Sec. 718.17. The legislative authority of a municipal | 12 |
corporation, by ordinance, may grant a credit against a tax | 13 |
imposed on income to an individual who is subject to the tax and | 14 |
who qualifies for a credit authorized under section 3333.51 of the | 15 |
Revised Code. The legislative authority may establish credit | 16 |
amounts and limits, refundability attributes, carry-forward | 17 |
periods, and deferral periods and procedures other than as | 18 |
prescribed in sections 3333.51 and 5747.81 of the Revised Code. | 19 |
(B) For the purpose of developing and maintaining a highly | 42 |
qualified workforce and thereby to improve the economic welfare of | 43 |
all Ohioans, an individual who graduates on or after the effective | 44 |
date of the enactment of this section from an institution of | 45 |
higher education with a degree in an approved field of study is | 46 |
allowed a credit against the tax imposed by section 5747.02 of the | 47 |
Revised Code. Except as provided in division (C) of this section, | 48 |
the credit shall equal five thousand dollars in the case of an | 49 |
associate's degree; twenty thousand dollars in the case of a | 50 |
baccalaureate degree; and thirty thousand dollars in the case of a | 51 |
master's or doctoral degree. Except as otherwise provided in this | 52 |
section, the individual shall claim one-tenth of the credit amount | 53 |
for the individual's taxable year that includes the date of | 54 |
graduation and one-tenth of the credit amount in each of the | 55 |
succeeding nine consecutive taxable years for which the individual | 56 |
is subject to the tax imposed by section 5747.02 of the Revised | 57 |
Code. Evidence of graduation shall be retained for inspection by | 58 |
the tax commissioner until the expiration of four years after the | 59 |
end of the last taxable year the credit is taken. | 60 |
(C)(1) An individual who has been allowed a credit for an | 61 |
associate's or baccalaureate degree or both is allowed an | 62 |
additional credit for the receipt of a more advanced degree from | 63 |
an institution of higher education in an approved field of study. | 64 |
The credit amount for the additional degree equals the credit | 65 |
amount for the degree as provided in division (B) of this section | 66 |
less the credit amount for the degree or degrees for which a | 67 |
credit has previously been allowed. The credit shall be claimed | 68 |
in the manner required under division (B) of this section. | 69 |
(D) The Ohio board of regents shall identify institutions of | 78 |
higher education and approved fields of study. In identifying | 79 |
approved fields of study, the board shall give priority to those | 80 |
related to information technology, power and propulsion, advanced | 81 |
materials, instruments and controls, electronics, and | 82 |
biotechnology and biosciences. | 83 |
Sec. 5747.08. An annual return with respect to the tax | 84 |
imposed by section 5747.02 of the Revised Code and each tax | 85 |
imposed under Chapter 5748. of the Revised Code shall be made by | 86 |
every taxpayer for any taxable year for which the taxpayer is | 87 |
liable for the tax imposed by that section or under that chapter, | 88 |
unless the total credits allowed under divisions (E), (F), and (G) | 89 |
of section 5747.05 of the Revised Code for the year are equal to | 90 |
or exceed the tax imposed by section 5747.02 of the Revised Code, | 91 |
in which case no return shall be required unless the taxpayer is | 92 |
liable for a tax imposed pursuant to Chapter 5748. of the Revised | 93 |
Code. | 94 |
(D)(1)(a) Except as otherwise provided in division (D)(1)(b) | 107 |
of this section, any pass-through entity may file a single return | 108 |
on behalf of one or more of the entity's investors other than an | 109 |
investor that is a person subject to the tax imposed under section | 110 |
5733.06 of the Revised Code. The single return shall set forth the | 111 |
name, address, and social security number or other identifying | 112 |
number of each of those pass-through entity investors and shall | 113 |
indicate the distributive share of each of those pass-through | 114 |
entity investor's income taxable in this state in accordance with | 115 |
sections 5747.20 to 5747.231 of the Revised Code. Such | 116 |
pass-through entity investors for whom the pass-through entity | 117 |
elects to file a single return are not entitled to the exemption | 118 |
or credit provided for by sections 5747.02 and 5747.022 of the | 119 |
Revised Code; shall calculate the tax before business credits at | 120 |
the highest rate of tax set forth in section 5747.02 of the | 121 |
Revised Code for the taxable year for which the return is filed; | 122 |
and are entitled to only their distributive share of the business | 123 |
credits as defined in division (D)(2) of this section. A single | 124 |
check drawn by the pass-through entity shall accompany the return | 125 |
in full payment of the tax due, as shown on the single return, for | 126 |
such investors, other than investors who are persons subject to | 127 |
the tax imposed under section 5733.06 of the Revised Code. | 128 |
(c) Nothing in division (D) of this section precludes the tax | 139 |
commissioner from requiring such investors to file the return and | 140 |
make the payment of taxes and related interest, penalty, and | 141 |
interest penalty required by this section or section 5747.02, | 142 |
5747.09, or 5747.15 of the Revised Code. Nothing in division (D) | 143 |
of this section shall be construed to provide to such an investor | 144 |
or pass-through entity any additional deduction or credit, other | 145 |
than the credit provided by division (J) of this section, solely | 146 |
on account of the entity's filing a return in accordance with this | 147 |
section. Such a pass-through entity also shall make the filing and | 148 |
payment of estimated taxes on behalf of the pass-through entity | 149 |
investors other than an investor that is a person subject to the | 150 |
tax imposed under section 5733.06 of the Revised Code. | 151 |
(3) The election provided for under division (D) of this | 184 |
section applies only to the taxable year for which the election is | 185 |
made by the pass-through entity. Unless the tax commissioner | 186 |
provides otherwise, this election, once made, is binding and | 187 |
irrevocable for the taxable year for which the election is made. | 188 |
Nothing in this division shall be construed to provide for any | 189 |
deduction or credit that would not be allowable if a nonresident | 190 |
pass-through entity investor were to file an annual return. | 191 |
(4) If a pass-through entity makes the election provided for | 192 |
under division (D) of this section, the pass-through entity shall | 193 |
be liable for any additional taxes, interest, interest penalty, or | 194 |
penalties imposed by this chapter if the tax commissioner finds | 195 |
that the single return does not reflect the correct tax due by the | 196 |
pass-through entity investors covered by that return. Nothing in | 197 |
this division shall be construed to limit or alter the liability, | 198 |
if any, imposed on pass-through entity investors for unpaid or | 199 |
underpaid taxes, interest, interest penalty, or penalties as a | 200 |
result of the pass-through entity's making the election provided | 201 |
for under division (D) of this section. For the purposes of | 202 |
division (D) of this section, "correct tax due" means the tax that | 203 |
would have been paid by the pass-through entity had the single | 204 |
return been filed in a manner reflecting the tax commissioner's | 205 |
findings. Nothing in division (D) of this section shall be | 206 |
construed to make or hold a pass-through entity liable for tax | 207 |
attributable to a pass-through entity investor's income from a | 208 |
source other than the pass-through entity electing to file the | 209 |
single return. | 210 |
(E) If a husband and wife file a joint federal income tax | 211 |
return for a taxable year, they shall file a joint return under | 212 |
this section for that taxable year, and their liabilities are | 213 |
joint and several, but, if the federal income tax liability of | 214 |
either spouse is determined on a separate federal income tax | 215 |
return, they shall file separate returns under this section. | 216 |
If either spouse is not required to file a federal income tax | 217 |
return and either or both are required to file a return pursuant | 218 |
to this chapter, they may elect to file separate or joint returns, | 219 |
and, pursuant to that election, their liabilities are separate or | 220 |
joint and several. If a husband and wife file separate returns | 221 |
pursuant to this chapter, each must claim the taxpayer's own | 222 |
exemption, but not both, as authorized under section 5747.02 of | 223 |
the Revised Code on the taxpayer's own return. | 224 |
(G) Each return or notice required to be filed under this | 233 |
section shall be made and filed as required by section 5747.04 of | 234 |
the Revised Code, on or before the fifteenth day of April of each | 235 |
year, on forms that the tax commissioner shall prescribe, together | 236 |
with remittance made payable to the treasurer of state in the | 237 |
combined amount of the state and all school district income taxes | 238 |
shown to be due on the form, unless the combined amount shown to | 239 |
be due is one dollar or less, in which case that amount need not | 240 |
be remitted. | 241 |
Upon good cause shown, the tax commissioner may extend the | 242 |
period for filing any notice or return required to be filed under | 243 |
this section and may adopt rules relating to extensions. If the | 244 |
extension results in an extension of time for the payment of any | 245 |
state or school district income tax liability with respect to | 246 |
which the return is filed, the taxpayer shall pay at the time the | 247 |
tax liability is paid an amount of interest computed at the rate | 248 |
per annum prescribed by section 5703.47 of the Revised Code on | 249 |
that liability from the time that payment is due without extension | 250 |
to the time of actual payment. Except as provided in section | 251 |
5747.132 of the Revised Code, in addition to all other interest | 252 |
charges and penalties, all taxes imposed under this chapter or | 253 |
Chapter 5748. of the Revised Code and remaining unpaid after they | 254 |
become due, except combined amounts due of one dollar or less, | 255 |
bear interest at the rate per annum prescribed by section 5703.47 | 256 |
of the Revised Code until paid or until the day an assessment is | 257 |
issued under section 5747.13 of the Revised Code, whichever occurs | 258 |
first. | 259 |
(H) If any report, claim, statement, or other document | 268 |
required to be filed, or any payment required to be made, within a | 269 |
prescribed period or on or before a prescribed date under this | 270 |
chapter is delivered after that period or that date by United | 271 |
States mail to the agency, officer, or office with which the | 272 |
report, claim, statement, or other document is required to be | 273 |
filed, or to which the payment is required to be made, the date of | 274 |
the postmark stamped on the cover in which the report, claim, | 275 |
statement, or other document, or payment is mailed shall be deemed | 276 |
to be the date of delivery or the date of payment. | 277 |
(J) If, in accordance with division (D) of this section, a | 291 |
pass-through entity elects to file a single return and if any | 292 |
investor is required to file the return and make the payment of | 293 |
taxes required by this chapter on account of the investor's other | 294 |
income that is not included in a single return filed by a | 295 |
pass-through entity, the investor is entitled to a refundable | 296 |
credit equal to the investor's proportionate share of the tax paid | 297 |
by the pass-through entity on behalf of the investor. The investor | 298 |
shall claim the credit for the investor's taxable year in which or | 299 |
with which ends the taxable year of the pass-through entity. | 300 |
Nothing in this chapter shall be construed to allow any credit | 301 |
provided in this chapter to be claimed more than once. For the | 302 |
purposes of computing any interest, penalty, or interest penalty, | 303 |
the investor shall be deemed to have paid the refundable credit | 304 |
provided by this division on the day that the pass-through entity | 305 |
paid the estimated tax or the tax giving rise to the credit. | 306 |
(K) The tax commissioner shall ensure that each return | 307 |
required to be filed under this section includes a box that the | 308 |
taxpayer may check to authorize a paid tax preparer who prepared | 309 |
the return to communicate with the department of taxation about | 310 |
matters pertaining to the return. The return or instructions | 311 |
accompanying the return shall indicate that by checking the box | 312 |
the taxpayer authorizes the department of taxation to contact the | 313 |
preparer concerning questions that arise during the processing of | 314 |
the return and authorizes the preparer only to provide the | 315 |
department with information that is missing from the return, to | 316 |
contact the department for information about the processing of the | 317 |
return or the status of the taxpayer's refund or payments, and to | 318 |
respond to notices about mathematical errors, offsets, or return | 319 |
preparation that the taxpayer has received from the department and | 320 |
has shown to the preparer. | 321 |
(L) The tax commissioner shall permit individual taxpayers to | 322 |
instruct the department of taxation to cause any refund of | 323 |
overpaid taxes to be deposited directly into a checking account, | 324 |
savings account, or an individual retirement account or individual | 325 |
retirement annuity, or preexisting college savings plan or program | 326 |
account offered by the Ohio tuition trust authority under Chapter | 327 |
3334. of the Revised Code, as designated by the taxpayer, when the | 328 |
taxpayer files the annual return required by this section | 329 |
electronically. | 330 |
Sec. 5747.81. A taxpayer who qualifies for the credit | 333 |
authorized under section 3333.51 of the Revised Code is allowed a | 334 |
nonrefundable credit against the tax imposed by section 5747.02 | 335 |
of the Revised Code. The credit shall be claimed as provided in | 336 |
section 3333.51 of the Revised Code and in the order required | 337 |
under section 5747.98 of the Revised Code. The amount of credit | 338 |
claimed for a taxable year shall not exceed the tax otherwise due | 339 |
after allowing for all preceding credits in that order. If the | 340 |
amount of credit allowed for a taxable year exceeds the tax | 341 |
otherwise due, the excess may be carried forward to the next | 342 |
taxable year. Excess credit allowed in a taxable year shall be | 343 |
deducted from the balance carried forward to the ensuing taxable | 344 |
year. If a credit may not be claimed for a taxable year, excess | 345 |
credit carried forward from a previous year may not be claimed. | 346 |
(B) For any nonrefundable credit, except the refundable | 438 |
credits enumerated in this section and the credit granted under | 439 |
division (I) of section 5747.08 of the Revised Code, the amount of | 440 |
the credit for a taxable year shall not exceed the tax due after | 441 |
allowing for any other credit that precedes it in the order | 442 |
required under this section. Any excess amount of a particular | 443 |
credit may be carried forward if authorized under the section | 444 |
creating that credit. Nothing in this chapter shall be construed | 445 |
to allow a taxpayer to claim, directly or indirectly, a credit | 446 |
more than once for a taxable year. | 447 |
Section 3. Section 5747.08 of the Revised Code is presented | 450 |
in this act as a composite of the section as amended by both Sub. | 451 |
S.B. 155 and Am. Sub. S.B. 194 of the 128th General Assembly. The | 452 |
General Assembly, applying the principle stated in division (B) of | 453 |
section 1.52 of the Revised Code that amendments are to be | 454 |
harmonized if reasonably capable of simultaneous operation, finds | 455 |
that the composite is the resulting version of the section in | 456 |
effect prior to the effective date of the section as presented in | 457 |
this act. | 458 |