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To amend sections 5733.98 and 5747.98 and to enact | 1 |
sections 5733.421 and 5747.391 of the Revised Code | 2 |
to create a tax credit for the employment of | 3 |
individuals who have been convicted of felonies. | 4 |
Section 1. That sections 5733.98 and 5747.98 be amended and | 5 |
sections 5733.421 and 5747.391 of the Revised Code be enacted to | 6 |
read as follows: | 7 |
Sec. 5733.421. (A) As used in this section: | 8 |
(1) "Qualified reforming felon" means an individual who: | 9 |
(a) Has been convicted of a felony under any statute of the | 10 |
United States or any state; | 11 |
(b) Was hired by a taxpayer within one year after the | 12 |
conviction or, if sentenced to a term of incarceration, was hired | 13 |
within one year after being released from incarceration; and | 14 |
(c) Is a member of a family that, in the six months | 15 |
immediately preceding the date of hiring, had an income that, on | 16 |
an annual basis, would be seventy per cent or less of the most | 17 |
recent lower living standard calculated by the federal bureau of | 18 |
labor statistics. | 19 |
(2) "Family" means an individual, an individual's spouse, and | 20 |
children. | 21 |
(3) "Wages" has the same meaning as in section 3306 of the | 22 |
Internal Revenue Code. | 23 |
(B)(1) Beginning in tax year 2011, a nonrefundable credit is | 24 |
allowed against the tax imposed by section 5733.06 of the Revised | 25 |
Code for the wages paid by a taxpayer to a qualified reforming | 26 |
felon who works at least one hundred twenty hours for the taxpayer | 27 |
during the taxpayer's taxable year. The amount of the credit shall | 28 |
be calculated as follows: | 29 |
(a) For each qualified reforming felon who works at least | 30 |
four hundred hours during the taxable year, the credit equals | 31 |
forty per cent of the wages paid to the qualified reforming felon, | 32 |
but shall not exceed two thousand four hundred dollars per | 33 |
qualified reforming felon. | 34 |
(b) For each qualified reforming felon who works less than | 35 |
four hundred hours but at least one hundred twenty hours during | 36 |
the taxable year, the credit equals twenty-five per cent of the | 37 |
wages paid to the qualified reforming felon, but shall not exceed | 38 |
one thousand five hundred dollars per qualified reforming felon. | 39 |
The credit shall be claimed in the order required under | 40 |
section 5733.98 of the Revised Code. The credit, to the extent it | 41 |
exceeds the taxpayer's tax liability for the tax year after | 42 |
allowance for any other credits that precede the credit under that | 43 |
section in that order, may be carried forward for the next five | 44 |
succeeding tax years, but the amount of any excess credit allowed | 45 |
in any such year shall be deducted from the balance carried | 46 |
forward to the succeeding year. | 47 |
(2) A taxpayer who received federally funded payments for | 48 |
on-the-job training of a qualified reforming felon may not claim | 49 |
the credit allowed under this section for any portion of the wages | 50 |
paid to that qualified reforming felon. | 51 |
(3) A taxpayer may not claim the credit allowed under this | 52 |
section for any portion of the wages paid to a qualified reforming | 53 |
felon for services that were the same as, or substantially similar | 54 |
to, services that, but for a strike or lockout, would have been | 55 |
performed by another employee. | 56 |
(4) If a qualified reforming felon's employment is terminated | 57 |
during the taxable year and the qualified reforming felon was | 58 |
employed by the taxpayer for less than twelve months, the taxpayer | 59 |
may not claim the full amount of the credit allowed under this | 60 |
section unless the qualified reforming felon voluntarily | 61 |
terminated employment; was unable to continue employment due to a | 62 |
disability or death; or was terminated for cause. If a qualified | 63 |
reforming felon's employment is terminated for any other reason, | 64 |
the amount of the credit to which the taxpayer is entitled under | 65 |
this section is reduced by a percentage equal to the percentage of | 66 |
the taxable year that the qualified reforming felon was not | 67 |
employed by the taxpayer. | 68 |
(C) All files, statements, returns, reports, papers, or | 69 |
documents of any kind relating to qualified reforming felons or | 70 |
their families are not public records under section 149.43 of the | 71 |
Revised Code. | 72 |
Sec. 5733.98. (A) To provide a uniform procedure for | 73 |
calculating the amount of tax imposed by section 5733.06 of the | 74 |
Revised Code that is due under this chapter, a taxpayer shall | 75 |
claim any credits to which it is entitled in the following order, | 76 |
except as otherwise provided in section 5733.058 of the Revised | 77 |
Code: | 78 |
(1) For tax year 2005, the credit for taxes paid by a | 79 |
qualifying pass-through entity allowed under section 5733.0611 of | 80 |
the Revised Code; | 81 |
(2) The credit allowed for financial institutions under | 82 |
section 5733.45 of the Revised Code; | 83 |
(3) The credit for qualifying affiliated groups under section | 84 |
5733.068 of the Revised Code; | 85 |
(4) The subsidiary corporation credit under section 5733.067 | 86 |
of the Revised Code; | 87 |
(5) The savings and loan assessment credit under section | 88 |
5733.063 of the Revised Code; | 89 |
(6) The credit for recycling and litter prevention donations | 90 |
under section 5733.064 of the Revised Code; | 91 |
(7) The credit for employers that enter into agreements with | 92 |
child day-care centers under section 5733.36 of the Revised Code; | 93 |
(8) The credit for employers that reimburse employee child | 94 |
care expenses under section 5733.38 of the Revised Code; | 95 |
(9) The credit for maintaining railroad active grade crossing | 96 |
warning devices under section 5733.43 of the Revised Code; | 97 |
(10) The credit for purchases of lights and reflectors under | 98 |
section 5733.44 of the Revised Code; | 99 |
(11) The job retention credit under division (B) of section | 100 |
5733.0610 of the Revised Code; | 101 |
(12) The credit for tax years 2008 and 2009 for selling | 102 |
alternative fuel under section 5733.48 of the Revised Code; | 103 |
(13) The second credit for purchases of new manufacturing | 104 |
machinery and equipment under section 5733.33 of the Revised Code; | 105 |
(14) The job training credit under section 5733.42 of the | 106 |
Revised Code; | 107 |
(15) The credit for qualified research expenses under section | 108 |
5733.351 of the Revised Code; | 109 |
(16) The enterprise zone credit under section 5709.66 of the | 110 |
Revised Code; | 111 |
(17) The credit for the eligible costs associated with a | 112 |
voluntary action under section 5733.34 of the Revised Code; | 113 |
(18) The credit for employers that establish on-site child | 114 |
day-care centers under section 5733.37 of the Revised Code; | 115 |
(19) The ethanol plant investment credit under section | 116 |
5733.46 of the Revised Code; | 117 |
(20) The credit for employers that employ qualified reforming | 118 |
felons under section 5733.421 of the Revised Code; | 119 |
(21) The credit for purchases of qualifying grape production | 120 |
property under section 5733.32 of the Revised Code; | 121 |
| 122 |
the Revised Code; | 123 |
| 124 |
technology transfer investors under section 5733.35 of the Revised | 125 |
Code; | 126 |
| 127 |
the Revised Code; | 128 |
| 129 |
of the Revised Code; | 130 |
| 131 |
community investments under section 5733.58 of the Revised Code; | 132 |
| 133 |
section 5733.57 of the Revised Code; | 134 |
| 135 |
under section 5733.55 of the Revised Code; | 136 |
| 137 |
to aid the communicatively impaired under division (A) of section | 138 |
5733.56 of the Revised Code; | 139 |
| 140 |
5733.352 of the Revised Code; | 141 |
| 142 |
credit for taxes paid by a qualifying pass-through entity allowed | 143 |
under section 5733.0611 of the Revised Code; | 144 |
| 145 |
building under section 5733.47 of the Revised Code; | 146 |
| 147 |
(A) of section 5733.0610 of the Revised Code; | 148 |
| 149 |
division (B)(2) of section 5747.062 of the Revised Code; | 150 |
| 151 |
Revised Code for losses on loans made to the Ohio venture capital | 152 |
program under sections 150.01 to 150.10 of the Revised Code; | 153 |
| 154 |
credit allowable under division (B) of section 5733.56 of the | 155 |
Revised Code; | 156 |
| 157 |
under section 5733.59 of the Revised Code. | 158 |
(B) For any credit except the credits enumerated in divisions | 159 |
(A) | 160 |
for a tax year shall not exceed the tax due after allowing for any | 161 |
other credit that precedes it in the order required under this | 162 |
section. Any excess amount of a particular credit may be carried | 163 |
forward if authorized under the section creating that credit. | 164 |
Sec. 5747.391. (A) As used in this section: | 165 |
(1) "Pass-through entity" has the same meaning as in section | 166 |
5733.04 of the Revised Code and includes a sole proprietorship. | 167 |
(2) "Qualified reforming felon" means an individual who: | 168 |
(a) Has been convicted of a felony under any statute of the | 169 |
United States or any state; | 170 |
(b) Was hired by a pass-through entity within one year after | 171 |
the conviction or, if sentenced to a term of incarceration, was | 172 |
hired within one year after being released from incarceration; and | 173 |
(c) Is a member of a family that, in the six months | 174 |
immediately preceding the date of hiring, had an income that, on | 175 |
an annual basis, would be seventy per cent or less of the most | 176 |
recent lower living standard calculated by the federal bureau of | 177 |
labor statistics. | 178 |
(3) "Family" means an individual, an individual's spouse, and | 179 |
children. | 180 |
(4) "Wages" has the same meaning as in section 3306 of the | 181 |
Internal Revenue Code. | 182 |
(B)(1) For taxable years beginning in 2011 or thereafter, a | 183 |
nonrefundable credit is allowed against the tax imposed by section | 184 |
5747.02 of the Revised Code for the wages paid by a pass-through | 185 |
entity to a qualified reforming felon who works at least one | 186 |
hundred twenty hours for the pass-through entity during the | 187 |
entity's taxable year ending in or with the taxpayer's taxable | 188 |
year. The amount of the credit shall be calculated as follows: | 189 |
(a) For each qualified reforming felon who works at least | 190 |
four hundred hours during the entity's taxable year, the credit | 191 |
equals forty per cent of the wages paid to the qualified reforming | 192 |
felon, but shall not exceed two thousand four hundred dollars per | 193 |
qualified reforming felon. | 194 |
(b) For each qualified reforming felon who works less than | 195 |
four hundred hours but at least one hundred twenty hours during | 196 |
the entity's taxable year, the credit equals twenty-five per cent | 197 |
of the wages paid to the qualified reforming felon, but shall not | 198 |
exceed one thousand five hundred dollars per qualified reforming | 199 |
felon. | 200 |
The amount of a taxpayer's credit is the taxpayer's | 201 |
proportionate share of the credit distributed by the pass-through | 202 |
entity. The credit shall be claimed in the order required under | 203 |
section 5747.98 of the Revised Code. The credit, to the extent it | 204 |
exceeds the taxpayer's tax liability for the taxable year after | 205 |
allowance for any other credits that precede the credit under that | 206 |
section in that order, may be carried forward for the next five | 207 |
succeeding taxable years, but the amount of any excess credit | 208 |
allowed in any such year shall be deducted from the balance | 209 |
carried forward to the succeeding year. | 210 |
(2) A taxpayer may not claim the credit allowed under this | 211 |
section for any portion of the wages paid to a qualified reforming | 212 |
felon for whom the pass-through entity received federally funded | 213 |
payments for on-the-job training. | 214 |
(3) A taxpayer may not claim the credit allowed under this | 215 |
section for any portion of the wages paid to a qualified reforming | 216 |
felon for services that were the same as, or substantially similar | 217 |
to, services that, but for a strike or lockout, would have been | 218 |
performed by another employee. | 219 |
(4) If a qualified reforming felon's employment is terminated | 220 |
during the pass-through entity's taxable year ending in or with | 221 |
the taxpayer's taxable year and the qualified reforming felon was | 222 |
employed by the pass-through entity for less than twelve months, a | 223 |
taxpayer may not claim the full amount of the credit allowed under | 224 |
this section unless the qualified reforming felon voluntarily | 225 |
terminated employment; was unable to continue employment due to a | 226 |
disability or death; or was terminated for cause. If a qualified | 227 |
reforming felon's employment is terminated for any other reason, | 228 |
the amount of the credit to which the taxpayer is entitled under | 229 |
this section is reduced by a percentage equal to the percentage of | 230 |
the taxable year that the qualified reforming felon was not | 231 |
employed by the pass-through entity. | 232 |
(C) All files, statements, returns, reports, papers, or | 233 |
documents of any kind relating to qualified reforming felons or | 234 |
their families are not public records under section 149.43 of the | 235 |
Revised Code. | 236 |
Sec. 5747.98. (A) To provide a uniform procedure for | 237 |
calculating the amount of tax due under section 5747.02 of the | 238 |
Revised Code, a taxpayer shall claim any credits to which the | 239 |
taxpayer is entitled in the following order: | 240 |
(1) The retirement income credit under division (B) of | 241 |
section 5747.055 of the Revised Code; | 242 |
(2) The senior citizen credit under division (C) of section | 243 |
5747.05 of the Revised Code; | 244 |
(3) The lump sum distribution credit under division (D) of | 245 |
section 5747.05 of the Revised Code; | 246 |
(4) The dependent care credit under section 5747.054 of the | 247 |
Revised Code; | 248 |
(5) The lump sum retirement income credit under division (C) | 249 |
of section 5747.055 of the Revised Code; | 250 |
(6) The lump sum retirement income credit under division (D) | 251 |
of section 5747.055 of the Revised Code; | 252 |
(7) The lump sum retirement income credit under division (E) | 253 |
of section 5747.055 of the Revised Code; | 254 |
(8) The low-income credit under section 5747.056 of the | 255 |
Revised Code; | 256 |
(9) The credit for displaced workers who pay for job training | 257 |
under section 5747.27 of the Revised Code; | 258 |
(10) The campaign contribution credit under section 5747.29 | 259 |
of the Revised Code; | 260 |
(11) The twenty-dollar personal exemption credit under | 261 |
section 5747.022 of the Revised Code; | 262 |
(12) The joint filing credit under division (G) of section | 263 |
5747.05 of the Revised Code; | 264 |
(13) The nonresident credit under division (A) of section | 265 |
5747.05 of the Revised Code; | 266 |
(14) The credit for a resident's out-of-state income under | 267 |
division (B) of section 5747.05 of the Revised Code; | 268 |
(15) The credit for employers that enter into agreements with | 269 |
child day-care centers under section 5747.34 of the Revised Code; | 270 |
(16) The credit for employers that reimburse employee child | 271 |
care expenses under section 5747.36 of the Revised Code; | 272 |
(17) The credit for adoption of a minor child under section | 273 |
5747.37 of the Revised Code; | 274 |
(18) The credit for purchases of lights and reflectors under | 275 |
section 5747.38 of the Revised Code; | 276 |
(19) The job retention credit under division (B) of section | 277 |
5747.058 of the Revised Code; | 278 |
(20) The credit for selling alternative fuel under section | 279 |
5747.77 of the Revised Code; | 280 |
(21) The second credit for purchases of new manufacturing | 281 |
machinery and equipment and the credit for using Ohio coal under | 282 |
section 5747.31 of the Revised Code; | 283 |
(22) The job training credit under section 5747.39 of the | 284 |
Revised Code; | 285 |
(23) The enterprise zone credit under section 5709.66 of the | 286 |
Revised Code; | 287 |
(24) The credit for the eligible costs associated with a | 288 |
voluntary action under section 5747.32 of the Revised Code; | 289 |
(25) The credit for employers that establish on-site child | 290 |
day-care centers under section 5747.35 of the Revised Code; | 291 |
(26) The ethanol plant investment credit under section | 292 |
5747.75 of the Revised Code; | 293 |
(27) The credit for employers that employ qualified reforming | 294 |
felons under section 5747.391 of the Revised Code; | 295 |
(28) The credit for purchases of qualifying grape production | 296 |
property under section 5747.28 of the Revised Code; | 297 |
| 298 |
the Revised Code; | 299 |
| 300 |
technology transfer investors under section 5747.33 of the Revised | 301 |
Code; | 302 |
| 303 |
the Revised Code; | 304 |
| 305 |
5747.331 of the Revised Code; | 306 |
| 307 |
under section 5747.76 of the Revised Code; | 308 |
| 309 |
building under section 5747.76 of the Revised Code; | 310 |
| 311 |
(A) of section 5747.058 of the Revised Code; | 312 |
| 313 |
entity granted under section 5747.059 of the Revised Code; | 314 |
| 315 |
qualifying pass-through entity granted under division (J) of | 316 |
section 5747.08 of the Revised Code; | 317 |
| 318 |
division (B)(1) of section 5747.062 of the Revised Code; | 319 |
| 320 |
5747.063 of the Revised Code; | 321 |
| 322 |
Revised Code for losses on loans made to the Ohio venture capital | 323 |
program under sections 150.01 to 150.10 of the Revised Code; | 324 |
| 325 |
under section 5747.66 of the Revised Code. | 326 |
(B) For any credit, except the refundable credits enumerated | 327 |
in this section and the credit granted under division (I) of | 328 |
section 5747.08 of the Revised Code, the amount of the credit for | 329 |
a taxable year shall not exceed the tax due after allowing for any | 330 |
other credit that precedes it in the order required under this | 331 |
section. Any excess amount of a particular credit may be carried | 332 |
forward if authorized under the section creating that credit. | 333 |
Nothing in this chapter shall be construed to allow a taxpayer to | 334 |
claim, directly or indirectly, a credit more than once for a | 335 |
taxable year. | 336 |
Section 2. That existing sections 5733.98 and 5747.98 of the | 337 |
Revised Code are hereby repealed. | 338 |