As Introduced

127th General Assembly Regular Session 2007-2008

S. B. No. 199

Senator Mason 

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

---

A BILL

To amend sections 5747.08, 5747.98, and 5751.98 and

1

to enact sections 1551.41 to 1551.47, 5747.81, and

2

5751.54 of the Revised Code to create tax credits

3

for constructing energy efficient and

4

environmentally responsible buildings.

5

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

Section 1.  That sections 5747.08, 5747.98, and 5751.98 be	6
amended and sections 1551.41, 1551.42, 1551.43, 1551.44, 1551.45,	7
1551.46, 1551.47, 5747.81, and 5751.54 of the Revised Code be	8
enacted to read as follows:	9

Sec. 1551.41.  As used in sections 1551.41 to 1551.47 of the	10
Revised Code:	11

(A) "Allowable costs" means amounts charged to a capital	12
account that are paid or incurred with respect to the construction	13
or rehabilitation of an eligible building on or after January 1,	14
2007. "Allowable costs" include the cost of the following:	15

(1) Building materials;

16

(2) Interest paid or incurred during the construction or	17
rehabilitation process on construction or rehabilitation loans;	18

(3) Closing costs for construction or rehabilitation loans;

19

(4) Architectural, engineering, and other professional fees	20
attributable to the construction or rehabilitation;	21

(5) Lighting, plumbing, electrical wiring, ventilation, and	22
other finishes and furnishings approved under rules adopted by the	23
director of development under section 1551.47 of the Revised Code;	24

(6) Testing and adjusting heat, ventilation, air	25
conditioning, and other systems to assure proper functioning and	26
adherence to design criteria;	27

(7) Preparing system operation manuals for heat, ventilation,	28
air conditioning, and other systems; and	29

(8) Training maintenance personnel in the operation of heat,	30
ventilation, air conditioning, and other systems.	31

"Allowable costs" do not include legal fees; the cost of	32
telephone systems or computers; site costs such as temporary	33
electrical wiring, scaffolding, demolition, fencing, and security;	34
and finishes and furnishings not approved under rules adopted by	35
the director of development.	36

(B) "Alternate energy source" means any of the following	37
devices if the device is capable of monitoring its own energy	38
output:	39

(1) A fuel cell that produces electricity from hydrogen or	40
hydrocarbon fuel through a noncombustive electrochemical process;	41

(2) A wind turbine; or

42

(3) A photovoltaic module.

43

(C) "Eligible building" means a building located in this	44
state, construction or rehabilitation of which is completed on or	45
after January 1, 2007, and:	46

(1) In the case of a newly constructed building for which a	47
certificate of occupancy is issued by the building official with	48
jurisdiction before the effective date of the enactment of this	49
section by ........ of the 127th general assembly:	50

(a) Consists of at least twenty thousand square feet of	51
interior space and is used primarily for nonresidential purposes;	52
or	53

(b) Is used for residential purposes and consists of at least	54
twelve separate dwelling units and at least twenty thousand square	55
feet of interior space.	56

(2) In the case of a newly constructed building for which a	57
certificate of occupancy is issued by the building official with	58
jurisdiction on or after the effective date of the enactment of	59
this section by ........ of the 127th general assembly:	60

(a) Is located on a brownfield as defined in section 122.65	61
of the Revised Code or in a distressed area as defined in section	62
122.16 of the Revised Code; and	63

(b) Is not located on any wetland the alteration of which	64
requires a permit under the federal Clean Water Act of 1977, 91	65
Stat. 1566, 33 U.S.C.A. 1251.	66

(3) In the case of a rehabilitated building, a building that:

67

(a) Has total square footage that has increased by	68
twenty-five per cent or less since the date on which the building	69
was first erected; and	70

(b) Is located on a brownfield as defined in section 122.65	71
of the Revised Code or in a distressed area as defined in section	72
122.16 of the Revised Code.	73

(D) "Cost" and "purchase" have the same meanings as in	74
section 179 of the Internal Revenue Code.	75

(E) "Green base components" means an eligible building's	76
structural components and all areas of the building not intended	77
for human occupancy that satisfy the criteria for green base	78
components prescribed by the director of development under section	79
1551.47 of the Revised Code. "Green base components" include,	80
without limitation, exterior walls, floors, windows, roofs,	81
foundations, chimneys, parking areas, mechanical rooms, mechanical	82
systems, lobbies, stairwells, shafts, and corridors.	83

(F) "Green tenant space" means those portions of an eligible	84
building that are intended for human occupancy and that satisfy	85
the criteria prescribed by the director for green tenant space	86
under section 1551.47 of the Revised Code.	87

(G) "Incremental cost of photovoltaic modules" means the	88
total of the following:	89

(1) The cost of building-integrated photovoltaic modules and	90
any associated inverter; additional wiring or other electrical	91
equipment for the modules; and additional mounting or structural	92
materials, less the cost of spandrel glass or other building	93
materials that would have been used even had building-integrated	94
modules not been installed;	95

(2) The labor costs allocable to on-site preparation,	96
assembly, and original installation of building-integrated	97
photovoltaic modules, less the labor costs that would have been	98
incurred had building-integrated modules not been installed; and	99

(3) The costs incurred for architectural and engineering	100
services and designs purchased for the sole purpose of installing	101
the building-integrated photovoltaic modules.	102

(H) "Taxable year" has the same meaning as in section 5747.01	103
of the Revised Code.	104

(I) "Tax period" has the same meaning as in section 5751.01	105
of the Revised Code.	106

Sec. 1551.42.  (A) On or after January 1, 2008, the owner of	107
an eligible building may apply to the director of development for	108
a green building tax credit certificate authorizing the owner to	109
claim a tax credit under section 5747.81 or 5751.54 of the Revised	110
Code for allowable costs incurred in constructing or	111
rehabilitating the owner's eligible building and for the costs	112
incurred in installing alternate energy sources to serve the	113
building. A sole proprietorship or a pass-through entity as	114
defined in section 5733.04 of the Revised Code that is subject to	115
the tax levied under Chapter 5751. of the Revised Code is eligible	116
only for the tax credit under section 5751.54 of the Revised Code.	117

(B) An owner shall apply to the director for a certificate on	118
a form and in the manner prescribed by the director. Every	119
application for a green building tax credit certificate shall:	120

(1) Describe the eligible building and identify its location;

121

(2) Describe in detail the construction or rehabilitation and	122
the installation of alternate energy sources, if any, that took	123
place with respect to the owner's eligible building;	124

(3) Document the allowable costs associated with the	125
construction or rehabilitation;	126

(4) If the owner has installed an alternate energy source for	127
the building, document to the director's satisfaction that	128
installation has been completed and that the alternate energy	129
source is currently serving the owner's eligible building;	130

(5) If the owner installed a fuel cell or wind turbine for	131
the eligible building, specify the capitalized costs paid or	132
incurred with respect to the fuel cell or turbine;	133

(6) If the owner installed photovoltaic modules that are	134
integrated into the structure of the eligible building, specify	135
the incremental cost of the photovoltaic modules;	136

(7) If the owner installed photovoltaic modules that are not	137
integrated into the structure of the eligible building, specify	138
the cost paid for installing the photovoltaic modules;	139

(8) Specify whether the owner is applying for approval to	140
claim a tax credit under section 5747.81 or 5751.54 of the Revised	141
Code; and	142

(9) Contain any other information required by the director.

143

(C) Subject to section 1551.43 of the Revised Code, the	144
director shall issue a green building tax credit certificate to an	145
applicant if the director determines that:	146

(1) The owner has completed construction or rehabilitation of	147
the eligible building and has completed installation of any	148
alternate energy source for that eligible building;	149

(2) In the case of the construction of an eligible building,	150
a certificate of occupancy has been issued for the eligible	151
building by the building official with jurisdiction;	152

(3) All allowable costs for construction or rehabilitation of	153
the eligible building and all costs associated with the	154
installation of alternate energy sources have been documented to	155
the director's satisfaction; and	156

(4) The application satisfies any criteria for issuance	157
prescribed by the director by rule.	158

(D)(1) Each green building tax credit certificate issued by	159
the director shall specify the date on which the certificate is	160
issued. The credit shall be claimed for the taxable year or tax	161
period, as the case may be, that includes the date on which the	162
certificate is issued.	163

(2) Each green building tax credit certificate shall specify	164
the amount of credit to which the owner is entitled. The total	165
credit to which an owner is entitled shall be computed as the sum	166
of the amounts computed under divisions (D)(2)(a) and (b) of this	167
section:	168

(a) The portion of the credit attributable to allowable costs	169
associated with the construction or rehabilitation of the eligible	170
building shall be:	171

(i) Eight per cent of the owner's allowable costs in the case	172
of a construction or rehabilitation that culminates in the	173
installation of both green base components and green tenant space,	174
provided that the allowable costs used to compute this portion of	175
the credit shall not exceed one hundred twenty dollars for each	176
square foot of green base components and sixty dollars for each	177
square foot of green tenant space;	178

(ii) Six per cent of the owner's allowable costs in the case	179
of a construction or rehabilitation that culminates in the	180
installation of green base components only, provided that the	181
allowable costs used to compute this portion of the credit shall	182
not exceed one hundred twenty dollars for each square foot of	183
green base components;	184

(iii) Six per cent of the owner's allowable costs in the case	185
of a construction or rehabilitation that culminates in the	186
installation of green tenant space only, provided that the	187
allowable costs used to compute this portion of the credit shall	188
not exceed sixty dollars for each square foot of green tenant	189
space.	190

(b) The portion, if any, of the credit attributable to costs	191
incurred in installing alternate energy sources for the eligible	192
building shall be the sum of the applicable amounts computed under	193
divisions (D)(2)(b)(i) to (iii) of this section:	194

(i) If the eligible building's owner installed one or more	195
fuel cells, thirty per cent of the capitalized costs paid or	196
incurred for each fuel cell installed, including the cost of the	197
foundation or platform on which the fuel cell or cells are	198
situated and labor costs associated with installation, less the	199
amount of any public grant received by the owner for installing	200
the fuel cell or cells, and provided that the costs used to	201
compute this portion of the credit shall not exceed one thousand	202
dollars for each kilowatt of installed direct current (DC) rated	203
capacity of each fuel cell;	204

(ii) If the eligible building's owner installed one or more	205
wind turbines, twenty-five per cent of the capitalized costs paid	206
or incurred for each wind turbine installed, including the cost of	207
the foundation or platform on which the wind turbine or turbines	208
are situated and labor costs associated with the installation;	209

(iii) If the eligible building's owner installed photovoltaic	210
modules, the lesser of the amounts computed under division	211
(D)(2)(b)(iii)(I) and (II) of this section:	212

(I) Twenty per cent of the incremental cost of photovoltaic	213
modules that are directly integrated into the structure of the	214
eligible building and twenty-five per cent of the cost paid or	215
incurred for installing photovoltaic modules that are not directly	216
integrated into the structure of the eligible building, including	217
the cost of the foundation or platform on which the	218
non-building-integrated modules are situated and labor costs	219
associated with their installation;	220

(II) The product obtained by multiplying three dollars times	221
the number of watts included in the direct current (DC) rated	222
capacity of the photovoltaic modules installed.	223

(E) The director shall not issue green building tax credit	224
certificates after December 31, 2016.	225

Sec. 1551.43.  (A) As used in this section, "applicable	226
calendar year limitation" means:	227

(1) One million dollars for calendar year 2008;

228

(2) Two million dollars for calendar year 2009;

229

(3) Three million dollars for calendar year 2010;

230

(4) Four million dollars for calendar year 2011;

231

(5) Five million dollars for calendar year 2012;

232

(6) Four million dollars for calendar year 2013;

233

(7) Three million dollars for calendar year 2014;

234

(8) Two million dollars for calendar year 2015;

235

(9) One million dollars for calendar year 2016.

236

(B)(1) Except as provided in division (B)(2) of this section,	237
the director of development shall not in any calendar year issue a	238
green building tax credit certificate if issuing the certificate	239
would cause the total amount of credits approved during that	240
calendar year to exceed the applicable calendar year limitation.	241

(2) If the total amount of credits approved in any calendar	242
year is less than the applicable calendar year limitation for that	243
year, the excess may be carried forward to one or more succeeding	244
calendar years and used to increase the applicable calendar year	245
limitations for those years.	246

Sec. 1551.44.  On the fifteenth day of January each year	247
beginning in 2009 and ending in 2017, the director of development	248
shall provide to the tax commissioner a list identifying each	249
owner of an eligible building who was issued a green building tax	250
credit certificate during the preceding calendar year. The list	251
shall specify the amount of credit to which each owner is entitled	252
and the date on which it was issued.	253

Sec. 1551.45.  (A) In each of the first five years after the	254
year in which a green building tax credit certificate has been	255
issued for an eligible building, the building owner shall file	256
with the director of development an annual certification from a	257
licensed architect or engineer attesting that all green base	258
components, green tenant space, or alternate energy sources for	259
which the owner's credit was approved remain in service and	260
continue to qualify as green base components, green tenant space,	261
or alternate energy sources, as the case may be. The certification	262
shall be filed in such manner and on such date as the director	263
prescribes by rule. The certification shall be in a form and shall	264
contain such additional information as the director requires by	265
rule.	266

(B) The director of development shall adopt rules prescribing	267
penalties for failing to submit the certification required under	268
division (A) of this section. The rules shall include procedures	269
for notifying owners of their failure to file and the imposition	270
of a penalty; provide owners with the opportunity for a hearing;	271
and prescribe criteria for waiving penalties upon an owner's	272
showing of good cause for failing to submit a certification.	273

Sec. 1551.46. On or before the thirty-first day of January of	274
each year beginning in 2009 and ending in 2017, the director of	275
development and the tax commissioner jointly shall submit to the	276
governor, the speaker of the house of representatives, and the	277
president of the senate a report that:	278

(A) States the number of green building tax credit	279
certificates issued during the preceding calendar year and the	280
dollar amounts of the credits approved with respect to each	281
certificate;	282

(B) Identifies the location of each eligible building for	283
which a tax credit certificate was issued during the preceding	284
calendar year;	285

(C) Describes the construction or rehabilitation completed	286
for each eligible building for which a certificate was issued,	287
including a description of any alternate energy sources installed	288
for those eligible buildings;	289

(D) Specifies the amount of tax credits claimed by owners of	290
eligible buildings during the calendar year; and	291

(E) Contains any other information, analyses, or	292
recommendations that the director and tax commissioner consider	293
relevant.	294

Sec. 1551.47.  The director of development shall adopt rules	295
necessary to administer sections 1551.41 to 1551.46 of the Revised	296
Code. The rules shall prescribe all of the following:	297

(A) Criteria that qualify structural components used in the	298
construction or rehabilitation of an eligible building as green	299
base components and qualify other portions of an eligible building	300
as green tenant space, which criteria shall:	301

(1) Be consistent with criteria established by the United	302
States green building council for "green buildings" or other	303
similar criteria established by a federal agency or nonprofit	304
organization committed to promoting the construction of	305
environmentally responsible buildings; and	306

(2) Require that an eligible building's total energy	307
consumption be sixty-five per cent, in the case of a newly	308
constructed eligible building, or seventy-five per cent, in the	309
case of a rehabilitated eligible building, of the total energy	310
consumption of another appropriate building chosen by the director	311
for comparative purposes.	312

(B) Finishes and furnishings in addition to lighting,	313
plumbing, electrical wiring, and ventilation, the cost of which	314
constitute allowable costs.	315

(C) Forms and procedures by which owners of eligible	316
buildings may apply for green building tax credit certificates.	317

(D) Information to be included on applications for a green	318
building tax credit certificate in addition to that required under	319
division (B) of section 1551.42 of the Revised Code.	320

(E) Acceptable forms of documentation of the allowable costs	321
incurred in constructing or rehabilitating an eligible building	322
and the costs of installing an alternate energy source with	323
respect to an eligible building.	324

(F) Acceptable forms of documentation that installation of an	325
alternate energy source has been completed and is serving an	326
eligible building.	327

(G) Any criteria for issuance of a green building tax credit	328
certificate in addition to that prescribed under division (C) of	329
section 1551.42 of the Revised Code.	330

(H) Procedures and criteria for ranking, reviewing,	331
evaluating, and approving applications for green building tax	332
credit certificates within the applicable dollar value limitations	333
prescribed under section 1551.43 of the Revised Code.	334

(I) Forms and procedures by which owners of eligible	335
buildings shall submit the annual certifications required under	336
section 1551.45 of the Revised Code and any information to be	337
included in those certifications in addition to the information	338
required under that section.	339

(J) Penalties for failing to submit the annual certifications	340
required under section 1551.45 of the Revised Code, procedures for	341
notifying owners of the imposition of those penalties, procedures	342
for holding hearings, and criteria for waiving a penalty upon an	343
owner's showing of good cause for failing to submit a	344
certification.	345

Sec. 5747.08.  An annual return with respect to the tax	346
imposed by section 5747.02 of the Revised Code and each tax	347
imposed under Chapter 5748. of the Revised Code shall be made by	348
every taxpayer for any taxable year for which the taxpayer is	349
liable for the tax imposed by that section or under that chapter,	350
unless the total credits allowed under divisions (E), (F), and (G)	351
of section 5747.05 of the Revised Code for the year are equal to	352
or exceed the tax imposed by section 5747.02 of the Revised Code,	353
in which case no return shall be required unless the taxpayer is	354
liable for a tax imposed pursuant to Chapter 5748. of the Revised	355
Code.	356

(A) If an individual is deceased, any return or notice	357
required of that individual under this chapter shall be made and	358
filed by that decedent's executor, administrator, or other person	359
charged with the property of that decedent.	360

(B) If an individual is unable to make a return or notice	361
required by this chapter, the return or notice required of that	362
individual shall be made and filed by the individual's duly	363
authorized agent, guardian, conservator, fiduciary, or other	364
person charged with the care of the person or property of that	365
individual.	366

(C) Returns or notices required of an estate or a trust shall	367
be made and filed by the fiduciary of the estate or trust.	368

(D)(1)(a) Except as otherwise provided in division (D)(1)(b)	369
of this section, any pass-through entity may file a single return	370
on behalf of one or more of the entity's investors other than an	371
investor that is a person subject to the tax imposed under section	372
5733.06 of the Revised Code. The single return shall set forth the	373
name, address, and social security number or other identifying	374
number of each of those pass-through entity investors and shall	375
indicate the distributive share of each of those pass-through	376
entity investor's income taxable in this state in accordance with	377
sections 5747.20 to 5747.231 of the Revised Code. Such	378
pass-through entity investors for whom the pass-through entity	379
elects to file a single return are not entitled to the exemption	380
or credit provided for by sections 5747.02 and 5747.022 of the	381
Revised Code; shall calculate the tax before business credits at	382
the highest rate of tax set forth in section 5747.02 of the	383
Revised Code for the taxable year for which the return is filed;	384
and are entitled to only their distributive share of the business	385
credits as defined in division (D)(2) of this section. A single	386
check drawn by the pass-through entity shall accompany the return	387
in full payment of the tax due, as shown on the single return, for	388
such investors, other than investors who are persons subject to	389
the tax imposed under section 5733.06 of the Revised Code.	390

(b)(i) A pass-through entity shall not include in such a	391
single return any investor that is a trust to the extent that any	392
direct or indirect current, future, or contingent beneficiary of	393
the trust is a person subject to the tax imposed under section	394
5733.06 of the Revised Code.	395

(ii) A pass-through entity shall not include in such a single	396
return any investor that is itself a pass-through entity to the	397
extent that any direct or indirect investor in the second	398
pass-through entity is a person subject to the tax imposed under	399
section 5733.06 of the Revised Code.	400

(c) Nothing in division (D) of this section precludes the tax	401
commissioner from requiring such investors to file the return and	402
make the payment of taxes and related interest, penalty, and	403
interest penalty required by this section or section 5747.02,	404
5747.09, or 5747.15 of the Revised Code. Nothing in division (D)	405
of this section shall be construed to provide to such an investor	406
or pass-through entity any additional deduction or credit, other	407
than the credit provided by division (J) of this section, solely	408
on account of the entity's filing a return in accordance with this	409
section. Such a pass-through entity also shall make the filing and	410
payment of estimated taxes on behalf of the pass-through entity	411
investors other than an investor that is a person subject to the	412
tax imposed under section 5733.06 of the Revised Code.	413

(2) For the purposes of this section, "business credits"	414
means the credits listed in section 5747.98 of the Revised Code	415
excluding the following credits:	416

(a) The retirement credit under division (B) of section	417
5747.055 of the Revised Code;	418

(b) The senior citizen credit under division (C) of section	419
5747.05 of the Revised Code;	420

(c) The lump sum distribution credit under division (D) of	421
section 5747.05 of the Revised Code;	422

(d) The dependent care credit under section 5747.054 of the	423
Revised Code;	424

(e) The lump sum retirement income credit under division (C)	425
of section 5747.055 of the Revised Code;	426

(f) The lump sum retirement income credit under division (D)	427
of section 5747.055 of the Revised Code;	428

(g) The lump sum retirement income credit under division (E)	429
of section 5747.055 of the Revised Code;	430

(h) The credit for displaced workers who pay for job training	431
under section 5747.27 of the Revised Code;	432

(i) The twenty-dollar personal exemption credit under section	433
5747.022 of the Revised Code;	434

(j) The joint filing credit under division (G) of section	435
5747.05 of the Revised Code;	436

(k) The nonresident credit under division (A) of section	437
5747.05 of the Revised Code;	438

(l) The credit for a resident's out-of-state income under	439
division (B) of section 5747.05 of the Revised Code;	440

(m) The low-income credit under section 5747.056 of the	441
Revised Code;	442

(n) The credit for constructing or rehabilitating eligible	443
buildings and for installing alternate energy sources at eligible	444
buildings under section 5747.81 of the Revised Code.	445

(3) The election provided for under division (D) of this	446
section applies only to the taxable year for which the election is	447
made by the pass-through entity. Unless the tax commissioner	448
provides otherwise, this election, once made, is binding and	449
irrevocable for the taxable year for which the election is made.	450
Nothing in this division shall be construed to provide for any	451
deduction or credit that would not be allowable if a nonresident	452
pass-through entity investor were to file an annual return.	453

(4) If a pass-through entity makes the election provided for	454
under division (D) of this section, the pass-through entity shall	455
be liable for any additional taxes, interest, interest penalty, or	456
penalties imposed by this chapter if the tax commissioner finds	457
that the single return does not reflect the correct tax due by the	458
pass-through entity investors covered by that return. Nothing in	459
this division shall be construed to limit or alter the liability,	460
if any, imposed on pass-through entity investors for unpaid or	461
underpaid taxes, interest, interest penalty, or penalties as a	462
result of the pass-through entity's making the election provided	463
for under division (D) of this section. For the purposes of	464
division (D) of this section, "correct tax due" means the tax that	465
would have been paid by the pass-through entity had the single	466
return been filed in a manner reflecting the tax commissioner's	467
findings. Nothing in division (D) of this section shall be	468
construed to make or hold a pass-through entity liable for tax	469
attributable to a pass-through entity investor's income from a	470
source other than the pass-through entity electing to file the	471
single return.	472

(E) If a husband and wife file a joint federal income tax	473
return for a taxable year, they shall file a joint return under	474
this section for that taxable year, and their liabilities are	475
joint and several, but, if the federal income tax liability of	476
either spouse is determined on a separate federal income tax	477
return, they shall file separate returns under this section.	478

If either spouse is not required to file a federal income tax	479
return and either or both are required to file a return pursuant	480
to this chapter, they may elect to file separate or joint returns,	481
and, pursuant to that election, their liabilities are separate or	482
joint and several. If a husband and wife file separate returns	483
pursuant to this chapter, each must claim the taxpayer's own	484
exemption, but not both, as authorized under section 5747.02 of	485
the Revised Code on the taxpayer's own return.	486

(F) Each return or notice required to be filed under this	487
section shall contain the signature of the taxpayer or the	488
taxpayer's duly authorized agent and of the person who prepared	489
the return for the taxpayer, and shall include the taxpayer's	490
social security number. Each return shall be verified by a	491
declaration under the penalties of perjury. The tax commissioner	492
shall prescribe the form that the signature and declaration shall	493
take.	494

(G) Each return or notice required to be filed under this	495
section shall be made and filed as required by section 5747.04 of	496
the Revised Code, on or before the fifteenth day of April of each	497
year, on forms that the tax commissioner shall prescribe, together	498
with remittance made payable to the treasurer of state in the	499
combined amount of the state and all school district income taxes	500
shown to be due on the form, unless the combined amount shown to	501
be due is one dollar or less, in which case that amount need not	502
be remitted.	503

Upon good cause shown, the tax commissioner may extend the	504
period for filing any notice or return required to be filed under	505
this section and may adopt rules relating to extensions. If the	506
extension results in an extension of time for the payment of any	507
state or school district income tax liability with respect to	508
which the return is filed, the taxpayer shall pay at the time the	509
tax liability is paid an amount of interest computed at the rate	510
per annum prescribed by section 5703.47 of the Revised Code on	511
that liability from the time that payment is due without extension	512
to the time of actual payment. Except as provided in section	513
5747.132 of the Revised Code, in addition to all other interest	514
charges and penalties, all taxes imposed under this chapter or	515
Chapter 5748. of the Revised Code and remaining unpaid after they	516
become due, except combined amounts due of one dollar or less,	517
bear interest at the rate per annum prescribed by section 5703.47	518
of the Revised Code until paid or until the day an assessment is	519
issued under section 5747.13 of the Revised Code, whichever occurs	520
first.	521

If the tax commissioner considers it necessary in order to	522
ensure the payment of the tax imposed by section 5747.02 of the	523
Revised Code or any tax imposed under Chapter 5748. of the Revised	524
Code, the tax commissioner may require returns and payments to be	525
made otherwise than as provided in this section.	526

To the extent that any provision in this division conflicts	527
with any provision in section 5747.026 of the Revised Code, the	528
provision in that section prevails.	529

(H) If any report, claim, statement, or other document	530
required to be filed, or any payment required to be made, within a	531
prescribed period or on or before a prescribed date under this	532
chapter is delivered after that period or that date by United	533
States mail to the agency, officer, or office with which the	534
report, claim, statement, or other document is required to be	535
filed, or to which the payment is required to be made, the date of	536
the postmark stamped on the cover in which the report, claim,	537
statement, or other document, or payment is mailed shall be deemed	538
to be the date of delivery or the date of payment.	539

If a payment is required to be made by electronic funds	540
transfer pursuant to section 5747.072 of the Revised Code, the	541
payment is considered to be made when the payment is received by	542
the treasurer of state or credited to an account designated by the	543
treasurer of state for the receipt of tax payments.	544

"The date of the postmark" means, in the event there is more	545
than one date on the cover, the earliest date imprinted on the	546
cover by the United States postal service.	547

(I) The amounts withheld by the employer pursuant to section	548
5747.06 of the Revised Code shall be allowed to the recipient of	549
the compensation as credits against payment of the appropriate	550
taxes imposed on the recipient by section 5747.02 and under	551
Chapter 5748. of the Revised Code.	552

(J) If, in accordance with division (D) of this section, a	553
pass-through entity elects to file a single return and if any	554
investor is required to file the return and make the payment of	555
taxes required by this chapter on account of the investor's other	556
income that is not included in a single return filed by a	557
pass-through entity, the investor is entitled to a refundable	558
credit equal to the investor's proportionate share of the tax paid	559
by the pass-through entity on behalf of the investor. The investor	560
shall claim the credit for the investor's taxable year in which or	561
with which ends the taxable year of the pass-through entity.	562
Nothing in this chapter shall be construed to allow any credit	563
provided in this chapter to be claimed more than once. For the	564
purposes of computing any interest, penalty, or interest penalty,	565
the investor shall be deemed to have paid the refundable credit	566
provided by this division on the day that the pass-through entity	567
paid the estimated tax or the tax giving rise to the credit.	568

Sec. 5747.81.  An individual who has been issued a green	569
building tax credit certificate under section 1551.42 of the	570
Revised Code may claim a nonrefundable credit against the tax	571
imposed by section 5747.02 of the Revised Code. The amount of the	572
credit shall be the amount specified in the certificate and shall	573
be claimed for the taxable year that includes the date on which	574
the certificate is issued. The credit shall be claimed in the	575
order required under section 5747.98 of the Revised Code. If the	576
credit to which a taxpayer would otherwise be entitled under this	577
section for the taxable year is greater than the tax otherwise	578
due, after allowing for any other credit that precedes the credit	579
allowed under this section in the order required under section	580
5747.98 of the Revised Code, the excess may be carried forward as	581
a nonrefundable credit for the ensuing ten taxable years, provided	582
that the taxpayer shall deduct the amount of the excess credit	583
allowed in any taxable year from the balance carried forward to	584
the next taxable year.	585

Sec. 5747.98.  (A) To provide a uniform procedure for	586
calculating the amount of tax due under section 5747.02 of the	587
Revised Code, a taxpayer shall claim any credits to which the	588
taxpayer is entitled in the following order:	589

(1) The retirement income credit under division (B) of	590
section 5747.055 of the Revised Code;	591

(2) The senior citizen credit under division (C) of section	592
5747.05 of the Revised Code;	593

(3) The lump sum distribution credit under division (D) of	594
section 5747.05 of the Revised Code;	595

(4) The dependent care credit under section 5747.054 of the	596
Revised Code;	597

(5) The lump sum retirement income credit under division (C)	598
of section 5747.055 of the Revised Code;	599

(6) The lump sum retirement income credit under division (D)	600
of section 5747.055 of the Revised Code;	601

(7) The lump sum retirement income credit under division (E)	602
of section 5747.055 of the Revised Code;	603

(8) The low-income credit under section 5747.056 of the	604
Revised Code;	605

(9) The credit for displaced workers who pay for job training	606
under section 5747.27 of the Revised Code;	607

(10) The campaign contribution credit under section 5747.29	608
of the Revised Code;	609

(11) The twenty-dollar personal exemption credit under	610
section 5747.022 of the Revised Code;	611

(12) The joint filing credit under division (G) of section	612
5747.05 of the Revised Code;	613

(13) The nonresident credit under division (A) of section	614
5747.05 of the Revised Code;	615

(14) The credit for a resident's out-of-state income under	616
division (B) of section 5747.05 of the Revised Code;	617

(15) The credit for employers that enter into agreements with	618
child day-care centers under section 5747.34 of the Revised Code;	619

(16) The credit for employers that reimburse employee child	620
care expenses under section 5747.36 of the Revised Code;	621

(17) The credit for adoption of a minor child under section	622
5747.37 of the Revised Code;	623

(18) The credit for purchases of lights and reflectors under	624
section 5747.38 of the Revised Code;	625

(19) The job retention credit under division (B) of section	626
5747.058 of the Revised Code;	627

(20) The credit for purchases of new manufacturing machinery	628
and equipment under section 5747.26 or section 5747.261 of the	629
Revised Code;	630

(21) The second credit for purchases of new manufacturing	631
machinery and equipment and the credit for using Ohio coal under	632
section 5747.31 of the Revised Code;	633

(22) The job training credit under section 5747.39 of the	634
Revised Code;	635

(23) The enterprise zone credit under section 5709.66 of the	636
Revised Code;	637

(24) The credit for the eligible costs associated with a	638
voluntary action under section 5747.32 of the Revised Code;	639

(25) The credit for employers that establish on-site child	640
day-care centers under section 5747.35 of the Revised Code;	641

(26) The ethanol plant investment credit under section	642
5747.75 of the Revised Code;	643

(27) The credit for purchases of qualifying grape production	644
property under section 5747.28 of the Revised Code;	645

(28) The export sales credit under section 5747.057 of the	646
Revised Code;	647

(29) The credit for research and development and technology	648
transfer investors under section 5747.33 of the Revised Code;	649

(30) The enterprise zone credits under section 5709.65 of the	650
Revised Code;	651

(31) The research and development credit under section	652
5747.331 of the Revised Code;	653

(32) The credit for constructing or rehabilitating eligible	654
buildings and for installing alternate energy sources at eligible	655
buildings under section 5747.81 of the Revised Code;	656

(33) The refundable credit for rehabilitating a historic	657
building under section 5747.76 of the Revised Code;	658

(33)(34) The refundable jobs creation credit under division	659
(A) of section 5747.058 of the Revised Code;	660

(34)(35) The refundable credit for taxes paid by a qualifying	661
entity granted under section 5747.059 of the Revised Code;	662

(35)(36) The refundable credits for taxes paid by a	663
qualifying pass-through entity granted under division (J) of	664
section 5747.08 of the Revised Code;	665

(36)(37) The refundable credit for tax withheld under	666
division (B)(1) of section 5747.062 of the Revised Code;	667

(37)(38) The refundable credit under section 5747.80 of the	668
Revised Code for losses on loans made to the Ohio venture capital	669
program under sections 150.01 to 150.10 of the Revised Code.	670

(B) For any credit, except the credits enumerated in	671
divisions (A)(32)(33) to (37)(38) of this section and the credit	672
granted under division (I) of section 5747.08 of the Revised Code,	673
the amount of the credit for a taxable year shall not exceed the	674
tax due after allowing for any other credit that precedes it in	675
the order required under this section. Any excess amount of a	676
particular credit may be carried forward if authorized under the	677
section creating that credit. Nothing in this chapter shall be	678
construed to allow a taxpayer to claim, directly or indirectly, a	679
credit more than once for a taxable year.	680

Sec. 5751.54.  A taxpayer that has been issued a tax credit	681
certificate under section 1551.42 of the Revised Code may claim a	682
nonrefundable credit against the tax imposed by this chapter. The	683
amount of the credit shall be the amount specified on the	684
certificate and shall be claimed for the tax period that includes	685
the date on which the certificate is issued. The credit shall be	686
claimed in the order required under section 5751.98 of the Revised	687
Code. If the credit exceeds the taxpayer's tax liability for the	688
tax period after allowance for any other credits that precede the	689
credit under this section in that order, the excess may be carried	690
forward as a nonrefundable credit to ensuing tax periods, provided	691
that:	692

(A) The excess may not be carried forward to any tax period	693
that begins more than ten years after the end of the first tax	694
period for which the credit is claimed; and	695

(B) The taxpayer shall deduct the amount of the excess credit	696
allowed for any tax period from the balance carried forward to the	697
next tax period.	698

Sec. 5751.98.  (A) To provide a uniform procedure for	699
calculating the amount of tax due under this chapter, a taxpayer	700
shall claim any credits to which it is entitled in the following	701
order:	702

(1) The nonrefundable jobs retention credit under division	703
(B) of section 5751.50 of the Revised Code;	704

(2) The nonrefundable credit for qualified research expenses	705
under division (B) of section 5751.51 of the Revised Code;	706

(3) The nonrefundable credit for a borrower's qualified	707
research and development loan payments under division (B) of	708
section 5751.52 of the Revised Code;	709

(4) The nonrefundable credit for calendar years 2010 to 2029	710
for unused net operating losses under division (B) of section	711
5751.53 of the Revised Code;	712

(5) The nonrefundable credit for constructing or	713
rehabilitating eligible buildings and for installing alternate	714
energy sources at eligible buildings under section 5751.54 of the	715
Revised Code;	716

(6) The refundable credit for calendar year 2030 for unused	717
net operating losses under division (C) of section 5751.53 of the	718
Revised Code;	719

(6)(7) The refundable jobs creation credit under division (A)	720
of section 5751.50 of the Revised Code.	721

(B) For any credit except the creditcredits enumerated in	722
divisiondivisions (A)(4)(6) and (7) of this section, the amount	723
of the credit for a tax period shall not exceed the tax due after	724
allowing for any other credit that precedes it in the order	725
required under this section. Any excess amount of a particular	726
credit may be carried forward if authorized under the section	727
creating the credit.	728

Section 2.  That existing sections 5747.08, 5747.98, and	729
5751.98 of the Revised Code are hereby repealed.	730