Am. S. B. No. 190 As Reported by the Senate Ways and Means and Economic Development Committee

Senators Carey, Amstutz, Zurz, Fingerhut, Dann, Roberts, Austria, Spada

A BILL

To amend sections 5725.31, 5729.07, 5733.42, and 1
5747.39 of the Revised Code to extend the job 2
training tax credit for an additional year and to 3
declare an emergency. 4

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

       Section 1. That sections 5725.31, 5729.07, 5733.42, and 5
5747.39 of the Revised Code be amended to read as follows: 6

       Sec. 5725.31. (A) As used in this section: 7

       (1) "Eligible employee" and "eligible training costs" have 8
the same meanings as in section 5733.42 of the Revised Code. 9

       (2) "Tax assessed under this chapter" means, in the case of a 10
dealer in intangibles, the tax assessed under sections 5725.13 to 11
5725.17 of the Revised Code and, in the case of a domestic 12
insurance company, the taxes assessed under sections 5725.18 to 13
5725.26 of the Revised Code. 14

       (3) "Taxpayer" means a dealer in intangibles or a domestic 15
insurance company subject to a tax assessed under this chapter. 16

       (4) "Credit period" means, in the case of a dealer in 17
intangibles, the calendar year ending on the thirty-first day of 18
December next preceding the day the report is required to be 19
returned under section 5725.14 of the Revised Code and, in the 20
case of a domestic insurance company, the calendar year ending on 21
the thirty-first day of December next preceding the day the annual 22
statement is required to be returned under section 5725.18 or 23
5725.181 of the Revised Code. 24

       (B) There is hereby allowed a nonrefundable credit against 25
the tax imposed under this chapter for a taxpayer for which a tax 26
credit certificate is issued under section 5733.42 of the Revised 27
Code. The credit may be claimed for credit periods beginning on or 28
after January 1, 2003, and ending on or before December 31, ~~2005~~ 29
2006. The amount of the credit for the credit period beginning on 30
January 1, 2003, shall equal one-half of the average of the 31
eligible training costs paid or incurred by the taxpayer during 32
calendar years 1998, 1999, and 2000, not to exceed one thousand 33
dollars for each eligible employee on account of whom eligible 34
training costs were paid or incurred by the taxpayer. The amount 35
of the credit for the credit period beginning on January 1, 2004, 36
shall equal one-half of the average of the eligible training costs 37
paid or incurred by the taxpayer during calendar years 2002, 2003, 38
and 2004, not to exceed one thousand dollars for each eligible 39
employee on account of whom eligible training costs were paid or 40
incurred by the taxpayer. The amount of the credit for the credit 41
period beginning on January 1, 2005, shall equal one-half of the 42
average of the eligible training costs paid or incurred by the 43
taxpayer during calendar years 2003, 2004, and 2005, not to exceed 44
one thousand dollars for each eligible employee on account of whom 45
eligible training costs were paid or incurred by the taxpayer. ~~The~~ 46
The amount of the credit for the credit period beginning on 47
January 1, 2006, shall equal one-half of the average of the 48
eligible training costs paid or incurred by the taxpayer during 49
calendar years 2004, 2005, and 2006, not to exceed one thousand 50
dollars for each eligible employee on account of whom eligible 51
training costs were paid or incurred by the taxpayer. 52

        The credit claimed by a taxpayer each credit period shall not 53
exceed one hundred thousand dollars. 54

       A taxpayer shall apply to the director of job and family 55
services for a tax credit certificate in the manner prescribed by 56
division (C) of section 5733.42 of the Revised Code. Divisions (C) 57
to (H) of that section govern the tax credit allowed by this 58
section, except that "credit period" shall be substituted for "tax 59
year with respect to a calendar year" wherever that phrase appears 60
in those divisions and that a taxpayer under this section shall be 61
considered a taxpayer for the purposes of that section. 62

       A taxpayer may carry forward the credit allowed under this 63
section to the extent that the credit exceeds the taxpayer's tax 64
due for the credit period. The taxpayer may carry the excess 65
credit forward for three credit periods following the credit 66
period for which the credit is first claimed under this section. 67
The credit allowed by this section is in addition to any credit 68
allowed under section 5729.031 of the Revised Code. 69

       Sec. 5729.07. As used in this section: 70

       (A) "Eligible employee" and "eligible training costs" have 71
the same meanings as in section 5733.42 of the Revised Code. 72

       (B) "Credit period" means the calendar year ending on the 73
thirty-first day of December next preceding the day the annual 74
statement is required to be returned under section 5729.02 of the 75
Revised Code. 76

       There is hereby allowed a nonrefundable credit against the 77
tax imposed under this chapter for a foreign insurance company for 78
which a tax credit certificate is issued under section 5733.42 of 79
the Revised Code. The credit may be claimed for credit periods 80
beginning on or after January 1, 2003, and ending on or before 81
December 31, ~~2005~~2006. The amount of the credit for the credit 82
period beginning on January 1, 2003, shall equal one-half of the 83
average of the eligible training costs paid or incurred by the 84
company during calendar years 1998, 1999, and 2000, not to exceed 85
one thousand dollars for each eligible employee on account of whom 86
eligible training costs were paid or incurred by the company. The 87
amount of the credit for the credit period beginning on January 1, 88
2004, shall equal one-half of the average of the eligible training 89
costs paid or incurred by the company during calendar years 2002, 90
2003, and 2004, not to exceed one thousand dollars for each 91
eligible employee on account of whom eligible training costs were 92
paid or incurred by the company. The amount of the credit for the 93
credit period beginning on January 1, 2005, shall equal one-half 94
of the average of the eligible training costs paid or incurred by 95
the company during calendar years 2003, 2004, and 2005, not to 96
exceed one thousand dollars for each eligible employee on account 97
of whom eligible training costs were paid or incurred by the 98
company. ~~The~~The amount of the credit for the credit period 99
beginning on January 1, 2006, shall equal one-half of the average 100
of the eligible training costs paid or incurred by the company 101
during calendar years 2004, 2005, and 2006, not to exceed one 102
thousand dollars for each eligible employee on account of whom 103
eligible training costs were paid or incurred by the company. 104

        The credit claimed by a company for each credit period shall 105
not exceed one hundred thousand dollars. 106

       A foreign insurance company shall apply to the director of 107
job and family services for a tax credit certificate in the manner 108
prescribed by division (C) of section 5733.42 of the Revised Code. 109
Divisions (C) to (H) of that section govern the tax credit allowed 110
by this section, except that "credit period" shall be substituted 111
for "tax year with respect to a calendar year" wherever that 112
phrase appears in those divisions and that the company shall be 113
considered a taxpayer for the purposes of those divisions. 114

       A foreign insurance company may carry forward the credit 115
allowed under this section to the extent that the credit exceeds 116
the company's tax due for the credit period. The company may carry 117
the excess credit forward for three credit periods following the 118
credit period for which the credit is first claimed under this 119
section. The credit allowed by this section is in addition to any 120
credit allowed under section 5729.031 of the Revised Code. 121

       The reduction in the tax due under this chapter to the extent 122
of the credit allowed by this section does not increase the amount 123
of the tax otherwise due under section 5729.06 of the Revised 124
Code. 125

       Sec. 5733.42. (A) As used in this section: 126

       (1) "Eligible training program" means a program to provide 127
job skills to eligible employees who are unable effectively to 128
function on the job due to skill deficiencies or who would 129
otherwise be displaced because of their skill deficiencies or 130
inability to use new technology, or to provide job skills to 131
eligible employees that enable them to perform other job duties 132
for the taxpayer. Eligible training programs do not include 133
executive, management, or personal enrichment training programs, 134
or training programs intended exclusively for personal career 135
development. 136

       (2) "Eligible employee" means an individual who is employed 137
in this state by a taxpayer and has been so employed by the same 138
taxpayer for at least one hundred eighty consecutive days before 139
the day an application for the credit is filed under this section. 140
"Eligible employee" does not include any employee for which a 141
credit is claimed pursuant to division (A)(5) of section 5709.65 142
of the Revised Code for all or any part of the same year, an 143
employee who is not a full-time employee, or executive or 144
managerial personnel, except for the immediate supervisors of 145
nonexecutive, nonmanagerial personnel. 146

       (3) "Eligible training costs" means: 147

       (a) Direct instructional costs, such as instructor salaries, 148
materials and supplies, textbooks and manuals, videotapes, and 149
other instructional media and training equipment used exclusively 150
for the purpose of training eligible employees; 151

       (b) Wages paid to eligible employees for time devoted 152
exclusively to an eligible training program during normal paid 153
working hours. 154

       (4) "Full-time employee" means an individual who is employed 155
for consideration for at least thirty-five hours per week, or who 156
renders any other standard of service generally accepted by custom 157
or specified by contract as full-time employment. 158

       (5) "Partnership" includes a limited liability company formed 159
under Chapter 1705. of the Revised Code or under the laws of 160
another state, provided that the company is not classified for 161
federal income tax purposes as an association taxable as a 162
corporation. 163

       (B) There is hereby allowed a nonrefundable credit against 164
the tax imposed by section 5733.06 of the Revised Code for 165
taxpayers for which a tax credit certificate is issued under 166
division (C) of this section. The credit may be claimed for tax 167
years 2004, 2005, ~~and~~ 2006, and 2007. The amount of the credit for 168
tax year 2004 shall equal one-half of the average of the eligible 169
training costs paid or incurred by the taxpayer during calendar 170
years 1999, 2000, and 2001, not to exceed one thousand dollars for 171
each eligible employee on account of whom eligible training costs 172
were paid or incurred by the taxpayer during those calendar years. 173
The amount of the credit for tax year 2005 shall equal one-half of 174
the average of the eligible training costs paid or incurred by the 175
taxpayer during calendar years 2002, 2003, and 2004, not to exceed 176
one thousand dollars for each eligible employee on account of whom 177
eligible training costs were paid or incurred by the taxpayer 178
during those calendar years. The amount of the credit for tax year 179
2006 shall equal one-half of the average of the eligible training 180
costs paid or incurred by the taxpayer during calendar years 2003, 181
2004, and 2005, not to exceed one thousand dollars for each 182
eligible employee on account of whom eligible training costs were 183
paid or incurred by the taxpayer during those calendar years. ~~The~~ 184
The amount of the credit for tax year 2007 shall equal one-half of 185
the average of the eligible training costs paid or incurred by the 186
taxpayer during calendar years 2004, 2005, and 2006, not to exceed 187
one thousand dollars for each eligible employee on account of whom 188
eligible training costs were paid or incurred by the taxpayer 189
during those calendar years. 190

        The credit claimed by a taxpayer each tax year shall not 191
exceed one hundred thousand dollars. 192

       (C) A taxpayer who proposes to conduct an eligible training 193
program may apply to the director of job and family services for a 194
tax credit certificate under this section. The taxpayer may apply 195
for such a certificate for tax years 2004, 2005, ~~and~~ 2006, and 196
2007, subject to division (L) of this section. The director shall 197
prescribe the form of the application, which shall require a 198
detailed description of the proposed training program. The 199
director may require applicants to remit an application fee with 200
each application filed with the director. The fee shall not exceed 201
the reasonable and necessary expenses incurred by the director in 202
receiving, reviewing, and approving such applications and issuing 203
tax credit certificates. Proceeds from fees shall be used solely 204
for the purpose of receiving, reviewing, and approving such 205
applications and issuing such certificates. 206

       After receipt of an application, the director shall authorize 207
a credit under this section by issuing a tax credit certificate, 208
in the form prescribed by the director, if the director determines 209
all of the following: 210

       (1) The proposed training program is an eligible training 211
program under this section; 212

       (2) The proposed training program is economically sound and 213
will benefit the people of this state by improving workforce 214
skills and strengthening the economy of this state; 215

       (3) Receiving the tax credit is a major factor in the 216
taxpayer's decision to go forward with the training program; 217

       (4) Authorization of the credit is consistent with division 218
(H) of this section. 219

       The credit also is allowed for a taxpayer that is a partner 220
in a partnership that pays or incurs eligible training costs. Such 221
a taxpayer shall determine the taxpayer's credit amount in the 222
manner prescribed by division (K) of this section. 223

       (D) If the director of job and family services denies an 224
application for a tax credit certificate, the director shall send 225
notice of the denial and the reason for denial to the applicant by 226
certified mail, return receipt requested. If the director 227
determines that an authorized training program, as actually 228
conducted, fails to meet the requirements of this section or to 229
comply with any condition set forth in the authorization, the 230
director may reduce the amount of the tax credit previously 231
granted. If the director reduces a tax credit, the director shall 232
send notice of the reduction and the reason for the reduction to 233
the taxpayer by certified mail, return receipt requested, and 234
shall certify the reduction to the tax commissioner or, in the 235
case of the reduction of a credit claimed by an insurance company, 236
the superintendent of insurance. The tax commissioner or 237
superintendent of insurance shall reduce the credit that may be 238
claimed by the taxpayer accordingly. Within sixty days after 239
receiving a notice of denial or notice of reduction of the tax 240
credit, an applicant or taxpayer may request, in writing, a 241
hearing before the director to review the denial or reduction. 242
Within sixty days after receiving a request that is filed within 243
the prescribed time, the director shall hold such a hearing at a 244
location to be determined by the director. Within thirty days 245
after the hearing is adjourned, the director shall issue a 246
redetermination affirming, reversing, or modifying the denial or 247
reduction of the tax credit and send notice of the redetermination 248
to the applicant or taxpayer by certified mail, return receipt 249
requested, and shall issue a notice of the redetermination to the 250
tax commissioner or superintendent of insurance. If an applicant 251
or taxpayer is aggrieved by the director's redetermination, the 252
applicant or taxpayer may appeal the redetermination to the board 253
of tax appeals in the manner prescribed by section 5717.02 of the 254
Revised Code. 255

       (E) A taxpayer to which a tax credit certificate is issued 256
shall retain records indicating the eligible training costs it 257
pays or incurs for the eligible training program for which the 258
certificate is issued for four years following the end of the tax 259
year for which the credit is claimed. Such records shall be open 260
to inspection by the director of job and family services upon the 261
director's request during business hours. 262

       Financial statements and other information submitted by an 263
applicant to the director of job and family services for a tax 264
credit under this section, and any information taken for any 265
purpose from such statements or information, are not public 266
records subject to section 149.43 of the Revised Code. However, 267
the director of job and family services, the tax commissioner, or 268
superintendent of insurance may make use of the statements and 269
other information for purposes of issuing public reports or in 270
connection with court proceedings concerning tax credits allowed 271
under this section and sections 5725.31, 5729.07, and 5747.39 of 272
the Revised Code. 273

       (F) The director of job and family services, in accordance 274
with Chapter 119. of the Revised Code, shall adopt rules necessary 275
to implement this section and sections 5725.31, 5729.07, and 276
5747.39 of the Revised Code. The rules shall be adopted after 277
consultation with the tax commissioner and the superintendent of 278
insurance. At the time the director gives public notice under 279
division (A) of section 119.03 of the Revised Code of the adoption 280
of the rules, the director shall submit copies of the proposed 281
rules to the chairpersons and ranking minority members of the 282
standing committees in the senate and the house of representatives 283
to which legislation on economic development matters are 284
customarily referred. 285

       (G) On or before the thirtieth day of September of 2001, 286
2003, 2004, 2005, ~~and~~ 2006, and 2007, the director of job and 287
family services shall submit a report to the governor, the 288
president of the senate, and the speaker of the house of 289
representatives on the tax credit program under this section and 290
sections 5725.31, 5729.07, and 5747.39 of the Revised Code. The 291
report shall include information on the number of training 292
programs that were authorized under those sections during the 293
preceding calendar year, a description of each authorized training 294
program, the dollar amounts of the credits granted, and an 295
estimate of the impact of the credits on the economy of this 296
state. 297

       (H) The aggregate amount of credits authorized under this 298
section and sections 5725.31, 5729.07, and 5747.39 of the Revised 299
Code shall not exceed twenty million dollars per calendar year. No 300
more than ten million dollars in credits per calendar year shall 301
be authorized for persons engaged primarily in manufacturing. No 302
less than five million dollars in credits per calendar year shall 303
be set aside for persons engaged primarily in activities other 304
than manufacturing and having fewer than five hundred employees. 305
Subject to such limits, the director of job and family services 306
shall adopt a rule under division (F) of this section that 307
establishes criteria and procedures for distribution of the 308
credits. 309

       (I) A nonrefundable credit allowed under this section shall 310
be claimed in the order required under section 5733.98 of the 311
Revised Code. 312

       (J) The taxpayer may carry forward any credit amount in 313
excess of its tax due after allowing for any other credits that 314
precede the credit under this section in the order required under 315
section 5733.98 of the Revised Code. The excess credit may be 316
carried forward for three years following the tax year for which 317
it is first claimed under this section. 318

       (K) A taxpayer that is a partner in a partnership on the last 319
day of the third calendar year of the three-year period during 320
which the partnership pays or incurs eligible training costs may 321
claim a credit under this section for the tax year immediately 322
following that calendar year. The amount of a partner's credit 323
equals the partner's interest in the partnership on the last day 324
of such calendar year multiplied by the credit available to the 325
partnership as computed by the partnership. 326

       (L) The director of job and family services shall not 327
authorize any credits under this section and sections 5725.31, 328
5729.07, and 5747.39 of the Revised Code for eligible training 329
costs paid or incurred after December 31, ~~2005~~2006. 330

       Sec. 5747.39. (A) As used in this section, "eligible 331
employee" and "eligible training costs" have the same meanings as 332
in section 5733.42 of the Revised Code, and "pass-through entity" 333
includes a sole proprietorship. 334

       (B)(1) For taxable years beginning ~~after~~ in 2003, 2004, ~~and~~ 335
2005, and 2006, there is hereby allowed a nonrefundable credit 336
against the tax imposed by section 5747.02 of the Revised Code for 337
a taxpayer that is an investor in a pass-through entity for which 338
a tax credit certificate is issued under section 5733.42 of the 339
Revised Code. For the taxable year beginning in 2003, the amount 340
of eligible training costs for which a credit may be claimed by 341
all taxpayers that are investors in an entity shall equal one-half 342
of the average of the eligible training costs incurred by the 343
entity during calendar years 1999, 2000, and 2001, but shall not 344
exceed one thousand dollars for each eligible employee on account 345
of whom such costs were paid or incurred by the entity~~, and the~~ 346
~~total amount of credits that may be claimed by all such taxpayers~~ 347
~~shall not exceed one hundred thousand dollars~~. The 348

       ~~The~~ amount of a taxpayer's credit for the taxpayer's taxable 349
year beginning in 2003 shall equal the taxpayer's interest in the 350
entity on December 31, 2001, multiplied by the credit available to 351
the entity as computed by the entity. 352

       (2) For the taxable year beginning in 2004, the amount of the 353
eligible training costs for which a credit may be claimed by all 354
taxpayers that are investors in an entity shall equal one-half of 355
the average of the eligible training costs incurred by the entity 356
during calendar years 2002, 2003, and 2004, but shall not exceed 357
one thousand dollars for each eligible employee on account of whom 358
such costs were paid or incurred by the entity~~, and the total~~ 359
~~amount of credits that may be claimed by all such taxpayers shall~~ 360
~~not exceed one hundred thousand dollars~~. The amount of a 361
taxpayer's credit for the taxpayer's taxable year beginning in 362
2004 shall equal the taxpayer's interest in the entity on December 363
31, 2004, multiplied by the credit available to the entity as 364
computed by the entity. 365

       (3) For the taxable year beginning in 2005, the amount of the 366
eligible training costs for which a credit may be claimed by all 367
taxpayers that are investors in an entity shall equal one-half of 368
the average of the eligible training costs incurred by the entity 369
during calendar years 2003, 2004, and 2005, but shall not exceed 370
one thousand dollars for each eligible employee on account of whom 371
such costs were paid or incurred by the entity~~, and the total~~ 372
~~amount of credits that may be claimed by all such taxpayers shall~~ 373
~~not exceed one hundred thousand dollars~~. The amount of a 374
taxpayer's credit for the taxpayer's taxable year beginning in 375
2005 shall equal the taxpayer's interest in the entity on December 376
31, 2005, multiplied by the credit available to the entity as 377
computed by the entity. 378

       (4) For the taxable year beginning in 2006, the amount of the 379
eligible training costs for which a credit may be claimed by all 380
taxpayers that are investors in an entity shall equal one-half of 381
the average of the eligible training costs incurred by the entity 382
during calendar years 2004, 2005, and 2006, but shall not exceed 383
one thousand dollars for each eligible employee on account of whom 384
such costs were paid or incurred by the entity. The amount of a 385
taxpayer's credit for the taxpayer's taxable year beginning in 386
2006 shall equal the taxpayer's interest in the entity on December 387
31, 2006, multiplied by the credit available to the entity as 388
computed by the entity. 389

        (5) The total amount of credits that may be claimed by all 390
such taxpayers with respect to each pass-through entity for each 391
taxable year shall not exceed one hundred thousand dollars. 392

       (C) The credit shall be claimed in the order prescribed by 393
section 5747.98 of the Revised Code. A taxpayer may carry forward 394
the credit to the extent that the taxpayer's credit exceeds the 395
taxpayer's tax due after allowing for any other credits that 396
precede the credit allowed by this section in the order prescribed 397
by section 5747.98 of the Revised Code. The taxpayer may carry the 398
excess credit forward for three taxable years following the 399
taxable year for which the taxpayer first claims the credit under 400
this section. 401

       (D) A pass-through entity shall apply to the director of job 402
and family services for a tax credit certificate in the manner 403
prescribed by division (C) of section 5733.42 of the Revised Code. 404
Divisions (C) to (H) of that section govern the tax credit allowed 405
by this section, except that "taxable year" shall be substituted 406
for "tax year" wherever that phrase appears in those divisions, 407
and that "pass-through entity" shall be substituted for "taxpayer" 408
wherever "taxpayer" appears in those divisions. 409

       Section 2. That existing sections 5725.31, 5729.07, 5733.42, 410
and 5747.39 of the Revised Code are hereby repealed. 411

       Section 3. This act is hereby declared to be an emergency 412
measure necessary for the immediate preservation of the public 413
peace, health, and safety. The reason for such necessity is that 414
the job training tax credit is scheduled to expire, but the credit 415
is needed for an additional year to encourage Ohio employers to 416
provide further job skill training programs to employees. 417
Therefore, this act shall go into immediate effect. 418

Section 1. That sections 5725.31, 5729.07, 5733.42, and	5
5747.39 of the Revised Code be amended to read as follows:	6

(1) "Eligible employee" and "eligible training costs" have	8
the same meanings as in section 5733.42 of the Revised Code.	9

(2) "Tax assessed under this chapter" means, in the case of a	10
dealer in intangibles, the tax assessed under sections 5725.13 to	11
5725.17 of the Revised Code and, in the case of a domestic	12
insurance company, the taxes assessed under sections 5725.18 to	13
5725.26 of the Revised Code.	14

(3) "Taxpayer" means a dealer in intangibles or a domestic	15
insurance company subject to a tax assessed under this chapter.	16

(4) "Credit period" means, in the case of a dealer in	17
intangibles, the calendar year ending on the thirty-first day of	18
December next preceding the day the report is required to be	19
returned under section 5725.14 of the Revised Code and, in the	20
case of a domestic insurance company, the calendar year ending on	21
the thirty-first day of December next preceding the day the annual	22
statement is required to be returned under section 5725.18 or	23
5725.181 of the Revised Code.	24

(B) There is hereby allowed a nonrefundable credit against	25
the tax imposed under this chapter for a taxpayer for which a tax	26
credit certificate is issued under section 5733.42 of the Revised	27
Code. The credit may be claimed for credit periods beginning on or	28
after January 1, 2003, and ending on or before December 31, ~~2005~~	29
2006. The amount of the credit for the credit period beginning on	30
January 1, 2003, shall equal one-half of the average of the	31
eligible training costs paid or incurred by the taxpayer during	32
calendar years 1998, 1999, and 2000, not to exceed one thousand	33
dollars for each eligible employee on account of whom eligible	34
training costs were paid or incurred by the taxpayer. The amount	35
of the credit for the credit period beginning on January 1, 2004,	36
shall equal one-half of the average of the eligible training costs	37
paid or incurred by the taxpayer during calendar years 2002, 2003,	38
and 2004, not to exceed one thousand dollars for each eligible	39
employee on account of whom eligible training costs were paid or	40
incurred by the taxpayer. The amount of the credit for the credit	41
period beginning on January 1, 2005, shall equal one-half of the	42
average of the eligible training costs paid or incurred by the	43
taxpayer during calendar years 2003, 2004, and 2005, not to exceed	44
one thousand dollars for each eligible employee on account of whom	45
eligible training costs were paid or incurred by the taxpayer. ~~The~~	46
The amount of the credit for the credit period beginning on	47
January 1, 2006, shall equal one-half of the average of the	48
eligible training costs paid or incurred by the taxpayer during	49
calendar years 2004, 2005, and 2006, not to exceed one thousand	50
dollars for each eligible employee on account of whom eligible	51
training costs were paid or incurred by the taxpayer.	52

The credit claimed by a taxpayer each credit period shall not	53
exceed one hundred thousand dollars.	54

A taxpayer shall apply to the director of job and family	55
services for a tax credit certificate in the manner prescribed by	56
division (C) of section 5733.42 of the Revised Code. Divisions (C)	57
to (H) of that section govern the tax credit allowed by this	58
section, except that "credit period" shall be substituted for "tax	59
year with respect to a calendar year" wherever that phrase appears	60
in those divisions and that a taxpayer under this section shall be	61
considered a taxpayer for the purposes of that section.	62

A taxpayer may carry forward the credit allowed under this	63
section to the extent that the credit exceeds the taxpayer's tax	64
due for the credit period. The taxpayer may carry the excess	65
credit forward for three credit periods following the credit	66
period for which the credit is first claimed under this section.	67
The credit allowed by this section is in addition to any credit	68
allowed under section 5729.031 of the Revised Code.	69

(A) "Eligible employee" and "eligible training costs" have	71
the same meanings as in section 5733.42 of the Revised Code.	72

(B) "Credit period" means the calendar year ending on the	73
thirty-first day of December next preceding the day the annual	74
statement is required to be returned under section 5729.02 of the	75
Revised Code.	76

There is hereby allowed a nonrefundable credit against the	77
tax imposed under this chapter for a foreign insurance company for	78
which a tax credit certificate is issued under section 5733.42 of	79
the Revised Code. The credit may be claimed for credit periods	80
beginning on or after January 1, 2003, and ending on or before	81
December 31, ~~2005~~2006. The amount of the credit for the credit	82
period beginning on January 1, 2003, shall equal one-half of the	83
average of the eligible training costs paid or incurred by the	84
company during calendar years 1998, 1999, and 2000, not to exceed	85
one thousand dollars for each eligible employee on account of whom	86
eligible training costs were paid or incurred by the company. The	87
amount of the credit for the credit period beginning on January 1,	88
2004, shall equal one-half of the average of the eligible training	89
costs paid or incurred by the company during calendar years 2002,	90
2003, and 2004, not to exceed one thousand dollars for each	91
eligible employee on account of whom eligible training costs were	92
paid or incurred by the company. The amount of the credit for the	93
credit period beginning on January 1, 2005, shall equal one-half	94
of the average of the eligible training costs paid or incurred by	95
the company during calendar years 2003, 2004, and 2005, not to	96
exceed one thousand dollars for each eligible employee on account	97
of whom eligible training costs were paid or incurred by the	98
company. ~~The~~The amount of the credit for the credit period	99
beginning on January 1, 2006, shall equal one-half of the average	100
of the eligible training costs paid or incurred by the company	101
during calendar years 2004, 2005, and 2006, not to exceed one	102
thousand dollars for each eligible employee on account of whom	103
eligible training costs were paid or incurred by the company.	104

The credit claimed by a company for each credit period shall	105
not exceed one hundred thousand dollars.	106

A foreign insurance company shall apply to the director of	107
job and family services for a tax credit certificate in the manner	108
prescribed by division (C) of section 5733.42 of the Revised Code.	109
Divisions (C) to (H) of that section govern the tax credit allowed	110
by this section, except that "credit period" shall be substituted	111
for "tax year with respect to a calendar year" wherever that	112
phrase appears in those divisions and that the company shall be	113
considered a taxpayer for the purposes of those divisions.	114

A foreign insurance company may carry forward the credit	115
allowed under this section to the extent that the credit exceeds	116
the company's tax due for the credit period. The company may carry	117
the excess credit forward for three credit periods following the	118
credit period for which the credit is first claimed under this	119
section. The credit allowed by this section is in addition to any	120
credit allowed under section 5729.031 of the Revised Code.	121

The reduction in the tax due under this chapter to the extent	122
of the credit allowed by this section does not increase the amount	123
of the tax otherwise due under section 5729.06 of the Revised	124
Code.	125

(1) "Eligible training program" means a program to provide	127
job skills to eligible employees who are unable effectively to	128
function on the job due to skill deficiencies or who would	129
otherwise be displaced because of their skill deficiencies or	130
inability to use new technology, or to provide job skills to	131
eligible employees that enable them to perform other job duties	132
for the taxpayer. Eligible training programs do not include	133
executive, management, or personal enrichment training programs,	134
or training programs intended exclusively for personal career	135
development.	136

(2) "Eligible employee" means an individual who is employed	137
in this state by a taxpayer and has been so employed by the same	138
taxpayer for at least one hundred eighty consecutive days before	139
the day an application for the credit is filed under this section.	140
"Eligible employee" does not include any employee for which a	141
credit is claimed pursuant to division (A)(5) of section 5709.65	142
of the Revised Code for all or any part of the same year, an	143
employee who is not a full-time employee, or executive or	144
managerial personnel, except for the immediate supervisors of	145
nonexecutive, nonmanagerial personnel.	146

(a) Direct instructional costs, such as instructor salaries,	148
materials and supplies, textbooks and manuals, videotapes, and	149
other instructional media and training equipment used exclusively	150
for the purpose of training eligible employees;	151

(b) Wages paid to eligible employees for time devoted	152
exclusively to an eligible training program during normal paid	153
working hours.	154

(4) "Full-time employee" means an individual who is employed	155
for consideration for at least thirty-five hours per week, or who	156
renders any other standard of service generally accepted by custom	157
or specified by contract as full-time employment.	158

(5) "Partnership" includes a limited liability company formed	159
under Chapter 1705. of the Revised Code or under the laws of	160
another state, provided that the company is not classified for	161
federal income tax purposes as an association taxable as a	162
corporation.	163

(B) There is hereby allowed a nonrefundable credit against	164
the tax imposed by section 5733.06 of the Revised Code for	165
taxpayers for which a tax credit certificate is issued under	166
division (C) of this section. The credit may be claimed for tax	167
years 2004, 2005, ~~and~~ 2006, and 2007. The amount of the credit for	168
tax year 2004 shall equal one-half of the average of the eligible	169
training costs paid or incurred by the taxpayer during calendar	170
years 1999, 2000, and 2001, not to exceed one thousand dollars for	171
each eligible employee on account of whom eligible training costs	172
were paid or incurred by the taxpayer during those calendar years.	173
The amount of the credit for tax year 2005 shall equal one-half of	174
the average of the eligible training costs paid or incurred by the	175
taxpayer during calendar years 2002, 2003, and 2004, not to exceed	176
one thousand dollars for each eligible employee on account of whom	177
eligible training costs were paid or incurred by the taxpayer	178
during those calendar years. The amount of the credit for tax year	179
2006 shall equal one-half of the average of the eligible training	180
costs paid or incurred by the taxpayer during calendar years 2003,	181
2004, and 2005, not to exceed one thousand dollars for each	182
eligible employee on account of whom eligible training costs were	183
paid or incurred by the taxpayer during those calendar years. ~~The~~	184
The amount of the credit for tax year 2007 shall equal one-half of	185
the average of the eligible training costs paid or incurred by the	186
taxpayer during calendar years 2004, 2005, and 2006, not to exceed	187
one thousand dollars for each eligible employee on account of whom	188
eligible training costs were paid or incurred by the taxpayer	189
during those calendar years.	190

The credit claimed by a taxpayer each tax year shall not	191
exceed one hundred thousand dollars.	192

(C) A taxpayer who proposes to conduct an eligible training	193
program may apply to the director of job and family services for a	194
tax credit certificate under this section. The taxpayer may apply	195
for such a certificate for tax years 2004, 2005, ~~and~~ 2006, and	196
2007, subject to division (L) of this section. The director shall	197
prescribe the form of the application, which shall require a	198
detailed description of the proposed training program. The	199
director may require applicants to remit an application fee with	200
each application filed with the director. The fee shall not exceed	201
the reasonable and necessary expenses incurred by the director in	202
receiving, reviewing, and approving such applications and issuing	203
tax credit certificates. Proceeds from fees shall be used solely	204
for the purpose of receiving, reviewing, and approving such	205
applications and issuing such certificates.	206

After receipt of an application, the director shall authorize	207
a credit under this section by issuing a tax credit certificate,	208
in the form prescribed by the director, if the director determines	209
all of the following:	210

(1) The proposed training program is an eligible training	211
program under this section;	212

(2) The proposed training program is economically sound and	213
will benefit the people of this state by improving workforce	214
skills and strengthening the economy of this state;	215

(3) Receiving the tax credit is a major factor in the	216
taxpayer's decision to go forward with the training program;	217

(4) Authorization of the credit is consistent with division	218
(H) of this section.	219