As Introduced

126th General Assembly Regular Session 2005-2006

S. B. No. 60

Senators Schuring, Coughlin, Dann, Jacobson, Zurz, Gardner, Fedor, Fingerhut, Brady, Clancy 

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A BILL

To amend sections 5725.24, 5733.98, 5747.08, and

1

5747.98 and to enact sections 149.311, 5725.151,

2

5727.40, 5733.47, and 5747.76 of the Revised Code

3

to authorize nonrefundable, transferable tax

4

credits for rehabilitating historic buildings.

5

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

Section 1. That sections 5725.24, 5733.98, 5747.08, and	6
5747.98 be amended and sections 149.311, 5725.151, 5727.40,	7
5733.47, and 5747.76 of the Revised Code be amended to read as	8
follows:	9

Sec. 149.311.  (A) As used in this section:

10

(1) "Historic building" means a building, including its	11
structural components, that is located in this state and that is	12
either individually listed on the national register of historic	13
places under 16 U.S.C. 470a, located in a registered historic	14
district, and certified by the state historic preservation officer	15
as being of historic significance to the district or individually	16
listed as a historic landmark designated by a local government	17
certified under 16 U.S.C. 470a(c).	18

(2) "Qualified lessee" means a person occupying or otherwise	19
holding a historic building under a lease with a term ending not	20
earlier than five years after completion of the rehabilitation for	21
which a rehabilitation tax credit certificate may be issued under	22
this section, determined without regard to any renewal period of	23
the lease.	24

(3) "Qualified rehabilitation expenditures" means	25
expenditures paid or incurred during the rehabilitation period by	26
an owner or qualified lessee of a historic building to	27
rehabilitate the building. "Qualified rehabilitation expenditures"	28
includes architectural or engineering fees paid or incurred in	29
connection with the rehabilitation and expenses incurred in the	30
preparation of nomination forms for listing on the national	31
register of historic places. "Qualified rehabilitation	32
expenditures" does not include the cost of acquiring a building or	33
expenditures to expand or enlarge a historic building.	34

(4) "Owner" of a building means a person holding the fee	35
simple interest in the building.	36

(5) "Certificate owner" means any of the following persons	37
registered with the tax commissioner under section 5733.47 of the	38
Revised Code as the owner of a rehabilitation tax credit	39
certificate or certificate share:	40

(a) The owner or qualified lessee of a historic building to	41
which the certificate was issued under this section and that has	42
not assigned the certificate or all of the certificate shares to	43
assignees;	44

(b) An assignee of a certificate or certificate share.

45

(6) "Certificate share" means a portion, less than one	46
hundred per cent, of the dollar amount of qualifying	47
rehabilitation expenditures for which a tax credit may be claimed	48
under section 5725.151, 5727.40, 5733.47, or 5747.76 of the	49
Revised Code corresponding with a rehabilitation tax credit	50
certificate.	51

(7) "Registered historic district" means a historic district	52
listed in the national register of historic places under 16 U.S.C.	53
470a, a historic district designated by a local government	54
certified under 16 U.S.C. 470a(c), or a local historic district	55
certified under 36 C.F.R. 67.8 and 67.9.	56

(8) "Rehabilitation" means the process of returning a	57
building or buildings to a state of utility, through repair or	58
alteration, making possible an efficient use while preserving	59
those portions and features of the building and its site and	60
environment that are significant to its historic, architectural,	61
and cultural values.	62

(9) "Rehabilitation period" means one of the following:

63

(a) If the rehabilitation initially was not planned to be	64
completed in stages, a period not to exceed twenty-four months	65
beginning with the month in which physical rehabilitation work	66
begins;	67

(b) If the rehabilitation initially was planned to be	68
completed in stages, a period not to exceed sixty months beginning	69
with the month in which physical rehabilitation work begins.	70

(10) "State historic preservation officer" or "officer" means	71
the state historic preservation officer appointed by the governor	72
under 16 U.S.C. 470a.	73

(B) The owner or qualified lessee of a historic building may	74
apply to the state historic preservation officer for a	75
rehabilitation tax credit certificate. The form and manner of	76
filing such applications shall be prescribed by the state historic	77
preservation officer or the officer's designee. The officer or the	78
officer's designee shall accept and review such applications, and	79
shall approve issuance of a rehabilitation tax credit certificate	80
to an applicant if the officer or designee determines all of the	81
following:	82

(1) That the building that is the subject of the application	83
is a historic building;	84

(2) That the rehabilitation satisfies standards prescribed by	85
the United States Secretary of the Interior under 16 U.S.C. 470,	86
et seq., as amended, and 36 C.F.R. 67.7 or a successor to that	87
section;	88

(3) That the expenditures to rehabilitate the building are	89
qualified rehabilitation expenditures and are reported by the	90
applicant to exceed the following:	91

(a) In the case of a historic building not intended to be	92
held as income-producing property, five thousand dollars;	93

(b) In the case of a historic building intended to be held as	94
income-producing property, the greater of five thousand dollars or	95
the adjusted basis of the building as it would be determined under	96
subparagraph (c)(1)(C) of section 47 of the Internal Revenue Code.	97

An applicant shall demonstrate to the satisfaction of the	98
state historic preservation officer or the officer's designee that	99
the rehabilitation satisfies the standards described in division	100
(B)(2) of this section before the applicant begins physical	101
rehabilitation work. A rehabilitation tax credit certificate for a	102
historic building shall not be issued before rehabilitation of the	103
building is completed.	104

(C) Rehabilitation tax credit certificates shall be in a form	105
to be devised by the state historic preservation officer or	106
designee with the advice of the tax commissioner, shall identify	107
the applicant and the building that is the subject of the	108
application, shall show the amount of the qualified rehabilitation	109
expenditures the applicant claims to have paid or incurred, and	110
shall bear a unique registration number. Issuance of a certificate	111
represents a finding by the officer or the officer's designee of	112
the matters described in divisions (B)(1), (2), and (3) of this	113
section only; issuance of a certificate does not represent a	114
verification or certification by the officer or the officer's	115
designee of the amount of qualified rehabilitation expenditures	116
for which a tax credit may be claimed. The amount of qualified	117
rehabilitation expenditures for which a tax credit may be claimed	118
is subject to inspection and examination by the tax commissioner	119
or employees of the commissioner under section 5703.19 of the	120
Revised Code and any other applicable provision of law. Upon the	121
issuance of a certificate, the state historic preservation officer	122
or designee shall certify to the tax commissioner, in the form and	123
manner requested by the tax commissioner, the name of the	124
applicant, the amount of qualified rehabilitation expenditures	125
shown on the certificate, the registration number of the	126
certificate, and any other information required by the tax	127
commissioner.	128

(D) The state historic preservation officer may fix and	129
collect a reasonable fee payable at the time an application for a	130
rehabilitation tax credit certificate is filed. Proceeds from the	131
fee shall be used exclusively to defray the expenses incurred by	132
the historic preservation office in administering this section.	133

(E) The owner or qualified lessee to which a rehabilitation	134
tax credit certificate is issued under this section or any other	135
certificate owner may assign the certificate or a certificate	136
share to any other person, including to a mortgagee under a loan	137
agreement secured by the building that is the subject of the	138
certificate, for such consideration as is mutually agreeable. Each	139
assignment shall be evidenced by a written agreement indicating	140
the identity of the assignor and assignee, the certificate's	141
registration number, the dollar amount of qualified rehabilitation	142
expenditures assigned, and any other information the tax	143
commissioner may prescribe by rule. Upon assignment of a	144
certificate or a certificate share, the assignee shall register	145
with the tax commissioner as a certificate owner. Tax credits may	146
not be claimed under section 5725.151, 5727.40, 5733.47, or	147
5747.76 of the Revised Code by any person who is not a certificate	148
owner. The amount of qualified rehabilitation expenditures for	149
which a certificate owner may claim a tax credit shall not exceed	150
the dollar amount of the certificate or certificate share owned by	151
the certificate owner as indicated in the tax commissioner's	152
register and not assigned to an assignee.	153

Rehabilitation tax credit certificates and certificate	154
shares, the assignment thereof, and any income or gain arising	155
from assignment thereof are not subject to taxation by or within	156
this state.	157

Sec. 5725.151.  (A) As used in this section, "qualified	158
rehabilitation expenditures," "certificate owner," and	159
"certificate share" have the same meanings as in section 149.311	160
of the Revised Code.	161

(B) There is hereby allowed a nonrefundable credit against	162
the tax imposed and assessed under sections 5707.03 and 5725.15 of	163
the Revised Code for a dealer in intangibles subject to that tax	164
that is a certificate owner of a rehabilitation tax credit	165
certificate issued under section 149.311 of the Revised Code or of	166
a certificate share. The credit shall equal twenty-five per cent	167
of the dollar amount of the certificate or certificate share owned	168
by the dealer as indicated in the tax commissioner's register	169
maintained under section 5733.47 of the Revised Code. If the	170
amount of the credit exceeds the amount of tax otherwise due for	171
any year, the excess may be carried forward and applied to the tax	172
due for a following year until the full amount of the credit has	173
been applied. The credit may be claimed for return years beginning	174
on or after January 1, 2006.	175

A dealer in intangibles claiming a credit under this section	176
shall retain the certificate and, if the dealer is the assignee of	177
a certificate or certificate share, the written assignment	178
agreement, for four years following the end of the last year in	179
which the credit, including any carried-forward amount, is	180
applied, and shall make the certificate or agreement available for	181
inspection by the tax commissioner upon the request of the tax	182
commissioner during that period.	183

(C) For the purpose of division (C) of section 5725.24 of the	184
Revised Code, reductions in the amount of taxes collected on	185
account of credits allowed under this section shall be applied to	186
reduce the amount credited to the general revenue fund and shall	187
not be applied to reduce the amount to be credited to the	188
undivided local government funds of the counties in which such	189
taxes originate.	190

Sec. 5725.24. (A) As used in this section, "qualifying	191
dealer" means a dealer in intangibles that is a qualifying dealer	192
in intangibles as defined in section 5733.45 of the Revised Code	193
or a member of a qualifying controlled group, as defined in	194
section 5733.04 of the Revised Code, of which an insurance company	195
also is a member on the first day of January of the year in and	196
for which the tax imposed by section 5707.03 of the Revised Code	197
is required to be paid by the dealer.	198

(B) The taxes levied by section 5725.18 of the Revised Code	199
and collected pursuant to this chapter shall be paid into the	200
state treasury to the credit of the general revenue fund.	201

(C) The taxes levied by section 5707.03 of the Revised Code	202
on the value of shares in and capital employed by dealers in	203
intangibles other than those that are qualifying dealers shall be	204
for the use of the general revenue fund of the state and the local	205
government funds of the several counties in which the taxes	206
originate as provided in this division.	207

On or before the first day of each month on which there is	208
money in the state treasury for disbursement under this division,	209
the tax commissioner shall provide for payment to the county	210
treasurer of each county of five-eighths of the amount of the	211
taxes collected on account of shares in and capital employed by	212
dealers in intangibles other than those that are qualifying	213
dealers, representing capital employed in the county. The balance	214
of the money received and credited on account of taxes assessed on	215
shares in and capital employed by such dealers in intangibles	216
shall be credited to the general revenue fund.	217

Reductions in the amount of taxes collected on account of	218
credits allowed under section 5725.151 of the Revised Code shall	219
be applied to reduce the amount credited to the general revenue	220
fund and shall not be applied to reduce the amount to be credited	221
to the undivided local government funds of the counties in which	222
such taxes originate.	223

For the purpose of this division, such taxes are deemed to	224
originate in the counties in which such dealers in intangibles	225
have their offices.	226

Money received into the treasury of a county pursuant to this	227
section shall be credited to the undivided local government fund	228
of the county and shall be distributed by the budget commission as	229
provided by law.	230

(D) All of the taxes levied under section 5707.03 of the	231
Revised Code on the value of the shares in and capital employed by	232
dealers in intangibles that are qualifying dealers shall be paid	233
into the state treasury to the credit of the general revenue fund.	234

Sec. 5727.40.  (A) As used in this section, "qualified	235
rehabilitation expenditures," "certificate owner," and	236
"certificate share" have the same meanings as in section 149.311	237
of the Revised Code.	238

(B) There is hereby allowed a nonrefundable credit against	239
the tax imposed and assessed under sections 5727.30 and 5727.38 of	240
the Revised Code for a public utility subject to that tax that is	241
the certificate owner of a rehabilitation tax credit certificate	242
issued under section 149.311 of the Revised Code or of a	243
certificate share. The credit shall equal twenty-five per cent of	244
the amount of the dollar amount of the certificate or certificate	245
share owned by the public utility as indicated in the tax	246
commissioner's register maintained under section 5733.47 of the	247
Revised Code. If the amount of the credit exceeds the amount of	248
tax otherwise due for any year, the excess may be carried forward	249
and applied to the tax due for a following year until the full	250
amount of the credit has been applied. The credit may be claimed	251
on or after January 1, 2006.	252

A public utility claiming a credit under this section shall	253
retain the certificate and, if the public utility is the assignee	254
of a certificate or certificate share, the written assignment	255
agreement, for four years following the end of the last year in	256
which the credit, including any carried-forward amount, is	257
applied, and shall make the certificate or agreement available for	258
inspection by the tax commissioner upon the request of the tax	259
commissioner during that period.	260

Sec. 5733.47. (A) As used in this section, "qualified	261
rehabilitation expenditures," "certificate owner," and	262
"certificate share" have the same meanings as in section 149.311	263
of the Revised Code.	264

(B) For the purpose of this section and sections 5725.151 and	265
5747.76 of the Revised Code, the tax commissioner shall compile	266
and maintain a register of rehabilitation tax credit certificates	267
issued under section 149.311 of the Revised Code and of	268
certificate shares. The register shall record, according to the	269
registration number of each certificate issued, the name of the	270
person to which the certificate is issued, the amount of qualified	271
rehabilitation expenditures the person claims to have paid or	272
incurred, the name of any assignee of the certificate or a	273
certificate share registered with the tax commissioner, and the	274
amount of such expenditures assigned to any such assignee.	275

(C) There is hereby allowed a nonrefundable credit against	276
the tax imposed under section 5733.06 of the Revised Code for a	277
taxpayer that is a certificate owner of a rehabilitation tax	278
credit certificate or certificate share. The credit equals	279
twenty-five per cent of the dollar amount of the certificate or	280
certificate share owned by the taxpayer as indicated in the tax	281
commissioner's register maintained under this section. The credit	282
shall be claimed in the order prescribed in section 5733.98 of the	283
Revised Code. If the amount of the credit exceeds the amount of	284
tax otherwise due under section 5733.06 of the Revised Code after	285
deducting any other credits preceding the credit allowed by this	286
section in that order, the excess may be carried forward and	287
deducted from the tax otherwise due for subsequent tax years until	288
the credit has been fully applied.	289

Credits allowed under this section may be claimed beginning	290
with tax year 2006.	291

A taxpayer claiming a credit under this section shall retain	292
the certificate and, if the taxpayer is the assignee of a	293
certificate or certificate share, the written assignment	294
agreement, for four years following the end of the last tax year	295
to which the credit, including any carried-forward amount, is	296
applied, and shall make the certificate or agreement available for	297
inspection by the tax commissioner upon the request of the tax	298
commissioner during that period.	299

Sec. 5733.98.  (A) To provide a uniform procedure for	300
calculating the amount of tax imposed by section 5733.06 of the	301
Revised Code that is due under this chapter, a taxpayer shall	302
claim any credits to which it is entitled in the following order,	303
except as otherwise provided in section 5733.058 of the Revised	304
Code:	305

(1) The credit for taxes paid by a qualifying pass-through	306
entity allowed under section 5733.0611 of the Revised Code;	307

(2) The credit allowed for financial institutions under	308
section 5733.45 of the Revised Code;	309

(3) The credit for qualifying affiliated groups under section	310
5733.068 of the Revised Code;	311

(4) The subsidiary corporation credit under section 5733.067	312
of the Revised Code;	313

(5) The savings and loan assessment credit under section	314
5733.063 of the Revised Code;	315

(6) The credit for recycling and litter prevention donations	316
under section 5733.064 of the Revised Code;	317

(7) The credit for employers that enter into agreements with	318
child day-care centers under section 5733.36 of the Revised Code;	319

(8) The credit for employers that reimburse employee child	320
day-care expenses under section 5733.38 of the Revised Code;	321

(9) The credit for maintaining railroad active grade crossing	322
warning devices under section 5733.43 of the Revised Code;	323

(10) The credit for purchases of lights and reflectors under	324
section 5733.44 of the Revised Code;	325

(11) The job retention credit under division (B) of section	326
5733.0610 of the Revised Code;	327

(12) The credit for losses on loans made under the Ohio	328
venture capital program under sections 150.01 to 150.10 of the	329
Revised Code if the taxpayer elected a nonrefundable credit under	330
section 150.07 of the Revised Code;	331

(13) The credit for purchases of new manufacturing machinery	332
and equipment under section 5733.31 or section 5733.311 of the	333
Revised Code;	334

(14) The second credit for purchases of new manufacturing	335
machinery and equipment under section 5733.33 of the Revised Code;	336

(15) The job training credit under section 5733.42 of the	337
Revised Code;	338

(16) The credit for qualified research expenses under section	339
5733.351 of the Revised Code;	340

(17) The enterprise zone credit under section 5709.66 of the	341
Revised Code;	342

(18) The credit for the eligible costs associated with a	343
voluntary action under section 5733.34 of the Revised Code;	344

(19) The credit for employers that establish on-site child	345
day-care under section 5733.37 of the Revised Code;	346

(20) The ethanol plant investment credit under section	347
5733.46 of the Revised Code;	348

(21) The credit for purchases of qualifying grape production	349
property under section 5733.32 of the Revised Code;	350

(22) The export sales credit under section 5733.069 of the	351
Revised Code;	352

(23) The credit for research and development and technology	353
transfer investors under section 5733.35 of the Revised Code;	354

(24) The enterprise zone credits under section 5709.65 of the	355
Revised Code;	356

(25) The credit for using Ohio coal under section 5733.39 of	357
the Revised Code;	358

(26) The research and development credit under section	359
5733.352 of the Revised Code;	360

(27) The credit for small telephone companies under section	361
5733.57 of the Revised Code;	362

(27)(28) The credit for eligible nonrecurring 9-1-1 charges	363
under section 5733.55 of the Revised Code;	364

(28)(29) The credit for providing programs to aid the	365
communicatively impaired under section 5733.56 of the Revised	366
Code;	367

(29)(30) The credit for rehabilitating historic buildings	368
under section 5733.47 of the Revised Code;	369

(31) The refundable jobs creation credit under division (A)	370
of section 5733.0610 of the Revised Code;	371

(28)(30)(32) The refundable credit for tax withheld under	372
division (B)(2) of section 5747.062 of the Revised Code;	373

(29)(31)(33) The credit for losses on loans made to the Ohio	374
venture capital program under sections 150.01 to 150.10 of the	375
Revised Code if the taxpayer elected a refundable credit under	376
section 150.07 of the Revised Code.	377

(B) For any credit except the credits enumerated in divisions	378
(A)(29), (30),, and (29) (31), (32), and (33) of this section, the	379
amount of the credit for a tax year shall not exceed the tax due	380
after allowing for any other credit that precedes it in the order	381
required under this section. Any excess amount of a particular	382
credit may be carried forward if authorized under the section	383
creating that credit.	384

Sec. 5747.08.  An annual return with respect to the tax	385
imposed by section 5747.02 of the Revised Code and each tax	386
imposed under Chapter 5748. of the Revised Code shall be made by	387
every taxpayer for any taxable year for which the taxpayer is	388
liable for the tax imposed by that section or under that chapter,	389
unless the total credits allowed under divisions (E), (F), and (G)	390
of section 5747.05 of the Revised Code for the year are equal to	391
or exceed the tax imposed by section 5747.02 of the Revised Code,	392
in which case no return shall be required unless the taxpayer is	393
liable for a tax imposed pursuant to Chapter 5748. of the Revised	394
Code.	395

(A) If an individual is deceased, any return or notice	396
required of that individual under this chapter shall be made and	397
filed by that decedent's executor, administrator, or other person	398
charged with the property of that decedent.	399

(B) If an individual is unable to make a return or notice	400
required by this chapter, the return or notice required of that	401
individual shall be made and filed by the individual's duly	402
authorized agent, guardian, conservator, fiduciary, or other	403
person charged with the care of the person or property of that	404
individual.	405

(C) Returns or notices required of an estate or a trust shall	406
be made and filed by the fiduciary of the estate or trust.	407

(D)(1)(a) Except as otherwise provided in division (D)(1)(b)	408
of this section, any pass-through entity may file a single return	409
on behalf of one or more of the entity's investors other than an	410
investor that is a person subject to the tax imposed under section	411
5733.06 of the Revised Code. The single return shall set forth the	412
name, address, and social security number or other identifying	413
number of each of those pass-through entity investors and shall	414
indicate the distributive share of each of those pass-through	415
entity investor's income taxable in this state in accordance with	416
sections 5747.20 to 5747.231 of the Revised Code. Such	417
pass-through entity investors for whom the pass-through entity	418
elects to file a single return are not entitled to the exemption	419
or credit provided for by sections 5747.02 and 5747.022 of the	420
Revised Code; shall calculate the tax before business credits at	421
the highest rate of tax set forth in section 5747.02 of the	422
Revised Code for the taxable year for which the return is filed;	423
and are entitled to only their distributive share of the business	424
credits as defined in division (D)(2) of this section. A single	425
check drawn by the pass-through entity shall accompany the return	426
in full payment of the tax due, as shown on the single return, for	427
such investors, other than investors who are persons subject to	428
the tax imposed under section 5733.06 of the Revised Code.	429

(b)(i) A pass-through entity shall not include in such a	430
single return any investor that is a trust to the extent that any	431
direct or indirect current, future, or contingent beneficiary of	432
the trust is a person subject to the tax imposed under section	433
5733.06 of the Revised Code.	434

(ii) A pass-through entity shall not include in such a single	435
return any investor that is itself a pass-through entity to the	436
extent that any direct or indirect investor in the second	437
pass-through entity is a person subject to the tax imposed under	438
section 5733.06 of the Revised Code.	439

(c) Nothing in division (D) of this section precludes the tax	440
commissioner from requiring such investors to file the return and	441
make the payment of taxes and related interest, penalty, and	442
interest penalty required by this section or section 5747.02,	443
5747.09, or 5747.15 of the Revised Code. Nothing in division (D)	444
of this section shall be construed to provide to such an investor	445
or pass-through entity any additional deduction or credit, other	446
than the credit provided by division (J) of this section, solely	447
on account of the entity's filing a return in accordance with this	448
section. Such a pass-through entity also shall make the filing and	449
payment of estimated taxes on behalf of the pass-through entity	450
investors other than an investor that is a person subject to the	451
tax imposed under section 5733.06 of the Revised Code.	452

(2) For the purposes of this section, "business credits"	453
means the credits listed in section 5747.98 of the Revised Code	454
excluding the following credits:	455

(a) The retirement credit under division (B) of section	456
5747.055 of the Revised Code;	457

(b) The senior citizen credit under division (C) of section	458
5747.05 of the Revised Code;	459

(c) The lump sum distribution credit under division (D) of	460
section 5747.05 of the Revised Code;	461

(d) The dependent care credit under section 5747.054 of the	462
Revised Code;	463

(e) The lump sum retirement income credit under division (C)	464
of section 5747.055 of the Revised Code;	465

(f) The lump sum retirement income credit under division (D)	466
of section 5747.055 of the Revised Code;	467

(g) The lump sum retirement income credit under division (E)	468
of section 5747.055 of the Revised Code;	469

(h) The credit for displaced workers who pay for job training	470
under section 5747.27 of the Revised Code;	471

(i) The twenty-dollar personal exemption credit under section	472
5747.022 of the Revised Code;	473

(j) The joint filing credit under division (G) of section	474
5747.05 of the Revised Code;	475

(k) The nonresident credit under division (A) of section	476
5747.05 of the Revised Code;	477

(l) The credit for a resident's out-of-state income under	478
division (B) of section 5747.05 of the Revised Code;	479

(m) The credit for rehabilitating historic buildings under	480
section 5747.76 of the Revised Code if the historic building is	481
not income-producing property.	482

(3) The election provided for under division (D) of this	483
section applies only to the taxable year for which the election is	484
made by the pass-through entity. Unless the tax commissioner	485
provides otherwise, this election, once made, is binding and	486
irrevocable for the taxable year for which the election is made.	487
Nothing in this division shall be construed to provide for any	488
deduction or credit that would not be allowable if a nonresident	489
pass-through entity investor were to file an annual return.	490

(4) If a pass-through entity makes the election provided for	491
under division (D) of this section, the pass-through entity shall	492
be liable for any additional taxes, interest, interest penalty, or	493
penalties imposed by this chapter if the commissioner finds that	494
the single return does not reflect the correct tax due by the	495
pass-through entity investors covered by that return. Nothing in	496
this division shall be construed to limit or alter the liability,	497
if any, imposed on pass-through entity investors for unpaid or	498
underpaid taxes, interest, interest penalty, or penalties as a	499
result of the pass-through entity's making the election provided	500
for under division (D) of this section. For the purposes of	501
division (D) of this section, "correct tax due" means the tax that	502
would have been paid by the pass-through entity had the single	503
return been filed in a manner reflecting the commissioner's	504
findings. Nothing in division (D) of this section shall be	505
construed to make or hold a pass-through entity liable for tax	506
attributable to a pass-through entity investor's income from a	507
source other than the pass-through entity electing to file the	508
single return.	509

(E) If a husband and wife file a joint federal income tax	510
return for a taxable year, they shall file a joint return under	511
this section for that taxable year, and their liabilities are	512
joint and several, but, if the federal income tax liability of	513
either spouse is determined on a separate federal income tax	514
return, they shall file separate returns under this section.	515

If either spouse is not required to file a federal income tax	516
return and either or both are required to file a return pursuant	517
to this chapter, they may elect to file separate or joint returns,	518
and, pursuant to that election, their liabilities are separate or	519
joint and several. If a husband and wife file separate returns	520
pursuant to this chapter, each must claim the taxpayer's own	521
exemption, but not both, as authorized under section 5747.02 of	522
the Revised Code on the taxpayer's own return.	523

(F) Each return or notice required to be filed under this	524
section shall contain the signature of the taxpayer or the	525
taxpayer's duly authorized agent and of the person who prepared	526
the return for the taxpayer, and shall include the taxpayer's	527
social security number. Each return shall be verified by a	528
declaration under the penalties of perjury. The tax commissioner	529
shall prescribe the form that the signature and declaration shall	530
take.	531

(G) Each return or notice required to be filed under this	532
section shall be made and filed as required by section 5747.04 of	533
the Revised Code, on or before the fifteenth day of April of each	534
year, on forms that the tax commissioner shall prescribe, together	535
with remittance made payable to the treasurer of state in the	536
combined amount of the state and all school district income taxes	537
shown to be due on the form, unless the combined amount shown to	538
be due is one dollar or less, in which case that amount need not	539
be remitted.	540

Upon good cause shown, the commissioner may extend the period	541
for filing any notice or return required to be filed under this	542
section and may adopt rules relating to extensions. If the	543
extension results in an extension of time for the payment of any	544
state or school district income tax liability with respect to	545
which the return is filed, the taxpayer shall pay at the time the	546
tax liability is paid an amount of interest computed at the rate	547
per annum prescribed by section 5703.47 of the Revised Code on	548
that liability from the time that payment is due without extension	549
to the time of actual payment. Except as provided in section	550
5747.132 of the Revised Code, in addition to all other interest	551
charges and penalties, all taxes imposed under this chapter or	552
Chapter 5748. of the Revised Code and remaining unpaid after they	553
become due, except combined amounts due of one dollar or less,	554
bear interest at the rate per annum prescribed by section 5703.47	555
of the Revised Code until paid or until the day an assessment is	556
issued under section 5747.13 of the Revised Code, whichever occurs	557
first.	558

If the commissioner considers it necessary in order to ensure	559
the payment of the tax imposed by section 5747.02 of the Revised	560
Code or any tax imposed under Chapter 5748. of the Revised Code,	561
the commissioner may require returns and payments to be made	562
otherwise than as provided in this section.	563

(H) If any report, claim, statement, or other document	564
required to be filed, or any payment required to be made, within a	565
prescribed period or on or before a prescribed date under this	566
chapter is delivered after that period or that date by United	567
States mail to the agency, officer, or office with which the	568
report, claim, statement, or other document is required to be	569
filed, or to which the payment is required to be made, the date of	570
the postmark stamped on the cover in which the report, claim,	571
statement, or other document, or payment is mailed shall be deemed	572
to be the date of delivery or the date of payment.	573

If a payment is required to be made by electronic funds	574
transfer pursuant to section 5747.072 of the Revised Code, the	575
payment is considered to be made when the payment is received by	576
the treasurer of state or credited to an account designated by the	577
treasurer of state for the receipt of tax payments.	578

"The date of the postmark" means, in the event there is more	579
than one date on the cover, the earliest date imprinted on the	580
cover by the United States postal service.	581

(I) The amounts withheld by the employer pursuant to section	582
5747.06 of the Revised Code shall be allowed to the recipient of	583
the compensation as credits against payment of the appropriate	584
taxes imposed on the recipient by section 5747.02 and under	585
Chapter 5748. of the Revised Code.	586

(J) If, in accordance with division (D) of this section, a	587
pass-through entity elects to file a single return and if any	588
investor is required to file the return and make the payment of	589
taxes required by this chapter on account of the investor's other	590
income that is not included in a single return filed by a	591
pass-through entity, the investor is entitled to a refundable	592
credit equal to the investor's proportionate share of the tax paid	593
by the pass-through entity on behalf of the investor. The investor	594
shall claim the credit for the investor's taxable year in which or	595
with which ends the taxable year of the pass-through entity.	596
Nothing in this chapter shall be construed to allow any credit	597
provided in this chapter to be claimed more than once. For the	598
purposes of computing any interest, penalty, or interest penalty,	599
the investor shall be deemed to have paid the refundable credit	600
provided by this division on the day that the pass-through entity	601
paid the estimated tax or the tax giving rise to the credit.	602

Sec. 5747.76. As used in this section, "qualified	603
rehabilitation expenditures," "certificate owner," and	604
"certificate share" have the same meanings as in section 149.311	605
of the Revised Code.	606

There is hereby allowed a nonrefundable credit against the	607
tax imposed under section 5747.02 of the Revised Code for a	608
taxpayer that is the certificate owner of a rehabilitation tax	609
credit certificate issued under section 149.311 of the Revised	610
Code or of a certificate share. The credit equals twenty-five per	611
cent of the dollar amount of the certificate or certificate share	612
owned by the taxpayer as indicated in the tax commissioner's	613
register maintained under section 5733.47 of the Revised Code. The	614
credit shall be claimed in the order prescribed in section 5747.98	615
of the Revised Code. If the amount of the credit exceeds the	616
amount of tax otherwise due under section 5747.02 of the Revised	617
Code after deducting any other credits preceding the credit	618
allowed by this section in that order, the excess may be carried	619
forward and deducted from the tax otherwise due for subsequent	620
taxable years until the credit has been fully applied.	621

Nothing in this section limits or disallows pass-through	622
treatment of the credit if the certificate owner is a pass-through	623
entity.	624

The credit may be claimed for taxable years beginning on or	625
after January 1, 2006.	626

A taxpayer claiming a credit under this section shall retain	627
the certificate and, if the taxpayer is the assignee of a	628
certificate or certificate share, the written assignment	629
agreement, for four years following the end of the last taxable	630
year to which the credit, including any carried-forward amount, is	631
applied, and shall make the certificate or agreement available for	632
inspection by the tax commissioner upon the request of the tax	633
commissioner during that period.	634

Sec. 5747.98.  (A) To provide a uniform procedure for	635
calculating the amount of tax due under section 5747.02 of the	636
Revised Code, a taxpayer shall claim any credits to which the	637
taxpayer is entitled in the following order:	638

(1) The retirement income credit under division (B) of	639
section 5747.055 of the Revised Code;	640

(2) The senior citizen credit under division (C) of section	641
5747.05 of the Revised Code;	642

(3) The lump sum distribution credit under division (D) of	643
section 5747.05 of the Revised Code;	644

(4) The dependent care credit under section 5747.054 of the	645
Revised Code;	646

(5) The lump sum retirement income credit under division (C)	647
of section 5747.055 of the Revised Code;	648

(6) The lump sum retirement income credit under division (D)	649
of section 5747.055 of the Revised Code;	650

(7) The lump sum retirement income credit under division (E)	651
of section 5747.055 of the Revised Code;	652

(8) The credit for displaced workers who pay for job training	653
under section 5747.27 of the Revised Code;	654

(9) The campaign contribution credit under section 5747.29 of	655
the Revised Code;	656

(10) The twenty-dollar personal exemption credit under	657
section 5747.022 of the Revised Code;	658

(11) The joint filing credit under division (G) of section	659
5747.05 of the Revised Code;	660

(12) The nonresident credit under division (A) of section	661
5747.05 of the Revised Code;	662

(13) The credit for a resident's out-of-state income under	663
division (B) of section 5747.05 of the Revised Code;	664

(14) The credit for employers that enter into agreements with	665
child day-care centers under section 5747.34 of the Revised Code;	666

(15) The credit for employers that reimburse employee child	667
day-care expenses under section 5747.36 of the Revised Code;	668

(16) The credit for adoption of a minor child under section	669
5747.37 of the Revised Code;	670

(17) The credit for purchases of lights and reflectors under	671
section 5747.38 of the Revised Code;	672

(18) The job retention credit under division (B) of section	673
5747.058 of the Revised Code;	674

(19) The credit for losses on loans made under the Ohio	675
venture capital program under sections 150.01 to 150.10 of the	676
Revised Code if the taxpayer elected a nonrefundable credit under	677
section 150.07 of the Revised Code;	678

(20) The credit for purchases of new manufacturing machinery	679
and equipment under section 5747.26 or section 5747.261 of the	680
Revised Code;	681

(21) The second credit for purchases of new manufacturing	682
machinery and equipment and the credit for using Ohio coal under	683
section 5747.31 of the Revised Code;	684

(22) The job training credit under section 5747.39 of the	685
Revised Code;	686

(23) The enterprise zone credit under section 5709.66 of the	687
Revised Code;	688

(24) The credit for the eligible costs associated with a	689
voluntary action under section 5747.32 of the Revised Code;	690

(25) The credit for employers that establish on-site child	691
day-care centers under section 5747.35 of the Revised Code;	692

(26) The ethanol plant investment credit under section	693
5747.75 of the Revised Code;	694

(27) The credit for purchases of qualifying grape production	695
property under section 5747.28 of the Revised Code;	696

(28) The export sales credit under section 5747.057 of the	697
Revised Code;	698

(29) The credit for research and development and technology	699
transfer investors under section 5747.33 of the Revised Code;	700

(30) The enterprise zone credits under section 5709.65 of the	701
Revised Code;	702

(31) The research and development credit under section	703
5747.331 of the Revised Code;	704

(32) The credit for rehabilitating historic buildings under	705
section 5747.76 of the Revised Code;	706

(33) The refundable jobs creation credit under division (A)	707
of section 5747.058 of the Revised Code;	708

(33)(34) The refundable credit for taxes paid by a qualifying	709
entity granted under section 5747.059 of the Revised Code;	710

(34)(35) The refundable credits for taxes paid by a	711
qualifying pass-through entity granted under division (J) of	712
section 5747.08 of the Revised Code;	713

(35)(36) The refundable credit for tax withheld under	714
division (B)(1) of section 5747.062 of the Revised Code;	715

(36)(37) The credit for losses on loans made to the Ohio	716
venture capital program under sections 150.01 to 150.10 of the	717
Revised Code if the taxpayer elected a refundable credit under	718
section 150.07 of the Revised Code.	719

(B) For any credit, except the credits enumerated in	720
divisions (A)(32)(33) to (36)(37) of this section and the credit	721
granted under division (I) of section 5747.08 of the Revised Code,	722
the amount of the credit for a taxable year shall not exceed the	723
tax due after allowing for any other credit that precedes it in	724
the order required under this section. Any excess amount of a	725
particular credit may be carried forward if authorized under the	726
section creating that credit. Nothing in this chapter shall be	727
construed to allow a taxpayer to claim, directly or indirectly, a	728
credit more than once for a taxable year.	729

Section 2. That existing sections 5725.24, 5733.98, 5747.08,	730
and 5747.98 of the Revised Code are hereby repealed.	731

Section 3.  Applications to the State Historic Preservation	732
Officer for a rehabilitation tax credit certificate under section	733
149.311 of the Revised Code may be filed on or after the later of	734
July 1, 2005, or the first day of the seventh month after the	735
month in which this act takes effect.	736

Section 4.  Section 5733.98 of the Revised Code is presented	737
in this act as a composite of the section as amended by both Am.	738
Sub. H.B. 1 and Am. Sub. H.B. 95 of the 125th General Assembly.	739
The General Assembly, applying the principle stated in division	740
(B) of section 1.52 of the Revised Code that amendments are to be	741
harmonized if reasonably capable of simultaneous operation, finds	742
that the composite is the resulting version of the section in	743
effect prior to the effective date of the section as presented in	744
this act.	745