As Introduced

130th General Assembly
Regular Session
2013-2014
H. B. No. 408


Representatives Sears, Amstutz 

Cosponsors: Representatives Burkley, Duffey, Ruhl, McGregor, Baker, Stebelton, Sprague, Brenner, Derickson, Romanchuk, Smith, Schuring 

A BILL
To amend section 5747.98 and to enact section 5747.78 1
of the Revised Code to authorize an income tax 2
credit for donations to the permanent endowment 3
fund of an eligible community foundation.4


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

       Section 1.  That section 5747.98 be amended and section 5
5747.78 of the Revised Code be enacted to read as follows:6

       Sec. 5747.78.  (A)(1) "Eligible community foundation" means a 7
qualified community foundation as defined in section 2109.303 of 8
the Revised Code that has been accredited by the community 9
foundations national standards board.10

       (2) "Authorized donation" means a donation authorized by the 11
department of taxation and made to a permanent endowment fund of 12
an eligible community foundation within sixty days after the date 13
of authorization by the department.14

       (3) "Donation" means an irrevocable gift of cash or publicly 15
traded securities.16

       (4) "Permanent endowment fund" means a fund that is held in 17
perpetuity by an eligible community foundation, that is used for 18
the benefit of charitable causes in this state, and that has an 19
annual spending rate of five per cent or less.20

       (B) A nonrefundable credit is allowed against the tax imposed 21
by section 5747.02 of the Revised Code for a taxpayer that makes 22
an authorized donation to a permanent endowment fund of an 23
eligible community foundation in a taxable year beginning on or 24
after January 1, 2014. The credit shall equal the lesser of twenty 25
per cent of the amount of the authorized donation made during the 26
taxable year or ten thousand dollars in the case of an individual 27
return or twenty thousand dollars in the case of a joint return.28

       The credit shall be claimed in the order required under 29
section 5747.98 of the Revised Code. The amount of the credit may 30
not exceed the tax otherwise due after allowing for all other 31
credits in that order. The taxpayer may carry forward any balance 32
of the credit in excess of the amount claimed for up to five 33
ensuing taxable years, and shall deduct any amount claimed for 34
such a year from the amount claimed in any ensuing year.35

       (C) Before making a donation, a taxpayer shall apply to the 36
department of taxation for authorization of the donation in the 37
manner prescribed by the department. The department shall approve 38
or deny the application and shall issue written notice of the 39
department's decision to the taxpayer within twenty days after 40
receiving the application. The department shall review 41
applications in the order in which the applications are received.42

       The department shall approve an application if the taxpayer 43
agrees to make a donation to a permanent endowment fund of an 44
eligible community foundation, and if the total annual credit 45
limit has not been reached. If the application is approved, the 46
department's notice shall indicate the amount of the credit 47
authorized. If the donation is not received by the intended 48
recipient eligible community foundation within sixty days after 49
the date of the approval, the eligible community foundation shall 50
so notify the department, and the department shall deduct the 51
amount of the authorized credit from the total amount of credits 52
the agency has authorized for the purpose of determining whether 53
the total annual credit limit has been reached. If the donation is 54
received within sixty days after the date of approval, the 55
recipient eligible community foundation shall issue a receipt to 56
the taxpayer. For the purposes of this division, the "total annual 57
credit limit" equals twenty million dollars each calendar year.58

       (D) The department of taxation is authorized to charge a 59
reasonable fee for the filing of an application under division (C) 60
of this section to defray the costs of processing the application 61
and administering this section.62

       (E) The department of taxation shall adopt rules as necessary 63
to implement this section.64

       Sec. 5747.98.  (A) To provide a uniform procedure for 65
calculating the amount of tax due under section 5747.02 of the 66
Revised Code, a taxpayer shall claim any credits to which the 67
taxpayer is entitled in the following order:68

       (1) The retirement income credit under division (B) of 69
section 5747.055 of the Revised Code;70

       (2) The senior citizen credit under division (C) of section 71
5747.05 of the Revised Code;72

       (3) The lump sum distribution credit under division (D) of 73
section 5747.05 of the Revised Code;74

       (4) The dependent care credit under section 5747.054 of the 75
Revised Code;76

       (5) The lump sum retirement income credit under division (C) 77
of section 5747.055 of the Revised Code;78

       (6) The lump sum retirement income credit under division (D) 79
of section 5747.055 of the Revised Code;80

       (7) The lump sum retirement income credit under division (E) 81
of section 5747.055 of the Revised Code;82

       (8) The low-income credit under section 5747.056 of the 83
Revised Code;84

       (9) The credit for displaced workers who pay for job training 85
under section 5747.27 of the Revised Code;86

       (10) The campaign contribution credit under section 5747.29 87
of the Revised Code;88

       (11) The twenty-dollar personal exemption credit under 89
section 5747.022 of the Revised Code;90

       (12) The joint filing credit under division (G) of section 91
5747.05 of the Revised Code;92

       (13) The nonresident credit under division (A) of section 93
5747.05 of the Revised Code;94

       (14) The credit for a resident's out-of-state income under 95
division (B) of section 5747.05 of the Revised Code;96

       (15) The earned income credit under section 5747.71 of the 97
Revised Code;98

       (16) The credit for employers that reimburse employee child 99
care expenses under section 5747.36 of the Revised Code;100

       (17) The credit for adoption of a minor child under section 101
5747.37 of the Revised Code;102

       (18) The credit for purchases of lights and reflectors under 103
section 5747.38 of the Revised Code;104

       (19) The nonrefundable job retention credit under division 105
(B) of section 5747.058 of the Revised Code;106

       (20) The credit for selling alternative fuel under section 107
5747.77 of the Revised Code;108

       (21) The second credit for purchases of new manufacturing 109
machinery and equipment and the credit for using Ohio coal under 110
section 5747.31 of the Revised Code;111

       (22) The job training credit under section 5747.39 of the 112
Revised Code;113

       (23) The enterprise zone credit under section 5709.66 of the 114
Revised Code;115

       (24) The credit for the eligible costs associated with a 116
voluntary action under section 5747.32 of the Revised Code;117

       (25) The credit for employers that establish on-site child 118
day-care centers under section 5747.35 of the Revised Code;119

       (26) The ethanol plant investment credit under section 120
5747.75 of the Revised Code;121

       (27) The credit for donations to a permanent endowment fund 122
of an eligible community foundation under section 5747.78 of the 123
Revised Code;124

       (28) The credit for purchases of qualifying grape production 125
property under section 5747.28 of the Revised Code;126

       (28)(29) The small business investment credit under section 127
5747.81 of the Revised Code;128

       (29)(30) The enterprise zone credits under section 5709.65 of 129
the Revised Code;130

       (30)(31) The research and development credit under section 131
5747.331 of the Revised Code;132

       (31)(32) The credit for rehabilitating a historic building 133
under section 5747.76 of the Revised Code;134

       (32)(33) The refundable credit for rehabilitating a historic 135
building under section 5747.76 of the Revised Code;136

       (33)(34) The refundable jobs creation credit or job retention 137
credit under division (A) of section 5747.058 of the Revised Code;138

       (34)(35) The refundable credit for taxes paid by a qualifying 139
entity granted under section 5747.059 of the Revised Code;140

       (35)(36) The refundable credits for taxes paid by a 141
qualifying pass-through entity granted under division (J) of 142
section 5747.08 of the Revised Code;143

       (36)(37) The refundable credit under section 5747.80 of the 144
Revised Code for losses on loans made to the Ohio venture capital 145
program under sections 150.01 to 150.10 of the Revised Code;146

       (37)(38) The refundable motion picture production credit 147
under section 5747.66 of the Revised Code.148

       (38)(39) The refundable credit for financial institution 149
taxes paid by a pass-through entity granted under section 5747.65 150
of the Revised Code.151

       (B) For any credit, except the refundable credits enumerated 152
in this section and the credit granted under division (I) of 153
section 5747.08 of the Revised Code, the amount of the credit for 154
a taxable year shall not exceed the tax due after allowing for any 155
other credit that precedes it in the order required under this 156
section. Any excess amount of a particular credit may be carried 157
forward if authorized under the section creating that credit. 158
Nothing in this chapter shall be construed to allow a taxpayer to 159
claim, directly or indirectly, a credit more than once for a 160
taxable year.161

       Section 2.  That existing section 5747.98 of the Revised Code 162
is hereby repealed.163