To amend section 5747.98 and to enact section 5747.61 of the Revised Code to create a nonrefundable tax credit for individuals who purchase a new hybrid vehicle.

Section 1.  That section 5747.98 be amended and section 5747.61 of the Revised Code be enacted to read as follows:

Sec. 5747.61. (A) As used in this section:

(1) "Hybrid vehicle" means a road vehicle that draws propulsion energy from onboard sources of stored energy that are both an internal combustion or heat engine using consumable fuel and a rechargeable energy storage system.

(2) "Consumable fuel" means any solid, liquid, or gaseous matter that releases energy when consumed by a power unit.

(B) For taxable years beginning on or after January 1, 2009, a nonrefundable credit is allowed against the tax imposed by section 5747.02 of the Revised Code for a taxpayer who purchases a new hybrid vehicle. For the purposes of this section, a taxpayer purchases a new hybrid vehicle if, at the time of purchase, legal title to the hybrid vehicle never has been transferred to a person other than a manufacturer, remanufacturer, distributor, or dealer as a dealer, and the taxpayer is the first person who in good faith purchases the hybrid vehicle for purposes other than resale.

The amount of the credit shall be calculated as follows:

(1) If the new hybrid vehicle has an average fuel economy for combined city and highway driving equal to or more than forty miles per gallon, as measured by the administrator of the United States environmental protection agency, the credit equals three thousand dollars.

(2) If the new hybrid vehicle has an average fuel economy for combined city and highway driving of less than forty miles per gallon, as measured by the administrator of the United States environmental protection agency, the credit equals two thousand dollars.

The taxpayer shall claim the credit for the taxable year in which the purchase was made and in the order required by section 5747.98 of the Revised Code.

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 credit for purchasing a new hybrid vehicle under section 5747.61 of the Revised Code;

(20) The job retention credit under division (B) of section 5747.058 of the Revised Code;

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

(21)(22) 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)(23) The job training credit under section 5747.39 of the Revised Code;

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

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

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

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

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

(28)(29) The export sales credit under section 5747.057 of the Revised Code;

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

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

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

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

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

(34)(35) The refundable jobs creation credit under division (A) of section 5747.058 of the Revised Code;

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

(36)(37) 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)(38) The refundable credit for tax withheld under division (B)(1) of section 5747.062 of the Revised Code;

(38)(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.

(B) For any credit, except the credits enumerated in divisions (A)(33)(34) to (38)(39) 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 section 5747.98 of the Revised Code is hereby repealed.