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| To amend section 5747.98 and to enact section 5747.82 | 1 |
| of the Revised Code to authorize an income tax | 2 |
| credit for residential landlords who improve a | 3 |
| rental unit's energy efficiency. | 4 |
| Section 1. That section 5747.98 be amended and section | 5 |
| 5747.82 of the Revised Code be enacted to read as follows: | 6 |
| Sec. 5747.82. (A) For purposes of this section: | 7 |
| (1) "Energy efficiency improvement" has the same meaning as | 8 |
| in section 1710.01 of the Revised Code. | 9 |
| (2) "Energy-saving device" means a residential washer, dryer, | 10 |
| range, refrigerator, freezer, water heater, dishwasher, trash | 11 |
| compactor, air conditioner, furnace, or other similar product used | 12 |
| for regulating air or water temperature, cooking, sanitary | 13 |
| purposes, or other household purposes, or a window or door on an | 14 |
| outside wall of a home, if the device carries the energy star | 15 |
| label indicating that it meets the efficiency criteria of the | 16 |
| energy star program established by the United States department of | 17 |
| energy and the United States environmental protection agency. | 18 |
| "Energy-saving device" does not include any television or other | 19 |
| appliance used primarily for entertainment. | 20 |
| (3) "Residential rental property" means real property on | 21 |
| which is located one or more dwelling units leased to tenants | 22 |
| solely for residential purposes, but does not include a hotel or a | 23 |
| college or university dormitory. | 24 |
| (4) "Pass-through entity" includes a sole proprietor. | 25 |
| (B) A taxpayer who is an investor in a pass-through entity | 26 |
| that owns residential rental property may claim a refundable | 27 |
| credit against the tax imposed by section 5747.02 of the Revised | 28 |
| Code if, on or after January 1, 2013, the entity purchases and | 29 |
| installs in the rental property an energy-saving device or the | 30 |
| entity improves the rental property with an energy efficiency | 31 |
| improvement installed by a person who is accredited by the | 32 |
| building performance institute. The taxpayer may claim the | 33 |
| taxpayer's proportionate or distributive share of fifteen per cent | 34 |
| of the sum of the purchase and installation costs of the device or | 35 |
| improvement. The taxpayer shall claim the credit in the taxpayer's | 36 |
| taxable year that includes the last day of the pass-through | 37 |
| entity's taxable year in which the installation was completed. The | 38 |
| taxpayer shall claim the credit in the order required under | 39 |
| section 5747.98 of the Revised Code. If the credit amount exceeds | 40 |
| the tax otherwise due under section5747.02 of the Revised Code | 41 |
| after deducting all other credits in that order, the taxpayer may | 42 |
| claim a refund of the excess. | 43 |
| Sec. 5747.98. (A) To provide a uniform procedure for | 44 |
| calculating the amount of tax due under section 5747.02 of the | 45 |
| Revised Code, a taxpayer shall claim any credits to which the | 46 |
| taxpayer is entitled in the following order: | 47 |
| (1) The retirement income credit under division (B) of | 48 |
| section 5747.055 of the Revised Code; | 49 |
| (2) The senior citizen credit under division (C) of section | 50 |
| 5747.05 of the Revised Code; | 51 |
| (3) The lump sum distribution credit under division (D) of | 52 |
| section 5747.05 of the Revised Code; | 53 |
| (4) The dependent care credit under section 5747.054 of the | 54 |
| Revised Code; | 55 |
| (5) The lump sum retirement income credit under division (C) | 56 |
| of section 5747.055 of the Revised Code; | 57 |
| (6) The lump sum retirement income credit under division (D) | 58 |
| of section 5747.055 of the Revised Code; | 59 |
| (7) The lump sum retirement income credit under division (E) | 60 |
| of section 5747.055 of the Revised Code; | 61 |
| (8) The low-income credit under section 5747.056 of the | 62 |
| Revised Code; | 63 |
| (9) The credit for displaced workers who pay for job training | 64 |
| under section 5747.27 of the Revised Code; | 65 |
| (10) The campaign contribution credit under section 5747.29 | 66 |
| of the Revised Code; | 67 |
| (11) The twenty-dollar personal exemption credit under | 68 |
| section 5747.022 of the Revised Code; | 69 |
| (12) The joint filing credit under division (G) of section | 70 |
| 5747.05 of the Revised Code; | 71 |
| (13) The nonresident credit under division (A) of section | 72 |
| 5747.05 of the Revised Code; | 73 |
| (14) The credit for a resident's out-of-state income under | 74 |
| division (B) of section 5747.05 of the Revised Code; | 75 |
| (15) The credit for employers that enter into agreements with | 76 |
| child day-care centers under section 5747.34 of the Revised Code; | 77 |
| (16) The credit for employers that reimburse employee child | 78 |
| care expenses under section 5747.36 of the Revised Code; | 79 |
| (17) The credit for adoption of a minor child under section | 80 |
| 5747.37 of the Revised Code; | 81 |
| (18) The credit for purchases of lights and reflectors under | 82 |
| section 5747.38 of the Revised Code; | 83 |
| (19) The nonrefundable job retention credit under division | 84 |
| (B) of section 5747.058 of the Revised Code; | 85 |
| (20) The credit for selling alternative fuel under section | 86 |
| 5747.77 of the Revised Code; | 87 |
| (21) The second credit for purchases of new manufacturing | 88 |
| machinery and equipment and the credit for using Ohio coal under | 89 |
| section 5747.31 of the Revised Code; | 90 |
| (22) The job training credit under section 5747.39 of the | 91 |
| Revised Code; | 92 |
| (23) The enterprise zone credit under section 5709.66 of the | 93 |
| Revised Code; | 94 |
| (24) The credit for the eligible costs associated with a | 95 |
| voluntary action under section 5747.32 of the Revised Code; | 96 |
| (25) The credit for employers that establish on-site child | 97 |
| day-care centers under section 5747.35 of the Revised Code; | 98 |
| (26) The ethanol plant investment credit under section | 99 |
| 5747.75 of the Revised Code; | 100 |
| (27) The credit for purchases of qualifying grape production | 101 |
| property under section 5747.28 of the Revised Code; | 102 |
| (28) The small business investment credit under section | 103 |
| 5747.81 of the Revised Code; | 104 |
| (29) The credit for research and development and technology | 105 |
| transfer investors under section 5747.33 of the Revised Code; | 106 |
| (30) The enterprise zone credits under section 5709.65 of the | 107 |
| Revised Code; | 108 |
| (31) The research and development credit under section | 109 |
| 5747.331 of the Revised Code; | 110 |
| (32) The credit for rehabilitating a historic building under | 111 |
| section 5747.76 of the Revised Code; | 112 |
| (33) The refundable credit for rehabilitating a historic | 113 |
| building under section 5747.76 of the Revised Code; | 114 |
| (34) The refundable jobs creation credit or job retention | 115 |
| credit under division (A) of section 5747.058 of the Revised Code; | 116 |
| (35) The refundable credit for taxes paid by a qualifying | 117 |
| entity granted under section 5747.059 of the Revised Code; | 118 |
| (36) The refundable credits for taxes paid by a qualifying | 119 |
| pass-through entity granted under division (J) of section 5747.08 | 120 |
| of the Revised Code; | 121 |
| (37) The refundable credit under section 5747.80 of the | 122 |
| Revised Code for losses on loans made to the Ohio venture capital | 123 |
| program under sections 150.01 to 150.10 of the Revised Code; | 124 |
| (38) The refundable motion picture production credit under | 125 |
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section 5747.66 of the Revised Code | 126 |
| (39) The refundable credit for financial institution taxes | 127 |
| paid by a pass-through entity granted under section 5747.65 of the | 128 |
| Revised Code; | 129 |
| (40) The refundable credit for rental property energy | 130 |
| efficiency improvements under section 5747.82 of the Revised Code. | 131 |
| (B) For any credit, except the refundable credits enumerated | 132 |
| in this section and the credit granted under division (I) of | 133 |
| section 5747.08 of the Revised Code, the amount of the credit for | 134 |
| a taxable year shall not exceed the tax due after allowing for any | 135 |
| other credit that precedes it in the order required under this | 136 |
| section. Any excess amount of a particular credit may be carried | 137 |
| forward if authorized under the section creating that credit. | 138 |
| Nothing in this chapter shall be construed to allow a taxpayer to | 139 |
| claim, directly or indirectly, a credit more than once for a | 140 |
| taxable year. | 141 |
| Section 2. That existing section 5747.98 of the Revised Code | 142 |
| is hereby repealed. | 143 |
| Section 3. Section 5747.98 of the Revised Code is presented | 144 |
| in this act as a composite of the section as amended by both Am. | 145 |
| Sub. H.B. 386 and Am. Sub. H.B. 510 of the 129th General Assembly. | 146 |
| The General Assembly, applying the principle stated in division | 147 |
| (B) of section 1.52 of the Revised Code that amendments are to be | 148 |
| harmonized if reasonably capable of simultaneous operation, finds | 149 |
| that the composite is the resulting version of the section in | 150 |
| effect prior to the effective date of the section as presented in | 151 |
| this act. | 152 |