To amend section 5747.98 and to enact section 5747.78 of the Revised Code to authorize an income tax credit for donations to the permanent endowment fund of an eligible community foundation.

Section 1.  That section 5747.98 be amended and section 5747.78 of the Revised Code be enacted to read as follows:

Sec. 5747.78.  (A)(1) "Eligible community foundation" means a qualified community foundation as defined in section 2109.303 of the Revised Code that has been accredited by the community foundations national standards board.

(2) "Authorized donation" means a donation authorized by the department of taxation and made to a permanent endowment fund of an eligible community foundation within sixty days after the date of authorization by the department.

(3) "Donation" means an irrevocable gift of cash or publicly traded securities.

(4) "Permanent endowment fund" means a fund that is held in perpetuity by an eligible community foundation, that is used for the benefit of charitable causes in this state, and that has an annual spending rate of five per cent or less.

(B) A nonrefundable credit is allowed against the tax imposed by section 5747.02 of the Revised Code for a taxpayer that makes an authorized donation to a permanent endowment fund of an eligible community foundation in a taxable year beginning on or after January 1, 2014. The credit shall equal the lesser of twenty per cent of the amount of the authorized donation made during the taxable year or ten thousand dollars in the case of an individual return or twenty thousand dollars in the case of a joint return.

The credit shall be claimed in the order required under section 5747.98 of the Revised Code. The amount of the credit may not exceed the tax otherwise due after allowing for all other credits in that order. The taxpayer may carry forward any balance of the credit in excess of the amount claimed for up to five ensuing taxable years, and shall deduct any amount claimed for such a year from the amount claimed in any ensuing year.

(C) Before making a donation, a taxpayer shall apply to the department of taxation for authorization of the donation in the manner prescribed by the department. The department shall approve or deny the application and shall issue written notice of the department's decision to the taxpayer within twenty days after receiving the application. The department shall review applications in the order in which the applications are received.

The department shall approve an application if the taxpayer agrees to make a donation to a permanent endowment fund of an eligible community foundation, and if the total annual credit limit has not been reached. If the application is approved, the department's notice shall indicate the amount of the credit authorized. If the donation is not received by the intended recipient eligible community foundation within sixty days after the date of the approval, the eligible community foundation shall so notify the department, and the department shall deduct the amount of the authorized credit from the total amount of credits the agency has authorized for the purpose of determining whether the total annual credit limit has been reached. If the donation is received within sixty days after the date of approval, the recipient eligible community foundation shall issue a receipt to the taxpayer. For the purposes of this division, the "total annual credit limit" equals twenty million dollars each calendar year.

(D) The department of taxation is authorized to charge a reasonable fee for the filing of an application under division (C) of this section to defray the costs of processing the application and administering this section.

(E) The department of taxation shall adopt rules as necessary to implement this section.

Sec. 5747.98.  (A) To provide a uniform procedure for calculating the amount of tax due under section 5747.02 of the Revised Code, a taxpayer shall claim any credits to which the taxpayer is entitled in the following order:

(1) The retirement income credit under division (B) of section 5747.055 of the Revised Code;

(2) The senior citizen credit under division (C) of section 5747.05 of the Revised Code;

(3) The lump sum distribution credit under division (D) of section 5747.05 of the Revised Code;

(4) The dependent care credit under section 5747.054 of the Revised Code;

(5) The lump sum retirement income credit under division (C) of section 5747.055 of the Revised Code;

(6) The lump sum retirement income credit under division (D) of section 5747.055 of the Revised Code;

(7) The lump sum retirement income credit under division (E) of section 5747.055 of the Revised Code;

(8) The low-income credit under section 5747.056 of the Revised Code;

(9) The credit for displaced workers who pay for job training under section 5747.27 of the Revised Code;

(10) The campaign contribution credit under section 5747.29 of the Revised Code;

(11) The twenty-dollar personal exemption credit under section 5747.022 of the Revised Code;

(12) The joint filing credit under division (G) of section 5747.05 of the Revised Code;

(13) The nonresident credit under division (A) of section 5747.05 of the Revised Code;

(14) The credit for a resident's out-of-state income under division (B) of section 5747.05 of the Revised Code;

(15) The earned income credit under section 5747.71 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 donations to a permanent endowment fund of an eligible community foundation under section 5747.78 of the Revised Code;

(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 enterprise zone credits under section 5709.65 of the Revised Code;

(30)(31) The research and development credit under section 5747.331 of the Revised Code;

(31)(32) The credit for rehabilitating a historic building under section 5747.76 of the Revised Code;

(32)(33) The refundable credit for rehabilitating a historic building under section 5747.76 of the Revised Code;

(33)(34) The refundable jobs creation credit or job retention credit under division (A) of section 5747.058 of the Revised Code;

(34)(35) The refundable credit for taxes paid by a qualifying entity granted under section 5747.059 of the Revised Code;

(35)(36) The refundable credits for taxes paid by a qualifying pass-through entity granted under division (J) of section 5747.08 of the Revised Code;

(36)(37) 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;

(37)(38) The refundable motion picture production credit under section 5747.66 of the Revised Code.

(38)(39) 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 section 5747.98 of the Revised Code is hereby repealed.