To amend sections 5725.98, 5726.98, 5729.98, 5747.98, and 5749.11 and to enact sections 122.177, 5725.35, 5726.58, 5729.18, 5747.78, 5749.18, and 5749.98 of the Revised Code to authorize a nonrefundable credit against the income tax and certain business taxes for the rehabilitation of a vacant industrial site.

Section 1. That sections 5725.98, 5726.98, 5729.98, 5747.98, and 5749.11 be amended and sections 122.177, 5725.35, 5726.58, 5729.18, 5747.78, 5749.18, and 5749.98 of the Revised Code be enacted to read as follows:

Sec. 122.177.  (A) As used in this section:

(1) "Vacant facility" means a building, a complex of buildings, or the structural remains of a former building or complex of buildings that meet all of the following criteria:

(a) The building or buildings were used, or designed and constructed for use, in production, manufacturing, fabrication, assembly, processing, refining, finishing, or warehousing of tangible personal property, including tangible personal property that is or was used for sale to third parties or for use by the owner in the owner's business.

(b) The building or buildings were placed into service at least fifteen years before the date of an application submitted under division (B) of this section with respect to the building or buildings.

(c) At least seventy-five per cent of the square footage of the building or building complex has not been used to carry on production, manufacturing, assembly, processing, refining, finishing, or warehousing of tangible personal property during the five years immediately preceding the date an application is submitted under division (B) of this section with respect to the building or building complex.

For the purposes of this section, a building or vacant facility is considered to have been "placed into service" when at least fifty per cent of the combined square footage of the building or vacant facility has been occupied.

(2) "Vacant industrial site" means a vacant facility and the parcel or parcels of real property upon which the vacant facility is located. "Vacant industrial site" shall not include any parcel that is subject to an administrative, civil, or criminal environmental enforcement action or against which delinquent taxes, interest, assessments, and penalties remain unpaid.

(3) "Qualified investment" means expenditures for the rehabilitation of a vacant industrial site that has been designated as an industrial recovery site by the development services agency under division (C) of this section. "Qualified investment" shall not include legal expenses, including any expenses incurred by reason of an administrative, civil, or criminal environmental enforcement action brought with respect to the vacant industrial site.

(4) "Rehabilitation" means the remodeling, repair, alteration, demolition, or redevelopment of a vacant industrial site for the purpose of putting the site to a better or more efficient use.

(B) Upon application by a county or municipal corporation, the director of development services may designate a vacant industrial site located within the municipal corporation or county as an industrial recovery site. A municipal corporation may request such a designation for a site located within the municipal corporation, and a county may request such a designation for a site located within the unincorporated territory of the county.

The application shall be in the form prescribed by the director. In addition to any other information required by the director, the application shall include both of the following:

(1) A detailed plan for the development and use of the vacant industrial site;

(2) A copy of a resolution adopted by the legislative authority of the municipal corporation or the board of county commissioners recommending designation of the site as an industrial recovery site.

(C) The director of development services shall review each application submitted under this section. The director shall determine whether, on the date the application was filed, the site described in an application qualifies as a vacant industrial site. If the site so qualifies, the director shall determine whether designation of the site as an industrial recovery site is in the best interests of the state. In making that determination, the director shall consider the following factors:

(1) The level of distress caused by job losses in the community surrounding the vacant industrial site;

(2) The desirability of the intended use of the vacant industrial site, as described in the plan submitted by the municipal corporation or county, and the likelihood that implementation of the plan will improve economic and employment conditions in the surrounding community;

(3) Evidence that the residents, businesses, and other private organizations in the surrounding community support designation of the site as an industrial recovery site;

(4) Whether the vacant industrial site is located in an enterprise zone created under sections 5709.61 to 5709.69, a joint economic development zone created under section 715.691, or a joint economic development district created under section 715.70 or 715.71 or sections 715.72 to 715.81 of the Revised Code;

(5) Whether the vacant industrial site is exempt from property taxation pursuant to a resolution or ordinance adopted under section 5709.40, 5709.41, 5709.73, or 5709.78 of the Revised Code;

(6) Evidence of a commitment by private or public entities to provide financial assistance in implementing the plan submitted by the municipal corporation or county;

(7) Evidence of efforts by the municipal corporation or county to implement the proposed plan without additional financial assistance from the state;

(8) Any other factor the director considers relevant to the determination.

Upon consideration of the factors described in this division, the director shall approve or deny the application for designation. The director shall certify the decision to the municipal corporation or county that requested the designation.

When the director designates a site as an industrial recovery site, the director shall list the industrial recovery site on the development services agency's web site.

(D) The designation of a site as an industrial recovery site is contingent upon the development and use of the site in accordance with the plan submitted by the municipal corporation or county under division (B) of this section. If the director determines that the development of a site has resulted in a violation of this condition, the director shall revoke the industrial recovery site designation.

(E)(1) An owner or developer of an industrial recovery site that makes a qualified investment in the site may apply to the director of development services for a tax credit certificate. The director may require owners or developers to include with the application a uniform fee of not more than two thousand five hundred dollars. In addition to any other information required by the director, the application shall state the amount of the qualified investment.

The director shall review the application and determine whether all of the following criteria are met:

(a) The qualified investment was made for the rehabilitation of property located on an industrial recovery site designated as such by the director pursuant to division (C) of this section.

(b) The applicant is the owner or developer of the industrial recovery site.

(c) The qualified investment was made in accordance with the development plan submitted by the municipal corporation or county in which the industrial recovery site is located.

(d) The applicant made all or part of the qualified investment at least six months before submitting the application.

(e) The municipal corporation or county in which the industrial recovery site is located has certified that the rehabilitation of the industrial recovery site is substantially complete.

(2) If the director determines that an application meets the criteria in divisions (E)(1)(a) to (d) of this section, the director shall issue a tax credit certificate. The amount of the tax credit certificate shall equal the product obtained by multiplying the applicant's qualified investment by one of the following percentages:

(a) Fifteen per cent if the vacant facility that is located on the industrial recovery site was placed into service at least fifteen, but less than thirty, years before the date of the tax credit certificate application;

(b) Twenty per cent if the vacant facility that is located on the industrial recovery site was placed into service at least thirty, but less than forty, years before the date of the tax credit certificate application;

(c) Twenty-five per cent if the vacant facility that is located on the industrial recovery site was placed into service forty or more years before the date of the tax credit certificate application.

(3) The director shall not issue any tax credit certificate under this section after the last day of the sixtieth month after the effective date of the enactment of this section.

(F) The owner of a tax credit certificate issued under this section may assign the certificate to any other person. The assignee shall provide written notice of the assignment to the tax commissioner and the director of development services, in such form as the tax commissioner prescribes, before the certificate that was assigned is applied against a tax. The assignor may not use the certificate to claim a credit to the extent that the certificate was assigned to the assignee. The assignee may use the certificate to claim a credit only to the extent that the assignor has not claimed a credit on the basis of that certificate.

(G) On or before the first day of April each year, the director shall submit to the governor, the president of the senate, and the speaker of the house of representatives a report on the tax credit program established under this section. The report shall include information on the status of the rehabilitation of each industrial recovery site designated under this section. The director shall not be required to submit an annual report after the sixth year after the year in which this section becomes effective.

(H) The director shall adopt any rules necessary to administer this section. Such rules shall include criteria for when a municipal corporation or county may certify that the rehabilitation of an industrial recovery site is substantially complete under division (E)(1) of this section.

Sec. 5725.35.  A nonrefundable credit is allowed against the tax imposed under section 5725.18 of the Revised Code for an insurance company that holds a tax credit certificate issued under section 122.177 of the Revised Code. The credit shall equal the dollar amount indicated on the certificate. The credit shall be claimed in the calendar year specified on the certificate and in the order required under section 5725.98 of the Revised Code. If the amount of the credit exceeds the amount of tax otherwise due under section 5725.18 of the Revised Code for the calendar year, after allowing for any credits preceding the credit in the order prescribed by section 5725.98 of the Revised Code, the insurance company may carry forward the excess amount to subsequent calendar years. The insurance company shall deduct the amount of the excess credit allowed in any such year from the balance carried forward to the next calendar year.

The insurance company shall make the tax credit certificate available for inspection by the tax commissioner upon the request of the tax commissioner.

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 nonrefundable credit for rehabilitating a vacant industrial site under section 5725.35 of the Revised Code;

(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. 5726.58.  A nonrefundable credit is allowed against the tax imposed under section 5726.02 of the Revised Code for a financial institution that holds a tax credit certificate issued under section 122.177 of the Revised Code. The credit shall equal the dollar amount indicated on the certificate. The credit shall be claimed in the tax year specified on the certificate and in the order required by section 5726.98 of the Revised Code. If the amount of the credit exceeds the amount of tax otherwise due under section 5726.02 of the Revised Code for the tax year, after allowing for any credits preceding the credit in the order prescribed by section 5726.98 of the Revised Code, the financial institution may carry forward the excess amount to subsequent tax years. The financial institution shall deduct the amount of the excess credit allowed in any such year from the balance carried forward to the next tax year.

The financial institution shall make the tax credit certificate available for inspection by the tax commissioner upon the request of the tax commissioner.

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 job retention credit under division (B) of section 5726.50 of the Revised Code;

(3) The nonrefundable credit for purchases of qualified low-income community investments under section 5726.54 of the Revised Code;

(4) The nonrefundable credit for qualified research expenses under section 5726.56 of the Revised Code;

(5) The nonrefundable credit for qualifying dealer in intangibles taxes under section 5726.57 of the Revised Code.;

(6) The nonrefundable credit for rehabilitating a vacant industrial site under section 5726.58 of the Revised Code;

(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. 5729.18.  A nonrefundable credit is allowed against the tax imposed under section 5729.03 of the Revised Code for an insurance company that holds a tax credit certificate issued under section 122.177 of the Revised Code. The credit shall equal the dollar amount indicated on the certificate. The credit shall be claimed in the calendar year specified on the certificate and in the order required by section 5729.98 of the Revised Code. If the amount of the credit exceeds the amount of tax otherwise due under section 5729.03 of the Revised Code for the calendar year, after allowing for any credits preceding the credit in the order prescribed by section 5729.98 of the Revised Code, the insurance company may carry forward the excess amount to subsequent calendar years. The insurance company shall deduct the amount of the excess credit allowed in any such year from the balance carried forward to the next calendar year.

The insurance company shall make the tax credit certificate available for inspection by the tax commissioner upon the request of the tax commissioner.

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 nonrefundable credit for rehabilitating a vacant industrial site under section 5729.18 of the Revised Code;

(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. 5747.78.  (A) A nonrefundable credit is allowed against the tax imposed by section 5747.02 of the Revised Code for a taxpayer that holds a tax credit certificate issued under section 122.177 of the Revised Code. The credit shall equal the dollar amount indicated on the certificate. The credit shall be claimed in the taxable year specified on the certificate and in the order required under section 5747.98 of the Revised Code. If the amount of the credit exceeds the amount of tax otherwise due under section 5747.02 of the Revised Code for the taxable year, after allowing for any credits preceding the credit in the order prescribed by section 5747.98 of the Revised Code, the taxpayer may carry forward the excess amount to subsequent taxable years. The taxpayer shall deduct the amount of the excess credit allowed in any such year from the balance carried forward to the next taxable year.

(B) Nothing in this section limits or disallows pass-through treatment of the credit if the person issued the tax credit certificate under section 122.177 of the Revised Code is a pass-through entity. If the certificate is issued to a pass-through entity, the credit may be allocated among the entity's equity owners in proportion to their ownership interests or in such proportions or amounts as the equity owners mutually agree.

(C) A credit may not be claimed under this section if a credit is or was claimed under any other section of the Revised Code on the basis of the same tax certificate issued under section 122.177 of the Revised Code.

(D) The taxpayer shall make the tax credit certificate available for inspection by the tax commissioner upon the request of the tax commissioner.

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 small business investment credit under section 5747.81 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 vacant industrial site under section 5747.78 of the Revised Code;

(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.

Sec. 5749.11.  (A) There is hereby allowed a nonrefundable credit against the taxes imposed under division (A)(8) of section 5749.02 of the Revised Code for any severer to which a reclamation tax credit certificate is issued under section 1513.171 of the Revised Code. The credit shall be claimed in the amount shown on the certificate. The credit shall be claimed by deducting the amount of the credit from the amount of the first tax payment due under section 5749.06 of the Revised Code after the certificate is issued.

If the amount of the credit shown on a certificate exceeds the amount of the tax otherwise due with that first payment, the excess shall be claimed against the amount of tax otherwise due on succeeding payment dates until the entire credit amount has been deducted. The total amount of credit claimed against payments shall not exceed the total amount of credit shown on the certificate.

The severer shall claim the credit in the order required by section 5749.98 of the Revised Code.

(B) A severer claiming a credit under this section shall retain a reclamation tax credit certificate for not less than four years following the date of the last tax payment against which the credit allowed under that certificate was applied. Severers shall make tax credit certificates available for inspection by the tax commissioner upon the tax commissioner's request.

Sec. 5749.18.  A nonrefundable credit is allowed against the tax imposed under section 5749.02 of the Revised Code for a severer that holds a tax credit certificate issued under section 122.177 of the Revised Code. The credit shall equal the dollar amount indicated on the certificate. The credit shall be claimed by deducting the amount of the credit from the amount of the first tax payment due under section 5749.06 of the Revised Code after the certificate is issued. If the amount of the credit shown on a certificate exceeds the amount of the tax otherwise due with that first payment, the excess shall be claimed against the amount of tax otherwise due on succeeding payment dates until the entire credit amount has been deducted. The total amount of credit claimed against payments shall not exceed the total amount of credit shown on the certificate.

The severer shall claim the credit in the order required by section 5749.98 of the Revised Code.

The severer shall make the tax credit certificate available for inspection by the tax commissioner upon the request of the tax commissioner.

Sec. 5749.98.  (A) To provide a uniform procedure for calculating the amount of tax imposed by section 5749.02 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:

(1) The nonrefundable credit for the reclamation of land or water resources under section 5749.11 of the Revised Code;

(2) The nonrefundable credit for rehabilitating a vacant industrial site under section 5749.18 of the Revised Code.

(B) For any credit, 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 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 single tax period.

Section 2.  That existing sections 5725.98, 5726.98, 5729.98, 5747.98, and 5749.11 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.