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 credits687
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