Bill Text: OH SB184 | 2011-2012 | 129th General Assembly | Introduced

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Bill Title: To authorize nonrefundable tax credits for authorized donations to projects of nonprofit entities and municipal agencies providing community services.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2011-06-08 - To Ways & Means & Economic Development [SB184 Detail]

Download: Ohio-2011-SB184-Introduced.html

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As Introduced

129th General Assembly Regular Session 2011-2012

S. B. No. 184

Senator Tavares 

Cosponsor: Senator Turner 

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A BILL

To amend sections 5725.98, 5729.98, 5733.01, 5733.98,

1

5747.98, and 5751.98 and to enact section 715.58

2

of the Revised Code to authorize nonrefundable tax

3

credits for authorized donations to projects of

4

nonprofit entities and municipal agencies

5

providing community services.

6

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1.  That sections 5725.98, 5729.98, 5733.01, 5733.98,	7
5747.98, and 5751.98 be amended and section 715.58 of the Revised	8
Code be enacted to read as follows:	9

Sec. 715.58. (A) As used in this section:

10

(1) "Application year" means the calendar year beginning the	11
year following the calendar year in which a taxpayer applies for a	12
tax credit in the application period.	13

(2) "Application period" means the period between the	14
fifteenth day of September and the first day of October of each	15
year, as described in division (C)(3) of this section.	16

(3) "Authorized donation" means a donation of more than two	17
hundred fifty dollars made to a project approved and authorized by	18
the tax commissioner in accordance with division (C) of this	19
section.	20

(4) "Donation" means an unconditional gift of cash.

21

(5) "Pass-through entity" has the same meaning as in section	22
5733.04 of the Revised Code and includes a sole proprietorship.	23

(6) "Project" means a project or activity proposed by a	24
municipal corporation that involves providing, either directly or	25
through a neighborhood organization, neighborhood assistance, job	26
training or education, community services, crime prevention,	27
energy conservation, or construction or rehabilitation of dwelling	28
units for persons of low and moderate income in the state, or	29
donation of money to an open space acquisition fund of any	30
political subdivision of the state or any nonprofit land	31
conservation organization that meets the requirements of division	32
(B) of section 5301.69 of the Revised Code.	33

(7) "Taxpayer" means a person subject to a tax against which	34
a credit is allowed under this section.	35

(8) "Tax period" means:

36

(a) In the case of a dealer in intangibles, a domestic	37
insurance company, or a foreign insurance company, the calendar	38
year ending on the thirty-first day of December next preceding the	39
day the report or annual statement is required to be returned	40
under section 5725.14, 5725.18, or 5729.02 of the Revised Code;	41

(b) In the case of a financial institution subject to	42
taxation under Chapter 5733. of the Revised Code, the financial	43
institution's taxable year for the purposes of that chapter;	44

(c) In the case of a public utility, electric distribution	45
company, or natural gas distribution company, the calendar year;	46

(d) In the case of a pass-through entity subject to taxation	47
under Chapter 5747. of the Revised Code, the pass-through entity's	48
taxable year for the purposes of that chapter;	49

(e) In the case of a person subject to taxation under Chapter	50
5751. of the Revised Code, the calendar year.	51

(9) "Community services" means any type of counseling and	52
advice, emergency assistance, alcoholism prevention and treatment,	53
or medical care furnished to individuals or groups in the state.	54

(10) "Crime prevention" means any activity that aids in the	55
reduction of crime in the state.	56

(11) "Education" means any type of scholastic instruction or	57
scholarship assistance to any person who resides in the state.	58

(12) "Job training" means any type of instruction to any	59
person who resides in the state that enables the person to acquire	60
vocational skills to become employable or seek a higher grade of	61
employment.	62

(13) "Neighborhood" means any specific geographic area that	63
is experiencing problems endangering the area's economic viability	64
and stability.	65

(14) "Neighborhood assistance" means the furnishing of	66
financial assistance, labor, material, or technical advice to aid	67
in the physical improvement or rehabilitation of all or any part	68
of a neighborhood.	69

(15) "Neighborhood organization" means any organization	70
performing community services in the state that satisfies any of	71
the following:	72

(a) It is exempt from income taxation under the Internal	73
Revenue Code.	74

(b) It is designated as a community development corporation	75
by the United States government under Title VII of the Economic	76
Opportunity Act of 1964.	77

(c) It is incorporated as a charitable corporation or trust	78
under Chapter 1716. of the Revised Code, a community improvement	79
corporation under Chapter 1724. of the Revised Code, a charitable	80
organization described under section 5301.69 of the Revised Code,	81
or a community redevelopment corporation under Chapter 1728. of	82
the Revised Code.	83

(16) "Persons of low and moderate income" means persons	84
satisfying the criteria for designation as persons of low- and	85
moderate-income established by the housing finance agency pursuant	86
to section 175.01 of the Revised Code.	87

(B) A nonrefundable credit is allowed against the tax levied	88
by section 5707.03 and assessed under section 5725.15, the tax	89
imposed by section 5725.18, 5727.24, 5727.30, 5727.81, or	90
5727.811, the tax assessed under Chapter 5729., or the tax imposed	91
by section 5733.06, 5747.02, or 5751.03 of the Revised Code for a	92
taxpayer that makes an authorized donation or that is an equity	93
owner of a pass-through entity that makes an authorized donation.	94
If a pass-through entity claims a credit under this section, it	95
may apply the credit to the tax imposed under section 5751.03 of	96
the Revised Code, or its equity owners may apply the credit to the	97
tax imposed on them under section 5747.02 of the Revised Code, but	98
the credit for any authorized donation may not be applied to both	99
of those taxes.	100

The credit equals sixty per cent of the amount of the	101
authorized donation a taxpayer or pass-through entity makes in an	102
application year. The amount of the credit granted to a taxpayer	103
may not exceed seventy-five thousand dollars for an application	104
year; if the authorized donation is made by a pass-through entity	105
and the credit is to be applied against the tax imposed under	106
section 5747.02 of the Revised Code, the credit may not exceed the	107
taxpayer's distributive or proportionate share of seventy-five	108
thousand dollars.	109

The credit shall be claimed for the tax period in which the	110
authorized donation is made and shall be claimed in the order	111
required under section 5725.98, 5729.98, 5733.98, 5747.98, or	112
5751.98 of the Revised Code, except that an individual claiming a	113
distributive share of a credit as an owner of a pass-through	114
entity shall claim the credit for the taxpayer's taxable year that	115
includes the last day of the entity's taxable year in which the	116
donation was made. The amount of the credit may not exceed the tax	117
otherwise due after allowing for all other credits in that order.	118
Excess credit not used in the tax period during which the	119
authorized donation was made may be carried back and applied to	120
not more than two of the immediately preceding tax periods. If the	121
taxpayer is required to pay the tax imposed by section 5727.24 or	122
5727.30 of the Revised Code more frequently than once per calendar	123
year, or claims the credit against the tax imposed by section	124
5727.81 or 5727.811 of the Revised Code, the amount of the credit	125
allowed for a calendar year shall be claimed in substantially	126
equal amounts against each tax payment required during the year	127
and after the donation is made.	128

(C)(1) To qualify one or more projects as eligible to receive	129
a donation eligible for the tax credit provided by this section,	130
the legislative authority of a municipal corporation, on or before	131
the first day of July of each year, may deliver to the tax	132
commissioner a list of projects for which it seeks eligibility to	133
receive donations eligible for the credit provided by this	134
section. The list prepared by the legislative authority shall, for	135
each project, set forth all of the following:	136

(a) The objective or mission of the project;

137

(b) The neighborhood area to be served;

138

(c) Why the project is needed;

139

(d) The estimated cost of the project;

140

(e) The suggested plan for implementing the project,	141
including the projected length of time the project will be	142
undertaken;	143

(f) The name and address of the agency designated by the	144
municipal corporation to oversee implementation of the project;	145
and	146

(g) Other information as the commissioner may prescribe.

147

The projected length of time a project will be undertaken	148
shall not exceed two consecutive years.	149

Before submitting the list to the tax commissioner the	150
legislative authority shall hold at least one public hearing for	151
the purpose of discussing the programs to be included on the list	152
and receiving public testimony.	153

(2) Annually, on or before the first day of September, the	154
tax commissioner shall compile and post on the department of	155
taxation's web site a list of all projects submitted by municipal	156
corporations that are eligible to receive applications for	157
donations eligible to receive a credit under this section. The	158
list shall be organized by each municipal corporation that applied	159
and shall indicate the estimated cost of each project as shown on	160
the municipal corporation's list. Each year, the commissioner also	161
shall publish a copy of the list in paper form. The commissioner	162
shall update the list as necessary.	163

(3) To be eligible for a tax credit under this section, a	164
taxpayer must donate to one or more projects appearing on the list	165
prepared by the tax commissioner and apply to the commissioner on	166
a form prescribed by the commissioner. Applications shall be	167
submitted to the commissioner during the application period. The	168
commissioner shall forward a copy of the application to the agency	169
designated by the municipal corporation to oversee implementation	170
of the project.	171

The agency to which the commissioner has forwarded an	172
application shall approve or deny the application within thirty	173
days after receiving the application from the commissioner.	174
Failure of an agency to approve an application within that	175
thirty-day period constitutes denial of the application. After the	176
approval of the agency or the passing of the thirty-day period, an	177
application shall be approved or denied by the commissioner based	178
on the compliance of the proposed donation with the provisions of	179
this section.	180

The commissioner may approve an application only if it is	181
received by the commissioner during the application period and	182
only if it has been approved by the agency. After the commissioner	183
approves or denies an application, the commissioner shall issue	184
written notice of the commissioner's decision to the applicant by	185
ordinary mail within twenty days after reaching a decision. If the	186
commissioner approves an application, the commissioner shall	187
forward a copy of the commissioner's decision to the taxpayer	188
eligible to claim the credit. The commissioner shall consider and	189
approve applications in the order received.	190

The commissioner shall not approve an application for an	191
authorized donation to any project for any application period in	192
an amount that would cause the total authorized donations for that	193
project for the application period to exceed one hundred fifty	194
thousand dollars. If an application proposes a donation in an	195
amount that would cause the total authorized donations to the	196
project to exceed one hundred fifty thousand dollars, the	197
commissioner shall notify the applicant, and the applicant, in a	198
manner prescribed by the commissioner, may propose a donation to	199
the project in a lesser amount or propose a donation to another	200
project.	201

(4) If a project is to be undertaken over more than one year,	202
the applicant for authorized donations shall indicate in the	203
application the amount of the donation to be made in each	204
application year, and the amounts so indicated shall be applied to	205
the annual credit limit under division (E) of this section for the	206
corresponding application year.	207

(5) The tax commissioner may charge a reasonable fee for the	208
filing of an application under division (C)(3) of this section to	209
defray the costs of processing the application and administering	210
this section.	211

(6) The commissioner may remove a project from the list	212
created by the commissioner under this section if the project	213
fails to satisfy the requirements of a project as defined in	214
division (A)(6) of this section.	215

(D) No tax credit shall be granted to any person under this	216
section unless the person furnishes evidence to the commissioner	217
that the amount of funds the person expended for charitable	218
purposes and for the support of organizations eligible for	219
assistance under this section in the year for which the credit is	220
claimed equals or exceeds the amount the person expended for such	221
purposes in the immediately preceding year.	222

(E) The total amount of credits that may be claimed under	223
this section in any year shall not exceed five million dollars.	224
If, for any year, all of the applications submitted to the tax	225
commissioner pursuant to this section claim tax credits in excess	226
of that amount, the commissioner, on or before the fifteenth day	227
of November each year, shall prorate the amounts of tax credits in	228
proportion to each taxpayer's authorized donation amount.	229

(F) A single neighborhood organization may propose multiple	230
projects, but may not receive more than one hundred fifty thousand	231
dollars in authorized donations during an application year.	232

(G) If the total funds donated in any year by any taxpayer in	233
a project in which a neighborhood organization is involved exceeds	234
twenty-five thousand dollars, the organization, upon completion of	235
the project, shall engage an independent public accountant to	236
audit the finances of the project and file the audit report with	237
the municipal corporation or agency overseeing the project. The	238
accountant's report shall verify whether the organization's	239
expenditures were made in accordance with the project as proposed	240
and approved by the commissioner. The municipal corporation or	241
agency shall forward each audit to the commissioner.	242

The tax commissioner shall review each audit report for	243
evidence of fraud or embezzlement. If the commissioner discovers	244
evidence of fraud or embezzlement, the commissioner shall report	245
the commissioner's findings to the county prosecutor of the county	246
in which the project is located. If the commissioner finds	247
evidence of unsound or irregular financial practice in relation to	248
generally accepted accounting standards, the commissioner may make	249
any projects in which the audited organization is involved	250
ineligible to receive authorized donations.	251

(H) The commissioner may adopt rules to implement this	252
section.	253

Sec. 5725.98. (A) To provide a uniform procedure for	254
calculating the amount of tax imposed by section 5725.18 of the	255
Revised Code that is due under this chapter, a taxpayer shall	256
claim any credits and offsets against tax liability to which it is	257
entitled in the following order:	258

(1) The credit for an insurance company or insurance company	259
group under section 5729.031 of the Revised Code;	260

(2) The credit for eligible employee training costs under	261
section 5725.31 of the Revised Code;	262

(3) The nonrefundable credit for authorized donations under	263
section 715.58 of the Revised Code;	264

(4) The credit for purchasers of qualified low-income	265
community investments under section 5725.33 of the Revised Code;	266

(4)(5) The nonrefundable job retention credit under division	267
(B)(1) of section 122.171 of the Revised Code;	268

(5)(6) The offset of assessments by the Ohio life and health	269
insurance guaranty association permitted by section 3956.20 of the	270
Revised Code;	271

(6)(7) The refundable credit for Ohio job retention under	272
division (B)(2) of section 122.171 of the Revised Code;	273

(7)(8) The refundable credit for Ohio job creation under	274
section 5725.32 of the Revised Code;	275

(8)(9) The refundable credit under section 5725.19 of the	276
Revised Code for losses on loans made under the Ohio venture	277
capital program under sections 150.01 to 150.10 of the Revised	278
Code.	279

(B) For any credit except the refundable credits enumerated	280
in this section, the amount of the credit for a taxable year shall	281
not exceed the tax due after allowing for any other credit that	282
precedes it in the order required under this section. Any excess	283
amount of a particular credit may be carried forward if authorized	284
under the section creating that credit. Nothing in this chapter	285
shall be construed to allow a taxpayer to claim, directly or	286
indirectly, a credit more than once for a taxable year.	287

Sec. 5729.98. (A) To provide a uniform procedure for	288
calculating the amount of tax due under this chapter, a taxpayer	289
shall claim any credits and offsets against tax liability to which	290
it is entitled in the following order:	291

(1) The credit for an insurance company or insurance company	292
group under section 5729.031 of the Revised Code;	293

(2) The credit for eligible employee training costs under	294
section 5729.07 of the Revised Code;	295

(3) The nonrefundable credit for authorized donations under	296
section 715.58 of the Revised Code;	297

(4) The credit for purchases of qualified low-income	298
community investments under section 5729.16 of the Revised Code;	299

(4)(5) The nonrefundable job retention credit under division	300
(B)(1) of section 122.171 of the Revised Code;	301

(5)(6) The offset of assessments by the Ohio life and health	302
insurance guaranty association against tax liability permitted by	303
section 3956.20 of the Revised Code;	304

(6)(7) The refundable credit for Ohio job retention under	305
division (B)(2) of section 122.171 of the Revised Code;	306

(7)(8) The refundable credit for Ohio job creation under	307
section 5729.032 of the Revised Code;	308

(8)(9) The refundable credit under section 5729.08 of the	309
Revised Code for losses on loans made under the Ohio venture	310
capital program under sections 150.01 to 150.10 of the Revised	311
Code.	312

(B) For any credit except the refundable credits enumerated	313
in this section, the amount of the credit for a taxable year shall	314
not exceed the tax due after allowing for any other credit that	315
precedes it in the order required under this section. Any excess	316
amount of a particular credit may be carried forward if authorized	317
under the section creating that credit. Nothing in this chapter	318
shall be construed to allow a taxpayer to claim, directly or	319
indirectly, a credit more than once for a taxable year.	320

Sec. 5733.01.  (A) The tax provided by this chapter for	321
domestic corporations shall be the amount charged against each	322
corporation organized for profit under the laws of this state and	323
each nonprofit corporation organized pursuant to Chapter 1729. of	324
the Revised Code, except as provided in sections 5733.09 and	325
5733.10 of the Revised Code, for the privilege of exercising its	326
franchise during the calendar year in which that amount is	327
payable, and the tax provided by this chapter for foreign	328
corporations shall be the amount charged against each corporation	329
organized for profit and each nonprofit corporation organized or	330
operating in the same or similar manner as nonprofit corporations	331
organized under Chapter 1729. of the Revised Code, under the laws	332
of any state or country other than this state, except as provided	333
in sections 5733.09 and 5733.10 of the Revised Code, for the	334
privilege of doing business in this state, owning or using a part	335
or all of its capital or property in this state, holding a	336
certificate of compliance with the laws of this state authorizing	337
it to do business in this state, or otherwise having nexus in or	338
with this state under the Constitution of the United States,	339
during the calendar year in which that amount is payable.	340

(B) A corporation is subject to the tax imposed by section	341
5733.06 of the Revised Code for each calendar year that it is so	342
organized, doing business, owning or using a part or all of its	343
capital or property, holding a certificate of compliance, or	344
otherwise having nexus in or with this state under the	345
Constitution of the United States, on the first day of January of	346
that calendar year.	347

(C) Any corporation subject to this chapter that is not	348
subject to the federal income tax shall file its returns and	349
compute its tax liability as required by this chapter in the same	350
manner as if that corporation were subject to the federal income	351
tax.	352

(D) For purposes of this chapter, a federally chartered	353
financial institution shall be deemed to be organized under the	354
laws of the state within which its principal office is located.	355

(E) For purposes of this chapter, any person, as defined in	356
section 5701.01 of the Revised Code, shall be treated as a	357
corporation if the person is classified for federal income tax	358
purposes as an association taxable as a corporation, and an equity	359
interest in the person shall be treated as capital stock of the	360
person.	361

(F) For the purposes of this chapter, "disregarded entity"	362
has the same meaning as in division (D) of section 5745.01 of the	363
Revised Code.	364

(1) A person's interest in a disregarded entity, whether held	365
directly or indirectly, shall be treated as the person's ownership	366
of the assets and liabilities of the disregarded entity, and the	367
income, including gain or loss, shall be included in the person's	368
net income under this chapter.	369

(2) Any sale, exchange, or other disposition of the person's	370
interest in the disregarded entity, whether held directly or	371
indirectly, shall be treated as a sale, exchange, or other	372
disposition of the person's share of the disregarded entity's	373
underlying assets or liabilities, and the gain or loss from such	374
sale, exchange, or disposition shall be included in the person's	375
net income under this chapter.	376

(3) The disregarded entity's payroll, property, and sales	377
factors shall be included in the person's factors.	378

(G) The tax a corporation is required to pay under this	379
chapter shall be as follows:	380

(1)(a) For financial institutions, the greater of the minimum	381
payment required under division (E) of section 5733.06 of the	382
Revised Code or the difference between all taxes charged the	383
financial institution under this chapter, without regard to	384
division (G)(2) of this section, less any credits allowable	385
against such tax.	386

(b) A corporation satisfying the description in division	387
(E)(5), (6), (7), (8), or (10) of section 5751.01 of the Revised	388
Code that is not a financial institution, insurance company, or	389
dealer in intangibles is subject to the taxes imposed under this	390
chapter as a corporation and not subject to tax as a financial	391
institution, and shall pay the greater of the minimum payment	392
required under division (E) of section 5733.06 of the Revised Code	393
or the difference between all the taxes charged under this	394
chapter, without regard to division (G)(2) of this section, less	395
any credits allowable against such tax.	396

(2) For all corporations other than those persons described	397
in division (G)(1)(a) or (b) of this section, the amount under	398
division (G)(2)(a) of this section applicable to the tax year	399
specified less the amount under division (G)(2)(b) of this	400
section:	401

(a)(i) For tax year 2005, the greater of the minimum payment	402
required under division (E) of section 5733.06 of the Revised Code	403
or the difference between all taxes charged the corporation under	404
this chapter and any credits allowable against such tax;	405

(ii) For tax year 2006, the greater of the minimum payment	406
required under division (E) of section 5733.06 of the Revised Code	407
or four-fifths of the difference between all taxes charged the	408
corporation under this chapter and any credits allowable against	409
such tax, except the qualifying pass-through entity tax credit	410
described in division (A)(30)of section 5733.98 of the Revised	411
Code and the refundable credits described in divisions (A)(31) to	412
(35) of section 5733.98 of the Revised Codeapplicable to that tax	413
year;	414

(iii) For tax year 2007, the greater of the minimum payment	415
required under division (E) of section 5733.06 of the Revised Code	416
or three-fifths of the difference between all taxes charged the	417
corporation under this chapter and any credits allowable against	418
such tax, except the qualifying pass-through entity tax credit	419
described in division (A)(30)of section 5733.98 of the Revised	420
Code and the refundable credits described in divisions (A)(31) to	421
(35) of section 5733.98 of the Revised Codeapplicable to that tax	422
year;	423

(iv) For tax year 2008, the greater of the minimum payment	424
required under division (E) of section 5733.06 of the Revised Code	425
or two-fifths of the difference between all taxes charged the	426
corporation under this chapter and any credits allowable against	427
such tax, except the qualifying pass-through entity tax credit	428
described in division (A)(30)of section 5733.98 of the Revised	429
Code and the refundable credits described in divisions (A)(31) to	430
(35) of section 5733.98 of the Revised Codeapplicable to that tax	431
year;	432

(v) For tax year 2009, the greater of the minimum payment	433
required under division (E) of section 5733.06 of the Revised Code	434
or one-fifth of the difference between all taxes charged the	435
corporation under this chapter and any credits allowable against	436
such tax, except the qualifying pass-through entity tax credit	437
described in division (A)(30)of section 5733.98 of the Revised	438
Code and the refundable credits described in divisions (A)(31),	439
(32), (33), and (34) of section 5733.98 of the Revised Code	440
applicable to that tax year;	441

(vi) For tax year 2010 and each tax year thereafter, no tax.

442

(b) A corporation shall subtract from the amount calculated	443
under division (G)(2)(a)(ii), (iii), (iv), or (v) of this section	444
any qualifying pass-through entity tax credit described in	445
division (A)(30)of section 5733.98 of the Revised Code and any	446
refundable credits described in divisions (A)(31) to (35) of	447
section 5733.98 of the Revised Codeapplicable to that tax year to	448
which the corporation is entitled. Any unused qualifying	449
pass-through entity tax credit is not refundable.	450

(c) For the purposes of computing the amount of a credit that	451
may be carried forward to a subsequent tax year under division	452
(G)(2) of this section, a credit is utilized against the tax for a	453
tax year to the extent the credit applies against the tax for that	454
tax year, even if the difference is then multiplied by the	455
applicable fraction under division (G)(2)(a) of this section.	456

(3) Nothing in division (G) of this section eliminates or	457
reduces the tax imposed by section 5733.41 of the Revised Code on	458
a qualifying pass-through entity.	459

Sec. 5733.98.  (A) To provide a uniform procedure for	460
calculating the amount of tax imposed by section 5733.06 of the	461
Revised Code that is due under this chapter, a taxpayer shall	462
claim any credits to which it is entitled in the following order,	463
except as otherwise provided in section 5733.058 of the Revised	464
Code:	465

(1) For tax year 2005, the credit for taxes paid by a	466
qualifying pass-through entity allowed under section 5733.0611 of	467
the Revised Code;	468

(2) The credit allowed for financial institutions under	469
section 5733.45 of the Revised Code;	470

(3) The credit for qualifying affiliated groups under section	471
5733.068 of the Revised Code;	472

(4) The subsidiary corporation credit under section 5733.067	473
of the Revised Code;	474

(5) The savings and loan assessment credit under section	475
5733.063 of the Revised Code;	476

(6) The credit for recycling and litter prevention donations	477
under section 5733.064 of the Revised Code;	478

(7) The credit for employers that enter into agreements with	479
child day-care centers under section 5733.36 of the Revised Code;	480

(8) The credit for employers that reimburse employee child	481
care expenses under section 5733.38 of the Revised Code;	482

(9) The credit for maintaining railroad active grade crossing	483
warning devices under section 5733.43 of the Revised Code;	484

(10) The credit for purchases of lights and reflectors under	485
section 5733.44 of the Revised Code;	486

(11) The nonrefundable job retention credit under division	487
(B) of section 5733.0610 of the Revised Code;	488

(12) The credit for tax years 2008 and 2009 for selling	489
alternative fuel under section 5733.48 of the Revised Code;	490

(13) The second credit for purchases of new manufacturing	491
machinery and equipment under section 5733.33 of the Revised Code;	492

(14) The job training credit under section 5733.42 of the	493
Revised Code;	494

(15) The nonrefundable credit for authorized donations under	495
section 715.58 of the Revised Code;	496

(16) The credit for qualified research expenses under section	497
5733.351 of the Revised Code;	498

(16)(17) The enterprise zone credit under section 5709.66 of	499
the Revised Code;	500

(17)(18) The credit for the eligible costs associated with a	501
voluntary action under section 5733.34 of the Revised Code;	502

(18)(19) The credit for employers that establish on-site	503
child day-care centers under section 5733.37 of the Revised Code;	504

(19)(20) The ethanol plant investment credit under section	505
5733.46 of the Revised Code;	506

(20)(21) The credit for purchases of qualifying grape	507
production property under section 5733.32 of the Revised Code;	508

(21)(22) The export sales credit under section 5733.069 of	509
the Revised Code;	510

(22)(23) The credit for research and development and	511
technology transfer investors under section 5733.35 of the Revised	512
Code;	513

(23)(24) The enterprise zone credits under section 5709.65 of	514
the Revised Code;	515

(24)(25) The credit for using Ohio coal under section 5733.39	516
of the Revised Code;	517

(25)(26) The credit for purchases of qualified low-income	518
community investments under section 5733.58 of the Revised Code;	519

(26)(27) The credit for small telephone companies under	520
section 5733.57 of the Revised Code;	521

(27)(28) The credit for eligible nonrecurring 9-1-1 charges	522
under section 5733.55 of the Revised Code;	523

(28)(29) For tax year 2005, the credit for providing programs	524
to aid the communicatively impaired under division (A) of section	525
5733.56 of the Revised Code;	526

(29)(30) The research and development credit under section	527
5733.352 of the Revised Code;	528

(30)(31) For tax years 2006 and subsequent tax years, the	529
credit for taxes paid by a qualifying pass-through entity allowed	530
under section 5733.0611 of the Revised Code;	531

(31)(32) The refundable credit for rehabilitating a historic	532
building under section 5733.47 of the Revised Code;	533

(32)(33) The refundable jobs creation credit or job retention	534
credit under division (A) of section 5733.0610 of the Revised	535
Code;	536

(33)(34) The refundable credit for tax withheld under	537
division (B)(2) of section 5747.062 of the Revised Code;	538

(34)(35) The refundable credit under section 5733.49 of the	539
Revised Code for losses on loans made to the Ohio venture capital	540
program under sections 150.01 to 150.10 of the Revised Code;	541

(35)(36) For tax years 2006, 2007, and 2008, the refundable	542
credit allowable under division (B) of section 5733.56 of the	543
Revised Code;	544

(36)(37) The refundable motion picture production credit	545
under section 5733.59 of the Revised Code.	546

(B) For any credit except the refundable credits enumerated	547
in this section, the amount of the credit for a tax year shall not	548
exceed the tax due after allowing for any other credit that	549
precedes it in the order required under this section. Any excess	550
amount of a particular credit may be carried forward if authorized	551
under the section creating that credit.	552

Sec. 5747.98.  (A) To provide a uniform procedure for	553
calculating the amount of tax due under section 5747.02 of the	554
Revised Code, a taxpayer shall claim any credits to which the	555
taxpayer is entitled in the following order:	556

(1) The retirement income credit under division (B) of	557
section 5747.055 of the Revised Code;	558

(2) The senior citizen credit under division (C) of section	559
5747.05 of the Revised Code;	560

(3) The lump sum distribution credit under division (D) of	561
section 5747.05 of the Revised Code;	562

(4) The dependent care credit under section 5747.054 of the	563
Revised Code;	564

(5) The lump sum retirement income credit under division (C)	565
of section 5747.055 of the Revised Code;	566

(6) The lump sum retirement income credit under division (D)	567
of section 5747.055 of the Revised Code;	568

(7) The lump sum retirement income credit under division (E)	569
of section 5747.055 of the Revised Code;	570

(8) The low-income credit under section 5747.056 of the	571
Revised Code;	572

(9) The credit for displaced workers who pay for job training	573
under section 5747.27 of the Revised Code;	574

(10) The campaign contribution credit under section 5747.29	575
of the Revised Code;	576

(11) The twenty-dollar personal exemption credit under	577
section 5747.022 of the Revised Code;	578

(12) The joint filing credit under division (G) of section	579
5747.05 of the Revised Code;	580

(13) The nonresident credit under division (A) of section	581
5747.05 of the Revised Code;	582

(14) The credit for a resident's out-of-state income under	583
division (B) of section 5747.05 of the Revised Code;	584

(15) The credit for employers that enter into agreements with	585
child day-care centers under section 5747.34 of the Revised Code;	586

(16) The credit for employers that reimburse employee child	587
care expenses under section 5747.36 of the Revised Code;	588

(17) The credit for adoption of a minor child under section	589
5747.37 of the Revised Code;	590

(18) The credit for purchases of lights and reflectors under	591
section 5747.38 of the Revised Code;	592

(19) The nonrefundable job retention credit under division	593
(B) of section 5747.058 of the Revised Code;	594

(20) The credit for selling alternative fuel under section	595
5747.77 of the Revised Code;	596

(21) The second credit for purchases of new manufacturing	597
machinery and equipment and the credit for using Ohio coal under	598
section 5747.31 of the Revised Code;	599

(22) The job training credit under section 5747.39 of the	600
Revised Code;	601

(23) The enterprise zone credit under section 5709.66 of the	602
Revised Code;	603

(24) The credit for the eligible costs associated with a	604
voluntary action under section 5747.32 of the Revised Code;	605

(25) The nonrefundable credit for authorized donations under	606
section 715.58 of the Revised Code;	607

(26) The credit for employers that establish on-site child	608
day-care centers under section 5747.35 of the Revised Code;	609

(26)(27) The ethanol plant investment credit under section	610
5747.75 of the Revised Code;	611

(27)(28) The credit for purchases of qualifying grape	612
production property under section 5747.28 of the Revised Code;	613

(28)(29) The export sales credit under section 5747.057 of	614
the Revised Code;	615

(29)(30) The credit for research and development and	616
technology transfer investors under section 5747.33 of the Revised	617
Code;	618

(30)(31) The enterprise zone credits under section 5709.65 of	619
the Revised Code;	620

(31)(32) The research and development credit under section	621
5747.331 of the Revised Code;	622

(32)(33) The credit for rehabilitating a historic building	623
under section 5747.76 of the Revised Code;	624

(33)(34) The refundable credit for rehabilitating a historic	625
building under section 5747.76 of the Revised Code;	626

(34)(35) The refundable jobs creation credit or job retention	627
credit under division (A) of section 5747.058 of the Revised Code;	628

(35)(36) The refundable credit for taxes paid by a qualifying	629
entity granted under section 5747.059 of the Revised Code;	630

(36)(37) The refundable credits for taxes paid by a	631
qualifying pass-through entity granted under division (J) of	632
section 5747.08 of the Revised Code;	633

(37)(38) The refundable credit for tax withheld under	634
division (B)(1) of section 5747.062 of the Revised Code;	635

(38)(39) The refundable credit for tax withheld under section	636
5747.063 of the Revised Code;	637

(39)(40) The refundable credit under section 5747.80 of the	638
Revised Code for losses on loans made to the Ohio venture capital	639
program under sections 150.01 to 150.10 of the Revised Code;	640

(40)(41) The refundable motion picture production credit	641
under section 5747.66 of the Revised Code.	642

(B) For any credit, except the refundable credits enumerated	643
in this section and the credit granted under division (I) of	644
section 5747.08 of the Revised Code, the amount of the credit for	645
a taxable year shall not exceed the tax due after allowing for any	646
other credit that precedes it in the order required under this	647
section. Any excess amount of a particular credit may be carried	648
forward if authorized under the section creating that credit.	649
Nothing in this chapter shall be construed to allow a taxpayer to	650
claim, directly or indirectly, a credit more than once for a	651
taxable year.	652

Sec. 5751.98.  (A) To provide a uniform procedure for	653
calculating the amount of tax due under this chapter, a taxpayer	654
shall claim any credits to which it is entitled in the following	655
order:	656

(1) The nonrefundable jobs retention credit under division	657
(B) of section 5751.50 of the Revised Code;	658

(2) The nonrefundable credit for qualified research expenses	659
under division (B) of section 5751.51 of the Revised Code;	660

(3) The nonrefundable credit for authorized donations under	661
section 715.58 of the Revised Code;	662

(4) The nonrefundable credit for a borrower's qualified	663
research and development loan payments under division (B) of	664
section 5751.52 of the Revised Code;	665

(4)(5) The nonrefundable credit for calendar years 2010 to	666
2029 for unused net operating losses under division (B) of section	667
5751.53 of the Revised Code;	668

(5)(6) The refundable credit for calendar year 2030 for	669
unused net operating losses under division (C) of section 5751.53	670
of the Revised Code;	671

(6)(7) The refundable jobs creation credit or job retention	672
credit under division (A) of section 5751.50 of the Revised Code.	673

(B) For any credit except the refundable credits enumerated	674
in this section, the amount of the credit for a tax period shall	675
not exceed the tax due after allowing for any other credit that	676
precedes it in the order required under this section. Any excess	677
amount of a particular credit may be carried forward if authorized	678
under the section creating the credit.	679

Section 2.  That existing sections 5725.98, 5729.98, 5733.01,	680
5733.98, 5747.98, and 5751.98 of the Revised Code are hereby	681
repealed.	682

Section 3.  If this act becomes effective before July 1 of	683
the current calendar year, projects may be submitted by municipal	684
corporations to the Tax Commissioner under section 715.58 of the	685
Revised Code on or before the first day of July of the current	686
calendar year. If this act becomes effective on or after July 1 of	687
the current calendar year, projects may be submitted by municipal	688
corporations to the Tax Commissioner on or before the first day of	689
July of the following calendar year.	690