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| To amend sections 5747.98 and 5751.98 and to enact | 1 |
| sections 5747.78 and 5751.55 of the Revised Code | 2 |
| to authorize an income tax or commercial activity | 3 |
| tax credit for businesses that donate food | 4 |
| inventory to charitable organizations. | 5 |
| Section 1. That sections 5747.98 and 5751.98 be amended and | 6 |
| sections 5747.78 and 5751.55 of the Revised Code be enacted to | 7 |
| read as follows: | 8 |
| Sec. 5747.78. A refundable credit is allowed against the tax | 9 |
| imposed by section 5747.02 of the Revised Code for a taxpayer that | 10 |
| claims a deduction under section 170 of the Internal Revenue Code | 11 |
| for charitable contributions of apparently wholesome food from the | 12 |
| taxpayer's trade or business. The amount of the credit equals ten | 13 |
| per cent of the amount of such contributions that the taxpayer | 14 |
| deducted in computing federal taxable income for the taxable year. | 15 |
| The taxpayer shall claim the credit in the order required by | 16 |
| section 5747.98 of the Revised Code. If the credit allowed for any | 17 |
| taxable year exceeds the tax otherwise due under section 5747.02 | 18 |
| of the Revised Code after allowing for any other credits preceding | 19 |
| the credit in the order prescribed by section 5747.98 of the | 20 |
| Revised Code, the excess shall be refunded to the taxpayer. | 21 |
| Nothing in this section limits or disallows pass-through | 22 |
| treatment of the credit. | 23 |
| Sec. 5747.98. (A) To provide a uniform procedure for | 24 |
| calculating the amount of tax due under section 5747.02 of the | 25 |
| Revised Code, a taxpayer shall claim any credits to which the | 26 |
| taxpayer is entitled in the following order: | 27 |
| (1) The retirement income credit under division (B) of | 28 |
| section 5747.055 of the Revised Code; | 29 |
| (2) The senior citizen credit under division (C) of section | 30 |
| 5747.05 of the Revised Code; | 31 |
| (3) The lump sum distribution credit under division (D) of | 32 |
| section 5747.05 of the Revised Code; | 33 |
| (4) The dependent care credit under section 5747.054 of the | 34 |
| Revised Code; | 35 |
| (5) The lump sum retirement income credit under division (C) | 36 |
| of section 5747.055 of the Revised Code; | 37 |
| (6) The lump sum retirement income credit under division (D) | 38 |
| of section 5747.055 of the Revised Code; | 39 |
| (7) The lump sum retirement income credit under division (E) | 40 |
| of section 5747.055 of the Revised Code; | 41 |
| (8) The low-income credit under section 5747.056 of the | 42 |
| Revised Code; | 43 |
| (9) The credit for displaced workers who pay for job training | 44 |
| under section 5747.27 of the Revised Code; | 45 |
| (10) The campaign contribution credit under section 5747.29 | 46 |
| of the Revised Code; | 47 |
| (11) The twenty-dollar personal exemption credit under | 48 |
| section 5747.022 of the Revised Code; | 49 |
| (12) The joint filing credit under division (G) of section | 50 |
| 5747.05 of the Revised Code; | 51 |
| (13) The nonresident credit under division (A) of section | 52 |
| 5747.05 of the Revised Code; | 53 |
| (14) The credit for a resident's out-of-state income under | 54 |
| division (B) of section 5747.05 of the Revised Code; | 55 |
| (15) The credit for employers that enter into agreements with | 56 |
| child day-care centers under section 5747.34 of the Revised Code; | 57 |
| (16) The credit for employers that reimburse employee child | 58 |
| care expenses under section 5747.36 of the Revised Code; | 59 |
| (17) The credit for adoption of a minor child under section | 60 |
| 5747.37 of the Revised Code; | 61 |
| (18) The credit for purchases of lights and reflectors under | 62 |
| section 5747.38 of the Revised Code; | 63 |
| (19) The nonrefundable job retention credit under division | 64 |
| (B) of section 5747.058 of the Revised Code; | 65 |
| (20) The credit for selling alternative fuel under section | 66 |
| 5747.77 of the Revised Code; | 67 |
| (21) The second credit for purchases of new manufacturing | 68 |
| machinery and equipment and the credit for using Ohio coal under | 69 |
| section 5747.31 of the Revised Code; | 70 |
| (22) The job training credit under section 5747.39 of the | 71 |
| Revised Code; | 72 |
| (23) The enterprise zone credit under section 5709.66 of the | 73 |
| Revised Code; | 74 |
| (24) The credit for the eligible costs associated with a | 75 |
| voluntary action under section 5747.32 of the Revised Code; | 76 |
| (25) The credit for employers that establish on-site child | 77 |
| day-care centers under section 5747.35 of the Revised Code; | 78 |
| (26) The ethanol plant investment credit under section | 79 |
| 5747.75 of the Revised Code; | 80 |
| (27) The credit for purchases of qualifying grape production | 81 |
| property under section 5747.28 of the Revised Code; | 82 |
| (28) The small business investment credit under section | 83 |
| 5747.81 of the Revised Code; | 84 |
| (29) The credit for research and development and technology | 85 |
| transfer investors under section 5747.33 of the Revised Code; | 86 |
| (30) The enterprise zone credits under section 5709.65 of the | 87 |
| Revised Code; | 88 |
| (31) The research and development credit under section | 89 |
| 5747.331 of the Revised Code; | 90 |
| (32) The credit for rehabilitating a historic building under | 91 |
| section 5747.76 of the Revised Code; | 92 |
| (33) The refundable credit for rehabilitating a historic | 93 |
| building under section 5747.76 of the Revised Code; | 94 |
| (34) The refundable jobs creation credit or job retention | 95 |
| credit under division (A) of section 5747.058 of the Revised Code; | 96 |
| (35) The refundable credit for taxes paid by a qualifying | 97 |
| entity granted under section 5747.059 of the Revised Code; | 98 |
| (36) The refundable credits for taxes paid by a qualifying | 99 |
| pass-through entity granted under division (J) of section 5747.08 | 100 |
| of the Revised Code; | 101 |
| (37) The refundable credit under section 5747.80 of the | 102 |
| Revised Code for losses on loans made to the Ohio venture capital | 103 |
| program under sections 150.01 to 150.10 of the Revised Code; | 104 |
| (38) The refundable motion picture production credit under | 105 |
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section 5747.66 of the Revised Code | 106 |
| (39) The refundable credit for financial institution taxes | 107 |
| paid by a pass-through entity granted under section 5747.65 of the | 108 |
| Revised Code; | 109 |
| (40) The refundable credit for charitable contributions of | 110 |
| food inventory. | 111 |
| (B) For any credit, except the refundable credits enumerated | 112 |
| in this section and the credit granted under division (I) of | 113 |
| section 5747.08 of the Revised Code, the amount of the credit for | 114 |
| a taxable year shall not exceed the tax due after allowing for any | 115 |
| other credit that precedes it in the order required under this | 116 |
| section. Any excess amount of a particular credit may be carried | 117 |
| forward if authorized under the section creating that credit. | 118 |
| Nothing in this chapter shall be construed to allow a taxpayer to | 119 |
| claim, directly or indirectly, a credit more than once for a | 120 |
| taxable year. | 121 |
| Sec. 5751.55. A refundable credit is allowed against the tax | 122 |
| imposed by section 5751.02 of the Revised Code for a taxpayer that | 123 |
| claims a deduction under section 170 of the Internal Revenue Code | 124 |
| for charitable contributions of apparently wholesome food from the | 125 |
| taxpayer's trade or business. The taxpayer shall claim the credit | 126 |
| for the tax period that includes the last day of the taxable year | 127 |
| for which the taxpayer claimed the federal deduction. The amount | 128 |
| of the credit equals ten per cent of the amount of such | 129 |
| contributions that the taxpayer deducted in computing federal | 130 |
| taxable income for the taxable year. | 131 |
| The taxpayer shall claim the credit in the order required by | 132 |
| section 5751.98 of the Revised Code. If the credit allowed for any | 133 |
| tax period exceeds the tax otherwise due under section 5751.02 of | 134 |
| the Revised Code after allowing for any other credits preceding | 135 |
| the credit in the order prescribed by section 5751.98 of the | 136 |
| Revised Code, the excess shall be refunded to the taxpayer. | 137 |
| No credit shall be allowed under this chapter if the credit | 138 |
| was available against the tax imposed by section 5747.02 of the | 139 |
| Revised Code except to the extent the credit was not applied | 140 |
| against such tax. | 141 |
| As used in this section, "charitable contribution" and | 142 |
| "apparently wholesome food" have the same meanings as in section | 143 |
| 170 of the Internal Revenue Code. | 144 |
| Sec. 5751.98. (A) To provide a uniform procedure for | 145 |
| calculating the amount of tax due under this chapter, a taxpayer | 146 |
| shall claim any credits to which it is entitled in the following | 147 |
| order: | 148 |
| (1) The nonrefundable jobs retention credit under division | 149 |
| (B) of section 5751.50 of the Revised Code; | 150 |
| (2) The nonrefundable credit for qualified research expenses | 151 |
| under division (B) of section 5751.51 of the Revised Code; | 152 |
| (3) The nonrefundable credit for a borrower's qualified | 153 |
| research and development loan payments under division (B) of | 154 |
| section 5751.52 of the Revised Code; | 155 |
| (4) The nonrefundable credit for calendar years 2010 to 2029 | 156 |
| for unused net operating losses under division (B) of section | 157 |
| 5751.53 of the Revised Code; | 158 |
| (5) The refundable motion picture production credit under | 159 |
| section 5751.54 of the Revised Code; | 160 |
| (6) The refundable jobs creation credit or job retention | 161 |
| credit under division (A) of section 5751.50 of the Revised Code; | 162 |
| (7) The refundable credit for calendar year 2030 for unused | 163 |
| net operating losses under division (C) of section 5751.53 of the | 164 |
| Revised Code; | 165 |
| (8) The refundable credit for charitable contributions of | 166 |
| food inventory. | 167 |
| (B) For any credit except the refundable credits enumerated | 168 |
| in this section, the amount of the credit for a tax period shall | 169 |
| not exceed the tax due after allowing for any other credit that | 170 |
| precedes it in the order required under this section. Any excess | 171 |
| amount of a particular credit may be carried forward if authorized | 172 |
| under the section creating the credit. | 173 |
| Section 2. That existing sections 5747.98 and 5751.98 of the | 174 |
| Revised Code are hereby repealed. | 175 |
| Section 3. Section 5747.98 of the Revised Code is presented | 176 |
| in this act as a composite of the section as amended by both Am. | 177 |
| Sub. H.B. 386 and Am. Sub. H.B. 510 of the 129th General Assembly. | 178 |
| The General Assembly, applying the principle stated in division | 179 |
| (B) of section 1.52 of the Revised Code that amendments are to be | 180 |
| harmonized if reasonably capable of simultaneous operation, finds | 181 |
| that the composite is the resulting version of the section in | 182 |
| effect prior to the effective date of the section as presented in | 183 |
| this act. | 184 |