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To amend sections 5747.01, 5747.08, and 5747.98 and | 1 |
to enact sections 3727.18, 3727.181, 3727.182, | 2 |
3727.183, 3727.184, 3727.185, 3727.186, 3727.187, | 3 |
4723.11, 4723.111, and 5747.72 of the Revised Code | 4 |
regarding limits on mandatory overtime for nurses, | 5 |
tuition reimbursement for nursing education, tax | 6 |
credits for nursing professors, and tax deductions | 7 |
for nurse aides. | 8 |
Section 1. That sections 5747.01, 5747.08, and 5747.98 be | 9 |
amended and sections 3727.18, 3727.181, 3727.182, 3727.183, | 10 |
3727.184, 3727.185, 3727.186, 3727.187, 4723.11, 4723.111, and | 11 |
5747.72 of the Revised Code be enacted to read as follows: | 12 |
Sec. 3727.18. As used in sections 3727.181 to 3727.183 of the | 13 |
Revised Code: | 14 |
(A) "Overtime" means an amount of time that is worked in | 15 |
excess of an agreed upon, predetermined, regularly scheduled | 16 |
full-time or part-time work week. | 17 |
(B) "Registered nurse" and "licensed practical nurse" have | 18 |
the same meanings as in section 4723.01 of the Revised Code. | 19 |
Sec. 3727.181. No hospital shall directly or indirectly | 20 |
require a registered nurse or licensed practical nurse to work | 21 |
overtime as a condition of continued employment with the hospital. | 22 |
Sec. 3727.182. Actions by a hospital that constitute | 23 |
violations of section 3727.181 of the Revised Code include both of | 24 |
the following: | 25 |
(A) Terminating or proposing to terminate the employment of a | 26 |
registered nurse or licensed practical nurse with the hospital | 27 |
solely because the nurse chooses not to work overtime; | 28 |
(B) Taking or proposing to take disciplinary or retaliatory | 29 |
action against a registered nurse or licensed practical nurse | 30 |
solely because the nurse chooses not to work overtime. | 31 |
Sec. 3727.183. (A) Section 3727.181 of the Revised Code does | 32 |
not prohibit any of the following: | 33 |
(1) A registered nurse or licensed practical nurse from | 34 |
voluntarily working overtime; | 35 |
(2) A hospital from offering overtime to a registered nurse | 36 |
or licensed practical nurse or permitting a registered nurse or | 37 |
licensed practical nurse to work overtime when the nurse chooses; | 38 |
(3) A hospital from requesting or scheduling a registered | 39 |
nurse or licensed practical nurse to work overtime if the hospital | 40 |
is experiencing a staffing shortage as a direct result of an | 41 |
occasion or instance that has been publicly declared as an | 42 |
emergency or disaster by the governor of this state or the | 43 |
president of the United States. | 44 |
(B) Section 3727.181 of the Revised Code does not affect any | 45 |
conflicting provisions of labor agreements entered into by | 46 |
employee organizations and employers with regard to the overtime a | 47 |
registered nurse or licensed practical nurse is required to work | 48 |
in a hospital. | 49 |
Sec. 3727.184. (A) If the department of health determines | 50 |
that a violation of section 3727.181 of the Revised Code may have | 51 |
occurred, the department shall notify the hospital and afford the | 52 |
hospital an opportunity for an adjudication conducted in | 53 |
accordance with Chapter 119. of the Revised Code. If the hospital | 54 |
fails to request an adjudication or the department determines | 55 |
after conducting an adjudication that the violation has occurred, | 56 |
the department shall impose a civil money penalty on the hospital | 57 |
of not more than ten thousand dollars. If more than one violation | 58 |
is involved, the department shall impose a separate civil money | 59 |
penalty for each violation. | 60 |
(B) On request of the department, the attorney general shall | 61 |
bring and prosecute to judgment a civil action to collect any | 62 |
civil money penalty imposed under division (A) of this section | 63 |
that remains unpaid. | 64 |
(C) All amounts collected under this section shall be | 65 |
deposited into the state treasury to the credit of the general | 66 |
operations fund created under section 3701.83 of the Revised Code | 67 |
and shall be used solely for purposes of enforcing section | 68 |
3727.181 of the Revised Code. | 69 |
Sec. 3727.185. Through the attorney general or an appropriate | 70 |
prosecuting attorney, the director of health may apply to the | 71 |
court of common pleas of the county in which a hospital is located | 72 |
for a temporary or permanent injunction restraining the hospital | 73 |
from violating section 3727.181 of the Revised Code. On a showing | 74 |
that the violation has occurred, the court shall grant an order | 75 |
enjoining the violation. | 76 |
Sec. 3727.186. The remedies provided for in sections | 77 |
3727.184 and 3727.185 of the Revised Code are in addition to all | 78 |
penalties and other remedies available under this chapter or any | 79 |
other provision of the Revised Code. | 80 |
Sec. 3727.187. The department of health shall adopt rules as | 81 |
the department considers necessary to implement sections 3727.18 | 82 |
and 3727.181 to 3727.186 of the Revised Code. The rules shall be | 83 |
adopted in accordance with Chapter 119. of the Revised Code. | 84 |
Sec. 4723.11. As used in this section and section 4723.111 of | 85 |
the Revised Code: | 86 |
(A) "Qualified nurse" means an individual who, after July 1, | 87 |
2009, completed a board of nursing approved prelicensure nursing | 88 |
education program from a private or public institution in this | 89 |
state and holds a valid license to practice nursing as a | 90 |
registered nurse in this state. | 91 |
(B) "Prelicensure nursing education program" means the | 92 |
post-secondary education leading to the degree or diploma required | 93 |
by the board of nursing to be eligible to take the examination for | 94 |
licensure as a registered nurse. | 95 |
(C) "Hospital" means a hospital as defined in section 3727.01 | 96 |
of the Revised Code, or a similar institution operated by the | 97 |
department of mental health. | 98 |
(D) "Nursing education instructional costs" for a given | 99 |
university means the annual cost of instructional and general fees | 100 |
for enrollment in a prelicensure nursing education program. | 101 |
(E) "Statewide average nursing education instructional costs" | 102 |
means the calculated statewide average of the nursing education | 103 |
instructional costs for all the state universities listed in | 104 |
section 3345.011 of the Revised Code that offer prelicensure | 105 |
nursing education programs, plus an estimated amount for the | 106 |
annual purchase of necessary textbooks. | 107 |
Sec. 4723.111. (A)(1) There is hereby established the nursing | 108 |
education reimbursement program, which shall be administered by | 109 |
the board of nursing. Under the program, any qualified nurse who | 110 |
completes two years of full-time employment in a hospital in this | 111 |
state shall be reimbursed for the lesser of the following: | 112 |
(a) One year of statewide average nursing education | 113 |
instructional costs, as calculated for the year in which the nurse | 114 |
completed the prelicensure nursing education program; | 115 |
(b) The average annual actual costs of the prelicensure | 116 |
nursing education program instructional costs for the nurse, | 117 |
documented in accordance with rules adopted pursuant to division | 118 |
(B)(2) of this section, plus an estimated amount for the annual | 119 |
purchase of necessary textbooks. | 120 |
(2) Except as provided in division (A)(3) of this section, | 121 |
for each additional year of full-time employment in a hospital in | 122 |
this state, the nurse shall be reimbursed for one additional year | 123 |
of instructional costs, the amount of reimbursement to be | 124 |
determined in the same manner as under division (A)(1) of this | 125 |
section. | 126 |
(3) The maximum number of years of instructional costs for | 127 |
which a nurse may be reimbursed under the program is the lesser of | 128 |
the following: | 129 |
(a) The number of years the nurse was enrolled as a full-time | 130 |
student in a prelicensure nursing education program; | 131 |
(b) Five years. | 132 |
(B) The board of nursing shall adopt rules under Chapter | 133 |
119. of the Revised Code for the reimbursement of qualified nurses | 134 |
under the program. The rules shall provide for all of the | 135 |
following: | 136 |
(1) The annual calculation of the statewide average nursing | 137 |
education instructional costs for that year; | 138 |
(2) Requirements for qualified nurses to document their | 139 |
completion of a prelicensure nursing education program at a | 140 |
private or public institution in this state, the number of years | 141 |
in which they were enrolled in such a program, and the average | 142 |
cost of instructional and general fees and textbooks for the | 143 |
years in which they were enrolled; | 144 |
(3) Requirements for qualified nurses to document their | 145 |
full-time employment by hospitals in this state; | 146 |
(4) Application procedures and deadlines for filing for | 147 |
reimbursement under the program. | 148 |
Sec. 5747.01. Except as otherwise expressly provided or | 149 |
clearly appearing from the context, any term used in this chapter | 150 |
that is not otherwise defined in this section has the same meaning | 151 |
as when used in a comparable context in the laws of the United | 152 |
States relating to federal income taxes or if not used in a | 153 |
comparable context in those laws, has the same meaning as in | 154 |
section 5733.40 of the Revised Code. Any reference in this chapter | 155 |
to the Internal Revenue Code includes other laws of the United | 156 |
States relating to federal income taxes. | 157 |
As used in this chapter: | 158 |
(A) "Adjusted gross income" or "Ohio adjusted gross income" | 159 |
means federal adjusted gross income, as defined and used in the | 160 |
Internal Revenue Code, adjusted as provided in this section: | 161 |
(1) Add interest or dividends on obligations or securities of | 162 |
any state or of any political subdivision or authority of any | 163 |
state, other than this state and its subdivisions and authorities. | 164 |
(2) Add interest or dividends on obligations of any | 165 |
authority, commission, instrumentality, territory, or possession | 166 |
of the United States to the extent that the interest or dividends | 167 |
are exempt from federal income taxes but not from state income | 168 |
taxes. | 169 |
(3) Deduct interest or dividends on obligations of the United | 170 |
States and its territories and possessions or of any authority, | 171 |
commission, or instrumentality of the United States to the extent | 172 |
that the interest or dividends are included in federal adjusted | 173 |
gross income but exempt from state income taxes under the laws of | 174 |
the United States. | 175 |
(4) Deduct disability and survivor's benefits to the extent | 176 |
included in federal adjusted gross income. | 177 |
(5) Deduct benefits under Title II of the Social Security Act | 178 |
and tier 1 railroad retirement benefits to the extent included in | 179 |
federal adjusted gross income under section 86 of the Internal | 180 |
Revenue Code. | 181 |
(6) In the case of a taxpayer who is a beneficiary of a trust | 182 |
that makes an accumulation distribution as defined in section 665 | 183 |
of the Internal Revenue Code, add, for the beneficiary's taxable | 184 |
years beginning before 2002, the portion, if any, of such | 185 |
distribution that does not exceed the undistributed net income of | 186 |
the trust for the three taxable years preceding the taxable year | 187 |
in which the distribution is made to the extent that the portion | 188 |
was not included in the trust's taxable income for any of the | 189 |
trust's taxable years beginning in 2002 or thereafter. | 190 |
"Undistributed net income of a trust" means the taxable income of | 191 |
the trust increased by (a)(i) the additions to adjusted gross | 192 |
income required under division (A) of this section and (ii) the | 193 |
personal exemptions allowed to the trust pursuant to section | 194 |
642(b) of the Internal Revenue Code, and decreased by (b)(i) the | 195 |
deductions to adjusted gross income required under division (A) of | 196 |
this section, (ii) the amount of federal income taxes attributable | 197 |
to such income, and (iii) the amount of taxable income that has | 198 |
been included in the adjusted gross income of a beneficiary by | 199 |
reason of a prior accumulation distribution. Any undistributed net | 200 |
income included in the adjusted gross income of a beneficiary | 201 |
shall reduce the undistributed net income of the trust commencing | 202 |
with the earliest years of the accumulation period. | 203 |
(7) Deduct the amount of wages and salaries, if any, not | 204 |
otherwise allowable as a deduction but that would have been | 205 |
allowable as a deduction in computing federal adjusted gross | 206 |
income for the taxable year, had the targeted jobs credit allowed | 207 |
and determined under sections 38, 51, and 52 of the Internal | 208 |
Revenue Code not been in effect. | 209 |
(8) Deduct any interest or interest equivalent on public | 210 |
obligations and purchase obligations to the extent that the | 211 |
interest or interest equivalent is included in federal adjusted | 212 |
gross income. | 213 |
(9) Add any loss or deduct any gain resulting from the sale, | 214 |
exchange, or other disposition of public obligations to the extent | 215 |
that the loss has been deducted or the gain has been included in | 216 |
computing federal adjusted gross income. | 217 |
(10) Deduct or add amounts, as provided under section | 218 |
5747.70 of the Revised Code, related to contributions to variable | 219 |
college savings program accounts made or tuition units purchased | 220 |
pursuant to Chapter 3334. of the Revised Code. | 221 |
(11)(a) Deduct, to the extent not otherwise allowable as a | 222 |
deduction or exclusion in computing federal or Ohio adjusted gross | 223 |
income for the taxable year, the amount the taxpayer paid during | 224 |
the taxable year for medical care insurance and qualified | 225 |
long-term care insurance for the taxpayer, the taxpayer's spouse, | 226 |
and dependents. No deduction for medical care insurance under | 227 |
division (A)(11) of this section shall be allowed either to any | 228 |
taxpayer who is eligible to participate in any subsidized health | 229 |
plan maintained by any employer of the taxpayer or of the | 230 |
taxpayer's spouse, or to any taxpayer who is entitled to, or on | 231 |
application would be entitled to, benefits under part A of Title | 232 |
XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C. | 233 |
301, as amended. For the purposes of division (A)(11)(a) of this | 234 |
section, "subsidized health plan" means a health plan for which | 235 |
the employer pays any portion of the plan's cost. The deduction | 236 |
allowed under division (A)(11)(a) of this section shall be the net | 237 |
of any related premium refunds, related premium reimbursements, or | 238 |
related insurance premium dividends received during the taxable | 239 |
year. | 240 |
(b) Deduct, to the extent not otherwise deducted or excluded | 241 |
in computing federal or Ohio adjusted gross income during the | 242 |
taxable year, the amount the taxpayer paid during the taxable | 243 |
year, not compensated for by any insurance or otherwise, for | 244 |
medical care of the taxpayer, the taxpayer's spouse, and | 245 |
dependents, to the extent the expenses exceed seven and one-half | 246 |
per cent of the taxpayer's federal adjusted gross income. | 247 |
(c) For purposes of division (A)(11) of this section, | 248 |
"medical care" has the meaning given in section 213 of the | 249 |
Internal Revenue Code, subject to the special rules, limitations, | 250 |
and exclusions set forth therein, and "qualified long-term care" | 251 |
has the same meaning given in section 7702B(c) of the Internal | 252 |
Revenue Code. | 253 |
(12)(a) Deduct any amount included in federal adjusted gross | 254 |
income solely because the amount represents a reimbursement or | 255 |
refund of expenses that in any year the taxpayer had deducted as | 256 |
an itemized deduction pursuant to section 63 of the Internal | 257 |
Revenue Code and applicable United States department of the | 258 |
treasury regulations. The deduction otherwise allowed under | 259 |
division (A)(12)(a) of this section shall be reduced to the extent | 260 |
the reimbursement is attributable to an amount the taxpayer | 261 |
deducted under this section in any taxable year. | 262 |
(b) Add any amount not otherwise included in Ohio adjusted | 263 |
gross income for any taxable year to the extent that the amount is | 264 |
attributable to the recovery during the taxable year of any amount | 265 |
deducted or excluded in computing federal or Ohio adjusted gross | 266 |
income in any taxable year. | 267 |
(13) Deduct any portion of the deduction described in section | 268 |
1341(a)(2) of the Internal Revenue Code, for repaying previously | 269 |
reported income received under a claim of right, that meets both | 270 |
of the following requirements: | 271 |
(a) It is allowable for repayment of an item that was | 272 |
included in the taxpayer's adjusted gross income for a prior | 273 |
taxable year and did not qualify for a credit under division (A) | 274 |
or (B) of section 5747.05 of the Revised Code for that year; | 275 |
(b) It does not otherwise reduce the taxpayer's adjusted | 276 |
gross income for the current or any other taxable year. | 277 |
(14) Deduct an amount equal to the deposits made to, and net | 278 |
investment earnings of, a medical savings account during the | 279 |
taxable year, in accordance with section 3924.66 of the Revised | 280 |
Code. The deduction allowed by division (A)(14) of this section | 281 |
does not apply to medical savings account deposits and earnings | 282 |
otherwise deducted or excluded for the current or any other | 283 |
taxable year from the taxpayer's federal adjusted gross income. | 284 |
(15)(a) Add an amount equal to the funds withdrawn from a | 285 |
medical savings account during the taxable year, and the net | 286 |
investment earnings on those funds, when the funds withdrawn were | 287 |
used for any purpose other than to reimburse an account holder | 288 |
for, or to pay, eligible medical expenses, in accordance with | 289 |
section 3924.66 of the Revised Code; | 290 |
(b) Add the amounts distributed from a medical savings | 291 |
account under division (A)(2) of section 3924.68 of the Revised | 292 |
Code during the taxable year. | 293 |
(16) Add any amount claimed as a credit under section | 294 |
5747.059 of the Revised Code to the extent that such amount | 295 |
satisfies either of the following: | 296 |
(a) The amount was deducted or excluded from the computation | 297 |
of the taxpayer's federal adjusted gross income as required to be | 298 |
reported for the taxpayer's taxable year under the Internal | 299 |
Revenue Code; | 300 |
(b) The amount resulted in a reduction of the taxpayer's | 301 |
federal adjusted gross income as required to be reported for any | 302 |
of the taxpayer's taxable years under the Internal Revenue Code. | 303 |
(17) Deduct the amount contributed by the taxpayer to an | 304 |
individual development account program established by a county | 305 |
department of job and family services pursuant to sections 329.11 | 306 |
to 329.14 of the Revised Code for the purpose of matching funds | 307 |
deposited by program participants. On request of the tax | 308 |
commissioner, the taxpayer shall provide any information that, in | 309 |
the tax commissioner's opinion, is necessary to establish the | 310 |
amount deducted under division (A)(17) of this section. | 311 |
(18) Beginning in taxable year 2001 but not for any taxable | 312 |
year beginning after December 31, 2005, if the taxpayer is married | 313 |
and files a joint return and the combined federal adjusted gross | 314 |
income of the taxpayer and the taxpayer's spouse for the taxable | 315 |
year does not exceed one hundred thousand dollars, or if the | 316 |
taxpayer is single and has a federal adjusted gross income for the | 317 |
taxable year not exceeding fifty thousand dollars, deduct amounts | 318 |
paid during the taxable year for qualified tuition and fees paid | 319 |
to an eligible institution for the taxpayer, the taxpayer's | 320 |
spouse, or any dependent of the taxpayer, who is a resident of | 321 |
this state and is enrolled in or attending a program that | 322 |
culminates in a degree or diploma at an eligible institution. The | 323 |
deduction may be claimed only to the extent that qualified tuition | 324 |
and fees are not otherwise deducted or excluded for any taxable | 325 |
year from federal or Ohio adjusted gross income. The deduction may | 326 |
not be claimed for educational expenses for which the taxpayer | 327 |
claims a credit under section 5747.27 of the Revised Code. | 328 |
(19) Add any reimbursement received during the taxable year | 329 |
of any amount the taxpayer deducted under division (A)(18) of this | 330 |
section in any previous taxable year to the extent the amount is | 331 |
not otherwise included in Ohio adjusted gross income. | 332 |
(20)(a)(i) Add five-sixths of the amount of depreciation | 333 |
expense allowed by subsection (k) of section 168 of the Internal | 334 |
Revenue Code, including the taxpayer's proportionate or | 335 |
distributive share of the amount of depreciation expense allowed | 336 |
by that subsection to a pass-through entity in which the taxpayer | 337 |
has a direct or indirect ownership interest. | 338 |
(ii) Add five-sixths of the amount of qualifying section 179 | 339 |
depreciation expense, including a person's proportionate or | 340 |
distributive share of the amount of qualifying section 179 | 341 |
depreciation expense allowed to any pass-through entity in which | 342 |
the person has a direct or indirect ownership. For the purposes of | 343 |
this division, "qualifying section 179 depreciation expense" means | 344 |
the difference between (I) the amount of depreciation expense | 345 |
directly or indirectly allowed to the taxpayer under section 179 | 346 |
of the Internal Revenue Code, and (II) the amount of depreciation | 347 |
expense directly or indirectly allowed to the taxpayer under | 348 |
section 179 of the Internal Revenue Code as that section existed | 349 |
on December 31, 2002. | 350 |
The tax commissioner, under procedures established by the | 351 |
commissioner, may waive the add-backs related to a pass-through | 352 |
entity if the taxpayer owns, directly or indirectly, less than | 353 |
five per cent of the pass-through entity. | 354 |
(b) Nothing in division (A)(20) of this section shall be | 355 |
construed to adjust or modify the adjusted basis of any asset. | 356 |
(c) To the extent the add-back required under division | 357 |
(A)(20)(a) of this section is attributable to property generating | 358 |
nonbusiness income or loss allocated under section 5747.20 of the | 359 |
Revised Code, the add-back shall be sitused to the same location | 360 |
as the nonbusiness income or loss generated by the property for | 361 |
the purpose of determining the credit under division (A) of | 362 |
section 5747.05 of the Revised Code. Otherwise, the add-back shall | 363 |
be apportioned, subject to one or more of the four alternative | 364 |
methods of apportionment enumerated in section 5747.21 of the | 365 |
Revised Code. | 366 |
(d) For the purposes of division (A) of this section, net | 367 |
operating loss carryback and carryforward shall not include | 368 |
five-sixths of the allowance of any net operating loss deduction | 369 |
carryback or carryforward to the taxable year to the extent such | 370 |
loss resulted from depreciation allowed by section 168(k) of the | 371 |
Internal Revenue Code and by the qualifying section 179 | 372 |
depreciation expense amount. | 373 |
(21)(a) If the taxpayer was required to add an amount under | 374 |
division (A)(20)(a) of this section for a taxable year, deduct | 375 |
one-fifth of the amount so added for each of the five succeeding | 376 |
taxable years. | 377 |
(b) If the amount deducted under division (A)(21)(a) of this | 378 |
section is attributable to an add-back allocated under division | 379 |
(A)(20)(c) of this section, the amount deducted shall be sitused | 380 |
to the same location. Otherwise, the add-back shall be apportioned | 381 |
using the apportionment factors for the taxable year in which the | 382 |
deduction is taken, subject to one or more of the four alternative | 383 |
methods of apportionment enumerated in section 5747.21 of the | 384 |
Revised Code. | 385 |
(c) No deduction is available under division (A)(21)(a) of | 386 |
this section with regard to any depreciation allowed by section | 387 |
168(k) of the Internal Revenue Code and by the qualifying section | 388 |
179 depreciation expense amount to the extent that such | 389 |
depreciation resulted in or increased a federal net operating loss | 390 |
carryback or carryforward to a taxable year to which division | 391 |
(A)(20)(d) of this section does not apply. | 392 |
(22) Deduct, to the extent not otherwise deducted or excluded | 393 |
in computing federal or Ohio adjusted gross income for the taxable | 394 |
year, the amount the taxpayer received during the taxable year as | 395 |
reimbursement for life insurance premiums under section 5919.31 of | 396 |
the Revised Code. | 397 |
(23) Deduct, to the extent not otherwise deducted or excluded | 398 |
in computing federal or Ohio adjusted gross income for the taxable | 399 |
year, the amount the taxpayer received during the taxable year as | 400 |
a death benefit paid by the adjutant general under section 5919.33 | 401 |
of the Revised Code. | 402 |
(24) Deduct, to the extent included in federal adjusted gross | 403 |
income and not otherwise allowable as a deduction or exclusion in | 404 |
computing federal or Ohio adjusted gross income for the taxable | 405 |
year, military pay and allowances received by the taxpayer during | 406 |
the taxable year for active duty service in the United States | 407 |
army, air force, navy, marine corps, or coast guard or reserve | 408 |
components thereof or the national guard. The deduction may not be | 409 |
claimed for military pay and allowances received by the taxpayer | 410 |
while the taxpayer is stationed in this state. | 411 |
(25) Deduct, to the extent not otherwise allowable as a | 412 |
deduction or exclusion in computing federal or Ohio adjusted gross | 413 |
income for the taxable year and not otherwise compensated for by | 414 |
any other source, the amount of qualified organ donation expenses | 415 |
incurred by the taxpayer during the taxable year, not to exceed | 416 |
ten thousand dollars. A taxpayer may deduct qualified organ | 417 |
donation expenses only once for all taxable years beginning with | 418 |
taxable years beginning in 2007. | 419 |
For the purposes of division (A)(25) of this section: | 420 |
(a) "Human organ" means all or any portion of a human liver, | 421 |
pancreas, kidney, intestine, or lung, and any portion of human | 422 |
bone marrow. | 423 |
(b) "Qualified organ donation expenses" means travel | 424 |
expenses, lodging expenses, and wages and salary forgone by a | 425 |
taxpayer in connection with the taxpayer's donation, while living, | 426 |
of one or more of the taxpayer's human organs to another human | 427 |
being. | 428 |
(26) Deduct, to the extent not otherwise deducted or excluded | 429 |
in computing federal or Ohio adjusted gross income for the taxable | 430 |
year, amounts received by the taxpayer as retired military | 431 |
personnel pay for service in the United States army, navy, air | 432 |
force, coast guard, or marine corps or reserve components thereof, | 433 |
or the national guard, or received by the surviving spouse or | 434 |
former spouse of such a taxpayer under the survivor benefit plan | 435 |
on account of such a taxpayer's death. If the taxpayer receives | 436 |
income on account of retirement paid under the federal civil | 437 |
service retirement system or federal employees retirement system, | 438 |
or under any successor retirement program enacted by the congress | 439 |
of the United States that is established and maintained for | 440 |
retired employees of the United States government, and such | 441 |
retirement income is based, in whole or in part, on credit for | 442 |
the taxpayer's military service, the deduction allowed under this | 443 |
division shall include only that portion of such retirement | 444 |
income that is attributable to the taxpayer's military service, | 445 |
to the extent that portion of such retirement income is otherwise | 446 |
included in federal adjusted gross income and is not otherwise | 447 |
deducted under this section. Any amount deducted under division | 448 |
(A)(26) of this section is not included in a taxpayer's | 449 |
adjusted gross income for the purposes of section 5747.055 of | 450 |
the Revised Code. No amount may be deducted under division | 451 |
(A)(26) of this section on the basis of which a credit was | 452 |
claimed under section 5747.055 of the Revised Code. | 453 |
(27) Deduct, to the extent not otherwise deducted or excluded | 454 |
in computing federal or Ohio adjusted gross income for the taxable | 455 |
year, the amount the taxpayer received during the taxable year | 456 |
from the military injury relief fund created in section 5101.98 of | 457 |
the Revised Code. | 458 |
(28) Deduct an amount equal to fifty per cent of the | 459 |
compensation received for personal services rendered in this state | 460 |
by the taxpayer as a nurse aide, as defined in section 3721.21 of | 461 |
the Revised Code, who satisfies division (B) or (C) of section | 462 |
3721.28 of the Revised Code, to the extent such compensation is | 463 |
not otherwise deducted or excluded in computing federal or Ohio | 464 |
adjusted gross income for the taxable year. | 465 |
(B) "Business income" means income, including gain or loss, | 466 |
arising from transactions, activities, and sources in the regular | 467 |
course of a trade or business and includes income, gain, or loss | 468 |
from real property, tangible property, and intangible property if | 469 |
the acquisition, rental, management, and disposition of the | 470 |
property constitute integral parts of the regular course of a | 471 |
trade or business operation. "Business income" includes income, | 472 |
including gain or loss, from a partial or complete liquidation of | 473 |
a business, including, but not limited to, gain or loss from the | 474 |
sale or other disposition of goodwill. | 475 |
(C) "Nonbusiness income" means all income other than business | 476 |
income and may include, but is not limited to, compensation, rents | 477 |
and royalties from real or tangible personal property, capital | 478 |
gains, interest, dividends and distributions, patent or copyright | 479 |
royalties, or lottery winnings, prizes, and awards. | 480 |
(D) "Compensation" means any form of remuneration paid to an | 481 |
employee for personal services. | 482 |
(E) "Fiduciary" means a guardian, trustee, executor, | 483 |
administrator, receiver, conservator, or any other person acting | 484 |
in any fiduciary capacity for any individual, trust, or estate. | 485 |
(F) "Fiscal year" means an accounting period of twelve months | 486 |
ending on the last day of any month other than December. | 487 |
(G) "Individual" means any natural person. | 488 |
(H) "Internal Revenue Code" means the "Internal Revenue Code | 489 |
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended. | 490 |
(I) "Resident" means any of the following, provided that | 491 |
division (I)(3) of this section applies only to taxable years of a | 492 |
trust beginning in 2002 or thereafter: | 493 |
(1) An individual who is domiciled in this state, subject to | 494 |
section 5747.24 of the Revised Code; | 495 |
(2) The estate of a decedent who at the time of death was | 496 |
domiciled in this state. The domicile tests of section 5747.24 of | 497 |
the Revised Code are not controlling for purposes of division | 498 |
(I)(2) of this section. | 499 |
(3) A trust that, in whole or part, resides in this state. If | 500 |
only part of a trust resides in this state, the trust is a | 501 |
resident only with respect to that part. | 502 |
For the purposes of division (I)(3) of this section: | 503 |
(a) A trust resides in this state for the trust's current | 504 |
taxable year to the extent, as described in division (I)(3)(d) of | 505 |
this section, that the trust consists directly or indirectly, in | 506 |
whole or in part, of assets, net of any related liabilities, that | 507 |
were transferred, or caused to be transferred, directly or | 508 |
indirectly, to the trust by any of the following: | 509 |
(i) A person, a court, or a governmental entity or | 510 |
instrumentality on account of the death of a decedent, but only if | 511 |
the trust is described in division (I)(3)(e)(i) or (ii) of this | 512 |
section; | 513 |
(ii) A person who was domiciled in this state for the | 514 |
purposes of this chapter when the person directly or indirectly | 515 |
transferred assets to an irrevocable trust, but only if at least | 516 |
one of the trust's qualifying beneficiaries is domiciled in this | 517 |
state for the purposes of this chapter during all or some portion | 518 |
of the trust's current taxable year; | 519 |
(iii) A person who was domiciled in this state for the | 520 |
purposes of this chapter when the trust document or instrument or | 521 |
part of the trust document or instrument became irrevocable, but | 522 |
only if at least one of the trust's qualifying beneficiaries is a | 523 |
resident domiciled in this state for the purposes of this chapter | 524 |
during all or some portion of the trust's current taxable year. If | 525 |
a trust document or instrument became irrevocable upon the death | 526 |
of a person who at the time of death was domiciled in this state | 527 |
for purposes of this chapter, that person is a person described in | 528 |
division (I)(3)(a)(iii) of this section. | 529 |
(b) A trust is irrevocable to the extent that the transferor | 530 |
is not considered to be the owner of the net assets of the trust | 531 |
under sections 671 to 678 of the Internal Revenue Code. | 532 |
(c) With respect to a trust other than a charitable lead | 533 |
trust, "qualifying beneficiary" has the same meaning as "potential | 534 |
current beneficiary" as defined in section 1361(e)(2) of the | 535 |
Internal Revenue Code, and with respect to a charitable lead trust | 536 |
"qualifying beneficiary" is any current, future, or contingent | 537 |
beneficiary, but with respect to any trust "qualifying | 538 |
beneficiary" excludes a person or a governmental entity or | 539 |
instrumentality to any of which a contribution would qualify for | 540 |
the charitable deduction under section 170 of the Internal Revenue | 541 |
Code. | 542 |
(d) For the purposes of division (I)(3)(a) of this section, | 543 |
the extent to which a trust consists directly or indirectly, in | 544 |
whole or in part, of assets, net of any related liabilities, that | 545 |
were transferred directly or indirectly, in whole or part, to the | 546 |
trust by any of the sources enumerated in that division shall be | 547 |
ascertained by multiplying the fair market value of the trust's | 548 |
assets, net of related liabilities, by the qualifying ratio, which | 549 |
shall be computed as follows: | 550 |
(i) The first time the trust receives assets, the numerator | 551 |
of the qualifying ratio is the fair market value of those assets | 552 |
at that time, net of any related liabilities, from sources | 553 |
enumerated in division (I)(3)(a) of this section. The denominator | 554 |
of the qualifying ratio is the fair market value of all the | 555 |
trust's assets at that time, net of any related liabilities. | 556 |
(ii) Each subsequent time the trust receives assets, a | 557 |
revised qualifying ratio shall be computed. The numerator of the | 558 |
revised qualifying ratio is the sum of (1) the fair market value | 559 |
of the trust's assets immediately prior to the subsequent | 560 |
transfer, net of any related liabilities, multiplied by the | 561 |
qualifying ratio last computed without regard to the subsequent | 562 |
transfer, and (2) the fair market value of the subsequently | 563 |
transferred assets at the time transferred, net of any related | 564 |
liabilities, from sources enumerated in division (I)(3)(a) of this | 565 |
section. The denominator of the revised qualifying ratio is the | 566 |
fair market value of all the trust's assets immediately after the | 567 |
subsequent transfer, net of any related liabilities. | 568 |
(iii) Whether a transfer to the trust is by or from any of | 569 |
the sources enumerated in division (I)(3)(a) of this section shall | 570 |
be ascertained without regard to the domicile of the trust's | 571 |
beneficiaries. | 572 |
(e) For the purposes of division (I)(3)(a)(i) of this | 573 |
section: | 574 |
(i) A trust is described in division (I)(3)(e)(i) of this | 575 |
section if the trust is a testamentary trust and the testator of | 576 |
that testamentary trust was domiciled in this state at the time of | 577 |
the testator's death for purposes of the taxes levied under | 578 |
Chapter 5731. of the Revised Code. | 579 |
(ii) A trust is described in division (I)(3)(e)(ii) of this | 580 |
section if the transfer is a qualifying transfer described in any | 581 |
of divisions (I)(3)(f)(i) to (vi) of this section, the trust is an | 582 |
irrevocable inter vivos trust, and at least one of the trust's | 583 |
qualifying beneficiaries is domiciled in this state for purposes | 584 |
of this chapter during all or some portion of the trust's current | 585 |
taxable year. | 586 |
(f) For the purposes of division (I)(3)(e)(ii) of this | 587 |
section, a "qualifying transfer" is a transfer of assets, net of | 588 |
any related liabilities, directly or indirectly to a trust, if the | 589 |
transfer is described in any of the following: | 590 |
(i) The transfer is made to a trust, created by the decedent | 591 |
before the decedent's death and while the decedent was domiciled | 592 |
in this state for the purposes of this chapter, and, prior to the | 593 |
death of the decedent, the trust became irrevocable while the | 594 |
decedent was domiciled in this state for the purposes of this | 595 |
chapter. | 596 |
(ii) The transfer is made to a trust to which the decedent, | 597 |
prior to the decedent's death, had directly or indirectly | 598 |
transferred assets, net of any related liabilities, while the | 599 |
decedent was domiciled in this state for the purposes of this | 600 |
chapter, and prior to the death of the decedent the trust became | 601 |
irrevocable while the decedent was domiciled in this state for the | 602 |
purposes of this chapter. | 603 |
(iii) The transfer is made on account of a contractual | 604 |
relationship existing directly or indirectly between the | 605 |
transferor and either the decedent or the estate of the decedent | 606 |
at any time prior to the date of the decedent's death, and the | 607 |
decedent was domiciled in this state at the time of death for | 608 |
purposes of the taxes levied under Chapter 5731. of the Revised | 609 |
Code. | 610 |
(iv) The transfer is made to a trust on account of a | 611 |
contractual relationship existing directly or indirectly between | 612 |
the transferor and another person who at the time of the | 613 |
decedent's death was domiciled in this state for purposes of this | 614 |
chapter. | 615 |
(v) The transfer is made to a trust on account of the will of | 616 |
a testator. | 617 |
(vi) The transfer is made to a trust created by or caused to | 618 |
be created by a court, and the trust was directly or indirectly | 619 |
created in connection with or as a result of the death of an | 620 |
individual who, for purposes of the taxes levied under Chapter | 621 |
5731. of the Revised Code, was domiciled in this state at the time | 622 |
of the individual's death. | 623 |
(g) The tax commissioner may adopt rules to ascertain the | 624 |
part of a trust residing in this state. | 625 |
(J) "Nonresident" means an individual or estate that is not a | 626 |
resident. An individual who is a resident for only part of a | 627 |
taxable year is a nonresident for the remainder of that taxable | 628 |
year. | 629 |
(K) "Pass-through entity" has the same meaning as in section | 630 |
5733.04 of the Revised Code. | 631 |
(L) "Return" means the notifications and reports required to | 632 |
be filed pursuant to this chapter for the purpose of reporting the | 633 |
tax due and includes declarations of estimated tax when so | 634 |
required. | 635 |
(M) "Taxable year" means the calendar year or the taxpayer's | 636 |
fiscal year ending during the calendar year, or fractional part | 637 |
thereof, upon which the adjusted gross income is calculated | 638 |
pursuant to this chapter. | 639 |
(N) "Taxpayer" means any person subject to the tax imposed by | 640 |
section 5747.02 of the Revised Code or any pass-through entity | 641 |
that makes the election under division (D) of section 5747.08 of | 642 |
the Revised Code. | 643 |
(O) "Dependents" means dependents as defined in the Internal | 644 |
Revenue Code and as claimed in the taxpayer's federal income tax | 645 |
return for the taxable year or which the taxpayer would have been | 646 |
permitted to claim had the taxpayer filed a federal income tax | 647 |
return. | 648 |
(P) "Principal county of employment" means, in the case of a | 649 |
nonresident, the county within the state in which a taxpayer | 650 |
performs services for an employer or, if those services are | 651 |
performed in more than one county, the county in which the major | 652 |
portion of the services are performed. | 653 |
(Q) As used in sections 5747.50 to 5747.55 of the Revised | 654 |
Code: | 655 |
(1) "Subdivision" means any county, municipal corporation, | 656 |
park district, or township. | 657 |
(2) "Essential local government purposes" includes all | 658 |
functions that any subdivision is required by general law to | 659 |
exercise, including like functions that are exercised under a | 660 |
charter adopted pursuant to the Ohio Constitution. | 661 |
(R) "Overpayment" means any amount already paid that exceeds | 662 |
the figure determined to be the correct amount of the tax. | 663 |
(S) "Taxable income" or "Ohio taxable income" applies only to | 664 |
estates and trusts, and means federal taxable income, as defined | 665 |
and used in the Internal Revenue Code, adjusted as follows: | 666 |
(1) Add interest or dividends, net of ordinary, necessary, | 667 |
and reasonable expenses not deducted in computing federal taxable | 668 |
income, on obligations or securities of any state or of any | 669 |
political subdivision or authority of any state, other than this | 670 |
state and its subdivisions and authorities, but only to the extent | 671 |
that such net amount is not otherwise includible in Ohio taxable | 672 |
income and is described in either division (S)(1)(a) or (b) of | 673 |
this section: | 674 |
(a) The net amount is not attributable to the S portion of an | 675 |
electing small business trust and has not been distributed to | 676 |
beneficiaries for the taxable year; | 677 |
(b) The net amount is attributable to the S portion of an | 678 |
electing small business trust for the taxable year. | 679 |
(2) Add interest or dividends, net of ordinary, necessary, | 680 |
and reasonable expenses not deducted in computing federal taxable | 681 |
income, on obligations of any authority, commission, | 682 |
instrumentality, territory, or possession of the United States to | 683 |
the extent that the interest or dividends are exempt from federal | 684 |
income taxes but not from state income taxes, but only to the | 685 |
extent that such net amount is not otherwise includible in Ohio | 686 |
taxable income and is described in either division (S)(1)(a) or | 687 |
(b) of this section; | 688 |
(3) Add the amount of personal exemption allowed to the | 689 |
estate pursuant to section 642(b) of the Internal Revenue Code; | 690 |
(4) Deduct interest or dividends, net of related expenses | 691 |
deducted in computing federal taxable income, on obligations of | 692 |
the United States and its territories and possessions or of any | 693 |
authority, commission, or instrumentality of the United States to | 694 |
the extent that the interest or dividends are exempt from state | 695 |
taxes under the laws of the United States, but only to the extent | 696 |
that such amount is included in federal taxable income and is | 697 |
described in either division (S)(1)(a) or (b) of this section; | 698 |
(5) Deduct the amount of wages and salaries, if any, not | 699 |
otherwise allowable as a deduction but that would have been | 700 |
allowable as a deduction in computing federal taxable income for | 701 |
the taxable year, had the targeted jobs credit allowed under | 702 |
sections 38, 51, and 52 of the Internal Revenue Code not been in | 703 |
effect, but only to the extent such amount relates either to | 704 |
income included in federal taxable income for the taxable year or | 705 |
to income of the S portion of an electing small business trust for | 706 |
the taxable year; | 707 |
(6) Deduct any interest or interest equivalent, net of | 708 |
related expenses deducted in computing federal taxable income, on | 709 |
public obligations and purchase obligations, but only to the | 710 |
extent that such net amount relates either to income included in | 711 |
federal taxable income for the taxable year or to income of the S | 712 |
portion of an electing small business trust for the taxable year; | 713 |
(7) Add any loss or deduct any gain resulting from sale, | 714 |
exchange, or other disposition of public obligations to the extent | 715 |
that such loss has been deducted or such gain has been included in | 716 |
computing either federal taxable income or income of the S portion | 717 |
of an electing small business trust for the taxable year; | 718 |
(8) Except in the case of the final return of an estate, add | 719 |
any amount deducted by the taxpayer on both its Ohio estate tax | 720 |
return pursuant to section 5731.14 of the Revised Code, and on its | 721 |
federal income tax return in determining federal taxable income; | 722 |
(9)(a) Deduct any amount included in federal taxable income | 723 |
solely because the amount represents a reimbursement or refund of | 724 |
expenses that in a previous year the decedent had deducted as an | 725 |
itemized deduction pursuant to section 63 of the Internal Revenue | 726 |
Code and applicable treasury regulations. The deduction otherwise | 727 |
allowed under division (S)(9)(a) of this section shall be reduced | 728 |
to the extent the reimbursement is attributable to an amount the | 729 |
taxpayer or decedent deducted under this section in any taxable | 730 |
year. | 731 |
(b) Add any amount not otherwise included in Ohio taxable | 732 |
income for any taxable year to the extent that the amount is | 733 |
attributable to the recovery during the taxable year of any amount | 734 |
deducted or excluded in computing federal or Ohio taxable income | 735 |
in any taxable year, but only to the extent such amount has not | 736 |
been distributed to beneficiaries for the taxable year. | 737 |
(10) Deduct any portion of the deduction described in section | 738 |
1341(a)(2) of the Internal Revenue Code, for repaying previously | 739 |
reported income received under a claim of right, that meets both | 740 |
of the following requirements: | 741 |
(a) It is allowable for repayment of an item that was | 742 |
included in the taxpayer's taxable income or the decedent's | 743 |
adjusted gross income for a prior taxable year and did not qualify | 744 |
for a credit under division (A) or (B) of section 5747.05 of the | 745 |
Revised Code for that year. | 746 |
(b) It does not otherwise reduce the taxpayer's taxable | 747 |
income or the decedent's adjusted gross income for the current or | 748 |
any other taxable year. | 749 |
(11) Add any amount claimed as a credit under section | 750 |
5747.059 of the Revised Code to the extent that the amount | 751 |
satisfies either of the following: | 752 |
(a) The amount was deducted or excluded from the computation | 753 |
of the taxpayer's federal taxable income as required to be | 754 |
reported for the taxpayer's taxable year under the Internal | 755 |
Revenue Code; | 756 |
(b) The amount resulted in a reduction in the taxpayer's | 757 |
federal taxable income as required to be reported for any of the | 758 |
taxpayer's taxable years under the Internal Revenue Code. | 759 |
(12) Deduct any amount, net of related expenses deducted in | 760 |
computing federal taxable income, that a trust is required to | 761 |
report as farm income on its federal income tax return, but only | 762 |
if the assets of the trust include at least ten acres of land | 763 |
satisfying the definition of "land devoted exclusively to | 764 |
agricultural use" under section 5713.30 of the Revised Code, | 765 |
regardless of whether the land is valued for tax purposes as such | 766 |
land under sections 5713.30 to 5713.38 of the Revised Code. If the | 767 |
trust is a pass-through entity investor, section 5747.231 of the | 768 |
Revised Code applies in ascertaining if the trust is eligible to | 769 |
claim the deduction provided by division (S)(12) of this section | 770 |
in connection with the pass-through entity's farm income. | 771 |
Except for farm income attributable to the S portion of an | 772 |
electing small business trust, the deduction provided by division | 773 |
(S)(12) of this section is allowed only to the extent that the | 774 |
trust has not distributed such farm income. Division (S)(12) of | 775 |
this section applies only to taxable years of a trust beginning in | 776 |
2002 or thereafter. | 777 |
(13) Add the net amount of income described in section 641(c) | 778 |
of the Internal Revenue Code to the extent that amount is not | 779 |
included in federal taxable income. | 780 |
(14) Add or deduct the amount the taxpayer would be required | 781 |
to add or deduct under division (A)(20) or (21) of this section if | 782 |
the taxpayer's Ohio taxable income were computed in the same | 783 |
manner as an individual's Ohio adjusted gross income is computed | 784 |
under this section. In the case of a trust, division (S)(14) of | 785 |
this section applies only to any of the trust's taxable years | 786 |
beginning in 2002 or thereafter. | 787 |
(T) "School district income" and "school district income tax" | 788 |
have the same meanings as in section 5748.01 of the Revised Code. | 789 |
(U) As used in divisions (A)(8), (A)(9), (S)(6), and (S)(7) | 790 |
of this section, "public obligations," "purchase obligations," and | 791 |
"interest or interest equivalent" have the same meanings as in | 792 |
section 5709.76 of the Revised Code. | 793 |
(V) "Limited liability company" means any limited liability | 794 |
company formed under Chapter 1705. of the Revised Code or under | 795 |
the laws of any other state. | 796 |
(W) "Pass-through entity investor" means any person who, | 797 |
during any portion of a taxable year of a pass-through entity, is | 798 |
a partner, member, shareholder, or equity investor in that | 799 |
pass-through entity. | 800 |
(X) "Banking day" has the same meaning as in section 1304.01 | 801 |
of the Revised Code. | 802 |
(Y) "Month" means a calendar month. | 803 |
(Z) "Quarter" means the first three months, the second three | 804 |
months, the third three months, or the last three months of the | 805 |
taxpayer's taxable year. | 806 |
(AA)(1) "Eligible institution" means a state university or | 807 |
state institution of higher education as defined in section | 808 |
3345.011 of the Revised Code, or a private, nonprofit college, | 809 |
university, or other post-secondary institution located in this | 810 |
state that possesses a certificate of authorization issued by the | 811 |
Ohio board of regents pursuant to Chapter 1713. of the Revised | 812 |
Code or a certificate of registration issued by the state board of | 813 |
career colleges and schools under Chapter 3332. of the Revised | 814 |
Code. | 815 |
(2) "Qualified tuition and fees" means tuition and fees | 816 |
imposed by an eligible institution as a condition of enrollment or | 817 |
attendance, not exceeding two thousand five hundred dollars in | 818 |
each of the individual's first two years of post-secondary | 819 |
education. If the individual is a part-time student, "qualified | 820 |
tuition and fees" includes tuition and fees paid for the academic | 821 |
equivalent of the first two years of post-secondary education | 822 |
during a maximum of five taxable years, not exceeding a total of | 823 |
five thousand dollars. "Qualified tuition and fees" does not | 824 |
include: | 825 |
(a) Expenses for any course or activity involving sports, | 826 |
games, or hobbies unless the course or activity is part of the | 827 |
individual's degree or diploma program; | 828 |
(b) The cost of books, room and board, student activity fees, | 829 |
athletic fees, insurance expenses, or other expenses unrelated to | 830 |
the individual's academic course of instruction; | 831 |
(c) Tuition, fees, or other expenses paid or reimbursed | 832 |
through an employer, scholarship, grant in aid, or other | 833 |
educational benefit program. | 834 |
(BB)(1) "Modified business income" means the business income | 835 |
included in a trust's Ohio taxable income after such taxable | 836 |
income is first reduced by the qualifying trust amount, if any. | 837 |
(2) "Qualifying trust amount" of a trust means capital gains | 838 |
and losses from the sale, exchange, or other disposition of equity | 839 |
or ownership interests in, or debt obligations of, a qualifying | 840 |
investee to the extent included in the trust's Ohio taxable | 841 |
income, but only if the following requirements are satisfied: | 842 |
(a) The book value of the qualifying investee's physical | 843 |
assets in this state and everywhere, as of the last day of the | 844 |
qualifying investee's fiscal or calendar year ending immediately | 845 |
prior to the date on which the trust recognizes the gain or loss, | 846 |
is available to the trust. | 847 |
(b) The requirements of section 5747.011 of the Revised Code | 848 |
are satisfied for the trust's taxable year in which the trust | 849 |
recognizes the gain or loss. | 850 |
Any gain or loss that is not a qualifying trust amount is | 851 |
modified business income, qualifying investment income, or | 852 |
modified nonbusiness income, as the case may be. | 853 |
(3) "Modified nonbusiness income" means a trust's Ohio | 854 |
taxable income other than modified business income, other than the | 855 |
qualifying trust amount, and other than qualifying investment | 856 |
income, as defined in section 5747.012 of the Revised Code, to the | 857 |
extent such qualifying investment income is not otherwise part of | 858 |
modified business income. | 859 |
(4) "Modified Ohio taxable income" applies only to trusts, | 860 |
and means the sum of the amounts described in divisions (BB)(4)(a) | 861 |
to (c) of this section: | 862 |
(a) The fraction, calculated under section 5747.013, and | 863 |
applying section 5747.231 of the Revised Code, multiplied by the | 864 |
sum of the following amounts: | 865 |
(i) The trust's modified business income; | 866 |
(ii) The trust's qualifying investment income, as defined in | 867 |
section 5747.012 of the Revised Code, but only to the extent the | 868 |
qualifying investment income does not otherwise constitute | 869 |
modified business income and does not otherwise constitute a | 870 |
qualifying trust amount. | 871 |
(b) The qualifying trust amount multiplied by a fraction, the | 872 |
numerator of which is the sum of the book value of the qualifying | 873 |
investee's physical assets in this state on the last day of the | 874 |
qualifying investee's fiscal or calendar year ending immediately | 875 |
prior to the day on which the trust recognizes the qualifying | 876 |
trust amount, and the denominator of which is the sum of the book | 877 |
value of the qualifying investee's total physical assets | 878 |
everywhere on the last day of the qualifying investee's fiscal or | 879 |
calendar year ending immediately prior to the day on which the | 880 |
trust recognizes the qualifying trust amount. If, for a taxable | 881 |
year, the trust recognizes a qualifying trust amount with respect | 882 |
to more than one qualifying investee, the amount described in | 883 |
division (BB)(4)(b) of this section shall equal the sum of the | 884 |
products so computed for each such qualifying investee. | 885 |
(c)(i) With respect to a trust or portion of a trust that is | 886 |
a resident as ascertained in accordance with division (I)(3)(d) of | 887 |
this section, its modified nonbusiness income. | 888 |
(ii) With respect to a trust or portion of a trust that is | 889 |
not a resident as ascertained in accordance with division | 890 |
(I)(3)(d) of this section, the amount of its modified nonbusiness | 891 |
income satisfying the descriptions in divisions (B)(2) to (5) of | 892 |
section 5747.20 of the Revised Code, except as otherwise provided | 893 |
in division (BB)(4)(c)(ii) of this section. With respect to a | 894 |
trust or portion of a trust that is not a resident as ascertained | 895 |
in accordance with division (I)(3)(d) of this section, the trust's | 896 |
portion of modified nonbusiness income recognized from the sale, | 897 |
exchange, or other disposition of a debt interest in or equity | 898 |
interest in a section 5747.212 entity, as defined in section | 899 |
5747.212 of the Revised Code, without regard to division (A) of | 900 |
that section, shall not be allocated to this state in accordance | 901 |
with section 5747.20 of the Revised Code but shall be apportioned | 902 |
to this state in accordance with division (B) of section 5747.212 | 903 |
of the Revised Code without regard to division (A) of that | 904 |
section. | 905 |
If the allocation and apportionment of a trust's income under | 906 |
divisions (BB)(4)(a) and (c) of this section do not fairly | 907 |
represent the modified Ohio taxable income of the trust in this | 908 |
state, the alternative methods described in division (C) of | 909 |
section 5747.21 of the Revised Code may be applied in the manner | 910 |
and to the same extent provided in that section. | 911 |
(5)(a) Except as set forth in division (BB)(5)(b) of this | 912 |
section, "qualifying investee" means a person in which a trust has | 913 |
an equity or ownership interest, or a person or unit of government | 914 |
the debt obligations of either of which are owned by a trust. For | 915 |
the purposes of division (BB)(2)(a) of this section and for the | 916 |
purpose of computing the fraction described in division (BB)(4)(b) | 917 |
of this section, all of the following apply: | 918 |
(i) If the qualifying investee is a member of a qualifying | 919 |
controlled group on the last day of the qualifying investee's | 920 |
fiscal or calendar year ending immediately prior to the date on | 921 |
which the trust recognizes the gain or loss, then "qualifying | 922 |
investee" includes all persons in the qualifying controlled group | 923 |
on such last day. | 924 |
(ii) If the qualifying investee, or if the qualifying | 925 |
investee and any members of the qualifying controlled group of | 926 |
which the qualifying investee is a member on the last day of the | 927 |
qualifying investee's fiscal or calendar year ending immediately | 928 |
prior to the date on which the trust recognizes the gain or loss, | 929 |
separately or cumulatively own, directly or indirectly, on the | 930 |
last day of the qualifying investee's fiscal or calendar year | 931 |
ending immediately prior to the date on which the trust recognizes | 932 |
the qualifying trust amount, more than fifty per cent of the | 933 |
equity of a pass-through entity, then the qualifying investee and | 934 |
the other members are deemed to own the proportionate share of the | 935 |
pass-through entity's physical assets which the pass-through | 936 |
entity directly or indirectly owns on the last day of the | 937 |
pass-through entity's calendar or fiscal year ending within or | 938 |
with the last day of the qualifying investee's fiscal or calendar | 939 |
year ending immediately prior to the date on which the trust | 940 |
recognizes the qualifying trust amount. | 941 |
(iii) For the purposes of division (BB)(5)(a)(iii) of this | 942 |
section, "upper level pass-through entity" means a pass-through | 943 |
entity directly or indirectly owning any equity of another | 944 |
pass-through entity, and "lower level pass-through entity" means | 945 |
that other pass-through entity. | 946 |
An upper level pass-through entity, whether or not it is also | 947 |
a qualifying investee, is deemed to own, on the last day of the | 948 |
upper level pass-through entity's calendar or fiscal year, the | 949 |
proportionate share of the lower level pass-through entity's | 950 |
physical assets that the lower level pass-through entity directly | 951 |
or indirectly owns on the last day of the lower level pass-through | 952 |
entity's calendar or fiscal year ending within or with the last | 953 |
day of the upper level pass-through entity's fiscal or calendar | 954 |
year. If the upper level pass-through entity directly and | 955 |
indirectly owns less than fifty per cent of the equity of the | 956 |
lower level pass-through entity on each day of the upper level | 957 |
pass-through entity's calendar or fiscal year in which or with | 958 |
which ends the calendar or fiscal year of the lower level | 959 |
pass-through entity and if, based upon clear and convincing | 960 |
evidence, complete information about the location and cost of the | 961 |
physical assets of the lower pass-through entity is not available | 962 |
to the upper level pass-through entity, then solely for purposes | 963 |
of ascertaining if a gain or loss constitutes a qualifying trust | 964 |
amount, the upper level pass-through entity shall be deemed as | 965 |
owning no equity of the lower level pass-through entity for each | 966 |
day during the upper level pass-through entity's calendar or | 967 |
fiscal year in which or with which ends the lower level | 968 |
pass-through entity's calendar or fiscal year. Nothing in division | 969 |
(BB)(5)(a)(iii) of this section shall be construed to provide for | 970 |
any deduction or exclusion in computing any trust's Ohio taxable | 971 |
income. | 972 |
(b) With respect to a trust that is not a resident for the | 973 |
taxable year and with respect to a part of a trust that is not a | 974 |
resident for the taxable year, "qualifying investee" for that | 975 |
taxable year does not include a C corporation if both of the | 976 |
following apply: | 977 |
(i) During the taxable year the trust or part of the trust | 978 |
recognizes a gain or loss from the sale, exchange, or other | 979 |
disposition of equity or ownership interests in, or debt | 980 |
obligations of, the C corporation. | 981 |
(ii) Such gain or loss constitutes nonbusiness income. | 982 |
(6) "Available" means information is such that a person is | 983 |
able to learn of the information by the due date plus extensions, | 984 |
if any, for filing the return for the taxable year in which the | 985 |
trust recognizes the gain or loss. | 986 |
(CC) "Qualifying controlled group" has the same meaning as in | 987 |
section 5733.04 of the Revised Code. | 988 |
(DD) "Related member" has the same meaning as in section | 989 |
5733.042 of the Revised Code. | 990 |
(EE)(1) For the purposes of division (EE) of this section: | 991 |
(a) "Qualifying person" means any person other than a | 992 |
qualifying corporation. | 993 |
(b) "Qualifying corporation" means any person classified for | 994 |
federal income tax purposes as an association taxable as a | 995 |
corporation, except either of the following: | 996 |
(i) A corporation that has made an election under subchapter | 997 |
S, chapter one, subtitle A, of the Internal Revenue Code for its | 998 |
taxable year ending within, or on the last day of, the investor's | 999 |
taxable year; | 1000 |
(ii) A subsidiary that is wholly owned by any corporation | 1001 |
that has made an election under subchapter S, chapter one, | 1002 |
subtitle A of the Internal Revenue Code for its taxable year | 1003 |
ending within, or on the last day of, the investor's taxable year. | 1004 |
(2) For the purposes of this chapter, unless expressly stated | 1005 |
otherwise, no qualifying person indirectly owns any asset directly | 1006 |
or indirectly owned by any qualifying corporation. | 1007 |
(FF) For purposes of this chapter and Chapter 5751. of the | 1008 |
Revised Code: | 1009 |
(1) "Trust" does not include a qualified pre-income tax | 1010 |
trust. | 1011 |
(2) A "qualified pre-income tax trust" is any pre-income tax | 1012 |
trust that makes a qualifying pre-income tax trust election as | 1013 |
described in division (FF)(3) of this section. | 1014 |
(3) A "qualifying pre-income tax trust election" is an | 1015 |
election by a pre-income tax trust to subject to the tax imposed | 1016 |
by section 5751.02 of the Revised Code the pre-income tax trust | 1017 |
and all pass-through entities of which the trust owns or | 1018 |
controls, directly, indirectly, or constructively through related | 1019 |
interests, five per cent or more of the ownership or equity | 1020 |
interests. The trustee shall notify the tax commissioner in | 1021 |
writing of the election on or before April 15, 2006. The | 1022 |
election, if timely made, shall be effective on and after January | 1023 |
1, 2006, and shall apply for all tax periods and tax years until | 1024 |
revoked by the trustee of the trust. | 1025 |
(4) A "pre-income tax trust" is a trust that satisfies all of | 1026 |
the following requirements: | 1027 |
(a) The document or instrument creating the trust was | 1028 |
executed by the grantor before January 1, 1972; | 1029 |
(b) The trust became irrevocable upon the creation of the | 1030 |
trust; and | 1031 |
(c) The grantor was domiciled in this state at the time the | 1032 |
trust was created. | 1033 |
Sec. 5747.08. An annual return with respect to the tax | 1034 |
imposed by section 5747.02 of the Revised Code and each tax | 1035 |
imposed under Chapter 5748. of the Revised Code shall be made by | 1036 |
every taxpayer for any taxable year for which the taxpayer is | 1037 |
liable for the tax imposed by that section or under that chapter, | 1038 |
unless the total credits allowed under divisions (E), (F), and (G) | 1039 |
of section 5747.05 of the Revised Code for the year are equal to | 1040 |
or exceed the tax imposed by section 5747.02 of the Revised Code, | 1041 |
in which case no return shall be required unless the taxpayer is | 1042 |
liable for a tax imposed pursuant to Chapter 5748. of the Revised | 1043 |
Code. | 1044 |
(A) If an individual is deceased, any return or notice | 1045 |
required of that individual under this chapter shall be made and | 1046 |
filed by that decedent's executor, administrator, or other person | 1047 |
charged with the property of that decedent. | 1048 |
(B) If an individual is unable to make a return or notice | 1049 |
required by this chapter, the return or notice required of that | 1050 |
individual shall be made and filed by the individual's duly | 1051 |
authorized agent, guardian, conservator, fiduciary, or other | 1052 |
person charged with the care of the person or property of that | 1053 |
individual. | 1054 |
(C) Returns or notices required of an estate or a trust shall | 1055 |
be made and filed by the fiduciary of the estate or trust. | 1056 |
(D)(1)(a) Except as otherwise provided in division (D)(1)(b) | 1057 |
of this section, any pass-through entity may file a single return | 1058 |
on behalf of one or more of the entity's investors other than an | 1059 |
investor that is a person subject to the tax imposed under section | 1060 |
5733.06 of the Revised Code. The single return shall set forth the | 1061 |
name, address, and social security number or other identifying | 1062 |
number of each of those pass-through entity investors and shall | 1063 |
indicate the distributive share of each of those pass-through | 1064 |
entity investor's income taxable in this state in accordance with | 1065 |
sections 5747.20 to 5747.231 of the Revised Code. Such | 1066 |
pass-through entity investors for whom the pass-through entity | 1067 |
elects to file a single return are not entitled to the exemption | 1068 |
or credit provided for by sections 5747.02 and 5747.022 of the | 1069 |
Revised Code; shall calculate the tax before business credits at | 1070 |
the highest rate of tax set forth in section 5747.02 of the | 1071 |
Revised Code for the taxable year for which the return is filed; | 1072 |
and are entitled to only their distributive share of the business | 1073 |
credits as defined in division (D)(2) of this section. A single | 1074 |
check drawn by the pass-through entity shall accompany the return | 1075 |
in full payment of the tax due, as shown on the single return, for | 1076 |
such investors, other than investors who are persons subject to | 1077 |
the tax imposed under section 5733.06 of the Revised Code. | 1078 |
(b)(i) A pass-through entity shall not include in such a | 1079 |
single return any investor that is a trust to the extent that any | 1080 |
direct or indirect current, future, or contingent beneficiary of | 1081 |
the trust is a person subject to the tax imposed under section | 1082 |
5733.06 of the Revised Code. | 1083 |
(ii) A pass-through entity shall not include in such a single | 1084 |
return any investor that is itself a pass-through entity to the | 1085 |
extent that any direct or indirect investor in the second | 1086 |
pass-through entity is a person subject to the tax imposed under | 1087 |
section 5733.06 of the Revised Code. | 1088 |
(c) Nothing in division (D) of this section precludes the tax | 1089 |
commissioner from requiring such investors to file the return and | 1090 |
make the payment of taxes and related interest, penalty, and | 1091 |
interest penalty required by this section or section 5747.02, | 1092 |
5747.09, or 5747.15 of the Revised Code. Nothing in division (D) | 1093 |
of this section shall be construed to provide to such an investor | 1094 |
or pass-through entity any additional deduction or credit, other | 1095 |
than the credit provided by division (J) of this section, solely | 1096 |
on account of the entity's filing a return in accordance with this | 1097 |
section. Such a pass-through entity also shall make the filing and | 1098 |
payment of estimated taxes on behalf of the pass-through entity | 1099 |
investors other than an investor that is a person subject to the | 1100 |
tax imposed under section 5733.06 of the Revised Code. | 1101 |
(2) For the purposes of this section, "business credits" | 1102 |
means the credits listed in section 5747.98 of the Revised Code | 1103 |
excluding the following credits: | 1104 |
(a) The retirement credit under division (B) of section | 1105 |
5747.055 of the Revised Code; | 1106 |
(b) The senior citizen credit under division (C) of section | 1107 |
5747.05 of the Revised Code; | 1108 |
(c) The lump sum distribution credit under division (D) of | 1109 |
section 5747.05 of the Revised Code; | 1110 |
(d) The dependent care credit under section 5747.054 of the | 1111 |
Revised Code; | 1112 |
(e) The lump sum retirement income credit under division (C) | 1113 |
of section 5747.055 of the Revised Code; | 1114 |
(f) The lump sum retirement income credit under division (D) | 1115 |
of section 5747.055 of the Revised Code; | 1116 |
(g) The lump sum retirement income credit under division (E) | 1117 |
of section 5747.055 of the Revised Code; | 1118 |
(h) The credit for displaced workers who pay for job training | 1119 |
under section 5747.27 of the Revised Code; | 1120 |
(i) The twenty-dollar personal exemption credit under section | 1121 |
5747.022 of the Revised Code; | 1122 |
(j) The joint filing credit under division (G) of section | 1123 |
5747.05 of the Revised Code; | 1124 |
(k) The nonresident credit under division (A) of section | 1125 |
5747.05 of the Revised Code; | 1126 |
(l) The credit for a resident's out-of-state income under | 1127 |
division (B) of section 5747.05 of the Revised Code; | 1128 |
(m) The low-income credit under section 5747.056 of the | 1129 |
Revised Code; | 1130 |
(n) The nursing professor credit under section 5747.72 of the | 1131 |
Revised Code. | 1132 |
(3) The election provided for under division (D) of this | 1133 |
section applies only to the taxable year for which the election is | 1134 |
made by the pass-through entity. Unless the tax commissioner | 1135 |
provides otherwise, this election, once made, is binding and | 1136 |
irrevocable for the taxable year for which the election is made. | 1137 |
Nothing in this division shall be construed to provide for any | 1138 |
deduction or credit that would not be allowable if a nonresident | 1139 |
pass-through entity investor were to file an annual return. | 1140 |
(4) If a pass-through entity makes the election provided for | 1141 |
under division (D) of this section, the pass-through entity shall | 1142 |
be liable for any additional taxes, interest, interest penalty, or | 1143 |
penalties imposed by this chapter if the tax commissioner finds | 1144 |
that the single return does not reflect the correct tax due by the | 1145 |
pass-through entity investors covered by that return. Nothing in | 1146 |
this division shall be construed to limit or alter the liability, | 1147 |
if any, imposed on pass-through entity investors for unpaid or | 1148 |
underpaid taxes, interest, interest penalty, or penalties as a | 1149 |
result of the pass-through entity's making the election provided | 1150 |
for under division (D) of this section. For the purposes of | 1151 |
division (D) of this section, "correct tax due" means the tax that | 1152 |
would have been paid by the pass-through entity had the single | 1153 |
return been filed in a manner reflecting the tax commissioner's | 1154 |
findings. Nothing in division (D) of this section shall be | 1155 |
construed to make or hold a pass-through entity liable for tax | 1156 |
attributable to a pass-through entity investor's income from a | 1157 |
source other than the pass-through entity electing to file the | 1158 |
single return. | 1159 |
(E) If a husband and wife file a joint federal income tax | 1160 |
return for a taxable year, they shall file a joint return under | 1161 |
this section for that taxable year, and their liabilities are | 1162 |
joint and several, but, if the federal income tax liability of | 1163 |
either spouse is determined on a separate federal income tax | 1164 |
return, they shall file separate returns under this section. | 1165 |
If either spouse is not required to file a federal income tax | 1166 |
return and either or both are required to file a return pursuant | 1167 |
to this chapter, they may elect to file separate or joint returns, | 1168 |
and, pursuant to that election, their liabilities are separate or | 1169 |
joint and several. If a husband and wife file separate returns | 1170 |
pursuant to this chapter, each must claim the taxpayer's own | 1171 |
exemption, but not both, as authorized under section 5747.02 of | 1172 |
the Revised Code on the taxpayer's own return. | 1173 |
(F) Each return or notice required to be filed under this | 1174 |
section shall contain the signature of the taxpayer or the | 1175 |
taxpayer's duly authorized agent and of the person who prepared | 1176 |
the return for the taxpayer, and shall include the taxpayer's | 1177 |
social security number. Each return shall be verified by a | 1178 |
declaration under the penalties of perjury. The tax commissioner | 1179 |
shall prescribe the form that the signature and declaration shall | 1180 |
take. | 1181 |
(G) Each return or notice required to be filed under this | 1182 |
section shall be made and filed as required by section 5747.04 of | 1183 |
the Revised Code, on or before the fifteenth day of April of each | 1184 |
year, on forms that the tax commissioner shall prescribe, together | 1185 |
with remittance made payable to the treasurer of state in the | 1186 |
combined amount of the state and all school district income taxes | 1187 |
shown to be due on the form, unless the combined amount shown to | 1188 |
be due is one dollar or less, in which case that amount need not | 1189 |
be remitted. | 1190 |
Upon good cause shown, the tax commissioner may extend the | 1191 |
period for filing any notice or return required to be filed under | 1192 |
this section and may adopt rules relating to extensions. If the | 1193 |
extension results in an extension of time for the payment of any | 1194 |
state or school district income tax liability with respect to | 1195 |
which the return is filed, the taxpayer shall pay at the time the | 1196 |
tax liability is paid an amount of interest computed at the rate | 1197 |
per annum prescribed by section 5703.47 of the Revised Code on | 1198 |
that liability from the time that payment is due without extension | 1199 |
to the time of actual payment. Except as provided in section | 1200 |
5747.132 of the Revised Code, in addition to all other interest | 1201 |
charges and penalties, all taxes imposed under this chapter or | 1202 |
Chapter 5748. of the Revised Code and remaining unpaid after they | 1203 |
become due, except combined amounts due of one dollar or less, | 1204 |
bear interest at the rate per annum prescribed by section 5703.47 | 1205 |
of the Revised Code until paid or until the day an assessment is | 1206 |
issued under section 5747.13 of the Revised Code, whichever occurs | 1207 |
first. | 1208 |
If the tax commissioner considers it necessary in order to | 1209 |
ensure the payment of the tax imposed by section 5747.02 of the | 1210 |
Revised Code or any tax imposed under Chapter 5748. of the Revised | 1211 |
Code, the tax commissioner may require returns and payments to be | 1212 |
made otherwise than as provided in this section. | 1213 |
To the extent that any provision in this division conflicts | 1214 |
with any provision in section 5747.026 of the Revised Code, the | 1215 |
provision in that section prevails. | 1216 |
(H) If any report, claim, statement, or other document | 1217 |
required to be filed, or any payment required to be made, within a | 1218 |
prescribed period or on or before a prescribed date under this | 1219 |
chapter is delivered after that period or that date by United | 1220 |
States mail to the agency, officer, or office with which the | 1221 |
report, claim, statement, or other document is required to be | 1222 |
filed, or to which the payment is required to be made, the date of | 1223 |
the postmark stamped on the cover in which the report, claim, | 1224 |
statement, or other document, or payment is mailed shall be deemed | 1225 |
to be the date of delivery or the date of payment. | 1226 |
If a payment is required to be made by electronic funds | 1227 |
transfer pursuant to section 5747.072 of the Revised Code, the | 1228 |
payment is considered to be made when the payment is received by | 1229 |
the treasurer of state or credited to an account designated by the | 1230 |
treasurer of state for the receipt of tax payments. | 1231 |
"The date of the postmark" means, in the event there is more | 1232 |
than one date on the cover, the earliest date imprinted on the | 1233 |
cover by the United States postal service. | 1234 |
(I) The amounts withheld by the employer pursuant to section | 1235 |
5747.06 of the Revised Code shall be allowed to the recipient of | 1236 |
the compensation as credits against payment of the appropriate | 1237 |
taxes imposed on the recipient by section 5747.02 and under | 1238 |
Chapter 5748. of the Revised Code. | 1239 |
(J) If, in accordance with division (D) of this section, a | 1240 |
pass-through entity elects to file a single return and if any | 1241 |
investor is required to file the return and make the payment of | 1242 |
taxes required by this chapter on account of the investor's other | 1243 |
income that is not included in a single return filed by a | 1244 |
pass-through entity, the investor is entitled to a refundable | 1245 |
credit equal to the investor's proportionate share of the tax paid | 1246 |
by the pass-through entity on behalf of the investor. The investor | 1247 |
shall claim the credit for the investor's taxable year in which or | 1248 |
with which ends the taxable year of the pass-through entity. | 1249 |
Nothing in this chapter shall be construed to allow any credit | 1250 |
provided in this chapter to be claimed more than once. For the | 1251 |
purposes of computing any interest, penalty, or interest penalty, | 1252 |
the investor shall be deemed to have paid the refundable credit | 1253 |
provided by this division on the day that the pass-through entity | 1254 |
paid the estimated tax or the tax giving rise to the credit. | 1255 |
(K) The tax commissioner shall ensure that each return | 1256 |
required to be filed under this section includes a box that the | 1257 |
taxpayer may check to authorize a paid tax preparer who prepared | 1258 |
the return to communicate with the department of taxation about | 1259 |
matters pertaining to the return. The return or instructions | 1260 |
accompanying the return shall indicate that by checking the box | 1261 |
the taxpayer authorizes the department of taxation to contact the | 1262 |
preparer concerning questions that arise during the processing of | 1263 |
the return and authorizes the preparer only to provide the | 1264 |
department with information that is missing from the return, to | 1265 |
contact the department for information about the processing of the | 1266 |
return or the status of the taxpayer's refund or payments, and to | 1267 |
respond to notices about mathematical errors, offsets, or return | 1268 |
preparation that the taxpayer has received from the department and | 1269 |
has shown to the preparer. | 1270 |
Sec. 5747.72. (A) As used in this section: | 1271 |
(1) "Nursing professor" means an individual who is licensed | 1272 |
to practice as a registered nurse under Chapter 4723. of the | 1273 |
Revised Code and is teaching at a post-secondary educational | 1274 |
institution in a program that leads to a diploma or degree in | 1275 |
nursing. | 1276 |
(2) "Post-secondary educational institution" means any | 1277 |
state-assisted college or university as defined in section | 1278 |
3333.041 of the Revised Code, any nonprofit institution holding a | 1279 |
certificate of authorization pursuant to Chapter 1713. of the | 1280 |
Revised Code, any institution holding a certificate of | 1281 |
registration from the state board of proprietary school | 1282 |
registration issued under Chapter 3332. of the Revised Code, or | 1283 |
any school holding authorization pursuant to Title XLVII of the | 1284 |
Revised Code to offer courses leading to a nursing license. | 1285 |
(B) A refundable credit is allowed against the tax imposed by | 1286 |
section 5747.02 of the Revised Code for a taxpayer who is a | 1287 |
nursing professor during a taxable year. The amount of the credit | 1288 |
shall be as follows: | 1289 |
(1) Three thousand five hundred dollars each taxable year for | 1290 |
four consecutive taxable years; | 1291 |
(2) One thousand seven hundred fifty dollars each taxable | 1292 |
year for two consecutive taxable years after the credit has been | 1293 |
taken in four consecutive taxable years under division (B)(1) of | 1294 |
this section. | 1295 |
A taxpayer may not claim the credit allowed under this | 1296 |
section in taxable year 2022 or thereafter. | 1297 |
(C) The credit under this section shall be claimed in the | 1298 |
order required under section 5747.98 of the Revised Code. If the | 1299 |
amount of the credit under this section exceeds the amount of tax | 1300 |
otherwise due under section 5747.02 of the Revised Code after | 1301 |
deduction of all other credits in that order, the taxpayer is | 1302 |
entitled to a refund of the excess. | 1303 |
(D) The tax commissioner may require a taxpayer to furnish | 1304 |
such information as is necessary to support a claim for a credit | 1305 |
under this section, and no credit shall be allowed unless the | 1306 |
information is provided. | 1307 |
Sec. 5747.98. (A) To provide a uniform procedure for | 1308 |
calculating the amount of tax due under section 5747.02 of the | 1309 |
Revised Code, a taxpayer shall claim any credits to which the | 1310 |
taxpayer is entitled in the following order: | 1311 |
(1) The retirement income credit under division (B) of | 1312 |
section 5747.055 of the Revised Code; | 1313 |
(2) The senior citizen credit under division (C) of section | 1314 |
5747.05 of the Revised Code; | 1315 |
(3) The lump sum distribution credit under division (D) of | 1316 |
section 5747.05 of the Revised Code; | 1317 |
(4) The dependent care credit under section 5747.054 of the | 1318 |
Revised Code; | 1319 |
(5) The lump sum retirement income credit under division (C) | 1320 |
of section 5747.055 of the Revised Code; | 1321 |
(6) The lump sum retirement income credit under division (D) | 1322 |
of section 5747.055 of the Revised Code; | 1323 |
(7) The lump sum retirement income credit under division (E) | 1324 |
of section 5747.055 of the Revised Code; | 1325 |
(8) The low-income credit under section 5747.056 of the | 1326 |
Revised Code; | 1327 |
(9) The credit for displaced workers who pay for job training | 1328 |
under section 5747.27 of the Revised Code; | 1329 |
(10) The campaign contribution credit under section 5747.29 | 1330 |
of the Revised Code; | 1331 |
(11) The twenty-dollar personal exemption credit under | 1332 |
section 5747.022 of the Revised Code; | 1333 |
(12) The joint filing credit under division (G) of section | 1334 |
5747.05 of the Revised Code; | 1335 |
(13) The nonresident credit under division (A) of section | 1336 |
5747.05 of the Revised Code; | 1337 |
(14) The credit for a resident's out-of-state income under | 1338 |
division (B) of section 5747.05 of the Revised Code; | 1339 |
(15) The credit for employers that enter into agreements with | 1340 |
child day-care centers under section 5747.34 of the Revised Code; | 1341 |
(16) The credit for employers that reimburse employee child | 1342 |
care expenses under section 5747.36 of the Revised Code; | 1343 |
(17) The credit for adoption of a minor child under section | 1344 |
5747.37 of the Revised Code; | 1345 |
(18) The credit for purchases of lights and reflectors under | 1346 |
section 5747.38 of the Revised Code; | 1347 |
(19) The job retention credit under division (B) of section | 1348 |
5747.058 of the Revised Code; | 1349 |
(20) The credit for selling alternative fuel under section | 1350 |
5747.77 of the Revised Code; | 1351 |
(21) The second credit for purchases of new manufacturing | 1352 |
machinery and equipment and the credit for using Ohio coal under | 1353 |
section 5747.31 of the Revised Code; | 1354 |
(22) The job training credit under section 5747.39 of the | 1355 |
Revised Code; | 1356 |
(23) The enterprise zone credit under section 5709.66 of the | 1357 |
Revised Code; | 1358 |
(24) The credit for the eligible costs associated with a | 1359 |
voluntary action under section 5747.32 of the Revised Code; | 1360 |
(25) The credit for employers that establish on-site child | 1361 |
day-care centers under section 5747.35 of the Revised Code; | 1362 |
(26) The ethanol plant investment credit under section | 1363 |
5747.75 of the Revised Code; | 1364 |
(27) The credit for purchases of qualifying grape production | 1365 |
property under section 5747.28 of the Revised Code; | 1366 |
(28) The export sales credit under section 5747.057 of the | 1367 |
Revised Code; | 1368 |
(29) The credit for research and development and technology | 1369 |
transfer investors under section 5747.33 of the Revised Code; | 1370 |
(30) The enterprise zone credits under section 5709.65 of the | 1371 |
Revised Code; | 1372 |
(31) The research and development credit under section | 1373 |
5747.331 of the Revised Code; | 1374 |
(32) The credit for rehabilitating a historic building under | 1375 |
section 5747.76 of the Revised Code; | 1376 |
(33) The refundable credit for rehabilitating a historic | 1377 |
building under section 5747.76 of the Revised Code; | 1378 |
(34) The refundable jobs creation credit under division (A) | 1379 |
of section 5747.058 of the Revised Code; | 1380 |
(35) The refundable credit for taxes paid by a qualifying | 1381 |
entity granted under section 5747.059 of the Revised Code; | 1382 |
(36) The refundable credits for taxes paid by a qualifying | 1383 |
pass-through entity granted under division (J) of section 5747.08 | 1384 |
of the Revised Code; | 1385 |
(37) The refundable credit for tax withheld under division | 1386 |
(B)(1) of section 5747.062 of the Revised Code; | 1387 |
(38) The refundable credit under section 5747.80 of the | 1388 |
Revised Code for losses on loans made to the Ohio venture capital | 1389 |
program under sections 150.01 to 150.10 of the Revised Code; | 1390 |
(39) The refundable nursing professor credit granted under | 1391 |
section 5747.72 of the Revised Code. | 1392 |
(B) For any credit, except the credits enumerated in | 1393 |
divisions (A)(33) to | 1394 |
granted under division (I) of section 5747.08 of the Revised | 1395 |
Code, the amount of the credit for a taxable year shall not | 1396 |
exceed the tax due after allowing for any other credit that | 1397 |
precedes it in the order required under this section. Any excess | 1398 |
amount of a particular credit may be carried forward if | 1399 |
authorized under the section creating that credit. Nothing in | 1400 |
this chapter shall be construed to allow a taxpayer to claim, | 1401 |
directly or indirectly, a credit more than once for a taxable | 1402 |
year. | 1403 |
Section 2. That existing sections 5747.01, 5747.08, and | 1404 |
5747.98 of the Revised Code are hereby repealed. | 1405 |
Section 3. The amendment by this act of section 5747.01, | 1406 |
5747.08, and 5747.98 of the Revised Code applies to taxable years | 1407 |
beginning in 2009 or thereafter. | 1408 |