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To amend sections 5733.98 and 5747.98 and to enact | 1 |
sections 5733.421 and 5747.391 of the Revised Code | 2 |
to create a tax credit for wages paid by employers | 3 |
to employees who have previously been convicted of | 4 |
felonies. | 5 |
Section 1. That sections 5733.98 and 5747.98 be amended and | 6 |
sections 5733.421 and 5747.391 of the Revised Code be enacted to | 7 |
read as follows: | 8 |
Sec. 5733.421. (A) As used in this section: | 9 |
(1) "Qualified reforming felon" means an individual who: | 10 |
(a) Has been convicted of a felony under any statute of the | 11 |
United States or any state; | 12 |
(b) Was hired by a taxpayer within one year of the conviction | 13 |
or, if sentenced to a term of incarceration, was hired within one | 14 |
year of being released from incarceration; and | 15 |
(c) Is a member of a family that, in the six months | 16 |
immediately preceding the date of hiring, had an income that, on | 17 |
an annual basis, would be seventy per cent or less of the most | 18 |
recent lower living standard calculated by the federal bureau of | 19 |
labor statistics. | 20 |
(2) "Family" means an individual, and an individual's spouse | 21 |
and children. | 22 |
(3) "Wages" has the same meaning as in section 3306 of the | 23 |
Internal Revenue Code. | 24 |
(B)(1) For tax years 2008 and 2009, a nonrefundable credit is | 25 |
allowed against the tax imposed by section 5733.06 of the Revised | 26 |
Code for the wages paid by a taxpayer to a qualified reforming | 27 |
felon who works at least one hundred twenty hours for the taxpayer | 28 |
during the taxpayer's taxable year. The amount of the credit shall | 29 |
be calculated as follows: | 30 |
(a) For each qualified reforming felon who works at least | 31 |
four hundred hours during the taxable year, the credit equals | 32 |
forty per cent of the wages paid to the qualified reforming felon, | 33 |
but shall not exceed two thousand four hundred dollars per | 34 |
qualified reforming felon. | 35 |
(b) For each qualified reforming felon who works less than | 36 |
four hundred hours but at least one hundred twenty hours during | 37 |
the taxable year, the credit equals twenty-five per cent of the | 38 |
wages paid to the qualified reforming felon, but shall not exceed | 39 |
one thousand five hundred dollars per qualified reforming felon. | 40 |
The credit shall be claimed in the order required under | 41 |
section 5733.98 of the Revised Code. The credit, to the extent it | 42 |
exceeds the taxpayer's tax liability for the tax year after | 43 |
allowance for any other credits that precede the credit under that | 44 |
section in that order, may be carried forward to the next tax | 45 |
year. | 46 |
(2) A taxpayer that received federally funded payments for | 47 |
on-the-job training of a qualified reforming felon may not claim | 48 |
the credit allowed under this section for any portion of the wages | 49 |
paid to that qualified reforming felon. | 50 |
(3) A taxpayer may not claim the credit allowed under this | 51 |
section for any portion of the wages paid to a qualified reforming | 52 |
felon for services that were the same as, or substantially similar | 53 |
to, services that, but for a strike or lockout, would have been | 54 |
performed by another employee. | 55 |
(4) If a qualified reforming felon's employment is terminated | 56 |
during the taxable year and the qualified reforming felon was | 57 |
employed by the taxpayer for less than twelve months, the taxpayer | 58 |
may not claim the full amount of the credit allowed under this | 59 |
section unless the qualified reforming felon voluntarily | 60 |
terminated employment; was unable to continue employment due to a | 61 |
disability or death; or was terminated for cause. If a qualified | 62 |
reforming felon's employment is terminated for any other reason, | 63 |
the amount of the credit to which the taxpayer is entitled under | 64 |
this section is reduced by a percentage equal to the percentage of | 65 |
the taxable year that the qualified reforming felon was not | 66 |
employed by the taxpayer. | 67 |
(C) All files, statements, returns, reports, papers, or | 68 |
documents of any kind relating to qualified reforming felons or | 69 |
their families are not public records under section 149.43 of the | 70 |
Revised Code. | 71 |
Sec. 5733.98. (A) To provide a uniform procedure for | 72 |
calculating the amount of tax imposed by section 5733.06 of the | 73 |
Revised Code that is due under this chapter, a taxpayer shall | 74 |
claim any credits to which it is entitled in the following order, | 75 |
except as otherwise provided in section 5733.058 of the Revised | 76 |
Code: | 77 |
(1) For tax year 2005, the credit for taxes paid by a | 78 |
qualifying pass-through entity allowed under section 5733.0611 of | 79 |
the Revised Code; | 80 |
(2) The credit allowed for financial institutions under | 81 |
section 5733.45 of the Revised Code; | 82 |
(3) The credit for qualifying affiliated groups under section | 83 |
5733.068 of the Revised Code; | 84 |
(4) The subsidiary corporation credit under section 5733.067 | 85 |
of the Revised Code; | 86 |
(5) The savings and loan assessment credit under section | 87 |
5733.063 of the Revised Code; | 88 |
(6) The credit for recycling and litter prevention donations | 89 |
under section 5733.064 of the Revised Code; | 90 |
(7) The credit for employers that enter into agreements with | 91 |
child day-care centers under section 5733.36 of the Revised Code; | 92 |
(8) The credit for employers that reimburse employee child | 93 |
care expenses under section 5733.38 of the Revised Code; | 94 |
(9) The credit for maintaining railroad active grade crossing | 95 |
warning devices under section 5733.43 of the Revised Code; | 96 |
(10) The credit for purchases of lights and reflectors under | 97 |
section 5733.44 of the Revised Code; | 98 |
(11) The job retention credit under division (B) of section | 99 |
5733.0610 of the Revised Code; | 100 |
(12) The credit for tax years 2008 and 2009 for selling | 101 |
alternative fuel under section 5733.48 of the Revised Code; | 102 |
(13) The second credit for purchases of new manufacturing | 103 |
machinery and equipment under section 5733.33 of the Revised Code; | 104 |
(14) The job training credit under section 5733.42 of the | 105 |
Revised Code; | 106 |
(15) The credit for qualified research expenses under section | 107 |
5733.351 of the Revised Code; | 108 |
(16) The enterprise zone credit under section 5709.66 of the | 109 |
Revised Code; | 110 |
(17) The credit for the eligible costs associated with a | 111 |
voluntary action under section 5733.34 of the Revised Code; | 112 |
(18) The credit for employers that establish on-site child | 113 |
day-care centers under section 5733.37 of the Revised Code; | 114 |
(19) The credit for employers that employ qualified reforming | 115 |
felons under section 5733.421 of the Revised Code; | 116 |
(20) The ethanol plant investment credit under section | 117 |
5733.46 of the Revised Code; | 118 |
| 119 |
production property under section 5733.32 of the Revised Code; | 120 |
| 121 |
the Revised Code; | 122 |
| 123 |
technology transfer investors under section 5733.35 of the Revised | 124 |
Code; | 125 |
| 126 |
the Revised Code; | 127 |
| 128 |
of the Revised Code; | 129 |
| 130 |
section 5733.57 of the Revised Code; | 131 |
| 132 |
under section 5733.55 of the Revised Code; | 133 |
| 134 |
to aid the communicatively impaired under division (A) of section | 135 |
5733.56 of the Revised Code; | 136 |
| 137 |
5733.352 of the Revised Code; | 138 |
| 139 |
credit for taxes paid by a qualifying pass-through entity allowed | 140 |
under section 5733.0611 of the Revised Code; | 141 |
| 142 |
building under section 5733.47 of the Revised Code; | 143 |
| 144 |
(A) of section 5733.0610 of the Revised Code; | 145 |
| 146 |
division (B)(2) of section 5747.062 of the Revised Code; | 147 |
| 148 |
Revised Code for losses on loans made to the Ohio venture capital | 149 |
program under sections 150.01 to 150.10 of the Revised Code; | 150 |
| 151 |
credit allowable under division (B) of section 5733.56 of the | 152 |
Revised Code. | 153 |
(B) For any credit except the credits enumerated in divisions | 154 |
(A) | 155 |
for a tax year shall not exceed the tax due after allowing for | 156 |
any other credit that precedes it in the order required under | 157 |
this section. Any excess amount of a particular credit may be | 158 |
carried forward if authorized under the section creating that | 159 |
credit. | 160 |
Sec. 5747.391. (A) As used in this section: | 161 |
(1) "Pass-through entity" has the same meaning as in section | 162 |
5733.04 of the Revised Code and includes a sole proprietorship. | 163 |
(2) "Qualified reforming felon" means an individual who: | 164 |
(a) Has been convicted of a felony under any statute of the | 165 |
United States or any state; | 166 |
(b) Was hired by a pass-through entity within one year of the | 167 |
conviction or, if sentenced to a term of incarceration, was hired | 168 |
within one year of being released from incarceration; and | 169 |
(c) Is a member of a family that, in the six months | 170 |
immediately preceding the date of hiring, had an income that, on | 171 |
an annual basis, would be seventy per cent or less of the most | 172 |
recent lower living standard calculated by the federal bureau of | 173 |
labor statistics. | 174 |
(3) "Family" means an individual, and an individual's spouse | 175 |
and children. | 176 |
(4) "Wages" has the same meaning as in section 3306 of the | 177 |
Internal Revenue Code. | 178 |
(B)(1) For a taxpayer's taxable years beginning in 2007 or | 179 |
thereafter, a nonrefundable credit is allowed against the tax | 180 |
imposed by section 5747.02 of the Revised Code for the wages paid | 181 |
by a pass-through entity to a qualified reforming felon who works | 182 |
at least one hundred twenty hours for the pass-through entity | 183 |
during the entity's taxable year. The amount of the credit shall | 184 |
be calculated as follows: | 185 |
(a) For each qualified reforming felon who works at least | 186 |
four hundred hours during the taxable year, the credit equals | 187 |
forty per cent of the wages paid to the qualified reforming felon, | 188 |
but shall not exceed two thousand four hundred dollars per | 189 |
qualified reforming felon. | 190 |
(b) For each qualified reforming felon who works less than | 191 |
four hundred hours but at least one hundred twenty hours during | 192 |
the taxable year, the credit equals twenty-five per cent of the | 193 |
wages paid to the qualified reforming felon, but shall not exceed | 194 |
one thousand five hundred dollars per qualified reforming felon. | 195 |
The amount of a taxpayer's credit is the taxpayer's | 196 |
proportionate share of the credit distributed by the pass-through | 197 |
entity. The credit shall be claimed in the order required under | 198 |
section 5747.98 of the Revised Code. The credit, to the extent it | 199 |
exceeds the taxpayer's tax liability for the taxable year after | 200 |
allowance for any other credits that precede the credit under that | 201 |
section in that order, may be carried forward for the next five | 202 |
succeeding taxable years, but the amount of any excess credit | 203 |
allowed in any such year shall be deducted from the balance | 204 |
carried forward to the succeeding year. | 205 |
(2) A taxpayer may not claim the credit allowed under this | 206 |
section for any portion of the wages paid to a qualified reforming | 207 |
felon for whom the pass-through entity received federally funded | 208 |
payments for on-the-job training. | 209 |
(3) A taxpayer may not claim the credit allowed under this | 210 |
section for any portion of the wages paid to a qualified reforming | 211 |
felon for services that were the same as, or substantially similar | 212 |
to, services that, but for a strike or lockout, would have been | 213 |
performed by another employee. | 214 |
(4) If a qualified reforming felon's employment is terminated | 215 |
during the taxable year and the qualified reforming felon was | 216 |
employed by the pass-through entity for less than twelve months, a | 217 |
taxpayer may not claim the full amount of the credit allowed under | 218 |
this section unless the qualified reforming felon voluntarily | 219 |
terminated employment; was unable to continue employment due to a | 220 |
disability or death; or was terminated for cause. If a qualified | 221 |
reforming felon's employment is terminated for any other reason, | 222 |
the amount of the credit to which the taxpayer is entitled under | 223 |
this section is reduced by a percentage equal to the percentage of | 224 |
the taxable year that the qualified reforming felon was not | 225 |
employed by the pass-through entity. | 226 |
(C) All files, statements, returns, reports, papers, or | 227 |
documents of any kind relating to qualified reforming felons or | 228 |
their families are not public records under section 149.43 of the | 229 |
Revised Code. | 230 |
Sec. 5747.98. (A) To provide a uniform procedure for | 231 |
calculating the amount of tax due under section 5747.02 of the | 232 |
Revised Code, a taxpayer shall claim any credits to which the | 233 |
taxpayer is entitled in the following order: | 234 |
(1) The retirement income credit under division (B) of | 235 |
section 5747.055 of the Revised Code; | 236 |
(2) The senior citizen credit under division (C) of section | 237 |
5747.05 of the Revised Code; | 238 |
(3) The lump sum distribution credit under division (D) of | 239 |
section 5747.05 of the Revised Code; | 240 |
(4) The dependent care credit under section 5747.054 of the | 241 |
Revised Code; | 242 |
(5) The lump sum retirement income credit under division (C) | 243 |
of section 5747.055 of the Revised Code; | 244 |
(6) The lump sum retirement income credit under division (D) | 245 |
of section 5747.055 of the Revised Code; | 246 |
(7) The lump sum retirement income credit under division (E) | 247 |
of section 5747.055 of the Revised Code; | 248 |
(8) The low-income credit under section 5747.056 of the | 249 |
Revised Code; | 250 |
(9) The credit for displaced workers who pay for job training | 251 |
under section 5747.27 of the Revised Code; | 252 |
(10) The campaign contribution credit under section 5747.29 | 253 |
of the Revised Code; | 254 |
(11) The twenty-dollar personal exemption credit under | 255 |
section 5747.022 of the Revised Code; | 256 |
(12) The joint filing credit under division (G) of section | 257 |
5747.05 of the Revised Code; | 258 |
(13) The nonresident credit under division (A) of section | 259 |
5747.05 of the Revised Code; | 260 |
(14) The credit for a resident's out-of-state income under | 261 |
division (B) of section 5747.05 of the Revised Code; | 262 |
(15) The credit for employers that enter into agreements with | 263 |
child day-care centers under section 5747.34 of the Revised Code; | 264 |
(16) The credit for employers that reimburse employee child | 265 |
care expenses under section 5747.36 of the Revised Code; | 266 |
(17) The credit for adoption of a minor child under section | 267 |
5747.37 of the Revised Code; | 268 |
(18) The credit for purchases of lights and reflectors under | 269 |
section 5747.38 of the Revised Code; | 270 |
(19) The job retention credit under division (B) of section | 271 |
5747.058 of the Revised Code; | 272 |
(20) The credit for selling alternative fuel under section | 273 |
5747.77 of the Revised Code; | 274 |
(21) The second credit for purchases of new manufacturing | 275 |
machinery and equipment and the credit for using Ohio coal under | 276 |
section 5747.31 of the Revised Code; | 277 |
(22) The job training credit under section 5747.39 of the | 278 |
Revised Code; | 279 |
(23) The enterprise zone credit under section 5709.66 of the | 280 |
Revised Code; | 281 |
(24) The credit for the eligible costs associated with a | 282 |
voluntary action under section 5747.32 of the Revised Code; | 283 |
(25) The credit for employers that establish on-site child | 284 |
day-care centers under section 5747.35 of the Revised Code; | 285 |
(26) The credit for employers that employ qualified reforming | 286 |
felons under section 5747.391 of the Revised Code; | 287 |
(27) The ethanol plant investment credit under section | 288 |
5747.75 of the Revised Code; | 289 |
| 290 |
production property under section 5747.28 of the Revised Code; | 291 |
| 292 |
the Revised Code; | 293 |
| 294 |
technology transfer investors under section 5747.33 of the Revised | 295 |
Code; | 296 |
| 297 |
the Revised Code; | 298 |
| 299 |
5747.331 of the Revised Code; | 300 |
| 301 |
building under section 5747.76 of the Revised Code; | 302 |
| 303 |
(A) of section 5747.058 of the Revised Code; | 304 |
| 305 |
entity granted under section 5747.059 of the Revised Code; | 306 |
| 307 |
qualifying pass-through entity granted under division (J) of | 308 |
section 5747.08 of the Revised Code; | 309 |
| 310 |
division (B)(1) of section 5747.062 of the Revised Code; | 311 |
| 312 |
Revised Code for losses on loans made to the Ohio venture capital | 313 |
program under sections 150.01 to 150.10 of the Revised Code. | 314 |
(B) For any credit, except the credits enumerated in | 315 |
divisions (A) | 316 |
granted under division (I) of section 5747.08 of the Revised | 317 |
Code, the amount of the credit for a taxable year shall not | 318 |
exceed the tax due after allowing for any other credit that | 319 |
precedes it in the order required under this section. Any excess | 320 |
amount of a particular credit may be carried forward if | 321 |
authorized under the section creating that credit. Nothing in | 322 |
this chapter shall be construed to allow a taxpayer to claim, | 323 |
directly or indirectly, a credit more than once for a taxable | 324 |
year. | 325 |
Section 2. That existing sections 5733.98 and 5747.98 of the | 326 |
Revised Code are hereby repealed. | 327 |