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H. B. No. 617 As IntroducedAs Introduced
128th General Assembly | Regular Session | 2009-2010 |
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A BILL
To amend sections 122.17, 5725.98, 5729.98, 5733.98,
5747.98, and 5751.98 and to enact section 122.175
of the Revised Code to authorize refundable tax
credits to foster job creation and capital
investment in the Ohio Appalachian Region.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 122.17, 5725.98, 5729.98, 5733.98,
5747.98, and 5751.98 be amended and section 122.175 of the Revised
Code be enacted to read as follows:
Sec. 122.17. (A) As used in this section:
(1) "Income tax revenue" means the total amount withheld
under section 5747.06 of the Revised Code by the taxpayer during
the taxable year, or during the calendar year that includes the
tax period, from the compensation of each employee employed in the
project to the extent the employee's withholdings are not used to
determine the credit under section 122.171 of the Revised Code.
"Income tax revenue" excludes amounts withheld before the day the
taxpayer becomes eligible for the credit.
(2) "Baseline income tax revenue" means income tax revenue
except that the applicable withholding period is the twelve months
immediately preceding the date the tax credit authority approves
the taxpayer's application multiplied by the sum of one plus an
annual pay increase factor to be determined by the tax credit
authority. If the taxpayer becomes eligible for the credit after
the first day of the taxpayer's taxable year or after the first
day of the calendar year that includes the tax period, the
taxpayer's baseline income tax revenue for the first such taxable
or calendar year of credit eligibility shall be reduced in
proportion to the number of days during the taxable or calendar
year for which the taxpayer was not eligible for the credit. For
subsequent taxable or calendar years, "baseline income tax
revenue" equals the unreduced baseline income tax revenue for the
preceding taxable or calendar year multiplied by the sum of one
plus the pay increase factor.
(3) "Excess income tax revenue" means income tax revenue
minus baseline income tax revenue.
(4) "Taxable year" means the period covered by the taxpayer's
annual statement to the superintendent of insurance for purposes
of the credits granted by this section against the taxes imposed
under sections 5725.18 and 5729.03 of the Revised Code.
(5) "Appalachian region" has the same meaning as in section
107.21 of the Revised Code.
(B)(1) The tax credit authority may make grants under this
section to foster job creation in this state. Such a grant shall
take the form of a refundable credit allowed against the tax
imposed by section 5725.18, 5729.03, 5733.06, or 5747.02, or
levied under Chapter 5751. 5751.02 of the Revised Code. The credit
shall be claimed for the taxable years or tax periods specified in
the taxpayer's agreement with the tax credit authority under
division (D) of this section. With respect to taxes imposed under
section 5733.06 or 5747.02 or Chapter 5751. of the Revised Code,
the The credit shall be claimed in the order required under
section 5725.98, 5729.98, 5733.98, 5747.98, or 5751.98 of the
Revised Code. The amount of the credit available for a taxable
year or for a calendar year that includes a tax period equals the
excess income tax revenue for that year multiplied by the
percentage specified in the agreement with the tax credit
authority. Any credit granted under this section against the tax
imposed by section 5733.06 or 5747.02 of the Revised Code, to the
extent not fully utilized against such tax for taxable years
ending prior to 2008, shall automatically be converted without any
action taken by the tax credit authority to a credit against the
tax levied under Chapter 5751. section 5751.02 of the Revised Code
for tax periods beginning on or after July 1, 2008, provided that
the person to whom the credit was granted is subject to such tax.
The converted credit shall apply to those calendar years in which
the remaining taxable years specified in the agreement end.
(2) The tax credit authority may make grants in the form of a
refundable credit to a taxpayer or potential taxpayer to foster
job creation in the Appalachian region. Grants made under division
(B)(2) of this section are subject to the same requirements and
limitations applicable to grants made under division (B)(1) of
this section, except as follows:
(a) The project site shall be located in the Appalachian
region.
(b) The taxpayer must create at least ten full-time
equivalent employees at the project location.
(c) Eligibility for the grant may not be conditioned on any
of the following:
(i) The creation of more than ten full-time equivalent
employees at the project location;
(ii) The generation of a minimum amount of additional
payroll;
(iii) A demonstration that a certain percentage of sales of
services, or revenues generated by sales of services, are
generated or projected to be generated outside Ohio;
(iv) Whether the project site consists solely or partly of
point-of-final-purchase retail facilities, notwithstanding
division (F) of this section.
(d) The application fee may not exceed the actual and
reasonable cost of processing the application. No fees other than
an application fee and late fees may be charged.
(e) The credit may equal one hundred per cent of excess
income tax revenue.
(f) The credit may be claimed against the taxes identified in
division (B)(1) of this section, or the tax levied in section
5707.03 of the Revised Code and assessed pursuant to section
5725.13 of the Revised Code.
For purposes of division (B)(2) of this section, "full-time
equivalent employees" has the same meaning as in section 122.171
of the Revised Code.
(C) A taxpayer or potential taxpayer who proposes a project
to create new jobs in this state may apply to the tax credit
authority to enter into an agreement for a tax credit under this
section. The director of development shall prescribe the form of
the application. After receipt of an application, the authority
may enter into an agreement with the taxpayer for a credit under
this section if it determines all of the following:
(1) The taxpayer's project will increase payroll and income
tax revenue;
(2) The taxpayer's project is economically sound and will
benefit the people of this state by increasing opportunities for
employment and strengthening the economy of this state;
(3) Receiving the tax credit is a major factor in the
taxpayer's decision to go forward with the project.
(D) An agreement under this section shall include all of the
following:
(1) A detailed description of the project that is the subject
of the agreement;
(2) The term of the tax credit, which shall not exceed
fifteen years, and the first taxable year, or first calendar year
that includes a tax period, for which the credit may be claimed;
(3) A requirement that the taxpayer shall maintain operations
at the project location for at least the greater of seven years or
the term of the credit plus three years;
(4) The percentage, as determined by the tax credit
authority, of excess income tax revenue that will be allowed as
the amount of the credit for each taxable year or for each
calendar year that includes a tax period;
(5) The pay increase factor to be applied to the taxpayer's
baseline income tax revenue;
(6) A requirement that the taxpayer annually shall report to
the director of development employment, tax withholding,
investment, and other information the director needs to perform
the director's duties under this section;
(7) A requirement that the director of development annually
review the information reported under division (D)(6) of this
section and verify compliance with the agreement; if the taxpayer
is in compliance, a requirement that the director issue a
certificate to the taxpayer stating that the information has been
verified and identifying the amount of the credit that may be
claimed for the taxable or calendar year;
(8) A provision providing that the taxpayer may not relocate
a substantial number of employment positions from elsewhere in
this state to the project location unless the director of
development determines that the legislative authority of the
county, township, or municipal corporation from which the
employment positions would be relocated has been notified by the
taxpayer of the relocation.
For purposes of this section, the movement of an employment
position from one political subdivision to another political
subdivision shall be considered a relocation of an employment
position unless the employment position in the first political
subdivision is replaced.
(E) If a taxpayer fails to meet or comply with any condition
or requirement set forth in a tax credit agreement, the tax credit
authority may amend the agreement to reduce the percentage or term
of the tax credit. The reduction of the percentage or term may
take effect in the current taxable or calendar year.
(F) Projects that consist solely of point-of-final-purchase
retail facilities are not eligible for a tax credit under this
section. If a project consists of both point-of-final-purchase
retail facilities and nonretail facilities, only the portion of
the project consisting of the nonretail facilities is eligible for
a tax credit and only the excess income tax revenue from the
nonretail facilities shall be considered when computing the amount
of the tax credit. If a warehouse facility is part of a
point-of-final-purchase retail facility and supplies only that
facility, the warehouse facility is not eligible for a tax credit.
Catalog distribution centers are not considered
point-of-final-purchase retail facilities for the purposes of this
division, and are eligible for tax credits under this section.
(G) Financial statements and other information submitted to
the department of development or the tax credit authority by an
applicant or recipient of a tax credit under this section, and any
information taken for any purpose from such statements or
information, are not public records subject to section 149.43 of
the Revised Code. However, the chairperson of the authority may
make use of the statements and other information for purposes of
issuing public reports or in connection with court proceedings
concerning tax credit agreements under this section. Upon the
request of the tax commissioner or, if the applicant or recipient
is an insurance company, upon the request of the superintendent of
insurance, the chairperson of the authority shall provide to the
commissioner or superintendent any statement or information
submitted by an applicant or recipient of a tax credit in
connection with the credit. The commissioner or superintendent
shall preserve the confidentiality of the statement or
information.
(H) A taxpayer claiming a credit under this section shall
submit to the tax commissioner or, if the taxpayer is an insurance
company, to the superintendent of insurance, a copy of the
director of development's certificate of verification under
division (D)(7) of this section with the taxpayer's tax report or
return for the taxable year or for the calendar year that includes
the tax period. Failure to submit a copy of the certificate with
the report or return does not invalidate a claim for a credit if
the taxpayer submits a copy of the certificate to the commissioner
or superintendent within sixty days after the commissioner or
superintendent requests it.
(I) The director of development, after consultation with the
tax commissioner and the superintendent of insurance and in
accordance with Chapter 119. of the Revised Code, shall adopt
rules necessary to implement this section. The rules may provide
for recipients of tax credits under this section to be charged
fees to cover administrative costs of the tax credit program. The
fees collected shall be credited to the tax incentive programs
operating fund created in section 122.174 of the Revised Code. At
the time the director gives public notice under division (A) of
section 119.03 of the Revised Code of the adoption of the rules,
the director shall submit copies of the proposed rules to the
chairpersons of the standing committees on economic development in
the senate and the house of representatives.
(J) For the purposes of this section, a taxpayer may include
a partnership, a corporation that has made an election under
subchapter S of chapter one of subtitle A of the Internal Revenue
Code, or any other business entity through which income flows as a
distributive share to its owners. A partnership, S-corporation, or
other such business entity may elect to pass the credit received
under this section through to the persons to whom the income or
profit of the partnership, S-corporation, or other entity is
distributed. The election shall be made on the annual report
required under division (D)(6) of this section. The election
applies to and is irrevocable for the credit for which the report
is submitted. If the election is made, the credit shall be
apportioned among those persons in the same proportions as those
in which the income or profit is distributed.
(K) If the director of development determines that a taxpayer
who has received a credit under this section is not complying with
the requirement under division (D)(3) of this section, the
director shall notify the tax credit authority of the
noncompliance. After receiving such a notice, and after giving the
taxpayer an opportunity to explain the noncompliance, the tax
credit authority may require the taxpayer to refund to this state
a portion of the credit in accordance with the following:
(1) If the taxpayer maintained operations at the project
location for a period less than or equal to the term of the
credit, an amount not exceeding one hundred per cent of the sum of
any credits allowed and received under this section;
(2) If the taxpayer maintained operations at the project
location for a period longer than the term of the credit, but less
than the greater of seven years or the term of the credit plus
three years, an amount not exceeding seventy-five per cent of the
sum of any credits allowed and received under this section.
In determining the portion of the tax credit to be refunded
to this state, the tax credit authority shall consider the effect
of market conditions on the taxpayer's project and whether the
taxpayer continues to maintain other operations in this state.
After making the determination, the authority shall certify the
amount to be refunded to the tax commissioner or superintendent of
insurance, as appropriate. If the amount is certified to the
commissioner, the commissioner shall make an assessment for that
amount against the taxpayer under Chapter 5725., 5733., 5747., or
5751. of the Revised Code. If the amount is certified to the
superintendent, the superintendent shall make an assessment for
that amount against the taxpayer under Chapter 5725. or 5729. of
the Revised Code. The time limitations on assessments under those
chapters do not apply to an assessment under this division, but
the commissioner or superintendent, as appropriate, shall make the
assessment within one year after the date the authority certifies
to the commissioner or superintendent the amount to be refunded.
(L) On or before the first day of August each year, the
director of development shall submit a report to the governor, the
president of the senate, and the speaker of the house of
representatives on the tax credit program under this section. The
report shall include information on the number of agreements that
were entered into under this section during the preceding calendar
year, a description of the project that is the subject of each
such agreement, and an update on the status of projects under
agreements entered into before the preceding calendar year.
(M) There is hereby created the tax credit authority, which
consists of the director of development and four other members
appointed as follows: the governor, the president of the senate,
and the speaker of the house of representatives each shall appoint
one member who shall be a specialist in economic development; the
governor also shall appoint a member who is a specialist in
taxation. Of the initial appointees, the members appointed by the
governor shall serve a term of two years; the members appointed by
the president of the senate and the speaker of the house of
representatives shall serve a term of four years. Thereafter,
terms of office shall be for four years. Initial appointments to
the authority shall be made within thirty days after January 13,
1993. Each member shall serve on the authority until the end of
the term for which the member was appointed. Vacancies shall be
filled in the same manner provided for original appointments. Any
member appointed to fill a vacancy occurring prior to the
expiration of the term for which the member's predecessor was
appointed shall hold office for the remainder of that term.
Members may be reappointed to the authority. Members of the
authority shall receive their necessary and actual expenses while
engaged in the business of the authority. The director of
development shall serve as chairperson of the authority, and the
members annually shall elect a vice-chairperson from among
themselves. Three members of the authority constitute a quorum to
transact and vote on the business of the authority. The majority
vote of the membership of the authority is necessary to approve
any such business, including the election of the vice-chairperson.
The director of development may appoint a professional
employee of the department of development to serve as the
director's substitute at a meeting of the authority. The director
shall make the appointment in writing. In the absence of the
director from a meeting of the authority, the appointed substitute
shall serve as chairperson. In the absence of both the director
and the director's substitute from a meeting, the vice-chairperson
shall serve as chairperson.
(N) For purposes of the credits granted by this section
against the taxes imposed under sections 5725.18 and 5729.03 of
the Revised Code, "taxable year" means the period covered by the
taxpayer's annual statement to the superintendent of insurance.
Sec. 122.175. For purposes of this section, "Appalachian
region" has the same meaning as in section 107.21 of the Revised
Code.
A refundable credit is allowed for investment in property for
which a depreciation deduction is allowed under 26 U.S.C. 167 that
is used in a trade or business located in the Appalachian region.
The credit may be claimed against the tax imposed by section
5707.03 of the Revised Code and assessed pursuant to section
5725.13 of the Revised Code, or the tax imposed by section
5725.18, 5729.03, 5733.06, 5747.02, or 5751.02 of the Revised
Code.
The credit for a taxable year or tax period equals the
original cost of the property incurred by the taxpayer multiplied
by a percentage. The percentage is based on the taxpayer's Ohio
net profit for the taxable or calendar year in which the taxpayer
first uses the property in business in the Appalachian region or
the original cost of the property incurred by the taxpayer,
whichever is greater. If the greater of the taxpayer's net profit
or the property's original cost is less than one hundred thousand
dollars, the percentage is ten per cent. If the greater of the
taxpayer's net profit or the property's original cost is one
hundred thousand dollars or more, the percentage equals fifteen
per cent plus, for each increment of one thousand dollars in
excess of one hundred thousand dollars, one-tenth of one per cent.
The percentage may not exceed fifty-five per cent.
The credit shall be claimed in the order required under
section 5725.98, 5729.98, 5733.98, 5747.98, or 5751.98 of the
Revised Code and shall be claimed for the taxable year, or the
last tax period in the calendar year, in which the taxpayer first
used the property in business in the Appalachian region. If the
credit exceeds the taxpayer's tax liability for the taxable year
or tax period after subtracting all other credits, the taxpayer is
entitled to a refund of the excess. Nothing in this section limits
or disallows pass-through treatment of the credit. If pass-through
treatment is elected, the pass-through entity may not claim the
credit against any tax for which the entity is liable as an
entity.
The director of development shall adopt rules under Chapter
119. of the Revised Code to administer this section, including a
rule defining "Ohio net profit."
Sec. 5725.98. (A) To provide a uniform procedure for
calculating the amount of tax imposed by section 5725.18 of the
Revised Code that is due under this chapter, a taxpayer shall
claim any credits and offsets against tax liability to which it is
entitled in the following order:
(1) The credit for an insurance company or insurance company
group under section 5729.031 of the Revised Code.
(2) The credit for eligible employee training costs under
section 5725.31 of the Revised Code.
(3) The credit for purchasers of qualified low-income
community investments under section 5725.33 of the Revised Code;.
(4) The job retention credit under section 122.171 of the
Revised Code;.
(5) The offset of assessments by the Ohio life and health
insurance guaranty association permitted by section 3956.20 of the
Revised Code.
(6) The refundable credit for Ohio job creation under section
5725.32 of the Revised Code.
(7) The refundable credit under section 5725.19 of the
Revised Code for losses on loans made under the Ohio venture
capital program under sections 150.01 to 150.10 of the Revised
Code.
(8) The refundable credit for investing in property used in a
trade or business in the Appalachian region under section 122.175
of the Revised Code.
(B) For any credit except the refundable credits enumerated
in divisions (A)(6) and (7) of this section, 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.
Sec. 5729.98. (A) To provide a uniform procedure for
calculating the amount of tax due under this chapter, a taxpayer
shall claim any credits and offsets against tax liability to which
it is entitled in the following order:
(1) The credit for an insurance company or insurance company
group under section 5729.031 of the Revised Code.
(2) The credit for eligible employee training costs under
section 5729.07 of the Revised Code.
(3) The credit for purchases of qualified low-income
community investments under section 5729.16 of the Revised Code;.
(4) The job retention credit under section 122.171 of the
Revised Code.
(5) The offset of assessments by the Ohio life and health
insurance guaranty association against tax liability permitted by
section 3956.20 of the Revised Code.
(6) The refundable credit for Ohio job creation under section
5729.032 of the Revised Code.
(7) The refundable credit under section 5729.08 of the
Revised Code for losses on loans made under the Ohio venture
capital program under sections 150.01 to 150.10 of the Revised
Code.
(8) The refundable credit for investing in property used in a
trade or business in the Appalachian region under section 122.175
of the Revised Code.
(B) For any credit except the refundable credits enumerated
in divisions (A)(6) and (7) of this section, 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.
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) For tax year 2005, the credit for taxes paid by a
qualifying pass-through entity allowed under section 5733.0611 of
the Revised Code;
(2) The credit allowed for financial institutions under
section 5733.45 of the Revised Code;
(3) The credit for qualifying affiliated groups under section
5733.068 of the Revised Code;
(4) The subsidiary corporation credit under section 5733.067
of the Revised Code;
(5) The savings and loan assessment credit under section
5733.063 of the Revised Code;
(6) The credit for recycling and litter prevention donations
under section 5733.064 of the Revised Code;
(7) The credit for employers that enter into agreements with
child day-care centers under section 5733.36 of the Revised Code;
(8) The credit for employers that reimburse employee child
care expenses under section 5733.38 of the Revised Code;
(9) The credit for maintaining railroad active grade crossing
warning devices under section 5733.43 of the Revised Code;
(10) The credit for purchases of lights and reflectors under
section 5733.44 of the Revised Code;
(11) The job retention credit under division (B) of section
5733.0610 of the Revised Code;
(12) The credit for tax years 2008 and 2009 for selling
alternative fuel under section 5733.48 of the Revised Code;
(13) The second credit for purchases of new manufacturing
machinery and equipment under section 5733.33 of the Revised Code;
(14) The job training credit under section 5733.42 of the
Revised Code;
(15) The credit for qualified research expenses under section
5733.351 of the Revised Code;
(16) The enterprise zone credit under section 5709.66 of the
Revised Code;
(17) The credit for the eligible costs associated with a
voluntary action under section 5733.34 of the Revised Code;
(18) The credit for employers that establish on-site child
day-care centers under section 5733.37 of the Revised Code;
(19) The ethanol plant investment credit under section
5733.46 of the Revised Code;
(20) The credit for purchases of qualifying grape production
property under section 5733.32 of the Revised Code;
(21) The export sales credit under section 5733.069 of the
Revised Code;
(22) The credit for research and development and technology
transfer investors under section 5733.35 of the Revised Code;
(23) The enterprise zone credits under section 5709.65 of the
Revised Code;
(24) The credit for using Ohio coal under section 5733.39 of
the Revised Code;
(25) The credit for purchases of qualified low-income
community investments under section 5733.58 of the Revised Code;
(26) The credit for small telephone companies under section
5733.57 of the Revised Code;
(27) The credit for eligible nonrecurring 9-1-1 charges under
section 5733.55 of the Revised Code;
(28) For tax year 2005, the credit for providing programs to
aid the communicatively impaired under division (A) of section
5733.56 of the Revised Code;
(29) The research and development credit under section
5733.352 of the Revised Code;
(30) For tax years 2006 and subsequent tax years, the credit
for taxes paid by a qualifying pass-through entity allowed under
section 5733.0611 of the Revised Code;
(31) The refundable credit for rehabilitating a historic
building under section 5733.47 of the Revised Code;
(32) The refundable jobs creation credit under division (A)
of section 5733.0610 of the Revised Code;
(33) The refundable credit for tax withheld under division
(B)(2) of section 5747.062 of the Revised Code;
(34) The refundable credit under section 5733.49 of the
Revised Code for losses on loans made to the Ohio venture capital
program under sections 150.01 to 150.10 of the Revised Code;
(35) For tax years 2006, 2007, and 2008, the refundable
credit allowable under division (B) of section 5733.56 of the
Revised Code;
(36) The refundable motion picture production credit under
section 5733.59 of the Revised Code;
(37) The refundable credit for investing in property used in
a trade or business in the Appalachian region under section
122.175 of the Revised Code.
(B) For any credit except the refundable credits enumerated
in divisions (A)(31) to (36) of this section, 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. 5747.98. (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 low-income credit under section 5747.056 of the
Revised Code;
(9) The credit for displaced workers who pay for job training
under section 5747.27 of the Revised Code;
(10) The campaign contribution credit under section 5747.29
of the Revised Code;
(11) The twenty-dollar personal exemption credit under
section 5747.022 of the Revised Code;
(12) The joint filing credit under division (G) of section
5747.05 of the Revised Code;
(13) The nonresident credit under division (A) of section
5747.05 of the Revised Code;
(14) The credit for a resident's out-of-state income under
division (B) of section 5747.05 of the Revised Code;
(15) The credit for employers that enter into agreements with
child day-care centers under section 5747.34 of the Revised Code;
(16) The credit for employers that reimburse employee child
care expenses under section 5747.36 of the Revised Code;
(17) The credit for adoption of a minor child under section
5747.37 of the Revised Code;
(18) The credit for purchases of lights and reflectors under
section 5747.38 of the Revised Code;
(19) The job retention credit under division (B) of section
5747.058 of the Revised Code;
(20) The credit for selling alternative fuel under section
5747.77 of the Revised Code;
(21) 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;
(22) The job training credit under section 5747.39 of the
Revised Code;
(23) The enterprise zone credit under section 5709.66 of the
Revised Code;
(24) The credit for the eligible costs associated with a
voluntary action under section 5747.32 of the Revised Code;
(25) The credit for employers that establish on-site child
day-care centers under section 5747.35 of the Revised Code;
(26) The ethanol plant investment credit under section
5747.75 of the Revised Code;
(27) The credit for purchases of qualifying grape production
property under section 5747.28 of the Revised Code;
(28) The export sales credit under section 5747.057 of the
Revised Code;
(29) The credit for research and development and technology
transfer investors under section 5747.33 of the Revised Code;
(30) The enterprise zone credits under section 5709.65 of the
Revised Code;
(31) The research and development credit under section
5747.331 of the Revised Code;
(32) The credit for rehabilitating a historic building under
section 5747.76 of the Revised Code;
(33) The refundable credit for rehabilitating a historic
building under section 5747.76 of the Revised Code;
(34) The refundable jobs creation credit under division (A)
of section 5747.058 of the Revised Code;
(35) The refundable credit for taxes paid by a qualifying
entity granted under section 5747.059 of the Revised Code;
(36) The refundable credits for taxes paid by a qualifying
pass-through entity granted under division (J) of section 5747.08
of the Revised Code;
(37) The refundable credit for tax withheld under division
(B)(1) of section 5747.062 of the Revised Code;
(38) The refundable credit for tax withheld under section
5747.063 of the Revised Code;
(39) The refundable credit under section 5747.80 of the
Revised Code for losses on loans made to the Ohio venture capital
program under sections 150.01 to 150.10 of the Revised Code;
(40) The refundable motion picture production credit under
section 5747.66 of the Revised Code;
(41) The refundable credit for investing in property used in
a trade or business in the Appalachian region under section
122.175 of the Revised Code.
(B) For any credit, except the refundable credits enumerated
in 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.
Sec. 5751.98. (A) To provide a uniform procedure for
calculating the amount of tax due under this chapter, a taxpayer
shall claim any credits to which it is entitled in the following
order:
(1) The nonrefundable jobs retention credit under division
(B) of section 5751.50 of the Revised Code;
(2) The nonrefundable credit for qualified research expenses
under division (B) of section 5751.51 of the Revised Code;
(3) The nonrefundable credit for a borrower's qualified
research and development loan payments under division (B) of
section 5751.52 of the Revised Code;
(4) The nonrefundable credit for calendar years 2010 to 2029
for unused net operating losses under division (B) of section
5751.53 of the Revised Code;
(5) The refundable credit for calendar year 2030 for unused
net operating losses under division (C) of section 5751.53 of the
Revised Code;
(6) The refundable jobs creation credit under division (A) of
section 5751.50 of the Revised Code;
(7) The refundable credit for investing in property used in a
trade or business in the Appalachian region under section 122.175
of the Revised Code.
(B) For any credit except the credit refundable credits
enumerated in division (A)(4) of this section, the amount of the
credit for a tax period 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 the credit.
Section 2. That existing sections 122.17, 5725.98, 5729.98,
5733.98, 5747.98, and 5751.98 of the Revised Code are hereby
repealed.
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