Sec. 718.17. The legislative authority of a municipal | 12 |
corporation, by ordinance, may grant a credit against a tax | 13 |
imposed on income to an individual who is subject to the tax and | 14 |
who qualifies for a credit authorized under section 3333.51 of the | 15 |
Revised Code. The legislative authority may establish credit | 16 |
amounts and limits, refundability attributes, carry-forward | 17 |
periods, deferral periods and procedures, and recapture penalties | 18 |
other than as prescribed in sections 3333.51 and 5747.81 of the | 19 |
Revised Code. | 20 |
(B)(1) For the purpose of developing and maintaining a highly
| 43 |
qualified workforce and thereby to improve the economic welfare of
| 44 |
all Ohioans, an individual who graduates on or after the effective
| 45 |
date of the enactment of this section from an institution of | 46 |
higher education with
a degree in an approved field of study is | 47 |
allowed a credit against
the tax imposed by section 5747.02 of | 48 |
the Revised Code. Except as
provided in division (D) of this | 49 |
section, the credit shall equal
five thousand dollars in the case | 50 |
of an associate's degree; twenty
thousand dollars in the case of | 51 |
a baccalaureate degree; and thirty
thousand dollars in the case | 52 |
of a master's or doctoral degree.
Except as otherwise provided in | 53 |
this section, the individual shall
claim one-tenth of the credit | 54 |
amount for the individual's taxable
year in which the | 55 |
individual's credit application was approved and
one-tenth of the | 56 |
credit amount in each of the succeeding nine
taxable years. | 57 |
(2) An individual is liable to the state for credit taken
| 58 |
with respect to a degree, and forfeits unused credit and any | 59 |
credit
carry-forward, if the individual has been allowed the | 60 |
credit for
five or fewer of the individual's taxable years, the | 61 |
individual is
a nonresident of Ohio, and the individual is not a | 62 |
full-time
student at an institution of higher education in an | 63 |
approved field
of study. A credit shall not be considered to have | 64 |
been allowed
for taxable years for which a deferral under | 65 |
division (D) of this
section has been authorized and used. Any | 66 |
amount for which an
individual is liable under this division may | 67 |
be collected by
assessment under section 5747.13 of the Revised | 68 |
Code, and shall be
considered as taxes imposed under section | 69 |
5747.02 of the Revised
Code. | 70 |
(C) An individual shall apply for a credit to the Ohio board
| 71 |
of regents or to the board's designee on a form approved by the
| 72 |
board or designee and shall submit any documents required by the
| 73 |
board or designee. If the individual qualifies for a credit, the
| 74 |
board or designee shall issue a tax credit certificate to the
| 75 |
individual. The certificate shall state the individual's name and
| 76 |
social security number, the date the credit application was
| 77 |
approved, the credit amount, and the taxable years for which the
| 78 |
credit shall be claimed. | 79 |
(D)(1) An individual who has received a credit certificate
| 80 |
for an associate's or baccalaureate degree or both may apply for
| 81 |
an additional certificate for receipt of a more advanced degree
| 82 |
from an institution of higher education in an approved field of
| 83 |
study. The credit amount for the additional degree equals the
| 84 |
credit amount for the degree as provided in division (B) of this
| 85 |
section less the credit amount for the degree or degrees for which
| 86 |
a credit certificate has previously been issued. The credit shall
| 87 |
be applied for, approved, and claimed in the manner required under
| 88 |
division (B) of this section. | 89 |
(2) An individual who has received a credit certificate
| 90 |
pursuant to this section may apply to the Ohio board of regents or
| 91 |
the board's designee to defer claiming the credit and any related
| 92 |
credit carry-forward. The deferral application shall be submitted
| 93 |
on a form approved by the board or designee and shall be
| 94 |
accompanied by such documents as the board or designee requires.
| 95 |
The board or designee shall approve the deferral if the individual
| 96 |
is enrolled full time in an institution of higher education to
| 97 |
pursue a more advanced degree in an approved field of study. The
| 98 |
individual may defer claiming the credit until the individual's
| 99 |
taxable year in which the individual is no longer a full-time
| 100 |
student in an institution of higher education in an approved field
| 101 |
of study or in which the individual receives a credit certificate
| 102 |
for the more advanced degree, whichever is earlier. | 103 |
(F) The Ohio board of regents shall identify institutions of
| 107 |
higher education and approved fields of study, and shall specify
| 108 |
the information required to be disclosed in credit certificate and
| 109 |
deferral applications and the documents required to be submitted.
| 110 |
In identifying approved fields of study, the board shall give
| 111 |
priority to those related to information technology, power and
| 112 |
propulsion, advanced materials, instruments and controls,
| 113 |
electronics, and biotechnology and biosciences. | 114 |
Sec. 5747.08. An annual return with respect to the tax
| 115 |
imposed by section 5747.02 of the Revised Code and each tax
| 116 |
imposed under Chapter 5748. of the Revised Code shall be made by
| 117 |
every taxpayer for any taxable year for which the taxpayer is
| 118 |
liable for the tax imposed by that section or under that chapter,
| 119 |
unless the total credits allowed under divisions (E), (F), and
(G)
| 120 |
of section 5747.05 of the Revised Code for the year are equal
to
| 121 |
or exceed the tax imposed by section 5747.02 of the Revised
Code,
| 122 |
in which case no return shall be required unless the
taxpayer is
| 123 |
liable for a tax imposed pursuant to Chapter 5748. of
the Revised
| 124 |
Code.
| 125 |
(D)(1)(a) Except as otherwise provided in
division (D)(1)(b)
| 138 |
of this section, any
pass-through entity
may file a single return
| 139 |
on behalf of
one or more of the entity's investors other than an
| 140 |
investor that is a
person subject
to the tax imposed under section
| 141 |
5733.06 of the Revised Code. The single
return shall set forth
the
| 142 |
name, address, and social security number
or other identifying
| 143 |
number of each
of those
pass-through entity investors
and shall
| 144 |
indicate the distributive
share of each of those
pass-through
| 145 |
entity investor's income
taxable in this state
in accordance with
| 146 |
sections 5747.20 to
5747.231 of the
Revised
Code. Such
| 147 |
pass-through entity investors
for whom the pass-through entity
| 148 |
elects to file a single return
are not entitled to the exemption
| 149 |
or credit provided for by
sections 5747.02 and 5747.022 of the
| 150 |
Revised
Code; shall calculate
the tax
before business credits at
| 151 |
the highest rate of tax set
forth in
section 5747.02 of the
| 152 |
Revised
Code for the taxable year
for
which the return is filed;
| 153 |
and are entitled to only their
distributive share of the business
| 154 |
credits as defined in
division
(D)(2) of this
section. A single
| 155 |
check drawn by the pass-through
entity shall
accompany
the return
| 156 |
in full payment of the tax due, as shown on the single return,
for
| 157 |
such investors, other than investors who are persons
subject to
| 158 |
the tax imposed under section 5733.06 of the
Revised Code.
| 159 |
(c) Nothing in division
(D) of this section precludes
the
tax
| 170 |
commissioner from requiring such investors to file the
return
and
| 171 |
make the payment of taxes and related interest,
penalty, and
| 172 |
interest penalty required by this section or
section 5747.02,
| 173 |
5747.09, or 5747.15 of the
Revised Code. Nothing in division
(D)
| 174 |
of this section shall be
construed to provide to such an investor
| 175 |
or pass-through entity
any additional deduction or credit, other
| 176 |
than the credit
provided by division (J) of
this section, solely
| 177 |
on account of the entity's filing a return
in accordance with this
| 178 |
section. Such a pass-through entity also
shall make the filing
and
| 179 |
payment of estimated taxes on behalf of the pass-through
entity
| 180 |
investors other than an
investor that is a person subject
to the
| 181 |
tax imposed under section 5733.06
of the Revised Code.
| 182 |
(3) The election provided for under division
(D) of this
| 215 |
section applies
only to the taxable year for which the election is
| 216 |
made by the
pass-through entity. Unless the tax commissioner
| 217 |
provides
otherwise, this election, once made, is binding and
| 218 |
irrevocable
for the taxable year for which the election is made.
| 219 |
Nothing in
this division shall be construed to provide for any
| 220 |
deduction or
credit that would not be allowable if a nonresident
| 221 |
pass-through
entity investor were to file an annual return.
| 222 |
(4) If a pass-through entity makes the election provided
for
| 223 |
under division (D) of this
section, the pass-through entity shall
| 224 |
be liable for any
additional taxes, interest, interest penalty, or
| 225 |
penalties imposed by this
chapter
if the tax
commissioner
finds
| 226 |
that
the single return does
not reflect the
correct tax
due by
the
| 227 |
pass-through
entity investors
covered by that
return. Nothing in
| 228 |
this
division shall be
construed to limit or
alter the liability,
| 229 |
if
any, imposed on
pass-through entity
investors for unpaid or
| 230 |
underpaid taxes,
interest, interest
penalty, or penalties as a
| 231 |
result of the
pass-through entity's
making the election provided
| 232 |
for under
division (D) of this
section.
For the purposes of
| 233 |
division
(D) of
this section,
"correct tax due" means the tax that
| 234 |
would have been
paid by the
pass-through entity had the single
| 235 |
return been filed
in a manner
reflecting
the tax
commissioner's
| 236 |
findings. Nothing
in
division (D) of this section
shall be
| 237 |
construed to make or hold
a
pass-through entity liable
for tax
| 238 |
attributable to a
pass-through
entity investor's
income
from a
| 239 |
source other than the
pass-through
entity electing
to file
the
| 240 |
single return.
| 241 |
(E) If a husband and wife file a joint federal income tax
| 242 |
return for a taxable year, they shall file a joint return under
| 243 |
this section for that taxable year, and their liabilities are
| 244 |
joint and several, but, if the federal income tax liability of
| 245 |
either spouse is determined on a separate federal income tax
| 246 |
return, they shall file separate returns under this section.
| 247 |
If either spouse is not required to file a federal income
tax
| 248 |
return and either or both are required to file a return
pursuant
| 249 |
to this chapter, they may elect to file separate or
joint returns,
| 250 |
and, pursuant to that election, their liabilities are
separate or
| 251 |
joint and several. If a husband and wife file
separate returns
| 252 |
pursuant to this chapter, each must claim the taxpayer's
own
| 253 |
exemption, but not both, as authorized under
section
5747.02 of
| 254 |
the Revised Code on the taxpayer's own
return.
| 255 |
(G) Each return or notice required to be filed under this
| 264 |
section shall be made and filed as required by section 5747.04 of
| 265 |
the Revised Code, on or before the fifteenth day of April of each
| 266 |
year, on forms that the tax commissioner shall prescribe,
together
| 267 |
with remittance made payable to the treasurer of state
in the
| 268 |
combined amount of the state and all school district
income taxes
| 269 |
shown to be due on the form, unless the combined amount
shown to
| 270 |
be due is one dollar or less, in which case that amount
need not
| 271 |
be remitted.
| 272 |
Upon good cause shown, the tax commissioner may extend the
| 273 |
period
for filing any notice or return required to be filed under
| 274 |
this
section and may adopt rules relating to extensions. If the
| 275 |
extension results in an extension of time for the payment of any
| 276 |
state or school district income tax liability with respect to
| 277 |
which the return is filed, the taxpayer shall pay at the time the
| 278 |
tax liability is paid an amount of interest computed at the rate
| 279 |
per annum prescribed by section 5703.47 of the Revised Code on
| 280 |
that liability from the time that payment is due without
extension
| 281 |
to the time of actual payment. Except as
provided in section
| 282 |
5747.132 of the Revised Code, in
addition to all
other interest
| 283 |
charges and penalties, all taxes imposed under this chapter
or
| 284 |
Chapter 5748. of the
Revised
Code and remaining
unpaid after they
| 285 |
become due, except combined amounts due of one
dollar or less,
| 286 |
bear interest at the rate per annum prescribed by
section 5703.47
| 287 |
of the Revised Code until paid or until the day an
assessment is
| 288 |
issued under section 5747.13 of the Revised Code, whichever
occurs
| 289 |
first.
| 290 |
(H) If any report, claim, statement, or other document
| 299 |
required to be filed, or any payment required to be made, within
a
| 300 |
prescribed period or on or before a prescribed date under this
| 301 |
chapter is delivered after that period or that date by United
| 302 |
States mail to the agency, officer, or office with which the
| 303 |
report, claim,
statement, or other document is required to be
| 304 |
filed, or to which the payment is required to be made, the date
of
| 305 |
the postmark stamped on the cover in which the report, claim,
| 306 |
statement, or other document, or payment is mailed shall be
deemed
| 307 |
to be the date of delivery or the date of payment.
| 308 |
(J) If, in accordance
with division (D) of this
section, a
| 322 |
pass-through entity elects to file a single return
and if any
| 323 |
investor is required to file the return and make the
payment of
| 324 |
taxes required by this chapter on account of the
investor's other
| 325 |
income that is not included in a single return
filed by a
| 326 |
pass-through entity, the investor is entitled to a
refundable
| 327 |
credit equal to the investor's proportionate share of
the tax paid
| 328 |
by the pass-through entity on behalf of the
investor. The
investor
| 329 |
shall claim the credit for the
investor's taxable year in
which or
| 330 |
with which ends the taxable
year of the pass-through
entity.
| 331 |
Nothing in this chapter shall
be construed to allow any
credit
| 332 |
provided in this chapter to be
claimed more than once. For
the
| 333 |
purposes of computing any
interest, penalty, or interest
penalty,
| 334 |
the investor shall be
deemed to have paid the refundable
credit
| 335 |
provided by this
division on the day that the pass-through
entity
| 336 |
paid the
estimated tax or the tax giving rise to the
credit.
| 337 |
(K) The tax commissioner shall ensure that each return
| 338 |
required to be filed under this section includes a box that the
| 339 |
taxpayer may check to authorize a paid tax preparer who prepared
| 340 |
the return to communicate with the department of taxation about
| 341 |
matters pertaining to the return. The return or instructions
| 342 |
accompanying the return shall indicate that by checking the box
| 343 |
the taxpayer authorizes the department of taxation to contact the
| 344 |
preparer concerning questions that arise during the processing of
| 345 |
the return and authorizes the preparer only to provide the
| 346 |
department with information that is missing from the return, to
| 347 |
contact the department for information about the processing of the
| 348 |
return or the status of the taxpayer's refund or payments, and to
| 349 |
respond to notices about mathematical errors, offsets, or return
| 350 |
preparation that the taxpayer has received from the department and
| 351 |
has shown to the preparer.
| 352 |
Sec. 5747.81. A taxpayer to whom a tax credit certificate
| 353 |
has been issued under section 3333.51 of the Revised Code is
| 354 |
allowed a nonrefundable credit against the tax imposed by section
| 355 |
5747.02 of the Revised Code. The credit shall be claimed as
| 356 |
provided in section 3333.51 of the Revised Code and in the order
| 357 |
required under section 5747.98 of the Revised Code. The amount of
| 358 |
credit claimed for a taxable year shall not exceed the tax
| 359 |
otherwise due after allowing for all preceding credits in that
| 360 |
order. If the
amount of credit allowed for a taxable year exceeds
| 361 |
the tax
otherwise due, the excess may be carried forward to the
| 362 |
next
taxable year. Excess credit allowed in a taxable year shall
| 363 |
be
deducted from the balance carried forward to the ensuing
| 364 |
taxable
year. If a credit may not be claimed for a taxable year,
| 365 |
excess
credit with respect to the same credit certificate may not
| 366 |
be
claimed. | 367 |
(B) For any nonrefundable credit, except the credits
| 455 |
enumerated
in
divisions (A)(33) to (38) of
this
section
and
the
| 456 |
credit
granted
under division
(I) of
section
5747.08 of
the
| 457 |
Revised
Code, the
amount of the credit
for
a
taxable year
shall
| 458 |
not
exceed the tax
due after allowing for any
other credit
that
| 459 |
precedes it in the
order required under this
section. Any
excess
| 460 |
amount of a
particular credit may be carried
forward if
| 461 |
authorized
under the
section creating that credit.
Nothing in
| 462 |
this
chapter
shall be
construed to allow a taxpayer to
claim,
| 463 |
directly
or
indirectly, a
credit more than once for a
taxable
| 464 |
year.
| 465 |