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S. B. No. 144As IntroducedAs Introduced
124th General Assembly | Regular Session | 2001-2002 |
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SENATOR Mumper
A BILL
To amend sections 5733.98 and 5747.98 and to enact
sections 122.84, 122.841, 5733.46, and 5747.75 of
the Revised Code to create the Ethanol Production
Grant Program and to create a tax credit against
corporation franchise or income tax liability for
investments in ethanol plants.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5733.98 and 5747.98 be
amended and
sections 122.84, 122.841, 5733.46, and 5747.75 of the
Revised Code
be enacted to read as follows:
Sec. 122.84. (A) As used in this section: (1) "Eligible facility" means an ethanol production plant
located in this state. (2) "Ethanol" has the same meaning as in section 5733.46 of
the Revised Code. (3) "Qualifying period" means the period that begins on the
date an eligible facility begins the production of ethanol and
ends ten calendar years after that date. (B) Beginning January 1, 2004, the ethanol production grant
program is hereby created to encourage ethanol production in this
state, promote economic development, and improve the economic
welfare of the people of this state. For purposes of this
program, the department of development shall make grants of money
from the ethanol production incentive fund created by section
122.841 of the Revised Code to eligible facilities that meet the
criteria in division (D) of this section. The amount of a grant
for a fiscal year shall be an amount equal to twenty cents per
gallon of ethanol produced at an eligible facility during the
previous calendar year, but shall not exceed three million
dollars. (C) Beginning in 2004, not later than the first day of
February each year, the owner or operator of an eligible facility
may submit to the department of development an application for a
grant on a form furnished by the department. The application
shall contain such information as the director of development
prescribes under division (E) of this section. Not later than the
first day of April each year, the director shall notify each
applicant in writing whether it will be awarded a grant for the
ensuing fiscal year. If, for
any fiscal year, the amount of grant
moneys for which applicants qualify
exceeds the amount
appropriated from the ethanol production incentive
fund for that
fiscal year, the director shall reduce each grant by the
proportion that the amount appropriated bears to the total amount
of grants for which applicants would otherwise qualify. (D) The director of development shall award an applicant a
grant only after finding that all of the following criteria are
met: (1) The applicant is an eligible facility. (2) The eligible facility produced the amount of ethanol
reflected on its application for a grant. (3) The eligible facility's net profits for the previous
calendar year did not exceed three million dollars. (4) The eligible facility's qualifying period has not
expired. If, after a grant has been awarded, the director of
development determines that an eligible facility fails to meet the
criteria established by this division or did not produce the
amount of ethanol reflected on the application, the director may
require that the facility refund all or a portion of the grant. (E) In administering the program created under this section,
the director of development shall adopt rules in accordance with
Chapter 119. of the Revised Code necessary to implement this
section. The rules shall establish procedures and forms by which
applicants may apply for a grant, standards and procedures for
reviewing applications and awarding a grant, and procedures for
distributing the grant.
Sec. 122.841. There is hereby created in the state treasury
the ethanol production incentive fund for the purposes of the
ethanol production program established under section 122.84 of the
Revised Code. The fund shall consist of all appropriations,
grants, gifts, and contributions of money made to the department
of development from any source for the fund. All investment
earnings of the fund shall be credited to the fund. The
department shall administer the fund and use all money in it to
make grants under section 122.84 of the Revised Code and
administer the program.
Sec. 5733.46. (A) As used in this section:
(1) "Ethanol" means fermentation ethyl alcohol derived from
agricultural products, including potatoes, cereal, grains, cheese
whey, and sugar beets; forest products; or other renewable
resources, including residue and waste generated from the
production, processing, and marketing of agricultural products,
forest products, and other renewable resources that meet all of
the specifications in the American society for testing and
materials (ASTM) specification D 4806-88 and is denatured as
specified in Parts 20 and 21 of Title 27 of the Code of Federal
Regulations.
(2) "Ethanol plant" means a facility at which ethanol is
produced. (3) "Money" means United States currency, or a check, draft,
or cashier's check for United States currency, payable on demand
and drawn on a bank. (B) Beginning in tax year 2001 and ending in tax year 2011,
there is hereby allowed a refundable credit against the tax
imposed by section 5733.06 of the Revised Code for a taxpayer that
invests money in an ethanol plant. The amount of the credit
equals fifty per cent of the money the taxpayer invests in the
ethanol plant, but the credit amount shall not exceed fifty
thousand dollars. The credit shall be claimed in the tax year in
which the investment was made. For purposes of making tax
payments under this chapter, taxes equal to the amount of the
refundable credit shall be considered to be paid to this state on
the first day of the tax year.
(C) The taxpayer shall claim the credit in the order
required by section 5733.98 of the Revised Code. If the amount of
the credit under this section exceeds the amount of tax otherwise
due under section 5733.06 of the Revised Code after the deduction
of all other credits in that order, the taxpayer is entitled to a
refund of the excess. (D) A taxpayer may transfer to another taxpayer all or a
portion of the credit to which the initial taxpayer is entitled
under this section by providing written notice of the transfer to
the tax commissioner, in such form as the commissioner prescribes,
at any time prior to the use of the credit. The taxpayer to which
the credit is transferred may apply it against the tax imposed by
section 5733.06 of the Revised Code and is entitled to any refund
amount, to the same extent as the initial taxpayer. (E) The tax commissioner may require that the taxpayer
furnish information as is necessary to support the claim for the
credit under this section, and no credit shall be allowed unless
the information is provided.
Sec. 5733.98. (A) To provide a uniform procedure for
calculating the amount of tax imposed by section 5733.06 of the
Revised Code
that is due under this chapter, a taxpayer
shall
claim any credits to which it is entitled in the following order,
except as otherwise provided in section 5733.058 of the Revised
Code: (1) The credit for taxes paid by a qualifying pass-through
entity allowed
under section 5733.0611 of the Revised Code; (2) The credit for qualifying affiliated groups under
section 5733.068 of the Revised Code; (3) The subsidiary corporation credit under section
5733.067
of the Revised Code; (4) The savings and loan assessment credit under section
5733.063 of the Revised Code; (5) The credit for recycling and litter prevention
donations
under section
5733.064 of the Revised Code; (6) The credit for employers that enter into
agreements with
child day-care centers under section 5733.36 of the
Revised Code; (7) The credit for employers that reimburse employee child
day-care
expenses under section 5733.38 of the Revised
Code; (8) The credit for maintaining railroad active grade
crossing warning
devices under section 5733.43 of the Revised
Code; (9) The credit for purchases of lights and reflectors under
section
5733.44 of the Revised Code; (10) The credit for manufacturing investments under section
5733.061 of the Revised Code; (11) The credit for purchases of new manufacturing
machinery
and equipment under section 5733.31 or section 5733.311 of the
Revised Code; (12) The second credit for purchases of new
manufacturing
machinery and equipment under
section 5733.33 of the Revised Code; (13) The job training credit under section 5733.42 of
the
Revised
Code; (14) The credit for qualified research expenses under
section 5733.351 of
the Revised Code; (15) The enterprise zone credit under section 5709.66 of
the
Revised Code; (16) The credit for the eligible costs associated with a
voluntary action under section 5733.34
of the Revised Code; (17) The credit for employers that establish on-site
child
day-care under section 5733.37 of the Revised
Code; (18) The credit for purchases of qualifying grape
production
property under section 5733.32 of the Revised Code; (19) The export sales credit under section 5733.069 of
the
Revised Code; (20) The credit for research and development and
technology
transfer investors under section 5733.35 of the Revised Code; (21) The enterprise zone credits under section 5709.65
of
the Revised Code; (22) The credit for using Ohio coal under section 5733.39
of
the
Revised Code; (23) The refundable jobs creation credit under section
5733.0610 of the Revised Code; (24) The refundable ethanol plant investment credit under
section 5733.46 of the Revised Code. (B) For any credit except the refundable jobs creation
credit
and the refundable ethanol investment credit, the amount of
the credit for a tax year shall not exceed
the tax due after
allowing for any other credit that precedes it
in the order
required under this section. Any excess amount of a
particular
credit may be carried forward if authorized under the
section
creating that credit.
Sec. 5747.75. (A) As used in this section:
(1) "Ethanol" means fermentation ethyl alcohol derived from
agricultural products, including potatoes, cereal, grains, cheese
whey, and sugar beets; forest products; or other renewable
resources, including residue and waste generated from the
production, processing, and marketing of agricultural products,
forest products, and other renewable resources that meet all of
the specifications in the American society for testing and
materials (ASTM) specification D 4806-88 and is denatured as
specified in Parts 20 and 21 of Title 27 of the Code of Federal
Regulations. (2) "Ethanol plant" means a facility at which ethanol is
produced. (3) "Money" means United States currency, or a check, draft,
or cashier's check for United States currency, payable on demand
and drawn on a bank. (B) Beginning in taxable year 2001 and ending in taxable
year 2011, there is hereby allowed a refundable credit against the
tax imposed by section 5747.02 of the Revised Code for a taxpayer
that invests money in an ethanol plant. The amount of the credit
equals fifty per cent of the money the taxpayer invests in the
ethanol plant, but the credit amount shall not exceed fifty
thousand dollars. The credit shall be claimed in the taxable year
in which the investment was made. For purposes of making tax
payments under this chapter, taxes equal to the amount of the
refundable credit shall be considered to be paid to this state on
the first day of the taxable year. (C) The taxpayer shall claim the credit in the order
required by section 5747.98 of the Revised Code. If the amount of
the credit under this section exceeds the amount of tax otherwise
due under section 5747.02 of the Revised Code after the deduction
of all other credits in that order, the taxpayer is entitled to a
refund of the excess. (D) If the taxpayer is a direct or indirect investor in a
pass-through entity that has made an investment under this
section, the taxpayer may claim its proportionate or distributive
share of the credit allowed under this section. (E) A taxpayer may transfer to another taxpayer all or a
portion of the credit to which the initial taxpayer is entitled
under this section by providing written notice of the transfer to
the tax commissioner, in such form as the commissioner prescribes,
at any time prior to the use of the credit. The taxpayer to which
the credit is transferred may apply it against the tax imposed by
section 5747.02 of the Revised Code and is entitled to any refund
amount, to the same extent as the initial taxpayer. (F) The tax commissioner may require that the taxpayer
furnish information as is necessary to support the claim for the
credit under this section, and no credit shall be allowed unless
the information is provided.
Sec. 5747.98. (A) To provide a uniform procedure for
calculating the amount of tax due under section 5747.02 of the
Revised Code, a taxpayer shall claim any credits to which the
taxpayer is
entitled in the following order: (1) The retirement income credit under division (B) of
section 5747.055 of the Revised Code; (2) The senior citizen credit under division (C) of
section
5747.05 of the Revised Code; (3) The lump sum distribution credit under division (D) of
section 5747.05 of the Revised Code; (4) The dependent care credit under section 5747.054 of
the
Revised Code; (5) The lump sum retirement income credit under division
(C)
of section 5747.055 of the Revised Code; (6) The lump sum retirement income credit under division
(D)
of section 5747.055 of the Revised Code; (7) The lump sum retirement income credit under division
(E)
of section 5747.055 of the Revised Code; (8) The credit for displaced workers who pay for job
training under section 5747.27 of the Revised Code; (9) The campaign contribution credit under section
5747.29
of
the Revised Code; (10) The twenty-dollar personal exemption credit under
section 5747.022 of the Revised Code; (11) The joint filing credit under division (G) of
section
5747.05 of the Revised Code; (12) The nonresident credit under division (A) of
section
5747.05 of the Revised Code; (13) The credit for a resident's out-of-state income
under
division (B) of section 5747.05 of the Revised Code; (14) The credit for employers that enter
into agreements
with child day-care centers under section 5747.34 of the
Revised
Code; (15) The credit for employers that reimburse employee
child
day-care
expenses under section 5747.36 of the Revised Code; (16) The credit for adoption of a minor child under section
5747.37 of the Revised Code; (17) The credit for purchases of lights and reflectors under
section
5747.38 of the Revised Code; (18) The credit for manufacturing investments under
section
5747.051 of the Revised Code; (19) The credit for purchases of new manufacturing
machinery
and equipment
under section 5747.26 or section 5747.261 of the
Revised Code; (20) The second credit for purchases of new manufacturing
machinery and
equipment and the credit for using Ohio coal under
section 5747.31 of the
Revised Code; (21) The job training credit under section 5747.39 of the
Revised Code; (22) The enterprise zone credit under section 5709.66 of
the
Revised Code; (23) The credit for the eligible costs associated with a
voluntary action
under section 5747.32 of the Revised Code; (24) The credit
for employers that establish on-site child
day-care centers under section
5747.35 of the Revised Code; (25) The credit for purchases of qualifying grape
production
property under section 5747.28 of the Revised Code; (26) The export sales credit under section 5747.057 of
the
Revised Code; (27) The credit for research and development and
technology
transfer investors under section 5747.33 of the Revised Code; (28) The enterprise zone credits under
section 5709.65 of
the Revised Code; (29) The refundable jobs creation credit
under section
5747.058 of the Revised Code; (30) The refundable credit for taxes paid by a qualifying
entity granted under section 5747.059 of the Revised Code; (31) The refundable credits for taxes paid by a
qualifying
pass-through
entity granted under division (J) of section 5747.08
of the Revised Code; (32) The refundable ethanol plant investment credit under
section 5747.75 of the Revised Code. (B) For any credit, except the refundable credits enumerated
in
divisions
(A)(29), (30),
and (31), and (32) of this
section and
the credit granted under division
(I) of section
5747.08 of the
Revised Code, the amount of the credit
for a taxable year shall
not
exceed the tax due after allowing for any other credit that
precedes it in the order required under this section. Any excess
amount of a particular credit may be carried forward if
authorized
under the section creating that credit. Nothing in this chapter
shall be construed to allow a taxpayer to claim, directly or
indirectly, a
credit more than once for a taxable year.
Section 2. That existing sections 5733.98 and 5747.98 of the
Revised Code are hereby repealed.
Section 3. Not later than thirty days after the effective
date of this act, the Director of Budget and Management shall
transfer ten million dollars from the General Revenue Fund to the
Ethanol Production Incentive Fund.
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