As Introduced

128th General Assembly
Regular Session
2009-2010
S. B. No. 32


Senator Turner 

Cosponsors: Senators Stewart, Smith 

A BILL
To amend section 5747.98 and to enact section 5747.61 1
of the Revised Code to create a nonrefundable tax 2
credit for individuals who purchase a new hybrid 3
vehicle.4


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

       Section 1.  That section 5747.98 be amended and section 5
5747.61 of the Revised Code be enacted to read as follows:6

       Sec. 5747.61. (A) As used in this section:7

       (1) "Hybrid vehicle" means a road vehicle that draws 8
propulsion energy from onboard sources of stored energy that are 9
both an internal combustion or heat engine using consumable fuel 10
and a rechargeable energy storage system.11

       (2) "Consumable fuel" means any solid, liquid, or gaseous 12
matter that releases energy when consumed by a power unit.13

        (B) For taxable years beginning on or after January 1, 2009, 14
a nonrefundable credit is allowed against the tax imposed by 15
section 5747.02 of the Revised Code for a taxpayer who purchases a 16
new hybrid vehicle. For the purposes of this section, a taxpayer 17
purchases a new hybrid vehicle if, at the time of purchase, legal 18
title to the hybrid vehicle never has been transferred to a 19
person other than a manufacturer, remanufacturer, distributor, or 20
dealer as a dealer, and the taxpayer is the first person who in 21
good faith purchases the hybrid vehicle for purposes other than 22
resale.23

        The amount of the credit shall be calculated as follows:24

        (1) If the new hybrid vehicle has an average fuel economy for 25
combined city and highway driving equal to or more than forty 26
miles per gallon, as measured by the administrator of the United 27
States environmental protection agency, the credit equals three 28
thousand dollars.29

        (2) If the new hybrid vehicle has an average fuel economy for 30
combined city and highway driving of less than forty miles per 31
gallon, as measured by the administrator of the United States 32
environmental protection agency, the credit equals two thousand 33
dollars.34

       The taxpayer shall claim the credit for the taxable year in 35
which the purchase was made and in the order required by section 36
5747.98 of the Revised Code.37

       Sec. 5747.98.  (A) To provide a uniform procedure for38
calculating the amount of tax due under section 5747.02 of the39
Revised Code, a taxpayer shall claim any credits to which the40
taxpayer is entitled in the following order:41

       (1) The retirement income credit under division (B) of42
section 5747.055 of the Revised Code;43

       (2) The senior citizen credit under division (C) of section44
5747.05 of the Revised Code;45

       (3) The lump sum distribution credit under division (D) of46
section 5747.05 of the Revised Code;47

       (4) The dependent care credit under section 5747.054 of the48
Revised Code;49

       (5) The lump sum retirement income credit under division (C)50
of section 5747.055 of the Revised Code;51

       (6) The lump sum retirement income credit under division (D)52
of section 5747.055 of the Revised Code;53

       (7) The lump sum retirement income credit under division (E)54
of section 5747.055 of the Revised Code;55

       (8) The low-income credit under section 5747.056 of the 56
Revised Code;57

       (9) The credit for displaced workers who pay for job training 58
under section 5747.27 of the Revised Code;59

       (10) The campaign contribution credit under section 5747.2960
of the Revised Code;61

       (11) The twenty-dollar personal exemption credit under62
section 5747.022 of the Revised Code;63

       (12) The joint filing credit under division (G) of section64
5747.05 of the Revised Code;65

       (13) The nonresident credit under division (A) of section66
5747.05 of the Revised Code;67

       (14) The credit for a resident's out-of-state income under68
division (B) of section 5747.05 of the Revised Code;69

       (15) The credit for employers that enter into agreements with 70
child day-care centers under section 5747.34 of the Revised Code;71

       (16) The credit for employers that reimburse employee child 72
care expenses under section 5747.36 of the Revised Code;73

       (17) The credit for adoption of a minor child under section74
5747.37 of the Revised Code;75

       (18) The credit for purchases of lights and reflectors under76
section 5747.38 of the Revised Code;77

       (19) The credit for purchasing a new hybrid vehicle under 78
section 5747.61 of the Revised Code;79

       (20) The job retention credit under division (B) of section80
5747.058 of the Revised Code;81

       (20)(21) The credit for selling alternative fuel under 82
section 5747.77 of the Revised Code;83

       (21)(22) The second credit for purchases of new manufacturing84
machinery and equipment and the credit for using Ohio coal under85
section 5747.31 of the Revised Code;86

       (22)(23) The job training credit under section 5747.39 of the87
Revised Code;88

       (23)(24) The enterprise zone credit under section 5709.66 of89
the Revised Code;90

       (24)(25) The credit for the eligible costs associated with a91
voluntary action under section 5747.32 of the Revised Code;92

       (25)(26) The credit for employers that establish on-site93
child day-care centers under section 5747.35 of the Revised Code;94

       (26)(27) The ethanol plant investment credit under section95
5747.75 of the Revised Code;96

       (27)(28) The credit for purchases of qualifying grape97
production property under section 5747.28 of the Revised Code;98

       (28)(29) The export sales credit under section 5747.057 of99
the Revised Code;100

       (29)(30) The credit for research and development and101
technology transfer investors under section 5747.33 of the Revised102
Code;103

       (30)(31) The enterprise zone credits under section 5709.65 of104
the Revised Code;105

       (31)(32) The research and development credit under section 106
5747.331 of the Revised Code;107

       (32)(33) The credit for rehabilitating a historic building 108
under section 5747.76 of the Revised Code;109

       (33)(34) The refundable credit for rehabilitating a historic 110
building under section 5747.76 of the Revised Code;111

       (34)(35) The refundable jobs creation credit under division112
(A) of section 5747.058 of the Revised Code;113

       (35)(36) The refundable credit for taxes paid by a qualifying114
entity granted under section 5747.059 of the Revised Code;115

       (36)(37) The refundable credits for taxes paid by a116
qualifying pass-through entity granted under division (J) of117
section 5747.08 of the Revised Code;118

       (37)(38) The refundable credit for tax withheld under119
division (B)(1) of section 5747.062 of the Revised Code;120

       (38)(39) The refundable credit under section 5747.80 of the 121
Revised Code for losses on loans made to the Ohio venture capital 122
program under sections 150.01 to 150.10 of the Revised Code.123

       (B) For any credit, except the credits enumerated in 124
divisions (A)(33)(34) to (38)(39) of this section and the credit 125
granted under division (I) of section 5747.08 of the Revised 126
Code, the amount of the credit for a taxable year shall not127
exceed the tax due after allowing for any other credit that128
precedes it in the order required under this section. Any excess129
amount of a particular credit may be carried forward if130
authorized under the section creating that credit. Nothing in 131
this chapter shall be construed to allow a taxpayer to claim, 132
directly or indirectly, a credit more than once for a taxable 133
year.134

       Section 2. That existing section 5747.98 of the Revised Code 135
is hereby repealed.136