As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 320

Representative Young 

Cosponsors: Representatives Amstutz, Becker, Boose, Brenner, Buchy, Burkley, Derickson, Hood, Roegner, Thompson 

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A BILL

To amend sections 2305.234, 2305.2341, 4715.42,

1

4723.271, 4731.295, and 5747.01 and to enact

2

sections 5.2290, 4723.26, and 5747.78 of the

3

Revised Code to create a state income tax

4

deduction regarding certain health care services

5

provided at a free clinic; to extend qualified

6

immunity from civil liability for certain

7

volunteer health care services provided to

8

individuals eligible for or receiving Medicaid; to

9

authorize a person practicing under a volunteer's

10

certificate to provide health care services to any

11

person; to create a volunteer's certificate for

12

retired nurses; and to designate December as "Free

13

Clinic Appreciation Month."

14

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

Section 1.  That sections 2305.234, 2305.2341, 4715.42,	15
4723.271, 4731.295, and 5747.01 be amended and sections 5.2290,	16
4723.26, and 5747.78 of the Revised Code be enacted to read as	17
follows:	18

Sec. 5.2290.  The month of December is designated as "Free	19
Clinic Appreciation Month."	20

Sec. 2305.234.  (A) As used in this section:

21

(1) "Chiropractic claim," "medical claim," and "optometric	22
claim" have the same meanings as in section 2305.113 of the	23
Revised Code.	24

(2) "Dental claim" has the same meaning as in section	25
2305.113 of the Revised Code, except that it does not include any	26
claim arising out of a dental operation or any derivative claim	27
for relief that arises out of a dental operation.	28

(3) "Governmental health care program" has the same meaning	29
as in section 4731.65 of the Revised Code.	30

(4) "Health care facility or location" means a hospital,	31
clinic, ambulatory surgical facility, office of a health care	32
professional or associated group of health care professionals,	33
training institution for health care professionals, or any other	34
place where medical, dental, or other health-related diagnosis,	35
care, or treatment is provided to a person.	36

(5) "Health care professional" means any of the following who	37
provide medical, dental, or other health-related diagnosis, care,	38
or treatment:	39

(a) Physicians authorized under Chapter 4731. of the Revised	40
Code to practice medicine and surgery or osteopathic medicine and	41
surgery;	42

(b) Registered nurses and licensed practical nurses licensed	43
under Chapter 4723. of the Revised Code and individuals who hold a	44
certificate of authority issued under that chapter that authorizes	45
the practice of nursing as a certified registered nurse	46
anesthetist, clinical nurse specialist, certified nurse-midwife,	47
or certified nurse practitioner;	48

(c) Physician assistants authorized to practice under Chapter	49
4730. of the Revised Code;	50

(d) Dentists and dental hygienists licensed under Chapter	51
4715. of the Revised Code;	52

(e) Physical therapists, physical therapist assistants,	53
occupational therapists, and occupational therapy assistants	54
licensed under Chapter 4755. of the Revised Code;	55

(f) Chiropractors licensed under Chapter 4734. of the Revised	56
Code;	57

(g) Optometrists licensed under Chapter 4725. of the Revised	58
Code;	59

(h) Podiatrists authorized under Chapter 4731. of the Revised	60
Code to practice podiatry;	61

(i) Dietitians licensed under Chapter 4759. of the Revised	62
Code;	63

(j) Pharmacists licensed under Chapter 4729. of the Revised	64
Code;	65

(k) Emergency medical technicians-basic, emergency medical	66
technicians-intermediate, and emergency medical	67
technicians-paramedic, certified under Chapter 4765. of the	68
Revised Code;	69

(l) Respiratory care professionals licensed under Chapter	70
4761. of the Revised Code;	71

(m) Speech-language pathologists and audiologists licensed	72
under Chapter 4753. of the Revised Code;	73

(n) Professional clinical counselors, professional	74
counselors, independent social workers, social workers,	75
independent marriage and family therapists, and marriage and	76
family therapists, licensed under Chapter 4757. of the Revised	77
Code;	78

(o) Psychologists licensed under Chapter 4732. of the Revised	79
Code;	80

(p) Independent chemical dependency counselors, chemical	81
dependency counselors III, chemical dependency counselors II, and	82
chemical dependency counselors I, licensed under Chapter 4758. of	83
the Revised Code.	84

(6) "Health care worker" means a person other than a health	85
care professional who provides medical, dental, or other	86
health-related care or treatment under the direction of a health	87
care professional with the authority to direct that individual's	88
activities, including medical technicians, medical assistants,	89
dental assistants, orderlies, aides, and individuals acting in	90
similar capacities.	91

(7) Except as otherwise provided in division (A)(7) of this	92
section, "Indigentindigent and uninsured person" means a person	93
who meets allboth of the following requirements:	94

(a) The person's income is not greater than two hundred per	95
cent of the current poverty line as defined by the United States	96
office of management and budget and revised in accordance with	97
section 673(2) of the "Omnibus Budget Reconciliation Act of 1981,"	98
95 Stat. 511, 42 U.S.C. 9902, as amended.	99

(b) The person is not eligible for the medicaid program or	100
any other governmental health care program.	101

(c) Either of the following applies:

102

(i) The person is not a policyholder, certificate holder,	103
insured, contract holder, subscriber, enrollee, member,	104
beneficiary, or other covered individual under a health insurance	105
or health care policy, contract, or plan.	106

(ii) The person is a policyholder, certificate holder,	107
insured, contract holder, subscriber, enrollee, member,	108
beneficiary, or other covered individual under a health insurance	109
or health care policy, contract, or plan, but the insurer, policy,	110
contract, or plan denies coverage or is the subject of insolvency	111
or bankruptcy proceedings in any jurisdiction.	112

"Indigent and uninsured person" includes a person who is	113
eligible for the medicaid program or is a medicaid recipient, but	114
does not include a person who is eligible for or is a recipient,	115
enrollee, or beneficiary of any other governmental health care	116
program.	117

(8) "Nonprofit health care referral organization" means an	118
entity that is not operated for profit and refers patients to, or	119
arranges for the provision of, health-related diagnosis, care, or	120
treatment by a health care professional or health care worker.	121

(9) "Operation" means any procedure that involves cutting or	122
otherwise infiltrating human tissue by mechanical means, including	123
surgery, laser surgery, ionizing radiation, therapeutic	124
ultrasound, or the removal of intraocular foreign bodies.	125
"Operation" does not include the administration of medication by	126
injection, unless the injection is administered in conjunction	127
with a procedure infiltrating human tissue by mechanical means	128
other than the administration of medicine by injection.	129
"Operation" does not include routine dental restorative	130
procedures, the scaling of teeth, or extractions of teeth that are	131
not impacted.	132

(10) "Tort action" means a civil action for damages for	133
injury, death, or loss to person or property other than a civil	134
action for damages for a breach of contract or another agreement	135
between persons or government entities.	136

(11) "Volunteer" means an individual who provides any	137
medical, dental, or other health-care related diagnosis, care, or	138
treatment without the expectation of receiving and without receipt	139
of any compensation or other form of remuneration from an indigent	140
and uninsured person, another person on behalf of an indigent and	141
uninsured person, any health care facility or location, any	142
nonprofit health care referral organization, or any other person	143
or government entity.	144

(12) "Community control sanction" has the same meaning as in	145
section 2929.01 of the Revised Code.	146

(13) "Deep sedation" means a drug-induced depression of	147
consciousness during which a patient cannot be easily aroused but	148
responds purposefully following repeated or painful stimulation, a	149
patient's ability to independently maintain ventilatory function	150
may be impaired, a patient may require assistance in maintaining a	151
patent airway and spontaneous ventilation may be inadequate, and	152
cardiovascular function is usually maintained.	153

(14) "General anesthesia" means a drug-induced loss of	154
consciousness during which a patient is not arousable, even by	155
painful stimulation, the ability to independently maintain	156
ventilatory function is often impaired, a patient often requires	157
assistance in maintaining a patent airway, positive pressure	158
ventilation may be required because of depressed spontaneous	159
ventilation or drug-induced depression of neuromuscular function,	160
and cardiovascular function may be impaired.	161

(B)(1) Subject to divisions (F) and (G)(3) of this section, a	162
health care professional who is a volunteer and complies with	163
division (B)(2) of this section is not liable in damages to any	164
person or government entity in a tort or other civil action,	165
including an action on a medical, dental, chiropractic,	166
optometric, or other health-related claim, for injury, death, or	167
loss to person or property that allegedly arises from an action or	168
omission of the volunteer in the provision to an indigent and	169
uninsured person of medical, dental, or other health-related	170
diagnosis, care, or treatment, including the provision of samples	171
of medicine and other medical products, unless the action or	172
omission constitutes willful or wanton misconduct.	173

(2) To qualify for the immunity described in division (B)(1)	174
of this section, a health care professional shall do all of the	175
following prior to providing diagnosis, care, or treatment:	176

(a) Determine, in good faith, that the indigent and uninsured	177
person is mentally capable of giving informed consent to the	178
provision of the diagnosis, care, or treatment and is not subject	179
to duress or under undue influence;	180

(b) Inform the person of the provisions of this section,	181
including notifying the person that, by giving informed consent to	182
the provision of the diagnosis, care, or treatment, the person	183
cannot hold the health care professional liable for damages in a	184
tort or other civil action, including an action on a medical,	185
dental, chiropractic, optometric, or other health-related claim,	186
unless the action or omission of the health care professional	187
constitutes willful or wanton misconduct;	188

(c) Obtain the informed consent of the person and a written	189
waiver, signed by the person or by another individual on behalf of	190
and in the presence of the person, that states that the person is	191
mentally competent to give informed consent and, without being	192
subject to duress or under undue influence, gives informed consent	193
to the provision of the diagnosis, care, or treatment subject to	194
the provisions of this section. A written waiver under division	195
(B)(2)(c) of this section shall state clearly and in conspicuous	196
type that the person or other individual who signs the waiver is	197
signing it with full knowledge that, by giving informed consent to	198
the provision of the diagnosis, care, or treatment, the person	199
cannot bring a tort or other civil action, including an action on	200
a medical, dental, chiropractic, optometric, or other	201
health-related claim, against the health care professional unless	202
the action or omission of the health care professional constitutes	203
willful or wanton misconduct.	204

(3) A physician or podiatrist who is not covered by medical	205
malpractice insurance, but complies with division (B)(2) of this	206
section, is not required to comply with division (A) of section	207
4731.143 of the Revised Code.	208

(C) Subject to divisions (F) and (G)(3) of this section,	209
health care workers who are volunteers are not liable in damages	210
to any person or government entity in a tort or other civil	211
action, including an action upon a medical, dental, chiropractic,	212
optometric, or other health-related claim, for injury, death, or	213
loss to person or property that allegedly arises from an action or	214
omission of the health care worker in the provision to an indigent	215
and uninsured person of medical, dental, or other health-related	216
diagnosis, care, or treatment, unless the action or omission	217
constitutes willful or wanton misconduct.	218

(D) Subject to divisions (F) and (G)(3) of this section, a	219
nonprofit health care referral organization is not liable in	220
damages to any person or government entity in a tort or other	221
civil action, including an action on a medical, dental,	222
chiropractic, optometric, or other health-related claim, for	223
injury, death, or loss to person or property that allegedly arises	224
from an action or omission of the nonprofit health care referral	225
organization in referring indigent and uninsured persons to, or	226
arranging for the provision of, medical, dental, or other	227
health-related diagnosis, care, or treatment by a health care	228
professional described in division (B)(1) of this section or a	229
health care worker described in division (C) of this section,	230
unless the action or omission constitutes willful or wanton	231
misconduct.	232

(E) Subject to divisions (F) and (G)(3) of this section and	233
to the extent that the registration requirements of section	234
3701.071 of the Revised Code apply, a health care facility or	235
location associated with a health care professional described in	236
division (B)(1) of this section, a health care worker described in	237
division (C) of this section, or a nonprofit health care referral	238
organization described in division (D) of this section is not	239
liable in damages to any person or government entity in a tort or	240
other civil action, including an action on a medical, dental,	241
chiropractic, optometric, or other health-related claim, for	242
injury, death, or loss to person or property that allegedly arises	243
from an action or omission of the health care professional or	244
worker or nonprofit health care referral organization relative to	245
the medical, dental, or other health-related diagnosis, care, or	246
treatment provided to an indigent and uninsured person on behalf	247
of or at the health care facility or location, unless the action	248
or omission constitutes willful or wanton misconduct.	249

(F)(1) Except as provided in division (F)(2) of this section,	250
the immunities provided by divisions (B), (C), (D), and (E) of	251
this section are not available to a health care professional,	252
health care worker, nonprofit health care referral organization,	253
or health care facility or location if, at the time of an alleged	254
injury, death, or loss to person or property, the health care	255
professionals or health care workers involved are providing one of	256
the following:	257

(a) Any medical, dental, or other health-related diagnosis,	258
care, or treatment pursuant to a community service work order	259
entered by a court under division (B) of section 2951.02 of the	260
Revised Code or imposed by a court as a community control	261
sanction;	262

(b) Performance of an operation to which any one of the	263
following applies:	264

(i) The operation requires the administration of deep	265
sedation or general anesthesia.	266

(ii) The operation is a procedure that is not typically	267
performed in an office.	268

(iii) The individual involved is a health care professional,	269
and the operation is beyond the scope of practice or the	270
education, training, and competence, as applicable, of the health	271
care professional.	272

(c) Delivery of a baby or any other purposeful termination of	273
a human pregnancy.	274

(2) Division (F)(1) of this section does not apply when a	275
health care professional or health care worker provides medical,	276
dental, or other health-related diagnosis, care, or treatment that	277
is necessary to preserve the life of a person in a medical	278
emergency.	279

(G)(1) This section does not create a new cause of action or	280
substantive legal right against a health care professional, health	281
care worker, nonprofit health care referral organization, or	282
health care facility or location.	283

(2) This section does not affect any immunities from civil	284
liability or defenses established by another section of the	285
Revised Code or available at common law to which a health care	286
professional, health care worker, nonprofit health care referral	287
organization, or health care facility or location may be entitled	288
in connection with the provision of emergency or other medical,	289
dental, or other health-related diagnosis, care, or treatment.	290

(3) This section does not grant an immunity from tort or	291
other civil liability to a health care professional, health care	292
worker, nonprofit health care referral organization, or health	293
care facility or location for actions that are outside the scope	294
of authority of health care professionals or health care workers.	295

(4) This section does not affect any legal responsibility of	296
a health care professional, health care worker, or nonprofit	297
health care referral organization to comply with any applicable	298
law of this state or rule of an agency of this state.	299

(5) This section does not affect any legal responsibility of	300
a health care facility or location to comply with any applicable	301
law of this state, rule of an agency of this state, or local code,	302
ordinance, or regulation that pertains to or regulates building,	303
housing, air pollution, water pollution, sanitation, health, fire,	304
zoning, or safety.	305

Sec. 2305.2341. (A) The medical liability insurance	306
reimbursement program is hereby established. Free clinics and	307
federally qualified health center look-alikes, including the	308
clinics' and centers' staff and volunteer health care	309
professionals and volunteer health care workers, may participate	310
in the medical liability insurance reimbursement program	311
established by this section. The coverage provided under the	312
program shall be limited to claims that arise out of the	313
diagnosis, treatment, and care of patients of free clinics and	314
centers, as defined in division (D) of this section.	315

(B) A free clinic or federally qualified health center	316
look-alike is eligible to receive reimbursement under the medical	317
liability insurance reimbursement program for the premiums that	318
the clinic or center pays for medical liability insurance coverage	319
for the clinic or center, its staff, and volunteer health care	320
professionals and health care workers. Free clinics and federally	321
qualified health center look-alikes shall register with the	322
department of health by the thirty-first day of January of each	323
year in order to participate in and to obtain reimbursement under	324
the program. Clinics that register with the department in	325
accordance with this division shall receive priority over centers	326
that register for reimbursement.	327

Free clinics and federally qualified health center	328
look-alikes shall provide all of the following to the department	329
of health at the time of registration:	330

(1) A statement of the number of volunteer and paid health	331
care professionals and health care workers providing health care	332
services at the free clinic or federally qualified health center	333
look-alike at that time;	334

(2) A statement of the number of health care services	335
rendered by the free clinic or federally qualified health center	336
look-alike during the previous fiscal year;	337

(3) A signed form acknowledging that the free clinic or	338
federally qualified health center look-alike agrees to follow its	339
medical liability insurer's risk management and loss prevention	340
policies;	341

(4) A copy of the medical liability insurance policy	342
purchased by the free clinic or federally qualified health center	343
look-alike, or the policy's declaration page, and documentation of	344
the premiums paid by the clinic or center.	345

(C) The department of health shall reimburse free clinics and	346
federally qualified health center look-alikes participating in the	347
professional liability insurance reimbursement program for up to	348
eighty per cent of the premiums that the clinic or center pays for	349
medical liability insurance coverage up to twenty thousand	350
dollars. Appropriations to the department of health may be made	351
from the general fund of the state for this purpose.	352

(D) As used in this section:

353

(1) "Federally qualified health center look-alike" means a	354
public or not-for-profit health center that meets the eligibility	355
requirements to receive a federal public health services grant	356
under the "Public Health Services Act," 117 Stat. 2020, 42 U.S.C.	357
254b, as amended, but does not receive grant funding.	358

(2) "Free clinic" means a nonprofit organization exempt from	359
federal income taxation under section 501(c)(3) of the "Internal	360
Revenue Code of 1986," as amended, or a program component of a	361
nonprofit organization, whose primary mission is to provide health	362
care services for free or for a minimal administrative fee to	363
individuals with limited resources. A free clinic facilitates the	364
delivery of health care services through the use of volunteer	365
health care professionals and voluntary care networks. For this	366
purpose, a free clinic shall comply with all of the following:	367

(a) If a free clinic does request a minimal administrative	368
fee, a free clinic shall not deny an individual access to its	369
health care services based on an individual's ability to pay the	370
fee.	371

(b) A free clinic shall not bill a patient for health care	372
services rendered.	373

(c) Free clinics shall not performExcept in dental and	374
medical emergencies as provided in sections 4715.42 and 4731.295	375
of the Revised Code, operations, as defined by divisions (A)(9)	376
and (F)(1)(b) of section 2305.234 of the Revised Codeshall not be	377
performed in free clinics.	378

A clinic is not a free clinic if the clinic bills medicaid,	379
medicare, or other third-party payers for health care services	380
rendered at the clinic, and receives twenty-five per cent or more	381
of the clinic's annual revenue from the third-party payments.	382

(3) "Health care professional" and "health care worker" have	383
the same meanings as in section 2305.234 of the Revised Code.	384

Sec. 4715.42.  (A)(1) As used in this section, "indigent

385

(a) "Indigent and uninsured person" and "operation" have the	386
same meanings as in section 2305.234 of the Revised Code.	387

(b) "Free clinic" has the same meaning as in section	388
2305.2341 of the Revised Code.	389

(2) For the purposes of this section, a person shall be	390
considered retired from practice if the person's license has been	391
surrendered or allowed to expire with the intention of ceasing to	392
practice as a dentist or dental hygienist for remuneration.	393

(B) Within thirty days after receiving an application for a	394
volunteer's certificate that includes all of the items listed in	395
divisions (C)(1), (2), and (3) of this section, the state dental	396
board shall issue, without examination, a volunteer's certificate	397
to a person who is retired from practice so that the person may	398
provide dental services to indigent and uninsured persons at any	399
location, including a free clinic.	400

(C) An application for a volunteer's certificate shall	401
include all of the following:	402

(1) A copy of the applicant's degree from dental college or	403
dental hygiene school.	404

(2) One of the following, as applicable:

405

(a) A copy of the applicant's most recent license to practice	406
dentistry or dental hygiene issued by a jurisdiction in the United	407
States that licenses persons to practice dentistry or dental	408
hygiene.	409

(b) A copy of the applicant's most recent license equivalent	410
to a license to practice dentistry or dental hygiene in one or	411
more branches of the United States armed services that the United	412
States government issued.	413

(3) Evidence of one of the following, as applicable:

414

(a) The applicant has maintained for at least ten years prior	415
to retirement full licensure in good standing in any jurisdiction	416
in the United States that licenses persons to practice dentistry	417
or dental hygiene.	418

(b) The applicant has practiced as a dentist or dental	419
hygienist in good standing for at least ten years prior to	420
retirement in one or more branches of the United States armed	421
services.	422

(D) The holder of a volunteer's certificate may provide	423
dental services only to indigent and uninsured persons at any	424
location, including a free clinic. The holder shall not accept any	425
form of remuneration for providing dental services while in	426
possession of the certificate. Except in a dental emergency, the	427
holder shall not perform any operation. The board may revoke a	428
volunteer's certificate on receiving proof satisfactory to the	429
board that the holder has engaged in practice in this state	430
outside the scope of the holder's certificate or that there are	431
grounds for action against the person under section 4715.30 of the	432
Revised Code.	433

(E)(1) A volunteer's certificate shall be valid for a period	434
of three years, and may be renewed upon the application of the	435
holder, unless the certificate was previously revoked under	436
division (D) of this section. The board shall maintain a register	437
of all persons who hold volunteer's certificates. The board shall	438
not charge a fee for issuing or renewing a certificate pursuant to	439
this section.	440

(2) To be eligible for renewal of a volunteer's certificate,	441
the holder of the certificate shall certify to the board	442
completion of sixty hours of continuing dental education that	443
meets the requirements of section 4715.141 of the Revised Code and	444
the rules adopted under that section, or completion of eighteen	445
hours of continuing dental hygiene education that meets the	446
requirements of section 4715.25 of the Revised Code and the rules	447
adopted under that section, as the case may be. The board may not	448
renew a certificate if the holder has not complied with the	449
appropriate continuing education requirements. Any entity for	450
which the holder provides dental services may pay for or reimburse	451
the holder for any costs incurred in obtaining the required	452
continuing education credits.	453

(3) The board shall issue to each person who qualifies under	454
this section for a volunteer's certificate a wallet certificate	455
and a wall certificate that state that the certificate holder is	456
authorized to provide dental services pursuant to the laws of this	457
state. The holder shall keep the wallet certificate on the	458
holder's person while providing dental services and shall display	459
the wall certificate prominently at the location where the holder	460
primarily practices.	461

(4) The holder of a volunteer's certificate issued pursuant	462
to this section is subject to the immunity provisions regarding	463
the provision of services to indigent and uninsured persons in	464
section 2305.234 of the Revised Code.	465

(F) The board shall adopt rules in accordance with Chapter	466
119. of the Revised Code to administer and enforce this section.	467

(G) Within ninety days after the effective date of this	468
amendment, theThe state dental board shall make available through	469
the board's website the application form for a volunteer's	470
certificate under this section, a description of the application	471
process, and a list of all items that are required by division (C)	472
of this section to be submitted with the application.	473

Sec. 4723.26.  (A)(1) As used in this section:

474

(a) "Indigent and uninsured person" and "operation" have the	475
same meanings as in section 2305.234 of the Revised Code.	476

(b) "Free clinic" has the same meaning as in section	477
2305.2341 of the Revised Code.	478

(2) For the purposes of this section, a person shall be	479
considered retired from practice if the person's license has been	480
surrendered or allowed to expire with the intention of ceasing to	481
practice nursing as a registered nurse or licensed practical nurse	482
for remuneration.	483

(B) Within thirty days after receiving an application for a	484
volunteer's certificate that includes all of the items listed in	485
divisions (C)(1), (2), and (3) of this section, the board of	486
nursing shall issue, without examination, a volunteer's	487
certificate to a person who is retired from practice so that the	488
person may provide nursing services to persons at any location,	489
including a free clinic.	490

(C) An application for a volunteer's certificate shall	491
include all of the following:	492

(1) A copy of the applicant's degree from a school of	493
registered nursing or practical nursing;	494

(2) One of the following, as applicable:

495

(a) A copy of the applicant's most recent license to practice	496
nursing as a registered nurse or licensed practical nurse issued	497
by a jurisdiction in the United States that licenses persons to	498
practice nursing as a registered nurse or licensed practical	499
nurse;	500

(b) A copy of the applicant's most recent license equivalent	501
to a license to practice nursing as a registered nurse or licensed	502
practical nurse in one or more branches of the United States armed	503
services that the United States government issued.	504

(3) Evidence of one of the following, as applicable:

505

(a) The applicant has maintained for at least ten years prior	506
to retirement full licensure in good standing in any jurisdiction	507
in the United States that licenses persons to practice nursing as	508
a registered nurse or licensed practical nurse.	509

(b) The applicant has practiced nursing as a registered nurse	510
or licensed practical nurse in good standing for at least ten	511
years prior to retirement in one or more branches of the United	512
States armed services.	513

(D) The holder of a volunteer's certificate may provide	514
nursing services to persons at any location, including a free	515
clinic. The holder shall not accept any form of remuneration for	516
providing nursing services while in possession of the certificate.	517
The board may revoke a volunteer's certificate on receiving proof	518
satisfactory to the board that the holder has engaged in practice	519
in this state outside the scope of the holder's certificate or	520
that there are grounds for action against the person under section	521
4723.28 of the Revised Code.	522

(E)(1) A volunteer's certificate shall be valid for a period	523
of three years, and may be renewed upon the application of the	524
holder, unless the certificate was previously revoked under	525
division (D) of this section. The board shall maintain a register	526
of all persons who hold volunteer's certificates. The board shall	527
not charge a fee for issuing or renewing a certificate pursuant to	528
this section.	529

(2) To be eligible for renewal of a volunteer's certificate,	530
the holder of the certificate shall certify to the board	531
completion of continuing nursing education that meets the	532
requirements of section 4723.24 of the Revised Code and the rules	533
adopted under that section. The board may not renew a certificate	534
if the holder has not complied with the appropriate continuing	535
education requirements. Any entity for which the holder provides	536
nursing services may pay for or reimburse the holder for any costs	537
incurred in obtaining the required continuing education hours.	538

(3) The board shall issue to each person who qualifies under	539
this section for a volunteer's certificate a wallet certificate	540
and a wall certificate that state that the certificate holder is	541
authorized to provide nursing services pursuant to the laws of	542
this state. The holder shall keep the wallet certificate on the	543
holder's person while providing nursing services and shall display	544
the wall certificate prominently at the location where the holder	545
primarily practices.	546

(4) The holder of a volunteer's certificate issued pursuant	547
to this section is subject to the immunity provisions regarding	548
the provision of services to indigent and uninsured persons in	549
section 2305.234 of the Revised Code.	550

(F) The board shall adopt rules in accordance with Chapter	551
119. of the Revised Code to administer and enforce this section.	552

Sec. 4723.271.  (A) Upon request of the holder of a nursing	553
license, volunteer's certificate, certificate of authority,	554
dialysis technician certificate, medication aide certificate, or	555
community health worker certificate issued under this chapter, the	556
presentment of proper identification as prescribed in rules	557
adopted by the board of nursing, and payment of the fee authorized	558
under section 4723.08 of the Revised Code, the board of nursing	559
shall provide to the requestor a replacement copy of a wall	560
certificate suitable for framing.	561

(B) Upon request of the holder of a nursing license,	562
volunteer's certificate, certificate of authority, certificate to	563
prescribe, dialysis technician certificate, medication aide	564
certificate, or community health worker certificate issued under	565
this chapter and payment of the fee authorized under section	566
4723.08 of the Revised Code, the board shall verify to an agency	567
of another jurisdiction or foreign country the fact that the	568
person holds such nursing license, volunteer's certificate,	569
certificate of authority, certificate to prescribe, dialysis	570
technician certificate, medication aide certificate, or community	571
health worker certificate.	572

Sec. 4731.295.  (A)(1) As used in this section, "indigent:

573

(a) "Indigent and uninsured person" and "operation" have the	574
same meanings as in section 2305.234 of the Revised Code.	575

(b) "Free clinic" has the same meaning as in section	576
2305.2341 of the Revised Code.	577

(2) For the purposes of this section, a person shall be	578
considered retired from practice if the person's license or	579
certificate has expired with the person's intention of ceasing to	580
practice medicine and surgery or osteopathic medicine and surgery	581
for remuneration.	582

(B) The state medical board may issue, without examination, a	583
volunteer's certificate to a person who is retired from practice	584
so that the person may provide medical services to indigent and	585
uninsured persons at any location, including a free clinic. The	586
board shall deny issuance of a volunteer's certificate to a person	587
who is not qualified under this section to hold a volunteer's	588
certificate.	589

(C) An application for a volunteer's certificate shall	590
include all of the following:	591

(1) A copy of the applicant's degree of medicine or	592
osteopathic medicine.	593

(2) One of the following, as applicable:

594

(a) A copy of the applicant's most recent license or	595
certificate authorizing the practice of medicine and surgery or	596
osteopathic medicine and surgery issued by a jurisdiction in the	597
United States that licenses persons to practice medicine and	598
surgery or osteopathic medicine and surgery.	599

(b) A copy of the applicant's most recent license equivalent	600
to a license to practice medicine and surgery or osteopathic	601
medicine and surgery in one or more branches of the United States	602
armed services that the United States government issued.	603

(3) Evidence of one of the following, as applicable:

604

(a) That the applicant has maintained for at least ten years	605
prior to retirement full licensure in good standing in any	606
jurisdiction in the United States that licenses persons to	607
practice medicine and surgery or osteopathic medicine and surgery.	608

(b) That the applicant has practiced for at least ten years	609
prior to retirement in good standing as a doctor of medicine and	610
surgery or osteopathic medicine and surgery in one or more of the	611
branches of the United States armed services.	612

(4) A notarized statement from the applicant, on a form	613
prescribed by the board, that the applicant will not accept any	614
form of remuneration for any medical services rendered while in	615
possession of a volunteer's certificate.	616

(D) The holder of a volunteer's certificate may provide	617
medical services only to indigent and uninsured persons at any	618
location, including a free clinic. The holder shall not accept any	619
form of remuneration for providing medical services while in	620
possession of the certificate. Except in a medical emergency, the	621
holder shall not perform any operation or deliver babies. The	622
board may revoke a volunteer's certificate on receiving proof	623
satisfactory to the board that the holder has engaged in practice	624
in this state outside the scope of the certificate.	625

(E)(1) A volunteer's certificate shall be valid for a period	626
of three years, unless earlier revoked under division (D) of this	627
section or pursuant to section 4731.22 of the Revised Code. A	628
volunteer's certificate may be renewed upon the application of the	629
holder. The board shall maintain a register of all persons who	630
hold volunteer's certificates. The board shall not charge a fee	631
for issuing or renewing a certificate pursuant to this section.	632

(2) To be eligible for renewal of a volunteer's certificate	633
the holder of the certificate shall certify to the board	634
completion of one hundred fifty hours of continuing medical	635
education that meets the requirements of section 4731.281 of the	636
Revised Code regarding certification by private associations and	637
approval by the board. The board may not renew a certificate if	638
the holder has not complied with the continuing medical education	639
requirements. Any entity for which the holder provides medical	640
services may pay for or reimburse the holder for any costs	641
incurred in obtaining the required continuing medical education	642
credits.	643

(3) The board shall issue to each person who qualifies under	644
this section for a volunteer's certificate a wallet certificate	645
and a wall certificate that state that the certificate holder is	646
authorized to provide medical services pursuant to the laws of	647
this state. The holder shall keep the wallet certificate on the	648
holder's person while providing medical services and shall display	649
the wall certificate prominently at the location where the holder	650
primarily practices.	651

(4) The holder of a volunteer's certificate issued pursuant	652
to this section is subject to the immunity provisions regarding	653
the provision of services to indigent and uninsured persons in	654
section 2305.234 of the Revised Code.	655

(F) The board shall adopt rules in accordance with Chapter	656
119. of the Revised Code to administer and enforce this section.	657

Sec. 5747.01.  Except as otherwise expressly provided or	658
clearly appearing from the context, any term used in this chapter	659
that is not otherwise defined in this section has the same meaning	660
as when used in a comparable context in the laws of the United	661
States relating to federal income taxes or if not used in a	662
comparable context in those laws, has the same meaning as in	663
section 5733.40 of the Revised Code. Any reference in this chapter	664
to the Internal Revenue Code includes other laws of the United	665
States relating to federal income taxes.	666

As used in this chapter:

667

(A) "Adjusted gross income" or "Ohio adjusted gross income"	668
means federal adjusted gross income, as defined and used in the	669
Internal Revenue Code, adjusted as provided in this section:	670

(1) Add interest or dividends on obligations or securities of	671
any state or of any political subdivision or authority of any	672
state, other than this state and its subdivisions and authorities.	673

(2) Add interest or dividends on obligations of any	674
authority, commission, instrumentality, territory, or possession	675
of the United States to the extent that the interest or dividends	676
are exempt from federal income taxes but not from state income	677
taxes.	678

(3) Deduct interest or dividends on obligations of the United	679
States and its territories and possessions or of any authority,	680
commission, or instrumentality of the United States to the extent	681
that the interest or dividends are included in federal adjusted	682
gross income but exempt from state income taxes under the laws of	683
the United States.	684

(4) Deduct disability and survivor's benefits to the extent	685
included in federal adjusted gross income.	686

(5) Deduct benefits under Title II of the Social Security Act	687
and tier 1 railroad retirement benefits to the extent included in	688
federal adjusted gross income under section 86 of the Internal	689
Revenue Code.	690

(6) In the case of a taxpayer who is a beneficiary of a trust	691
that makes an accumulation distribution as defined in section 665	692
of the Internal Revenue Code, add, for the beneficiary's taxable	693
years beginning before 2002, the portion, if any, of such	694
distribution that does not exceed the undistributed net income of	695
the trust for the three taxable years preceding the taxable year	696
in which the distribution is made to the extent that the portion	697
was not included in the trust's taxable income for any of the	698
trust's taxable years beginning in 2002 or thereafter.	699
"Undistributed net income of a trust" means the taxable income of	700
the trust increased by (a)(i) the additions to adjusted gross	701
income required under division (A) of this section and (ii) the	702
personal exemptions allowed to the trust pursuant to section	703
642(b) of the Internal Revenue Code, and decreased by (b)(i) the	704
deductions to adjusted gross income required under division (A) of	705
this section, (ii) the amount of federal income taxes attributable	706
to such income, and (iii) the amount of taxable income that has	707
been included in the adjusted gross income of a beneficiary by	708
reason of a prior accumulation distribution. Any undistributed net	709
income included in the adjusted gross income of a beneficiary	710
shall reduce the undistributed net income of the trust commencing	711
with the earliest years of the accumulation period.	712

(7) Deduct the amount of wages and salaries, if any, not	713
otherwise allowable as a deduction but that would have been	714
allowable as a deduction in computing federal adjusted gross	715
income for the taxable year, had the targeted jobs credit allowed	716
and determined under sections 38, 51, and 52 of the Internal	717
Revenue Code not been in effect.	718

(8) Deduct any interest or interest equivalent on public	719
obligations and purchase obligations to the extent that the	720
interest or interest equivalent is included in federal adjusted	721
gross income.	722

(9) Add any loss or deduct any gain resulting from the sale,	723
exchange, or other disposition of public obligations to the extent	724
that the loss has been deducted or the gain has been included in	725
computing federal adjusted gross income.	726

(10) Deduct or add amounts, as provided under section 5747.70	727
of the Revised Code, related to contributions to variable college	728
savings program accounts made or tuition units purchased pursuant	729
to Chapter 3334. of the Revised Code.	730

(11)(a) Deduct, to the extent not otherwise allowable as a	731
deduction or exclusion in computing federal or Ohio adjusted gross	732
income for the taxable year, the amount the taxpayer paid during	733
the taxable year for medical care insurance and qualified	734
long-term care insurance for the taxpayer, the taxpayer's spouse,	735
and dependents. No deduction for medical care insurance under	736
division (A)(11) of this section shall be allowed either to any	737
taxpayer who is eligible to participate in any subsidized health	738
plan maintained by any employer of the taxpayer or of the	739
taxpayer's spouse, or to any taxpayer who is entitled to, or on	740
application would be entitled to, benefits under part A of Title	741
XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.	742
301, as amended. For the purposes of division (A)(11)(a) of this	743
section, "subsidized health plan" means a health plan for which	744
the employer pays any portion of the plan's cost. The deduction	745
allowed under division (A)(11)(a) of this section shall be the net	746
of any related premium refunds, related premium reimbursements, or	747
related insurance premium dividends received during the taxable	748
year.	749

(b) Deduct, to the extent not otherwise deducted or excluded	750
in computing federal or Ohio adjusted gross income during the	751
taxable year, the amount the taxpayer paid during the taxable	752
year, not compensated for by any insurance or otherwise, for	753
medical care of the taxpayer, the taxpayer's spouse, and	754
dependents, to the extent the expenses exceed seven and one-half	755
per cent of the taxpayer's federal adjusted gross income.	756

(c) Deduct, to the extent not otherwise deducted or excluded	757
in computing federal or Ohio adjusted gross income, any amount	758
included in federal adjusted gross income under section 105 or not	759
excluded under section 106 of the Internal Revenue Code solely	760
because it relates to an accident and health plan for a person who	761
otherwise would be a "qualifying relative" and thus a "dependent"	762
under section 152 of the Internal Revenue Code but for the fact	763
that the person fails to meet the income and support limitations	764
under section 152(d)(1)(B) and (C) of the Internal Revenue Code.	765

(d) For purposes of division (A)(11) of this section,	766
"medical care" has the meaning given in section 213 of the	767
Internal Revenue Code, subject to the special rules, limitations,	768
and exclusions set forth therein, and "qualified long-term care"	769
has the same meaning given in section 7702B(c) of the Internal	770
Revenue Code. Solely for purposes of divisions (A)(11)(a) and (c)	771
of this section, "dependent" includes a person who otherwise would	772
be a "qualifying relative" and thus a "dependent" under section	773
152 of the Internal Revenue Code but for the fact that the person	774
fails to meet the income and support limitations under section	775
152(d)(1)(B) and (C) of the Internal Revenue Code.	776

(12)(a) Deduct any amount included in federal adjusted gross	777
income solely because the amount represents a reimbursement or	778
refund of expenses that in any year the taxpayer had deducted as	779
an itemized deduction pursuant to section 63 of the Internal	780
Revenue Code and applicable United States department of the	781
treasury regulations. The deduction otherwise allowed under	782
division (A)(12)(a) of this section shall be reduced to the extent	783
the reimbursement is attributable to an amount the taxpayer	784
deducted under this section in any taxable year.	785

(b) Add any amount not otherwise included in Ohio adjusted	786
gross income for any taxable year to the extent that the amount is	787
attributable to the recovery during the taxable year of any amount	788
deducted or excluded in computing federal or Ohio adjusted gross	789
income in any taxable year.	790

(13) Deduct any portion of the deduction described in section	791
1341(a)(2) of the Internal Revenue Code, for repaying previously	792
reported income received under a claim of right, that meets both	793
of the following requirements:	794

(a) It is allowable for repayment of an item that was	795
included in the taxpayer's adjusted gross income for a prior	796
taxable year and did not qualify for a credit under division (A)	797
or (B) of section 5747.05 of the Revised Code for that year;	798

(b) It does not otherwise reduce the taxpayer's adjusted	799
gross income for the current or any other taxable year.	800

(14) Deduct an amount equal to the deposits made to, and net	801
investment earnings of, a medical savings account during the	802
taxable year, in accordance with section 3924.66 of the Revised	803
Code. The deduction allowed by division (A)(14) of this section	804
does not apply to medical savings account deposits and earnings	805
otherwise deducted or excluded for the current or any other	806
taxable year from the taxpayer's federal adjusted gross income.	807

(15)(a) Add an amount equal to the funds withdrawn from a	808
medical savings account during the taxable year, and the net	809
investment earnings on those funds, when the funds withdrawn were	810
used for any purpose other than to reimburse an account holder	811
for, or to pay, eligible medical expenses, in accordance with	812
section 3924.66 of the Revised Code;	813

(b) Add the amounts distributed from a medical savings	814
account under division (A)(2) of section 3924.68 of the Revised	815
Code during the taxable year.	816

(16) Add any amount claimed as a credit under section	817
5747.059 or 5747.65 of the Revised Code to the extent that such	818
amount satisfies either of the following:	819

(a) The amount was deducted or excluded from the computation	820
of the taxpayer's federal adjusted gross income as required to be	821
reported for the taxpayer's taxable year under the Internal	822
Revenue Code;	823

(b) The amount resulted in a reduction of the taxpayer's	824
federal adjusted gross income as required to be reported for any	825
of the taxpayer's taxable years under the Internal Revenue Code.	826

(17) Deduct the amount contributed by the taxpayer to an	827
individual development account program established by a county	828
department of job and family services pursuant to sections 329.11	829
to 329.14 of the Revised Code for the purpose of matching funds	830
deposited by program participants. On request of the tax	831
commissioner, the taxpayer shall provide any information that, in	832
the tax commissioner's opinion, is necessary to establish the	833
amount deducted under division (A)(17) of this section.	834

(18) Beginning in taxable year 2001 but not for any taxable	835
year beginning after December 31, 2005, if the taxpayer is married	836
and files a joint return and the combined federal adjusted gross	837
income of the taxpayer and the taxpayer's spouse for the taxable	838
year does not exceed one hundred thousand dollars, or if the	839
taxpayer is single and has a federal adjusted gross income for the	840
taxable year not exceeding fifty thousand dollars, deduct amounts	841
paid during the taxable year for qualified tuition and fees paid	842
to an eligible institution for the taxpayer, the taxpayer's	843
spouse, or any dependent of the taxpayer, who is a resident of	844
this state and is enrolled in or attending a program that	845
culminates in a degree or diploma at an eligible institution. The	846
deduction may be claimed only to the extent that qualified tuition	847
and fees are not otherwise deducted or excluded for any taxable	848
year from federal or Ohio adjusted gross income. The deduction may	849
not be claimed for educational expenses for which the taxpayer	850
claims a credit under section 5747.27 of the Revised Code.	851

(19) Add any reimbursement received during the taxable year	852
of any amount the taxpayer deducted under division (A)(18) of this	853
section in any previous taxable year to the extent the amount is	854
not otherwise included in Ohio adjusted gross income.	855

(20)(a)(i) Subject to divisions (A)(20)(a)(iii), (iv), and	856
(v) of this section, add five-sixths of the amount of depreciation	857
expense allowed by subsection (k) of section 168 of the Internal	858
Revenue Code, including the taxpayer's proportionate or	859
distributive share of the amount of depreciation expense allowed	860
by that subsection to a pass-through entity in which the taxpayer	861
has a direct or indirect ownership interest.	862

(ii) Subject to divisions (A)(20)(a)(iii), (iv), and (v) of	863
this section, add five-sixths of the amount of qualifying section	864
179 depreciation expense, including the taxpayer's proportionate	865
or distributive share of the amount of qualifying section 179	866
depreciation expense allowed to any pass-through entity in which	867
the taxpayer has a direct or indirect ownership interest.	868

(iii) Subject to division (A)(20)(a)(v) of this section, for	869
taxable years beginning in 2012 or thereafter, if the increase in	870
income taxes withheld by the taxpayer is equal to or greater than	871
ten per cent of income taxes withheld by the taxpayer during the	872
taxpayer's immediately preceding taxable year, "two-thirds" shall	873
be substituted for "five-sixths" for the purpose of divisions	874
(A)(20)(a)(i) and (ii) of this section.	875

(iv) Subject to division (A)(20)(a)(v) of this section, for	876
taxable years beginning in 2012 or thereafter, a taxpayer is not	877
required to add an amount under division (A)(20) of this section	878
if the increase in income taxes withheld by the taxpayer and by	879
any pass-through entity in which the taxpayer has a direct or	880
indirect ownership interest is equal to or greater than the sum of	881
(I) the amount of qualifying section 179 depreciation expense and	882
(II) the amount of depreciation expense allowed to the taxpayer by	883
subsection (k) of section 168 of the Internal Revenue Code, and	884
including the taxpayer's proportionate or distributive shares of	885
such amounts allowed to any such pass-through entities.	886

(v) If a taxpayer directly or indirectly incurs a net	887
operating loss for the taxable year for federal income tax	888
purposes, to the extent such loss resulted from depreciation	889
expense allowed by subsection (k) of section 168 of the Internal	890
Revenue Code and by qualifying section 179 depreciation expense,	891
"the entire" shall be substituted for "five-sixths of the" for the	892
purpose of divisions (A)(20)(a)(i) and (ii) of this section.	893

The tax commissioner, under procedures established by the	894
commissioner, may waive the add-backs related to a pass-through	895
entity if the taxpayer owns, directly or indirectly, less than	896
five per cent of the pass-through entity.	897

(b) Nothing in division (A)(20) of this section shall be	898
construed to adjust or modify the adjusted basis of any asset.	899

(c) To the extent the add-back required under division	900
(A)(20)(a) of this section is attributable to property generating	901
nonbusiness income or loss allocated under section 5747.20 of the	902
Revised Code, the add-back shall be sitused to the same location	903
as the nonbusiness income or loss generated by the property for	904
the purpose of determining the credit under division (A) of	905
section 5747.05 of the Revised Code. Otherwise, the add-back shall	906
be apportioned, subject to one or more of the four alternative	907
methods of apportionment enumerated in section 5747.21 of the	908
Revised Code.	909

(d) For the purposes of division (A)(20)(a)(v) of this	910
section, net operating loss carryback and carryforward shall not	911
include the allowance of any net operating loss deduction	912
carryback or carryforward to the taxable year to the extent such	913
loss resulted from depreciation allowed by section 168(k) of the	914
Internal Revenue Code and by the qualifying section 179	915
depreciation expense amount.	916

(e) For the purposes of divisions (A)(20) and (21) of this	917
section:	918

(i) "Income taxes withheld" means the total amount withheld	919
and remitted under sections 5747.06 and 5747.07 of the Revised	920
Code by an employer during the employer's taxable year.	921

(ii) "Increase in income taxes withheld" means the amount by	922
which the amount of income taxes withheld by an employer during	923
the employer's current taxable year exceeds the amount of income	924
taxes withheld by that employer during the employer's immediately	925
preceding taxable year.	926

(iii) "Qualifying section 179 depreciation expense" means the	927
difference between (I) the amount of depreciation expense directly	928
or indirectly allowed to a taxpayer under section 179 of the	929
Internal Revised Code, and (II) the amount of depreciation expense	930
directly or indirectly allowed to the taxpayer under section 179	931
of the Internal Revenue Code as that section existed on December	932
31, 2002.	933

(21)(a) If the taxpayer was required to add an amount under	934
division (A)(20)(a) of this section for a taxable year, deduct one	935
of the following:	936

(i) One-fifth of the amount so added for each of the five	937
succeeding taxable years if the amount so added was five-sixths of	938
qualifying section 179 depreciation expense or depreciation	939
expense allowed by subsection (k) of section 168 of the Internal	940
Revenue Code;	941

(ii) One-half of the amount so added for each of the two	942
succeeding taxable years if the amount so added was two-thirds of	943
such depreciation expense;	944

(iii) One-sixth of the amount so added for each of the six	945
succeeding taxable years if the entire amount of such depreciation	946
expense was so added.	947

(b) If the amount deducted under division (A)(21)(a) of this	948
section is attributable to an add-back allocated under division	949
(A)(20)(c) of this section, the amount deducted shall be sitused	950
to the same location. Otherwise, the add-back shall be apportioned	951
using the apportionment factors for the taxable year in which the	952
deduction is taken, subject to one or more of the four alternative	953
methods of apportionment enumerated in section 5747.21 of the	954
Revised Code.	955

(c) No deduction is available under division (A)(21)(a) of	956
this section with regard to any depreciation allowed by section	957
168(k) of the Internal Revenue Code and by the qualifying section	958
179 depreciation expense amount to the extent that such	959
depreciation results in or increases a federal net operating loss	960
carryback or carryforward. If no such deduction is available for a	961
taxable year, the taxpayer may carry forward the amount not	962
deducted in such taxable year to the next taxable year and add	963
that amount to any deduction otherwise available under division	964
(A)(21)(a) of this section for that next taxable year. The	965
carryforward of amounts not so deducted shall continue until the	966
entire addition required by division (A)(20)(a) of this section	967
has been deducted.	968

(d) No refund shall be allowed as a result of adjustments	969
made by division (A)(21) of this section.	970

(22) Deduct, to the extent not otherwise deducted or excluded	971
in computing federal or Ohio adjusted gross income for the taxable	972
year, the amount the taxpayer received during the taxable year as	973
reimbursement for life insurance premiums under section 5919.31 of	974
the Revised Code.	975

(23) Deduct, to the extent not otherwise deducted or excluded	976
in computing federal or Ohio adjusted gross income for the taxable	977
year, the amount the taxpayer received during the taxable year as	978
a death benefit paid by the adjutant general under section 5919.33	979
of the Revised Code.	980

(24) Deduct, to the extent included in federal adjusted gross	981
income and not otherwise allowable as a deduction or exclusion in	982
computing federal or Ohio adjusted gross income for the taxable	983
year, military pay and allowances received by the taxpayer during	984
the taxable year for active duty service in the United States	985
army, air force, navy, marine corps, or coast guard or reserve	986
components thereof or the national guard. The deduction may not be	987
claimed for military pay and allowances received by the taxpayer	988
while the taxpayer is stationed in this state.	989

(25) Deduct, to the extent not otherwise allowable as a	990
deduction or exclusion in computing federal or Ohio adjusted gross	991
income for the taxable year and not otherwise compensated for by	992
any other source, the amount of qualified organ donation expenses	993
incurred by the taxpayer during the taxable year, not to exceed	994
ten thousand dollars. A taxpayer may deduct qualified organ	995
donation expenses only once for all taxable years beginning with	996
taxable years beginning in 2007.	997

For the purposes of division (A)(25) of this section:

998

(a) "Human organ" means all or any portion of a human liver,	999
pancreas, kidney, intestine, or lung, and any portion of human	1000
bone marrow.	1001

(b) "Qualified organ donation expenses" means travel	1002
expenses, lodging expenses, and wages and salary forgone by a	1003
taxpayer in connection with the taxpayer's donation, while living,	1004
of one or more of the taxpayer's human organs to another human	1005
being.	1006

(26) Deduct, to the extent not otherwise deducted or excluded	1007
in computing federal or Ohio adjusted gross income for the taxable	1008
year, amounts received by the taxpayer as retired personnel pay	1009
for service in the uniformed services or reserve components	1010
thereof, or the national guard, or received by the surviving	1011
spouse or former spouse of such a taxpayer under the survivor	1012
benefit plan on account of such a taxpayer's death. If the	1013
taxpayer receives income on account of retirement paid under the	1014
federal civil service retirement system or federal employees	1015
retirement system, or under any successor retirement program	1016
enacted by the congress of the United States that is established	1017
and maintained for retired employees of the United States	1018
government, and such retirement income is based, in whole or in	1019
part, on credit for the taxpayer's uniformed service, the	1020
deduction allowed under this division shall include only that	1021
portion of such retirement income that is attributable to the	1022
taxpayer's uniformed service, to the extent that portion of such	1023
retirement income is otherwise included in federal adjusted gross	1024
income and is not otherwise deducted under this section. Any	1025
amount deducted under division (A)(26) of this section is not	1026
included in a taxpayer's adjusted gross income for the purposes of	1027
section 5747.055 of the Revised Code. No amount may be deducted	1028
under division (A)(26) of this section on the basis of which a	1029
credit was claimed under section 5747.055 of the Revised Code.	1030

(27) Deduct, to the extent not otherwise deducted or excluded	1031
in computing federal or Ohio adjusted gross income for the taxable	1032
year, the amount the taxpayer received during the taxable year	1033
from the military injury relief fund created in section 5101.98 of	1034
the Revised Code.	1035

(28) Deduct, to the extent not otherwise deducted or excluded	1036
in computing federal or Ohio adjusted gross income for the taxable	1037
year, the amount the taxpayer received as a veterans bonus during	1038
the taxable year from the Ohio department of veterans services as	1039
authorized by Section 2r of Article VIII, Ohio Constitution.	1040

(29) Deduct, to the extent not otherwise deducted or excluded	1041
in computing federal or Ohio adjusted gross income for the taxable	1042
year, any income derived from a transfer agreement or from the	1043
enterprise transferred under that agreement under section 4313.02	1044
of the Revised Code.	1045

(30) Deduct, to the extent not otherwise deducted or excluded	1046
in computing federal or Ohio adjusted gross income for the taxable	1047
year, Ohio college opportunity or federal Pell grant amounts	1048
received by the taxpayer or the taxpayer's spouse or dependent	1049
pursuant to section 3333.122 of the Revised Code or 20 U.S.C.	1050
1070a, et seq., and used to pay room or board furnished by the	1051
educational institution for which the grant was awarded at the	1052
institution's facilities, including meal plans administered by the	1053
institution. For the purposes of this division, receipt of a grant	1054
includes the distribution of a grant directly to an educational	1055
institution and the crediting of the grant to the enrollee's	1056
account with the institution.	1057

(31) Deduct one-half of the taxpayer's Ohio small business	1058
investor income, the deduction not to exceed sixty-two thousand	1059
five hundred dollars for each spouse if spouses file separate	1060
returns under section 5747.08 of the Revised Code or one hundred	1061
twenty-five thousand dollars for all other taxpayers. No	1062
pass-through entity may claim a deduction under this division.	1063

For the purposes of this division, "Ohio small business	1064
investor income" means the portion of a taxpayer's adjusted gross	1065
income that is business income reduced by deductions from business	1066
income and apportioned or allocated to this state under sections	1067
5747.21 and 5747.22 of the Revised Code, to the extent not	1068
otherwise deducted or excluded in computing federal or Ohio	1069
adjusted gross income for the taxable year.	1070

(32) Deduct the amount allowed under section 5747.78 of the	1071
Revised Code for a physician, dentist, nurse, medical assistant,	1072
phlebotomist, or medical secretary who provided services free of	1073
charge to a free clinic during the taxable year.	1074

(B) "Business income" means income, including gain or loss,	1075
arising from transactions, activities, and sources in the regular	1076
course of a trade or business and includes income, gain, or loss	1077
from real property, tangible property, and intangible property if	1078
the acquisition, rental, management, and disposition of the	1079
property constitute integral parts of the regular course of a	1080
trade or business operation. "Business income" includes income,	1081
including gain or loss, from a partial or complete liquidation of	1082
a business, including, but not limited to, gain or loss from the	1083
sale or other disposition of goodwill.	1084

(C) "Nonbusiness income" means all income other than business	1085
income and may include, but is not limited to, compensation, rents	1086
and royalties from real or tangible personal property, capital	1087
gains, interest, dividends and distributions, patent or copyright	1088
royalties, or lottery winnings, prizes, and awards.	1089

(D) "Compensation" means any form of remuneration paid to an	1090
employee for personal services.	1091

(E) "Fiduciary" means a guardian, trustee, executor,	1092
administrator, receiver, conservator, or any other person acting	1093
in any fiduciary capacity for any individual, trust, or estate.	1094

(F) "Fiscal year" means an accounting period of twelve months	1095
ending on the last day of any month other than December.	1096

(G) "Individual" means any natural person.

1097

(H) "Internal Revenue Code" means the "Internal Revenue Code	1098
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.	1099

(I) "Resident" means any of the following, provided that	1100
division (I)(3) of this section applies only to taxable years of a	1101
trust beginning in 2002 or thereafter:	1102

(1) An individual who is domiciled in this state, subject to	1103
section 5747.24 of the Revised Code;	1104

(2) The estate of a decedent who at the time of death was	1105
domiciled in this state. The domicile tests of section 5747.24 of	1106
the Revised Code are not controlling for purposes of division	1107
(I)(2) of this section.	1108

(3) A trust that, in whole or part, resides in this state. If	1109
only part of a trust resides in this state, the trust is a	1110
resident only with respect to that part.	1111

For the purposes of division (I)(3) of this section:

1112

(a) A trust resides in this state for the trust's current	1113
taxable year to the extent, as described in division (I)(3)(d) of	1114
this section, that the trust consists directly or indirectly, in	1115
whole or in part, of assets, net of any related liabilities, that	1116
were transferred, or caused to be transferred, directly or	1117
indirectly, to the trust by any of the following:	1118

(i) A person, a court, or a governmental entity or	1119
instrumentality on account of the death of a decedent, but only if	1120
the trust is described in division (I)(3)(e)(i) or (ii) of this	1121
section;	1122

(ii) A person who was domiciled in this state for the	1123
purposes of this chapter when the person directly or indirectly	1124
transferred assets to an irrevocable trust, but only if at least	1125
one of the trust's qualifying beneficiaries is domiciled in this	1126
state for the purposes of this chapter during all or some portion	1127
of the trust's current taxable year;	1128

(iii) A person who was domiciled in this state for the	1129
purposes of this chapter when the trust document or instrument or	1130
part of the trust document or instrument became irrevocable, but	1131
only if at least one of the trust's qualifying beneficiaries is a	1132
resident domiciled in this state for the purposes of this chapter	1133
during all or some portion of the trust's current taxable year. If	1134
a trust document or instrument became irrevocable upon the death	1135
of a person who at the time of death was domiciled in this state	1136
for purposes of this chapter, that person is a person described in	1137
division (I)(3)(a)(iii) of this section.	1138

(b) A trust is irrevocable to the extent that the transferor	1139
is not considered to be the owner of the net assets of the trust	1140
under sections 671 to 678 of the Internal Revenue Code.	1141

(c) With respect to a trust other than a charitable lead	1142
trust, "qualifying beneficiary" has the same meaning as "potential	1143
current beneficiary" as defined in section 1361(e)(2) of the	1144
Internal Revenue Code, and with respect to a charitable lead trust	1145
"qualifying beneficiary" is any current, future, or contingent	1146
beneficiary, but with respect to any trust "qualifying	1147
beneficiary" excludes a person or a governmental entity or	1148
instrumentality to any of which a contribution would qualify for	1149
the charitable deduction under section 170 of the Internal Revenue	1150
Code.	1151

(d) For the purposes of division (I)(3)(a) of this section,	1152
the extent to which a trust consists directly or indirectly, in	1153
whole or in part, of assets, net of any related liabilities, that	1154
were transferred directly or indirectly, in whole or part, to the	1155
trust by any of the sources enumerated in that division shall be	1156
ascertained by multiplying the fair market value of the trust's	1157
assets, net of related liabilities, by the qualifying ratio, which	1158
shall be computed as follows:	1159

(i) The first time the trust receives assets, the numerator	1160
of the qualifying ratio is the fair market value of those assets	1161
at that time, net of any related liabilities, from sources	1162
enumerated in division (I)(3)(a) of this section. The denominator	1163
of the qualifying ratio is the fair market value of all the	1164
trust's assets at that time, net of any related liabilities.	1165

(ii) Each subsequent time the trust receives assets, a	1166
revised qualifying ratio shall be computed. The numerator of the	1167
revised qualifying ratio is the sum of (1) the fair market value	1168
of the trust's assets immediately prior to the subsequent	1169
transfer, net of any related liabilities, multiplied by the	1170
qualifying ratio last computed without regard to the subsequent	1171
transfer, and (2) the fair market value of the subsequently	1172
transferred assets at the time transferred, net of any related	1173
liabilities, from sources enumerated in division (I)(3)(a) of this	1174
section. The denominator of the revised qualifying ratio is the	1175
fair market value of all the trust's assets immediately after the	1176
subsequent transfer, net of any related liabilities.	1177

(iii) Whether a transfer to the trust is by or from any of	1178
the sources enumerated in division (I)(3)(a) of this section shall	1179
be ascertained without regard to the domicile of the trust's	1180
beneficiaries.	1181

(e) For the purposes of division (I)(3)(a)(i) of this	1182
section:	1183

(i) A trust is described in division (I)(3)(e)(i) of this	1184
section if the trust is a testamentary trust and the testator of	1185
that testamentary trust was domiciled in this state at the time of	1186
the testator's death for purposes of the taxes levied under	1187
Chapter 5731. of the Revised Code.	1188

(ii) A trust is described in division (I)(3)(e)(ii) of this	1189
section if the transfer is a qualifying transfer described in any	1190
of divisions (I)(3)(f)(i) to (vi) of this section, the trust is an	1191
irrevocable inter vivos trust, and at least one of the trust's	1192
qualifying beneficiaries is domiciled in this state for purposes	1193
of this chapter during all or some portion of the trust's current	1194
taxable year.	1195

(f) For the purposes of division (I)(3)(e)(ii) of this	1196
section, a "qualifying transfer" is a transfer of assets, net of	1197
any related liabilities, directly or indirectly to a trust, if the	1198
transfer is described in any of the following:	1199

(i) The transfer is made to a trust, created by the decedent	1200
before the decedent's death and while the decedent was domiciled	1201
in this state for the purposes of this chapter, and, prior to the	1202
death of the decedent, the trust became irrevocable while the	1203
decedent was domiciled in this state for the purposes of this	1204
chapter.	1205

(ii) The transfer is made to a trust to which the decedent,	1206
prior to the decedent's death, had directly or indirectly	1207
transferred assets, net of any related liabilities, while the	1208
decedent was domiciled in this state for the purposes of this	1209
chapter, and prior to the death of the decedent the trust became	1210
irrevocable while the decedent was domiciled in this state for the	1211
purposes of this chapter.	1212

(iii) The transfer is made on account of a contractual	1213
relationship existing directly or indirectly between the	1214
transferor and either the decedent or the estate of the decedent	1215
at any time prior to the date of the decedent's death, and the	1216
decedent was domiciled in this state at the time of death for	1217
purposes of the taxes levied under Chapter 5731. of the Revised	1218
Code.	1219

(iv) The transfer is made to a trust on account of a	1220
contractual relationship existing directly or indirectly between	1221
the transferor and another person who at the time of the	1222
decedent's death was domiciled in this state for purposes of this	1223
chapter.	1224

(v) The transfer is made to a trust on account of the will of	1225
a testator who was domiciled in this state at the time of the	1226
testator's death for purposes of the taxes levied under Chapter	1227
5731. of the Revised Code.	1228

(vi) The transfer is made to a trust created by or caused to	1229
be created by a court, and the trust was directly or indirectly	1230
created in connection with or as a result of the death of an	1231
individual who, for purposes of the taxes levied under Chapter	1232
5731. of the Revised Code, was domiciled in this state at the time	1233
of the individual's death.	1234

(g) The tax commissioner may adopt rules to ascertain the	1235
part of a trust residing in this state.	1236

(J) "Nonresident" means an individual or estate that is not a	1237
resident. An individual who is a resident for only part of a	1238
taxable year is a nonresident for the remainder of that taxable	1239
year.	1240

(K) "Pass-through entity" has the same meaning as in section	1241
5733.04 of the Revised Code.	1242

(L) "Return" means the notifications and reports required to	1243
be filed pursuant to this chapter for the purpose of reporting the	1244
tax due and includes declarations of estimated tax when so	1245
required.	1246

(M) "Taxable year" means the calendar year or the taxpayer's	1247
fiscal year ending during the calendar year, or fractional part	1248
thereof, upon which the adjusted gross income is calculated	1249
pursuant to this chapter.	1250

(N) "Taxpayer" means any person subject to the tax imposed by	1251
section 5747.02 of the Revised Code or any pass-through entity	1252
that makes the election under division (D) of section 5747.08 of	1253
the Revised Code.	1254

(O) "Dependents" means dependents as defined in the Internal	1255
Revenue Code and as claimed in the taxpayer's federal income tax	1256
return for the taxable year or which the taxpayer would have been	1257
permitted to claim had the taxpayer filed a federal income tax	1258
return.	1259

(P) "Principal county of employment" means, in the case of a	1260
nonresident, the county within the state in which a taxpayer	1261
performs services for an employer or, if those services are	1262
performed in more than one county, the county in which the major	1263
portion of the services are performed.	1264

(Q) As used in sections 5747.50 to 5747.55 of the Revised	1265
Code:	1266

(1) "Subdivision" means any county, municipal corporation,	1267
park district, or township.	1268

(2) "Essential local government purposes" includes all	1269
functions that any subdivision is required by general law to	1270
exercise, including like functions that are exercised under a	1271
charter adopted pursuant to the Ohio Constitution.	1272

(R) "Overpayment" means any amount already paid that exceeds	1273
the figure determined to be the correct amount of the tax.	1274

(S) "Taxable income" or "Ohio taxable income" applies only to	1275
estates and trusts, and means federal taxable income, as defined	1276
and used in the Internal Revenue Code, adjusted as follows:	1277

(1) Add interest or dividends, net of ordinary, necessary,	1278
and reasonable expenses not deducted in computing federal taxable	1279
income, on obligations or securities of any state or of any	1280
political subdivision or authority of any state, other than this	1281
state and its subdivisions and authorities, but only to the extent	1282
that such net amount is not otherwise includible in Ohio taxable	1283
income and is described in either division (S)(1)(a) or (b) of	1284
this section:	1285

(a) The net amount is not attributable to the S portion of an	1286
electing small business trust and has not been distributed to	1287
beneficiaries for the taxable year;	1288

(b) The net amount is attributable to the S portion of an	1289
electing small business trust for the taxable year.	1290

(2) Add interest or dividends, net of ordinary, necessary,	1291
and reasonable expenses not deducted in computing federal taxable	1292
income, on obligations of any authority, commission,	1293
instrumentality, territory, or possession of the United States to	1294
the extent that the interest or dividends are exempt from federal	1295
income taxes but not from state income taxes, but only to the	1296
extent that such net amount is not otherwise includible in Ohio	1297
taxable income and is described in either division (S)(1)(a) or	1298
(b) of this section;	1299

(3) Add the amount of personal exemption allowed to the	1300
estate pursuant to section 642(b) of the Internal Revenue Code;	1301

(4) Deduct interest or dividends, net of related expenses	1302
deducted in computing federal taxable income, on obligations of	1303
the United States and its territories and possessions or of any	1304
authority, commission, or instrumentality of the United States to	1305
the extent that the interest or dividends are exempt from state	1306
taxes under the laws of the United States, but only to the extent	1307
that such amount is included in federal taxable income and is	1308
described in either division (S)(1)(a) or (b) of this section;	1309

(5) Deduct the amount of wages and salaries, if any, not	1310
otherwise allowable as a deduction but that would have been	1311
allowable as a deduction in computing federal taxable income for	1312
the taxable year, had the targeted jobs credit allowed under	1313
sections 38, 51, and 52 of the Internal Revenue Code not been in	1314
effect, but only to the extent such amount relates either to	1315
income included in federal taxable income for the taxable year or	1316
to income of the S portion of an electing small business trust for	1317
the taxable year;	1318

(6) Deduct any interest or interest equivalent, net of	1319
related expenses deducted in computing federal taxable income, on	1320
public obligations and purchase obligations, but only to the	1321
extent that such net amount relates either to income included in	1322
federal taxable income for the taxable year or to income of the S	1323
portion of an electing small business trust for the taxable year;	1324

(7) Add any loss or deduct any gain resulting from sale,	1325
exchange, or other disposition of public obligations to the extent	1326
that such loss has been deducted or such gain has been included in	1327
computing either federal taxable income or income of the S portion	1328
of an electing small business trust for the taxable year;	1329

(8) Except in the case of the final return of an estate, add	1330
any amount deducted by the taxpayer on both its Ohio estate tax	1331
return pursuant to section 5731.14 of the Revised Code, and on its	1332
federal income tax return in determining federal taxable income;	1333

(9)(a) Deduct any amount included in federal taxable income	1334
solely because the amount represents a reimbursement or refund of	1335
expenses that in a previous year the decedent had deducted as an	1336
itemized deduction pursuant to section 63 of the Internal Revenue	1337
Code and applicable treasury regulations. The deduction otherwise	1338
allowed under division (S)(9)(a) of this section shall be reduced	1339
to the extent the reimbursement is attributable to an amount the	1340
taxpayer or decedent deducted under this section in any taxable	1341
year.	1342

(b) Add any amount not otherwise included in Ohio taxable	1343
income for any taxable year to the extent that the amount is	1344
attributable to the recovery during the taxable year of any amount	1345
deducted or excluded in computing federal or Ohio taxable income	1346
in any taxable year, but only to the extent such amount has not	1347
been distributed to beneficiaries for the taxable year.	1348

(10) Deduct any portion of the deduction described in section	1349
1341(a)(2) of the Internal Revenue Code, for repaying previously	1350
reported income received under a claim of right, that meets both	1351
of the following requirements:	1352

(a) It is allowable for repayment of an item that was	1353
included in the taxpayer's taxable income or the decedent's	1354
adjusted gross income for a prior taxable year and did not qualify	1355
for a credit under division (A) or (B) of section 5747.05 of the	1356
Revised Code for that year.	1357

(b) It does not otherwise reduce the taxpayer's taxable	1358
income or the decedent's adjusted gross income for the current or	1359
any other taxable year.	1360

(11) Add any amount claimed as a credit under section	1361
5747.059 or 5747.65 of the Revised Code to the extent that the	1362
amount satisfies either of the following:	1363

(a) The amount was deducted or excluded from the computation	1364
of the taxpayer's federal taxable income as required to be	1365
reported for the taxpayer's taxable year under the Internal	1366
Revenue Code;	1367

(b) The amount resulted in a reduction in the taxpayer's	1368
federal taxable income as required to be reported for any of the	1369
taxpayer's taxable years under the Internal Revenue Code.	1370

(12) Deduct any amount, net of related expenses deducted in	1371
computing federal taxable income, that a trust is required to	1372
report as farm income on its federal income tax return, but only	1373
if the assets of the trust include at least ten acres of land	1374
satisfying the definition of "land devoted exclusively to	1375
agricultural use" under section 5713.30 of the Revised Code,	1376
regardless of whether the land is valued for tax purposes as such	1377
land under sections 5713.30 to 5713.38 of the Revised Code. If the	1378
trust is a pass-through entity investor, section 5747.231 of the	1379
Revised Code applies in ascertaining if the trust is eligible to	1380
claim the deduction provided by division (S)(12) of this section	1381
in connection with the pass-through entity's farm income.	1382

Except for farm income attributable to the S portion of an	1383
electing small business trust, the deduction provided by division	1384
(S)(12) of this section is allowed only to the extent that the	1385
trust has not distributed such farm income. Division (S)(12) of	1386
this section applies only to taxable years of a trust beginning in	1387
2002 or thereafter.	1388

(13) Add the net amount of income described in section 641(c)	1389
of the Internal Revenue Code to the extent that amount is not	1390
included in federal taxable income.	1391

(14) Add or deduct the amount the taxpayer would be required	1392
to add or deduct under division (A)(20) or (21) of this section if	1393
the taxpayer's Ohio taxable income were computed in the same	1394
manner as an individual's Ohio adjusted gross income is computed	1395
under this section. In the case of a trust, division (S)(14) of	1396
this section applies only to any of the trust's taxable years	1397
beginning in 2002 or thereafter.	1398

(T) "School district income" and "school district income tax"	1399
have the same meanings as in section 5748.01 of the Revised Code.	1400

(U) As used in divisions (A)(8), (A)(9), (S)(6), and (S)(7)	1401
of this section, "public obligations," "purchase obligations," and	1402
"interest or interest equivalent" have the same meanings as in	1403
section 5709.76 of the Revised Code.	1404

(V) "Limited liability company" means any limited liability	1405
company formed under Chapter 1705. of the Revised Code or under	1406
the laws of any other state.	1407

(W) "Pass-through entity investor" means any person who,	1408
during any portion of a taxable year of a pass-through entity, is	1409
a partner, member, shareholder, or equity investor in that	1410
pass-through entity.	1411

(X) "Banking day" has the same meaning as in section 1304.01	1412
of the Revised Code.	1413

(Y) "Month" means a calendar month.

1414

(Z) "Quarter" means the first three months, the second three	1415
months, the third three months, or the last three months of the	1416
taxpayer's taxable year.	1417

(AA)(1) "Eligible institution" means a state university or	1418
state institution of higher education as defined in section	1419
3345.011 of the Revised Code, or a private, nonprofit college,	1420
university, or other post-secondary institution located in this	1421
state that possesses a certificate of authorization issued by the	1422
Ohio board of regents pursuant to Chapter 1713. of the Revised	1423
Code or a certificate of registration issued by the state board of	1424
career colleges and schools under Chapter 3332. of the Revised	1425
Code.	1426

(2) "Qualified tuition and fees" means tuition and fees	1427
imposed by an eligible institution as a condition of enrollment or	1428
attendance, not exceeding two thousand five hundred dollars in	1429
each of the individual's first two years of post-secondary	1430
education. If the individual is a part-time student, "qualified	1431
tuition and fees" includes tuition and fees paid for the academic	1432
equivalent of the first two years of post-secondary education	1433
during a maximum of five taxable years, not exceeding a total of	1434
five thousand dollars. "Qualified tuition and fees" does not	1435
include:	1436

(a) Expenses for any course or activity involving sports,	1437
games, or hobbies unless the course or activity is part of the	1438
individual's degree or diploma program;	1439

(b) The cost of books, room and board, student activity fees,	1440
athletic fees, insurance expenses, or other expenses unrelated to	1441
the individual's academic course of instruction;	1442

(c) Tuition, fees, or other expenses paid or reimbursed	1443
through an employer, scholarship, grant in aid, or other	1444
educational benefit program.	1445

(BB)(1) "Modified business income" means the business income	1446
included in a trust's Ohio taxable income after such taxable	1447
income is first reduced by the qualifying trust amount, if any.	1448

(2) "Qualifying trust amount" of a trust means capital gains	1449
and losses from the sale, exchange, or other disposition of equity	1450
or ownership interests in, or debt obligations of, a qualifying	1451
investee to the extent included in the trust's Ohio taxable	1452
income, but only if the following requirements are satisfied:	1453

(a) The book value of the qualifying investee's physical	1454
assets in this state and everywhere, as of the last day of the	1455
qualifying investee's fiscal or calendar year ending immediately	1456
prior to the date on which the trust recognizes the gain or loss,	1457
is available to the trust.	1458

(b) The requirements of section 5747.011 of the Revised Code	1459
are satisfied for the trust's taxable year in which the trust	1460
recognizes the gain or loss.	1461

Any gain or loss that is not a qualifying trust amount is	1462
modified business income, qualifying investment income, or	1463
modified nonbusiness income, as the case may be.	1464

(3) "Modified nonbusiness income" means a trust's Ohio	1465
taxable income other than modified business income, other than the	1466
qualifying trust amount, and other than qualifying investment	1467
income, as defined in section 5747.012 of the Revised Code, to the	1468
extent such qualifying investment income is not otherwise part of	1469
modified business income.	1470

(4) "Modified Ohio taxable income" applies only to trusts,	1471
and means the sum of the amounts described in divisions (BB)(4)(a)	1472
to (c) of this section:	1473

(a) The fraction, calculated under section 5747.013, and	1474
applying section 5747.231 of the Revised Code, multiplied by the	1475
sum of the following amounts:	1476

(i) The trust's modified business income;

1477

(ii) The trust's qualifying investment income, as defined in	1478
section 5747.012 of the Revised Code, but only to the extent the	1479
qualifying investment income does not otherwise constitute	1480
modified business income and does not otherwise constitute a	1481
qualifying trust amount.	1482

(b) The qualifying trust amount multiplied by a fraction, the	1483
numerator of which is the sum of the book value of the qualifying	1484
investee's physical assets in this state on the last day of the	1485
qualifying investee's fiscal or calendar year ending immediately	1486
prior to the day on which the trust recognizes the qualifying	1487
trust amount, and the denominator of which is the sum of the book	1488
value of the qualifying investee's total physical assets	1489
everywhere on the last day of the qualifying investee's fiscal or	1490
calendar year ending immediately prior to the day on which the	1491
trust recognizes the qualifying trust amount. If, for a taxable	1492
year, the trust recognizes a qualifying trust amount with respect	1493
to more than one qualifying investee, the amount described in	1494
division (BB)(4)(b) of this section shall equal the sum of the	1495
products so computed for each such qualifying investee.	1496

(c)(i) With respect to a trust or portion of a trust that is	1497
a resident as ascertained in accordance with division (I)(3)(d) of	1498
this section, its modified nonbusiness income.	1499

(ii) With respect to a trust or portion of a trust that is	1500
not a resident as ascertained in accordance with division	1501
(I)(3)(d) of this section, the amount of its modified nonbusiness	1502
income satisfying the descriptions in divisions (B)(2) to (5) of	1503
section 5747.20 of the Revised Code, except as otherwise provided	1504
in division (BB)(4)(c)(ii) of this section. With respect to a	1505
trust or portion of a trust that is not a resident as ascertained	1506
in accordance with division (I)(3)(d) of this section, the trust's	1507
portion of modified nonbusiness income recognized from the sale,	1508
exchange, or other disposition of a debt interest in or equity	1509
interest in a section 5747.212 entity, as defined in section	1510
5747.212 of the Revised Code, without regard to division (A) of	1511
that section, shall not be allocated to this state in accordance	1512
with section 5747.20 of the Revised Code but shall be apportioned	1513
to this state in accordance with division (B) of section 5747.212	1514
of the Revised Code without regard to division (A) of that	1515
section.	1516

If the allocation and apportionment of a trust's income under	1517
divisions (BB)(4)(a) and (c) of this section do not fairly	1518
represent the modified Ohio taxable income of the trust in this	1519
state, the alternative methods described in division (C) of	1520
section 5747.21 of the Revised Code may be applied in the manner	1521
and to the same extent provided in that section.	1522

(5)(a) Except as set forth in division (BB)(5)(b) of this	1523
section, "qualifying investee" means a person in which a trust has	1524
an equity or ownership interest, or a person or unit of government	1525
the debt obligations of either of which are owned by a trust. For	1526
the purposes of division (BB)(2)(a) of this section and for the	1527
purpose of computing the fraction described in division (BB)(4)(b)	1528
of this section, all of the following apply:	1529

(i) If the qualifying investee is a member of a qualifying	1530
controlled group on the last day of the qualifying investee's	1531
fiscal or calendar year ending immediately prior to the date on	1532
which the trust recognizes the gain or loss, then "qualifying	1533
investee" includes all persons in the qualifying controlled group	1534
on such last day.	1535

(ii) If the qualifying investee, or if the qualifying	1536
investee and any members of the qualifying controlled group of	1537
which the qualifying investee is a member on the last day of the	1538
qualifying investee's fiscal or calendar year ending immediately	1539
prior to the date on which the trust recognizes the gain or loss,	1540
separately or cumulatively own, directly or indirectly, on the	1541
last day of the qualifying investee's fiscal or calendar year	1542
ending immediately prior to the date on which the trust recognizes	1543
the qualifying trust amount, more than fifty per cent of the	1544
equity of a pass-through entity, then the qualifying investee and	1545
the other members are deemed to own the proportionate share of the	1546
pass-through entity's physical assets which the pass-through	1547
entity directly or indirectly owns on the last day of the	1548
pass-through entity's calendar or fiscal year ending within or	1549
with the last day of the qualifying investee's fiscal or calendar	1550
year ending immediately prior to the date on which the trust	1551
recognizes the qualifying trust amount.	1552

(iii) For the purposes of division (BB)(5)(a)(iii) of this	1553
section, "upper level pass-through entity" means a pass-through	1554
entity directly or indirectly owning any equity of another	1555
pass-through entity, and "lower level pass-through entity" means	1556
that other pass-through entity.	1557

An upper level pass-through entity, whether or not it is also	1558
a qualifying investee, is deemed to own, on the last day of the	1559
upper level pass-through entity's calendar or fiscal year, the	1560
proportionate share of the lower level pass-through entity's	1561
physical assets that the lower level pass-through entity directly	1562
or indirectly owns on the last day of the lower level pass-through	1563
entity's calendar or fiscal year ending within or with the last	1564
day of the upper level pass-through entity's fiscal or calendar	1565
year. If the upper level pass-through entity directly and	1566
indirectly owns less than fifty per cent of the equity of the	1567
lower level pass-through entity on each day of the upper level	1568
pass-through entity's calendar or fiscal year in which or with	1569
which ends the calendar or fiscal year of the lower level	1570
pass-through entity and if, based upon clear and convincing	1571
evidence, complete information about the location and cost of the	1572
physical assets of the lower pass-through entity is not available	1573
to the upper level pass-through entity, then solely for purposes	1574
of ascertaining if a gain or loss constitutes a qualifying trust	1575
amount, the upper level pass-through entity shall be deemed as	1576
owning no equity of the lower level pass-through entity for each	1577
day during the upper level pass-through entity's calendar or	1578
fiscal year in which or with which ends the lower level	1579
pass-through entity's calendar or fiscal year. Nothing in division	1580
(BB)(5)(a)(iii) of this section shall be construed to provide for	1581
any deduction or exclusion in computing any trust's Ohio taxable	1582
income.	1583

(b) With respect to a trust that is not a resident for the	1584
taxable year and with respect to a part of a trust that is not a	1585
resident for the taxable year, "qualifying investee" for that	1586
taxable year does not include a C corporation if both of the	1587
following apply:	1588

(i) During the taxable year the trust or part of the trust	1589
recognizes a gain or loss from the sale, exchange, or other	1590
disposition of equity or ownership interests in, or debt	1591
obligations of, the C corporation.	1592

(ii) Such gain or loss constitutes nonbusiness income.

1593

(6) "Available" means information is such that a person is	1594
able to learn of the information by the due date plus extensions,	1595
if any, for filing the return for the taxable year in which the	1596
trust recognizes the gain or loss.	1597

(CC) "Qualifying controlled group" has the same meaning as in	1598
section 5733.04 of the Revised Code.	1599

(DD) "Related member" has the same meaning as in section	1600
5733.042 of the Revised Code.	1601

(EE)(1) For the purposes of division (EE) of this section:

1602

(a) "Qualifying person" means any person other than a	1603
qualifying corporation.	1604

(b) "Qualifying corporation" means any person classified for	1605
federal income tax purposes as an association taxable as a	1606
corporation, except either of the following:	1607

(i) A corporation that has made an election under subchapter	1608
S, chapter one, subtitle A, of the Internal Revenue Code for its	1609
taxable year ending within, or on the last day of, the investor's	1610
taxable year;	1611

(ii) A subsidiary that is wholly owned by any corporation	1612
that has made an election under subchapter S, chapter one,	1613
subtitle A of the Internal Revenue Code for its taxable year	1614
ending within, or on the last day of, the investor's taxable year.	1615

(2) For the purposes of this chapter, unless expressly stated	1616
otherwise, no qualifying person indirectly owns any asset directly	1617
or indirectly owned by any qualifying corporation.	1618

(FF) For purposes of this chapter and Chapter 5751. of the	1619
Revised Code:	1620

(1) "Trust" does not include a qualified pre-income tax	1621
trust.	1622

(2) A "qualified pre-income tax trust" is any pre-income tax	1623
trust that makes a qualifying pre-income tax trust election as	1624
described in division (FF)(3) of this section.	1625

(3) A "qualifying pre-income tax trust election" is an	1626
election by a pre-income tax trust to subject to the tax imposed	1627
by section 5751.02 of the Revised Code the pre-income tax trust	1628
and all pass-through entities of which the trust owns or controls,	1629
directly, indirectly, or constructively through related interests,	1630
five per cent or more of the ownership or equity interests. The	1631
trustee shall notify the tax commissioner in writing of the	1632
election on or before April 15, 2006. The election, if timely	1633
made, shall be effective on and after January 1, 2006, and shall	1634
apply for all tax periods and tax years until revoked by the	1635
trustee of the trust.	1636

(4) A "pre-income tax trust" is a trust that satisfies all of	1637
the following requirements:	1638

(a) The document or instrument creating the trust was	1639
executed by the grantor before January 1, 1972;	1640

(b) The trust became irrevocable upon the creation of the	1641
trust; and	1642

(c) The grantor was domiciled in this state at the time the	1643
trust was created.	1644

(GG) "Uniformed services" has the same meaning as in 10	1645
U.S.C. 101.	1646

Sec. 5747.78. (A) In computing Ohio adjusted gross income, a	1647
deduction from federal adjusted gross income is allowed for	1648
physicians, dentists, nurses, medical assistants, phlebotomists,	1649
or medical secretaries who provide services free of charge to a	1650
free clinic. The deduction shall equal the sum of the following	1651
amounts:	1652

(1) The number of hours of service that the taxpayer provided	1653
free of charge to the free clinic during the taxable year,	1654
multiplied by eighty-five dollars in the case of a physician or	1655
dentist, thirty dollars in the case of a nurse, eighteen dollars	1656
in the case of a medical assistant or phlebotomist, or thirteen	1657
dollars in the case of a medical secretary;	1658

(2) The number of miles the taxpayer traveled to and from the	1659
free clinic during the taxable year in order to provide the free	1660
services, multiplied by the mileage rate allowed for the	1661
reimbursement of travel expenses of state agents as provided by	1662
rule of the director of budget and management adopted pursuant to	1663
division (B) of section 126.31 of the Revised Code.	1664

(B) As used in this section:

1665

(1) "Free clinic" has the same meaning as in section	1666
2305.2341 of the Revised Code, except that "free clinic" shall not	1667
include a clinic that performs or induces abortions.	1668

(2) "Physician," "dentist," and "nurse" mean an individual	1669
who is duly licensed to practice the respective profession under	1670
the laws of this state.	1671

Section 2.  That existing sections 2305.234, 2305.2341,	1672
4715.42, 4723.271, 4731.295, and 5747.01 of the Revised Code are	1673
hereby repealed.	1674

Section 3. The amendment of section 5747.01 and enactment of	1675
section 5747.78 of the Revised Code by this act apply to taxable	1676
years beginning on or after January 1, 2014.	1677