As Reported by the Senate Ways and Means and Economic Development Committee

129th General Assembly Regular Session 2011-2012

Sub. H. B. No. 58

Representative Beck 

Cosponsors: Representatives Adams, J., Boose, Blair, Derickson, Hackett, Hollington, Martin, Uecker, Amstutz, Stautberg, Letson, McClain, Adams, R., Anielski, Ashford, Baker, Balderson, Brenner, Bubp, Buchy, Burke, Butler, Carey, Carney, Coley, Combs, Damschroder, DeGeeter, Dovilla, Duffey, Fedor, Garland, Gonzales, Goodwin, Grossman, Hall, Hayes, Henne, Huffman, Johnson, Landis, Lundy, Maag, Mallory, McKenney, Mecklenborg, Milkovich, Newbold, O'Brien, Peterson, Phillips, Roegner, Rosenberger, Ruhl, Schuring, Sears, Slaby, Sprague, Stebelton, Thompson, Wachtmann, Young Speaker Batchelder 

Senators Schaffer, Patton 

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A BILL

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

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

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 to an eligible	87
business a nonrefundable creditthe following credits against the	88
tax imposed by section 5725.18, 5729.03, 5733.06, or 5747.02, or	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
and againstor, in the case of the tax levied by Chapter 5751.	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, or 5747.98, or 5751.98 of the Revised	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

Any unused portion of a tax credit may be carried forward for	142
not more than three additional years after the year for which the	143
credit is grantedIf a nonrefundable credit allowed under division	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

(1)(a) For 2010, thirteen million dollars;

341

(2)(b) For 2011 through 2023, the amount of the limit for the	342
preceding calendar year plus thirteen million dollars;	343

(3)(c) For 2024 and each year thereafter, one hundred	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 foregoing annual limitations in division (M) of this	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 also receives a nonrefundable tax credit under	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
495 of the 128th129th general assembly.	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 October 16, 2009December 15, 2010, and before the effective	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

(7)(8) The refundable credit under section 5725.19 of the	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 divisions (A)(6) and (7) of this section, the amount of the	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

(7)(8) The refundable credit under section 5729.08 of the	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 divisions (A)(6) and (7) of this section, the amount of the	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, in the order required under section	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, in	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 divisions (A)(31) to (36) of this section, the amount of the	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 sectionssection 122.17 or 122.171 of the Revised Code.	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 sectionssection 122.17 or 122.171 of the Revised Code.	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 creditrefundable credits	731
enumerated in division (A)(4) of this section, the amount of the	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