As Introduced

128th General Assembly Regular Session 2009-2010

H. B. No. 617

Representative O'Farrell 

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A BILL

To amend sections 122.17, 5725.98, 5729.98, 5733.98,

1

5747.98, and 5751.98 and to enact section 122.175

2

of the Revised Code to authorize refundable tax

3

credits to foster job creation and capital

4

investment in the Ohio Appalachian Region.

5

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

Section 1. That sections 122.17, 5725.98, 5729.98, 5733.98,	6
5747.98, and 5751.98 be amended and section 122.175 of the Revised	7
Code be enacted to read as follows:	8

Sec. 122.17.  (A) As used in this section:

9

(1) "Income tax revenue" means the total amount withheld	10
under section 5747.06 of the Revised Code by the taxpayer during	11
the taxable year, or during the calendar year that includes the	12
tax period, from the compensation of each employee employed in the	13
project to the extent the employee's withholdings are not used to	14
determine the credit under section 122.171 of the Revised Code.	15
"Income tax revenue" excludes amounts withheld before the day the	16
taxpayer becomes eligible for the credit.	17

(2) "Baseline income tax revenue" means income tax revenue	18
except that the applicable withholding period is the twelve months	19
immediately preceding the date the tax credit authority approves	20
the taxpayer's application multiplied by the sum of one plus an	21
annual pay increase factor to be determined by the tax credit	22
authority. If the taxpayer becomes eligible for the credit after	23
the first day of the taxpayer's taxable year or after the first	24
day of the calendar year that includes the tax period, the	25
taxpayer's baseline income tax revenue for the first such taxable	26
or calendar year of credit eligibility shall be reduced in	27
proportion to the number of days during the taxable or calendar	28
year for which the taxpayer was not eligible for the credit. For	29
subsequent taxable or calendar years, "baseline income tax	30
revenue" equals the unreduced baseline income tax revenue for the	31
preceding taxable or calendar year multiplied by the sum of one	32
plus the pay increase factor.	33

(3) "Excess income tax revenue" means income tax revenue	34
minus baseline income tax revenue.	35

(4) "Taxable year" means the period covered by the taxpayer's	36
annual statement to the superintendent of insurance for purposes	37
of the credits granted by this section against the taxes imposed	38
under sections 5725.18 and 5729.03 of the Revised Code.	39

(5) "Appalachian region" has the same meaning as in section	40
107.21 of the Revised Code.	41

(B)(1) The tax credit authority may make grants under this	42
section to foster job creation in this state. Such a grant shall	43
take the form of a refundable credit allowed against the tax	44
imposed by section 5725.18, 5729.03, 5733.06, or 5747.02, or	45
levied under Chapter 5751.5751.02 of the Revised Code. The credit	46
shall be claimed for the taxable years or tax periods specified in	47
the taxpayer's agreement with the tax credit authority under	48
division (D) of this section. With respect to taxes imposed under	49
section 5733.06 or 5747.02 or Chapter 5751. of the Revised Code,	50
theThe credit shall be claimed in the order required under	51
section 5725.98, 5729.98, 5733.98, 5747.98, or 5751.98 of the	52
Revised Code. The amount of the credit available for a taxable	53
year or for a calendar year that includes a tax period equals the	54
excess income tax revenue for that year multiplied by the	55
percentage specified in the agreement with the tax credit	56
authority. Any credit granted under this section against the tax	57
imposed by section 5733.06 or 5747.02 of the Revised Code, to the	58
extent not fully utilized against such tax for taxable years	59
ending prior to 2008, shall automatically be converted without any	60
action taken by the tax credit authority to a credit against the	61
tax levied under Chapter 5751.section 5751.02 of the Revised Code	62
for tax periods beginning on or after July 1, 2008, provided that	63
the person to whom the credit was granted is subject to such tax.	64
The converted credit shall apply to those calendar years in which	65
the remaining taxable years specified in the agreement end.	66

(2) The tax credit authority may make grants in the form of a	67
refundable credit to a taxpayer or potential taxpayer to foster	68
job creation in the Appalachian region. Grants made under division	69
(B)(2) of this section are subject to the same requirements and	70
limitations applicable to grants made under division (B)(1) of	71
this section, except as follows:	72

(a) The project site shall be located in the Appalachian	73
region.	74

(b) The taxpayer must create at least ten full-time	75
equivalent employees at the project location.	76

(c) Eligibility for the grant may not be conditioned on any	77
of the following:	78

(i) The creation of more than ten full-time equivalent	79
employees at the project location;	80

(ii) The generation of a minimum amount of additional	81
payroll;	82

(iii) A demonstration that a certain percentage of sales of	83
services, or revenues generated by sales of services, are	84
generated or projected to be generated outside Ohio;	85

(iv) Whether the project site consists solely or partly of	86
point-of-final-purchase retail facilities, notwithstanding	87
division (F) of this section.	88

(d) The application fee may not exceed the actual and	89
reasonable cost of processing the application. No fees other than	90
an application fee and late fees may be charged.	91

(e) The credit may equal one hundred per cent of excess	92
income tax revenue.	93

(f) The credit may be claimed against the taxes identified in	94
division (B)(1) of this section, or the tax levied in section	95
5707.03 of the Revised Code and assessed pursuant to section	96
5725.13 of the Revised Code.	97

For purposes of division (B)(2) of this section, "full-time	98
equivalent employees" has the same meaning as in section 122.171	99
of the Revised Code.	100

(C) A taxpayer or potential taxpayer who proposes a project	101
to create new jobs in this state may apply to the tax credit	102
authority to enter into an agreement for a tax credit under this	103
section. The director of development shall prescribe the form of	104
the application. After receipt of an application, the authority	105
may enter into an agreement with the taxpayer for a credit under	106
this section if it determines all of the following:	107

(1) The taxpayer's project will increase payroll and income	108
tax revenue;	109

(2) The taxpayer's project is economically sound and will	110
benefit the people of this state by increasing opportunities for	111
employment and strengthening the economy of this state;	112

(3) Receiving the tax credit is a major factor in the	113
taxpayer's decision to go forward with the project.	114

(D) An agreement under this section shall include all of the	115
following:	116

(1) A detailed description of the project that is the subject	117
of the agreement;	118

(2) The term of the tax credit, which shall not exceed	119
fifteen years, and the first taxable year, or first calendar year	120
that includes a tax period, for which the credit may be claimed;	121

(3) A requirement that the taxpayer shall maintain operations	122
at the project location for at least the greater of seven years or	123
the term of the credit plus three years;	124

(4) The percentage, as determined by the tax credit	125
authority, of excess income tax revenue that will be allowed as	126
the amount of the credit for each taxable year or for each	127
calendar year that includes a tax period;	128

(5) The pay increase factor to be applied to the taxpayer's	129
baseline income tax revenue;	130

(6) A requirement that the taxpayer annually shall report to	131
the director of development employment, tax withholding,	132
investment, and other information the director needs to perform	133
the director's duties under this section;	134

(7) A requirement that the director of development annually	135
review the information reported under division (D)(6) of this	136
section and verify compliance with the agreement; if the taxpayer	137
is in compliance, a requirement that the director issue a	138
certificate to the taxpayer stating that the information has been	139
verified and identifying the amount of the credit that may be	140
claimed for the taxable or calendar year;	141

(8) A provision providing that the taxpayer may not relocate	142
a substantial number of employment positions from elsewhere in	143
this state to the project location unless the director of	144
development determines that the legislative authority of the	145
county, township, or municipal corporation from which the	146
employment positions would be relocated has been notified by the	147
taxpayer of the relocation.	148

For purposes of this section, the movement of an employment	149
position from one political subdivision to another political	150
subdivision shall be considered a relocation of an employment	151
position unless the employment position in the first political	152
subdivision is replaced.	153

(E) If a taxpayer fails to meet or comply with any condition	154
or requirement set forth in a tax credit agreement, the tax credit	155
authority may amend the agreement to reduce the percentage or term	156
of the tax credit. The reduction of the percentage or term may	157
take effect in the current taxable or calendar year.	158

(F) Projects that consist solely of point-of-final-purchase	159
retail facilities are not eligible for a tax credit under this	160
section. If a project consists of both point-of-final-purchase	161
retail facilities and nonretail facilities, only the portion of	162
the project consisting of the nonretail facilities is eligible for	163
a tax credit and only the excess income tax revenue from the	164
nonretail facilities shall be considered when computing the amount	165
of the tax credit. If a warehouse facility is part of a	166
point-of-final-purchase retail facility and supplies only that	167
facility, the warehouse facility is not eligible for a tax credit.	168
Catalog distribution centers are not considered	169
point-of-final-purchase retail facilities for the purposes of this	170
division, and are eligible for tax credits under this section.	171

(G) Financial statements and other information submitted to	172
the department of development or the tax credit authority by an	173
applicant or recipient of a tax credit under this section, and any	174
information taken for any purpose from such statements or	175
information, are not public records subject to section 149.43 of	176
the Revised Code. However, the chairperson of the authority may	177
make use of the statements and other information for purposes of	178
issuing public reports or in connection with court proceedings	179
concerning tax credit agreements under this section. Upon the	180
request of the tax commissioner or, if the applicant or recipient	181
is an insurance company, upon the request of the superintendent of	182
insurance, the chairperson of the authority shall provide to the	183
commissioner or superintendent any statement or information	184
submitted by an applicant or recipient of a tax credit in	185
connection with the credit. The commissioner or superintendent	186
shall preserve the confidentiality of the statement or	187
information.	188

(H) A taxpayer claiming a credit under this section shall	189
submit to the tax commissioner or, if the taxpayer is an insurance	190
company, to the superintendent of insurance, a copy of the	191
director of development's certificate of verification under	192
division (D)(7) of this section with the taxpayer's tax report or	193
return for the taxable year or for the calendar year that includes	194
the tax period. Failure to submit a copy of the certificate with	195
the report or return does not invalidate a claim for a credit if	196
the taxpayer submits a copy of the certificate to the commissioner	197
or superintendent within sixty days after the commissioner or	198
superintendent requests it.	199

(I) The director of development, after consultation with the	200
tax commissioner and the superintendent of insurance and in	201
accordance with Chapter 119. of the Revised Code, shall adopt	202
rules necessary to implement this section. The rules may provide	203
for recipients of tax credits under this section to be charged	204
fees to cover administrative costs of the tax credit program. The	205
fees collected shall be credited to the tax incentive programs	206
operating fund created in section 122.174 of the Revised Code. At	207
the time the director gives public notice under division (A) of	208
section 119.03 of the Revised Code of the adoption of the rules,	209
the director shall submit copies of the proposed rules to the	210
chairpersons of the standing committees on economic development in	211
the senate and the house of representatives.	212

(J) For the purposes of this section, a taxpayer may include	213
a partnership, a corporation that has made an election under	214
subchapter S of chapter one of subtitle A of the Internal Revenue	215
Code, or any other business entity through which income flows as a	216
distributive share to its owners. A partnership, S-corporation, or	217
other such business entity may elect to pass the credit received	218
under this section through to the persons to whom the income or	219
profit of the partnership, S-corporation, or other entity is	220
distributed. The election shall be made on the annual report	221
required under division (D)(6) of this section. The election	222
applies to and is irrevocable for the credit for which the report	223
is submitted. If the election is made, the credit shall be	224
apportioned among those persons in the same proportions as those	225
in which the income or profit is distributed.	226

(K) If the director of development determines that a taxpayer	227
who has received a credit under this section is not complying with	228
the requirement under division (D)(3) of this section, the	229
director shall notify the tax credit authority of the	230
noncompliance. After receiving such a notice, and after giving the	231
taxpayer an opportunity to explain the noncompliance, the tax	232
credit authority may require the taxpayer to refund to this state	233
a portion of the credit in accordance with the following:	234

(1) If the taxpayer maintained operations at the project	235
location for a period less than or equal to the term of the	236
credit, an amount not exceeding one hundred per cent of the sum of	237
any credits allowed and received under this section;	238

(2) If the taxpayer maintained operations at the project	239
location for a period longer than the term of the credit, but less	240
than the greater of seven years or the term of the credit plus	241
three years, an amount not exceeding seventy-five per cent of the	242
sum of any credits allowed and received under this section.	243

In determining the portion of the tax credit to be refunded	244
to this state, the tax credit authority shall consider the effect	245
of market conditions on the taxpayer's project and whether the	246
taxpayer continues to maintain other operations in this state.	247
After making the determination, the authority shall certify the	248
amount to be refunded to the tax commissioner or superintendent of	249
insurance, as appropriate. If the amount is certified to the	250
commissioner, the commissioner shall make an assessment for that	251
amount against the taxpayer under Chapter 5725., 5733., 5747., or	252
5751. of the Revised Code. If the amount is certified to the	253
superintendent, the superintendent shall make an assessment for	254
that amount against the taxpayer under Chapter 5725. or 5729. of	255
the Revised Code. The time limitations on assessments under those	256
chapters do not apply to an assessment under this division, but	257
the commissioner or superintendent, as appropriate, shall make the	258
assessment within one year after the date the authority certifies	259
to the commissioner or superintendent the amount to be refunded.	260

(L) On or before the first day of August each year, the	261
director of development shall submit a report to the governor, the	262
president of the senate, and the speaker of the house of	263
representatives on the tax credit program under this section. The	264
report shall include information on the number of agreements that	265
were entered into under this section during the preceding calendar	266
year, a description of the project that is the subject of each	267
such agreement, and an update on the status of projects under	268
agreements entered into before the preceding calendar year.	269

(M) There is hereby created the tax credit authority, which	270
consists of the director of development and four other members	271
appointed as follows: the governor, the president of the senate,	272
and the speaker of the house of representatives each shall appoint	273
one member who shall be a specialist in economic development; the	274
governor also shall appoint a member who is a specialist in	275
taxation. Of the initial appointees, the members appointed by the	276
governor shall serve a term of two years; the members appointed by	277
the president of the senate and the speaker of the house of	278
representatives shall serve a term of four years. Thereafter,	279
terms of office shall be for four years. Initial appointments to	280
the authority shall be made within thirty days after January 13,	281
1993. Each member shall serve on the authority until the end of	282
the term for which the member was appointed. Vacancies shall be	283
filled in the same manner provided for original appointments. Any	284
member appointed to fill a vacancy occurring prior to the	285
expiration of the term for which the member's predecessor was	286
appointed shall hold office for the remainder of that term.	287
Members may be reappointed to the authority. Members of the	288
authority shall receive their necessary and actual expenses while	289
engaged in the business of the authority. The director of	290
development shall serve as chairperson of the authority, and the	291
members annually shall elect a vice-chairperson from among	292
themselves. Three members of the authority constitute a quorum to	293
transact and vote on the business of the authority. The majority	294
vote of the membership of the authority is necessary to approve	295
any such business, including the election of the vice-chairperson.	296

The director of development may appoint a professional	297
employee of the department of development to serve as the	298
director's substitute at a meeting of the authority. The director	299
shall make the appointment in writing. In the absence of the	300
director from a meeting of the authority, the appointed substitute	301
shall serve as chairperson. In the absence of both the director	302
and the director's substitute from a meeting, the vice-chairperson	303
shall serve as chairperson.	304

(N) For purposes of the credits granted by this section	305
against the taxes imposed under sections 5725.18 and 5729.03 of	306
the Revised Code, "taxable year" means the period covered by the	307
taxpayer's annual statement to the superintendent of insurance.	308

Sec. 122.175.  For purposes of this section, "Appalachian	309
region" has the same meaning as in section 107.21 of the Revised	310
Code.	311

A refundable credit is allowed for investment in property for	312
which a depreciation deduction is allowed under 26 U.S.C. 167 that	313
is used in a trade or business located in the Appalachian region.	314
The credit may be claimed against the tax imposed by section	315
5707.03 of the Revised Code and assessed pursuant to section	316
5725.13 of the Revised Code, or the tax imposed by section	317
5725.18, 5729.03, 5733.06, 5747.02, or 5751.02 of the Revised	318
Code.	319

The credit for a taxable year or tax period equals the	320
original cost of the property incurred by the taxpayer multiplied	321
by a percentage. The percentage is based on the taxpayer's Ohio	322
net profit for the taxable or calendar year in which the taxpayer	323
first uses the property in business in the Appalachian region or	324
the original cost of the property incurred by the taxpayer,	325
whichever is greater. If the greater of the taxpayer's net profit	326
or the property's original cost is less than one hundred thousand	327
dollars, the percentage is ten per cent. If the greater of the	328
taxpayer's net profit or the property's original cost is one	329
hundred thousand dollars or more, the percentage equals fifteen	330
per cent plus, for each increment of one thousand dollars in	331
excess of one hundred thousand dollars, one-tenth of one per cent.	332
The percentage may not exceed fifty-five per cent.	333

The credit shall be claimed in the order required under	334
section 5725.98, 5729.98, 5733.98, 5747.98, or 5751.98 of the	335
Revised Code and shall be claimed for the taxable year, or the	336
last tax period in the calendar year, in which the taxpayer first	337
used the property in business in the Appalachian region. If the	338
credit exceeds the taxpayer's tax liability for the taxable year	339
or tax period after subtracting all other credits, the taxpayer is	340
entitled to a refund of the excess. Nothing in this section limits	341
or disallows pass-through treatment of the credit. If pass-through	342
treatment is elected, the pass-through entity may not claim the	343
credit against any tax for which the entity is liable as an	344
entity.	345

The director of development shall adopt rules under Chapter	346
119. of the Revised Code to administer this section, including a	347
rule defining "Ohio net profit."	348

Sec. 5725.98. (A) To provide a uniform procedure for	349
calculating the amount of tax imposed by section 5725.18 of the	350
Revised Code that is due under this chapter, a taxpayer shall	351
claim any credits and offsets against tax liability to which it is	352
entitled in the following order:	353

(1) The credit for an insurance company or insurance company	354
group under section 5729.031 of the Revised Code.	355

(2) The credit for eligible employee training costs under	356
section 5725.31 of the Revised Code.	357

(3) The credit for purchasers of qualified low-income	358
community investments under section 5725.33 of the Revised Code;.	359

(4) The job retention credit under section 122.171 of the	360
Revised Code;.	361

(5) The offset of assessments by the Ohio life and health	362
insurance guaranty association permitted by section 3956.20 of the	363
Revised Code.	364

(6) The refundable credit for Ohio job creation under section	365
5725.32 of the Revised Code.	366

(7) The refundable credit under section 5725.19 of the	367
Revised Code for losses on loans made under the Ohio venture	368
capital program under sections 150.01 to 150.10 of the Revised	369
Code.	370

(8) The refundable credit for investing in property used in a	371
trade or business in the Appalachian region under section 122.175	372
of the Revised Code.	373

(B) For any credit except the refundable credits enumerated	374
in divisions (A)(6) and (7) of this section, the amount of the	375
credit for a taxable year shall not exceed the tax due after	376
allowing for any other credit that precedes it in the order	377
required under this section. Any excess amount of a particular	378
credit may be carried forward if authorized under the section	379
creating that credit. Nothing in this chapter shall be construed	380
to allow a taxpayer to claim, directly or indirectly, a credit	381
more than once for a taxable year.	382

Sec. 5729.98. (A) To provide a uniform procedure for	383
calculating the amount of tax due under this chapter, a taxpayer	384
shall claim any credits and offsets against tax liability to which	385
it is entitled in the following order:	386

(1) The credit for an insurance company or insurance company	387
group under section 5729.031 of the Revised Code.	388

(2) The credit for eligible employee training costs under	389
section 5729.07 of the Revised Code.	390

(3) The credit for purchases of qualified low-income	391
community investments under section 5729.16 of the Revised Code;.	392

(4) The job retention credit under section 122.171 of the	393
Revised Code.	394

(5) The offset of assessments by the Ohio life and health	395
insurance guaranty association against tax liability permitted by	396
section 3956.20 of the Revised Code.	397

(6) The refundable credit for Ohio job creation under section	398
5729.032 of the Revised Code.	399

(7) The refundable credit under section 5729.08 of the	400
Revised Code for losses on loans made under the Ohio venture	401
capital program under sections 150.01 to 150.10 of the Revised	402
Code.	403

(8) The refundable credit for investing in property used in a	404
trade or business in the Appalachian region under section 122.175	405
of the Revised Code.	406

(B) For any credit except the refundable credits enumerated	407
in divisions (A)(6) and (7) of this section, the amount of the	408
credit for a taxable year shall not exceed the tax due after	409
allowing for any other credit that precedes it in the order	410
required under this section. Any excess amount of a particular	411
credit may be carried forward if authorized under the section	412
creating that credit. Nothing in this chapter shall be construed	413
to allow a taxpayer to claim, directly or indirectly, a credit	414
more than once for a taxable year.	415

Sec. 5733.98.  (A) To provide a uniform procedure for	416
calculating the amount of tax imposed by section 5733.06 of the	417
Revised Code that is due under this chapter, a taxpayer shall	418
claim any credits to which it is entitled in the following order,	419
except as otherwise provided in section 5733.058 of the Revised	420
Code:	421

(1) For tax year 2005, the credit for taxes paid by a	422
qualifying pass-through entity allowed under section 5733.0611 of	423
the Revised Code;	424

(2) The credit allowed for financial institutions under	425
section 5733.45 of the Revised Code;	426

(3) The credit for qualifying affiliated groups under section	427
5733.068 of the Revised Code;	428

(4) The subsidiary corporation credit under section 5733.067	429
of the Revised Code;	430

(5) The savings and loan assessment credit under section	431
5733.063 of the Revised Code;	432

(6) The credit for recycling and litter prevention donations	433
under section 5733.064 of the Revised Code;	434

(7) The credit for employers that enter into agreements with	435
child day-care centers under section 5733.36 of the Revised Code;	436

(8) The credit for employers that reimburse employee child	437
care expenses under section 5733.38 of the Revised Code;	438

(9) The credit for maintaining railroad active grade crossing	439
warning devices under section 5733.43 of the Revised Code;	440

(10) The credit for purchases of lights and reflectors under	441
section 5733.44 of the Revised Code;	442

(11) The job retention credit under division (B) of section	443
5733.0610 of the Revised Code;	444

(12) The credit for tax years 2008 and 2009 for selling	445
alternative fuel under section 5733.48 of the Revised Code;	446

(13) The second credit for purchases of new manufacturing	447
machinery and equipment under section 5733.33 of the Revised Code;	448

(14) The job training credit under section 5733.42 of the	449
Revised Code;	450

(15) The credit for qualified research expenses under section	451
5733.351 of the Revised Code;	452

(16) The enterprise zone credit under section 5709.66 of the	453
Revised Code;	454

(17) The credit for the eligible costs associated with a	455
voluntary action under section 5733.34 of the Revised Code;	456

(18) The credit for employers that establish on-site child	457
day-care centers under section 5733.37 of the Revised Code;	458

(19) The ethanol plant investment credit under section	459
5733.46 of the Revised Code;	460

(20) The credit for purchases of qualifying grape production	461
property under section 5733.32 of the Revised Code;	462

(21) The export sales credit under section 5733.069 of the	463
Revised Code;	464

(22) The credit for research and development and technology	465
transfer investors under section 5733.35 of the Revised Code;	466

(23) The enterprise zone credits under section 5709.65 of the	467
Revised Code;	468

(24) The credit for using Ohio coal under section 5733.39 of	469
the Revised Code;	470

(25) The credit for purchases of qualified low-income	471
community investments under section 5733.58 of the Revised Code;	472

(26) The credit for small telephone companies under section	473
5733.57 of the Revised Code;	474

(27) The credit for eligible nonrecurring 9-1-1 charges under	475
section 5733.55 of the Revised Code;	476

(28) For tax year 2005, the credit for providing programs to	477
aid the communicatively impaired under division (A) of section	478
5733.56 of the Revised Code;	479

(29) The research and development credit under section	480
5733.352 of the Revised Code;	481

(30) For tax years 2006 and subsequent tax years, the credit	482
for taxes paid by a qualifying pass-through entity allowed under	483
section 5733.0611 of the Revised Code;	484

(31) The refundable credit for rehabilitating a historic	485
building under section 5733.47 of the Revised Code;	486

(32) The refundable jobs creation credit under division (A)	487
of section 5733.0610 of the Revised Code;	488

(33) The refundable credit for tax withheld under division	489
(B)(2) of section 5747.062 of the Revised Code;	490

(34) The refundable credit under section 5733.49 of the	491
Revised Code for losses on loans made to the Ohio venture capital	492
program under sections 150.01 to 150.10 of the Revised Code;	493

(35) For tax years 2006, 2007, and 2008, the refundable	494
credit allowable under division (B) of section 5733.56 of the	495
Revised Code;	496

(36) The refundable motion picture production credit under	497
section 5733.59 of the Revised Code;	498

(37) The refundable credit for investing in property used in	499
a trade or business in the Appalachian region under section	500
122.175 of the Revised Code.	501

(B) For any credit except the refundable credits enumerated	502
in divisions (A)(31) to (36) of this section, the amount of the	503
credit for a tax year shall not exceed the tax due after allowing	504
for any other credit that precedes it in the order required under	505
this section. Any excess amount of a particular credit may be	506
carried forward if authorized under the section creating that	507
credit.	508

Sec. 5747.98.  (A) To provide a uniform procedure for	509
calculating the amount of tax due under section 5747.02 of the	510
Revised Code, a taxpayer shall claim any credits to which the	511
taxpayer is entitled in the following order:	512

(1) The retirement income credit under division (B) of	513
section 5747.055 of the Revised Code;	514

(2) The senior citizen credit under division (C) of section	515
5747.05 of the Revised Code;	516

(3) The lump sum distribution credit under division (D) of	517
section 5747.05 of the Revised Code;	518

(4) The dependent care credit under section 5747.054 of the	519
Revised Code;	520

(5) The lump sum retirement income credit under division (C)	521
of section 5747.055 of the Revised Code;	522

(6) The lump sum retirement income credit under division (D)	523
of section 5747.055 of the Revised Code;	524

(7) The lump sum retirement income credit under division (E)	525
of section 5747.055 of the Revised Code;	526

(8) The low-income credit under section 5747.056 of the	527
Revised Code;	528

(9) The credit for displaced workers who pay for job training	529
under section 5747.27 of the Revised Code;	530

(10) The campaign contribution credit under section 5747.29	531
of the Revised Code;	532

(11) The twenty-dollar personal exemption credit under	533
section 5747.022 of the Revised Code;	534

(12) The joint filing credit under division (G) of section	535
5747.05 of the Revised Code;	536

(13) The nonresident credit under division (A) of section	537
5747.05 of the Revised Code;	538

(14) The credit for a resident's out-of-state income under	539
division (B) of section 5747.05 of the Revised Code;	540

(15) The credit for employers that enter into agreements with	541
child day-care centers under section 5747.34 of the Revised Code;	542

(16) The credit for employers that reimburse employee child	543
care expenses under section 5747.36 of the Revised Code;	544

(17) The credit for adoption of a minor child under section	545
5747.37 of the Revised Code;	546

(18) The credit for purchases of lights and reflectors under	547
section 5747.38 of the Revised Code;	548

(19) The job retention credit under division (B) of section	549
5747.058 of the Revised Code;	550

(20) The credit for selling alternative fuel under section	551
5747.77 of the Revised Code;	552

(21) The second credit for purchases of new manufacturing	553
machinery and equipment and the credit for using Ohio coal under	554
section 5747.31 of the Revised Code;	555

(22) The job training credit under section 5747.39 of the	556
Revised Code;	557

(23) The enterprise zone credit under section 5709.66 of the	558
Revised Code;	559

(24) The credit for the eligible costs associated with a	560
voluntary action under section 5747.32 of the Revised Code;	561

(25) The credit for employers that establish on-site child	562
day-care centers under section 5747.35 of the Revised Code;	563

(26) The ethanol plant investment credit under section	564
5747.75 of the Revised Code;	565

(27) The credit for purchases of qualifying grape production	566
property under section 5747.28 of the Revised Code;	567

(28) The export sales credit under section 5747.057 of the	568
Revised Code;	569

(29) The credit for research and development and technology	570
transfer investors under section 5747.33 of the Revised Code;	571

(30) The enterprise zone credits under section 5709.65 of the	572
Revised Code;	573

(31) The research and development credit under section	574
5747.331 of the Revised Code;	575

(32) The credit for rehabilitating a historic building under	576
section 5747.76 of the Revised Code;	577

(33) The refundable credit for rehabilitating a historic	578
building under section 5747.76 of the Revised Code;	579

(34) The refundable jobs creation credit under division (A)	580
of section 5747.058 of the Revised Code;	581

(35) The refundable credit for taxes paid by a qualifying	582
entity granted under section 5747.059 of the Revised Code;	583

(36) The refundable credits for taxes paid by a qualifying	584
pass-through entity granted under division (J) of section 5747.08	585
of the Revised Code;	586

(37) The refundable credit for tax withheld under division	587
(B)(1) of section 5747.062 of the Revised Code;	588

(38) The refundable credit for tax withheld under section	589
5747.063 of the Revised Code;	590

(39) The refundable credit under section 5747.80 of the	591
Revised Code for losses on loans made to the Ohio venture capital	592
program under sections 150.01 to 150.10 of the Revised Code;	593

(40) The refundable motion picture production credit under	594
section 5747.66 of the Revised Code;	595

(41) The refundable credit for investing in property used in	596
a trade or business in the Appalachian region under section	597
122.175 of the Revised Code.	598

(B) For any credit, except the refundable credits enumerated	599
in this section and the credit granted under division (I) of	600
section 5747.08 of the Revised Code, the amount of the credit for	601
a taxable year shall not exceed the tax due after allowing for any	602
other credit that precedes it in the order required under this	603
section. Any excess amount of a particular credit may be carried	604
forward if authorized under the section creating that credit.	605
Nothing in this chapter shall be construed to allow a taxpayer to	606
claim, directly or indirectly, a credit more than once for a	607
taxable year.	608

Sec. 5751.98.  (A) To provide a uniform procedure for	609
calculating the amount of tax due under this chapter, a taxpayer	610
shall claim any credits to which it is entitled in the following	611
order:	612

(1) The nonrefundable jobs retention credit under division	613
(B) of section 5751.50 of the Revised Code;	614

(2) The nonrefundable credit for qualified research expenses	615
under division (B) of section 5751.51 of the Revised Code;	616

(3) The nonrefundable credit for a borrower's qualified	617
research and development loan payments under division (B) of	618
section 5751.52 of the Revised Code;	619

(4) The nonrefundable credit for calendar years 2010 to 2029	620
for unused net operating losses under division (B) of section	621
5751.53 of the Revised Code;	622

(5) The refundable credit for calendar year 2030 for unused	623
net operating losses under division (C) of section 5751.53 of the	624
Revised Code;	625

(6) The refundable jobs creation credit under division (A) of	626
section 5751.50 of the Revised Code;	627

(7) The refundable credit for investing in property used in a	628
trade or business in the Appalachian region under section 122.175	629
of the Revised Code.	630

(B) For any credit except the creditrefundable credits	631
enumerated in division (A)(4) of this section, the amount of the	632
credit for a tax period shall not exceed the tax due after	633
allowing for any other credit that precedes it in the order	634
required under this section. Any excess amount of a particular	635
credit may be carried forward if authorized under the section	636
creating the credit.	637

Section 2.  That existing sections 122.17, 5725.98, 5729.98,	638
5733.98, 5747.98, and 5751.98 of the Revised Code are hereby	639
repealed.	640