As Introduced

129th General Assembly Regular Session 2011-2012

H. B. No. 332

Representatives Stinziano, Grossman 

Cosponsors: Representatives Yuko, Okey, Garland, Antonio 

---

A BILL

To amend section 5747.98 and to enact section 5747.78

1

of the Revised Code to authorize a nonrefundable

2

income tax credit for the purchase or construction

3

of an accessible home or for the renovation of a

4

home to improve its accessibility.

5

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

Section 1.  That section 5747.98 be amended and section	6
5747.78 of the Revised Code be enacted to read as follows:	7

Sec. 5747.78.  (A)(1) A nonrefundable credit may be claimed	8
against the tax imposed by section 5747.02 of the Revised Code by	9
a taxpayer that renovates the taxpayer's existing residence,	10
provided that the renovation is designed to improve accessibility	11
and provide universal visitability in accordance with guidelines	12
established by the department of development. The amount of the	13
credit shall equal fifty per cent of the total cost of the	14
renovation, not to exceed one thousand dollars for the renovation	15
of each existing residence.	16

(2) A nonrefundable credit may be claimed against the tax	17
imposed by section 5747.02 of the Revised Code by a taxpayer that	18
purchases or constructs a new residence or by a contractor that	19
incurs costs in constructing a new residential structure, provided	20
that the new residence or residential structure includes designs	21
that will provide accessibility and universal visitability in	22
accordance with guidelines established by the department of	23
development. The amount of the credit shall equal the purchase	24
price of the new residence or the costs incurred in constructing	25
the new residence or residential structure, not to exceed two	26
thousand five hundred dollars for the purchase or construction of	27
each new residence or residential structure. As used in this	28
section, "purchase of a new residence" means a transaction	29
involving the first sale of a residence to a purchaser who intends	30
to reside in the residence.	31

(B) A taxpayer may not claim a credit allowed under this	32
section for the purchase, construction, or renovation of	33
residential rental property.	34

(C)(1) As used in this division:

35

(a) "Total annual credit limit" means the total amount of all	36
credits that may be authorized under this section for a calendar	37
year. The total annual credit limit shall equal three hundred	38
thousand dollars.	39

(b) "Transaction-specific credit limit" means the total	40
amount of all credits that may be authorized under either division	41
(A)(1) or (2) of this section for a calendar year. The	42
transaction-specific credit limit for credits authorized under	43
division (A)(1) of this section shall equal two hundred thousand	44
dollars. The transaction-specific credit limit for credits	45
authorized under division (A)(2) of this section shall equal one	46
hundred thousand dollars.	47

(2) Eligible taxpayers shall apply for a credit allowed under	48
this section by submitting an application to the department of	49
development. The department shall prescribe the form of the	50
application. Upon receipt of an application, the department shall	51
approve the application if each of the following apply:	52

(a) The total annual credit limit and the applicable	53
transaction-specific credit limit have not been reached for the	54
calendar year in which the application is received.	55

(b) The department has not previously approved a credit	56
application relating to the same residence.	57

(c) The credit application does not relate to a transaction	58
between a taxpayer and a member of the taxpayer's family or	59
between a pass-through entity and a person that holds, directly or	60
indirectly, an ownership interest in the entity. As used in this	61
division, "family" has the same meaning as in section 5747.011 of	62
the Revised Code.	63

(D) A taxpayer shall claim a credit authorized under division	64
(C) of this section in the order required under section 5747.98 of	65
the Revised Code. Any credit amount in excess of the tax due under	66
this chapter after allowing for any other nonrefundable credits	67
that precede the credit in the order specified under that section	68
may be carried forward for seven taxable years, but the amount of	69
the excess credit allowed in any such year shall be deducted from	70
the balance carried forward to the next year. If the taxpayer is a	71
direct or indirect investor in a pass-through entity that has	72
engaged in a construction project under this section, the taxpayer	73
may claim its proportionate or distributive share of the credit	74
allowed under this section.	75

Sec. 5747.98.  (A) To provide a uniform procedure for	76
calculating the amount of tax due under section 5747.02 of the	77
Revised Code, a taxpayer shall claim any credits to which the	78
taxpayer is entitled in the following order:	79

(1) The retirement income credit under division (B) of	80
section 5747.055 of the Revised Code;	81

(2) The senior citizen credit under division (C) of section	82
5747.05 of the Revised Code;	83

(3) The lump sum distribution credit under division (D) of	84
section 5747.05 of the Revised Code;	85

(4) The dependent care credit under section 5747.054 of the	86
Revised Code;	87

(5) The lump sum retirement income credit under division (C)	88
of section 5747.055 of the Revised Code;	89

(6) The lump sum retirement income credit under division (D)	90
of section 5747.055 of the Revised Code;	91

(7) The lump sum retirement income credit under division (E)	92
of section 5747.055 of the Revised Code;	93

(8) The low-income credit under section 5747.056 of the	94
Revised Code;	95

(9) The credit for displaced workers who pay for job training	96
under section 5747.27 of the Revised Code;	97

(10) The campaign contribution credit under section 5747.29	98
of the Revised Code;	99

(11) The twenty-dollar personal exemption credit under	100
section 5747.022 of the Revised Code;	101

(12) The joint filing credit under division (G) of section	102
5747.05 of the Revised Code;	103

(13) The nonresident credit under division (A) of section	104
5747.05 of the Revised Code;	105

(14) The credit for a resident's out-of-state income under	106
division (B) of section 5747.05 of the Revised Code;	107

(15) The credit for employers that enter into agreements with	108
child day-care centers under section 5747.34 of the Revised Code;	109

(16) The credit for employers that reimburse employee child	110
care expenses under section 5747.36 of the Revised Code;	111

(17) The credit for adoption of a minor child under section	112
5747.37 of the Revised Code;	113

(18) The credit for purchases of lights and reflectors under	114
section 5747.38 of the Revised Code;	115

(19) The nonrefundable job retention credit under division	116
(B) of section 5747.058 of the Revised Code;	117

(20) The credit for selling alternative fuel under section	118
5747.77 of the Revised Code;	119

(21) The second credit for purchases of new manufacturing	120
machinery and equipment and the credit for using Ohio coal under	121
section 5747.31 of the Revised Code;	122

(22) The job training credit under section 5747.39 of the	123
Revised Code;	124

(23) The enterprise zone credit under section 5709.66 of the	125
Revised Code;	126

(24) The credit for the eligible costs associated with a	127
voluntary action under section 5747.32 of the Revised Code;	128

(25) The credit for employers that establish on-site child	129
day-care centers under section 5747.35 of the Revised Code;	130

(26) The ethanol plant investment credit under section	131
5747.75 of the Revised Code;	132

(27) The credit for purchases of qualifying grape production	133
property under section 5747.28 of the Revised Code;	134

(28) The small business investment credit under section	135
5747.81 of the Revised Code;	136

(29) The credit for research and development and technology	137
transfer investors under section 5747.33 of the Revised Code;	138

(30) The enterprise zone credits under section 5709.65 of the	139
Revised Code;	140

(31) The research and development credit under section	141
5747.331 of the Revised Code;	142

(32) The credit for rehabilitating a historic building under	143
section 5747.76 of the Revised Code;	144

(33) The home accessibility credit under section 5747.78 of	145
the Revised Code;	146

(34) The refundable credit for rehabilitating a historic	147
building under section 5747.76 of the Revised Code;	148

(34)(35) The refundable jobs creation credit or job retention	149
credit under division (A) of section 5747.058 of the Revised Code;	150

(35)(36) The refundable credit for taxes paid by a qualifying	151
entity granted under section 5747.059 of the Revised Code;	152

(36)(37) The refundable credits for taxes paid by a	153
qualifying pass-through entity granted under division (J) of	154
section 5747.08 of the Revised Code;	155

(37)(38) The refundable credit for tax withheld under	156
division (B)(1) of section 5747.062 of the Revised Code;	157

(38)(39) The refundable credit for tax withheld under section	158
5747.063 of the Revised Code;	159

(39)(40) The refundable credit under section 5747.80 of the	160
Revised Code for losses on loans made to the Ohio venture capital	161
program under sections 150.01 to 150.10 of the Revised Code;	162

(40)(41) The refundable motion picture production credit	163
under section 5747.66 of the Revised Code.	164

(B) For any credit, except the refundable credits enumerated	165
in this section and the credit granted under division (I) of	166
section 5747.08 of the Revised Code, the amount of the credit for	167
a taxable year shall not exceed the tax due after allowing for any	168
other credit that precedes it in the order required under this	169
section. Any excess amount of a particular credit may be carried	170
forward if authorized under the section creating that credit.	171
Nothing in this chapter shall be construed to allow a taxpayer to	172
claim, directly or indirectly, a credit more than once for a	173
taxable year.	174

Section 2.  That existing section 5747.98 of the Revised Code	175
is hereby repealed.	176

Section 3.  The amendment or enactment by this act of	177
sections 5747.78 and 5747.98 of the Revised Code shall apply to	178
taxable years beginning on or after January 1, 2011.	179