As Introduced

129th General Assembly Regular Session 2011-2012

S. B. No. 6

Senator Patton 

Cosponsors: Senators Niehaus, Stewart, Grendell, Bacon, Beagle 

---

A BILL

To amend sections 122.171, 718.151, 5725.98, 5729.98,

1

5733.0610, 5733.98, 5747.058, 5747.98, 5751.50,

2

and 5751.98 of the Revised Code to authorize a

3

refundable job retention tax credit.

4

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

Section 1. That sections 122.171, 718.151, 5725.98, 5729.98,	5
5733.0610, 5733.98, 5747.058, 5747.98, 5751.50, and 5751.98 of the	6
Revised Code be amended to read as follows:	7

Sec. 122.171. (A) As used in this section:

8

(1) "Capital investment project" means a plan of investment	9
at a project site for the acquisition, construction, renovation,	10
or repair of buildings, machinery, or equipment, or for	11
capitalized costs of basic research and new product development	12
determined in accordance with generally accepted accounting	13
principles, but does not include any of the following:	14

(a) Payments made for the acquisition of personal property	15
through operating leases;	16

(b) Project costs paid before January 1, 2002;

17

(c) Payments made to a related member as defined in section	18
5733.042 of the Revised Code or to a consolidated elected taxpayer	19
or a combined taxpayer as defined in section 5751.01 of the	20
Revised Code.	21

(2) "Eligible business" means a taxpayer and its related	22
members with Ohio operations satisfying all of the following:	23

(a) The taxpayer employs at least five hundred full-time	24
equivalent employees at the time the tax credit authority grants	25
the tax credit under this section;	26

(b) The taxpayer makes or causes to be made payments for the	27
capital investment project of either of the following:	28

(i) If the taxpayer is engaged at the project site primarily	29
as a manufacturer, at least fifty million dollars in the aggregate	30
at the project site during a period of three consecutive calendar	31
years, including the calendar year that includes a day of the	32
taxpayer's taxable year or tax period with respect to which the	33
credit is granted;	34

(ii) If the taxpayer is engaged at the project site primarily	35
in significant corporate administrative functions, as defined by	36
the director of development by rule, at least twenty million	37
dollars in the aggregate at the project site during a period of	38
three consecutive calendar years including the calendar year that	39
includes a day of the taxpayer's taxable year or tax period with	40
respect to which the credit is granted.	41

(c) The taxpayer had a capital investment project reviewed	42
and approved by the tax credit authority as provided in divisions	43
(C), (D), and (E) of this section.	44

(3) "Full-time equivalent employees" means the quotient	45
obtained by dividing the total number of hours for which employees	46
were compensated for employment in the project by two thousand	47
eighty. "Full-time equivalent employees" shall exclude hours that	48
are counted for a credit under section 122.17 of the Revised Code.	49

(4) "Income tax revenue" means the total amount withheld	50
under section 5747.06 of the Revised Code by the taxpayer during	51
the taxable year, or during the calendar year that includes the	52
tax period, from the compensation of all employees employed in the	53
project whose hours of compensation are included in calculating	54
the number of full-time equivalent employees.	55

(5) "Manufacturer" has the same meaning as in section	56
5739.011 of the Revised Code.	57

(6) "Project site" means an integrated complex of facilities	58
in this state, as specified by the tax credit authority under this	59
section, within a fifteen-mile radius where a taxpayer is	60
primarily operating as an eligible business.	61

(7) "Related member" has the same meaning as in section	62
5733.042 of the Revised Code as that section existed on the	63
effective date of its amendment by Am. Sub. H.B. 215 of the 122nd	64
general assembly, September 29, 1997.	65

(8) "Taxable year" includes, in the case of a domestic or	66
foreign insurance company, the calendar year ending on the	67
thirty-first day of December preceding the day the superintendent	68
of insurance is required to certify to the treasurer of state	69
under section 5725.20 or 5729.05 of the Revised Code the amount of	70
taxes due from insurance companies.	71

(B) TheFor the purpose of fostering job retention in this	72
state, the tax credit authority created under section 122.17 of	73
the Revised Code may grant taxthe following credits under this	74
section for the purpose of fostering job retention in this state.	75
Upon application by an eligible business and upon consideration of	76
the recommendation of the director of budget and management, tax	77
commissioner, the superintendent of insurance in the case of an	78
insurance company, and director of development under division (C)	79
of this section, the tax credit authority may grant to an eligible	80
business a nonrefundable credit against the tax imposed by section	81
5725.18, 5729.03, 5733.06, or 5747.02, or 5751.02 of the Revised	82
Code:	83

(1) A nonrefundable credit to an eligible business;

84

(2) A refundable credit to an eligible business meeting the	85
following conditions, provided the director of development has	86
recommended the granting of the credit to the tax credit authority	87
before July 1, 2011:	88

(a) The business retains at least one thousand full-time	89
equivalent employees at the project site.	90

(b) The business makes or causes to be made payments for a	91
capital investment project of at least twenty-five million dollars	92
in the aggregate at the project site during a period of three	93
consecutive calendar years, including the calendar year that	94
includes a day of the business' taxable year or tax period with	95
respect to which the credit is granted.	96

(c) In 2010, the business received a written offer of	97
financial incentives from another state of the United States that	98
the director determines to be sufficient inducement for the	99
business to relocate the business' operations from this state to	100
that state.	101

The credits authorized in divisions (B)(1) and (2) of this	102
section may be granted for a period up to fifteen taxable years	103
and againstor, in the case of the tax levied by Chapter 5751.	104
section 5751.02 of the Revised Code, for a period of up to fifteen	105
calendar years. The credit amount for a taxable year or a calendar	106
year that includes the tax period for which a credit may be	107
claimed equals the income tax revenue for that year multiplied by	108
the percentage specified in the agreement with the tax credit	109
authority. The percentage may not exceed seventy-five per cent.	110
The credit shall be claimed in the order required under section	111
5725.98, 5729.98, 5733.98, or 5747.98, or 5751.98 of the Revised	112
Code. In determining the percentage and term of the credit, the	113
tax credit authority shall consider both the number of full-time	114
equivalent employees and the value of the capital investment	115
project. The credit amount may not be based on the income tax	116
revenue for a calendar year before the calendar year in which the	117
tax credit authority specifies the tax credit is to begin, and the	118
credit shall be claimed only for the taxable years or tax periods	119
specified in the eligible business' agreement with the tax credit	120
authority. In no event shall the credit be claimed for a taxable	121
year or tax period terminating before the date specified in the	122
agreement. Any credit granted under this section against the tax	123
imposed by section 5733.06 or 5747.02 of the Revised Code, to the	124
extent not fully utilized against such tax for taxable years	125
ending prior to 2008, shall automatically be converted without any	126
action taken by the tax credit authority to a credit against the	127
tax levied under Chapter 5751. of the Revised Code for tax periods	128
beginning on or after July 1, 2008, provided that the person to	129
whom the credit was granted is subject to such tax. The converted	130
credit shall apply to those calendar years in which the remaining	131
taxable years specified in the agreement end.	132

Any unused portion of a tax credit may be carried forward for	133
not more than three additional years after the year for which the	134
credit is grantedIf a credit allowed for a taxable year or tax	135
period exceeds the taxpayer's tax liability for that year or	136
period, the excess may be carried forward for the three succeeding	137
taxable or calendar years, but the amount of any excess credit	138
allowed in any taxable year or tax period shall be deducted from	139
the balance carried forward to the succeeding year or period.	140

(C) A taxpayer that proposes a capital investment project to	141
retain jobs in this state may apply to the tax credit authority to	142
enter into an agreement for a tax credit under this section. The	143
director of development shall prescribe the form of the	144
application. After receipt of an application, the authority shall	145
forward copies of the application to the director of budget and	146
management, the tax commissioner, the superintendent of insurance	147
in the case of an insurance company, and the director of	148
development, each of whom shall review the application to	149
determine the economic impact the proposed project would have on	150
the state and the affected political subdivisions and shall submit	151
a summary of their determinations and recommendations to the	152
authority.	153

(D) Upon review and consideration of the determinations and	154
recommendations described in division (C) of this section, the tax	155
credit authority may enter into an agreement with the taxpayer for	156
a credit under this section if the authority determines all of the	157
following:	158

(1) The taxpayer's capital investment project will result in	159
the retention of employment in this state.	160

(2) The taxpayer is economically sound and has the ability to	161
complete the proposed capital investment project.	162

(3) The taxpayer intends to and has the ability to maintain	163
operations at the project site for at least the greater of (a) the	164
term of the credit plus three years, or (b) seven years.	165

(4) Receiving the credit is a major factor in the taxpayer's	166
decision to begin, continue with, or complete the project.	167

(E) An agreement under this section shall include all of the	168
following:	169

(1) A detailed description of the project that is the subject	170
of the agreement, including the amount of the investment, the	171
period over which the investment has been or is being made, the	172
number of full-time equivalent employees at the project site, and	173
the anticipated income tax revenue to be generated.	174

(2) The term of the credit, the percentage of the tax credit,	175
the maximum annual value of tax credits that may be allowed each	176
year, and the first year for which the credit may be claimed.	177

(3) A requirement that the taxpayer maintain operations at	178
the project site for at least the greater of (a) the term of the	179
credit plus three years, or (b) seven years.	180

(4) A requirement that the taxpayer retain a specified number	181
of full-time equivalent employees at the project site and within	182
this state for the term of the credit, including a requirement	183
that the taxpayer continue to employ at least five hundred	184
full-time equivalent employees during the entire term of the	185
agreement in the case of a credit granted under division (B)(1) of	186
this section, and one thousand full-time equivalent employees in	187
the case of a credit granted under division (B)(2) of this	188
section.	189

(5) A requirement that the taxpayer annually report to the	190
director of development employment, tax withholding, capital	191
investment, and other information the director needs to perform	192
the director's duties under this section.	193

(6) A requirement that the director of development annually	194
review the annual reports of the taxpayer to verify the	195
information reported under division (E)(5) of this section and	196
compliance with the agreement. Upon verification, the director	197
shall issue a certificate to the taxpayer stating that the	198
information has been verified and identifying the amount of the	199
credit for the taxable year or calendar year that includes the tax	200
period. In determining the number of full-time equivalent	201
employees, no position shall be counted that is filled by an	202
employee who is included in the calculation of a tax credit under	203
section 122.17 of the Revised Code.	204

(7) A provision providing that the taxpayer may not relocate	205
a substantial number of employment positions from elsewhere in	206
this state to the project site unless the director of development	207
determines that the taxpayer notified the legislative authority of	208
the county, township, or municipal corporation from which the	209
employment positions would be relocated.	210

For purposes of this section, the movement of an employment	211
position from one political subdivision to another political	212
subdivision shall be considered a relocation of an employment	213
position unless the movement is confined to the project site. The	214
transfer of an employment position from one political subdivision	215
to another political subdivision shall not be considered a	216
relocation of an employment position if the employment position in	217
the first political subdivision is replaced by another employment	218
position.	219

(8) A waiver by the taxpayer of any limitations periods	220
relating to assessments or adjustments resulting from the	221
taxpayer's failure to comply with the agreement.	222

(F) If a taxpayer fails to meet or comply with any condition	223
or requirement set forth in a tax credit agreement, the tax credit	224
authority may amend the agreement to reduce the percentage or term	225
of the credit. The reduction of the percentage or term may take	226
effect in the current taxable or calendar year.	227

(G) Financial statements and other information submitted to	228
the department of development or the tax credit authority by an	229
applicant for or recipient of a tax credit under this section, and	230
any information taken for any purpose from such statements or	231
information, are not public records subject to section 149.43 of	232
the Revised Code. However, the chairperson of the authority may	233
make use of the statements and other information for purposes of	234
issuing public reports or in connection with court proceedings	235
concerning tax credit agreements under this section. Upon the	236
request of the tax commissioner, or the superintendent of	237
insurance in the case of an insurance company, the chairperson of	238
the authority shall provide to the commissioner or superintendent	239
any statement or other information submitted by an applicant for	240
or recipient of a tax credit in connection with the credit. The	241
commissioner or superintendent shall preserve the confidentiality	242
of the statement or other information.	243

(H) A taxpayer claiming a tax credit under this section shall	244
submit to the tax commissioner or, in the case of an insurance	245
company, to the superintendent of insurance, a copy of the	246
director of development's certificate of verification under	247
division (E)(6) of this section with the taxpayer's tax report or	248
return for the taxable year or for the calendar year that includes	249
the tax period. Failure to submit a copy of the certificate with	250
the report or return does not invalidate a claim for a credit if	251
the taxpayer submits a copy of the certificate to the commissioner	252
or superintendent within sixty days after the commissioner or	253
superintendent requests it.	254

(I) For the purposes of this section, a taxpayer may include	255
a partnership, a corporation that has made an election under	256
subchapter S of chapter one of subtitle A of the Internal Revenue	257
Code, or any other business entity through which income flows as a	258
distributive share to its owners. A partnership, S-corporation, or	259
other such business entity may elect to pass the credit received	260
under this section through to the persons to whom the income or	261
profit of the partnership, S-corporation, or other entity is	262
distributed. The election shall be made on the annual report	263
required under division (E)(5) of this section. The election	264
applies to and is irrevocable for the credit for which the report	265
is submitted. If the election is made, the credit shall be	266
apportioned among those persons in the same proportions as those	267
in which the income or profit is distributed.	268

(J) If the director of development determines that a taxpayer	269
that received a tax credit under this section is not complying	270
with the requirement under division (E)(3) of this section, the	271
director shall notify the tax credit authority of the	272
noncompliance. After receiving such a notice, and after giving the	273
taxpayer an opportunity to explain the noncompliance, the	274
authority may terminate the agreement and require the taxpayer to	275
refund to the state all or a portion of the credit claimed in	276
previous years, as follows:	277

(1) If the taxpayer maintained operations at the project site	278
for less than or equal to the term of the credit, an amount not to	279
exceed one hundred per cent of the sum of any tax credits allowed	280
and received under this section.	281

(2) If the taxpayer maintained operations at the project site	282
longer than the term of the credit, but less than the greater of	283
(a) the term of the credit plus three years, or (b) seven years,	284
the amount required to be refunded shall not exceed seventy-five	285
per cent of the sum of any tax credits allowed and received under	286
this section.	287

In determining the portion of the credit to be refunded to	288
this state, the authority shall consider the effect of market	289
conditions on the taxpayer's project and whether the taxpayer	290
continues to maintain other operations in this state. After making	291
the determination, the authority shall certify the amount to be	292
refunded to the tax commissioner or the superintendent of	293
insurance. If the taxpayer is not an insurance company, the	294
commissioner shall make an assessment for that amount against the	295
taxpayer under Chapter 5733., 5747., or 5751. of the Revised Code.	296
If the taxpayer is an insurance company, the superintendent of	297
insurance shall make an assessment under section 5725.222 or	298
5729.102 of the Revised Code. The time limitations on assessments	299
under those chapters and sections do not apply to an assessment	300
under this division, but the commissioner or superintendent shall	301
make the assessment within one year after the date the authority	302
certifies to the commissioner or superintendent the amount to be	303
refunded.	304

(K) The director of development, after consultation with the	305
tax commissioner and the superintendent of insurance and in	306
accordance with Chapter 119. of the Revised Code, shall adopt	307
rules necessary to implement this section. The rules may provide	308
for recipients of tax credits under this section to be charged	309
fees to cover administrative costs of the tax credit program. The	310
fees collected shall be credited to the tax incentive programs	311
operating fund created in section 122.174 of the Revised Code. At	312
the time the director gives public notice under division (A) of	313
section 119.03 of the Revised Code of the adoption of the rules,	314
the director shall submit copies of the proposed rules to the	315
chairpersons of the standing committees on economic development in	316
the senate and the house of representatives.	317

(L) On or before the first day of August of each year, the	318
director of development shall submit a report to the governor, the	319
president of the senate, and the speaker of the house of	320
representatives on the tax credit program under this section. The	321
report shall include information on the number of agreements that	322
were entered into under this section during the preceding calendar	323
year, a description of the project that is the subject of each	324
such agreement, and an update on the status of projects under	325
agreements entered into before the preceding calendar year.	326

(M)(1) The aggregate amount of tax credits issued under	327
division (B)(1) of this section during any calendar year for	328
capital investment projects reviewed and approved by the tax	329
credit authority may not exceed the following amounts:	330

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

331

(2)(b) For 2011 through 2023, the amount of the limit for the	332
preceding calendar year plus thirteen million dollars;	333

(3)(c) For 2024 and each year thereafter, one hundred	334
ninety-five million dollars.	335

(2) The aggregate amount of tax credits issued under division	336
(B)(2) of this section during any calendar year for capital	337
improvement projects reviewed and approved by the tax credit	338
authority may not exceed six million dollars.	339

The foregoing annual limitations in division (M) of this	340
section do not apply to credits for capital investment projects	341
approved by the tax credit authority before July 1, 2009.	342

Sec. 718.151. A municipal corporation, by ordinance, may	343
grant a nonrefundable credit against its tax on income to a	344
taxpayer that also receives a nonrefundable tax credit under	345
section 122.171 of the Revised Code and may grant a refundable	346
credit against its tax on income to a taxpayer that receives a	347
refundable tax credit under that section. If a credit is granted	348
under this section, it shall be measured as a percentage of the	349
income tax revenue the municipal corporation derives from the	350
retained employees of the taxpayer, and shall be for a term not	351
exceeding fifteen years. Before a municipal corporation passes an	352
ordinance allowing such a credit, the municipal corporation and	353
the taxpayer shall enter into an agreement specifying all the	354
conditions of the credit.	355

Sec. 5725.98. (A) To provide a uniform procedure for	356
calculating the amount of tax imposed by section 5725.18 of the	357
Revised Code that is due under this chapter, a taxpayer shall	358
claim any credits and offsets against tax liability to which it is	359
entitled in the following order:	360

(1) The credit for an insurance company or insurance company	361
group under section 5729.031 of the Revised Code.;	362

(2) The credit for eligible employee training costs under	363
section 5725.31 of the Revised Code.;	364

(3) The credit for purchasers of qualified low-income	365
community investments under section 5725.33 of the Revised Code;	366

(4) The nonrefundable job retention credit under division	367
(B)(1) of section 122.171 of the Revised Code;	368

(5) The offset of assessments by the Ohio life and health	369
insurance guaranty association permitted by section 3956.20 of the	370
Revised Code.;	371

(6) The refundable credit for Ohio job retention under	372
division (B)(2) of section 122.171 of the Revised Code;	373

(7) The refundable credit for Ohio job creation under section	374
5725.32 of the Revised Code.;	375

(7)(8) The refundable credit under section 5725.19 of the	376
Revised Code for losses on loans made under the Ohio venture	377
capital program under sections 150.01 to 150.10 of the Revised	378
Code.	379

(B) For any credit except the refundable credits enumerated	380
in divisions (A)(6) and (7) of this section, the amount of the	381
credit for a taxable year shall not exceed the tax due after	382
allowing for any other credit that precedes it in the order	383
required under this section. Any excess amount of a particular	384
credit may be carried forward if authorized under the section	385
creating that credit. Nothing in this chapter shall be construed	386
to allow a taxpayer to claim, directly or indirectly, a credit	387
more than once for a taxable year.	388

Sec. 5729.98. (A) To provide a uniform procedure for	389
calculating the amount of tax due under this chapter, a taxpayer	390
shall claim any credits and offsets against tax liability to which	391
it is entitled in the following order:	392

(1) The credit for an insurance company or insurance company	393
group under section 5729.031 of the Revised Code.;	394

(2) The credit for eligible employee training costs under	395
section 5729.07 of the Revised Code.;	396

(3) The credit for purchases of qualified low-income	397
community investments under section 5729.16 of the Revised Code;	398

(4) The nonrefundable job retention credit under division	399
(B)(1) of section 122.171 of the Revised Code.;	400

(5) The offset of assessments by the Ohio life and health	401
insurance guaranty association against tax liability permitted by	402
section 3956.20 of the Revised Code.;	403

(6) The refundable credit for Ohio job retention under	404
division (B)(2) of section 122.171 of the Revised Code;	405

(7) The refundable credit for Ohio job creation under section	406
5729.032 of the Revised Code.;	407

(7)(8) The refundable credit under section 5729.08 of the	408
Revised Code for losses on loans made under the Ohio venture	409
capital program under sections 150.01 to 150.10 of the Revised	410
Code.	411

(B) For any credit except the refundable credits enumerated	412
in divisions (A)(6) and (7) of this section, the amount of the	413
credit for a taxable year shall not exceed the tax due after	414
allowing for any other credit that precedes it in the order	415
required under this section. Any excess amount of a particular	416
credit may be carried forward if authorized under the section	417
creating that credit. Nothing in this chapter shall be construed	418
to allow a taxpayer to claim, directly or indirectly, a credit	419
more than once for a taxable year.	420

Sec. 5733.0610.  (A) A refundable corporation franchise tax	421
credit granted by the tax credit authority under section 122.17 or	422
division (B)(2) of section 122.171 of the Revised Code may be	423
claimed under this chapter, in the order required under section	424
5733.98 of the Revised Code. For purposes of making tax payments	425
under this chapter, taxes equal to the amount of the refundable	426
credit shall be considered to be paid to this state on the first	427
day of the tax year. The refundable credit shall not be claimed	428
for any tax years following the calendar year in which a	429
relocation of employment positions occurs in violation of an	430
agreement entered into under section 122.171 of the Revised Code.	431

(B) A nonrefundable corporation franchise tax credit granted	432
by the tax credit authority under division (B)(1) of section	433
122.171 of the Revised Code may be claimed under this chapter, in	434
the order required under section 5733.98 of the Revised Code.	435

Sec. 5733.98.  (A) To provide a uniform procedure for	436
calculating the amount of tax imposed by section 5733.06 of the	437
Revised Code that is due under this chapter, a taxpayer shall	438
claim any credits to which it is entitled in the following order,	439
except as otherwise provided in section 5733.058 of the Revised	440
Code:	441

(1) For tax year 2005, the credit for taxes paid by a	442
qualifying pass-through entity allowed under section 5733.0611 of	443
the Revised Code;	444

(2) The credit allowed for financial institutions under	445
section 5733.45 of the Revised Code;	446

(3) The credit for qualifying affiliated groups under section	447
5733.068 of the Revised Code;	448

(4) The subsidiary corporation credit under section 5733.067	449
of the Revised Code;	450

(5) The savings and loan assessment credit under section	451
5733.063 of the Revised Code;	452

(6) The credit for recycling and litter prevention donations	453
under section 5733.064 of the Revised Code;	454

(7) The credit for employers that enter into agreements with	455
child day-care centers under section 5733.36 of the Revised Code;	456

(8) The credit for employers that reimburse employee child	457
care expenses under section 5733.38 of the Revised Code;	458

(9) The credit for maintaining railroad active grade crossing	459
warning devices under section 5733.43 of the Revised Code;	460

(10) The credit for purchases of lights and reflectors under	461
section 5733.44 of the Revised Code;	462

(11) The nonrefundable job retention credit under division	463
(B) of section 5733.0610 of the Revised Code;	464

(12) The credit for tax years 2008 and 2009 for selling	465
alternative fuel under section 5733.48 of the Revised Code;	466

(13) The second credit for purchases of new manufacturing	467
machinery and equipment under section 5733.33 of the Revised Code;	468

(14) The job training credit under section 5733.42 of the	469
Revised Code;	470

(15) The credit for qualified research expenses under section	471
5733.351 of the Revised Code;	472

(16) The enterprise zone credit under section 5709.66 of the	473
Revised Code;	474

(17) The credit for the eligible costs associated with a	475
voluntary action under section 5733.34 of the Revised Code;	476

(18) The credit for employers that establish on-site child	477
day-care centers under section 5733.37 of the Revised Code;	478

(19) The ethanol plant investment credit under section	479
5733.46 of the Revised Code;	480

(20) The credit for purchases of qualifying grape production	481
property under section 5733.32 of the Revised Code;	482

(21) The export sales credit under section 5733.069 of the	483
Revised Code;	484

(22) The credit for research and development and technology	485
transfer investors under section 5733.35 of the Revised Code;	486

(23) The enterprise zone credits under section 5709.65 of the	487
Revised Code;	488

(24) The credit for using Ohio coal under section 5733.39 of	489
the Revised Code;	490

(25) The credit for purchases of qualified low-income	491
community investments under section 5733.58 of the Revised Code;	492

(26) The credit for small telephone companies under section	493
5733.57 of the Revised Code;	494

(27) The credit for eligible nonrecurring 9-1-1 charges under	495
section 5733.55 of the Revised Code;	496

(28) For tax year 2005, the credit for providing programs to	497
aid the communicatively impaired under division (A) of section	498
5733.56 of the Revised Code;	499

(29) The research and development credit under section	500
5733.352 of the Revised Code;	501

(30) For tax years 2006 and subsequent tax years, the credit	502
for taxes paid by a qualifying pass-through entity allowed under	503
section 5733.0611 of the Revised Code;	504

(31) The refundable credit for rehabilitating a historic	505
building under section 5733.47 of the Revised Code;	506

(32) The refundable jobs creation credit or job retention	507
credit under division (A) of section 5733.0610 of the Revised	508
Code;	509

(33) The refundable credit for tax withheld under division	510
(B)(2) of section 5747.062 of the Revised Code;	511

(34) The refundable credit under section 5733.49 of the	512
Revised Code for losses on loans made to the Ohio venture capital	513
program under sections 150.01 to 150.10 of the Revised Code;	514

(35) For tax years 2006, 2007, and 2008, the refundable	515
credit allowable under division (B) of section 5733.56 of the	516
Revised Code;	517

(36) The refundable motion picture production credit under	518
section 5733.59 of the Revised Code.	519

(B) For any credit except the refundable credits enumerated	520
in divisions (A)(31) to (36) of this section, the amount of the	521
credit for a tax year shall not exceed the tax due after allowing	522
for any other credit that precedes it in the order required under	523
this section. Any excess amount of a particular credit may be	524
carried forward if authorized under the section creating that	525
credit.	526

Sec. 5747.058.  (A) A refundable income tax credit granted by	527
the tax credit authority under section 122.17 or division (B)(2)	528
of section 122.171 of the Revised Code may be claimed under this	529
chapter, in the order required under section 5747.98 of the	530
Revised Code. For purposes of making tax payments under this	531
chapter, taxes equal to the amount of the refundable credit shall	532
be considered to be paid to this state on the first day of the	533
taxable year. The refundable credit shall not be claimed for any	534
taxable years ending with or following the calendar year in which	535
a relocation of employment positions occurs in violation of an	536
agreement entered into under section 122.171 of the Revised Code.	537

(B) A nonrefundable income tax credit granted by the tax	538
credit authority under division (B)(1) of section 122.171 of the	539
Revised Code may be claimed under this chapter, in the order	540
required under section 5747.98 of the Revised Code.	541

Sec. 5747.98.  (A) To provide a uniform procedure for	542
calculating the amount of tax due under section 5747.02 of the	543
Revised Code, a taxpayer shall claim any credits to which the	544
taxpayer is entitled in the following order:	545

(1) The retirement income credit under division (B) of	546
section 5747.055 of the Revised Code;	547

(2) The senior citizen credit under division (C) of section	548
5747.05 of the Revised Code;	549

(3) The lump sum distribution credit under division (D) of	550
section 5747.05 of the Revised Code;	551

(4) The dependent care credit under section 5747.054 of the	552
Revised Code;	553

(5) The lump sum retirement income credit under division (C)	554
of section 5747.055 of the Revised Code;	555

(6) The lump sum retirement income credit under division (D)	556
of section 5747.055 of the Revised Code;	557

(7) The lump sum retirement income credit under division (E)	558
of section 5747.055 of the Revised Code;	559

(8) The low-income credit under section 5747.056 of the	560
Revised Code;	561

(9) The credit for displaced workers who pay for job training	562
under section 5747.27 of the Revised Code;	563

(10) The campaign contribution credit under section 5747.29	564
of the Revised Code;	565

(11) The twenty-dollar personal exemption credit under	566
section 5747.022 of the Revised Code;	567

(12) The joint filing credit under division (G) of section	568
5747.05 of the Revised Code;	569

(13) The nonresident credit under division (A) of section	570
5747.05 of the Revised Code;	571

(14) The credit for a resident's out-of-state income under	572
division (B) of section 5747.05 of the Revised Code;	573

(15) The credit for employers that enter into agreements with	574
child day-care centers under section 5747.34 of the Revised Code;	575

(16) The credit for employers that reimburse employee child	576
care expenses under section 5747.36 of the Revised Code;	577

(17) The credit for adoption of a minor child under section	578
5747.37 of the Revised Code;	579

(18) The credit for purchases of lights and reflectors under	580
section 5747.38 of the Revised Code;	581

(19) The nonrefundable job retention credit under division	582
(B) of section 5747.058 of the Revised Code;	583

(20) The credit for selling alternative fuel under section	584
5747.77 of the Revised Code;	585

(21) The second credit for purchases of new manufacturing	586
machinery and equipment and the credit for using Ohio coal under	587
section 5747.31 of the Revised Code;	588

(22) The job training credit under section 5747.39 of the	589
Revised Code;	590

(23) The enterprise zone credit under section 5709.66 of the	591
Revised Code;	592

(24) The credit for the eligible costs associated with a	593
voluntary action under section 5747.32 of the Revised Code;	594

(25) The credit for employers that establish on-site child	595
day-care centers under section 5747.35 of the Revised Code;	596

(26) The ethanol plant investment credit under section	597
5747.75 of the Revised Code;	598

(27) The credit for purchases of qualifying grape production	599
property under section 5747.28 of the Revised Code;	600

(28) The export sales credit under section 5747.057 of the	601
Revised Code;	602

(29) The credit for research and development and technology	603
transfer investors under section 5747.33 of the Revised Code;	604

(30) The enterprise zone credits under section 5709.65 of the	605
Revised Code;	606

(31) The research and development credit under section	607
5747.331 of the Revised Code;	608

(32) The credit for rehabilitating a historic building under	609
section 5747.76 of the Revised Code;	610

(33) The refundable credit for rehabilitating a historic	611
building under section 5747.76 of the Revised Code;	612

(34) The refundable jobs creation credit or job retention	613
credit under division (A) of section 5747.058 of the Revised Code;	614

(35) The refundable credit for taxes paid by a qualifying	615
entity granted under section 5747.059 of the Revised Code;	616

(36) The refundable credits for taxes paid by a qualifying	617
pass-through entity granted under division (J) of section 5747.08	618
of the Revised Code;	619

(37) The refundable credit for tax withheld under division	620
(B)(1) of section 5747.062 of the Revised Code;	621

(38) The refundable credit for tax withheld under section	622
5747.063 of the Revised Code;	623

(39) The refundable credit under section 5747.80 of the	624
Revised Code for losses on loans made to the Ohio venture capital	625
program under sections 150.01 to 150.10 of the Revised Code;	626

(40) The refundable motion picture production credit under	627
section 5747.66 of the Revised Code.	628

(B) For any credit, except the refundable credits enumerated	629
in this section and the credit granted under division (I) of	630
section 5747.08 of the Revised Code, the amount of the credit for	631
a taxable year shall not exceed the tax due after allowing for any	632
other credit that precedes it in the order required under this	633
section. Any excess amount of a particular credit may be carried	634
forward if authorized under the section creating that credit.	635
Nothing in this chapter shall be construed to allow a taxpayer to	636
claim, directly or indirectly, a credit more than once for a	637
taxable year.	638

Sec. 5751.50.  (A) For tax periods beginning on or after	639
January 1, 2008, a refundable credit granted by the tax credit	640
authority under section 122.17 or division (B)(2) of section	641
122.171 of the Revised Code may be claimed under this chapter in	642
the order required under section 5751.98 of the Revised Code. For	643
purposes of making tax payments under this chapter, taxes equal to	644
the amount of the refundable credit shall be considered to be paid	645
to this state on the first day of the tax period. A credit claimed	646
in calendar year 2008 may not be applied against the tax otherwise	647
due for a tax period beginning before July 1, 2008. The refundable	648
credit shall not be claimed against the tax otherwise due for any	649
tax period beginning after the date on which a relocation of	650
employment positions occurs in violation of an agreement entered	651
into under sectionssection 122.17 or 122.171 of the Revised Code.	652

(B) For tax periods beginning on or after January 1, 2008, a	653
nonrefundable credit granted by the tax credit authority under	654
division (B)(1) of section 122.171 of the Revised Code may be	655
claimed under this chapter in the order required under section	656
5751.98 of the Revised Code. A credit claimed in calendar year	657
2008 may not be applied against the tax otherwise due under this	658
chapter for a tax period beginning before July 1, 2008. The credit	659
shall not be claimed against the tax otherwise due for any tax	660
period beginning after the date on which a relocation of	661
employment positions occurs in violation of an agreement entered	662
into under sectionssection 122.17 or 122.171 of the Revised Code.	663
No credit shall be allowed under this chapter if the credit was	664
available against the tax imposed by section 5733.06 or 5747.02 of	665
the Revised Code, except to the extent the credit was not applied	666
against such tax.	667

Sec. 5751.98.  (A) To provide a uniform procedure for	668
calculating the amount of tax due under this chapter, a taxpayer	669
shall claim any credits to which it is entitled in the following	670
order:	671

(1) The nonrefundable jobs retention credit under division	672
(B) of section 5751.50 of the Revised Code;	673

(2) The nonrefundable credit for qualified research expenses	674
under division (B) of section 5751.51 of the Revised Code;	675

(3) The nonrefundable credit for a borrower's qualified	676
research and development loan payments under division (B) of	677
section 5751.52 of the Revised Code;	678

(4) The nonrefundable credit for calendar years 2010 to 2029	679
for unused net operating losses under division (B) of section	680
5751.53 of the Revised Code;	681

(5) The refundable credit for calendar year 2030 for unused	682
net operating losses under division (C) of section 5751.53 of the	683
Revised Code;	684

(6) The refundable jobs creation credit or job retention	685
credit under division (A) of section 5751.50 of the Revised Code.	686

(B) For any credit except the creditrefundable credits	687
enumerated in division (A)(4) of this section, the amount of the	688
credit for a tax period shall not exceed the tax due after	689
allowing for any other credit that precedes it in the order	690
required under this section. Any excess amount of a particular	691
credit may be carried forward if authorized under the section	692
creating the credit.	693

Section 2. That existing sections 122.171, 718.151, 5725.98,	694
5729.98, 5733.0610, 5733.98, 5747.058, 5747.98, 5751.50, and	695
5751.98 of the Revised Code are hereby repealed.	696