As Introduced

126th General Assembly Regular Session 2005-2006

H. B. No. 702

Representatives Reinhard, Schlichter 

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A BILL

To amend sections 125.834, 1327.50, 1327.61, 5733.01,

1

5733.98, and 5747.98 and to enact sections

2

5733.47, 5747.76, and 5747.77 of the Revised Code

3

to establish a biodiesel, blended biodiesel, and

4

E85 blend fuel quality testing program; to

5

establish renewable fuel usage requirements for

6

fueling facilities owned or operated by the state;

7

and to authorize tax credits against the

8

corporation franchise and income taxes for the

9

sale of E85 blend fuel, and against the income tax

10

for the sale of renewable fuels.

11

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

Section 1. That sections 125.834, 1327.50, 1327.61, 5733.01,	12
5733.98, and 5747.98 be amended and sections 5733.47, 5747.76, and	13
5747.77 of the Revised Code be enacted to read as follows:	14

Sec. 125.834.  (A) The department of administrative services	15
shall ensure that all new motor vehicles acquired on and after	16
July 1, 2006, by the state for use by state agencies under section	17
125.832 of the Revised Code are capable of using alternative	18
fuels. A state agency that is acquiring new motor vehicles under	19
division (G)(1) of section 125.832 of the Revised Code shall	20
report annually, in a manner prescribed by the director of	21
administrative services, the number of new motor vehicles acquired	22
by the state agency and the number of those motor vehicles that	23
are capable of using alternative fuel.	24

(B) The department shall not purchase or lease, or authorize	25
the purchase or lease by a state agency of, any motor vehicles	26
that are incapable of using alternative fuels, unless one or more	27
of the following apply:	28

(a)(1) The department or state agency is unable to acquire or	29
operate motor vehicles within the cost limitations described in	30
rules adopted under division (D) of this section.	31

(b)(2) The use of alternative fuels would not meet the energy	32
conservation and exhaust emissions criteria described in rules	33
adopted under division (D) of this section.	34

(c)(3) An emergency exists or exigent circumstances exist, as	35
determined by the department of administrative services.	36

(C) Not later than ninety days after the effective date of	37
this sectionOctober 12, 2006, all motor vehicles owned or leased	38
by the state that are capable of using an alternative fuel shall	39
use an alternative fuel if the fuel is reasonably available at a	40
reasonable price. Subject to division (D) of this section, motor	41
vehicles owned or leased by the state shall use at least sixty	42
thousand gallons of E85 blend fuel per calendar year by January 1,	43
2007, with an increase of five thousand gallons per calendar year	44
each calendar year thereafter, and at least one million gallons of	45
biodiesel per calendar year by January 1, 2007, with an increase	46
of one hundred thousand gallons per calendar year each calendar	47
year thereafter. The director of administrative services, under	48
Chapter 119. of the Revised Code, shall adopt rules to implement	49
the fuel use requirement of this division, and the directors and	50
heads of all state departments and agencies shall issue a	51
directive to all state employees who use state motor vehicles	52
informing them of the fuel use requirement. The directive shall	53
instruct state employees to purchase alternative fuels at retail	54
fuel facilities whenever possible.	55

As used in this division, "motor vehicle" has the same	56
meaning as in section 125.831 of the Revised Code and also	57
includes all on-road and off-road vehicles powered by diesel fuel,	58
regardless of gross vehicle weight.	59

(D) The director of administrative services shall adopt and	60
may amend, under Chapter 119. of the Revised Code, rules that	61
include both of the following:	62

(1) Requirements for state agencies in the procurement of	63
alternative fuels and motor vehicles capable of using alternative	64
fuels, and cost limitations for the acquisition and operation of	65
such vehicles;	66

(2) Energy conservation and exhaust emissions criteria for	67
motor vehicles capable of using alternative fuels.	68

(E)(1) As used in division (E) of this section, "renewable	69
fuel" has the same meaning as in section 5747.76 of the Revised	70
Code.	71

(2) Beginning January 1, 2010, the director of administrative	72
services shall ensure that each fueling facility owned or operated	73
by the state dispenses renewable fuel, expressed as a percentage	74
of the total gallons of gasoline dispensed at the fueling	75
facility, in an amount that equals or exceeds the renewable fuel	76
threshold percentage prescribed in divisions (C)(1) to (16) of	77
section 5747.76 of the Revised Code, for the applicable	78
determination period designated in those divisions.	79

Sec. 1327.50.  The director of agriculture shall:

80

(A) Maintain traceability of the state standards to those of	81
the national institute of standards and technology;	82

(B) Enforce sections 1327.46 to 1327.61 of the Revised Code;

83

(C) Issue reasonable rules for the uniform enforcement of	84
sections 1327.46 to 1327.61 of the Revised Code, which rules shall	85
have the force and effect of law;	86

(D) Establish standards of weight, measure, or count,	87
reasonable standards of fill, and standards for the voluntary	88
presentation of cost per unit information for any package;	89

(E) Grant any exemptions from sections 1327.46 to 1327.61 of	90
the Revised Code, or any rules adopted under those sections, when	91
appropriate to the maintenance of good commercial practices in the	92
state;	93

(F) Conduct investigations to ensure compliance with sections	94
1327.46 to 1327.61 of the Revised Code;	95

(G) Delegate to appropriate personnel any of these	96
responsibilities for the proper administration of the director's	97
office;	98

(H) Test as often as is prescribed by rule the standards of	99
weight and measure used by any municipal corporation or county	100
within the state, and approve the same when found to be correct;	101

(I) Inspect and test weights and measures kept, offered, or	102
exposed for sale;	103

(J) Inspect and test to ascertain if they are correct,	104
weights and measures commercially used either:	105

(1) In determining the weight, measure, or count of	106
commodities or things sold, or offered or exposed for sale, on the	107
basis of weight, measure, or count;	108

(2) In computing the basic charge or payment for goods or	109
services rendered on the basis of weight, measure, or count.	110

(K) Test all weights and measures used in checking the	111
receipt or disbursement of supplies in every institution, for the	112
maintenance of which funds are appropriated by the general	113
assembly;	114

(L) Approve for use, and may mark, such weights and measures	115
as the director finds to be correct, and shall reject and mark as	116
rejected such weights and measures as the director finds to be	117
incorrect. Weights and measures that have been rejected may be	118
seized if not corrected within the time specified or if used or	119
disposed of in a manner not specifically authorized, and may be	120
condemned and seized if found to be incorrect and not capable of	121
being made correct.	122

(M) Weigh, measure, or inspect packaged commodities kept,	123
offered, or exposed for sale, sold, or in the process of delivery	124
to determine whether they contain the amounts represented and	125
whether they are kept, offered, or exposed for sale in accordance	126
with sections 1327.46 to 1327.61 of the Revised Code or rules	127
adopted under those sections. In carrying out this section, the	128
director shall employ recognized sampling procedures, such as	129
those designated in the national institute of standards and	130
technology handbook 133 "checking the net contents of packaged	131
goods."	132

(N) Prescribe by rule the appropriate term or unit of weight	133
or measure to be used, whenever the director determines in the	134
case of a specific commodity that an existing practice of	135
declaring the quantity by weight, measure, numerical count, or	136
combination thereof, does not facilitate value comparisons by	137
consumers, or offers an opportunity for consumer confusion;	138

(O) Allow reasonable variations from the stated quantity of	139
contents, which shall include those caused by unavoidable	140
deviations in good manufacturing practice and by loss or gain of	141
moisture during the course of good distribution practice, only	142
after the commodity has entered intrastate commerce;	143

(P) Provide for the weights and measures training of	144
inspector personnel and establish minimum training requirements,	145
which shall be met by all inspector personnel, whether county,	146
municipal, or state;	147

(Q) Prescribe the methods of tests and inspections to be	148
employed in the enforcement of sections 1327.46 to 1327.61 of the	149
Revised Code. The director may prescribe the official test and	150
inspection forms to be used.	151

(R) Provide by rule for voluntary registration with the	152
director of private weighing and measuring device servicing	153
agencies, and personnel;	154

(S) In conjunction with the national institute of standards	155
and technology, operate a type evaluation program for	156
certification of weighing and measuring devices as part of the	157
national type evaluation program. The director shall establish a	158
schedule of fees for services rendered by the department of	159
agriculture for type evaluation services. The director may	160
require any weighing or measuring instrument or device to be	161
traceable to a national type evaluation program certificate of	162
conformance prior to use for commercial or law enforcement	163
purposes.	164

(T) Prescribe by rule an alternative fuel quality testing	165
program to ensure that biodiesel, blended biodiesel, and E85 blend	166
fuel sold in this state meet the applicable American society for	167
testing and materials specifications designated in section 125.831	168
of the Revised Code and any other standards that the director of	169
administrative services adopts by rule under that section. At a	170
minimum, the rules shall establish all of the following:	171

(1) Sampling, testing, and enforcement standards for	172
biodiesel, blended biodiesel, and E85 blend fuel, and require the	173
collection of samples of those fuels that are marketed in this	174
state;	175

(2) The appropriate American society for testing and	176
materials specifications to be used in the program;	177

(3) Requirements and procedures for the certification of each	178
fuel pump at which a retailer sells or offers for sale biodiesel,	179
blended biodiesel, or E85 blend fuel to ensure that the retailer	180
is in compliance with the program. The procedures shall include	181
the issuance of a sticker, as prescribed by the director, for each	182
fuel pump that complies with the program.	183

(4) Criteria for issuing a stop sale order for any biodiesel,	184
blended biodiesel, or E85 blend fuel found not to be in compliance	185
with the specifications established by rule pursuant to this	186
section.	187

Sec. 1327.61.  No person shall do any of the following:

188

(A) Use or have in possession for use in commerce any	189
incorrect weight or measure;	190

(B) Wrap, package, label, or advertise any product or service	191
contrary to this chapter, or any rules adopted under it, or sell,	192
offer, hold, or expose for sale any service or product wrapped,	193
packaged, labeled, or offered for sale contrary to this chapter or	194
any rules adopted under it, or misrepresent the quantity or price	195
or service contrary to this chapter, or any rules adopted under	196
it;	197

(C) Remove any tag, seal, or mark from any weight or measure	198
without specific written authorization from the proper authority;	199

(D) Hinder or obstruct any weights and measures official in	200
the performance of histhe official's duties;	201

(E) Sell or offer for use in commerce any incorrect weight or	202
measure;	203

(F) Represent biodiesel, blended biodiesel, or E85 blend fuel	204
in any manner that may deceive or tend to deceive the purchaser as	205
to the nature or quality of the product.	206

Sec. 5733.01.  (A) The tax provided by this chapter for	207
domestic corporations shall be the amount charged against each	208
corporation organized for profit under the laws of this state and	209
each nonprofit corporation organized pursuant to Chapter 1729. of	210
the Revised Code, except as provided in sections 5733.09 and	211
5733.10 of the Revised Code, for the privilege of exercising its	212
franchise during the calendar year in which that amount is	213
payable, and the tax provided by this chapter for foreign	214
corporations shall be the amount charged against each corporation	215
organized for profit and each nonprofit corporation organized or	216
operating in the same or similar manner as nonprofit corporations	217
organized under Chapter 1729. of the Revised Code, under the laws	218
of any state or country other than this state, except as provided	219
in sections 5733.09 and 5733.10 of the Revised Code, for the	220
privilege of doing business in this state, owning or using a part	221
or all of its capital or property in this state, holding a	222
certificate of compliance with the laws of this state authorizing	223
it to do business in this state, or otherwise having nexus in or	224
with this state under the Constitution of the United States,	225
during the calendar year in which that amount is payable.	226

(B) A corporation is subject to the tax imposed by section	227
5733.06 of the Revised Code for each calendar year that it is so	228
organized, doing business, owning or using a part or all of its	229
capital or property, holding a certificate of compliance, or	230
otherwise having nexus in or with this state under the	231
Constitution of the United States, on the first day of January of	232
that calendar year.	233

(C) Any corporation subject to this chapter that is not	234
subject to the federal income tax shall file its returns and	235
compute its tax liability as required by this chapter in the same	236
manner as if that corporation were subject to the federal income	237
tax.	238

(D) For purposes of this chapter, a federally chartered	239
financial institution shall be deemed to be organized under the	240
laws of the state within which its principal office is located.	241

(E) For purposes of this chapter, any person, as defined in	242
section 5701.01 of the Revised Code, shall be treated as a	243
corporation if the person is classified for federal income tax	244
purposes as an association taxable as a corporation, and an equity	245
interest in the person shall be treated as capital stock of the	246
person.	247

(F) For the purposes of this chapter, "disregarded entity"	248
has the same meaning as in division (D) of section 5745.01 of the	249
Revised Code.	250

(1) A person's interest in a disregarded entity, whether held	251
directly or indirectly, shall be treated as the person's ownership	252
of the assets and liabilities of the disregarded entity, and the	253
income, including gain or loss, shall be included in the person's	254
net income under this chapter.	255

(2) Any sale, exchange, or other disposition of the person's	256
interest in the disregarded entity, whether held directly or	257
indirectly, shall be treated as a sale, exchange, or other	258
disposition of the person's share of the disregarded entity's	259
underlying assets or liabilities, and the gain or loss from such	260
sale, exchange, or disposition shall be included in the person's	261
net income under this chapter.	262

(3) The disregarded entity's payroll, property, and sales	263
factors shall be included in the person's factors.	264

(G) The tax a corporation is required to pay under this	265
chapter shall be as follows:	266

(1)(a) For financial institutions, the greater of the minimum	267
payment required under division (E) of section 5733.06 of the	268
Revised Code or the difference between all taxes charged the	269
financial institution under this chapter, without regard to	270
division (G)(2) of this section, less any credits allowable	271
against such tax.	272

(b) A corporation satisfying the description in division	273
(E)(5), (6), (7), (8), or (10) of section 5751.01 of the Revised	274
Code that is not a financial institution, insurance company, or	275
dealer in intangibles is subject to the taxes imposed under this	276
chapter as a corporation and not subject to tax as a financial	277
institution, and shall pay the greater of the minimum payment	278
required under division (E) of section 5733.06 of the Revised Code	279
or the difference between all the taxes charged under this	280
chapter, without regard to division (G)(2) of this section, less	281
any credits allowable against such tax.	282

(2) For all corporations other than those persons described	283
in division (G)(1)(a) or (b) of this section, the amount under	284
division (G)(2)(a) of this section applicable to the tax year	285
specified less the amount under division (G)(2)(b) of this	286
section:	287

(a)(i) For tax year 2005, the greater of the minimum payment	288
required under division (E) of section 5733.06 of the Revised Code	289
or the difference between all taxes charged the corporation under	290
this chapter and any credits allowable against such tax;	291

(ii) For tax year 2006, the greater of the minimum payment	292
required under division (E) of section 5733.06 of the Revised Code	293
or four-fifths of the difference between all taxes charged the	294
corporation under this chapter and any credits allowable against	295
such tax except the qualifying pass-through entity tax credit	296
described in division (A)(29) and the refundable credits described	297
in divisions (A)(30), (31), (32), and (33)to (34) of section	298
5733.98 of the Revised Code;	299

(iii) For tax year 2007, the greater of the minimum payment	300
required under division (E) of section 5733.06 of the Revised Code	301
or three-fifths of the difference between all taxes charged the	302
corporation under this chapter and any credits allowable against	303
such tax except the qualifying pass-through entity tax credit	304
described in division (A)(29) and the refundable credits described	305
in divisions (A)(30), (31), (32), and (33)to (34) of section	306
5733.98 of the Revised Code;	307

(iv) For tax year 2008, the greater of the minimum payment	308
required under division (E) of section 5733.06 of the Revised Code	309
or two-fifths of the difference between all taxes charged the	310
corporation under this chapter and any credits allowable against	311
such tax except the qualifying pass-through entity tax credit	312
described in division (A)(29) and the refundable credits described	313
in divisions (A)(30), (31), (32), and (33)to (34) of section	314
5733.98 of the Revised Code;	315

(v) For tax year 2009, the greater of the minimum payment	316
required under division (E) of section 5733.06 of the Revised Code	317
or one-fifth of the difference between all taxes charged the	318
corporation under this chapter and any credits allowable against	319
such tax except the qualifying pass-through entity tax credit	320
described in division (A)(29) and the refundable credits described	321
in divisions (A)(30), (31), and (32), and (34) of section 5733.98	322
of the Revised Code;	323

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

324

(b) A corporation shall subtract from the amount calculated	325
under division (G)(2)(a)(ii), (iii), (iv), or (v) of this section	326
any qualifying pass-through entity tax credit described in	327
division (A)(29) and any refundable credits described in divisions	328
(A)(30), (31), (32), and (33)to (34) of section 5733.98 of the	329
Revised Code to which the corporation is entitled. Any unused	330
qualifying pass-through entity tax credit is not refundable.	331

(c) For the purposes of computing the amount of a credit that	332
may be carried forward to a subsequent tax year under division	333
(G)(2) of this section, a credit is utilized against the tax for a	334
tax year to the extent the credit applies against the tax for that	335
tax year, even if the difference is then multiplied by the	336
applicable fraction under division (G)(2)(a) of this section.	337

(3) Nothing in division (G) of this section eliminates or	338
reduces the tax imposed by section 5733.41 of the Revised Code on	339
a qualifying pass-through entity.	340

Sec. 5733.47.  (A) As used in this section:

341

(1) "E85 blend fuel" has the same meaning as in section	342
125.831 of the Revised Code.	343

(2) "Retail dealer" means any person that is a taxpayer under	344
this chapter and that owns or operates a retail service station	345
located in this state.	346

(3) "Retail service station" means a location from which E85	347
blend fuel is sold to the general public and is dispensed or	348
pumped directly into motor vehicle fuel tanks for consumption.	349

(B) There is allowed a refundable credit against the tax	350
imposed by section 5733.06 of the Revised Code for a retail dealer	351
that sells E85 blend fuel. The credit may be claimed for tax years	352
2007, 2008, and 2009. The credit shall equal fifteen cents per	353
gallon of E85 blend fuel sold and dispensed through metered pumps	354
located at the retail dealer's retail service station during the	355
tax year. The credit shall be calculated separately for each	356
retail service station owned or operated by the retail dealer.	357

(C) The retail dealer shall claim the credit under this	358
section in the order prescribed in section 5733.98 of the Revised	359
Code. If the amount of the credit exceeds the amount of tax	360
otherwise due under section 5733.06 of the Revised Code, after	361
deducting all other credits that precede the credit under this	362
section in that order, the excess shall be refunded to the retail	363
dealer. For purposes of making tax payments under this chapter,	364
taxes equal to the amount of the refundable credit shall be	365
considered to be paid to this state on the first day of the tax	366
year.	367

(D) The tax commissioner may require that the retail dealer	368
furnish information as is necessary to support a claim for a tax	369
credit under this section, and no credit shall be allowed unless	370
that information is provided.	371

Sec. 5733.98.  (A) To provide a uniform procedure for	372
calculating the amount of tax imposed by section 5733.06 of the	373
Revised Code that is due under this chapter, a taxpayer shall	374
claim any credits to which it is entitled in the following order,	375
except as otherwise provided in section 5733.058 of the Revised	376
Code:	377

(1) For tax year 2005, the credit for taxes paid by a	378
qualifying pass-through entity allowed under section 5733.0611 of	379
the Revised Code;	380

(2) The credit allowed for financial institutions under	381
section 5733.45 of the Revised Code;	382

(3) The credit for qualifying affiliated groups under section	383
5733.068 of the Revised Code;	384

(4) The subsidiary corporation credit under section 5733.067	385
of the Revised Code;	386

(5) The savings and loan assessment credit under section	387
5733.063 of the Revised Code;	388

(6) The credit for recycling and litter prevention donations	389
under section 5733.064 of the Revised Code;	390

(7) The credit for employers that enter into agreements with	391
child day-care centers under section 5733.36 of the Revised Code;	392

(8) The credit for employers that reimburse employee child	393
care expenses under section 5733.38 of the Revised Code;	394

(9) The credit for maintaining railroad active grade crossing	395
warning devices under section 5733.43 of the Revised Code;	396

(10) The credit for purchases of lights and reflectors under	397
section 5733.44 of the Revised Code;	398

(11) The job retention credit under division (B) of section	399
5733.0610 of the Revised Code;	400

(12) The credit for purchases of new manufacturing machinery	401
and equipment under section 5733.31 or section 5733.311 of the	402
Revised Code;	403

(13) The second credit for purchases of new manufacturing	404
machinery and equipment under section 5733.33 of the Revised Code;	405

(14) The job training credit under section 5733.42 of the	406
Revised Code;	407

(15) The credit for qualified research expenses under section	408
5733.351 of the Revised Code;	409

(16) The enterprise zone credit under section 5709.66 of the	410
Revised Code;	411

(17) The credit for the eligible costs associated with a	412
voluntary action under section 5733.34 of the Revised Code;	413

(18) The credit for employers that establish on-site child	414
day-care centers under section 5733.37 of the Revised Code;	415

(19) The ethanol plant investment credit under section	416
5733.46 of the Revised Code;	417

(20) The credit for purchases of qualifying grape production	418
property under section 5733.32 of the Revised Code;	419

(21) The export sales credit under section 5733.069 of the	420
Revised Code;	421

(22) The credit for research and development and technology	422
transfer investors under section 5733.35 of the Revised Code;	423

(23) The enterprise zone credits under section 5709.65 of the	424
Revised Code;	425

(24) The credit for using Ohio coal under section 5733.39 of	426
the Revised Code;	427

(25) The credit for small telephone companies under section	428
5733.57 of the Revised Code;	429

(26) The credit for eligible nonrecurring 9-1-1 charges under	430
section 5733.55 of the Revised Code;	431

(27) For tax year 2005, the credit for providing programs to	432
aid the communicatively impaired under division (A) of section	433
5733.56 of the Revised Code;	434

(28) The research and development credit under section	435
5733.352 of the Revised Code;	436

(29) For tax years 2006 and subsequent tax years, the credit	437
for taxes paid by a qualifying pass-through entity allowed under	438
section 5733.0611 of the Revised Code;	439

(30) The refundable jobs creation credit under division (A)	440
of section 5733.0610 of the Revised Code;	441

(31) The refundable credit for tax withheld under division	442
(B)(2) of section 5747.062 of the Revised Code;	443

(32) The refundable credit under section 5733.49 of the	444
Revised Code for losses on loans made to the Ohio venture capital	445
program under sections 150.01 to 150.10 of the Revised Code;	446

(33) For tax years 2006, 2007, and 2008, the refundable	447
credit allowable under division (B) of section 5733.56 of the	448
Revised Code;	449

(34) For tax years 2007, 2008, and 2009, the refundable	450
credit for selling E85 blend fuel under section 5733.47 of the	451
Revised Code.	452

(B) For any credit except the credits enumerated in divisions	453
(A)(30), (31), (32), and (33)to (34) of this section, the amount	454
of the credit for a tax year shall not exceed the tax due after	455
allowing for any other credit that precedes it in the order	456
required under this section. Any excess amount of a particular	457
credit may be carried forward if authorized under the section	458
creating that credit.	459

Sec. 5747.76.  (A) As used in this section:

460

(1) "Blended biodiesel" and "biodiesel" have the same	461
meanings as in section 125.831 of the Revised Code.	462

(2) "Distribution percentage" means the total gallons of	463
renewable fuel sold at a retail service station, expressed as a	464
percentage of a retail dealer's total gallons of gasoline sold at	465
that retail service station, in the applicable determination	466
period designated in divisions (C)(1) to (16) of this section.	467

(3) "Ethanol" means fermentation ethyl alcohol derived from	468
agricultural products, including potatoes, cereal, grains, cheese	469
whey, and sugar beets; forest products; or other renewable	470
resources, including residue and waste generated from the	471
production, processing, and marketing of agricultural products,	472
forest products, and other renewable resources that meet all of	473
the specifications in the American society for testing and	474
materials (ASTM) specification D 4806-88 and is denatured as	475
specified in Parts 20 and 21 of Title 27 of the Code of Federal	476
Regulations.	477

(4) "Ethanol blended gasoline" means a formulation of	478
gasoline blended with ethanol, which formulation contains at least	479
ten per cent ethanol by volume.	480

(5) "Gasoline" has the same meaning as in section 5735.01 of	481
the Revised Code.	482

(6) "Renewable fuel" means biodiesel, blended biodiesel,	483
ethanol, or ethanol blended gasoline.	484

(7) "Retail dealer" means any person that is a taxpayer under	485
this chapter that owns or operates a retail service station	486
located in this state.	487

(8) "Retail service station" means a location from which	488
renewable fuel is sold to the general public and is dispensed or	489
pumped directly into motor vehicle fuel tanks for consumption.	490

(B) For taxable years beginning on and after January 1, 2010,	491
but ending on or before December 31, 2025, there is allowed a	492
refundable credit against the tax imposed by section 5747.02 of	493
the Revised Code for a retail dealer that sells renewable fuel.	494
The credit shall equal six and one-half cents per gallon of	495
renewable fuel sold and dispensed through metered pumps located at	496
the retail dealer's retail service station during the taxable	497
year, if the retail dealer's distribution percentage during the	498
taxable year equals or exceeds the applicable threshold percentage	499
set forth in divisions (C)(1) to (16) of this section. If the	500
retail dealer's distribution percentage during a taxable year is	501
less than the applicable threshold percentage set forth in	502
divisions (C)(1) to (16) of this section, but is more than fifty	503
per cent of that threshold percentage, the amount of the credit is	504
three and one-fourth cents per gallon of renewable fuel sold and	505
dispensed through metered pumps located at the retail dealer's	506
retail service station during the taxable year. The credit shall	507
be calculated separately for each retail service station owned or	508
operated by the retail dealer. The credit allowed under this	509
section may not be claimed for taxable years beginning on or after	510
January 1, 2026.	511

(C) A retail dealer's renewable fuel threshold percentage is	512
as follows:	513

(1) Ten per cent for the determination period beginning on	514
January 1, 2010, and ending December 31, 2010;	515

(2) Eleven per cent for the determination period beginning on	516
January 1, 2011, and ending December 31, 2011;	517

(3) Twelve per cent for the determination period beginning on	518
January 1, 2012, and ending December 31, 2012;	519

(4) Thirteen per cent for the determination period beginning	520
on January 1, 2013, and ending December 31, 2013;	521

(5) Fourteen per cent for the determination period beginning	522
on January 1, 2014, and ending December 31, 2014;	523

(6) Fifteen per cent for the determination period beginning	524
on January 1, 2015, and ending December 31, 2015;	525

(7) Sixteen per cent for the determination period beginning	526
on January 1, 2016, and ending December 31, 2016;	527

(8) Seventeen per cent for the determination period beginning	528
on January 1, 2017, and ending December 31, 2017;	529

(9) Eighteen per cent for the determination period beginning	530
on January 1, 2018, and ending December 31, 2018;	531

(10) Nineteen per cent for the determination period beginning	532
on January 1, 2019, and ending December 31, 2019;	533

(11) Twenty per cent for the determination period beginning	534
on January 1, 2020, and ending December 31, 2020;	535

(12) Twenty-one per cent for the determination period	536
beginning on January 1, 2021, and ending December 31, 2021;	537

(13) Twenty-two per cent for the determination period	538
beginning on January 1, 2022, and ending December 31, 2022;	539

(14) Twenty-three per cent for the determination period	540
beginning on January 1, 2023, and ending December 31, 2023;	541

(15) Twenty-four per cent for the determination period	542
beginning on January 1, 2024, and ending December 31, 2024;	543

(16) Twenty-five per cent for the determination period	544
beginning on January 1, 2025, and ending December 31, 2025.	545

(D) The retail dealer shall claim the credit under this	546
section in the order prescribed in section 5747.98 of the Revised	547
Code. If the amount of the credit exceeds the amount of tax	548
otherwise due under section 5747.02 of the Revised Code, after	549
deducting all other credits that precede the credit allowed under	550
this section in that order, the excess shall be refunded to the	551
retail dealer. For purposes of making tax payments under this	552
chapter, taxes equal to the amount of the refundable credit shall	553
be considered to be paid to this state on the first day of the	554
taxable year.	555

(E) The tax commissioner may require that the retail dealer	556
furnish information as is necessary to support a claim for a tax	557
credit under this section, and no credit shall be allowed unless	558
that information is provided. The commissioner may adopt rules	559
necessary for the administration of the tax credit, including	560
rules that establish an application form and procedures governing	561
the application process for the credit.	562

(F) Nothing in this section limits or disallows pass-through	563
treatment of the credit if the retail dealer is a pass-through	564
entity.	565

Sec. 5747.77.  (A) As used in this section:

566

(1) "E85 blend fuel" has the same meaning as in section	567
125.831 of the Revised Code.	568

(2) "Retail dealer" means any person that is a taxpayer under	569
this chapter and that owns or operates a retail service station	570
located in this state.	571

(3) "Retail service station" means a location from which E85	572
blend fuel is sold to the general public and is dispensed or	573
pumped directly into motor vehicle fuel tanks for consumption.	574

(B) For taxable years beginning in 2006, 2007, and 2008,	575
there is allowed a refundable credit against the tax imposed by	576
section 5747.02 of the Revised Code for a retail dealer that sells	577
E85 blend fuel. The credit shall equal fifteen cents per gallon of	578
E85 blend fuel sold and dispensed through metered pumps located at	579
the retail dealer's retail service station during the taxable	580
year. The credit shall be calculated separately for each retail	581
service station owned or operated by the retail dealer.	582

(C) The retail dealer shall claim the credit under this	583
section in the order prescribed in section 5747.98 of the Revised	584
Code. If the amount of the credit exceeds the amount of tax	585
otherwise due under section 5747.02 of the Revised Code, after	586
deducting all other credits that precede the credit allowed under	587
this section in that order, the excess shall be refunded to the	588
retail dealer. For purposes of making tax payments under this	589
chapter, taxes equal to the amount of the refundable credit shall	590
be considered to be paid to this state on the first day of the	591
taxable year.	592

(D) The tax commissioner may require that the retail dealer	593
furnish information as is necessary to support a claim for a tax	594
credit under this section, and no credit shall be allowed unless	595
that information is provided.	596

(E) Nothing in this section limits or disallows pass-through	597
treatment of the credit if the retail dealer is a pass-through	598
entity.	599

Sec. 5747.98.  (A) To provide a uniform procedure for	600
calculating the amount of tax due under section 5747.02 of the	601
Revised Code, a taxpayer shall claim any credits to which the	602
taxpayer is entitled in the following order:	603

(1) The retirement income credit under division (B) of	604
section 5747.055 of the Revised Code;	605

(2) The senior citizen credit under division (C) of section	606
5747.05 of the Revised Code;	607

(3) The lump sum distribution credit under division (D) of	608
section 5747.05 of the Revised Code;	609

(4) The dependent care credit under section 5747.054 of the	610
Revised Code;	611

(5) The lump sum retirement income credit under division (C)	612
of section 5747.055 of the Revised Code;	613

(6) The lump sum retirement income credit under division (D)	614
of section 5747.055 of the Revised Code;	615

(7) The lump sum retirement income credit under division (E)	616
of section 5747.055 of the Revised Code;	617

(8) The low-income credit under section 5747.056 of the	618
Revised Code;	619

(9) The credit for displaced workers who pay for job training	620
under section 5747.27 of the Revised Code;	621

(10) The campaign contribution credit under section 5747.29	622
of the Revised Code;	623

(11) The twenty-dollar personal exemption credit under	624
section 5747.022 of the Revised Code;	625

(12) The joint filing credit under division (G) of section	626
5747.05 of the Revised Code;	627

(13) The nonresident credit under division (A) of section	628
5747.05 of the Revised Code;	629

(14) The credit for a resident's out-of-state income under	630
division (B) of section 5747.05 of the Revised Code;	631

(15) The credit for employers that enter into agreements with	632
child day-care centers under section 5747.34 of the Revised Code;	633

(16) The credit for employers that reimburse employee child	634
care expenses under section 5747.36 of the Revised Code;	635

(17) The credit for adoption of a minor child under section	636
5747.37 of the Revised Code;	637

(18) The credit for purchases of lights and reflectors under	638
section 5747.38 of the Revised Code;	639

(19) The job retention credit under division (B) of section	640
5747.058 of the Revised Code;	641

(20) The credit for purchases of new manufacturing machinery	642
and equipment under section 5747.26 or section 5747.261 of the	643
Revised Code;	644

(21) The second credit for purchases of new manufacturing	645
machinery and equipment and the credit for using Ohio coal under	646
section 5747.31 of the Revised Code;	647

(22) The job training credit under section 5747.39 of the	648
Revised Code;	649

(23) The enterprise zone credit under section 5709.66 of the	650
Revised Code;	651

(24) The credit for the eligible costs associated with a	652
voluntary action under section 5747.32 of the Revised Code;	653

(25) The credit for employers that establish on-site child	654
day-care centers under section 5747.35 of the Revised Code;	655

(26) The ethanol plant investment credit under section	656
5747.75 of the Revised Code;	657

(27) The credit for purchases of qualifying grape production	658
property under section 5747.28 of the Revised Code;	659

(28) The export sales credit under section 5747.057 of the	660
Revised Code;	661

(29) The credit for research and development and technology	662
transfer investors under section 5747.33 of the Revised Code;	663

(30) The enterprise zone credits under section 5709.65 of the	664
Revised Code;	665

(31) The research and development credit under section	666
5747.331 of the Revised Code;	667

(32) The refundable jobs creation credit under division (A)	668
of section 5747.058 of the Revised Code;	669

(33) The refundable credit for taxes paid by a qualifying	670
entity granted under section 5747.059 of the Revised Code;	671

(34) The refundable credits for taxes paid by a qualifying	672
pass-through entity granted under division (J) of section 5747.08	673
of the Revised Code;	674

(35) The refundable credit for tax withheld under division	675
(B)(1) of section 5747.062 of the Revised Code;	676

(36) The refundable credit under section 5747.80 of the	677
Revised Code for losses on loans made to the Ohio venture capital	678
program under sections 150.01 to 150.10 of the Revised Code;	679

(37) The refundable credit for selling renewable fuel under	680
section 5747.76 of the Revised Code;	681

(38) The refundable credit for selling E85 blend fuel under	682
section 5747.77 of the Revised Code.	683

(B) For any credit, except the credits enumerated in	684
divisions (A)(32) to (36)(38) of this section and the credit	685
granted under division (I) of section 5747.08 of the Revised Code,	686
the amount of the credit for a taxable year shall not exceed the	687
tax due after allowing for any other credit that precedes it in	688
the order required under this section. Any excess amount of a	689
particular credit may be carried forward if authorized under the	690
section creating that credit. Nothing in this chapter shall be	691
construed to allow a taxpayer to claim, directly or indirectly, a	692
credit more than once for a taxable year.	693

Section 2.  That existing sections 125.834, 1327.50, 1327.61,	694
5733.01, 5733.98, and 5747.98 of the Revised Code are hereby	695
repealed.	696

Section 3.  The Director of Agriculture shall not commence	697
prescribing by rule the alternative fuel quality testing program	698
required by section 1327.50 of the Revised Code, as amended by	699
this act, until the specifications referred to in that section	700
have been established by the American Society for Testing and	701
Materials and adopted by rule of the Director of Administrative	702
Services under section 125.831 of the Revised Code. When those	703
specifications have been so established and adopted, the Director	704
shall adopt rules for the program not later than 180 days	705
thereafter.	706