S. B. No. 52 As Introduced

As Introduced

127th General Assembly

Regular Session

2007-2008

S. B. No. 52

Senator Clancy

Cosponsors: Senators Miller, D., Schuler, Stivers, Spada

A BILL

To amend section 5747.98 and to enact sections 122.85 1
and 5747.66 of the Revised Code to create a tax 2
credit for individuals who invest in 3
state-certified motion picture productions and to 4
create the Ohio Media Production Advisory 5
Committee to prepare a report about and make 6
recommendations for the growth of the electronic 7
media production industry throughout the state. 8

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

       Section 1. That section 5747.98 be amended and sections 9
122.85 and 5747.66 of the Revised Code be enacted to read as 10
follows: 11

       Sec. 122.85. (A) As used in this section: 12

       (1) "Base investment" has the same meaning as in section 13
5747.66 of the Revised Code. 14

       (2) "Company" means a corporation, partnership, limited 15
liability company, or other business entity. 16

       (3) "Headquartered in Ohio" means a corporation incorporated 17
in Ohio, or a partnership, limited liability company, or other 18
business entity domiciled and headquartered in Ohio. 19

       (4) "Motion picture production" means a nationally 20
distributed feature-length film, video, or television series made 21
in this state, in whole or in part, for theatrical or television 22
viewing, or as a television pilot, or a commercial made in this 23
state that will be broadcast or cablecast to at least twenty-five 24
per cent of the households in the United States, and includes home 25
videos for foreign or domestic retail distribution, digital 26
interactive media for retail distribution, music videos, 27
episodics, serials, infomercials, documentaries, pilots, and 28
programs produced for theatrical, cable, television network, or 29
syndicated release. "Motion picture production" does not include 30
political advocacy commercials, the production of radio or 31
television coverage of news or athletic events, or any other 32
production utilizing station staff. 33

       (5) "Motion picture production company" means a company 34
engaged in the business of producing motion pictures, but does not 35
include any company owned, affiliated, or controlled, in whole or 36
in part, by any company or person that is in default on a loan 37
made by the state or a loan guaranteed by the state. 38

       (B) For the purpose of encouraging the development in Ohio of 39
a strong capital base for motion picture productions in this 40
state, the director of development may certify a motion picture 41
produced by a motion picture production company as a 42
state-certified production, the investment in the production of 43
which may qualify for a tax credit under section 5747.66 of the 44
Revised Code. The director, in consultation with the tax 45
commissioner, shall adopt rules that establish criteria for 46
determining what motion picture productions qualify as 47
state-certified productions for purposes of this section and 48
section 5747.66 of the Revised Code. The rules shall require that 49
the motion picture production company be headquartered in Ohio; 50
that a motion picture production that is a theatrical film include 51
a credit acknowledgment in the film that it was filmed in this 52
state, and give credit to any Ohio film office rendering services 53
to the production; and that the form and content of applications 54
for tax credit certificates under this section include, at a 55
minimum, all of the following information: 56

       (1) The name and telephone number of the motion picture 57
production company; 58

       (2) The name and telephone number of the company's contact 59
person; 60

       (3) A list of the first preproduction date through the last 61
production date in Ohio; 62

       (4) The Ohio production office address and telephone number; 63

       (5) The total budget of the motion picture production; 64

       (6) The total expenditures in Ohio; 65

       (7) The total percentage of the motion picture production 66
being shot in Ohio; 67

       (8) The level of employment of Ohio cast and crew; 68

       (9) A synopsis of the script; 69

       (10) A creative elements list that includes the names of the 70
principal cast and crew, and the producer and director; 71

       (11) The date principal photography of the motion picture 72
production will begin; 73

       (12) The distribution plan for the motion picture production, 74
including domestic and international distribution, and the sales 75
estimates for the production. 76

       (C) An application for a tax credit certificate issued under 77
this section shall be completed before production of a motion 78
picture commences. Expenditures made prior to initial 79
certification of a motion picture production as a state-certified 80
production shall not be included in the calculation of base 81
investment under division (B) of section 5747.66 of the Revised 82
Code. 83

       (D)(1) The director of development shall submit the 84
director's initial certification of a motion picture production as 85
a state-certified production to the tax commissioner. The initial 86
certification shall include a unique identifying number for each 87
state-certified production. 88

       (2) Upon completion of the motion picture production, the 89
director of development shall review the motion picture production 90
company's base investment and issue a tax credit certificate to 91
any taxpayer who is an individual who invested in the motion 92
picture production and who may be eligible to claim the tax credit 93
under section 5747.66 of the Revised Code. The tax credit 94
certificate shall include the identifying number assigned to that 95
state-certified production in the initial certification. The 96
director shall issue certificates in the order in which the 97
principal photography of the motion picture production was 98
scheduled to begin. The director shall not issue a tax credit 99
certificate if the production, in the opinion of the director, 100
violates any Ohio obscenity statute. 101

       Sec. 5747.66. (A) As used in this section: 102

       (1) "Base investment" means expenditures paid by a motion 103
picture production company to companies headquartered in Ohio, 104
expenditures for Ohio resident talent employees, and that portion 105
of expenditures paid to Ohio residents for below-the-line employee 106
wages, benefits, payroll costs, production equipment and facility 107
rentals or purchases, legal services, accounting services, and 108
post-production services. Nonresident crew wages, benefits, and 109
payroll costs may be included in the calculation of base 110
investment under division (B) of this section if at least seventy 111
per cent of a state-certified production's crew wages and benefits 112
are allocated to Ohio residents and nonresident crew are treated 113
as Ohio employees and have Ohio employee withholding taxes 114
withheld from their wages. "Base investment" also includes: 115

       (a) Guaranteed holding fees and residuals for commercials in 116
an amount that does not exceed three times the screen actors 117
guild/American federation of television and radio artists scale; 118

       (b) Payments made to a talent or crew personal service 119
corporation if the corporation pays the tax levied under Chapter 120
5751. of the Revised Code on those payments, and the person 121
receiving payments from the corporation pays the tax levied under 122
section 5747.02 of the Revised Code on those payments and is 123
covered by the corporation under Ohio workers' compensation and 124
unemployment insurance; 125

       (c) Up to twenty per cent of combined talent agent 126
commissions or service fees; and 127

       (d) The cost of renting or purchasing highly specialized 128
production equipment from entities outside this state, provided 129
that the equipment is not available in this state and provided 130
that the application filed under section 122.85 of the Revised 131
Code clearly states the reason for having to do so. 132

       "Base investment" does not include talent wages, salaries, 133
and benefits paid in excess of three times the screen actors 134
guild/American federation of television and radio artists scale 135
for actors or artists with an equity box office interest or 136
similar interest in a motion picture production; advertising, 137
marketing, distribution, or post-production of a motion picture 138
production; meals, except craft services; car rentals; air 139
transportation; or lodging, except for Ohio resident talent or 140
crew. 141

       (2) "Company," "headquartered in Ohio," "motion picture 142
production," and "motion picture production company" have the same 143
meanings as in section 122.85 of the Revised Code. 144

       (3) "State-certified production" means a motion picture 145
production for which a tax credit certificate has been issued by 146
the director of development under section 122.85 of the Revised 147
Code. 148

       (B) Beginning in taxable year 2008, a nonrefundable credit is 149
allowed against the tax imposed by section 5747.02 of the Revised 150
Code for a taxpayer who is an individual who invests money in a 151
state-certified production. No taxpayer is entitled to a credit 152
under this section unless the taxpayer has obtained a tax credit 153
certificate issued by the director of development under division 154
(D)(2) of section 122.85 of the Revised Code. The credit shall be 155
calculated as a percentage of the investment, according to the 156
total base investment dollars certified for the production, as 157
follows: 158

       (1) If the total base investment is greater than three 159
hundred thousand dollars and less than or equal to eight million 160
dollars, the taxpayer shall be allowed a credit of fifteen per 161
cent of the actual investment made by the taxpayer; 162

       (2) If the total base investment is greater than eight 163
million dollars, the taxpayer shall be allowed a credit of twenty 164
per cent of the actual investment made by the taxpayer. 165

       The total dollar amount of credits that may be issued under 166
this section to taxpayers in a taxable year shall not exceed three 167
million dollars. 168

       (C) The credit shall be claimed in the taxable year indicated 169
on the tax credit certificate. The taxpayer shall claim the credit 170
allowed under this section in the order required by section 171
5747.98 of the Revised Code. The taxpayer may carry forward any 172
credit amount in excess of its tax due under section 5747.02 of 173
the Revised Code, after allowing for all other credits preceding 174
the credit allowed under this section in that order. The excess 175
credit, if any, may be carried forward for not more than three 176
taxable years following the taxable year for which the credit is 177
first claimed under this section. 178

       (D) The total tax credits taken under this section for a 179
state-certified production shall never exceed the total base 180
investment for that production, and the total dollar amount of tax 181
credits that may be taken for a state-certified production shall 182
not exceed five hundred thousand dollars. 183

       Sec. 5747.98. (A) To provide a uniform procedure for 184
calculating the amount of tax due under section 5747.02 of the 185
Revised Code, a taxpayer shall claim any credits to which the 186
taxpayer is entitled in the following order: 187

       (1) The retirement income credit under division (B) of 188
section 5747.055 of the Revised Code; 189

       (2) The senior citizen credit under division (C) of section 190
5747.05 of the Revised Code; 191

       (3) The lump sum distribution credit under division (D) of 192
section 5747.05 of the Revised Code; 193

       (4) The dependent care credit under section 5747.054 of the 194
Revised Code; 195

       (5) The lump sum retirement income credit under division (C) 196
of section 5747.055 of the Revised Code; 197

       (6) The lump sum retirement income credit under division (D) 198
of section 5747.055 of the Revised Code; 199

       (7) The lump sum retirement income credit under division (E) 200
of section 5747.055 of the Revised Code; 201

       (8) The low-income credit under section 5747.056 of the 202
Revised Code; 203

       (9) The credit for displaced workers who pay for job training 204
under section 5747.27 of the Revised Code; 205

       (10) The campaign contribution credit under section 5747.29 206
of the Revised Code; 207

       (11) The twenty-dollar personal exemption credit under 208
section 5747.022 of the Revised Code; 209

       (12) The joint filing credit under division (G) of section 210
5747.05 of the Revised Code; 211

       (13) The nonresident credit under division (A) of section 212
5747.05 of the Revised Code; 213

       (14) The credit for a resident's out-of-state income under 214
division (B) of section 5747.05 of the Revised Code; 215

       (15) The credit for employers that enter into agreements with 216
child day-care centers under section 5747.34 of the Revised Code; 217

       (16) The credit for employers that reimburse employee child 218
care expenses under section 5747.36 of the Revised Code; 219

       (17) The credit for adoption of a minor child under section 220
5747.37 of the Revised Code; 221

       (18) The credit for purchases of lights and reflectors under 222
section 5747.38 of the Revised Code; 223

       (19) The job retention credit under division (B) of section 224
5747.058 of the Revised Code; 225

       (20) The credit for purchases of new manufacturing machinery 226
and equipment under section 5747.26 or section 5747.261 of the 227
Revised Code; 228

       (21) The second credit for purchases of new manufacturing 229
machinery and equipment and the credit for using Ohio coal under 230
section 5747.31 of the Revised Code; 231

       (22) The job training credit under section 5747.39 of the 232
Revised Code; 233

       (23) The enterprise zone credit under section 5709.66 of the 234
Revised Code; 235

       (24) The credit for the eligible costs associated with a 236
voluntary action under section 5747.32 of the Revised Code; 237

       (25) The credit for employers that establish on-site child 238
day-care centers under section 5747.35 of the Revised Code; 239

       (26) The ethanol plant investment credit under section 240
5747.75 of the Revised Code; 241

       (27) The credit for purchases of qualifying grape production 242
property under section 5747.28 of the Revised Code; 243

       (28) The export sales credit under section 5747.057 of the 244
Revised Code; 245

       (29) The credit for research and development and technology 246
transfer investors under section 5747.33 of the Revised Code; 247

       (30) The enterprise zone credits under section 5709.65 of the 248
Revised Code; 249

       (31) The research and development credit under section 250
5747.331 of the Revised Code; 251

       (32) The motion picture production investment credit under 252
section 5747.66 of the Revised Code; 253

       (33) The refundable jobs creation credit under division (A) 254
of section 5747.058 of the Revised Code; 255

       ~~(33)~~(34) The refundable credit for taxes paid by a qualifying 256
entity granted under section 5747.059 of the Revised Code; 257

       ~~(34)~~(35) The refundable credits for taxes paid by a 258
qualifying pass-through entity granted under division (J) of 259
section 5747.08 of the Revised Code; 260

       ~~(35)~~(36) The refundable credit for tax withheld under 261
division (B)(1) of section 5747.062 of the Revised Code; 262

       ~~(36)~~(37) The refundable credit under section 5747.80 of the 263
Revised Code for losses on loans made to the Ohio venture capital 264
program under sections 150.01 to 150.10 of the Revised Code. 265

       (B) For any credit, except the credits enumerated in 266
divisions (A)~~(32)~~(33) to ~~(36)~~(37) of this section and the credit 267
granted under division (I) of section 5747.08 of the Revised Code, 268
the amount of the credit for a taxable year shall not exceed the 269
tax due after allowing for any other credit that precedes it in 270
the order required under this section. Any excess amount of a 271
particular credit may be carried forward if authorized under the 272
section creating that credit. Nothing in this chapter shall be 273
construed to allow a taxpayer to claim, directly or indirectly, a 274
credit more than once for a taxable year. 275

       Section 2. That existing section 5747.98 of the Revised Code 276
is hereby repealed. 277

       Section 3. (A)(1) The Ohio Media Production Advisory 278
Committee shall conduct a comprehensive study of the electronic 279
media production industry in Ohio. The study shall identify and 280
benchmark Ohio's current and potential capabilities for growth in 281
the sectors and subsectors of commercials and industrial, 282
educational, and entertainment media. 283

       (2) Based on the study, the Committee shall prepare a 284
comprehensive report of its findings, along with recommendations 285
for private sector and public policy initiatives that can lead to 286
the future growth of the electronic media production industry, 287
increase job opportunities, and enhance Ohio's image as a 288
desirable place to do business. 289

        (3) Broadcast and cable television, radio stations, and 290
musical and performing arts groups shall not be within the 291
Committee's purview or addressed in its study or report. 292

       (B) In carrying out its duties under division (A) of this 293
section, the Ohio Media Production Advisory Committee shall 294
identify competitive market factors and seek input and advice from 295
specialists in Ohio and elsewhere who are involved in the 296
production of electronic media, including national, regional, and 297
local advertisers and advertising agencies; production, 298
post-production, and sound recording studios; equipment and crew 299
service vendors; independent producers; writers; the academic 300
community; specialists in entertainment law, accounting, and 301
finance; elected and appointed officials; and business, trade, 302
labor, and professional organizations. 303

       (C) Not later than nine months after the effective date of 304
this section, the Committee shall provide to the General Assembly 305
copies of its recommendations and report. 306

       Section 4. (A) The Ohio Media Production Advisory Committee 307
is hereby created to advise the Director of Development on issues 308
pertaining to electronic media production growth throughout Ohio; 309
to evaluate and advise the General Assembly as to the 310
effectiveness of the tax credit enacted by this act; to offer 311
advice to the Director regarding the adoption under section 122.85 312
of the Revised Code of rules for, and the interpretation and 313
implementation of, the tax credit; and to carry out the duties 314
prescribed in Section 3 of this act. The Committee shall consist 315
of the following members: 316

       (1) Three members of the House of Representatives, to be 317
appointed by the Speaker of the House of Representatives in 318
consultation with the Minority Leader of the House of 319
Representatives; 320

       (2) Three members of the Senate, to be appointed by the 321
President of the Senate in consultation with the Minority Leader 322
of the Senate; 323

       (3) One representative of one film commission in Ohio, to be 324
appointed by the Governor; 325

       (4) One representative of the Department of Taxation, to be 326
appointed by the Tax Commissioner; 327

       (5) One representative of the Department of Development, to 328
be appointed by the Director of Development; 329

       (6) One representative of each of the following entities 330
headquartered in Ohio, to be appointed by the Governor: 331

        (a) A national advertiser; 332

        (b) An advertising agency; 333

        (c) A production company; 334

        (d) A post-production company; 335

        (e) A sound recording facility; 336

       (f) A production payroll, production tax, or production 337
accounting firm; 338

        (g) An independent producer; 339

        (h) An equipment and crew service provider; 340

        (i) Talent from the Screen Actors Guild or the American 341
Federation of Television and Radio Artists. 342

        (7) One representative each from a full service production 343
company headquartered in northeast Ohio, in central Ohio, and in 344
southwest Ohio, all three of these representatives to be appointed 345
by the Governor; 346

        (8) One representative of higher education in Ohio who is 347
involved with media production, to be appointed by the Governor. 348

       (B) Appointments to the Committee shall be made within thirty 349
days after the effective date of this section. The chairperson of 350
the Committee shall be one of the Senate members of the Committee, 351
selected by the President of the Senate. The Committee shall meet 352
at least once every two months. Members of the Committee shall 353
serve without compensation. 354

       (C) Upon submission of its recommendations and report under 355
Section 3 of this act, the Committee shall cease to exist. 356

       Section 5. From fiscal year 2008 appropriations to the 357
Department of Development that may be used for this purpose, the 358
Director of Development shall provide up to $50,000 to pay for the 359
study and report required by Section 3 of this act. 360

Section 1. That section 5747.98 be amended and sections	9
122.85 and 5747.66 of the Revised Code be enacted to read as	10
follows:	11

(1) "Base investment" has the same meaning as in section	13
5747.66 of the Revised Code.	14

(2) "Company" means a corporation, partnership, limited	15
liability company, or other business entity.	16

(3) "Headquartered in Ohio" means a corporation incorporated	17
in Ohio, or a partnership, limited liability company, or other	18
business entity domiciled and headquartered in Ohio.	19

(4) "Motion picture production" means a nationally	20
distributed feature-length film, video, or television series made	21
in this state, in whole or in part, for theatrical or television	22
viewing, or as a television pilot, or a commercial made in this	23
state that will be broadcast or cablecast to at least twenty-five	24
per cent of the households in the United States, and includes home	25
videos for foreign or domestic retail distribution, digital	26
interactive media for retail distribution, music videos,	27
episodics, serials, infomercials, documentaries, pilots, and	28
programs produced for theatrical, cable, television network, or	29
syndicated release. "Motion picture production" does not include	30
political advocacy commercials, the production of radio or	31
television coverage of news or athletic events, or any other	32
production utilizing station staff.	33

(5) "Motion picture production company" means a company	34
engaged in the business of producing motion pictures, but does not	35
include any company owned, affiliated, or controlled, in whole or	36
in part, by any company or person that is in default on a loan	37
made by the state or a loan guaranteed by the state.	38

(B) For the purpose of encouraging the development in Ohio of	39
a strong capital base for motion picture productions in this	40
state, the director of development may certify a motion picture	41
produced by a motion picture production company as a	42
state-certified production, the investment in the production of	43
which may qualify for a tax credit under section 5747.66 of the	44
Revised Code. The director, in consultation with the tax	45
commissioner, shall adopt rules that establish criteria for	46
determining what motion picture productions qualify as	47
state-certified productions for purposes of this section and	48
section 5747.66 of the Revised Code. The rules shall require that	49
the motion picture production company be headquartered in Ohio;	50
that a motion picture production that is a theatrical film include	51
a credit acknowledgment in the film that it was filmed in this	52
state, and give credit to any Ohio film office rendering services	53
to the production; and that the form and content of applications	54
for tax credit certificates under this section include, at a	55
minimum, all of the following information:	56

(1) The name and telephone number of the motion picture	57
production company;	58

(2) The name and telephone number of the company's contact	59
person;	60

(3) A list of the first preproduction date through the last	61
production date in Ohio;	62

(7) The total percentage of the motion picture production	66
being shot in Ohio;	67

(10) A creative elements list that includes the names of the	70
principal cast and crew, and the producer and director;	71

(11) The date principal photography of the motion picture	72
production will begin;	73

(12) The distribution plan for the motion picture production,	74
including domestic and international distribution, and the sales	75
estimates for the production.	76

(C) An application for a tax credit certificate issued under	77
this section shall be completed before production of a motion	78
picture commences. Expenditures made prior to initial	79
certification of a motion picture production as a state-certified	80
production shall not be included in the calculation of base	81
investment under division (B) of section 5747.66 of the Revised	82
Code.	83

(D)(1) The director of development shall submit the	84
director's initial certification of a motion picture production as	85
a state-certified production to the tax commissioner. The initial	86
certification shall include a unique identifying number for each	87
state-certified production.	88

(2) Upon completion of the motion picture production, the	89
director of development shall review the motion picture production	90
company's base investment and issue a tax credit certificate to	91
any taxpayer who is an individual who invested in the motion	92
picture production and who may be eligible to claim the tax credit	93
under section 5747.66 of the Revised Code. The tax credit	94
certificate shall include the identifying number assigned to that	95
state-certified production in the initial certification. The	96
director shall issue certificates in the order in which the	97
principal photography of the motion picture production was	98
scheduled to begin. The director shall not issue a tax credit	99
certificate if the production, in the opinion of the director,	100
violates any Ohio obscenity statute.	101

(1) "Base investment" means expenditures paid by a motion	103
picture production company to companies headquartered in Ohio,	104
expenditures for Ohio resident talent employees, and that portion	105
of expenditures paid to Ohio residents for below-the-line employee	106
wages, benefits, payroll costs, production equipment and facility	107
rentals or purchases, legal services, accounting services, and	108
post-production services. Nonresident crew wages, benefits, and	109
payroll costs may be included in the calculation of base	110
investment under division (B) of this section if at least seventy	111
per cent of a state-certified production's crew wages and benefits	112
are allocated to Ohio residents and nonresident crew are treated	113
as Ohio employees and have Ohio employee withholding taxes	114
withheld from their wages. "Base investment" also includes:	115

(a) Guaranteed holding fees and residuals for commercials in	116
an amount that does not exceed three times the screen actors	117
guild/American federation of television and radio artists scale;	118

(b) Payments made to a talent or crew personal service	119
corporation if the corporation pays the tax levied under Chapter	120
5751. of the Revised Code on those payments, and the person	121
receiving payments from the corporation pays the tax levied under	122
section 5747.02 of the Revised Code on those payments and is	123
covered by the corporation under Ohio workers' compensation and	124
unemployment insurance;	125

(c) Up to twenty per cent of combined talent agent	126
commissions or service fees; and	127

(d) The cost of renting or purchasing highly specialized	128
production equipment from entities outside this state, provided	129
that the equipment is not available in this state and provided	130
that the application filed under section 122.85 of the Revised	131
Code clearly states the reason for having to do so.	132

"Base investment" does not include talent wages, salaries,	133
and benefits paid in excess of three times the screen actors	134
guild/American federation of television and radio artists scale	135
for actors or artists with an equity box office interest or	136
similar interest in a motion picture production; advertising,	137
marketing, distribution, or post-production of a motion picture	138
production; meals, except craft services; car rentals; air	139
transportation; or lodging, except for Ohio resident talent or	140
crew.	141

(2) "Company," "headquartered in Ohio," "motion picture	142
production," and "motion picture production company" have the same	143
meanings as in section 122.85 of the Revised Code.	144

(3) "State-certified production" means a motion picture	145
production for which a tax credit certificate has been issued by	146
the director of development under section 122.85 of the Revised	147
Code.	148

(B) Beginning in taxable year 2008, a nonrefundable credit is	149
allowed against the tax imposed by section 5747.02 of the Revised	150
Code for a taxpayer who is an individual who invests money in a	151
state-certified production. No taxpayer is entitled to a credit	152
under this section unless the taxpayer has obtained a tax credit	153
certificate issued by the director of development under division	154
(D)(2) of section 122.85 of the Revised Code. The credit shall be	155
calculated as a percentage of the investment, according to the	156
total base investment dollars certified for the production, as	157
follows:	158

(1) If the total base investment is greater than three	159
hundred thousand dollars and less than or equal to eight million	160
dollars, the taxpayer shall be allowed a credit of fifteen per	161
cent of the actual investment made by the taxpayer;	162

(2) If the total base investment is greater than eight	163
million dollars, the taxpayer shall be allowed a credit of twenty	164
per cent of the actual investment made by the taxpayer.	165

The total dollar amount of credits that may be issued under	166
this section to taxpayers in a taxable year shall not exceed three	167
million dollars.	168

(C) The credit shall be claimed in the taxable year indicated	169
on the tax credit certificate. The taxpayer shall claim the credit	170
allowed under this section in the order required by section	171
5747.98 of the Revised Code. The taxpayer may carry forward any	172
credit amount in excess of its tax due under section 5747.02 of	173
the Revised Code, after allowing for all other credits preceding	174
the credit allowed under this section in that order. The excess	175
credit, if any, may be carried forward for not more than three	176
taxable years following the taxable year for which the credit is	177
first claimed under this section.	178