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H. B. No. 107 As IntroducedAs Introduced
130th General Assembly | Regular Session | 2013-2014 |
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Cosponsors:
Representatives Adams, J., Barborak, Gonzales, Henne, Stebelton
A BILL
To amend sections 5725.98, 5726.98, 5729.98, and
5747.98 and to enact section 122.177 of the
Revised Code to authorize a tax credit for
businesses that employ high school students in
career exploration internships.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5725.98, 5726.98, 5729.98, and
5747.98 be amended and section 122.177 of the Revised Code be
enacted to read as follows:
Sec. 122.177. (A) As used in this section:
(1) "Business" means a sole proprietorship, a corporation for
profit, or a pass-through entity as defined in section 5733.04 of
the Revised Code.
(2) "Career exploration internship" means a paid employment
relationship between a student intern and a business in which the
student intern acquires education, instruction, and experience
relevant to the student intern's career aspirations.
(3) "Student intern" means an individual who, at the time the
business applies for the tax credit under division (B) of this
section, meets all of the following criteria:
(a) The individual is entitled to attend school in this
state.
(b) The individual is either between sixteen and eighteen
years of age or is enrolled in grade eleven or twelve.
(c) The individual has a cumulative grade point average of at
least 2.5 out of 4.0, or its equivalent as designated in the rules
adopted by the state board of education.
(a) In the case of a business applying the tax credit against
the tax imposed under section 5725.18, 5727.30, 5727.81, 5727.811,
or 5729.03 of the Revised Code, a calendar year;
(b) In the case of a business applying the tax credit against
the tax imposed under section 5726.02 or 5747.02 of the Revised
Code, the business's taxable year;
(c) In the case of a business applying the tax credit against
the tax imposed under section 5727.24 of the Revised Code, the
business's return period.
(B) A nonrefundable credit is allowed against the tax imposed
by section 5725.18, 5726.02, 5727.24, 5727.30, 5727.81, 5727.811,
5729.03, or 5747.02 of the Revised Code for a business that
employs a student intern in a career exploration internship. To
qualify for the credit, the career exploration internship shall be
at least twenty weeks in duration and include at least two hundred
hours of paid work and instruction. To obtain the tax credit, the
business shall apply to the development services agency before the
starting date of the career exploration internship. The
application shall include all of the following:
(1) A brief description of the career exploration internship;
(2) A signed statement by the student intern briefly
describing the student intern's career aspirations and how the
student intern believes this career exploration internship may
help achieve those aspirations;
(3) A signed statement by a principal or guidance counselor
at the student intern's high school or, in the case of a home
schooled student, an individual responsible for administering
instruction to the student intern, acknowledging that the
employment opportunity qualifies as a career exploration
internship;
(4) The name, address, and telephone number of the business;
(5) Any other information required by the development
services agency.
(C)(1) The development services agency shall review and make
a determination with respect to each application submitted under
division (B) of this section in the order in which the application
is received. The agency shall not approve any application under
this section that is received by the agency more than three years
after the effective date of .B. of the 130th general assembly. The
agency may not otherwise deny an application unless the
application is incomplete, the proposed employment relationship
does not qualify as a career exploration internship for which a
credit may be granted under this section, the business is
ineligible to receive a tax credit certificate under division
(D)(1) or (J) of this section, or the agency determines that
approving the application would cause the tax credit ceiling
described in division (D)(3) of this section to be exceeded.
(2) The agency shall send written notice of its determination
to the business within thirty days after receiving the
application. If the agency determines that the application shall
not be approved, the notice shall include the reasons for such
determination.
(3) The agency's determination is final and may not be
appealed for any reason. A business may submit a new or amended
application under division (B) of this section at any time before
or after receiving notice under division (C)(2) of this section.
(D)(1) In any calendar year, the development services agency
shall not issue tax credit certificates under this section to any
business that has received tax credit certificates for three
career exploration internships in that calendar year. The agency
shall not issue a tax credit certificate unless the agency
receives a report from the business within thirty days after the
end of the career exploration internship or thirteen months after
the approval of the application, whichever comes first, that
includes all of the following:
(a) The date the student intern began the internship;
(b) The date the internship ended or a statement that the
student will continue to be employed by the business;
(c) The total number of hours during the internship that the
student intern was employed by the business;
(d) The total wages paid by the business to the student
intern during the internship;
(e) A signed statement by the student intern briefly
describing the duties performed during the internship and the
skills and experiences gained throughout the internship;
(f) Any other information required by the agency.
(2) If the agency receives the report and determines that it
contains all of the information and the statement required by
division (D)(1) of this section and that the career exploration
internship described in the report complies with all the
provisions of this section, the agency shall issue a tax credit
certificate to the business. The tax credit certificate shall
indicate that the business is allowed a tax credit equal to the
lesser of the following:
(a) Fifty per cent of the wages paid by the business to the
student intern for the first twelve months following the date the
application was approved;
(b) Five thousand dollars.
(3) The sum of all tax credit certificates issued under this
section shall not exceed two million dollars.
(E) A business that is issued a tax credit certificate under
this section shall claim the tax credit for the tax period in
which the certificate is issued, except that an individual
claiming a distributive share of a credit as an equity owner of a
pass-through entity shall claim the credit for the taxpayer's
taxable year that includes the last day of the entity's taxable
year in which the certificate was issued. If applicable to the
business, the tax credit shall be claimed in the order required
under section 5725.98, 5726.98, 5729.98, or 5747.98 of the Revised
Code. If the amount of the credit exceeds the amount of tax
otherwise due, the excess shall be allowed as a credit in each of
the ensuing three tax periods, but the amount of any excess credit
allowed in an ensuing tax period shall be deducted from the
balance carried forward to the next tax period. If the tax credit
is applied against the tax imposed under section 5727.24 of the
Revised Code, any excess credit shall be allowed as a credit
against the tax due for each return period in the ensuing three
years.
(F) The director of development services shall prescribe the
form of the tax credit certificate and shall report to the tax
commissioner any information requested by the commissioner
concerning tax credit certificates issued under this section. A
business shall present the certificate to the tax commissioner
upon the commissioner's request.
(G) A tax credit certificate issued to a business under this
section may not be transferred by that business to any other
person. This division does not prohibit an equity owner of a
pass-through entity from claiming the owner's distributive or
proportionate share of the credit allowed under this section.
(H) A business that receives a tax credit certificate under
this section may submit a new application under division (B) of
this section for another career exploration internship with the
same student intern. Such an application does not have to include
the statements otherwise required by divisions (B)(2) and (3) of
this section.
(I) Annually, before the seventh day of January, the
development services agency shall compile a report indicating the
number of career exploration internships approved by the agency
under this section, the statements issued by the student interns
under divisions (B)(2) and (D)(1)(e) of this section, the number
of student interns that continued employment with the business
after the commencement of the career exploration internship, and
the total amount of tax credit certificates issued under this
section. The report shall not disclose any student interns'
personally identifiable information. The agency shall provide
copies of the report to the governor, the speaker and minority
leader of the house of representatives, and the president and
minority leader of the senate.
(J)(1) If the development services agency receives
information alleging that a business that was issued a tax credit
certificate under this section presented or contributed to the
presentation of false information to the agency in connection with
obtaining the certificate, the agency shall send written notice to
the business that if the allegation is found to be true the
business may be penalized as provided in division (J) of this
section.
(2) After giving the business an opportunity to be heard on
the allegation, the agency shall determine if the business
presented or contributed to the presentation of false information
in connection with obtaining a tax credit certificate.
(3) If the agency determines a business submitted or
contributed to the submission of false information, it may revoke
any remaining tax credit available to the business. The agency
shall send written notice of the revocation to the business and
the tax commissioner. The tax commissioner may make an assessment
against the business to recapture any amount of the tax credit
that the business already has claimed under this section. The time
limitations on assessments under the laws of the particular tax
against which the business claimed the credit do not apply to an
assessment under this section.
(4) If the agency determines a business submitted or
contributed to the submission of false information, the agency
shall not approve any application by the business under division
(B) of this section or issue any tax credit certificate to the
business under division (D)(2) of this section after the date of
the agency's determination.
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 employing a student intern under section
122.177 of the Revised Code;
(4) The credit for purchasers of qualified low-income
community investments under section 5725.33 of the Revised Code;
(4)(5) The nonrefundable job retention credit under division
(B)(1) of section 122.171 of the Revised Code;
(5)(6) The offset of assessments by the Ohio life and health
insurance guaranty association permitted by section 3956.20 of the
Revised Code;
(6)(7) The refundable credit for rehabilitating a historic
building under section 5725.34 of the Revised Code.
(7)(8) The refundable credit for Ohio job retention under
division (B)(2) or (3) of section 122.171 of the Revised Code;
(8)(9) The refundable credit for Ohio job creation under
section 5725.32 of the Revised Code;
(9)(10) 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 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. 5726.98. (A) To provide a uniform procedure for
calculating the amount of tax due under section 5726.02 of the
Revised Code, a taxpayer shall claim any credits to which the
taxpayer is entitled under this chapter in the following order:
(1) The bank organization assessment credit under section
5726.51 of the Revised Code;
(2) The nonrefundable credit for employing a student intern
under section 122.177 of the Revised Code;
(3) The nonrefundable job retention credit under division (B)
of section 5726.50 of the Revised Code;
(3)(4) The nonrefundable credit for purchases of qualified
low-income community investments under section 5726.54 of the
Revised Code;
(4)(5) The nonrefundable credit for qualified research
expenses under section 5726.56 of the Revised Code;
(5)(6) The nonrefundable credit for qualifying dealer in
intangibles taxes under section 5726.57 of the Revised Code.;
(6)(7) The refundable credit for rehabilitating an historic
building under section 5726.52 of the Revised Code;
(7)(8) The refundable job retention or job creation credit
under division (A) of section 5726.50 of the Revised Code;
(8)(9) The refundable credit under section 5726.53 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;
(9)(10) The refundable motion picture production credit under
section 5726.55 of the Revised Code.
(B) For any credit except the refundable credits enumerated
in 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 employing a student intern under section
122.177 of the Revised Code;
(4) The credit for purchases of qualified low-income
community investments under section 5729.16 of the Revised Code;
(4)(5) The nonrefundable job retention credit under division
(B)(1) of section 122.171 of the Revised Code;
(5)(6) 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)(7) The refundable credit for rehabilitating a historic
building under section 5729.17 of the Revised Code.
(7)(8) The refundable credit for Ohio job retention under
division (B)(2) or (3) of section 122.171 of the Revised Code;
(8)(9) The refundable credit for Ohio job creation under
section 5729.032 of the Revised Code;
(9)(10) 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 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. 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 employing a student intern under section
122.177 of the Revised Code;
(20) The nonrefundable 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 small business investment credit under section
5747.81 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 or job retention
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 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;
(38)(39) The refundable motion picture production credit
under section 5747.66 of the Revised Code.
(39)(40) The refundable credit for financial institution
taxes paid by a pass-through entity granted under section 5747.65
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.
Section 2. That existing sections 5725.98, 5726.98, 5729.98,
and 5747.98 of the Revised Code are hereby repealed.
Section 3. Section 5747.98 of the Revised Code is presented
in this act as a composite of the section as amended by both Am.
Sub. H.B. 386 and Am. Sub. H.B. 510 of the 129th General Assembly.
The General Assembly, applying the principle stated in division
(B) of section 1.52 of the Revised Code that amendments are to be
harmonized if reasonably capable of simultaneous operation, finds
that the composite is the resulting version of the section in
effect prior to the effective date of the section as presented in
this act.
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