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To amend sections 122.171, 718.151, 5701.11, 5725.98, | 1 |
5729.98, 5733.0610, 5733.98, 5747.058, 5747.98, | 2 |
5751.50, and 5751.98 of the Revised Code to | 3 |
expressly incorporate changes in the Internal | 4 |
Revenue Code since December 15, 2010, into Ohio | 5 |
law, to authorize a refundable job retention tax | 6 |
credit, to temporarily extend the look-back period | 7 |
from two years to three years for determining | 8 |
whether a state "on" indicator exists based on the | 9 |
total unemployment rate for purposes of state | 10 |
extended unemployment benefits, and to declare an | 11 |
emergency. | 12 |
Section 1. That sections 122.171, 718.151, 5701.11, 5725.98, | 13 |
5729.98, 5733.0610, 5733.98, 5747.058, 5747.98, 5751.50, and | 14 |
5751.98 of the Revised Code be amended to read as follows: | 15 |
Sec. 122.171. (A) As used in this section: | 16 |
(1) "Capital investment project" means a plan of investment | 17 |
at a project site for the acquisition, construction, renovation, | 18 |
or repair of buildings, machinery, or equipment, or for | 19 |
capitalized costs of basic research and new product development | 20 |
determined in accordance with generally accepted accounting | 21 |
principles, but does not include any of the following: | 22 |
(a) Payments made for the acquisition of personal property | 23 |
through operating leases; | 24 |
(b) Project costs paid before January 1, 2002; | 25 |
(c) Payments made to a related member as defined in section | 26 |
5733.042 of the Revised Code or to a consolidated elected taxpayer | 27 |
or a combined taxpayer as defined in section 5751.01 of the | 28 |
Revised Code. | 29 |
(2) "Eligible business" means a taxpayer and its related | 30 |
members with Ohio operations satisfying all of the following: | 31 |
(a) The taxpayer employs at least five hundred full-time | 32 |
equivalent employees at the time the tax credit authority grants | 33 |
the tax credit under this section; | 34 |
(b) The taxpayer makes or causes to be made payments for the | 35 |
capital investment project of either of the following: | 36 |
(i) If the taxpayer is engaged at the project site primarily | 37 |
as a manufacturer, at least fifty million dollars in the aggregate | 38 |
at the project site during a period of three consecutive calendar | 39 |
years, including the calendar year that includes a day of the | 40 |
taxpayer's taxable year or tax period with respect to which the | 41 |
credit is granted; | 42 |
(ii) If the taxpayer is engaged at the project site primarily | 43 |
in significant corporate administrative functions, as defined by | 44 |
the director of development by rule, at least twenty million | 45 |
dollars in the aggregate at the project site during a period of | 46 |
three consecutive calendar years including the calendar year that | 47 |
includes a day of the taxpayer's taxable year or tax period with | 48 |
respect to which the credit is granted. | 49 |
(c) The taxpayer had a capital investment project reviewed | 50 |
and approved by the tax credit authority as provided in divisions | 51 |
(C), (D), and (E) of this section. | 52 |
(3) "Full-time equivalent employees" means the quotient | 53 |
obtained by dividing the total number of hours for which employees | 54 |
were compensated for employment in the project by two thousand | 55 |
eighty. "Full-time equivalent employees" shall exclude hours that | 56 |
are counted for a credit under section 122.17 of the Revised Code. | 57 |
(4) "Income tax revenue" means the total amount withheld | 58 |
under section 5747.06 of the Revised Code by the taxpayer during | 59 |
the taxable year, or during the calendar year that includes the | 60 |
tax period, from the compensation of all employees employed in the | 61 |
project whose hours of compensation are included in calculating | 62 |
the number of full-time equivalent employees. | 63 |
(5) "Manufacturer" has the same meaning as in section | 64 |
5739.011 of the Revised Code. | 65 |
(6) "Project site" means an integrated complex of facilities | 66 |
in this state, as specified by the tax credit authority under this | 67 |
section, within a fifteen-mile radius where a taxpayer is | 68 |
primarily operating as an eligible business. | 69 |
(7) "Related member" has the same meaning as in section | 70 |
5733.042 of the Revised Code as that section existed on the | 71 |
effective date of its amendment by Am. Sub. H.B. 215 of the 122nd | 72 |
general assembly, September 29, 1997. | 73 |
(8) "Taxable year" includes, in the case of a domestic or | 74 |
foreign insurance company, the calendar year ending on the | 75 |
thirty-first day of December preceding the day the superintendent | 76 |
of insurance is required to certify to the treasurer of state | 77 |
under section 5725.20 or 5729.05 of the Revised Code the amount of | 78 |
taxes due from insurance companies. | 79 |
(B) The tax credit authority created under section 122.17 of | 80 |
the Revised Code may grant tax credits under this section for the | 81 |
purpose of fostering job retention in this state. Upon application | 82 |
by an eligible business and upon consideration of the | 83 |
recommendation of the director of budget and management, tax | 84 |
commissioner, the superintendent of insurance in the case of an | 85 |
insurance company, and director of development under division (C) | 86 |
of this section, the tax credit authority may grant | 87 |
88 | |
tax imposed by section 5725.18, 5729.03, 5733.06, | 89 |
5751.02 of the Revised Code: | 90 |
(1) A nonrefundable credit to an eligible business; | 91 |
(2) A refundable credit to an eligible business meeting the | 92 |
following conditions, provided that the director of budget and | 93 |
management, tax commissioner, superintendent of insurance in the | 94 |
case of an insurance company, and director of development have | 95 |
recommended the granting of the credit to the tax credit authority | 96 |
before July 1, 2011: | 97 |
(a) The business retains at least one thousand full-time | 98 |
equivalent employees at the project site. | 99 |
(b) The business makes or causes to be made payments for a | 100 |
capital investment project of at least twenty-five million dollars | 101 |
in the aggregate at the project site during a period of three | 102 |
consecutive calendar years, including the calendar year that | 103 |
includes a day of the business' taxable year or tax period with | 104 |
respect to which the credit is granted. | 105 |
(c) In 2010, the business received a written offer of | 106 |
financial incentives from another state of the United States that | 107 |
the director determines to be sufficient inducement for the | 108 |
business to relocate the business' operations from this state to | 109 |
that state. | 110 |
The credits authorized in divisions (B)(1) and (2) of this | 111 |
section may be granted for a period up to fifteen taxable years | 112 |
113 | |
section 5751.02 of the Revised Code, for a period of up to fifteen | 114 |
calendar years. The credit amount for a taxable year or a calendar | 115 |
year that includes the tax period for which a credit may be | 116 |
claimed equals the income tax revenue for that year multiplied by | 117 |
the percentage specified in the agreement with the tax credit | 118 |
authority. The percentage may not exceed seventy-five per cent. | 119 |
The credit shall be claimed in the order required under section | 120 |
5725.98, 5729.98, 5733.98, | 121 |
Code. In determining the percentage and term of the credit, the | 122 |
tax credit authority shall consider both the number of full-time | 123 |
equivalent employees and the value of the capital investment | 124 |
project. The credit amount may not be based on the income tax | 125 |
revenue for a calendar year before the calendar year in which the | 126 |
tax credit authority specifies the tax credit is to begin, and the | 127 |
credit shall be claimed only for the taxable years or tax periods | 128 |
specified in the eligible business' agreement with the tax credit | 129 |
authority. In no event shall the credit be claimed for a taxable | 130 |
year or tax period terminating before the date specified in the | 131 |
agreement. Any credit granted under this section against the tax | 132 |
imposed by section 5733.06 or 5747.02 of the Revised Code, to the | 133 |
extent not fully utilized against such tax for taxable years | 134 |
ending prior to 2008, shall automatically be converted without any | 135 |
action taken by the tax credit authority to a credit against the | 136 |
tax levied under Chapter 5751. of the Revised Code for tax periods | 137 |
beginning on or after July 1, 2008, provided that the person to | 138 |
whom the credit was granted is subject to such tax. The converted | 139 |
credit shall apply to those calendar years in which the remaining | 140 |
taxable years specified in the agreement end. | 141 |
| 142 |
143 | |
144 | |
(B)(1) of this section for a taxable year or tax period exceeds | 145 |
the taxpayer's tax liability for that year or period, the excess | 146 |
may be carried forward for the three succeeding taxable or | 147 |
calendar years, but the amount of any excess credit allowed in any | 148 |
taxable year or tax period shall be deducted from the balance | 149 |
carried forward to the succeeding year or period. | 150 |
(C) A taxpayer that proposes a capital investment project to | 151 |
retain jobs in this state may apply to the tax credit authority to | 152 |
enter into an agreement for a tax credit under this section. The | 153 |
director of development shall prescribe the form of the | 154 |
application. After receipt of an application, the authority shall | 155 |
forward copies of the application to the director of budget and | 156 |
management, the tax commissioner, the superintendent of insurance | 157 |
in the case of an insurance company, and the director of | 158 |
development, each of whom shall review the application to | 159 |
determine the economic impact the proposed project would have on | 160 |
the state and the affected political subdivisions and shall submit | 161 |
a summary of their determinations and recommendations to the | 162 |
authority. | 163 |
(D) Upon review and consideration of the determinations and | 164 |
recommendations described in division (C) of this section, the tax | 165 |
credit authority may enter into an agreement with the taxpayer for | 166 |
a credit under this section if the authority determines all of the | 167 |
following: | 168 |
(1) The taxpayer's capital investment project will result in | 169 |
the retention of employment in this state. | 170 |
(2) The taxpayer is economically sound and has the ability to | 171 |
complete the proposed capital investment project. | 172 |
(3) The taxpayer intends to and has the ability to maintain | 173 |
operations at the project site for at least the greater of (a) the | 174 |
term of the credit plus three years, or (b) seven years. | 175 |
(4) Receiving the credit is a major factor in the taxpayer's | 176 |
decision to begin, continue with, or complete the project. | 177 |
(E) An agreement under this section shall include all of the | 178 |
following: | 179 |
(1) A detailed description of the project that is the subject | 180 |
of the agreement, including the amount of the investment, the | 181 |
period over which the investment has been or is being made, the | 182 |
number of full-time equivalent employees at the project site, and | 183 |
the anticipated income tax revenue to be generated. | 184 |
(2) The term of the credit, the percentage of the tax credit, | 185 |
the maximum annual value of tax credits that may be allowed each | 186 |
year, and the first year for which the credit may be claimed. | 187 |
(3) A requirement that the taxpayer maintain operations at | 188 |
the project site for at least the greater of (a) the term of the | 189 |
credit plus three years, or (b) seven years. | 190 |
(4) A requirement that the taxpayer retain a specified number | 191 |
of full-time equivalent employees at the project site and within | 192 |
this state for the term of the credit, including a requirement | 193 |
that the taxpayer continue to employ at least five hundred | 194 |
full-time equivalent employees during the entire term of the | 195 |
agreement in the case of a credit granted under division (B)(1) of | 196 |
this section, and one thousand full-time equivalent employees in | 197 |
the case of a credit granted under division (B)(2) of this | 198 |
section. | 199 |
(5) A requirement that the taxpayer annually report to the | 200 |
director of development employment, tax withholding, capital | 201 |
investment, and other information the director needs to perform | 202 |
the director's duties under this section. | 203 |
(6) A requirement that the director of development annually | 204 |
review the annual reports of the taxpayer to verify the | 205 |
information reported under division (E)(5) of this section and | 206 |
compliance with the agreement. Upon verification, the director | 207 |
shall issue a certificate to the taxpayer stating that the | 208 |
information has been verified and identifying the amount of the | 209 |
credit for the taxable year or calendar year that includes the tax | 210 |
period. In determining the number of full-time equivalent | 211 |
employees, no position shall be counted that is filled by an | 212 |
employee who is included in the calculation of a tax credit under | 213 |
section 122.17 of the Revised Code. | 214 |
(7) A provision providing that the taxpayer may not relocate | 215 |
a substantial number of employment positions from elsewhere in | 216 |
this state to the project site unless the director of development | 217 |
determines that the taxpayer notified the legislative authority of | 218 |
the county, township, or municipal corporation from which the | 219 |
employment positions would be relocated. | 220 |
For purposes of this section, the movement of an employment | 221 |
position from one political subdivision to another political | 222 |
subdivision shall be considered a relocation of an employment | 223 |
position unless the movement is confined to the project site. The | 224 |
transfer of an employment position from one political subdivision | 225 |
to another political subdivision shall not be considered a | 226 |
relocation of an employment position if the employment position in | 227 |
the first political subdivision is replaced by another employment | 228 |
position. | 229 |
(8) A waiver by the taxpayer of any limitations periods | 230 |
relating to assessments or adjustments resulting from the | 231 |
taxpayer's failure to comply with the agreement. | 232 |
(F) If a taxpayer fails to meet or comply with any condition | 233 |
or requirement set forth in a tax credit agreement, the tax credit | 234 |
authority may amend the agreement to reduce the percentage or term | 235 |
of the credit. The reduction of the percentage or term may take | 236 |
effect in the current taxable or calendar year. | 237 |
(G) Financial statements and other information submitted to | 238 |
the department of development or the tax credit authority by an | 239 |
applicant for or recipient of a tax credit under this section, and | 240 |
any information taken for any purpose from such statements or | 241 |
information, are not public records subject to section 149.43 of | 242 |
the Revised Code. However, the chairperson of the authority may | 243 |
make use of the statements and other information for purposes of | 244 |
issuing public reports or in connection with court proceedings | 245 |
concerning tax credit agreements under this section. Upon the | 246 |
request of the tax commissioner, or the superintendent of | 247 |
insurance in the case of an insurance company, the chairperson of | 248 |
the authority shall provide to the commissioner or superintendent | 249 |
any statement or other information submitted by an applicant for | 250 |
or recipient of a tax credit in connection with the credit. The | 251 |
commissioner or superintendent shall preserve the confidentiality | 252 |
of the statement or other information. | 253 |
(H) A taxpayer claiming a tax credit under this section shall | 254 |
submit to the tax commissioner or, in the case of an insurance | 255 |
company, to the superintendent of insurance, a copy of the | 256 |
director of development's certificate of verification under | 257 |
division (E)(6) of this section with the taxpayer's tax report or | 258 |
return for the taxable year or for the calendar year that includes | 259 |
the tax period. Failure to submit a copy of the certificate with | 260 |
the report or return does not invalidate a claim for a credit if | 261 |
the taxpayer submits a copy of the certificate to the commissioner | 262 |
or superintendent within sixty days after the commissioner or | 263 |
superintendent requests it. | 264 |
(I) For the purposes of this section, a taxpayer may include | 265 |
a partnership, a corporation that has made an election under | 266 |
subchapter S of chapter one of subtitle A of the Internal Revenue | 267 |
Code, or any other business entity through which income flows as a | 268 |
distributive share to its owners. A partnership, S-corporation, or | 269 |
other such business entity may elect to pass the credit received | 270 |
under this section through to the persons to whom the income or | 271 |
profit of the partnership, S-corporation, or other entity is | 272 |
distributed. The election shall be made on the annual report | 273 |
required under division (E)(5) of this section. The election | 274 |
applies to and is irrevocable for the credit for which the report | 275 |
is submitted. If the election is made, the credit shall be | 276 |
apportioned among those persons in the same proportions as those | 277 |
in which the income or profit is distributed. | 278 |
(J) If the director of development determines that a taxpayer | 279 |
that received a tax credit under this section is not complying | 280 |
with the requirement under division (E)(3) of this section, the | 281 |
director shall notify the tax credit authority of the | 282 |
noncompliance. After receiving such a notice, and after giving the | 283 |
taxpayer an opportunity to explain the noncompliance, the | 284 |
authority may terminate the agreement and require the taxpayer to | 285 |
refund to the state all or a portion of the credit claimed in | 286 |
previous years, as follows: | 287 |
(1) If the taxpayer maintained operations at the project site | 288 |
for less than or equal to the term of the credit, an amount not to | 289 |
exceed one hundred per cent of the sum of any tax credits allowed | 290 |
and received under this section. | 291 |
(2) If the taxpayer maintained operations at the project site | 292 |
longer than the term of the credit, but less than the greater of | 293 |
(a) the term of the credit plus three years, or (b) seven years, | 294 |
the amount required to be refunded shall not exceed seventy-five | 295 |
per cent of the sum of any tax credits allowed and received under | 296 |
this section. | 297 |
In determining the portion of the credit to be refunded to | 298 |
this state, the authority shall consider the effect of market | 299 |
conditions on the taxpayer's project and whether the taxpayer | 300 |
continues to maintain other operations in this state. After making | 301 |
the determination, the authority shall certify the amount to be | 302 |
refunded to the tax commissioner or the superintendent of | 303 |
insurance. If the taxpayer is not an insurance company, the | 304 |
commissioner shall make an assessment for that amount against the | 305 |
taxpayer under Chapter 5733., 5747., or 5751. of the Revised Code. | 306 |
If the taxpayer is an insurance company, the superintendent of | 307 |
insurance shall make an assessment under section 5725.222 or | 308 |
5729.102 of the Revised Code. The time limitations on assessments | 309 |
under those chapters and sections do not apply to an assessment | 310 |
under this division, but the commissioner or superintendent shall | 311 |
make the assessment within one year after the date the authority | 312 |
certifies to the commissioner or superintendent the amount to be | 313 |
refunded. | 314 |
(K) The director of development, after consultation with the | 315 |
tax commissioner and the superintendent of insurance and in | 316 |
accordance with Chapter 119. of the Revised Code, shall adopt | 317 |
rules necessary to implement this section. The rules may provide | 318 |
for recipients of tax credits under this section to be charged | 319 |
fees to cover administrative costs of the tax credit program. The | 320 |
fees collected shall be credited to the tax incentive programs | 321 |
operating fund created in section 122.174 of the Revised Code. At | 322 |
the time the director gives public notice under division (A) of | 323 |
section 119.03 of the Revised Code of the adoption of the rules, | 324 |
the director shall submit copies of the proposed rules to the | 325 |
chairpersons of the standing committees on economic development in | 326 |
the senate and the house of representatives. | 327 |
(L) On or before the first day of August of each year, the | 328 |
director of development shall submit a report to the governor, the | 329 |
president of the senate, and the speaker of the house of | 330 |
representatives on the tax credit program under this section. The | 331 |
report shall include information on the number of agreements that | 332 |
were entered into under this section during the preceding calendar | 333 |
year, a description of the project that is the subject of each | 334 |
such agreement, and an update on the status of projects under | 335 |
agreements entered into before the preceding calendar year. | 336 |
(M)(1) The aggregate amount of tax credits issued under | 337 |
division (B)(1) of this section during any calendar year for | 338 |
capital investment projects reviewed and approved by the tax | 339 |
credit authority may not exceed the following amounts: | 340 |
| 341 |
| 342 |
preceding calendar year plus thirteen million dollars; | 343 |
| 344 |
ninety-five million dollars. | 345 |
(2) The aggregate amount of tax credits issued under division | 346 |
(B)(2) of this section during any calendar year for capital | 347 |
improvement projects reviewed and approved by the tax credit | 348 |
authority may not exceed eight million dollars. | 349 |
The | 350 |
section do not apply to credits for capital investment projects | 351 |
approved by the tax credit authority before July 1, 2009. | 352 |
Sec. 718.151. A municipal corporation, by ordinance, may | 353 |
grant a nonrefundable credit against its tax on income to a | 354 |
taxpayer that | 355 |
section 122.171 of the Revised Code and may grant a refundable | 356 |
credit against its tax on income to a taxpayer that receives a | 357 |
refundable tax credit under that section. If a credit is granted | 358 |
under this section, it shall be measured as a percentage of the | 359 |
income tax revenue the municipal corporation derives from the | 360 |
retained employees of the taxpayer, and shall be for a term not | 361 |
exceeding fifteen years. Before a municipal corporation passes an | 362 |
ordinance allowing such a credit, the municipal corporation and | 363 |
the taxpayer shall enter into an agreement specifying all the | 364 |
conditions of the credit. | 365 |
Sec. 5701.11. The effective date to which this section | 366 |
refers is the effective date of this section as amended by H.B. 58 | 367 |
368 |
(A)(1) Except as provided under division (A)(2) or (B) of | 369 |
this section, any reference in Title LVII of the Revised Code to | 370 |
the Internal Revenue Code, to the Internal Revenue Code "as | 371 |
amended," to other laws of the United States, or to other laws of | 372 |
the United States, "as amended," means the Internal Revenue Code | 373 |
or other laws of the United States as they exist on the effective | 374 |
date. | 375 |
(2) This section does not apply to any reference in Title | 376 |
LVII of the Revised Code to the Internal Revenue Code as of a date | 377 |
certain specifying the day, month, and year, or to other laws of | 378 |
the United States as of a date certain specifying the day, month, | 379 |
and year. | 380 |
(B)(1) For purposes of applying section 5733.04, 5745.01, or | 381 |
5747.01 of the Revised Code to a taxpayer's taxable year ending | 382 |
after | 383 |
date, a taxpayer may irrevocably elect to incorporate the | 384 |
provisions of the Internal Revenue Code or other laws of the | 385 |
United States that are in effect for federal income tax purposes | 386 |
for that taxable year if those provisions differ from the | 387 |
provisions that, under division (A) of this section, would | 388 |
otherwise apply. The filing by the taxpayer for that taxable year | 389 |
of a report or return that incorporates the provisions of the | 390 |
Internal Revenue Code or other laws of the United States | 391 |
applicable for federal income tax purposes for that taxable year, | 392 |
and that does not include any adjustments to reverse the effects | 393 |
of any differences between those provisions and the provisions | 394 |
that would otherwise apply, constitutes the making of an | 395 |
irrevocable election under this division for that taxable year. | 396 |
(2) Elections under prior versions of division (B)(1) of this | 397 |
section remain in effect for the taxable years to which they | 398 |
apply. | 399 |
Sec. 5725.98. (A) To provide a uniform procedure for | 400 |
calculating the amount of tax imposed by section 5725.18 of the | 401 |
Revised Code that is due under this chapter, a taxpayer shall | 402 |
claim any credits and offsets against tax liability to which it is | 403 |
entitled in the following order: | 404 |
(1) The credit for an insurance company or insurance company | 405 |
group under section 5729.031 of the Revised Code | 406 |
(2) The credit for eligible employee training costs under | 407 |
section 5725.31 of the Revised Code | 408 |
(3) The credit for purchasers of qualified low-income | 409 |
community investments under section 5725.33 of the Revised Code; | 410 |
(4) The nonrefundable job retention credit under division | 411 |
(B)(1) of section 122.171 of the Revised Code; | 412 |
(5) The offset of assessments by the Ohio life and health | 413 |
insurance guaranty association permitted by section 3956.20 of the | 414 |
Revised Code | 415 |
(6) The refundable credit for Ohio job retention under | 416 |
division (B)(2) of section 122.171 of the Revised Code; | 417 |
(7) The refundable credit for Ohio job creation under section | 418 |
5725.32 of the Revised Code | 419 |
| 420 |
Revised Code for losses on loans made under the Ohio venture | 421 |
capital program under sections 150.01 to 150.10 of the Revised | 422 |
Code. | 423 |
(B) For any credit except the refundable credits enumerated | 424 |
in | 425 |
credit for a taxable year shall not exceed the tax due after | 426 |
allowing for any other credit that precedes it in the order | 427 |
required under this section. Any excess amount of a particular | 428 |
credit may be carried forward if authorized under the section | 429 |
creating that credit. Nothing in this chapter shall be construed | 430 |
to allow a taxpayer to claim, directly or indirectly, a credit | 431 |
more than once for a taxable year. | 432 |
Sec. 5729.98. (A) To provide a uniform procedure for | 433 |
calculating the amount of tax due under this chapter, a taxpayer | 434 |
shall claim any credits and offsets against tax liability to which | 435 |
it is entitled in the following order: | 436 |
(1) The credit for an insurance company or insurance company | 437 |
group under section 5729.031 of the Revised Code | 438 |
(2) The credit for eligible employee training costs under | 439 |
section 5729.07 of the Revised Code | 440 |
(3) The credit for purchases of qualified low-income | 441 |
community investments under section 5729.16 of the Revised Code; | 442 |
(4) The nonrefundable job retention credit under division | 443 |
(B)(1) of section 122.171 of the Revised Code | 444 |
(5) The offset of assessments by the Ohio life and health | 445 |
insurance guaranty association against tax liability permitted by | 446 |
section 3956.20 of the Revised Code | 447 |
(6) The refundable credit for Ohio job retention under | 448 |
division (B)(2) of section 122.171 of the Revised Code; | 449 |
(7) The refundable credit for Ohio job creation under section | 450 |
5729.032 of the Revised Code | 451 |
| 452 |
Revised Code for losses on loans made under the Ohio venture | 453 |
capital program under sections 150.01 to 150.10 of the Revised | 454 |
Code. | 455 |
(B) For any credit except the refundable credits enumerated | 456 |
in | 457 |
credit for a taxable year shall not exceed the tax due after | 458 |
allowing for any other credit that precedes it in the order | 459 |
required under this section. Any excess amount of a particular | 460 |
credit may be carried forward if authorized under the section | 461 |
creating that credit. Nothing in this chapter shall be construed | 462 |
to allow a taxpayer to claim, directly or indirectly, a credit | 463 |
more than once for a taxable year. | 464 |
Sec. 5733.0610. (A) A refundable corporation franchise tax | 465 |
credit granted by the tax credit authority under section 122.17 or | 466 |
division (B)(2) of section 122.171 of the Revised Code may be | 467 |
claimed under this chapter | 468 |
5733.98 of the Revised Code. For purposes of making tax payments | 469 |
under this chapter, taxes equal to the amount of the refundable | 470 |
credit shall be considered to be paid to this state on the first | 471 |
day of the tax year. The refundable credit shall not be claimed | 472 |
for any tax years following the calendar year in which a | 473 |
relocation of employment positions occurs in violation of an | 474 |
agreement entered into under section 122.171 of the Revised Code. | 475 |
(B) A nonrefundable corporation franchise tax credit granted | 476 |
by the tax credit authority under division (B)(1) of section | 477 |
122.171 of the Revised Code may be claimed under this chapter | 478 |
the order required under section 5733.98 of the Revised Code. | 479 |
Sec. 5733.98. (A) To provide a uniform procedure for | 480 |
calculating the amount of tax imposed by section 5733.06 of the | 481 |
Revised Code that is due under this chapter, a taxpayer shall | 482 |
claim any credits to which it is entitled in the following order, | 483 |
except as otherwise provided in section 5733.058 of the Revised | 484 |
Code: | 485 |
(1) For tax year 2005, the credit for taxes paid by a | 486 |
qualifying pass-through entity allowed under section 5733.0611 of | 487 |
the Revised Code; | 488 |
(2) The credit allowed for financial institutions under | 489 |
section 5733.45 of the Revised Code; | 490 |
(3) The credit for qualifying affiliated groups under section | 491 |
5733.068 of the Revised Code; | 492 |
(4) The subsidiary corporation credit under section 5733.067 | 493 |
of the Revised Code; | 494 |
(5) The savings and loan assessment credit under section | 495 |
5733.063 of the Revised Code; | 496 |
(6) The credit for recycling and litter prevention donations | 497 |
under section 5733.064 of the Revised Code; | 498 |
(7) The credit for employers that enter into agreements with | 499 |
child day-care centers under section 5733.36 of the Revised Code; | 500 |
(8) The credit for employers that reimburse employee child | 501 |
care expenses under section 5733.38 of the Revised Code; | 502 |
(9) The credit for maintaining railroad active grade crossing | 503 |
warning devices under section 5733.43 of the Revised Code; | 504 |
(10) The credit for purchases of lights and reflectors under | 505 |
section 5733.44 of the Revised Code; | 506 |
(11) The nonrefundable job retention credit under division | 507 |
(B) of section 5733.0610 of the Revised Code; | 508 |
(12) The credit for tax years 2008 and 2009 for selling | 509 |
alternative fuel under section 5733.48 of the Revised Code; | 510 |
(13) The second credit for purchases of new manufacturing | 511 |
machinery and equipment under section 5733.33 of the Revised Code; | 512 |
(14) The job training credit under section 5733.42 of the | 513 |
Revised Code; | 514 |
(15) The credit for qualified research expenses under section | 515 |
5733.351 of the Revised Code; | 516 |
(16) The enterprise zone credit under section 5709.66 of the | 517 |
Revised Code; | 518 |
(17) The credit for the eligible costs associated with a | 519 |
voluntary action under section 5733.34 of the Revised Code; | 520 |
(18) The credit for employers that establish on-site child | 521 |
day-care centers under section 5733.37 of the Revised Code; | 522 |
(19) The ethanol plant investment credit under section | 523 |
5733.46 of the Revised Code; | 524 |
(20) The credit for purchases of qualifying grape production | 525 |
property under section 5733.32 of the Revised Code; | 526 |
(21) The export sales credit under section 5733.069 of the | 527 |
Revised Code; | 528 |
(22) The credit for research and development and technology | 529 |
transfer investors under section 5733.35 of the Revised Code; | 530 |
(23) The enterprise zone credits under section 5709.65 of the | 531 |
Revised Code; | 532 |
(24) The credit for using Ohio coal under section 5733.39 of | 533 |
the Revised Code; | 534 |
(25) The credit for purchases of qualified low-income | 535 |
community investments under section 5733.58 of the Revised Code; | 536 |
(26) The credit for small telephone companies under section | 537 |
5733.57 of the Revised Code; | 538 |
(27) The credit for eligible nonrecurring 9-1-1 charges under | 539 |
section 5733.55 of the Revised Code; | 540 |
(28) For tax year 2005, the credit for providing programs to | 541 |
aid the communicatively impaired under division (A) of section | 542 |
5733.56 of the Revised Code; | 543 |
(29) The research and development credit under section | 544 |
5733.352 of the Revised Code; | 545 |
(30) For tax years 2006 and subsequent tax years, the credit | 546 |
for taxes paid by a qualifying pass-through entity allowed under | 547 |
section 5733.0611 of the Revised Code; | 548 |
(31) The refundable credit for rehabilitating a historic | 549 |
building under section 5733.47 of the Revised Code; | 550 |
(32) The refundable jobs creation credit or job retention | 551 |
credit under division (A) of section 5733.0610 of the Revised | 552 |
Code; | 553 |
(33) The refundable credit for tax withheld under division | 554 |
(B)(2) of section 5747.062 of the Revised Code; | 555 |
(34) The refundable credit under section 5733.49 of the | 556 |
Revised Code for losses on loans made to the Ohio venture capital | 557 |
program under sections 150.01 to 150.10 of the Revised Code; | 558 |
(35) For tax years 2006, 2007, and 2008, the refundable | 559 |
credit allowable under division (B) of section 5733.56 of the | 560 |
Revised Code; | 561 |
(36) The refundable motion picture production credit under | 562 |
section 5733.59 of the Revised Code. | 563 |
(B) For any credit except the refundable credits enumerated | 564 |
in | 565 |
credit for a tax year shall not exceed the tax due after allowing | 566 |
for any other credit that precedes it in the order required under | 567 |
this section. Any excess amount of a particular credit may be | 568 |
carried forward if authorized under the section creating that | 569 |
credit. | 570 |
Sec. 5747.058. (A) A refundable income tax credit granted by | 571 |
the tax credit authority under section 122.17 or division (B)(2) | 572 |
of section 122.171 of the Revised Code may be claimed under this | 573 |
chapter, in the order required under section 5747.98 of the | 574 |
Revised Code. For purposes of making tax payments under this | 575 |
chapter, taxes equal to the amount of the refundable credit shall | 576 |
be considered to be paid to this state on the first day of the | 577 |
taxable year. The refundable credit shall not be claimed for any | 578 |
taxable years ending with or following the calendar year in which | 579 |
a relocation of employment positions occurs in violation of an | 580 |
agreement entered into under section 122.171 of the Revised Code. | 581 |
(B) A nonrefundable income tax credit granted by the tax | 582 |
credit authority under division (B)(1) of section 122.171 of the | 583 |
Revised Code may be claimed under this chapter, in the order | 584 |
required under section 5747.98 of the Revised Code. | 585 |
Sec. 5747.98. (A) To provide a uniform procedure for | 586 |
calculating the amount of tax due under section 5747.02 of the | 587 |
Revised Code, a taxpayer shall claim any credits to which the | 588 |
taxpayer is entitled in the following order: | 589 |
(1) The retirement income credit under division (B) of | 590 |
section 5747.055 of the Revised Code; | 591 |
(2) The senior citizen credit under division (C) of section | 592 |
5747.05 of the Revised Code; | 593 |
(3) The lump sum distribution credit under division (D) of | 594 |
section 5747.05 of the Revised Code; | 595 |
(4) The dependent care credit under section 5747.054 of the | 596 |
Revised Code; | 597 |
(5) The lump sum retirement income credit under division (C) | 598 |
of section 5747.055 of the Revised Code; | 599 |
(6) The lump sum retirement income credit under division (D) | 600 |
of section 5747.055 of the Revised Code; | 601 |
(7) The lump sum retirement income credit under division (E) | 602 |
of section 5747.055 of the Revised Code; | 603 |
(8) The low-income credit under section 5747.056 of the | 604 |
Revised Code; | 605 |
(9) The credit for displaced workers who pay for job training | 606 |
under section 5747.27 of the Revised Code; | 607 |
(10) The campaign contribution credit under section 5747.29 | 608 |
of the Revised Code; | 609 |
(11) The twenty-dollar personal exemption credit under | 610 |
section 5747.022 of the Revised Code; | 611 |
(12) The joint filing credit under division (G) of section | 612 |
5747.05 of the Revised Code; | 613 |
(13) The nonresident credit under division (A) of section | 614 |
5747.05 of the Revised Code; | 615 |
(14) The credit for a resident's out-of-state income under | 616 |
division (B) of section 5747.05 of the Revised Code; | 617 |
(15) The credit for employers that enter into agreements with | 618 |
child day-care centers under section 5747.34 of the Revised Code; | 619 |
(16) The credit for employers that reimburse employee child | 620 |
care expenses under section 5747.36 of the Revised Code; | 621 |
(17) The credit for adoption of a minor child under section | 622 |
5747.37 of the Revised Code; | 623 |
(18) The credit for purchases of lights and reflectors under | 624 |
section 5747.38 of the Revised Code; | 625 |
(19) The nonrefundable job retention credit under division | 626 |
(B) of section 5747.058 of the Revised Code; | 627 |
(20) The credit for selling alternative fuel under section | 628 |
5747.77 of the Revised Code; | 629 |
(21) The second credit for purchases of new manufacturing | 630 |
machinery and equipment and the credit for using Ohio coal under | 631 |
section 5747.31 of the Revised Code; | 632 |
(22) The job training credit under section 5747.39 of the | 633 |
Revised Code; | 634 |
(23) The enterprise zone credit under section 5709.66 of the | 635 |
Revised Code; | 636 |
(24) The credit for the eligible costs associated with a | 637 |
voluntary action under section 5747.32 of the Revised Code; | 638 |
(25) The credit for employers that establish on-site child | 639 |
day-care centers under section 5747.35 of the Revised Code; | 640 |
(26) The ethanol plant investment credit under section | 641 |
5747.75 of the Revised Code; | 642 |
(27) The credit for purchases of qualifying grape production | 643 |
property under section 5747.28 of the Revised Code; | 644 |
(28) The export sales credit under section 5747.057 of the | 645 |
Revised Code; | 646 |
(29) The credit for research and development and technology | 647 |
transfer investors under section 5747.33 of the Revised Code; | 648 |
(30) The enterprise zone credits under section 5709.65 of the | 649 |
Revised Code; | 650 |
(31) The research and development credit under section | 651 |
5747.331 of the Revised Code; | 652 |
(32) The credit for rehabilitating a historic building under | 653 |
section 5747.76 of the Revised Code; | 654 |
(33) The refundable credit for rehabilitating a historic | 655 |
building under section 5747.76 of the Revised Code; | 656 |
(34) The refundable jobs creation credit or job retention | 657 |
credit under division (A) of section 5747.058 of the Revised Code; | 658 |
(35) The refundable credit for taxes paid by a qualifying | 659 |
entity granted under section 5747.059 of the Revised Code; | 660 |
(36) The refundable credits for taxes paid by a qualifying | 661 |
pass-through entity granted under division (J) of section 5747.08 | 662 |
of the Revised Code; | 663 |
(37) The refundable credit for tax withheld under division | 664 |
(B)(1) of section 5747.062 of the Revised Code; | 665 |
(38) The refundable credit for tax withheld under section | 666 |
5747.063 of the Revised Code; | 667 |
(39) The refundable credit under section 5747.80 of the | 668 |
Revised Code for losses on loans made to the Ohio venture capital | 669 |
program under sections 150.01 to 150.10 of the Revised Code; | 670 |
(40) The refundable motion picture production credit under | 671 |
section 5747.66 of the Revised Code. | 672 |
(B) For any credit, except the refundable credits enumerated | 673 |
in this section and the credit granted under division (I) of | 674 |
section 5747.08 of the Revised Code, the amount of the credit for | 675 |
a taxable year shall not exceed the tax due after allowing for any | 676 |
other credit that precedes it in the order required under this | 677 |
section. Any excess amount of a particular credit may be carried | 678 |
forward if authorized under the section creating that credit. | 679 |
Nothing in this chapter shall be construed to allow a taxpayer to | 680 |
claim, directly or indirectly, a credit more than once for a | 681 |
taxable year. | 682 |
Sec. 5751.50. (A) For tax periods beginning on or after | 683 |
January 1, 2008, a refundable credit granted by the tax credit | 684 |
authority under section 122.17 or division (B)(2) of section | 685 |
122.171 of the Revised Code may be claimed under this chapter in | 686 |
the order required under section 5751.98 of the Revised Code. For | 687 |
purposes of making tax payments under this chapter, taxes equal to | 688 |
the amount of the refundable credit shall be considered to be paid | 689 |
to this state on the first day of the tax period. A credit claimed | 690 |
in calendar year 2008 may not be applied against the tax otherwise | 691 |
due for a tax period beginning before July 1, 2008. The refundable | 692 |
credit shall not be claimed against the tax otherwise due for any | 693 |
tax period beginning after the date on which a relocation of | 694 |
employment positions occurs in violation of an agreement entered | 695 |
into under | 696 |
(B) For tax periods beginning on or after January 1, 2008, a | 697 |
nonrefundable credit granted by the tax credit authority under | 698 |
division (B)(1) of section 122.171 of the Revised Code may be | 699 |
claimed under this chapter in the order required under section | 700 |
5751.98 of the Revised Code. A credit claimed in calendar year | 701 |
2008 may not be applied against the tax otherwise due under this | 702 |
chapter for a tax period beginning before July 1, 2008. The credit | 703 |
shall not be claimed against the tax otherwise due for any tax | 704 |
period beginning after the date on which a relocation of | 705 |
employment positions occurs in violation of an agreement entered | 706 |
into under | 707 |
No credit shall be allowed under this chapter if the credit was | 708 |
available against the tax imposed by section 5733.06 or 5747.02 of | 709 |
the Revised Code, except to the extent the credit was not applied | 710 |
against such tax. | 711 |
Sec. 5751.98. (A) To provide a uniform procedure for | 712 |
calculating the amount of tax due under this chapter, a taxpayer | 713 |
shall claim any credits to which it is entitled in the following | 714 |
order: | 715 |
(1) The nonrefundable jobs retention credit under division | 716 |
(B) of section 5751.50 of the Revised Code; | 717 |
(2) The nonrefundable credit for qualified research expenses | 718 |
under division (B) of section 5751.51 of the Revised Code; | 719 |
(3) The nonrefundable credit for a borrower's qualified | 720 |
research and development loan payments under division (B) of | 721 |
section 5751.52 of the Revised Code; | 722 |
(4) The nonrefundable credit for calendar years 2010 to 2029 | 723 |
for unused net operating losses under division (B) of section | 724 |
5751.53 of the Revised Code; | 725 |
(5) The refundable credit for calendar year 2030 for unused | 726 |
net operating losses under division (C) of section 5751.53 of the | 727 |
Revised Code; | 728 |
(6) The refundable jobs creation credit or job retention | 729 |
credit under division (A) of section 5751.50 of the Revised Code. | 730 |
(B) For any credit except the | 731 |
enumerated in | 732 |
credit for a tax period shall not exceed the tax due after | 733 |
allowing for any other credit that precedes it in the order | 734 |
required under this section. Any excess amount of a particular | 735 |
credit may be carried forward if authorized under the section | 736 |
creating the credit. | 737 |
Section 2. That existing sections 122.171, 718.151, 5701.11, | 738 |
5725.98, 5729.98, 5733.0610, 5733.98, 5747.058, 5747.98, 5751.50, | 739 |
and 5751.98 of the Revised Code are hereby repealed. | 740 |
Section 3. Notwithstanding any provision of section 4141.301 | 741 |
of the Revised Code to the contrary, with respect to compensation | 742 |
for weeks of unemployment beginning after December 17, 2010, and | 743 |
ending on or before December 31, 2011, the word "two" as used in | 744 |
divisions (A)(3)(a)(ii) and (A)(5) of section 4141.301 of the | 745 |
Revised Code shall be changed to "three." | 746 |
Section 4. This act is hereby declared to be an emergency | 747 |
measure necessary for the immediate preservation of the public | 748 |
peace, health, and safety. The reason for such necessity lies in | 749 |
the need to enable taxpayers to avoid making miscellaneous | 750 |
adjustments on their 2010 tax returns that increase tax | 751 |
liabilities and in the need, in these times of high unemployment, | 752 |
to provide continued assistance to those who have been struggling | 753 |
to find work in this difficult economic climate, while at the same | 754 |
time protecting the health and safety of the public. Therefore, | 755 |
this act shall go into immediate effect. | 756 |