As Introduced

128th General Assembly
Regular Session
S. B. No. 310

Senator Kearney 

To amend section 5747.98 and to enact section 5747.85 1
of the Revised Code to authorize an income tax 2
credit for residential landlords who improve a 3
rental unit's energy efficiency.4


       Section 1.  That section 5747.98 be amended and section 5
5747.85 of the Revised Code be enacted to read as follows:6

       Sec. 5747.85.  (A) For purposes of this section:7

       (1) "Energy efficiency improvement" has the same meaning as 8
in section 1710.01 of the Revised Code.9

       (2) "Energy-saving device" means a residential washer, dryer, 10
range, refrigerator, freezer, water heater, dishwasher, trash 11
compactor, air conditioner, furnace, or other similar product used 12
for regulating air or water temperature, cooking, sanitary 13
purposes, or other household purposes, or a window or door on an 14
outside wall of a home, if the device carries the energy star 15
label indicating that it meets the efficiency criteria of the 16
energy star program established by the United States department of 17
energy and the United States environmental protection agency. 18
"Energy-saving device" does not include any television or other 19
appliance used primarily for entertainment.20

       (3) "Residential rental property" means real property on 21
which is located one or more dwelling units leased to tenants 22
solely for residential purposes, but does not include a hotel or a 23
college or university dormitory.24

       (4) "Pass-through entity" includes a sole proprietor.25

       (B) A taxpayer who is an investor in a pass-through entity 26
that owns residential rental property may claim a refundable 27
credit against the tax imposed by section 5747.02 of the Revised 28
Code if on or after January 1, 2011, the entity purchases and 29
installs in the rental property an energy-saving device or the 30
entity improves the rental property with an energy efficiency 31
improvement installed by a person who is accredited by the 32
building performance institute. The taxpayer may claim the 33
taxpayer's proportionate or distributive share of fifteen per cent 34
of the sum of the purchase and installation cost of the device or 35
improvement. The taxpayer shall claim the credit in the taxpayer's 36
taxable year that includes the last day of the pass-through 37
entity's taxable year in which the installation was completed. The 38
taxpayer shall claim the credit in the order required under 39
section 5747.98 of the Revised Code. If the credit amount exceeds 40
the tax otherwise due under section5747.02 of the Revised Code 41
after deducting all other credits in that order, the taxpayer may 42
claim a refund of the excess. 43

       Sec. 5747.98.  (A) To provide a uniform procedure for 44
calculating the amount of tax due under section 5747.02 of the 45
Revised Code, a taxpayer shall claim any credits to which the 46
taxpayer is entitled in the following order:47

       (1) The retirement income credit under division (B) of 48
section 5747.055 of the Revised Code;49

       (2) The senior citizen credit under division (C) of section 50
5747.05 of the Revised Code;51

       (3) The lump sum distribution credit under division (D) of 52
section 5747.05 of the Revised Code;53

       (4) The dependent care credit under section 5747.054 of the 54
Revised Code;55

       (5) The lump sum retirement income credit under division (C) 56
of section 5747.055 of the Revised Code;57

       (6) The lump sum retirement income credit under division (D) 58
of section 5747.055 of the Revised Code;59

       (7) The lump sum retirement income credit under division (E) 60
of section 5747.055 of the Revised Code;61

       (8) The low-income credit under section 5747.056 of the 62
Revised Code;63

       (9) The credit for displaced workers who pay for job training 64
under section 5747.27 of the Revised Code;65

       (10) The campaign contribution credit under section 5747.29 66
of the Revised Code;67

       (11) The twenty-dollar personal exemption credit under 68
section 5747.022 of the Revised Code;69

       (12) The joint filing credit under division (G) of section 70
5747.05 of the Revised Code;71

       (13) The nonresident credit under division (A) of section 72
5747.05 of the Revised Code;73

       (14) The credit for a resident's out-of-state income under 74
division (B) of section 5747.05 of the Revised Code;75

       (15) The credit for employers that enter into agreements with 76
child day-care centers under section 5747.34 of the Revised Code;77

       (16) The credit for employers that reimburse employee child 78
care expenses under section 5747.36 of the Revised Code;79

       (17) The credit for adoption of a minor child under section 80
5747.37 of the Revised Code;81

       (18) The credit for purchases of lights and reflectors under 82
section 5747.38 of the Revised Code;83

       (19) The job retention credit under division (B) of section 84
5747.058 of the Revised Code;85

       (20) The credit for selling alternative fuel under section 86
5747.77 of the Revised Code;87

       (21) The second credit for purchases of new manufacturing 88
machinery and equipment and the credit for using Ohio coal under 89
section 5747.31 of the Revised Code;90

       (22) The job training credit under section 5747.39 of the 91
Revised Code;92

       (23) The enterprise zone credit under section 5709.66 of the 93
Revised Code;94

       (24) The credit for the eligible costs associated with a 95
voluntary action under section 5747.32 of the Revised Code;96

       (25) The credit for employers that establish on-site child 97
day-care centers under section 5747.35 of the Revised Code;98

       (26) The ethanol plant investment credit under section 99
5747.75 of the Revised Code;100

       (27) The credit for purchases of qualifying grape production 101
property under section 5747.28 of the Revised Code;102

       (28) The export sales credit under section 5747.057 of the 103
Revised Code;104

       (29) The credit for research and development and technology 105
transfer investors under section 5747.33 of the Revised Code;106

       (30) The enterprise zone credits under section 5709.65 of the 107
Revised Code;108

       (31) The research and development credit under section 109
5747.331 of the Revised Code;110

       (32) The credit for rehabilitating a historic building under 111
section 5747.76 of the Revised Code;112

       (33) The refundable credit for rehabilitating a historic 113
building under section 5747.76 of the Revised Code;114

       (34) The refundable jobs creation credit under division (A) 115
of section 5747.058 of the Revised Code;116

       (35) The refundable credit for taxes paid by a qualifying 117
entity granted under section 5747.059 of the Revised Code;118

       (36) The refundable credits for taxes paid by a qualifying 119
pass-through entity granted under division (J) of section 5747.08 120
of the Revised Code;121

       (37) The refundable credit for tax withheld under division 122
(B)(1) of section 5747.062 of the Revised Code;123

       (38) The refundable credit for tax withheld under section 124
5747.063 of the Revised Code;125

       (39) The refundable credit under section 5747.80 of the 126
Revised Code for losses on loans made to the Ohio venture capital 127
program under sections 150.01 to 150.10 of the Revised Code;128

       (40) The refundable motion picture production credit under 129
section 5747.66 of the Revised Code;130

       (41) The refundable credit for rental property energy 131
efficiency improvements under section 5747.85 of the Revised Code.132

       (B) For any credit, except the refundable credits enumerated 133
in this section and the credit granted under division (I) of 134
section 5747.08 of the Revised Code, the amount of the credit for 135
a taxable year shall not exceed the tax due after allowing for any 136
other credit that precedes it in the order required under this 137
section. Any excess amount of a particular credit may be carried 138
forward if authorized under the section creating that credit. 139
Nothing in this chapter shall be construed to allow a taxpayer to 140
claim, directly or indirectly, a credit more than once for a 141
taxable year.142

       Section 2.  That existing section 5747.98 of the Revised Code 143
is hereby repealed.144