H. B. No. 17 As Introduced

As Introduced

127th General Assembly

Regular Session

2007-2008

H. B. No. 17

Representative Foley

Cosponsors: Representatives Skindell, McGregor, J., Brown, Brady, Koziura, Chandler, Stewart, D.

A BILL

To amend section 5747.98 and to enact section 5747.71 1
of the Revised Code to grant a state earned income 2
tax credit equal to a percentage of the federal 3
earned income tax credit. 4

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

       Section 1. That section 5747.98 be amended and section 5
5747.71 of the Revised Code be enacted to read as follows: 6

       Sec. 5747.71. For taxable years beginning on or after 7
January 1, 2009, there is hereby allowed a refundable credit 8
against the tax imposed by section 5747.02 of the Revised Code for 9
a taxpayer who is an "eligible individual," as defined in section 10
32 of the Internal Revenue Code. The credit shall equal five per 11
cent of the credit allowed on the taxpayer's federal income tax 12
return pursuant to section 32 of the Internal Revenue Code for 13
taxable years beginning in 2009, and ten per cent for taxable 14
years beginning in 2010 or thereafter. If an earned income 15
eligibility certificate with respect to the taxpayer is in effect 16
during the taxpayer's taxable year pursuant to section 3507 of the 17
Internal Revenue Code, the credit shall equal five per cent of the 18
amount of advance payments of the earned income credit made by the 19
employer pursuant to that section during the taxpayer's taxable 20
year beginning in 2009, and ten per cent of the amount of advance 21
payments made during the taxpayer's taxable years beginning in 22
2010 or thereafter. The credit shall be claimed in the order 23
prescribed by section 5747.98 of the Revised Code. If the amount 24
of the credit exceeds the amount of tax due after deducting all 25
other credits that precede the credit allowed by this section in 26
that order, the taxpayer shall receive a refund of the excess. 27

       Sec. 5747.98. (A) To provide a uniform procedure for 28
calculating the amount of tax due under section 5747.02 of the 29
Revised Code, a taxpayer shall claim any credits to which the 30
taxpayer is entitled in the following order: 31

       (1) The retirement income credit under division (B) of 32
section 5747.055 of the Revised Code; 33

       (2) The senior citizen credit under division (C) of section 34
5747.05 of the Revised Code; 35

       (3) The lump sum distribution credit under division (D) of 36
section 5747.05 of the Revised Code; 37

       (4) The dependent care credit under section 5747.054 of the 38
Revised Code; 39

       (5) The lump sum retirement income credit under division (C) 40
of section 5747.055 of the Revised Code; 41

       (6) The lump sum retirement income credit under division (D) 42
of section 5747.055 of the Revised Code; 43

       (7) The lump sum retirement income credit under division (E) 44
of section 5747.055 of the Revised Code; 45

       (8) The low-income credit under section 5747.056 of the 46
Revised Code; 47

       (9) The credit for displaced workers who pay for job training 48
under section 5747.27 of the Revised Code; 49

       (10) The campaign contribution credit under section 5747.29 50
of the Revised Code; 51

       (11) The twenty-dollar personal exemption credit under 52
section 5747.022 of the Revised Code; 53

       (12) The joint filing credit under division (G) of section 54
5747.05 of the Revised Code; 55

       (13) The nonresident credit under division (A) of section 56
5747.05 of the Revised Code; 57

       (14) The credit for a resident's out-of-state income under 58
division (B) of section 5747.05 of the Revised Code; 59

       (15) The credit for employers that enter into agreements with 60
child day-care centers under section 5747.34 of the Revised Code; 61

       (16) The credit for employers that reimburse employee child 62
care expenses under section 5747.36 of the Revised Code; 63

       (17) The credit for adoption of a minor child under section 64
5747.37 of the Revised Code; 65

       (18) The credit for purchases of lights and reflectors under 66
section 5747.38 of the Revised Code; 67

       (19) The job retention credit under division (B) of section 68
5747.058 of the Revised Code; 69

       (20) The credit for purchases of new manufacturing machinery 70
and equipment under section 5747.26 or section 5747.261 of the 71
Revised Code; 72

       (21) The second credit for purchases of new manufacturing 73
machinery and equipment and the credit for using Ohio coal under 74
section 5747.31 of the Revised Code; 75

       (22) The job training credit under section 5747.39 of the 76
Revised Code; 77

       (23) The enterprise zone credit under section 5709.66 of the 78
Revised Code; 79

       (24) The credit for the eligible costs associated with a 80
voluntary action under section 5747.32 of the Revised Code; 81

       (25) The credit for employers that establish on-site child 82
day-care centers under section 5747.35 of the Revised Code; 83

       (26) The ethanol plant investment credit under section 84
5747.75 of the Revised Code; 85

       (27) The credit for purchases of qualifying grape production 86
property under section 5747.28 of the Revised Code; 87

       (28) The export sales credit under section 5747.057 of the 88
Revised Code; 89

       (29) The credit for research and development and technology 90
transfer investors under section 5747.33 of the Revised Code; 91

       (30) The enterprise zone credits under section 5709.65 of the 92
Revised Code; 93

       (31) The research and development credit under section 94
5747.331 of the Revised Code; 95

       (32) The refundable jobs creation credit under division (A) 96
of section 5747.058 of the Revised Code; 97

       (33) The refundable credit for taxes paid by a qualifying 98
entity granted under section 5747.059 of the Revised Code; 99

       (34) The refundable credits for taxes paid by a qualifying 100
pass-through entity granted under division (J) of section 5747.08 101
of the Revised Code; 102

       (35) The refundable credit for tax withheld under division 103
(B)(1) of section 5747.062 of the Revised Code; 104

       (36) The refundable credit under section 5747.80 of the 105
Revised Code for losses on loans made to the Ohio venture capital 106
program under sections 150.01 to 150.10 of the Revised Code; 107

       (37) The refundable earned income tax credit under section 108
5747.71 of the Revised Code. 109

       (B) For any credit, except the credits enumerated in 110
divisions (A)(32) to ~~(36)~~(37) of this section and the credit 111
granted under division (I) of section 5747.08 of the Revised Code, 112
the amount of the credit for a taxable year shall not exceed the 113
tax due after allowing for any other credit that precedes it in 114
the order required under this section. Any excess amount of a 115
particular credit may be carried forward if authorized under the 116
section creating that credit. Nothing in this chapter shall be 117
construed to allow a taxpayer to claim, directly or indirectly, a 118
credit more than once for a taxable year. 119

       Section 2. That existing section 5747.98 of the Revised Code 120
is hereby repealed. 121

Section 1. That section 5747.98 be amended and section	5
5747.71 of the Revised Code be enacted to read as follows:	6

Sec. 5747.71. For taxable years beginning on or after	7
January 1, 2009, there is hereby allowed a refundable credit	8
against the tax imposed by section 5747.02 of the Revised Code for	9
a taxpayer who is an "eligible individual," as defined in section	10
32 of the Internal Revenue Code. The credit shall equal five per	11
cent of the credit allowed on the taxpayer's federal income tax	12
return pursuant to section 32 of the Internal Revenue Code for	13
taxable years beginning in 2009, and ten per cent for taxable	14
years beginning in 2010 or thereafter. If an earned income	15
eligibility certificate with respect to the taxpayer is in effect	16
during the taxpayer's taxable year pursuant to section 3507 of the	17
Internal Revenue Code, the credit shall equal five per cent of the	18
amount of advance payments of the earned income credit made by the	19
employer pursuant to that section during the taxpayer's taxable	20
year beginning in 2009, and ten per cent of the amount of advance	21
payments made during the taxpayer's taxable years beginning in	22
2010 or thereafter. The credit shall be claimed in the order	23
prescribed by section 5747.98 of the Revised Code. If the amount	24
of the credit exceeds the amount of tax due after deducting all	25
other credits that precede the credit allowed by this section in	26
that order, the taxpayer shall receive a refund of the excess.	27

Sec. 5747.98. (A) To provide a uniform procedure for	28
calculating the amount of tax due under section 5747.02 of the	29
Revised Code, a taxpayer shall claim any credits to which the	30
taxpayer is entitled in the following order:	31

(1) The retirement income credit under division (B) of	32
section 5747.055 of the Revised Code;	33

(2) The senior citizen credit under division (C) of section	34
5747.05 of the Revised Code;	35

(3) The lump sum distribution credit under division (D) of	36
section 5747.05 of the Revised Code;	37

(4) The dependent care credit under section 5747.054 of the	38
Revised Code;	39

(5) The lump sum retirement income credit under division (C)	40
of section 5747.055 of the Revised Code;	41

(6) The lump sum retirement income credit under division (D)	42
of section 5747.055 of the Revised Code;	43

(7) The lump sum retirement income credit under division (E)	44
of section 5747.055 of the Revised Code;	45

(8) The low-income credit under section 5747.056 of the	46
Revised Code;	47

(9) The credit for displaced workers who pay for job training	48
under section 5747.27 of the Revised Code;	49

(10) The campaign contribution credit under section 5747.29	50
of the Revised Code;	51

(11) The twenty-dollar personal exemption credit under	52
section 5747.022 of the Revised Code;	53

(12) The joint filing credit under division (G) of section	54
5747.05 of the Revised Code;	55

(13) The nonresident credit under division (A) of section	56
5747.05 of the Revised Code;	57

(14) The credit for a resident's out-of-state income under	58
division (B) of section 5747.05 of the Revised Code;	59

(15) The credit for employers that enter into agreements with	60
child day-care centers under section 5747.34 of the Revised Code;	61

(16) The credit for employers that reimburse employee child	62
care expenses under section 5747.36 of the Revised Code;	63

(17) The credit for adoption of a minor child under section	64
5747.37 of the Revised Code;	65

(18) The credit for purchases of lights and reflectors under	66
section 5747.38 of the Revised Code;	67

(19) The job retention credit under division (B) of section	68
5747.058 of the Revised Code;	69

(20) The credit for purchases of new manufacturing machinery	70
and equipment under section 5747.26 or section 5747.261 of the	71
Revised Code;	72

(21) The second credit for purchases of new manufacturing	73
machinery and equipment and the credit for using Ohio coal under	74
section 5747.31 of the Revised Code;	75

(22) The job training credit under section 5747.39 of the	76
Revised Code;	77

(23) The enterprise zone credit under section 5709.66 of the	78
Revised Code;	79

(24) The credit for the eligible costs associated with a	80
voluntary action under section 5747.32 of the Revised Code;	81

(25) The credit for employers that establish on-site child	82
day-care centers under section 5747.35 of the Revised Code;	83

(26) The ethanol plant investment credit under section	84
5747.75 of the Revised Code;	85

(27) The credit for purchases of qualifying grape production	86
property under section 5747.28 of the Revised Code;	87