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| To amend sections 5747.08 and 5747.98 and to enact | 1 |
| section 5747.72 of the Revised Code to create a | 2 |
| refundable tax credit for nurses who teach nursing | 3 |
| at post-secondary educational institutions and to | 4 |
| declare an emergency. | 5 |
| Section 1. That sections 5747.08 and 5747.98 be amended and | 6 |
| section 5747.72 of the Revised Code be enacted to read as follows: | 7 |
| Sec. 5747.08. An annual return with respect to the tax | 8 |
| imposed by section 5747.02 of the Revised Code and each tax | 9 |
| imposed under Chapter 5748. of the Revised Code shall be made by | 10 |
| every taxpayer for any taxable year for which the taxpayer is | 11 |
| liable for the tax imposed by that section or under that chapter, | 12 |
| unless the total credits allowed under divisions (E), (F), and (G) | 13 |
| of section 5747.05 of the Revised Code for the year are equal to | 14 |
| or exceed the tax imposed by section 5747.02 of the Revised Code, | 15 |
| in which case no return shall be required unless the taxpayer is | 16 |
| liable for a tax imposed pursuant to Chapter 5748. of the Revised | 17 |
| Code. | 18 |
| (A) If an individual is deceased, any return or notice | 19 |
| required of that individual under this chapter shall be made and | 20 |
| filed by that decedent's executor, administrator, or other person | 21 |
| charged with the property of that decedent. | 22 |
| (B) If an individual is unable to make a return or notice | 23 |
| required by this chapter, the return or notice required of that | 24 |
| individual shall be made and filed by the individual's duly | 25 |
| authorized agent, guardian, conservator, fiduciary, or other | 26 |
| person charged with the care of the person or property of that | 27 |
| individual. | 28 |
| (C) Returns or notices required of an estate or a trust shall | 29 |
| be made and filed by the fiduciary of the estate or trust. | 30 |
| (D)(1)(a) Except as otherwise provided in division (D)(1)(b) | 31 |
| of this section, any pass-through entity may file a single return | 32 |
| on behalf of one or more of the entity's investors other than an | 33 |
| investor that is a person subject to the tax imposed under section | 34 |
| 5733.06 of the Revised Code. The single return shall set forth the | 35 |
| name, address, and social security number or other identifying | 36 |
| number of each of those pass-through entity investors and shall | 37 |
| indicate the distributive share of each of those pass-through | 38 |
| entity investor's income taxable in this state in accordance with | 39 |
| sections 5747.20 to 5747.231 of the Revised Code. Such | 40 |
| pass-through entity investors for whom the pass-through entity | 41 |
| elects to file a single return are not entitled to the exemption | 42 |
| or credit provided for by sections 5747.02 and 5747.022 of the | 43 |
| Revised Code; shall calculate the tax before business credits at | 44 |
| the highest rate of tax set forth in section 5747.02 of the | 45 |
| Revised Code for the taxable year for which the return is filed; | 46 |
| and are entitled to only their distributive share of the business | 47 |
| credits as defined in division (D)(2) of this section. A single | 48 |
| check drawn by the pass-through entity shall accompany the return | 49 |
| in full payment of the tax due, as shown on the single return, for | 50 |
| such investors, other than investors who are persons subject to | 51 |
| the tax imposed under section 5733.06 of the Revised Code. | 52 |
| (b)(i) A pass-through entity shall not include in such a | 53 |
| single return any investor that is a trust to the extent that any | 54 |
| direct or indirect current, future, or contingent beneficiary of | 55 |
| the trust is a person subject to the tax imposed under section | 56 |
| 5733.06 of the Revised Code. | 57 |
| (ii) A pass-through entity shall not include in such a single | 58 |
| return any investor that is itself a pass-through entity to the | 59 |
| extent that any direct or indirect investor in the second | 60 |
| pass-through entity is a person subject to the tax imposed under | 61 |
| section 5733.06 of the Revised Code. | 62 |
| (c) Nothing in division (D) of this section precludes the tax | 63 |
| commissioner from requiring such investors to file the return and | 64 |
| make the payment of taxes and related interest, penalty, and | 65 |
| interest penalty required by this section or section 5747.02, | 66 |
| 5747.09, or 5747.15 of the Revised Code. Nothing in division (D) | 67 |
| of this section shall be construed to provide to such an investor | 68 |
| or pass-through entity any additional deduction or credit, other | 69 |
| than the credit provided by division (J) of this section, solely | 70 |
| on account of the entity's filing a return in accordance with this | 71 |
| section. Such a pass-through entity also shall make the filing and | 72 |
| payment of estimated taxes on behalf of the pass-through entity | 73 |
| investors other than an investor that is a person subject to the | 74 |
| tax imposed under section 5733.06 of the Revised Code. | 75 |
| (2) For the purposes of this section, "business credits" | 76 |
| means the credits listed in section 5747.98 of the Revised Code | 77 |
| excluding the following credits: | 78 |
| (a) The retirement credit under division (B) of section | 79 |
| 5747.055 of the Revised Code; | 80 |
| (b) The senior citizen credit under division (C) of section | 81 |
| 5747.05 of the Revised Code; | 82 |
| (c) The lump sum distribution credit under division (D) of | 83 |
| section 5747.05 of the Revised Code; | 84 |
| (d) The dependent care credit under section 5747.054 of the | 85 |
| Revised Code; | 86 |
| (e) The lump sum retirement income credit under division (C) | 87 |
| of section 5747.055 of the Revised Code; | 88 |
| (f) The lump sum retirement income credit under division (D) | 89 |
| of section 5747.055 of the Revised Code; | 90 |
| (g) The lump sum retirement income credit under division (E) | 91 |
| of section 5747.055 of the Revised Code; | 92 |
| (h) The credit for displaced workers who pay for job training | 93 |
| under section 5747.27 of the Revised Code; | 94 |
| (i) The twenty-dollar personal exemption credit under section | 95 |
| 5747.022 of the Revised Code; | 96 |
| (j) The joint filing credit under division (G) of section | 97 |
| 5747.05 of the Revised Code; | 98 |
| (k) The nonresident credit under division (A) of section | 99 |
| 5747.05 of the Revised Code; | 100 |
| (l) The credit for a resident's out-of-state income under | 101 |
| division (B) of section 5747.05 of the Revised Code; | 102 |
| (m) The low-income credit under section 5747.056 of the | 103 |
| Revised Code; | 104 |
| (n) The nursing professor credit under section 5747.72 of the | 105 |
| Revised Code. | 106 |
| (3) The election provided for under division (D) of this | 107 |
| section applies only to the taxable year for which the election is | 108 |
| made by the pass-through entity. Unless the tax commissioner | 109 |
| provides otherwise, this election, once made, is binding and | 110 |
| irrevocable for the taxable year for which the election is made. | 111 |
| Nothing in this division shall be construed to provide for any | 112 |
| deduction or credit that would not be allowable if a nonresident | 113 |
| pass-through entity investor were to file an annual return. | 114 |
| (4) If a pass-through entity makes the election provided for | 115 |
| under division (D) of this section, the pass-through entity shall | 116 |
| be liable for any additional taxes, interest, interest penalty, or | 117 |
| penalties imposed by this chapter if the tax commissioner finds | 118 |
| that the single return does not reflect the correct tax due by the | 119 |
| pass-through entity investors covered by that return. Nothing in | 120 |
| this division shall be construed to limit or alter the liability, | 121 |
| if any, imposed on pass-through entity investors for unpaid or | 122 |
| underpaid taxes, interest, interest penalty, or penalties as a | 123 |
| result of the pass-through entity's making the election provided | 124 |
| for under division (D) of this section. For the purposes of | 125 |
| division (D) of this section, "correct tax due" means the tax that | 126 |
| would have been paid by the pass-through entity had the single | 127 |
| return been filed in a manner reflecting the tax commissioner's | 128 |
| findings. Nothing in division (D) of this section shall be | 129 |
| construed to make or hold a pass-through entity liable for tax | 130 |
| attributable to a pass-through entity investor's income from a | 131 |
| source other than the pass-through entity electing to file the | 132 |
| single return. | 133 |
| (E) If a husband and wife file a joint federal income tax | 134 |
| return for a taxable year, they shall file a joint return under | 135 |
| this section for that taxable year, and their liabilities are | 136 |
| joint and several, but, if the federal income tax liability of | 137 |
| either spouse is determined on a separate federal income tax | 138 |
| return, they shall file separate returns under this section. | 139 |
| If either spouse is not required to file a federal income tax | 140 |
| return and either or both are required to file a return pursuant | 141 |
| to this chapter, they may elect to file separate or joint returns, | 142 |
| and, pursuant to that election, their liabilities are separate or | 143 |
| joint and several. If a husband and wife file separate returns | 144 |
| pursuant to this chapter, each must claim the taxpayer's own | 145 |
| exemption, but not both, as authorized under section 5747.02 of | 146 |
| the Revised Code on the taxpayer's own return. | 147 |
| (F) Each return or notice required to be filed under this | 148 |
| section shall contain the signature of the taxpayer or the | 149 |
| taxpayer's duly authorized agent and of the person who prepared | 150 |
| the return for the taxpayer, and shall include the taxpayer's | 151 |
| social security number. Each return shall be verified by a | 152 |
| declaration under the penalties of perjury. The tax commissioner | 153 |
| shall prescribe the form that the signature and declaration shall | 154 |
| take. | 155 |
| (G) Each return or notice required to be filed under this | 156 |
| section shall be made and filed as required by section 5747.04 of | 157 |
| the Revised Code, on or before the fifteenth day of April of each | 158 |
| year, on forms that the tax commissioner shall prescribe, together | 159 |
| with remittance made payable to the treasurer of state in the | 160 |
| combined amount of the state and all school district income taxes | 161 |
| shown to be due on the form, unless the combined amount shown to | 162 |
| be due is one dollar or less, in which case that amount need not | 163 |
| be remitted. | 164 |
| Upon good cause shown, the tax commissioner may extend the | 165 |
| period for filing any notice or return required to be filed under | 166 |
| this section and may adopt rules relating to extensions. If the | 167 |
| extension results in an extension of time for the payment of any | 168 |
| state or school district income tax liability with respect to | 169 |
| which the return is filed, the taxpayer shall pay at the time the | 170 |
| tax liability is paid an amount of interest computed at the rate | 171 |
| per annum prescribed by section 5703.47 of the Revised Code on | 172 |
| that liability from the time that payment is due without extension | 173 |
| to the time of actual payment. Except as provided in section | 174 |
| 5747.132 of the Revised Code, in addition to all other interest | 175 |
| charges and penalties, all taxes imposed under this chapter or | 176 |
| Chapter 5748. of the Revised Code and remaining unpaid after they | 177 |
| become due, except combined amounts due of one dollar or less, | 178 |
| bear interest at the rate per annum prescribed by section 5703.47 | 179 |
| of the Revised Code until paid or until the day an assessment is | 180 |
| issued under section 5747.13 of the Revised Code, whichever occurs | 181 |
| first. | 182 |
| If the tax commissioner considers it necessary in order to | 183 |
| ensure the payment of the tax imposed by section 5747.02 of the | 184 |
| Revised Code or any tax imposed under Chapter 5748. of the Revised | 185 |
| Code, the tax commissioner may require returns and payments to be | 186 |
| made otherwise than as provided in this section. | 187 |
| To the extent that any provision in this division conflicts | 188 |
| with any provision in section 5747.026 of the Revised Code, the | 189 |
| provision in that section prevails. | 190 |
| (H) If any report, claim, statement, or other document | 191 |
| required to be filed, or any payment required to be made, within a | 192 |
| prescribed period or on or before a prescribed date under this | 193 |
| chapter is delivered after that period or that date by United | 194 |
| States mail to the agency, officer, or office with which the | 195 |
| report, claim, statement, or other document is required to be | 196 |
| filed, or to which the payment is required to be made, the date of | 197 |
| the postmark stamped on the cover in which the report, claim, | 198 |
| statement, or other document, or payment is mailed shall be deemed | 199 |
| to be the date of delivery or the date of payment. | 200 |
| If a payment is required to be made by electronic funds | 201 |
| transfer pursuant to section 5747.072 of the Revised Code, the | 202 |
| payment is considered to be made when the payment is received by | 203 |
| the treasurer of state or credited to an account designated by the | 204 |
| treasurer of state for the receipt of tax payments. | 205 |
| "The date of the postmark" means, in the event there is more | 206 |
| than one date on the cover, the earliest date imprinted on the | 207 |
| cover by the United States postal service. | 208 |
| (I) The amounts withheld by the employer pursuant to section | 209 |
| 5747.06 of the Revised Code shall be allowed to the recipient of | 210 |
| the compensation as credits against payment of the appropriate | 211 |
| taxes imposed on the recipient by section 5747.02 and under | 212 |
| Chapter 5748. of the Revised Code. | 213 |
| (J) If, in accordance with division (D) of this section, a | 214 |
| pass-through entity elects to file a single return and if any | 215 |
| investor is required to file the return and make the payment of | 216 |
| taxes required by this chapter on account of the investor's other | 217 |
| income that is not included in a single return filed by a | 218 |
| pass-through entity, the investor is entitled to a refundable | 219 |
| credit equal to the investor's proportionate share of the tax paid | 220 |
| by the pass-through entity on behalf of the investor. The investor | 221 |
| shall claim the credit for the investor's taxable year in which or | 222 |
| with which ends the taxable year of the pass-through entity. | 223 |
| Nothing in this chapter shall be construed to allow any credit | 224 |
| provided in this chapter to be claimed more than once. For the | 225 |
| purposes of computing any interest, penalty, or interest penalty, | 226 |
| the investor shall be deemed to have paid the refundable credit | 227 |
| provided by this division on the day that the pass-through entity | 228 |
| paid the estimated tax or the tax giving rise to the credit. | 229 |
| Sec. 5747.72. (A) As used in this section: | 230 |
| (1) "Nursing professor" means an individual who is licensed | 231 |
| to practice as a registered nurse under Chapter 4723. of the | 232 |
| Revised Code and is teaching at a post-secondary educational | 233 |
| institution in a program that leads to a diploma or degree in | 234 |
| nursing. | 235 |
| (2) "Post-secondary educational institution" means any | 236 |
| state-assisted college or university as defined in section | 237 |
| 3333.041 of the Revised Code, any nonprofit institution holding a | 238 |
| certificate of authorization pursuant to Chapter 1713. of the | 239 |
| Revised Code, any institution holding a certificate of | 240 |
| registration from the state board of proprietary school | 241 |
| registration issued under Chapter 3332. of the Revised Code, or | 242 |
| any school holding authorization pursuant to Title XLVII of the | 243 |
| Revised Code to offer courses leading to a nursing license. | 244 |
| (B) A refundable credit is allowed against the tax imposed by | 245 |
| section 5747.02 of the Revised Code for a taxpayer who is a | 246 |
| nursing professor during a taxable year. The amount of the credit | 247 |
| shall be as follows: | 248 |
| (1) Three thousand five hundred dollars each taxable year for | 249 |
| four consecutive taxable years; | 250 |
| (2) One thousand seven hundred fifty dollars each taxable | 251 |
| year for two consecutive taxable years after the credit has been | 252 |
| taken in four consecutive taxable years under division (B)(1) of | 253 |
| this section. | 254 |
| A taxpayer may not claim the credit allowed under this | 255 |
| section in taxable year 2020 or thereafter. | 256 |
| (C) The credit under this section shall be claimed in the | 257 |
| order required under section 5747.98 of the Revised Code. If the | 258 |
| amount of the credit under this section exceeds the amount of tax | 259 |
| otherwise due under section 5747.02 of the Revised Code after | 260 |
| deduction of all other credits in that order, the taxpayer is | 261 |
| entitled to a refund of the excess. | 262 |
| (D) The tax commissioner may require a taxpayer to furnish | 263 |
| such information as is necessary to support a claim for a credit | 264 |
| under this section, and no credit shall be allowed unless the | 265 |
| information is provided. | 266 |
| Sec. 5747.98. (A) To provide a uniform procedure for | 267 |
| calculating the amount of tax due under section 5747.02 of the | 268 |
| Revised Code, a taxpayer shall claim any credits to which the | 269 |
| taxpayer is entitled in the following order: | 270 |
| (1) The retirement income credit under division (B) of | 271 |
| section 5747.055 of the Revised Code; | 272 |
| (2) The senior citizen credit under division (C) of section | 273 |
| 5747.05 of the Revised Code; | 274 |
| (3) The lump sum distribution credit under division (D) of | 275 |
| section 5747.05 of the Revised Code; | 276 |
| (4) The dependent care credit under section 5747.054 of the | 277 |
| Revised Code; | 278 |
| (5) The lump sum retirement income credit under division (C) | 279 |
| of section 5747.055 of the Revised Code; | 280 |
| (6) The lump sum retirement income credit under division (D) | 281 |
| of section 5747.055 of the Revised Code; | 282 |
| (7) The lump sum retirement income credit under division (E) | 283 |
| of section 5747.055 of the Revised Code; | 284 |
| (8) The low-income credit under section 5747.056 of the | 285 |
| Revised Code; | 286 |
| (9) The credit for displaced workers who pay for job training | 287 |
| under section 5747.27 of the Revised Code; | 288 |
| (10) The campaign contribution credit under section 5747.29 | 289 |
| of the Revised Code; | 290 |
| (11) The twenty-dollar personal exemption credit under | 291 |
| section 5747.022 of the Revised Code; | 292 |
| (12) The joint filing credit under division (G) of section | 293 |
| 5747.05 of the Revised Code; | 294 |
| (13) The nonresident credit under division (A) of section | 295 |
| 5747.05 of the Revised Code; | 296 |
| (14) The credit for a resident's out-of-state income under | 297 |
| division (B) of section 5747.05 of the Revised Code; | 298 |
| (15) The credit for employers that enter into agreements with | 299 |
| child day-care centers under section 5747.34 of the Revised Code; | 300 |
| (16) The credit for employers that reimburse employee child | 301 |
| care expenses under section 5747.36 of the Revised Code; | 302 |
| (17) The credit for adoption of a minor child under section | 303 |
| 5747.37 of the Revised Code; | 304 |
| (18) The credit for purchases of lights and reflectors under | 305 |
| section 5747.38 of the Revised Code; | 306 |
| (19) The job retention credit under division (B) of section | 307 |
| 5747.058 of the Revised Code; | 308 |
| (20) The credit for purchases of new manufacturing machinery | 309 |
| and equipment under section 5747.26 or section 5747.261 of the | 310 |
| Revised Code; | 311 |
| (21) The second credit for purchases of new manufacturing | 312 |
| machinery and equipment and the credit for using Ohio coal under | 313 |
| section 5747.31 of the Revised Code; | 314 |
| (22) The job training credit under section 5747.39 of the | 315 |
| Revised Code; | 316 |
| (23) The enterprise zone credit under section 5709.66 of the | 317 |
| Revised Code; | 318 |
| (24) The credit for the eligible costs associated with a | 319 |
| voluntary action under section 5747.32 of the Revised Code; | 320 |
| (25) The credit for employers that establish on-site child | 321 |
| day-care centers under section 5747.35 of the Revised Code; | 322 |
| (26) The ethanol plant investment credit under section | 323 |
| 5747.75 of the Revised Code; | 324 |
| (27) The credit for purchases of qualifying grape production | 325 |
| property under section 5747.28 of the Revised Code; | 326 |
| (28) The export sales credit under section 5747.057 of the | 327 |
| Revised Code; | 328 |
| (29) The credit for research and development and technology | 329 |
| transfer investors under section 5747.33 of the Revised Code; | 330 |
| (30) The enterprise zone credits under section 5709.65 of the | 331 |
| Revised Code; | 332 |
| (31) The research and development credit under section | 333 |
| 5747.331 of the Revised Code; | 334 |
| (32) The refundable jobs creation credit under division (A) | 335 |
| of section 5747.058 of the Revised Code; | 336 |
| (33) The refundable credit for taxes paid by a qualifying | 337 |
| entity granted under section 5747.059 of the Revised Code; | 338 |
| (34) The refundable credits for taxes paid by a qualifying | 339 |
| pass-through entity granted under division (J) of section 5747.08 | 340 |
| of the Revised Code; | 341 |
| (35) The refundable credit for tax withheld under division | 342 |
| (B)(1) of section 5747.062 of the Revised Code; | 343 |
| (36) The refundable nursing professor credit under section | 344 |
| 5747.72 of the Revised Code; | 345 |
| (37) The refundable credit under section 5747.80 of the | 346 |
| Revised Code for losses on loans made to the Ohio venture capital | 347 |
| program under sections 150.01 to 150.10 of the Revised Code. | 348 |
| (B) For any credit, except the credits enumerated in | 349 |
| divisions (A)(32) to | 350 |
| granted under division (I) of section 5747.08 of the Revised Code, | 351 |
| the amount of the credit for a taxable year shall not exceed the | 352 |
| tax due after allowing for any other credit that precedes it in | 353 |
| the order required under this section. Any excess amount of a | 354 |
| particular credit may be carried forward if authorized under the | 355 |
| section creating that credit. Nothing in this chapter shall be | 356 |
| construed to allow a taxpayer to claim, directly or indirectly, a | 357 |
| credit more than once for a taxable year. | 358 |
| Section 2. That existing sections 5747.08 and 5747.98 of the | 359 |
| Revised Code are hereby repealed. | 360 |
| Section 3. The amendment by this act of sections 5747.08 and | 361 |
| 5747.98 of the Revised Code, and the enactment by this act of | 362 |
| section 5747.72 of the Revised Code, apply to taxable years | 363 |
| beginning on or after January 1, 2007. | 364 |
| Section 4. This act is hereby declared to be an emergency | 365 |
| measure necessary for the immediate preservation of the public | 366 |
| peace, health, and safety. The reason for such necessity is to | 367 |
| protect the health of the citizens of Ohio by alleviating the | 368 |
| shortage of nursing professors. Therefore, this act shall go into | 369 |
| immediate effect. | 370 |