To amend sections 5747.98 and 5751.98 and to enact sections 5747.81 and 5751.55 of the Revised Code to authorize a nonrefundable tax credit for a business that increases payroll and expands into a vacant facility.

Section 1. That sections 5747.98 and 5751.98 be amended and sections 5747.81 and 5751.55 of the Revised Code be enacted to read as follows:

Sec. 5747.81.  As used in this section, "payroll inflation factor" for a taxable year means one plus the per cent change in the employment cost index for total compensation of all workers in private industry as published by the United States bureau of labor statistics for the twelve-month period ending with the calendar quarter that includes the last day of the taxpayer's taxable year for which the credit is claimed.

A credit is allowed against the tax imposed by section 5747.02 of the Revised Code for a taxpayer that, on or after the effective date of this section as enacted by . . . . . of the 129th general assembly, leases or purchases commercial space in this state that, for the six months immediately preceding the lease or purchase date, was unoccupied, and at which the taxpayer employs at least fifty per cent of its employees who are employed in this state. A taxpayer may qualify for a credit under this section only once. Except as otherwise provided in this section, the credit may be claimed for the taxpayer's taxable year that includes the lease or purchase date and for the four ensuing taxable years. The credit for a taxable year equals the taxpayer's income tax withholdings under section 5747.06 of the Revised Code for the taxable year less the product of such withholdings for the immediately preceding taxable year multiplied by the payroll inflation factor. The taxpayer may not claim a credit for a taxable year or for any subsequent taxable year if, during the taxable year, the taxpayer fails to employ at least fifty per cent of its employees who are employed in this state at the commercial space, unless the taxpayer relocates such employees to other commercial space in this state that, for the six months immediately preceding the date of the lease or purchase, was unoccupied.

The credit shall be claimed in the order required under section 5747.98 of the Revised Code. The amount of credit claimed may not exceed the tax otherwise due after allowing for all preceding credits in that order, but the excess may be carried forward to the next ensuing three taxable years.

The tax commissioner shall publish on the department of taxation's web site the payroll inflation factor for each quarter.

Nothing in this section limits or disallows pass-through treatment of the credit. An owner of a pass-through entity that claims the credit under section 5751.55 of the Revised Code may not claim the credit under this section.

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 expanding into a vacant facility under section 5747.81 of the Revised Code;

(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 for tax withheld under section 5747.063 of the Revised Code;

(39)(40) 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)(41) The refundable motion picture production credit under section 5747.66 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. 5751.55.  As used in this division, "payroll inflation factor" for a calendar year means one plus the per cent change in the employment cost index for total compensation of all workers in private industry as published by the United States bureau of labor statistics for the twelve-month period ending with the third calendar quarter of the calendar year for which the credit is claimed.

A credit is allowed against the tax imposed by section 5751.02 of the Revised Code for a taxpayer that, on or after the effective date of this section as enacted by . . . . . of the 129th general assembly, leases or purchases commercial space in this state that, for the six months immediately preceding the lease or purchase date, was unoccupied, and at which the taxpayer employs at least fifty per cent of its employees who are employed in this state. A taxpayer may qualify for a credit under this section only once. Except as otherwise provided in this section, the credit may be claimed for the calendar year that includes the lease or purchase date and for the four ensuing calendar years. The credit for a calendar year equals the taxpayer's income tax withholdings under section 5747.06 of the Revised Code for the calendar year less the product of such withholdings for the immediately preceding year multiplied by the payroll inflation factor. The taxpayer may not claim a credit for a calendar year or for any subsequent year if, during the year, the taxpayer fails to employ at least fifty per cent of its employees who are employed in this state at the commercial space, unless the taxpayer relocates such employees to other commercial space in this state that, for the six months immediately preceding the date of the lease or purchase, was unoccupied.

The credit shall be claimed with the annual return required under section 5751.051 of the Revised Code for the calendar year for which the credit is being claimed. The credit shall be claimed in the order required under section 5751.98 of the Revised Code. The amount of credit claimed may not exceed the tax otherwise due with the annual return after allowing for all preceding credits in that order, but the excess may be carried forward to tax periods in or coinciding with the next ensuing three calendar years.

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 credit for expanding into a vacant facility under section 5751.55 of the Revised Code;

(2) The nonrefundable jobs retention credit under division (B) of section 5751.50 of the Revised Code;

(2)(3) The nonrefundable credit for qualified research expenses under division (B) of section 5751.51 of the Revised Code;

(3)(4) 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)(5) 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)(6) The refundable credit for calendar year 2030 for unused net operating losses under division (C) of section 5751.53 of the Revised Code;

(6)(7) The refundable jobs creation credit under division (A) of section 5751.50 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.