As Introduced

130th General Assembly Regular Session 2013-2014

S. B. No. 149

Senator Beagle 

Cosponsors: Senators Hite, Manning 

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A BILL

To amend sections 5725.98, 5726.98, 5729.98, 5747.98,

1

and 5751.98 and to enact sections 122.155,

2

122.156, 122.157, 122.158, 122.159, 5725.191,

3

5726.58, 5727.242, 5727.43, 5727.812, 5729.081,

4

5747.052, and 5751.54 of the Revised Code to

5

authorize tax credits for contributions of money

6

to economic and infrastructure development

7

projects undertaken by local governments and

8

nonprofit corporations.

9

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

Section 1. That sections 5725.98, 5726.98, 5729.98, 5747.98,	10
and 5751.98 be amended and sections 122.155, 122.156, 122.157,	11
122.158, 122.159, 5725.191, 5726.58, 5727.242, 5727.43, 5727.812,	12
5729.081, 5747.052, and 5751.54 of the Revised Code be enacted to	13
read as follows:	14

Sec. 122.155. As used in sections 122.155 to 122.159 of the	15
Revised Code:	16

(A) "Approval date" means the date on which the development	17
services agency issues notice of approval to a community	18
development organization and a contributor for a catalytic project	19
contribution proposal submitted under section 122.156 of the	20
Revised Code.	21

(B) "Catalytic project" means an economic development project	22
or activity undertaken by a community development organization	23
that the community economic development organization predicts will	24
induce sustainable private investment in one or more local units	25
of government. "Catalytic project" includes construction of	26
buildings, infrastructure improvements, central business district	27
redevelopment, land reutilization, production of housing, and	28
microenterprise development.	29

(C) "Catalytic project contribution" means a transfer of	30
money by a contributor to a community development organization for	31
the purpose of funding a catalytic project with no expectation of	32
repayment or other compensation. Taxes, fees, dues, campaign	33
contributions, and payments made for lobbying purposes do not	34
qualify as catalytic project contributions.	35

(D) "Catalytic project contribution proposal" means a written	36
document submitted by a community development organization under	37
section 122.156 of the Revised Code proposing a catalytic project.	38

(E) "Community development organization" means an entity that	39
meets any of the following sets of criteria on the approval date:	40

(1) The entity is a local unit of government or an economic	41
development corporation designated by such an entity under section	42
1724.10 of the Revised Code, undertaking or planning to undertake	43
a catalytic project. If a local unit of government is in fiscal	44
emergency as determined by the auditor of state under section	45
118.04 of the Revised Code, it or any economic development	46
corporation designated by it does not qualify as a community	47
development organization.	48

(2) The entity is a private corporation established as a	49
nonprofit corporation under the laws of this state that is exempt	50
from federal income taxation under section 501(c)(3) of the	51
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.	52
501(c)(3), the primary purpose of which is to administer a	53
catalytic project. After January 1, 2015, no private corporation	54
shall qualify as a community development organization unless the	55
corporation is first certified by the development services agency	56
under section 122.159 of the Revised Code.	57

(F) "Contributor" means a corporation for profit or a	58
pass-through entity as defined in section 5733.04 of the Revised	59
Code.	60

(G) "Microenterprise development" means providing funds to	61
assist the development of local for-profit businesses with fewer	62
than five employees, at least one of whom owns the entire	63
business.	64

(H) "Money" means United States currency, or a check, draft,	65
or cashier's check for United States currency, payable on demand	66
and drawn on a financial institution.	67

(I) "Rural catalytic project" means a catalytic project in	68
which more than fifty per cent of the total expenditures for the	69
entire project are utilized to benefit one or more counties each	70
of which has a population of less than one hundred twenty-five	71
thousand according to the most recent decennial census.	72

(J) "Urban catalytic project" means any catalytic project	73
that is not a rural catalytic project.	74

Sec. 122.156. (A)(1) A community development organization may	75
apply for a tax credit certificate under this section on behalf of	76
a contributor that proposes to make a catalytic project	77
contribution of at least five thousand dollars by submitting a	78
catalytic project contribution proposal to the development	79
services agency. The proposal shall include the following:	80

(a) The name, address, and telephone number of each	81
contributor and a statement signed by an officer, agent, or other	82
person legally authorized to bind the contributor indicating the	83
amount of the proposed catalytic project contribution;	84

(b) The name, address, and telephone number of the community	85
development organization undertaking the catalytic project;	86

(c) A catalytic project plan describing the purpose of and	87
the procedure for implementing the catalytic project. The plan	88
shall include a description of the catalytic project, an estimate	89
of the total cost of the project, a list of the local units of	90
government that will benefit from the project, designation of the	91
project as either a rural catalytic project or an urban catalytic	92
project, and the predicted economic impact of the catalytic	93
project on each benefiting local unit of government.	94

(2) The agency shall make one of the following determinations	95
within thirty days after receiving a proposal:	96

(a) Approve the entire proposed contribution;

97

(b) Approve a contribution of less than the proposed	98
contribution but not less than five thousand dollars;	99

(c) Disapprove the entire proposed contribution.

100

(3) The agency's determination shall be based on the	101
potential of the catalytic project to induce further sustainable	102
private investment in the benefiting local units of government,	103
the need for economic development in the benefiting local units of	104
government, and any other factor prescribed by the agency.	105

(4) The agency's determination is final and may not be	106
appealed for any reason. A community development organization may	107
submit a new or amended catalytic project contribution proposal at	108
any time after receiving notice under division (B) of this	109
section, and may submit multiple proposals.	110

(B) The development services agency shall send written notice	111
of its determination under division (A) of this section to the	112
community development organization that submitted the catalytic	113
project contribution proposal and each contributor proposing the	114
catalytic project contribution. A contributor may make an approved	115
catalytic project contribution at any time on or after the	116
approval date.	117

(1) If the agency approves the entire proposed catalytic	118
project contribution, the notice shall include confirmation of the	119
amount of the approved contribution, an estimate of the amount of	120
the tax credit, and instructions for submitting application fees	121
due under division (D) of this section.	122

(2) If the agency approves a contribution less than the	123
proposed contribution, the notice shall include the amount of the	124
approved contribution, the reason the approved contribution is	125
less than the proposed contribution, an estimate of the amount of	126
the tax credit, and instructions for submitting application fees	127
due under division (D) of this section.	128

(3) If the agency disapproves the entire proposed	129
contribution, the notice shall include the reasons the proposed	130
contribution was not approved and may incorporate suggestions for	131
changes to the catalytic project contribution proposal.	132

(C) The estimate of the tax credit amount required in	133
divisions (B)(1) and (2) of this section shall be calculated as	134
follows:	135

(1) If the catalytic project contribution proposal indicates	136
that the catalytic project contribution will fund a rural	137
catalytic project, the estimate shall equal sixty per cent of the	138
approved catalytic project contribution.	139

(2) If the catalytic project contribution proposal indicates	140
that the catalytic project contribution will fund an urban	141
catalytic project, the estimate shall equal fifty per cent of the	142
approved catalytic project contribution.	143

(D)(1) The development services agency shall require payment	144
of an application fee not to exceed ten per cent of the amount of	145
the tax credit estimate calculated under division (C) of this	146
section for each approved catalytic project contribution proposal.	147
The application fee may be paid by the community development	148
organization, the contributor, or any other person. No portion of	149
a catalytic project contribution may be utilized to pay an	150
application fee under this section. Payment of the application fee	151
shall not be the basis of a tax credit granted under any other	152
section of the Revised Code. Proceeds from the application fee	153
shall be used to defray the agency's costs of administering	154
sections 122.155 to 122.159 of the Revised Code. If the	155
application fee is not paid on or before the thirtieth day	156
following the approval date, approval of the catalytic project	157
contribution proposal shall be revoked. The agency shall not be	158
required to send notice of revocation except under the	159
circumstance described in division (D)(2) of this section.	160

(2) If the agency receives an application fee more than	161
thirty days after the approval date, the agency shall return the	162
application fee and notify the community development organization	163
and the contributor that approval has been revoked.	164

(3) The agency shall not issue a tax credit certificate under	165
section 122.157 of the Revised Code before receiving full payment	166
of the application fee due under this section. An application fee	167
received by the agency shall not be refunded except under the	168
circumstance described in division (D)(2) of this section.	169

(E) The development services agency shall not approve a	170
catalytic project contribution of less than five thousand dollars.	171
The amount of a catalytic project contribution for which a tax	172
credit may be allowed shall not exceed five hundred thousand	173
dollars. The sum of all tax credit estimates issued under division	174
(B) of this section for contributions to any single catalytic	175
project shall not exceed five hundred thousand dollars. The	176
development services agency shall not approve any catalytic	177
project contribution before the first day of January of the	178
calendar year immediately following the effective date of ...B...	179
of the 130th general assembly or after the thirty-first day of	180
December of the fifth calendar year following such effective date.	181

The sum of all tax credit estimates issued in a calendar year	182
under division (B) of this section shall not exceed the sum of	183
five million dollars plus the residual credit amount for the	184
preceding calendar year calculated under division (E) of section	185
122.157 of the Revised Code. The sum of all tax credit estimates	186
issued before the first day of July in any calendar year under	187
division (B) of this section for contributions funding urban	188
catalytic projects shall not exceed the sum of three million five	189
hundred thousand dollars plus seventy per cent of the residual	190
credit amount for the preceding calendar year calculated under	191
division (E) of section 122.157 of the Revised Code.	192

Sec. 122.157. (A)(1) The development services agency shall	193
not issue a tax credit certificate under this section unless,	194
within two years after the approval date, the agency receives a	195
written project completion report prepared by the community	196
development organization that received a catalytic project	197
contribution approved under section 122.156 of the Revised Code.	198
The report shall certify all of the following:	199

(a) That the catalytic project is fully completed;

200

(b) The total amount expended by the community development	201
organization on the catalytic project;	202

(c) The sum of all catalytic project contributions received	203
by the community development organization to fund the catalytic	204
project;	205

(d) A comprehensive list of any differences between the	206
completed catalytic project and the catalytic project plan	207
submitted with the catalytic project contribution proposal;	208

(e) A monetary estimate of how the differences described in	209
division (A)(1)(d) of this section affect the economic impact of	210
the catalytic project projected in the catalytic project	211
contribution proposal.	212

(2) After the agency receives a project completion report	213
that meets the requirements of division (A)(1) of this section,	214
the agency shall issue a tax credit certificate to the contributor	215
that made the approved catalytic project contribution. The tax	216
credit certificate shall indicate that the contributor is allowed	217
a tax credit equal to an amount calculated as follows:	218

(a) If the project completion report indicates that the	219
contribution funded a rural catalytic project, the tax credit	220
equals sixty per cent of the adjusted catalytic project	221
contribution determined under division (B) of this section.	222

(b) If the project completion report indicates that the	223
contribution funded an urban catalytic project the tax credit	224
equals fifty per cent of the adjusted catalytic project	225
contribution determined under division (B) of this section.	226

(B) The adjusted catalytic project contribution equals the	227
catalytic project contribution approved by the development	228
services agency, adjusted by the agency as follows:	229

(1) Subtract any amount reimbursed to the contributor by the	230
community development organization;	231

(2) Subtract the value of any nonmonetary compensation	232
provided to the contributor by the community development	233
organization;	234

(3) If the total expenditures of the community development	235
organization on the catalytic project were less than the sum of	236
all catalytic project contributions approved by the development	237
services agency and received by the organization to fund the	238
catalytic project, determine the difference and subtract an amount	239
equal to the difference multiplied by a fraction, the numerator of	240
which is the contributor's approved catalytic project contribution	241
and the denominator of which is the sum of all approved catalytic	242
project contributions received by the community development	243
organization to fund the catalytic project;	244

(4) If the project completion report indicates there are	245
differences between the completed catalytic project and the	246
catalytic project plan that result in a reduction in the predicted	247
economic impact, subtract an amount commensurate with such	248
reduction as determined by the agency.	249

(C) A contributor that is issued a tax credit certificate	250
under this section may claim one of the nonrefundable tax credits	251
authorized under section 5725.191, 5726.58, 5727.242, 5727.43,	252
5727.812, 5729.081, 5747.052, or 5751.54 of the Revised Code. A	253
tax credit certificate issued to a contributor under this section	254
may not be transferred by that contributor to any other person.	255

(D) The director of development services shall develop the	256
form of the tax credit certificate and shall report to the tax	257
commissioner any information requested by the commissioner	258
concerning tax credit certificates issued under this section. A	259
contributor shall present the certificate to the tax commissioner	260
upon the commissioner's request.	261

(E) Annually, before the seventh day of January, the	262
development services agency shall calculate the residual credit	263
amount for the preceding calendar year. The residual credit amount	264
equals the sum of the following:	265

(1) All tax credit estimates for which approval is revoked	266
for failure to timely pay the application fee required under	267
division (D)(1) of section 122.156 of the Revised Code;	268

(2) All tax credit estimates for which more than two years	269
has passed since the approval date and no project completion	270
report has been submitted to the development services agency under	271
section 122.157 of the Revised Code;	272

(3) The difference between the amount issued in tax credit	273
certificates under this section and the corresponding tax credit	274
estimates.	275

(F) Annually, before the seventh day of January, the	276
development services agency shall conduct a cost-benefit analysis	277
of each catalytic project to which a catalytic project	278
contribution approved by the agency was made and of the tax credit	279
as a whole considering all catalytic project contribution	280
proposals approved under section 122.156 of the Revised Code. The	281
agency shall provide copies of the cost-benefit analysis to the	282
governor, the speaker and minority leader of the house of	283
representatives, and the president and minority leader of the	284
senate. Copies of the cost-benefit analysis shall be made	285
available to contributors, community development organizations,	286
and other members of the public upon request.	287

Sec. 122.158. If the development services agency receives	288
information alleging that a community development organization or	289
a contributor that was issued a tax credit certificate under	290
section 122.157 of the Revised Code presented or contributed to	291
the presentation of false information to the agency in connection	292
with obtaining the certificate, the agency shall send written	293
notice to the community development organization or the	294
contributor that if the allegation is found to be true the	295
community development organization or the contributor may be	296
penalized as provided in this section. After giving the community	297
development organization or the contributor an opportunity to be	298
heard on the allegation, the agency shall determine if the	299
community development organization or the contributor presented or	300
contributed to the presentation of false information in connection	301
with obtaining a tax credit certificate.	302

If the agency determines a contributor submitted or	303
contributed to the submission of false information, it may revoke	304
any remaining tax credit available to the contributor. The agency	305
shall send written notice of the revocation to the contributor and	306
the tax commissioner. The tax commissioner may make an assessment	307
against the contributor to recapture any amount of tax credit that	308
the contributor already has claimed. The time limitations on	309
assessments under the laws of the particular tax against which the	310
contributor claimed the credit do not apply to an assessment under	311
this section.	312

If the agency determines a community development organization	313
submitted or contributed to the submission of false information,	314
the agency shall not approve any catalytic project contribution	315
proposal submitted by the community development organization	316
following the date of the agency's determination.	317

Sec. 122.159. (A) A nonprofit corporation seeking	318
certification as a community development organization may apply to	319
the development services agency in the form and manner prescribed	320
by the agency. The application shall include a description of the	321
catalytic project being administered or proposed, the local units	322
of government that will benefit from the project, the estimated	323
economic impact of the project on the benefiting local units of	324
government, the estimated date of completion of the project, and	325
any other information required by the agency.	326

(B) The development services agency shall determine whether	327
to certify the nonprofit corporation as a community development	328
organization and notify the corporation of the agency's	329
determination within thirty days after receiving an application	330
under division (A) of this section. If the agency determines that	331
an applicant does not qualify as a community development	332
organization, the notice shall include the reasons for such	333
determination.	334

(C) Certification under this section remains valid for two	335
years after the date the notice of the determination is issued. A	336
certified community development organization may apply to the	337
development services agency to renew certification for one	338
additional two-year period by submitting a new application under	339
division (A) of this section at least thirty days before the first	340
certification expires.	341

(D) The development services agency shall maintain a list of	342
the nonprofit corporations that have been certified as community	343
development organizations. The agency shall furnish copies of the	344
list to a member of the public upon request.	345

(E) The development services agency does not assume any	346
responsibility for the accuracy or truthfulness of information	347
furnished by a community development organization or its agents. A	348
contributor proposing to make a catalytic project contribution to	349
such an organization is solely responsible for due diligence in	350
verifying information submitted by the organization. The agency is	351
not liable for any action resulting from its provision of such	352
information to contributors in accordance with sections 122.155 to	353
122.159 of the Revised Code.	354

Sec. 5725.191. Upon the issuance of a tax credit certificate	355
by the development services agency under section 122.157 of the	356
Revised Code, a nonrefundable credit may be claimed against the	357
tax imposed on a domestic insurance company under section 5725.18	358
of the Revised Code. The credit shall be claimed for the calendar	359
year in which the certificate was issued by the agency and in the	360
order required under section 5725.98 of the Revised Code.	361

If the credit exceeds the tax otherwise due under section	362
5725.18 of the Revised Code, the excess shall be allowed as a	363
credit in each of the ensuing five years, but the amount of any	364
excess credit allowed in an ensuing year shall be deducted from	365
the balance carried forward to the next year.	366

Sec. 5725.98. (A) To provide a uniform procedure for	367
calculating the amount of tax imposed by section 5725.18 of the	368
Revised Code that is due under this chapter, a taxpayer shall	369
claim any credits and offsets against tax liability to which it is	370
entitled in the following order:	371

(1) The credit for an insurance company or insurance company	372
group under section 5729.031 of the Revised Code;	373

(2) The credit for eligible employee training costs under	374
section 5725.31 of the Revised Code;	375

(3) The credit for purchasers of qualified low-income	376
community investments under section 5725.33 of the Revised Code;	377

(4) The nonrefundable job retention credit under division	378
(B)(1) of section 122.171 of the Revised Code;	379

(5) The credit for contributions to catalytic projects under	380
section 5725.191 of the Revised Code;	381

(6) The offset of assessments by the Ohio life and health	382
insurance guaranty association permitted by section 3956.20 of the	383
Revised Code;	384

(6)(7) The refundable credit for rehabilitating a historic	385
building under section 5725.34 of the Revised Code.	386

(7)(8) The refundable credit for Ohio job retention under	387
division (B)(2) or (3) of section 122.171 of the Revised Code;	388

(8)(9) The refundable credit for Ohio job creation under	389
section 5725.32 of the Revised Code;	390

(9)(10) The refundable credit under section 5725.19 of the	391
Revised Code for losses on loans made under the Ohio venture	392
capital program under sections 150.01 to 150.10 of the Revised	393
Code.	394

(B) For any credit except the refundable credits enumerated	395
in this section, the amount of the credit for a taxable year shall	396
not exceed the tax due after allowing for any other credit that	397
precedes it in the order required under this section. Any excess	398
amount of a particular credit may be carried forward if authorized	399
under the section creating that credit. Nothing in this chapter	400
shall be construed to allow a taxpayer to claim, directly or	401
indirectly, a credit more than once for a taxable year.	402

Sec. 5726.58. Upon the issuance of a tax credit certificate	403
by the development services agency under section 122.157 of the	404
Revised Code, a nonrefundable tax credit may be claimed against	405
the tax imposed by section 5726.02 of the Revised Code. The credit	406
shall be claimed for the taxable year in which the certificate is	407
issued by the agency and in the order required under section	408
5726.98 of the Revised Code. If the credit exceeds the tax	409
otherwise due under section 5726.02 of the Revised Code after	410
deducting all other credits in that order, the excess shall be	411
allowed as a credit in each of the ensuing five tax years, but the	412
amount of any excess credit allowed in an ensuing tax year shall	413
be deducted from the balance carried forward to the next tax year.	414

Sec. 5726.98. (A) To provide a uniform procedure for	415
calculating the amount of tax due under section 5726.02 of the	416
Revised Code, a taxpayer shall claim any credits to which the	417
taxpayer is entitled under this chapter in the following order:	418

(1) The bank organization assessment credit under section	419
5726.51 of the Revised Code;	420

(2) The nonrefundable job retention credit under division (B)	421
of section 5726.50 of the Revised Code;	422

(3) The nonrefundable credit for purchases of qualified	423
low-income community investments under section 5726.54 of the	424
Revised Code;	425

(4) The credit for contributions to catalytic projects under	426
section 5726.58 of the Revised Code;	427

(5) The nonrefundable credit for qualified research expenses	428
under section 5726.56 of the Revised Code;	429

(5)(6) The nonrefundable credit for qualifying dealer in	430
intangibles taxes under section 5726.57 of the Revised Code.;	431

(6)(7) The refundable credit for rehabilitating an historic	432
building under section 5726.52 of the Revised Code;	433

(7)(8) The refundable job retention or job creation credit	434
under division (A) of section 5726.50 of the Revised Code;	435

(8)(9) The refundable credit under section 5726.53 of the	436
Revised Code for losses on loans made under the Ohio venture	437
capital program under sections 150.01 to 150.10 of the Revised	438
Code;	439

(9)(10) The refundable motion picture production credit under	440
section 5726.55 of the Revised Code.	441

(B) For any credit except the refundable credits enumerated	442
in this section, the amount of the credit for a taxable year shall	443
not exceed the tax due after allowing for any other credit that	444
precedes it in the order required under this section. Any excess	445
amount of a particular credit may be carried forward if authorized	446
under the section creating that credit. Nothing in this chapter	447
shall be construed to allow a taxpayer to claim, directly or	448
indirectly, a credit more than once for a taxable year.	449

Sec. 5727.242. Upon the issuance of a tax credit certificate	450
by the development services agency under section 122.157 of the	451
Revised Code, a nonrefundable tax credit may be claimed against	452
the tax imposed on a taxpayer under section 5727.24 of the Revised	453
Code. The credit shall be claimed on a return due under section	454
5727.25 of the Revised Code after the certificate is issued by the	455
agency.	456

If the credit exceeds the tax otherwise due under section	457
5727.24 of the Revised Code, the excess shall be allowed as a	458
credit against the tax due for each return period in the ensuing	459
five years, but the amount of any excess credit allowed for an	460
ensuing return period shall be deducted from the balance carried	461
forward to the next return period.	462

Sec. 5727.43. Upon the issuance of a tax credit certificate	463
by the development services agency under section 122.157 of the	464
Revised Code, a nonrefundable tax credit may be claimed against	465
the tax imposed by section 5727.30 of the Revised Code. The credit	466
shall be claimed in the calendar year following the year in which	467
the certificate is issued by the agency.	468

If the credit exceeds the tax otherwise due under section	469
5727.30 of the Revised Code, the excess shall be allowed as a	470
credit in each of the ensuing five years, but the amount of any	471
excess credit allowed in an ensuing year shall be deducted from	472
the balance carried forward to the next year.	473

Sec. 5727.812. Upon the issuance of a tax credit certificate	474
by the development services agency under section 122.157 of the	475
Revised Code, a nonrefundable tax credit may be claimed against	476
the tax imposed under section 5727.81 or 5727.811 of the Revised	477
Code. The credit shall be claimed in the calendar year following	478
the year in which the certificate is issued by the agency.	479

If the credit exceeds the tax otherwise due under section	480
5727.81 or 5727.811 of the Revised Code, the excess shall be	481
allowed as a credit against the tax due for each monthly or	482
quarterly return period in the ensuing five years, but the amount	483
of any excess credit allowed for an ensuing return period shall be	484
deducted from the balance carried forward to the next return	485
period.	486

Sec. 5729.081. Upon the issuance of a tax credit certificate	487
by the development services agency under section 122.157 of the	488
Revised Code, a nonrefundable tax credit may be claimed against	489
the tax imposed on a foreign insurance company under section	490
5729.03 of the Revised Code. The credit shall be claimed against	491
the tax due for the calendar year in which the certificate is	492
issued by the agency.	493

If the credit exceeds the tax otherwise due under section	494
5729.03 of the Revised Code, the excess shall be allowed as a	495
credit in each of the ensuing five years, but the amount of any	496
excess credit allowed in an ensuing year shall be deducted from	497
the balance carried forward to the next year.	498

Sec. 5729.98. (A) To provide a uniform procedure for	499
calculating the amount of tax due under this chapter, a taxpayer	500
shall claim any credits and offsets against tax liability to which	501
it is entitled in the following order:	502

(1) The credit for an insurance company or insurance company	503
group under section 5729.031 of the Revised Code;	504

(2) The credit for eligible employee training costs under	505
section 5729.07 of the Revised Code;	506

(3) The credit for purchases of qualified low-income	507
community investments under section 5729.16 of the Revised Code;	508

(4) The nonrefundable job retention credit under division	509
(B)(1) of section 122.171 of the Revised Code;	510

(5) The nonrefundable credit for contributions to catalytic	511
projects under section 5729.081 of the Revised Code;	512

(6) The offset of assessments by the Ohio life and health	513
insurance guaranty association against tax liability permitted by	514
section 3956.20 of the Revised Code;	515

(6)(7) The refundable credit for rehabilitating a historic	516
building under section 5729.17 of the Revised Code.	517

(7)(8) The refundable credit for Ohio job retention under	518
division (B)(2) or (3) of section 122.171 of the Revised Code;	519

(8)(9) The refundable credit for Ohio job creation under	520
section 5729.032 of the Revised Code;	521

(9)(10) The refundable credit under section 5729.08 of the	522
Revised Code for losses on loans made under the Ohio venture	523
capital program under sections 150.01 to 150.10 of the Revised	524
Code.	525

(B) For any credit except the refundable credits enumerated	526
in this section, the amount of the credit for a taxable year shall	527
not exceed the tax due after allowing for any other credit that	528
precedes it in the order required under this section. Any excess	529
amount of a particular credit may be carried forward if authorized	530
under the section creating that credit. Nothing in this chapter	531
shall be construed to allow a taxpayer to claim, directly or	532
indirectly, a credit more than once for a taxable year.	533

Sec. 5747.052. A nonrefundable tax credit shall be allowed	534
for equity owners of pass-through entities against the tax imposed	535
by section 5747.02 of the Revised Code upon the issuance of a tax	536
credit certificate by the development services agency under	537
section 122.157 of the Revised Code. The credit shall be claimed	538
for the taxable year in which the certificate was issued by the	539
agency and in the order required under section 5747.98 of the	540
Revised Code. Each equity owner may claim the owner's distributive	541
or proportionate share of the credit allowed under the	542
certificate. If the amount of the credit under this section	543
exceeds the amount of tax otherwise due under section 5747.02 of	544
the Revised Code after deduction of all other credits in that	545
order, the excess shall be allowed as a credit in each of the	546
ensuing five taxable years, but the amount of any excess credit	547
allowed in an ensuing year shall be deducted from the balance	548
carried forward to the next year.	549

Sec. 5747.98.  (A) To provide a uniform procedure for	550
calculating the amount of tax due under section 5747.02 of the	551
Revised Code, a taxpayer shall claim any credits to which the	552
taxpayer is entitled in the following order:	553

(1) The retirement income credit under division (B) of	554
section 5747.055 of the Revised Code;	555

(2) The senior citizen credit under division (C) of section	556
5747.05 of the Revised Code;	557

(3) The lump sum distribution credit under division (D) of	558
section 5747.05 of the Revised Code;	559

(4) The dependent care credit under section 5747.054 of the	560
Revised Code;	561

(5) The lump sum retirement income credit under division (C)	562
of section 5747.055 of the Revised Code;	563

(6) The lump sum retirement income credit under division (D)	564
of section 5747.055 of the Revised Code;	565

(7) The lump sum retirement income credit under division (E)	566
of section 5747.055 of the Revised Code;	567

(8) The low-income credit under section 5747.056 of the	568
Revised Code;	569

(9) The credit for displaced workers who pay for job training	570
under section 5747.27 of the Revised Code;	571

(10) The campaign contribution credit under section 5747.29	572
of the Revised Code;	573

(11) The twenty-dollar personal exemption credit under	574
section 5747.022 of the Revised Code;	575

(12) The joint filing credit under division (G) of section	576
5747.05 of the Revised Code;	577

(13) The nonresident credit under division (A) of section	578
5747.05 of the Revised Code;	579

(14) The credit for a resident's out-of-state income under	580
division (B) of section 5747.05 of the Revised Code;	581

(15) The credit for employers that enter into agreements with	582
child day-care centers under section 5747.34 of the Revised Code;	583

(16) The credit for employers that reimburse employee child	584
care expenses under section 5747.36 of the Revised Code;	585

(17) The credit for adoption of a minor child under section	586
5747.37 of the Revised Code;	587

(18) The credit for purchases of lights and reflectors under	588
section 5747.38 of the Revised Code;	589

(19) The nonrefundable job retention credit under division	590
(B) of section 5747.058 of the Revised Code;	591

(20) The nonrefundable credit for contributions to catalytic	592
projects under section 5747.052 of the Revised Code;	593

(21) The credit for selling alternative fuel under section	594
5747.77 of the Revised Code;	595

(21)(22) The second credit for purchases of new manufacturing	596
machinery and equipment and the credit for using Ohio coal under	597
section 5747.31 of the Revised Code;	598

(22)(23) The job training credit under section 5747.39 of the	599
Revised Code;	600

(23)(24) The enterprise zone credit under section 5709.66 of	601
the Revised Code;	602

(24)(25) The credit for the eligible costs associated with a	603
voluntary action under section 5747.32 of the Revised Code;	604

(25)(26) The credit for employers that establish on-site	605
child day-care centers under section 5747.35 of the Revised Code;	606

(26)(27) The ethanol plant investment credit under section	607
5747.75 of the Revised Code;	608

(27)(28) The credit for purchases of qualifying grape	609
production property under section 5747.28 of the Revised Code;	610

(28)(29) The small business investment credit under section	611
5747.81 of the Revised Code;	612

(29)(30) The credit for research and development and	613
technology transfer investors under section 5747.33 of the Revised	614
Code;	615

(30)(31) The enterprise zone credits under section 5709.65 of	616
the Revised Code;	617

(31)(32) The research and development credit under section	618
5747.331 of the Revised Code;	619

(32)(33) The credit for rehabilitating a historic building	620
under section 5747.76 of the Revised Code;	621

(33)(34) The refundable credit for rehabilitating a historic	622
building under section 5747.76 of the Revised Code;	623

(34)(35) The refundable jobs creation credit or job retention	624
credit under division (A) of section 5747.058 of the Revised Code;	625

(35)(36) The refundable credit for taxes paid by a qualifying	626
entity granted under section 5747.059 of the Revised Code;	627

(36)(37) The refundable credits for taxes paid by a	628
qualifying pass-through entity granted under division (J) of	629
section 5747.08 of the Revised Code;	630

(37)(38) The refundable credit under section 5747.80 of the	631
Revised Code for losses on loans made to the Ohio venture capital	632
program under sections 150.01 to 150.10 of the Revised Code;	633

(38)(39) The refundable motion picture production credit	634
under section 5747.66 of the Revised Code.	635

(B) For any credit, except the refundable credits enumerated	636
in this section and the credit granted under division (I) of	637
section 5747.08 of the Revised Code, the amount of the credit for	638
a taxable year shall not exceed the tax due after allowing for any	639
other credit that precedes it in the order required under this	640
section. Any excess amount of a particular credit may be carried	641
forward if authorized under the section creating that credit.	642
Nothing in this chapter shall be construed to allow a taxpayer to	643
claim, directly or indirectly, a credit more than once for a	644
taxable year.	645

Sec. 5751.54. Upon the issuance of a tax credit certificate	646
by the development services agency under section 122.157 of the	647
Revised Code, a nonrefundable tax credit may be claimed against	648
the tax imposed by section 5751.02 of the Revised Code. The credit	649
shall be claimed for the first tax period beginning after the	650
calendar year in which the certificate is issued by the agency and	651
in the order required under section 5751.98 of the Revised Code.	652
If the credit exceeds the tax otherwise due under section 5751.02	653
of the Revised Code for that tax period, the excess shall be	654
allowed as a credit for tax periods in each of the ensuing five	655
calendar years, but the amount of any excess credit allowed in an	656
ensuing tax period shall be deducted from the balance carried	657
forward to the next tax period.	658

Sec. 5751.98.  (A) To provide a uniform procedure for	659
calculating the amount of tax due under this chapter, a taxpayer	660
shall claim any credits to which it is entitled in the following	661
order:	662

(1) The nonrefundable jobs retention credit under division	663
(B) of section 5751.50 of the Revised Code;	664

(2) The nonrefundable credit for contributions to catalytic	665
projects under section 5751.54 of the Revised Code;	666

(3) The nonrefundable credit for qualified research expenses	667
under division (B) of section 5751.51 of the Revised Code;	668

(3)(4) The nonrefundable credit for a borrower's qualified	669
research and development loan payments under division (B) of	670
section 5751.52 of the Revised Code;	671

(4)(5) The nonrefundable credit for calendar years 2010 to	672
2029 for unused net operating losses under division (B) of section	673
5751.53 of the Revised Code;	674

(5)(6) The refundable credit for calendar year 2030 for	675
unused net operating losses under division (C) of section 5751.53	676
of the Revised Code;	677

(6)(7) The refundable jobs creation credit or job retention	678
credit under division (A) of section 5751.50 of the Revised Code.	679

(B) For any credit except the refundable credits enumerated	680
in this section, the amount of the credit for a tax period shall	681
not exceed the tax due after allowing for any other credit that	682
precedes it in the order required under this section. Any excess	683
amount of a particular credit may be carried forward if authorized	684
under the section creating the credit.	685

Section 2. That existing sections 5725.98, 5726.98, 5729.98,	686
5747.98, and 5751.98 of the Revised Code are hereby repealed.	687