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To amend section 5751.98 and to enact section 5751.55 | 1 |
of the Revised Code to establish a nonrefundable | 2 |
commercial activity tax credit for companies | 3 |
involved in horizontal well drilling or related | 4 |
oil and gas production services that hire Ohio | 5 |
residents or dislocated workers who have enrolled | 6 |
in or completed a federally registered | 7 |
apprenticeship program. | 8 |
Section 1. That section 5751.98 be amended and section | 9 |
5751.55 of the Revised Code be enacted to read as follows: | 10 |
Sec. 5751.55. (A) As used in this section: | 11 |
(1) "Owner," "horizontal well," "production operation," and | 12 |
"well pad" have the same meanings as in section 1509.01 of the | 13 |
Revised Code. | 14 |
(2) "Severance" has the same meaning as in section 5749.01 of | 15 |
the Revised Code. | 16 |
(3) "Qualifying wages" means a rate of pay that is at least | 17 |
two hundred fifty per cent of the federal minimum wage under 29 | 18 |
U.S.C. 206 or is equivalent to such rate of pay for a full-time | 19 |
employee. | 20 |
(4) "Full-time employee" means an employee employed for at | 21 |
least thirty-five hours per week. | 22 |
(5) "Horizontal well employer" means the owner of a | 23 |
horizontal well or any other person that performs a horizontal | 24 |
well service. | 25 |
(6) "Horizontal well service" means any of the following: | 26 |
(a) Operations involving the severance of natural gas, oil, | 27 |
or other hydrocarbons by a horizontal well, including any | 28 |
production operations; | 29 |
(b) Preparation of the well pad or the means of access to the | 30 |
well pad; | 31 |
(c) Transportation of equipment, materials, or supplies to | 32 |
the well site or of the products of the well from the well site. | 33 |
Transportation may include movement of such products through pipes | 34 |
or tubing or by any other means. | 35 |
(d) Processing the raw products of the horizontal well to | 36 |
produce pipeline quality natural gas by separating impurities, | 37 |
nonmethane hydrocarbons, and fluids at the wellhead or another | 38 |
site; | 39 |
(e) Operating or servicing equipment utilized in any | 40 |
horizontal well service. | 41 |
(7) "Horizontal well employee" means a full-time employee of | 42 |
a horizontal well employer who is domiciled in this state for the | 43 |
purposes of Chapter 5747. of the Revised Code or who is a | 44 |
"dislocated worker" as defined in 29 U.S.C. 2801, and who is paid | 45 |
qualifying wages, is primarily employed in a horizontal well | 46 |
service, and is enrolled in or has completed a qualified | 47 |
apprenticeship program that corresponds to the appropriate | 48 |
horizontal well service and that is registered in accordance with | 49 |
29 C.F.R. 29.3. | 50 |
(B) Any horizontal well employer may claim a nonrefundable | 51 |
credit against the tax imposed under section 5751.02 of the | 52 |
Revised Code. If the horizontal well employer is a calendar | 53 |
quarter taxpayer, the amount of the credit shall equal two | 54 |
thousand five hundred dollars for each horizontal well employee | 55 |
hired by the horizontal well employer in the tax period preceding | 56 |
the tax period on the basis of which the tax is owed and employed | 57 |
by the horizontal well employer for the duration of the tax period | 58 |
on the basis of which the tax is owed. If the horizontal well | 59 |
employer is a calendar year taxpayer, the credit equals two | 60 |
thousand five hundred dollars for each horizontal well employee | 61 |
hired by the horizontal well employer during the calendar year on | 62 |
the basis of which the tax is owed and employed by the horizontal | 63 |
well employer for at least three consecutive months in that year. | 64 |
The taxpayer shall claim the credit in the order required by | 65 |
section 5751.98 of the Revised Code. Any credit amount in excess | 66 |
of the tax due under section 5751.03 of the Revised Code, after | 67 |
allowing for any other credits that precede the credit under this | 68 |
section in the order required under that section, may not be | 69 |
carried forward. | 70 |
Sec. 5751.98. (A) To provide a uniform procedure for | 71 |
calculating the amount of tax due under this chapter, a taxpayer | 72 |
shall claim any credits to which it is entitled in the following | 73 |
order: | 74 |
(1) The nonrefundable jobs retention credit under division | 75 |
(B) of section 5751.50 of the Revised Code; | 76 |
(2) The nonrefundable credit for qualified research expenses | 77 |
under division (B) of section 5751.51 of the Revised Code; | 78 |
(3) The nonrefundable credit for a borrower's qualified | 79 |
research and development loan payments under division (B) of | 80 |
section 5751.52 of the Revised Code; | 81 |
(4) The nonrefundable credit for calendar years 2010 to 2029 | 82 |
for unused net operating losses under division (B) of section | 83 |
5751.53 of the Revised Code; | 84 |
(5) The nonrefundable credit for horizontal well employers | 85 |
under section 5751.55 of the Revised Code; | 86 |
(6) The refundable motion picture production credit under | 87 |
section 5751.54 of the Revised Code; | 88 |
| 89 |
credit under division (A) of section 5751.50 of the Revised Code; | 90 |
| 91 |
unused net operating losses under division (C) of section 5751.53 | 92 |
of the Revised Code. | 93 |
(B) For any credit except the refundable credits enumerated | 94 |
in this section, the amount of the credit for a tax period shall | 95 |
not exceed the tax due after allowing for any other credit that | 96 |
precedes it in the order required under this section. Any excess | 97 |
amount of a particular credit may be carried forward if authorized | 98 |
under the section creating the credit. | 99 |
Section 2. That existing section 5751.98 of the Revised Code | 100 |
is hereby repealed. | 101 |