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H. B. No. 219 As Introduced
As Introduced
130th General Assembly | Regular Session | 2013-2014 |
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Cosponsors:
Representatives Adams, J., Stinziano, Fedor
A BILL
To amend sections 5725.98, 5726.98, 5729.98, 5747.98,
and 5751.98 and to enact sections 122.155,
122.156, 122.157, 122.158, 122.159, 5725.191,
5726.58, 5727.242, 5727.43, 5727.812, 5729.081,
5747.052, and 5751.54 of the Revised Code to
authorize tax credits for contributions of money
to economic and infrastructure development
projects undertaken by local governments and
nonprofit corporations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5725.98, 5726.98, 5729.98, 5747.98,
and 5751.98 be amended and sections 122.155, 122.156, 122.157,
122.158, 122.159, 5725.191, 5726.58, 5727.242, 5727.43, 5727.812,
5729.081, 5747.052, and 5751.54 of the Revised Code be enacted to
read as follows:
Sec. 122.155. As used in sections 122.155 to 122.159 of the
Revised Code:
(A) "Approval date" means the date on which the development
services agency issues notice of approval to a community
development organization and a contributor for a catalytic project
contribution proposal submitted under section 122.156 of the
Revised Code.
(B) "Catalytic project" means an economic development project
or activity undertaken by a community development organization
that the community economic development organization predicts will
induce sustainable private investment in one or more local units
of government. "Catalytic project" includes construction of
buildings, infrastructure improvements, central business district
redevelopment, land reutilization, production of housing, and
microenterprise development.
(C) "Catalytic project contribution" means a transfer of
money by a contributor to a community development organization for
the purpose of funding a catalytic project with no expectation of
repayment or other compensation. Taxes, fees, dues, campaign
contributions, and payments made for lobbying purposes do not
qualify as catalytic project contributions.
(D) "Catalytic project contribution proposal" means a written
document submitted by a community development organization under
section 122.156 of the Revised Code proposing a catalytic project.
(E) "Community development organization" means an entity that
meets any of the following sets of criteria on the approval date:
(1) The entity is a local unit of government or an economic
development corporation designated by such an entity under section
1724.10 of the Revised Code, undertaking or planning to undertake
a catalytic project. If a local unit of government is in fiscal
emergency as determined by the auditor of state under section
118.04 of the Revised Code, it or any economic development
corporation designated by it does not qualify as a community
development organization.
(2) The entity is a private corporation established as a
nonprofit corporation under the laws of this state that is exempt
from federal income taxation under section 501(c)(3) of the
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.
501(c)(3), the primary purpose of which is to administer a
catalytic project. After January 1, 2015, no private corporation
shall qualify as a community development organization unless the
corporation is first certified by the development services agency
under section 122.159 of the Revised Code.
(F) "Contributor" means a corporation for profit or a
pass-through entity as defined in section 5733.04 of the Revised
Code.
(G) "Microenterprise development" means providing funds to
assist the development of local for-profit businesses with fewer
than five employees, at least one of whom owns the entire
business.
(H) "Money" means United States currency, or a check, draft,
or cashier's check for United States currency, payable on demand
and drawn on a financial institution.
(I) "Rural catalytic project" means a catalytic project in
which more than fifty per cent of the total expenditures for the
entire project are utilized to benefit one or more counties each
of which has a population of less than one hundred twenty-five
thousand according to the most recent decennial census.
(J) "Urban catalytic project" means any catalytic project
that is not a rural catalytic project.
Sec. 122.156. (A)(1) A community development organization may
apply for a tax credit certificate under this section on behalf of
a contributor that proposes to make a catalytic project
contribution of at least five thousand dollars by submitting a
catalytic project contribution proposal to the development
services agency. The proposal shall include the following:
(a) The name, address, and telephone number of each
contributor and a statement signed by an officer, agent, or other
person legally authorized to bind the contributor indicating the
amount of the proposed catalytic project contribution;
(b) The name, address, and telephone number of the community
development organization undertaking the catalytic project;
(c) A catalytic project plan describing the purpose of and
the procedure for implementing the catalytic project. The plan
shall include a description of the catalytic project, an estimate
of the total cost of the project, a list of the local units of
government that will benefit from the project, designation of the
project as either a rural catalytic project or an urban catalytic
project, and the predicted economic impact of the catalytic
project on each benefiting local unit of government.
(2) The agency shall make one of the following determinations
within thirty days after receiving a proposal:
(a) Approve the entire proposed contribution;
(b) Approve a contribution of less than the proposed
contribution but not less than five thousand dollars;
(c) Disapprove the entire proposed contribution.
(3) The agency's determination shall be based on the
potential of the catalytic project to induce further sustainable
private investment in the benefiting local units of government,
the need for economic development in the benefiting local units of
government, and any other factor prescribed by the agency.
(4) The agency's determination is final and may not be
appealed for any reason. A community development organization may
submit a new or amended catalytic project contribution proposal at
any time after receiving notice under division (B) of this
section, and may submit multiple proposals.
(B) The development services agency shall send written notice
of its determination under division (A) of this section to the
community development organization that submitted the catalytic
project contribution proposal and each contributor proposing the
catalytic project contribution. A contributor may make an approved
catalytic project contribution at any time on or after the
approval date.
(1) If the agency approves the entire proposed catalytic
project contribution, the notice shall include confirmation of the
amount of the approved contribution, an estimate of the amount of
the tax credit, and instructions for submitting application fees
due under division (D) of this section.
(2) If the agency approves a contribution less than the
proposed contribution, the notice shall include the amount of the
approved contribution, the reason the approved contribution is
less than the proposed contribution, an estimate of the amount of
the tax credit, and instructions for submitting application fees
due under division (D) of this section.
(3) If the agency disapproves the entire proposed
contribution, the notice shall include the reasons the proposed
contribution was not approved and may incorporate suggestions for
changes to the catalytic project contribution proposal.
(C) The estimate of the tax credit amount required in
divisions (B)(1) and (2) of this section shall be calculated as
follows:
(1) If the catalytic project contribution proposal indicates
that the catalytic project contribution will fund a rural
catalytic project, the estimate shall equal sixty per cent of the
approved catalytic project contribution.
(2) If the catalytic project contribution proposal indicates
that the catalytic project contribution will fund an urban
catalytic project, the estimate shall equal fifty per cent of the
approved catalytic project contribution.
(D)(1) The development services agency shall require payment
of an application fee not to exceed ten per cent of the amount of
the tax credit estimate calculated under division (C) of this
section for each approved catalytic project contribution proposal.
The application fee may be paid by the community development
organization, the contributor, or any other person. No portion of
a catalytic project contribution may be utilized to pay an
application fee under this section. Payment of the application fee
shall not be the basis of a tax credit granted under any other
section of the Revised Code. Proceeds from the application fee
shall be used to defray the agency's costs of administering
sections 122.155 to 122.159 of the Revised Code. If the
application fee is not paid on or before the thirtieth day
following the approval date, approval of the catalytic project
contribution proposal shall be revoked. The agency shall not be
required to send notice of revocation except under the
circumstance described in division (D)(2) of this section.
(2) If the agency receives an application fee more than
thirty days after the approval date, the agency shall return the
application fee and notify the community development organization
and the contributor that approval has been revoked.
(3) The agency shall not issue a tax credit certificate under
section 122.157 of the Revised Code before receiving full payment
of the application fee due under this section. An application fee
received by the agency shall not be refunded except under the
circumstance described in division (D)(2) of this section.
(E) The development services agency shall not approve a
catalytic project contribution of less than five thousand dollars.
The amount of a catalytic project contribution for which a tax
credit may be allowed shall not exceed five hundred thousand
dollars. The sum of all tax credit estimates issued under division
(B) of this section for contributions to any single catalytic
project shall not exceed five hundred thousand dollars. The
development services agency shall not approve any catalytic
project contribution before the first day of January of the
calendar year immediately following the effective date of ...B...
of the 130th general assembly or after the thirty-first day of
December of the fifth calendar year following such effective date.
The sum of all tax credit estimates issued in a calendar year
under division (B) of this section shall not exceed the sum of
five million dollars plus the residual credit amount for the
preceding calendar year calculated under division (E) of section
122.157 of the Revised Code. The sum of all tax credit estimates
issued before the first day of July in any calendar year under
division (B) of this section for contributions funding urban
catalytic projects shall not exceed the sum of three million five
hundred thousand dollars plus seventy per cent of the residual
credit amount for the preceding calendar year calculated under
division (E) of section 122.157 of the Revised Code.
Sec. 122.157. (A)(1) The development services agency shall
not issue a tax credit certificate under this section unless,
within two years after the approval date, the agency receives a
written project completion report prepared by the community
development organization that received a catalytic project
contribution approved under section 122.156 of the Revised Code.
The report shall certify all of the following:
(a) That the catalytic project is fully completed;
(b) The total amount expended by the community development
organization on the catalytic project;
(c) The sum of all catalytic project contributions received
by the community development organization to fund the catalytic
project;
(d) A comprehensive list of any differences between the
completed catalytic project and the catalytic project plan
submitted with the catalytic project contribution proposal;
(e) A monetary estimate of how the differences described in
division (A)(1)(d) of this section affect the economic impact of
the catalytic project projected in the catalytic project
contribution proposal.
(2) After the agency receives a project completion report
that meets the requirements of division (A)(1) of this section,
the agency shall issue a tax credit certificate to the contributor
that made the approved catalytic project contribution. The tax
credit certificate shall indicate that the contributor is allowed
a tax credit equal to an amount calculated as follows:
(a) If the project completion report indicates that the
contribution funded a rural catalytic project, the tax credit
equals sixty per cent of the adjusted catalytic project
contribution determined under division (B) of this section.
(b) If the project completion report indicates that the
contribution funded an urban catalytic project the tax credit
equals fifty per cent of the adjusted catalytic project
contribution determined under division (B) of this section.
(B) The adjusted catalytic project contribution equals the
catalytic project contribution approved by the development
services agency, adjusted by the agency as follows:
(1) Subtract any amount reimbursed to the contributor by the
community development organization;
(2) Subtract the value of any nonmonetary compensation
provided to the contributor by the community development
organization;
(3) If the total expenditures of the community development
organization on the catalytic project were less than the sum of
all catalytic project contributions approved by the development
services agency and received by the organization to fund the
catalytic project, determine the difference and subtract an amount
equal to the difference multiplied by a fraction, the numerator of
which is the contributor's approved catalytic project contribution
and the denominator of which is the sum of all approved catalytic
project contributions received by the community development
organization to fund the catalytic project;
(4) If the project completion report indicates there are
differences between the completed catalytic project and the
catalytic project plan that result in a reduction in the predicted
economic impact, subtract an amount commensurate with such
reduction as determined by the agency.
(C) A contributor that is issued a tax credit certificate
under this section may claim one of the nonrefundable tax credits
authorized under section 5725.191, 5726.58, 5727.242, 5727.43,
5727.812, 5729.081, 5747.052, or 5751.54 of the Revised Code. A
tax credit certificate issued to a contributor under this section
may not be transferred by that contributor to any other person.
(D) The director of development services shall develop 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
contributor shall present the certificate to the tax commissioner
upon the commissioner's request.
(E) Annually, before the seventh day of January, the
development services agency shall calculate the residual credit
amount for the preceding calendar year. The residual credit amount
equals the sum of the following:
(1) All tax credit estimates for which approval is revoked
for failure to timely pay the application fee required under
division (D)(1) of section 122.156 of the Revised Code;
(2) All tax credit estimates for which more than two years
has passed since the approval date and no project completion
report has been submitted to the development services agency under
section 122.157 of the Revised Code;
(3) The difference between the amount issued in tax credit
certificates under this section and the corresponding tax credit
estimates.
(F) Annually, before the seventh day of January, the
development services agency shall conduct a cost-benefit analysis
of each catalytic project to which a catalytic project
contribution approved by the agency was made and of the tax credit
as a whole considering all catalytic project contribution
proposals approved under section 122.156 of the Revised Code. The
agency shall provide copies of the cost-benefit analysis to the
governor, the speaker and minority leader of the house of
representatives, and the president and minority leader of the
senate. Copies of the cost-benefit analysis shall be made
available to contributors, community development organizations,
and other members of the public upon request.
Sec. 122.158. If the development services agency receives
information alleging that a community development organization or
a contributor that was issued a tax credit certificate under
section 122.157 of the Revised Code 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 community development organization or the
contributor that if the allegation is found to be true the
community development organization or the contributor may be
penalized as provided in this section. After giving the community
development organization or the contributor an opportunity to be
heard on the allegation, the agency shall determine if the
community development organization or the contributor presented or
contributed to the presentation of false information in connection
with obtaining a tax credit certificate.
If the agency determines a contributor submitted or
contributed to the submission of false information, it may revoke
any remaining tax credit available to the contributor. The agency
shall send written notice of the revocation to the contributor and
the tax commissioner. The tax commissioner may make an assessment
against the contributor to recapture any amount of tax credit that
the contributor already has claimed. The time limitations on
assessments under the laws of the particular tax against which the
contributor claimed the credit do not apply to an assessment under
this section.
If the agency determines a community development organization
submitted or contributed to the submission of false information,
the agency shall not approve any catalytic project contribution
proposal submitted by the community development organization
following the date of the agency's determination.
Sec. 122.159. (A) A nonprofit corporation seeking
certification as a community development organization may apply to
the development services agency in the form and manner prescribed
by the agency. The application shall include a description of the
catalytic project being administered or proposed, the local units
of government that will benefit from the project, the estimated
economic impact of the project on the benefiting local units of
government, the estimated date of completion of the project, and
any other information required by the agency.
(B) The development services agency shall determine whether
to certify the nonprofit corporation as a community development
organization and notify the corporation of the agency's
determination within thirty days after receiving an application
under division (A) of this section. If the agency determines that
an applicant does not qualify as a community development
organization, the notice shall include the reasons for such
determination.
(C) Certification under this section remains valid for two
years after the date the notice of the determination is issued. A
certified community development organization may apply to the
development services agency to renew certification for one
additional two-year period by submitting a new application under
division (A) of this section at least thirty days before the first
certification expires.
(D) The development services agency shall maintain a list of
the nonprofit corporations that have been certified as community
development organizations. The agency shall furnish copies of the
list to a member of the public upon request.
(E) The development services agency does not assume any
responsibility for the accuracy or truthfulness of information
furnished by a community development organization or its agents. A
contributor proposing to make a catalytic project contribution to
such an organization is solely responsible for due diligence in
verifying information submitted by the organization. The agency is
not liable for any action resulting from its provision of such
information to contributors in accordance with sections 122.155 to
122.159 of the Revised Code.
Sec. 5725.191. Upon the issuance of a tax credit certificate
by the development services agency under section 122.157 of the
Revised Code, a nonrefundable credit may be claimed against the
tax imposed on a domestic insurance company under section 5725.18
of the Revised Code. The credit shall be claimed for the calendar
year in which the certificate was issued by the agency and in the
order required under section 5725.98 of the Revised Code.
If the credit exceeds the tax otherwise due under section
5725.18 of the Revised Code, the excess shall be allowed as a
credit in each of the ensuing five years, but the amount of any
excess credit allowed in an ensuing year shall be deducted from
the balance carried forward to the next year.
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 credit for contributions to catalytic projects under
section 5725.191 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. Upon the issuance of a tax credit certificate
by the development services agency under section 122.157 of the
Revised Code, a nonrefundable tax credit may be claimed against
the tax imposed by section 5726.02 of the Revised Code. The credit
shall be claimed for the taxable year in which the certificate is
issued by the agency and in the order required under section
5726.98 of the Revised Code. If the credit exceeds the tax
otherwise due under section 5726.02 of the Revised Code after
deducting all other credits in that order, the excess shall be
allowed as a credit in each of the ensuing five tax years, but the
amount of any excess credit allowed in an ensuing tax year shall
be deducted from the balance carried forward to the next tax 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 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 credit for contributions to catalytic projects under
section 5726.58 of the Revised Code;
(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. 5727.242. Upon the issuance of a tax credit certificate
by the development services agency under section 122.157 of the
Revised Code, a nonrefundable tax credit may be claimed against
the tax imposed on a taxpayer under section 5727.24 of the Revised
Code. The credit shall be claimed on a return due under section
5727.25 of the Revised Code after the certificate is issued by the
agency.
If the credit exceeds the tax otherwise due under section
5727.24 of the Revised Code, the excess shall be allowed as a
credit against the tax due for each return period in the ensuing
five years, but the amount of any excess credit allowed for an
ensuing return period shall be deducted from the balance carried
forward to the next return period.
Sec. 5727.43. Upon the issuance of a tax credit certificate
by the development services agency under section 122.157 of the
Revised Code, a nonrefundable tax credit may be claimed against
the tax imposed by section 5727.30 of the Revised Code. The credit
shall be claimed in the calendar year following the year in which
the certificate is issued by the agency.
If the credit exceeds the tax otherwise due under section
5727.30 of the Revised Code, the excess shall be allowed as a
credit in each of the ensuing five years, but the amount of any
excess credit allowed in an ensuing year shall be deducted from
the balance carried forward to the next year.
Sec. 5727.812. Upon the issuance of a tax credit certificate
by the development services agency under section 122.157 of the
Revised Code, a nonrefundable tax credit may be claimed against
the tax imposed under section 5727.81 or 5727.811 of the Revised
Code. The credit shall be claimed in the calendar year following
the year in which the certificate is issued by the agency.
If the credit exceeds the tax otherwise due under section
5727.81 or 5727.811 of the Revised Code, the excess shall be
allowed as a credit against the tax due for each monthly or
quarterly return period in the ensuing five years, but the amount
of any excess credit allowed for an ensuing return period shall be
deducted from the balance carried forward to the next return
period.
Sec. 5729.081. Upon the issuance of a tax credit certificate
by the development services agency under section 122.157 of the
Revised Code, a nonrefundable tax credit may be claimed against
the tax imposed on a foreign insurance company under section
5729.03 of the Revised Code. The credit shall be claimed against
the tax due for the calendar year in which the certificate is
issued by the agency.
If the credit exceeds the tax otherwise due under section
5729.03 of the Revised Code, the excess shall be allowed as a
credit in each of the ensuing five years, but the amount of any
excess credit allowed in an ensuing year shall be deducted from
the balance carried forward to the next 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 nonrefundable credit for contributions to catalytic
projects under section 5729.081 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. 5747.052. A nonrefundable tax credit shall be allowed
for equity owners of pass-through entities against the tax imposed
by section 5747.02 of the Revised Code upon the issuance of a tax
credit certificate by the development services agency under
section 122.157 of the Revised Code. The credit shall be claimed
for the taxable year in which the certificate was issued by the
agency and in the order required under section 5747.98 of the
Revised Code. Each equity owner may claim the owner's distributive
or proportionate share of the credit allowed under the
certificate. If the amount of the credit under this section
exceeds the amount of tax otherwise due under section 5747.02 of
the Revised Code after deduction of all other credits in that
order, the excess shall be allowed as a credit in each of the
ensuing five taxable years, but the amount of any excess credit
allowed in an ensuing year shall be deducted from the balance
carried forward to the next 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 nonrefundable job retention credit under division
(B) of section 5747.058 of the Revised Code;
(20) The nonrefundable credit for contributions to catalytic
projects under section 5747.052 of the Revised Code;
(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.
(B) For any credit, except the refundable credits enumerated
in this section and the credit granted under division (I) of
section 5747.08 of the Revised Code, the amount of the credit for
a taxable year shall not exceed the tax due after allowing for any
other credit that precedes it in the order required under this
section. Any excess amount of a particular credit may be carried
forward if authorized under the section creating that credit.
Nothing in this chapter shall be construed to allow a taxpayer to
claim, directly or indirectly, a credit more than once for a
taxable year.
Sec. 5751.54. Upon the issuance of a tax credit certificate
by the development services agency under section 122.157 of the
Revised Code, a nonrefundable tax credit may be claimed against
the tax imposed by section 5751.02 of the Revised Code. The credit
shall be claimed for the first tax period beginning after the
calendar year in which the certificate is issued by the agency and
in the order required under section 5751.98 of the Revised Code.
If the credit exceeds the tax otherwise due under section 5751.02
of the Revised Code for that tax period, the excess shall be
allowed as a credit for tax periods in each of the ensuing five
calendar years, 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.
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 contributions to catalytic
projects under section 5751.54 of the Revised Code;
(3) The nonrefundable credit for qualified research expenses
under division (B) of section 5751.51 of the Revised Code;
(3)(4) The nonrefundable credit for a borrower's qualified
research and development loan payments under division (B) of
section 5751.52 of the Revised Code;
(4)(5) The nonrefundable credit for calendar years 2010 to
2029 for unused net operating losses under division (B) of section
5751.53 of the Revised Code;
(5)(6) The refundable credit for calendar year 2030 for
unused net operating losses under division (C) of section 5751.53
of the Revised Code;
(6)(7) The refundable jobs creation credit or job retention
credit under division (A) of section 5751.50 of the Revised Code.
(B) For any credit except the refundable credits enumerated
in 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 5725.98, 5726.98, 5729.98,
5747.98, and 5751.98 of the Revised Code are hereby repealed.
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