As Introduced

127th General Assembly Regular Session 2007-2008

S. B. No. 198

Senator Mason 

Cosponsors: Senators Stivers, Boccieri, Fedor, Schuring, Miller, R. 

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A BILL

To amend sections 1551.20, 4933.32, 5747.08, 5747.98,

1

and 5751.98 and to enact sections 5747.81 and

2

5751.54 of the Revised Code to create tax credits

3

for investing in renewable energy property.

4

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

Section 1. That sections 1551.20, 4933.32, 5747.08, 5747.98,	5
and 5751.98 be amended and sections 5747.81 and 5751.54 of the	6
Revised Code be enacted to read as follows:	7

Sec. 1551.20.  (A) As used in this section, "solar or wind	8
energy system""renewable energy property" means any method used	9
directly to provide space heating or cooling, hot water,	10
industrial process heat, or mechanical or electric power by the	11
collection, conversion, or storage of solar or wind energy	12
including, but not limited to, active or passive solar systems. It	13
does not include any equipment that is part of a conventional	14
system for such purposes, that is, a system that does not use	15
solar or wind energy; nor does it include a roof or any windows or	16
walls that would be contained in a similar structure not designed	17
or modified to use solar energy for space heating or cooling,	18
except for those modifications to the design or construction of	19
such roof, windows, or walls that are necessary to their improved	20
use to capture solar energy for space heating or cooling.	21

As used in this section, "hydrothermal energy system" means	22
any method used directly to provide a heating or cooling effect by	23
causing a thermal exchange with the earth utilizing any water	24
source, including ground or surface water by use of appropriate	25
heat exchange equipmentthe property described in division (A)(4)	26
of section 5751.54 of the Revised Code.	27

(B) The director of development shall adopt rules in	28
accordance with Chapter 119. of the Revised Code establishing	29
guidelines for identifying solar, wind, or hydrothermal energy	30
systems and components thereof, and guidelines for the safety and	31
thermal efficiency of such systemsrenewable energy property. The	32
rules shall distinguish such systemsrenewable energy property	33
from conventional systems and components thereof, and shall	34
distinguish from conventional roof, window, or wall design or	35
construction those modifications to the design or construction of	36
roofs, windows, or walls that are necessary to their improved use	37
to capture solar energy for space heating or cooling. The rules	38
shall determine the eligibility of solar, wind, and hydrothermal	39
energy systemsrenewable energy property for the tax exemption	40
credits under section 5709.53sections 5747.81 and 5751.54 of the	41
Revised Code.	42

(C) At the request of any person who designs, manufactures,	43
installs, or constructs solar, wind, or hydrothermal energy	44
systemsrenewable energy property, the director shall review the	45
detailed construction plans and design calculations for any such	46
systemproperty to determine whether the systemproperty complies	47
with the guidelines adopted under division (B) of this section. If	48
the systemproperty complies with the guidelines, the director	49
shall enter the name of the systemproperty on a list of solar,	50
wind, or hydrothermal energy systemsrenewable energy property	51
eligible for the tax exemptioncredits under section 5709.53	52
sections 5747.81 and 5751.54 of the Revised Code.	53

(D) At the request of any person who desires to design or	54
install a solar, wind, or hydrothermal energy systemrenewable	55
energy property for histhe person's own use, the director shall	56
review the plans for or a narrative description of the system	57
property, and the list of components and materials to be	58
incorporated therein to determine whether the systemproperty	59
complies with the guidelines adopted under division (B) of this	60
section. If the systemproperty complies, the director shall issue	61
a certificate to that effect to the applicant.	62

Sec. 4933.32.  Every portion of the schedule of an electric	63
light, natural gas, and gas company and every order of the public	64
utilities commission relating to curtailment of residential	65
service by such a company shall apply uniformly to all residential	66
consumers, as defined in section 4911.01 of the Revised Code, and	67
shall not distinguish as to whether the residence of such	68
consumers utilizes a solar, wind, or hydrothermal energy system	69
renewable energy property, as defined in section 1551.20 of the	70
Revised Code.	71

Sec. 5747.08.  An annual return with respect to the tax	72
imposed by section 5747.02 of the Revised Code and each tax	73
imposed under Chapter 5748. of the Revised Code shall be made by	74
every taxpayer for any taxable year for which the taxpayer is	75
liable for the tax imposed by that section or under that chapter,	76
unless the total credits allowed under divisions (E), (F), and (G)	77
of section 5747.05 of the Revised Code for the year are equal to	78
or exceed the tax imposed by section 5747.02 of the Revised Code,	79
in which case no return shall be required unless the taxpayer is	80
liable for a tax imposed pursuant to Chapter 5748. of the Revised	81
Code.	82

(A) If an individual is deceased, any return or notice	83
required of that individual under this chapter shall be made and	84
filed by that decedent's executor, administrator, or other person	85
charged with the property of that decedent.	86

(B) If an individual is unable to make a return or notice	87
required by this chapter, the return or notice required of that	88
individual shall be made and filed by the individual's duly	89
authorized agent, guardian, conservator, fiduciary, or other	90
person charged with the care of the person or property of that	91
individual.	92

(C) Returns or notices required of an estate or a trust shall	93
be made and filed by the fiduciary of the estate or trust.	94

(D)(1)(a) Except as otherwise provided in division (D)(1)(b)	95
of this section, any pass-through entity may file a single return	96
on behalf of one or more of the entity's investors other than an	97
investor that is a person subject to the tax imposed under section	98
5733.06 of the Revised Code. The single return shall set forth the	99
name, address, and social security number or other identifying	100
number of each of those pass-through entity investors and shall	101
indicate the distributive share of each of those pass-through	102
entity investor's income taxable in this state in accordance with	103
sections 5747.20 to 5747.231 of the Revised Code. Such	104
pass-through entity investors for whom the pass-through entity	105
elects to file a single return are not entitled to the exemption	106
or credit provided for by sections 5747.02 and 5747.022 of the	107
Revised Code; shall calculate the tax before business credits at	108
the highest rate of tax set forth in section 5747.02 of the	109
Revised Code for the taxable year for which the return is filed;	110
and are entitled to only their distributive share of the business	111
credits as defined in division (D)(2) of this section. A single	112
check drawn by the pass-through entity shall accompany the return	113
in full payment of the tax due, as shown on the single return, for	114
such investors, other than investors who are persons subject to	115
the tax imposed under section 5733.06 of the Revised Code.	116

(b)(i) A pass-through entity shall not include in such a	117
single return any investor that is a trust to the extent that any	118
direct or indirect current, future, or contingent beneficiary of	119
the trust is a person subject to the tax imposed under section	120
5733.06 of the Revised Code.	121

(ii) A pass-through entity shall not include in such a single	122
return any investor that is itself a pass-through entity to the	123
extent that any direct or indirect investor in the second	124
pass-through entity is a person subject to the tax imposed under	125
section 5733.06 of the Revised Code.	126

(c) Nothing in division (D) of this section precludes the tax	127
commissioner from requiring such investors to file the return and	128
make the payment of taxes and related interest, penalty, and	129
interest penalty required by this section or section 5747.02,	130
5747.09, or 5747.15 of the Revised Code. Nothing in division (D)	131
of this section shall be construed to provide to such an investor	132
or pass-through entity any additional deduction or credit, other	133
than the credit provided by division (J) of this section, solely	134
on account of the entity's filing a return in accordance with this	135
section. Such a pass-through entity also shall make the filing and	136
payment of estimated taxes on behalf of the pass-through entity	137
investors other than an investor that is a person subject to the	138
tax imposed under section 5733.06 of the Revised Code.	139

(2) For the purposes of this section, "business credits"	140
means the credits listed in section 5747.98 of the Revised Code	141
excluding the following credits:	142

(a) The retirement credit under division (B) of section	143
5747.055 of the Revised Code;	144

(b) The senior citizen credit under division (C) of section	145
5747.05 of the Revised Code;	146

(c) The lump sum distribution credit under division (D) of	147
section 5747.05 of the Revised Code;	148

(d) The dependent care credit under section 5747.054 of the	149
Revised Code;	150

(e) The lump sum retirement income credit under division (C)	151
of section 5747.055 of the Revised Code;	152

(f) The lump sum retirement income credit under division (D)	153
of section 5747.055 of the Revised Code;	154

(g) The lump sum retirement income credit under division (E)	155
of section 5747.055 of the Revised Code;	156

(h) The credit for displaced workers who pay for job training	157
under section 5747.27 of the Revised Code;	158

(i) The twenty-dollar personal exemption credit under section	159
5747.022 of the Revised Code;	160

(j) The joint filing credit under division (G) of section	161
5747.05 of the Revised Code;	162

(k) The nonresident credit under division (A) of section	163
5747.05 of the Revised Code;	164

(l) The credit for a resident's out-of-state income under	165
division (B) of section 5747.05 of the Revised Code;	166

(m) The low-income credit under section 5747.056 of the	167
Revised Code;	168

(n) The credit for investing in renewable energy property	169
under section 5747.81 of the Revised Code.	170

(3) The election provided for under division (D) of this	171
section applies only to the taxable year for which the election is	172
made by the pass-through entity. Unless the tax commissioner	173
provides otherwise, this election, once made, is binding and	174
irrevocable for the taxable year for which the election is made.	175
Nothing in this division shall be construed to provide for any	176
deduction or credit that would not be allowable if a nonresident	177
pass-through entity investor were to file an annual return.	178

(4) If a pass-through entity makes the election provided for	179
under division (D) of this section, the pass-through entity shall	180
be liable for any additional taxes, interest, interest penalty, or	181
penalties imposed by this chapter if the tax commissioner finds	182
that the single return does not reflect the correct tax due by the	183
pass-through entity investors covered by that return. Nothing in	184
this division shall be construed to limit or alter the liability,	185
if any, imposed on pass-through entity investors for unpaid or	186
underpaid taxes, interest, interest penalty, or penalties as a	187
result of the pass-through entity's making the election provided	188
for under division (D) of this section. For the purposes of	189
division (D) of this section, "correct tax due" means the tax that	190
would have been paid by the pass-through entity had the single	191
return been filed in a manner reflecting the tax commissioner's	192
findings. Nothing in division (D) of this section shall be	193
construed to make or hold a pass-through entity liable for tax	194
attributable to a pass-through entity investor's income from a	195
source other than the pass-through entity electing to file the	196
single return.	197

(E) If a husband and wife file a joint federal income tax	198
return for a taxable year, they shall file a joint return under	199
this section for that taxable year, and their liabilities are	200
joint and several, but, if the federal income tax liability of	201
either spouse is determined on a separate federal income tax	202
return, they shall file separate returns under this section.	203

If either spouse is not required to file a federal income tax	204
return and either or both are required to file a return pursuant	205
to this chapter, they may elect to file separate or joint returns,	206
and, pursuant to that election, their liabilities are separate or	207
joint and several. If a husband and wife file separate returns	208
pursuant to this chapter, each must claim the taxpayer's own	209
exemption, but not both, as authorized under section 5747.02 of	210
the Revised Code on the taxpayer's own return.	211

(F) Each return or notice required to be filed under this	212
section shall contain the signature of the taxpayer or the	213
taxpayer's duly authorized agent and of the person who prepared	214
the return for the taxpayer, and shall include the taxpayer's	215
social security number. Each return shall be verified by a	216
declaration under the penalties of perjury. The tax commissioner	217
shall prescribe the form that the signature and declaration shall	218
take.	219

(G) Each return or notice required to be filed under this	220
section shall be made and filed as required by section 5747.04 of	221
the Revised Code, on or before the fifteenth day of April of each	222
year, on forms that the tax commissioner shall prescribe, together	223
with remittance made payable to the treasurer of state in the	224
combined amount of the state and all school district income taxes	225
shown to be due on the form, unless the combined amount shown to	226
be due is one dollar or less, in which case that amount need not	227
be remitted.	228

Upon good cause shown, the tax commissioner may extend the	229
period for filing any notice or return required to be filed under	230
this section and may adopt rules relating to extensions. If the	231
extension results in an extension of time for the payment of any	232
state or school district income tax liability with respect to	233
which the return is filed, the taxpayer shall pay at the time the	234
tax liability is paid an amount of interest computed at the rate	235
per annum prescribed by section 5703.47 of the Revised Code on	236
that liability from the time that payment is due without extension	237
to the time of actual payment. Except as provided in section	238
5747.132 of the Revised Code, in addition to all other interest	239
charges and penalties, all taxes imposed under this chapter or	240
Chapter 5748. of the Revised Code and remaining unpaid after they	241
become due, except combined amounts due of one dollar or less,	242
bear interest at the rate per annum prescribed by section 5703.47	243
of the Revised Code until paid or until the day an assessment is	244
issued under section 5747.13 of the Revised Code, whichever occurs	245
first.	246

If the tax commissioner considers it necessary in order to	247
ensure the payment of the tax imposed by section 5747.02 of the	248
Revised Code or any tax imposed under Chapter 5748. of the Revised	249
Code, the tax commissioner may require returns and payments to be	250
made otherwise than as provided in this section.	251

To the extent that any provision in this division conflicts	252
with any provision in section 5747.026 of the Revised Code, the	253
provision in that section prevails.	254

(H) If any report, claim, statement, or other document	255
required to be filed, or any payment required to be made, within a	256
prescribed period or on or before a prescribed date under this	257
chapter is delivered after that period or that date by United	258
States mail to the agency, officer, or office with which the	259
report, claim, statement, or other document is required to be	260
filed, or to which the payment is required to be made, the date of	261
the postmark stamped on the cover in which the report, claim,	262
statement, or other document, or payment is mailed shall be deemed	263
to be the date of delivery or the date of payment.	264

If a payment is required to be made by electronic funds	265
transfer pursuant to section 5747.072 of the Revised Code, the	266
payment is considered to be made when the payment is received by	267
the treasurer of state or credited to an account designated by the	268
treasurer of state for the receipt of tax payments.	269

"The date of the postmark" means, in the event there is more	270
than one date on the cover, the earliest date imprinted on the	271
cover by the United States postal service.	272

(I) The amounts withheld by the employer pursuant to section	273
5747.06 of the Revised Code shall be allowed to the recipient of	274
the compensation as credits against payment of the appropriate	275
taxes imposed on the recipient by section 5747.02 and under	276
Chapter 5748. of the Revised Code.	277

(J) If, in accordance with division (D) of this section, a	278
pass-through entity elects to file a single return and if any	279
investor is required to file the return and make the payment of	280
taxes required by this chapter on account of the investor's other	281
income that is not included in a single return filed by a	282
pass-through entity, the investor is entitled to a refundable	283
credit equal to the investor's proportionate share of the tax paid	284
by the pass-through entity on behalf of the investor. The investor	285
shall claim the credit for the investor's taxable year in which or	286
with which ends the taxable year of the pass-through entity.	287
Nothing in this chapter shall be construed to allow any credit	288
provided in this chapter to be claimed more than once. For the	289
purposes of computing any interest, penalty, or interest penalty,	290
the investor shall be deemed to have paid the refundable credit	291
provided by this division on the day that the pass-through entity	292
paid the estimated tax or the tax giving rise to the credit.	293

Sec. 5747.81. (A) As used in this section, "renewable energy	294
property" includes:	295

(1) Equipment that uses solar radiation in lieu of	296
traditional energy sources to heat water; actively heat or cool	297
spaces; passively heat spaces; illuminate; generate electricity;	298
distill liquids; desalinate; or detoxify, including related	299
devices used to collect, store, exchange, or condition solar	300
energy, or convert solar energy to other useful forms of energy;	301
and	302

(2) Equipment used to capture and convert wind energy into	303
electricity or mechanical power, including related devices used to	304
convert, condition, and store the electricity produced.	305

(B) For taxable years beginning on or after January 1, 2007,	306
there is hereby allowed a nonrefundable credit against the tax	307
imposed by section 5747.02 of the Revised Code for the cost of	308
renewable energy property constructed, purchased, or leased and	309
placed into service during the taxable year with respect to a	310
dwelling owned and occupied by the taxpayer as the taxpayer's	311
principal place of residence during the taxable year. The credit	312
allowed under this section may be claimed for renewable energy	313
property placed into service with respect to no more than one	314
dwelling owned and occupied by the taxpayer during the taxable	315
year. The credit may be claimed only if the renewable energy	316
property complies with the guidelines established by the director	317
of development under section 1551.20 of the Revised Code. Subject	318
to the limitations prescribed in division (D) of this section, the	319
credit shall equal thirty-five per cent of the cost of the	320
renewable energy property constructed, purchased, or leased during	321
the taxable year to the extent those costs are not compensated for	322
by public grants.	323

(C) A taxpayer shall not claim the credit allowed under this	324
section for any renewable energy property if, prior to claiming	325
the credit on the return required to be filed under section	326
5747.08 of the Revised Code, the taxpayer disposes of the	327
property, takes the property out of service, or removes the	328
property from this state.	329

(D) The total amount of credit claimed under this section for	330
renewable energy property placed into service during any taxable	331
year shall not exceed:	332

(1) One thousand four hundred dollars for a dwelling served	333
by renewable energy property that heats domestic water by solar	334
energy;	335

(2) Three thousand five hundred dollars for a dwelling served	336
by renewable energy property that uses solar energy to provide	337
active space heating, combined active space and domestic water	338
heating, or passive space heating;	339

(3) Ten thousand dollars for a dwelling served by any other	340
renewable energy property.	341

(E) The credit shall be claimed in the order required under	342
section 5747.98 of the Revised Code. The credit, to the extent it	343
exceeds the taxpayer's tax liability after allowance for any other	344
credits that precede the credit under this section in that order,	345
shall be carried forward to succeeding taxable years until fully	346
utilized, provided that the taxpayer shall deduct the amount of	347
the excess credit allowed in any taxable year from the balance	348
carried forward to the next taxable year.	349

(F) A taxpayer that claims the credit allowed under this	350
section for renewable energy property leased from another person	351
shall obtain a written certification from the lessor that the	352
lessor will not claim the credit allowed under this section or the	353
credit allowed under section 5751.54 of the Revised Code with	354
respect to that property for any taxable year, in the case of a	355
credit allowed under this section, or tax period included in a	356
taxable year, in the case of a credit under section 5751.54 of the	357
Revised Code, for which the taxpayer claims the credit under this	358
section. The lessor or the lessor's authorized agent shall sign	359
the certification. The taxpayer shall make the certification	360
available to the tax commissioner upon the commissioner's request.	361

Sec. 5747.98.  (A) To provide a uniform procedure for	362
calculating the amount of tax due under section 5747.02 of the	363
Revised Code, a taxpayer shall claim any credits to which the	364
taxpayer is entitled in the following order:	365

(1) The retirement income credit under division (B) of	366
section 5747.055 of the Revised Code;	367

(2) The senior citizen credit under division (C) of section	368
5747.05 of the Revised Code;	369

(3) The lump sum distribution credit under division (D) of	370
section 5747.05 of the Revised Code;	371

(4) The dependent care credit under section 5747.054 of the	372
Revised Code;	373

(5) The lump sum retirement income credit under division (C)	374
of section 5747.055 of the Revised Code;	375

(6) The lump sum retirement income credit under division (D)	376
of section 5747.055 of the Revised Code;	377

(7) The lump sum retirement income credit under division (E)	378
of section 5747.055 of the Revised Code;	379

(8) The low-income credit under section 5747.056 of the	380
Revised Code;	381

(9) The credit for displaced workers who pay for job training	382
under section 5747.27 of the Revised Code;	383

(10) The campaign contribution credit under section 5747.29	384
of the Revised Code;	385

(11) The twenty-dollar personal exemption credit under	386
section 5747.022 of the Revised Code;	387

(12) The joint filing credit under division (G) of section	388
5747.05 of the Revised Code;	389

(13) The nonresident credit under division (A) of section	390
5747.05 of the Revised Code;	391

(14) The credit for a resident's out-of-state income under	392
division (B) of section 5747.05 of the Revised Code;	393

(15) The credit for employers that enter into agreements with	394
child day-care centers under section 5747.34 of the Revised Code;	395

(16) The credit for employers that reimburse employee child	396
care expenses under section 5747.36 of the Revised Code;	397

(17) The credit for adoption of a minor child under section	398
5747.37 of the Revised Code;	399

(18) The credit for purchases of lights and reflectors under	400
section 5747.38 of the Revised Code;	401

(19) The job retention credit under division (B) of section	402
5747.058 of the Revised Code;	403

(20) The credit for purchases of new manufacturing machinery	404
and equipment under section 5747.26 or section 5747.261 of the	405
Revised Code;	406

(21) The second credit for purchases of new manufacturing	407
machinery and equipment and the credit for using Ohio coal under	408
section 5747.31 of the Revised Code;	409

(22) The job training credit under section 5747.39 of the	410
Revised Code;	411

(23) The enterprise zone credit under section 5709.66 of the	412
Revised Code;	413

(24) The credit for the eligible costs associated with a	414
voluntary action under section 5747.32 of the Revised Code;	415

(25) The credit for employers that establish on-site child	416
day-care centers under section 5747.35 of the Revised Code;	417

(26) The ethanol plant investment credit under section	418
5747.75 of the Revised Code;	419

(27) The credit for purchases of qualifying grape production	420
property under section 5747.28 of the Revised Code;	421

(28) The export sales credit under section 5747.057 of the	422
Revised Code;	423

(29) The credit for research and development and technology	424
transfer investors under section 5747.33 of the Revised Code;	425

(30) The enterprise zone credits under section 5709.65 of the	426
Revised Code;	427

(31) The research and development credit under section	428
5747.331 of the Revised Code;	429

(32) The credit for investing in renewable energy property	430
under section 5747.81 of the Revised Code;	431

(33) The refundable jobs creation credit under division (A)	432
of section 5747.058 of the Revised Code;	433

(33)(34) The refundable credit for taxes paid by a qualifying	434
entity granted under section 5747.059 of the Revised Code;	435

(34)(35) The refundable credits for taxes paid by a	436
qualifying pass-through entity granted under division (J) of	437
section 5747.08 of the Revised Code;	438

(35)(36) The refundable credit for tax withheld under	439
division (B)(1) of section 5747.062 of the Revised Code;	440

(36)(37) The refundable credit under section 5747.80 of the	441
Revised Code for losses on loans made to the Ohio venture capital	442
program under sections 150.01 to 150.10 of the Revised Code.	443

(B) For any credit, except the credits enumerated in	444
divisions (A)(32)(33) to (36)(37) of this section and the credit	445
granted under division (I) of section 5747.08 of the Revised Code,	446
the amount of the credit for a taxable year shall not exceed the	447
tax due after allowing for any other credit that precedes it in	448
the order required under this section. Any excess amount of a	449
particular credit may be carried forward if authorized under the	450
section creating that credit. Nothing in this chapter shall be	451
construed to allow a taxpayer to claim, directly or indirectly, a	452
credit more than once for a taxable year.	453

Sec. 5751.54. (A) As used in this section:

454

(1) "Cost" and "purchase" have the same meanings as in	455
section 179 of the Internal Revenue Code.	456

(2) "Qualifying nonresidential land" means lands and	457
improvements thereon classified as nonresidential/agricultural	458
real property under section 5713.041 of the Revised Code.	459

(3) "Qualifying residential land" means lands and	460
improvements thereon classified as residential/agricultural real	461
property under section 5713.041 of the Revised Code that contain	462
one or more dwelling units that the taxpayer holds for the purpose	463
of leasing to others.	464

(4) "Renewable energy property" includes all of the	465
following:	466

(a) Equipment that uses organic matter produced by	467
terrestrial and aquatic plants and animals for:	468

(i) Production of biofuels such as ethanol, methanol, and	469
biodiesel;	470

(ii) Anaerobic biogas production of methane using	471
agricultural waste, animal waste, or garbage; or	472

(iii) Commercial production of thermal or electrical power	473
from renewable energy crops or wood waste materials.	474

(b) Any device used for converting, conditioning, or storing	475
the fuels, gases, or power described in divisions (A)(4)(a)(i) to	476
(iii) of this section;	477

(c) Hydroelectric generators that produce electricity by	478
water power or by the friction of water or steam that are located	479
at existing dams or in free-flowing waterways, including related	480
devices used for water supply or control and devices used to	481
convert, condition, or store the electricity generated.	482

(d) Equipment that uses solar radiation in lieu of	483
traditional energy sources to heat water; actively heat or cool	484
spaces; passively heat spaces; illuminate; generate electricity;	485
distill liquids; desalinate; detoxify; or produce industrial or	486
commercial heat, including related devices used to collect, store,	487
exchange, or condition solar energy, or convert solar energy to	488
other useful forms of energy.	489

(e) Equipment used to capture and convert wind energy into	490
electricity or mechanical power, including related devices used to	491
convert, condition, and store the electricity produced.	492

(B)(1) For tax periods beginning on or after January 1, 2008,	493
a nonrefundable credit may be claimed under this chapter for the	494
cost of renewable energy property constructed, purchased, or	495
leased and placed into service on qualifying residential land or	496
qualifying nonresidential land owned by the taxpayer. The credit	497
may be claimed only if the renewable energy property complies with	498
the guidelines established by the director of development under	499
section 1551.20 of the Revised Code. Subject to the limitations	500
prescribed in division (D) of this section, the amount of the	501
credit shall equal thirty-five per cent of the cost of the	502
renewable energy property constructed, purchased, or leased during	503
a calendar year to the extent those costs are not compensated for	504
by public grants.	505

(2)(a) If the renewable energy property for which a credit is	506
claimed under this section is placed into service on a parcel of	507
qualifying residential land on which is located only one	508
single-family dwelling, the entire credit, exclusive of any credit	509
carry forward allowed under division (E) of this section, shall be	510
claimed for the tax period immediately following the calendar year	511
in which the renewable energy property is placed into service.	512

(b) If the renewable energy property is placed into service	513
on any other qualifying residential land or is placed into service	514
on qualifying nonresidential land, then:	515

(i) In the case of a calendar year taxpayer, one-fifth of the	516
amount of the credit shall be claimed for each of the five tax	517
periods immediately succeeding the calendar year in which the	518
renewable energy property is placed into service; and	519

(ii) In the case of a calendar quarter taxpayer,	520
one-twentieth of the amount of the credit shall be claimed for	521
each of the twenty tax periods immediately succeeding the calendar	522
year in which the renewable energy property is placed into	523
service.	524

To the extent one-fifth of the credit exceeds a calendar year	525
taxpayer's tax liability for any tax period or one-twentieth of	526
the credit exceeds a calendar quarter taxpayer's tax liability for	527
any tax period, as the case may be, the excess may be carried	528
forward and claimed for succeeding tax periods as provided in	529
division (E) of this section.	530

(C) No credit may be claimed for any tax period during which	531
the renewable energy property for which the credit is allowed is	532
disposed of, taken out of service, or removed from this state,	533
except that a taxpayer may continue to claim any portion of the	534
credit carried forward from a preceding tax period under division	535
(E) of this section.	536

(D) The total amount of credit claimed under this section for	537
renewable energy property placed into service during any calendar	538
year shall not exceed:	539

(1) In the case of renewable energy property placed into	540
service on qualifying nonresidential land, two hundred fifty	541
thousand dollars; and	542

(2) In the case of renewable energy property placed into	543
service on qualifying residential land:	544

(a) One thousand four hundred dollars for each dwelling unit	545
served by renewable energy property that heats domestic water by	546
solar energy;	547

(b) Three thousand five hundred dollars for each dwelling	548
unit served by renewable energy property that uses solar energy to	549
provide active space heating, combined active space and domestic	550
water heating, or passive space heating;	551

(c) Ten thousand dollars for each dwelling served by any	552
other renewable energy property.	553

(E) The credit shall be claimed in the order required under	554
section 5751.98 of the Revised Code. The credit, to the extent it	555
exceeds the taxpayer's tax liability for a tax period after	556
allowance for any other credits that precede the credit under this	557
section in that order, shall be carried forward to the next	558
succeeding tax periods until fully utilized, provided that the	559
amount of the excess credit claimed against the tax for any tax	560
period shall be deducted from the balance carried forward to the	561
next tax period.	562

(F) A taxpayer that claims the credit allowed under this	563
section for renewable energy property leased from another person	564
shall obtain a written certification from the lessor that the	565
lessor will not claim the credit allowed under this section with	566
respect to that property for any tax period for which the taxpayer	567
claims the credit under this section. The lessor or the lessor's	568
authorized agent shall sign the certification. The taxpayer shall	569
make the certification available to the tax commissioner upon the	570
commissioner's request.	571

Sec. 5751.98.  (A) To provide a uniform procedure for	572
calculating the amount of tax due under this chapter, a taxpayer	573
shall claim any credits to which it is entitled in the following	574
order:	575

(1) The nonrefundable jobs retention credit under division	576
(B) of section 5751.50 of the Revised Code;	577

(2) The nonrefundable credit for qualified research expenses	578
under division (B) of section 5751.51 of the Revised Code;	579

(3) The nonrefundable credit for a borrower's qualified	580
research and development loan payments under division (B) of	581
section 5751.52 of the Revised Code;	582

(4) The nonrefundable credit for calendar years 2010 to 2029	583
for unused net operating losses under division (B) of section	584
5751.53 of the Revised Code;	585

(5) The nonrefundable credit for investing in renewable	586
energy property under section 5751.54 of the Revised Code;	587

(6) The refundable credit for calendar year 2030 for unused	588
net operating losses under division (C) of section 5751.53 of the	589
Revised Code;	590

(6)(7) The refundable jobs creation credit under division (A)	591
of section 5751.50 of the Revised Code.	592

(B) For any credit except the creditcredits enumerated in	593
divisiondivisions (A)(4)(6) and (7) of this section, the amount	594
of the credit for a tax period shall not exceed the tax due after	595
allowing for any other credit that precedes it in the order	596
required under this section. Any excess amount of a particular	597
credit may be carried forward if authorized under the section	598
creating the credit.	599

Section 2. That existing sections 1551.20, 4933.32, 5747.08,	600
5747.98, and 5751.98 of the Revised Code are hereby repealed.	601

Section 3.  Section 1551.20 of the Revised Code is presented	602
in this act as a composite of the section as amended by Am. Sub.	603
H.B. 632, Sub. S.B. 269, and Sub. S.B. 271 of the 120th General	604
Assembly. The General Assembly, applying the principle stated in	605
division (B) of section 1.52 of the Revised Code that amendments	606
are to be harmonized if reasonably capable of simultaneous	607
operation, finds that the composite is the resulting version of	608
the section in effect prior to the effective date of the section	609
as presented in this act.	610