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Sub. H. B. No. 58 As Reported by the Senate Ways and Means and Economic Development CommitteeAs Reported by the Senate Ways and Means and Economic Development Committee
129th General Assembly | Regular Session | 2011-2012 |
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Cosponsors:
Representatives Adams, J., Boose, Blair, Derickson, Hackett, Hollington, Martin, Uecker, Amstutz, Stautberg, Letson, McClain, Adams, R., Anielski, Ashford, Baker, Balderson, Brenner, Bubp, Buchy, Burke, Butler, Carey, Carney, Coley, Combs, Damschroder, DeGeeter, Dovilla, Duffey, Fedor, Garland, Gonzales, Goodwin, Grossman, Hall, Hayes, Henne, Huffman, Johnson, Landis, Lundy, Maag, Mallory, McKenney, Mecklenborg, Milkovich, Newbold, O'Brien, Peterson, Phillips, Roegner, Rosenberger, Ruhl, Schuring, Sears, Slaby, Sprague, Stebelton, Thompson, Wachtmann, Young Speaker Batchelder
Senators Schaffer, Patton
A BILL
To amend sections 122.171, 718.151, 5701.11, 5725.98,
5729.98, 5733.0610, 5733.98, 5747.058, 5747.98,
5751.50, and 5751.98 of the Revised Code to
expressly incorporate changes in the Internal
Revenue Code since December 15, 2010, into Ohio
law, to authorize a refundable job retention tax
credit, to temporarily extend the look-back period
from two years to three years for determining
whether a state "on" indicator exists based on the
total unemployment rate for purposes of state
extended unemployment benefits, and to declare an
emergency.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 122.171, 718.151, 5701.11, 5725.98,
5729.98, 5733.0610, 5733.98, 5747.058, 5747.98, 5751.50, and
5751.98 of the Revised Code be amended to read as follows:
Sec. 122.171. (A) As used in this section:
(1) "Capital investment project" means a plan of investment
at a project site for the acquisition, construction, renovation,
or repair of buildings, machinery, or equipment, or for
capitalized costs of basic research and new product development
determined in accordance with generally accepted accounting
principles, but does not include any of the following:
(a) Payments made for the acquisition of personal property
through operating leases;
(b) Project costs paid before January 1, 2002;
(c) Payments made to a related member as defined in section
5733.042 of the Revised Code or to a consolidated elected taxpayer
or a combined taxpayer as defined in section 5751.01 of the
Revised Code.
(2) "Eligible business" means a taxpayer and its related
members with Ohio operations satisfying all of the following:
(a) The taxpayer employs at least five hundred full-time
equivalent employees at the time the tax credit authority grants
the tax credit under this section;
(b) The taxpayer makes or causes to be made payments for the
capital investment project of either of the following:
(i) If the taxpayer is engaged at the project site primarily
as a manufacturer, at least fifty million dollars in the aggregate
at the project site during a period of three consecutive calendar
years, including the calendar year that includes a day of the
taxpayer's taxable year or tax period with respect to which the
credit is granted;
(ii) If the taxpayer is engaged at the project site primarily
in significant corporate administrative functions, as defined by
the director of development by rule, at least twenty million
dollars in the aggregate at the project site during a period of
three consecutive calendar years including the calendar year that
includes a day of the taxpayer's taxable year or tax period with
respect to which the credit is granted.
(c) The taxpayer had a capital investment project reviewed
and approved by the tax credit authority as provided in divisions
(C), (D), and (E) of this section.
(3) "Full-time equivalent employees" means the quotient
obtained by dividing the total number of hours for which employees
were compensated for employment in the project by two thousand
eighty. "Full-time equivalent employees" shall exclude hours that
are counted for a credit under section 122.17 of the Revised Code.
(4) "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 all employees employed in the
project whose hours of compensation are included in calculating
the number of full-time equivalent employees.
(5) "Manufacturer" has the same meaning as in section
5739.011 of the Revised Code.
(6) "Project site" means an integrated complex of facilities
in this state, as specified by the tax credit authority under this
section, within a fifteen-mile radius where a taxpayer is
primarily operating as an eligible business.
(7) "Related member" has the same meaning as in section
5733.042 of the Revised Code as that section existed on the
effective date of its amendment by Am. Sub. H.B. 215 of the 122nd
general assembly, September 29, 1997.
(8) "Taxable year" includes, in the case of a domestic or
foreign insurance company, the calendar year ending on the
thirty-first day of December preceding the day the superintendent
of insurance is required to certify to the treasurer of state
under section 5725.20 or 5729.05 of the Revised Code the amount of
taxes due from insurance companies.
(B) The tax credit authority created under section 122.17 of
the Revised Code may grant tax credits under this section for the
purpose of fostering job retention in this state. Upon application
by an eligible business and upon consideration of the
recommendation of the director of budget and management, tax
commissioner, the superintendent of insurance in the case of an
insurance company, and director of development under division (C)
of this section, the tax credit authority may grant to an eligible
business a nonrefundable credit the following credits against the
tax imposed by section 5725.18, 5729.03, 5733.06, or 5747.02, or
5751.02 of the Revised Code:
(1) A nonrefundable credit to an eligible business;
(2) A refundable credit to an eligible business meeting the
following conditions, provided that the director of budget and
management, tax commissioner, superintendent of insurance in the
case of an insurance company, and director of development have
recommended the granting of the credit to the tax credit authority
before July 1, 2011:
(a) The business retains at least one thousand full-time
equivalent employees at the project site.
(b) The business makes or causes to be made payments for a
capital investment project of at least twenty-five million dollars
in the aggregate at the project site during a period of three
consecutive calendar years, including the calendar year that
includes a day of the business' taxable year or tax period with
respect to which the credit is granted.
(c) In 2010, the business received a written offer of
financial incentives from another state of the United States that
the director determines to be sufficient inducement for the
business to relocate the business' operations from this state to
that state.
The credits authorized in divisions (B)(1) and (2) of this
section may be granted for a period up to fifteen taxable years
and against or, in the case of the tax levied by
Chapter 5751.
section 5751.02 of the Revised Code, for a period of up to fifteen
calendar years. The credit amount for a taxable year or a calendar
year that includes the tax period for which a credit may be
claimed equals the income tax revenue for that year multiplied by
the percentage specified in the agreement with the tax credit
authority. The percentage may not exceed seventy-five per cent.
The credit shall be claimed in the order required under section
5725.98, 5729.98, 5733.98, or 5747.98, or 5751.98 of the Revised
Code. In determining the percentage and term of the credit, the
tax credit authority shall consider both the number of full-time
equivalent employees and the value of the capital investment
project. The credit amount may not be based on the income tax
revenue for a calendar year before the calendar year in which the
tax credit authority specifies the tax credit is to begin, and the
credit shall be claimed only for the taxable years or tax periods
specified in the eligible business' agreement with the tax credit
authority. In no event shall the credit be claimed for a taxable
year or tax period terminating before the date specified in the
agreement. 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. 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.
Any unused portion of a tax credit may be carried forward for
not more than three additional years after the year for which the
credit is granted If a nonrefundable credit allowed under division
(B)(1) of this section for a taxable year or tax period exceeds
the taxpayer's tax liability for that year or period, the excess
may be carried forward for the three succeeding taxable or
calendar years, but the amount of any excess credit allowed in any
taxable year or tax period shall be deducted from the balance
carried forward to the succeeding year or period.
(C) A taxpayer that proposes a capital investment project to
retain 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 shall
forward copies of the application to the director of budget and
management, the tax commissioner, the superintendent of insurance
in the case of an insurance company, and the director of
development, each of whom shall review the application to
determine the economic impact the proposed project would have on
the state and the affected political subdivisions and shall submit
a summary of their determinations and recommendations to the
authority.
(D) Upon review and consideration of the determinations and
recommendations described in division (C) of this section, the tax
credit authority may enter into an agreement with the taxpayer for
a credit under this section if the authority determines all of the
following:
(1) The taxpayer's capital investment project will result in
the retention of employment in this state.
(2) The taxpayer is economically sound and has the ability to
complete the proposed capital investment project.
(3) The taxpayer intends to and has the ability to maintain
operations at the project site for at least the greater of (a) the
term of the credit plus three years, or (b) seven years.
(4) Receiving the credit is a major factor in the taxpayer's
decision to begin, continue with, or complete the project.
(E) 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, including the amount of the investment, the
period over which the investment has been or is being made, the
number of full-time equivalent employees at the project site, and
the anticipated income tax revenue to be generated.
(2) The term of the credit, the percentage of the tax credit,
the maximum annual value of tax credits that may be allowed each
year, and the first year for which the credit may be claimed.
(3) A requirement that the taxpayer maintain operations at
the project site for at least the greater of (a) the term of the
credit plus three years, or (b) seven years.
(4) A requirement that the taxpayer retain a specified number
of full-time equivalent employees at the project site and within
this state for the term of the credit, including a requirement
that the taxpayer continue to employ at least five hundred
full-time equivalent employees during the entire term of the
agreement in the case of a credit granted under division (B)(1) of
this section, and one thousand full-time equivalent employees in
the case of a credit granted under division (B)(2) of this
section.
(5) A requirement that the taxpayer annually report to the
director of development employment, tax withholding, capital
investment, and other information the director needs to perform
the director's duties under this section.
(6) A requirement that the director of development annually
review the annual reports of the taxpayer to verify the
information reported under division (E)(5) of this section and
compliance with the agreement. Upon verification, the director
shall issue a certificate to the taxpayer stating that the
information has been verified and identifying the amount of the
credit for the taxable year or calendar year that includes the tax
period. In determining the number of full-time equivalent
employees, no position shall be counted that is filled by an
employee who is included in the calculation of a tax credit under
section 122.17 of the Revised Code.
(7) A provision providing that the taxpayer may not relocate
a substantial number of employment positions from elsewhere in
this state to the project site unless the director of development
determines that the taxpayer notified the legislative authority of
the county, township, or municipal corporation from which the
employment positions would be relocated.
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 movement is confined to the project site. The
transfer of an employment position from one political subdivision
to another political subdivision shall not be considered a
relocation of an employment position if the employment position in
the first political subdivision is replaced by another employment
position.
(8) A waiver by the taxpayer of any limitations periods
relating to assessments or adjustments resulting from the
taxpayer's failure to comply with the agreement.
(F) 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 credit. The reduction of the percentage or term may take
effect in the current taxable or calendar year.
(G) Financial statements and other information submitted to
the department of development or the tax credit authority by an
applicant for 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 the superintendent of
insurance in the case of an insurance company, the chairperson of
the authority shall provide to the commissioner or superintendent
any statement or other information submitted by an applicant for
or recipient of a tax credit in connection with the credit. The
commissioner or superintendent shall preserve the confidentiality
of the statement or other information.
(H) A taxpayer claiming a tax credit under this section shall
submit to the tax commissioner or, in the case of an insurance
company, to the superintendent of insurance, a copy of the
director of development's certificate of verification under
division (E)(6) 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) 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 (E)(5) 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.
(J) If the director of development determines that a taxpayer
that received a tax credit under this section is not complying
with the requirement under division (E)(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
authority may terminate the agreement and require the taxpayer to
refund to the state all or a portion of the credit claimed in
previous years, as follows:
(1) If the taxpayer maintained operations at the project site
for less than or equal to the term of the credit, an amount not to
exceed one hundred per cent of the sum of any tax credits allowed
and received under this section.
(2) If the taxpayer maintained operations at the project site
longer than the term of the credit, but less than the greater of
(a) the term of the credit plus three years, or (b) seven years,
the amount required to be refunded shall not exceed seventy-five
per cent of the sum of any tax credits allowed and received under
this section.
In determining the portion of the credit to be refunded to
this state, the 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 the superintendent of
insurance. If the taxpayer is not an insurance company, the
commissioner shall make an assessment for that amount against the
taxpayer under Chapter 5733., 5747., or 5751. of the Revised Code.
If the taxpayer is an insurance company, the superintendent of
insurance shall make an assessment under section 5725.222 or
5729.102 of the Revised Code. The time limitations on assessments
under those chapters and sections do not apply to an assessment
under this division, but the commissioner or superintendent shall
make the assessment within one year after the date the authority
certifies to the commissioner or superintendent the amount to be
refunded.
(K) 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.
(L) On or before the first day of August of 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)(1) The aggregate amount of tax credits issued under
division (B)(1) of this section during any calendar year for
capital investment projects reviewed and approved by the tax
credit authority may not exceed the following amounts:
(1)(a) For 2010, thirteen million dollars;
(2)(b) For 2011 through 2023, the amount of the limit for the
preceding calendar year plus thirteen million dollars;
(3)(c) For 2024 and each year thereafter, one hundred
ninety-five million dollars.
(2) The aggregate amount of tax credits issued under division
(B)(2) of this section during any calendar year for capital
improvement projects reviewed and approved by the tax credit
authority may not exceed eight million dollars.
The foregoing annual limitations in division (M) of this
section do not apply to credits for capital investment projects
approved by the tax credit authority before July 1, 2009.
Sec. 718.151. A municipal corporation, by ordinance, may
grant a nonrefundable credit against its tax on income to a
taxpayer that also receives a nonrefundable tax credit under
section 122.171 of the Revised Code and may grant a refundable
credit against its tax on income to a taxpayer that receives a
refundable tax credit under that section. If a credit is granted
under this section, it shall be measured as a percentage of the
income tax revenue the municipal corporation derives from the
retained employees of the taxpayer, and shall be for a term not
exceeding fifteen years. Before a municipal corporation passes an
ordinance allowing such a credit, the municipal corporation and
the taxpayer shall enter into an agreement specifying all the
conditions of the credit.
Sec. 5701.11. The effective date to which this section
refers is the effective date of this section as amended by H.B. 58
495 of the 128th 129th general assembly.
(A)(1) Except as provided under division (A)(2) or (B) of
this section, any reference in Title LVII of the Revised Code to
the Internal Revenue Code, to the Internal Revenue Code "as
amended," to other laws of the United States, or to other laws of
the United States, "as amended," means the Internal Revenue Code
or other laws of the United States as they exist on the effective
date.
(2) This section does not apply to any reference in Title
LVII of the Revised Code to the Internal Revenue Code as of a date
certain specifying the day, month, and year, or to other laws of
the United States as of a date certain specifying the day, month,
and year.
(B)(1) For purposes of applying section 5733.04, 5745.01, or
5747.01 of the Revised Code to a taxpayer's taxable year ending
after October 16, 2009 December 15, 2010, and before the effective
date, a taxpayer may irrevocably elect to incorporate the
provisions of the Internal Revenue Code or other laws of the
United States that are in effect for federal income tax purposes
for that taxable year if those provisions differ from the
provisions that, under division (A) of this section, would
otherwise apply. The filing by the taxpayer for that taxable year
of a report or return that incorporates the provisions of the
Internal Revenue Code or other laws of the United States
applicable for federal income tax purposes for that taxable year,
and that does not include any adjustments to reverse the effects
of any differences between those provisions and the provisions
that would otherwise apply, constitutes the making of an
irrevocable election under this division for that taxable year.
(2) Elections under prior versions of division (B)(1) of this
section remain in effect for the taxable years to which they
apply.
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 nonrefundable job retention credit under division
(B)(1) of 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 retention under
division (B)(2) of section 122.171 of the Revised Code;
(7) The refundable credit for Ohio job creation under section
5725.32 of the Revised Code.;
(7)(8) 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.
(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 nonrefundable job retention credit under division
(B)(1) of 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 retention under
division (B)(2) of section 122.171 of the Revised Code;
(7) The refundable credit for Ohio job creation under section
5729.032 of the Revised Code.;
(7)(8) 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.
(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. 5733.0610. (A) A refundable corporation franchise tax
credit granted by the tax credit authority under section 122.17 or
division (B)(2) of section 122.171 of the Revised Code may be
claimed under this chapter, in the order required under section
5733.98 of the Revised Code. 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. The refundable credit shall not be claimed
for any tax years following the calendar year in which a
relocation of employment positions occurs in violation of an
agreement entered into under section 122.171 of the Revised Code.
(B) A nonrefundable corporation franchise tax credit granted
by the tax credit authority under division (B)(1) of section
122.171 of the Revised Code may be claimed under this chapter, in
the order required under section 5733.98 of the Revised Code.
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 nonrefundable 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 or job retention
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.
(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. 5747.058. (A) A refundable income tax credit granted by
the tax credit authority under section 122.17 or division (B)(2)
of section 122.171 of the Revised Code may be claimed under this
chapter, in the order required under section 5747.98 of the
Revised Code. 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. The refundable credit shall not be claimed for any
taxable years ending with or following the calendar year in which
a relocation of employment positions occurs in violation of an
agreement entered into under section 122.171 of the Revised Code.
(B) A nonrefundable income tax credit granted by the tax
credit authority under division (B)(1) of section 122.171 of the
Revised Code may be claimed under this chapter, in the order
required under 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 nonrefundable 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 or job retention
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.
(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. 5751.50. (A) For tax periods beginning on or after
January 1, 2008, a refundable credit granted by the tax credit
authority under section 122.17 or division (B)(2) of section
122.171 of the Revised Code may be claimed under this chapter in
the order required under section 5751.98 of the Revised Code. 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 period. A credit claimed
in calendar year 2008 may not be applied against the tax otherwise
due for a tax period beginning before July 1, 2008. The refundable
credit shall not be claimed against the tax otherwise due for any
tax period beginning after the date on which a relocation of
employment positions occurs in violation of an agreement entered
into under sections section 122.17 or 122.171 of the Revised Code.
(B) For tax periods beginning on or after January 1, 2008, a
nonrefundable credit granted by the tax credit authority under
division (B)(1) of section 122.171 of the Revised Code may be
claimed under this chapter in the order required under section
5751.98 of the Revised Code. A credit claimed in calendar year
2008 may not be applied against the tax otherwise due under this
chapter for a tax period beginning before July 1, 2008. The credit
shall not be claimed against the tax otherwise due for any tax
period beginning after the date on which a relocation of
employment positions occurs in violation of an agreement entered
into under sections section 122.17 or 122.171 of the Revised Code.
No credit shall be allowed under this chapter if the credit was
available against the tax imposed by section 5733.06 or 5747.02 of
the Revised Code, except to the extent the credit was not applied
against such tax.
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 or job retention
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 122.171, 718.151, 5701.11,
5725.98, 5729.98, 5733.0610, 5733.98, 5747.058, 5747.98, 5751.50,
and 5751.98 of the Revised Code are hereby repealed.
Section 3. Notwithstanding any provision of section 4141.301
of the Revised Code to the contrary, with respect to compensation
for weeks of unemployment beginning after December 17, 2010, and
ending on or before December 31, 2011, the word "two" as used in
divisions (A)(3)(a)(ii) and (A)(5) of section 4141.301 of the
Revised Code shall be changed to "three."
Section 4. This act is hereby declared to be an emergency
measure necessary for the immediate preservation of the public
peace, health, and safety. The reason for such necessity lies in
the need to enable taxpayers to avoid making miscellaneous
adjustments on their 2010 tax returns that increase tax
liabilities and in the need, in these times of high unemployment,
to provide continued assistance to those who have been struggling
to find work in this difficult economic climate, while at the same
time protecting the health and safety of the public. Therefore,
this act shall go into immediate effect.
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