as	589
amended by this act.	590

(B) The Department of Taxation shall study the feasibility of	591
encouraging the use of alternative fuels by reducing the motor	592
fuel tax rate on those fuels, to the extent they are taxed under	593
Chapter 5735. of the Revised Code, to reflect their lower energy	594
content and the need to use more gallons of an alternative fuel to	595
travel the same distance. The study shall examine the British	596
thermal unit ("Btu") of each alternative fuel that may be used in	597
motor vehicles and determine at what rate each alternative fuel	598
may be taxed to result in an effective tax rate that is equalized	599
to conventional fuels, such as gasoline and diesel, according to	600
their relative Btu content by volume. Among any other matters the	601
Department of Taxation determines to be pertinent to the study,	602
the Department also shall consider the experience of other states	603
that have encouraged the use of alternative fuels by reducing	604
their fuel tax rates on those fuels. Not later than one year after	605
the effective date of this section, the Department shall prepare a	606
report regarding its findings and submit a copy of the report to	607
the Governor, the Speaker and Minority Leader of the House of	608
Representatives, and the President and Minority Leader of the	609
Senate.	610

Section 4.  (A) As used in this section, "blended biodiesel"	611
and "E85 blend fuel" have the same meanings as in section 125.831	612
of the Revised Code, as amended by this act.	613

(B) The Department of Development, in conjunction with the	614
Department of Agriculture and the Department of Commerce, shall	615
conduct a study evaluating the factors involved in making the	616
production, sale, and use of blended biodiesel and E85 blend fuel	617
a commercially viable and self-sustaining industry in this state	618
so that government intervention and support for the blended	619
biodiesel and E85 blend fuel markets is not necessary. Not later	620
than one year after the effective date of this section, the	621
Department of Development shall prepare a report regarding its	622
findings and submit a copy of the report to the Governor, the	623
Speaker and Minority Leader of the House of Representatives, and	624
the President and Minority Leader of the Senate.	625