|
|
To amend sections 5747.98 and 5751.98 and to enact | 1 |
sections 5747.81 and 5751.55 of the Revised Code | 2 |
to authorize a nonrefundable tax credit for a | 3 |
business that increases payroll and expands into a | 4 |
vacant facility. | 5 |
Section 1. That sections 5747.98 and 5751.98 be amended and | 6 |
sections 5747.81 and 5751.55 of the Revised Code be enacted to | 7 |
read as follows: | 8 |
Sec. 5747.81. As used in this section, "payroll inflation | 9 |
factor" for a taxable year means one plus the per cent change in | 10 |
the employment cost index for total compensation of all workers in | 11 |
private industry as published by the United States bureau of labor | 12 |
statistics for the twelve-month period ending with the calendar | 13 |
quarter that includes the last day of the taxpayer's taxable year | 14 |
for which the credit is claimed. | 15 |
A credit is allowed against the tax imposed by section | 16 |
5747.02 of the Revised Code for a taxpayer that, on or after the | 17 |
effective date of this section as enacted by . . . . . of the | 18 |
129th general assembly, leases or purchases commercial space in | 19 |
this state that, for the six months immediately preceding the | 20 |
lease or purchase date, was unoccupied, and at which the taxpayer | 21 |
employs at least fifty per cent of its employees who are employed | 22 |
in this state. A taxpayer may qualify for a credit under this | 23 |
section only once. Except as otherwise provided in this section, | 24 |
the credit may be claimed for the taxpayer's taxable year that | 25 |
includes the lease or purchase date and for the four ensuing | 26 |
taxable years. The credit for a taxable year equals the taxpayer's | 27 |
income tax withholdings under section 5747.06 of the Revised Code | 28 |
for the taxable year less the product of such withholdings for the | 29 |
immediately preceding taxable year multiplied by the payroll | 30 |
inflation factor. The taxpayer may not claim a credit for a | 31 |
taxable year or for any subsequent taxable year if, during the | 32 |
taxable year, the taxpayer fails to employ at least fifty per cent | 33 |
of its employees who are employed in this state at the commercial | 34 |
space, unless the taxpayer relocates such employees to other | 35 |
commercial space in this state that, for the six months | 36 |
immediately preceding the date of the lease or purchase, was | 37 |
unoccupied. | 38 |
The credit shall be claimed in the order required under | 39 |
section 5747.98 of the Revised Code. The amount of credit claimed | 40 |
may not exceed the tax otherwise due after allowing for all | 41 |
preceding credits in that order, but the excess may be carried | 42 |
forward to the next ensuing three taxable years. | 43 |
The tax commissioner shall publish on the department of | 44 |
taxation's web site the payroll inflation factor for each quarter. | 45 |
Nothing in this section limits or disallows pass-through | 46 |
treatment of the credit. An owner of a pass-through entity that | 47 |
claims the credit under section 5751.55 of the Revised Code may | 48 |
not claim the credit under this section. | 49 |
Sec. 5747.98. (A) To provide a uniform procedure for | 50 |
calculating the amount of tax due under section 5747.02 of the | 51 |
Revised Code, a taxpayer shall claim any credits to which the | 52 |
taxpayer is entitled in the following order: | 53 |
(1) The retirement income credit under division (B) of | 54 |
section 5747.055 of the Revised Code; | 55 |
(2) The senior citizen credit under division (C) of section | 56 |
5747.05 of the Revised Code; | 57 |
(3) The lump sum distribution credit under division (D) of | 58 |
section 5747.05 of the Revised Code; | 59 |
(4) The dependent care credit under section 5747.054 of the | 60 |
Revised Code; | 61 |
(5) The lump sum retirement income credit under division (C) | 62 |
of section 5747.055 of the Revised Code; | 63 |
(6) The lump sum retirement income credit under division (D) | 64 |
of section 5747.055 of the Revised Code; | 65 |
(7) The lump sum retirement income credit under division (E) | 66 |
of section 5747.055 of the Revised Code; | 67 |
(8) The low-income credit under section 5747.056 of the | 68 |
Revised Code; | 69 |
(9) The credit for displaced workers who pay for job training | 70 |
under section 5747.27 of the Revised Code; | 71 |
(10) The campaign contribution credit under section 5747.29 | 72 |
of the Revised Code; | 73 |
(11) The twenty-dollar personal exemption credit under | 74 |
section 5747.022 of the Revised Code; | 75 |
(12) The joint filing credit under division (G) of section | 76 |
5747.05 of the Revised Code; | 77 |
(13) The nonresident credit under division (A) of section | 78 |
5747.05 of the Revised Code; | 79 |
(14) The credit for a resident's out-of-state income under | 80 |
division (B) of section 5747.05 of the Revised Code; | 81 |
(15) The credit for employers that enter into agreements with | 82 |
child day-care centers under section 5747.34 of the Revised Code; | 83 |
(16) The credit for employers that reimburse employee child | 84 |
care expenses under section 5747.36 of the Revised Code; | 85 |
(17) The credit for adoption of a minor child under section | 86 |
5747.37 of the Revised Code; | 87 |
(18) The credit for purchases of lights and reflectors under | 88 |
section 5747.38 of the Revised Code; | 89 |
(19) The job retention credit under division (B) of section | 90 |
5747.058 of the Revised Code; | 91 |
(20) The credit for selling alternative fuel under section | 92 |
5747.77 of the Revised Code; | 93 |
(21) The second credit for purchases of new manufacturing | 94 |
machinery and equipment and the credit for using Ohio coal under | 95 |
section 5747.31 of the Revised Code; | 96 |
(22) The job training credit under section 5747.39 of the | 97 |
Revised Code; | 98 |
(23) The enterprise zone credit under section 5709.66 of the | 99 |
Revised Code; | 100 |
(24) The credit for the eligible costs associated with a | 101 |
voluntary action under section 5747.32 of the Revised Code; | 102 |
(25) The credit for expanding into a vacant facility under | 103 |
section 5747.81 of the Revised Code; | 104 |
(26) The credit for employers that establish on-site child | 105 |
day-care centers under section 5747.35 of the Revised Code; | 106 |
| 107 |
5747.75 of the Revised Code; | 108 |
| 109 |
production property under section 5747.28 of the Revised Code; | 110 |
| 111 |
the Revised Code; | 112 |
| 113 |
technology transfer investors under section 5747.33 of the Revised | 114 |
Code; | 115 |
| 116 |
the Revised Code; | 117 |
| 118 |
5747.331 of the Revised Code; | 119 |
| 120 |
under section 5747.76 of the Revised Code; | 121 |
| 122 |
building under section 5747.76 of the Revised Code; | 123 |
| 124 |
(A) of section 5747.058 of the Revised Code; | 125 |
| 126 |
entity granted under section 5747.059 of the Revised Code; | 127 |
| 128 |
qualifying pass-through entity granted under division (J) of | 129 |
section 5747.08 of the Revised Code; | 130 |
| 131 |
division (B)(1) of section 5747.062 of the Revised Code; | 132 |
| 133 |
5747.063 of the Revised Code; | 134 |
| 135 |
Revised Code for losses on loans made to the Ohio venture capital | 136 |
program under sections 150.01 to 150.10 of the Revised Code; | 137 |
| 138 |
under section 5747.66 of the Revised Code. | 139 |
(B) For any credit, except the refundable credits enumerated | 140 |
in this section and the credit granted under division (I) of | 141 |
section 5747.08 of the Revised Code, the amount of the credit for | 142 |
a taxable year shall not exceed the tax due after allowing for any | 143 |
other credit that precedes it in the order required under this | 144 |
section. Any excess amount of a particular credit may be carried | 145 |
forward if authorized under the section creating that credit. | 146 |
Nothing in this chapter shall be construed to allow a taxpayer to | 147 |
claim, directly or indirectly, a credit more than once for a | 148 |
taxable year. | 149 |
Sec. 5751.55. As used in this division, "payroll inflation | 150 |
factor" for a calendar year means one plus the per cent change in | 151 |
the employment cost index for total compensation of all workers in | 152 |
private industry as published by the United States bureau of labor | 153 |
statistics for the twelve-month period ending with the third | 154 |
calendar quarter of the calendar year for which the credit is | 155 |
claimed. | 156 |
A credit is allowed against the tax imposed by section | 157 |
5751.02 of the Revised Code for a taxpayer that, on or after the | 158 |
effective date of this section as enacted by . . . . . of the | 159 |
129th general assembly, leases or purchases commercial space in | 160 |
this state that, for the six months immediately preceding the | 161 |
lease or purchase date, was unoccupied, and at which the taxpayer | 162 |
employs at least fifty per cent of its employees who are employed | 163 |
in this state. A taxpayer may qualify for a credit under this | 164 |
section only once. Except as otherwise provided in this section, | 165 |
the credit may be claimed for the calendar year that includes the | 166 |
lease or purchase date and for the four ensuing calendar years. | 167 |
The credit for a calendar year equals the taxpayer's income tax | 168 |
withholdings under section 5747.06 of the Revised Code for the | 169 |
calendar year less the product of such withholdings for the | 170 |
immediately preceding year multiplied by the payroll inflation | 171 |
factor. The taxpayer may not claim a credit for a calendar year or | 172 |
for any subsequent year if, during the year, the taxpayer fails to | 173 |
employ at least fifty per cent of its employees who are employed | 174 |
in this state at the commercial space, unless the taxpayer | 175 |
relocates such employees to other commercial space in this state | 176 |
that, for the six months immediately preceding the date of the | 177 |
lease or purchase, was unoccupied. | 178 |
The credit shall be claimed with the annual return required | 179 |
under section 5751.051 of the Revised Code for the calendar year | 180 |
for which the credit is being claimed. The credit shall be claimed | 181 |
in the order required under section 5751.98 of the Revised Code. | 182 |
The amount of credit claimed may not exceed the tax otherwise due | 183 |
with the annual return after allowing for all preceding credits in | 184 |
that order, but the excess may be carried forward to tax periods | 185 |
in or coinciding with the next ensuing three calendar years. | 186 |
Sec. 5751.98. (A) To provide a uniform procedure for | 187 |
calculating the amount of tax due under this chapter, a taxpayer | 188 |
shall claim any credits to which it is entitled in the following | 189 |
order: | 190 |
(1) The credit for expanding into a vacant facility under | 191 |
section 5751.55 of the Revised Code; | 192 |
(2) The nonrefundable jobs retention credit under division | 193 |
(B) of section 5751.50 of the Revised Code; | 194 |
| 195 |
expenses under division (B) of section 5751.51 of the Revised | 196 |
Code; | 197 |
| 198 |
research and development loan payments under division (B) of | 199 |
section 5751.52 of the Revised Code; | 200 |
| 201 |
2029 for unused net operating losses under division (B) of section | 202 |
5751.53 of the Revised Code; | 203 |
| 204 |
unused net operating losses under division (C) of section 5751.53 | 205 |
of the Revised Code; | 206 |
| 207 |
of section 5751.50 of the Revised Code. | 208 |
(B) For any credit except the | 209 |
enumerated in | 210 |
credit for a tax period shall not exceed the tax due after | 211 |
allowing for any other credit that precedes it in the order | 212 |
required under this section. Any excess amount of a particular | 213 |
credit may be carried forward if authorized under the section | 214 |
creating the credit. | 215 |
Section 2. That existing sections 5747.98 and 5751.98 of the | 216 |
Revised Code are hereby repealed. | 217 |