To amend sections 5727.391 and 5733.39, to enact section 5703.55 of the Revised Code, and to repeal the version of section 5733.39 of the Revised Code that results from Am. Sub. S.B. 3 of the 123rd General Assembly to prohibit the Department of Taxation from putting social security numbers on the outside of materials mailed to taxpayers and to allow the Ohio coal tax credit to be taken for additional compliance facilities.

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

Sec. 5703.55. THE DEPARTMENT OF TAXATION SHALL NOT PUT A TAXPAYER'S SOCIAL SECURITY NUMBER ON THE OUTSIDE OF ANY MATERIAL MAILED TO THE TAXPAYER.

Sec. 5727.391. (A) As used in this section:

(1) "Compliance facility" has the same meaning as in section 4905.01 of the Revised Code MEANS PROPERTY THAT IS DESIGNED, CONSTRUCTED, OR INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC GENERATING FACILITY FOR THE PRIMARY PURPOSE OF COMPLYING WITH ACID RAIN CONTROL REQUIREMENTS UNDER TITLE IV OF THE "CLEAN AIR ACT AMENDMENTS OF 1990," 104 STAT. 2584, 42 U.S.C.A. 7651, AND THAT CONTROLS OR LIMITS EMISSIONS OF SULFUR OR NITROGEN COMPOUNDS RESULTING FROM THE COMBUSTION OF COAL THROUGH THE REMOVAL OR REDUCTION OF THOSE COMPOUNDS BEFORE, DURING, OR AFTER THE COMBUSTION OF THE COAL, BUT BEFORE THE COMBUSTION PRODUCTS ARE EMITTED INTO THE ATMOSPHERE. "Compliance facility" also includes both ANY of the following:

(a) A FACILITY THAT REMOVES SULFUR COMPOUNDS FROM COAL BEFORE THE COMBUSTION OF THE COAL AND THAT IS LOCATED OFF THE PREMISES OF THE ELECTRIC GENERATING FACILITY WHERE THE COAL PROCESSED BY THE COMPLIANCE FACILITY IS BURNED;

(b) MODIFICATIONS TO THE ELECTRIC GENERATING FACILITY WHERE THE COMPLIANCE FACILITY IS CONSTRUCTED OR INSTALLED THAT ARE NECESSARY TO ACCOMMODATE THE CONSTRUCTION OR INSTALLATION, AND OPERATION, OF THE COMPLIANCE FACILITY;

(c) A BYPRODUCT DISPOSAL FACILITY, AS DEFINED IN SECTION 3734.051 OF THE REVISED CODE, THAT EXCLUSIVELY DISPOSES OF WASTES PRODUCED BY THE COMPLIANCE FACILITY AND OTHER COAL COMBUSTION BYPRODUCTS PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE COMPLIANCE FACILITY IS INCORPORATED OR CONNECTED REGARDLESS OF WHETHER THE BYPRODUCT DISPOSAL FACILITY IS LOCATED ON THE SAME PREMISES AS THE COMPLIANCE FACILITY OR GENERATING UNIT THAT PRODUCES THE WASTES DISPOSED OF AT THE FACILITY;

(d) FACILITIES OR EQUIPMENT THAT IS ACQUIRED, CONSTRUCTED, OR INSTALLED, AND USED, AT A COAL-FIRED ELECTRIC GENERATING FACILITY EXCLUSIVELY FOR THE PURPOSE OF HANDLING THE BYPRODUCTS PRODUCED BY THE COMPLIANCE FACILITY OR OTHER COAL COMBUSTION BYPRODUCTS PRODUCED BY THE GENERATING UNIT IN OR TO WHICH THE COMPLIANCE FACILITY IS INCORPORATED OR CONNECTED;

(e) A flue gas desulfurization system that is connected to a coal-fired electric generating unit and that either was placed in service prior to July 10, 1991, or construction of which was commenced prior to that date;

(b)(f) Facilities or equipment that is acquired, constructed, or installed, and used, at a coal-fired electric generating unit primarily for the purpose of handling the byproducts produced by a compliance facility or other coal combustion byproducts produced by the generating unit in or to which the compliance facility is incorporated or connected.

(2) "Ohio coal" has the same meaning as in section 4913.01 of the Revised Code.

(B) An electric company shall be allowed a credit against the tax computed under section 5727.38 of the Revised Code for using Ohio coal in any of its coal-fired electric generating units. The credit shall be claimed in the company's annual statement required under division (A) of section 5727.31 of the Revised Code at the rate of three dollars per ton of Ohio coal burned, during the same twelve-month period used in determining gross receipts and on or after January 1, 2000, in a coal-fired electric generating unit under both of the following conditions:

(1) The coal-fired electric generating unit is owned by the company claiming the credit or leased by that company under a sale and leaseback transaction;

(2) A compliance facility is attached to, incorporated in, or used in conjunction with the coal-fired generating unit.

(C) If the credit allowed under this section exceeds the total taxes due for the current year, the tax commissioner shall credit the excess against the taxes due for succeeding years until the full amount of the credit is granted.

(D) The director of environmental protection, upon the request of the tax commissioner, shall certify whether a facility is a compliance facility. In the case of a compliance facility owned by an electric company, the public utilities commission shall certify to the tax commissioner the cost of the facility as of the date it was placed in service. In the case of a compliance facility owned by a person other than an electric company, the tax commissioner shall determine the cost of the facility as of the date it was placed in service; if the owner of such a facility fails to furnish the information necessary to make that determination, no credit shall be allowed.

Sec. 5733.39. (A) As used in this section:

(1) "Compliance facility" means property that is designed, constructed, or installed, and used, at a coal-fired electric generating facility for the primary purpose of complying with Phase I acid rain control requirements under Title IV of the "Clean Air Act Amendments of 1990," 104 Stat. 2584, 42 U.S.C.A. 7651, and that controls or limits emissions of sulfur or nitrogen compounds resulting from the combustion of coal through the removal or reduction of those compounds before, during, or after the combustion of the coal, but before the combustion products are emitted into the atmosphere. "Compliance facility" also includes any of the following:

(a) A facility that removes sulfur compounds from coal before the combustion of the coal and that is located off the premises of the electric generating facility where the coal processed by the compliance facility is burned;

(b) Modifications to the electric generating facility where the compliance facility is constructed or installed that are necessary to accommodate the construction or installation, and operation, of the compliance facility;

(c) A byproduct disposal facility, as defined in section 3734.051 of the Revised Code, that exclusively disposes of wastes produced by the compliance facility and other coal combustion byproducts produced by the generating unit in or to which the compliance facility is incorporated or connected regardless of whether the byproduct disposal facility is located on the same premises as the compliance facility or generating unit that produces the wastes disposed of at the facility;

(d) Facilities or equipment that is acquired, constructed, or installed, and used, at a coal-fired electric generating facility exclusively for the purpose of handling the byproducts produced by the compliance facility or other coal combustion byproducts produced by the generating unit in or to which the compliance facility is incorporated or connected;

(e) A flue gas desulfurization system that is connected to a coal-fired electric generating unit and that either was placed in service prior to July 10, 1991, or construction of which was commenced prior to that date;

(f) Facilities or equipment acquired, constructed, or installed, and used, at a coal-fired electric generating unit primarily for the purpose of handling the byproducts produced by a compliance facility or other coal combustion byproducts produced by the generating unit in or to which the compliance facility is incorporated or connected.

(2) "Ohio coal" has the same meaning as in section 4913.01 of the Revised Code.

(3) "Sale and leaseback transaction" has the same meaning as in section 5727.01 of the Revised Code.

(B) An electric company shall be allowed a nonrefundable credit against the tax imposed by section 5733.06 of the Revised Code for Ohio coal used in any of its coal-fired electric generating units after April 30, 2001, but before January 1, 2005. Section 5733.057 of the Revised Code shall apply when calculating the credit allowed by this section. The credit shall be claimed at the rate of three dollars per ton of Ohio coal burned in a coal-fired electric generating unit during the taxable year ending immediately preceding the tax year. The credit is allowed only if both of the following conditions are met during such taxable year:

(1) The coal-fired electric generating unit is owned and used by the company claiming the credit or leased and used by that company under a sale and leaseback transaction.

(2) A compliance facility is attached to, incorporated in, or used in conjunction with the coal-fired generating unit.

(C) The credit shall be claimed in the order required under section 5733.98 of the Revised Code. The taxpayer may carry forward any credit amount in excess of its tax due after allowing for any other credits that precede the credit allowed under this section in the order required under section 5733.98 of the Revised Code. The excess credit may be carried forward for three years following the tax year for which it is claimed under this section.

(D) The director of environmental protection, upon the request of the tax commissioner, shall certify whether a facility is a compliance facility. In the case of a compliance facility owned by an electric company, the public utilities commission shall certify to the tax commissioner the cost of the facility as of the date it was placed in service. In the case of a compliance facility owned by a person other than an electric company, the tax commissioner shall determine the cost of the facility as of the date it was placed in service. If the owner of such a facility fails to furnish the information necessary to make that determination, no credit shall be allowed.