The online versions of legislation provided on this website are not official. Enrolled bills are the final version passed by the Ohio General Assembly and presented to the Governor for signature. The official version of acts signed by the Governor are available from the Secretary of State's Office in the Continental Plaza, 180 East Broad St., Columbus.
|
H. B. No. 10 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
| |
Cosponsors:
Representatives Adams, J., Adams, R., Wachtmann
A BILL
To amend sections 5747.98 and 5751.98 and to enact
sections 3746.241, 5747.78, and 5751.54 of the
Revised Code to authorize refundable tax credits
through 2017 for the completion of a voluntary
action to remediate a contaminated site and for
the return of such sites to productive use, and to
exempt persons through 2017 who have been issued
covenants not to sue under the Voluntary Action
Program from certain fees and penalties for one
year after the issuance of such a covenant.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5747.98 and 5751.98 be amended and
sections 3746.241, 5747.78, and 5751.54 of the Revised Code be
enacted to read as follows:
Sec. 3746.241. A person to which a covenant not to sue is
issued under section 3746.12 of the Revised Code concerning a
voluntary action that is initiated not later than December 31,
2017, is exempt from any fees or civil or administrative penalties
that are authorized to be levied or imposed under any
environmental law with respect to the property that is the subject
of the covenant not to sue for a period of one year after the
issuance of the covenant. The director of environmental protection
shall adopt rules in accordance with Chapter 119. of the Revised
Code that are necessary to implement this section.
For purposes of this section, a voluntary action is initiated
upon the commencement of a phase I property assessment under this
chapter.
As used in this section, "environmental law" means this
chapter or Chapter 3704., 3734., 3745., 3750., 3751., 3752.,
6109., or 6111. of the Revised Code or a rule adopted under any of
those chapters.
Sec. 5747.78. (A) As used in this section:
(1) "Voluntary action," "remedial activities," "property,"
and "covenant not to sue" have the same meanings as in section
3746.01 of the Revised Code.
(2) "Remediation expenditures" means expenditures that are
made directly to conduct remedial activities on property that is
the subject of a voluntary action for which a covenant not to sue
has been issued under Chapter 3746. of the Revised Code.
"Remediation expenditures" does not include expenditures for
remedial activities derived from grants or other transfers of
money from governmental entities to a taxpayer for which there is
no repayment obligation.
(3) "Pass-through entity" includes a sole proprietorship.
(4) Property is used for a "productive use" if it is used by
any person to conduct a trade or business or if a certificate of
occupancy has been issued for the property by the local authority
having jurisdiction to issue such a certificate and the property
is suitable for the conduct of a trade or business. For the
purposes of this division, the use of property to conduct a trade
or business includes a pass-through entity leasing the property to
lessees for commercial, industrial, or residential purposes.
(5) A voluntary action is "initiated" upon commencement of a
phase I property assessment under Chapter 3746. of the Revised
Code.
(B) There is allowed a refundable credit against the tax
imposed by section 5747.02 of the Revised Code for a taxpayer that
is an equity owner of a pass-through entity to which a covenant
not to sue has been issued under Chapter 3746. of the Revised Code
on or after the effective date of this section. The credit equals
the taxpayer's distributive or proportionate share of twenty-five
per cent of the remediation expenditures paid or incurred by the
entity.
The credit shall be claimed for the taxpayer's taxable year
that ends in the pass-through entity's taxable year in which the
covenant not to sue was issued to the entity by the director of
environmental protection. The credit may not be claimed for any
remediation expenditures paid or incurred for a voluntary action
initiated after December 31, 2017.
A taxpayer may claim a credit under this division for each
voluntary action for which a separate covenant not to sue was
issued to a pass-through entity of which the taxpayer is an equity
owner.
(C) There is allowed an additional refundable credit against
the tax imposed by section 5747.02 of the Revised Code for a
taxpayer that qualifies for the credit under division (B) of this
section if the property that was the subject of the covenant not
to sue is used for a productive use. The credit equals the sum of
twenty-five per cent of the remediation expenditures paid or
incurred by the pass-through entity to which the covenant was
issued. A credit may be claimed under this division regardless of
whether a credit was claimed under division (B) of this section.
The credit shall be claimed for the taxpayer's taxable year
that ends in the pass-through entity's taxable year in which the
property is first used for a productive use after the covenant not
to sue was issued. The credit may not be claimed for any
remediation expenditures paid or incurred for a voluntary action
initiated after December 31, 2017.
A taxpayer may claim a credit under this division for each
property that is the subject of a voluntary action for which a
separate covenant not to sue was issued to a pass-through entity
of which the taxpayer is an equity owner. A taxpayer may not claim
the credit allowed under this division more than once for each
property for which a covenant not to sue was issued.
(D) The credits allowed by this section shall be claimed in
the order prescribed by section 5747.98 of the Revised Code. If
the amount of the credits exceeds the amount of tax otherwise due
after deducting all other credits claimed in that order, the
excess shall be refunded to the taxpayer.
(E) A credit may not be claimed under this section on the
basis of a voluntary action on the basis of which a credit was
claimed under section 5751.54 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 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 credits for voluntary actions authorized
under section 5747.78 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. 5751.54. (A) As used in this section:
(1) "Voluntary action," "remedial activities," "property,"
and "covenant not to sue" have the same meanings as in section
3746.01 of the Revised Code.
(2) "Remediation expenditures" means expenditures that are
made directly to conduct remedial activities on property that is
the subject of a voluntary action for which a covenant not to sue
has been issued under Chapter 3746. of the Revised Code.
"Remediation expenditures" does not include expenditures for
remedial activities derived from grants or other transfers of
money from governmental entities for which there is no repayment
obligation.
(3) Property is used for a "productive use" if it is used by
any person to conduct a trade or business or if a certificate of
occupancy has been issued for the property by the local authority
having jurisdiction to issue such a certificate and the property
is suitable for the conduct of a trade or business. For the
purposes of this division, the use of property to conduct a trade
or business includes a taxpayer leasing the property to lessees
for commercial, industrial, or residential purposes.
(4) A voluntary action is "initiated" upon commencement of a
phase I property assessment under Chapter 3746. of the Revised
Code.
(B) There is allowed a refundable credit against the tax
imposed by this chapter for a taxpayer to which a covenant not to
sue has been issued under Chapter 3746. of the Revised Code on or
after the effective date of this section. The credit equals
twenty-five per cent of the remediation expenditures paid or
incurred by the taxpayer.
If the taxpayer is a calendar year taxpayer, the credit shall
be claimed for the tax period that includes the day on which the
covenant not to sue was issued to the taxpayer by the director of
environmental protection. If the taxpayer is a calendar quarter
taxpayer, one-fourth of the credit amount shall be claimed for the
tax period that includes the day on which the covenant not to sue
was issued and one-fourth of the credit amount shall be claimed in
each of the three ensuing tax periods.
A taxpayer may claim a credit under this division for each
voluntary action for which a covenant not to sue was issued to the
taxpayer. The credit may not be claimed for any remediation
expenditures paid or incurred for a voluntary action initiated
after December 31, 2017.
(C) There is allowed an additional refundable credit against
the tax imposed by this chapter for a taxpayer that qualifies for
the credit under division (B) of this section if the property that
was the subject of the covenant not to sue is owned by the
taxpayer and the property is used for a productive use. The credit
equals twenty-five per cent of the remediation expenditures paid
or incurred by the taxpayer. A credit may be claimed under this
division regardless of whether a credit was claimed under division
(B) of this section.
If the taxpayer is a calendar year taxpayer, the credit shall
be claimed for the tax period in which the property is first used
for a productive use after the covenant not to sue was issued. If
the taxpayer is a calendar quarter taxpayer, one-fourth of the
credit amount shall be claimed for the tax period in which the
property is first used for a productive use after the covenant not
to sue was issued, and one-fourth of the credit amount shall be
claimed in each of the three ensuing tax periods. The credit may
not be claimed for any remediation expenditures paid or incurred
for a voluntary action initiated after December 31, 2017.
A taxpayer may claim a credit under this division for each
property that is the subject of a voluntary action for which a
separate covenant not to sue was issued. The credit may not be
claimed more than once for each property for which a covenant not
to sue was issued.
(D) The credits allowed by this section shall be claimed in
the order prescribed by section 5751.98 of the Revised Code. If
the amount of the credits exceeds the amount of tax otherwise due
after deducting all other credits claimed in that order, the
excess shall be refunded to the taxpayer.
(E) A credit may not be claimed under this section on the
basis of a voluntary action on the basis of which a credit was
claimed under section 5747.78 of the Revised Code.
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 credits for voluntary actions authorized
under section 5751.54 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 5747.98 and 5751.98 of the
Revised Code are hereby repealed.
|
|