To amend sections 125.834, 1327.50, 1327.61, 5733.01, 5733.98, and 5747.98 and to enact sections 5733.47, 5747.76, and 5747.77 of the Revised Code to establish a biodiesel, blended biodiesel, and E85 blend fuel quality testing program; to establish renewable fuel usage requirements for fueling facilities owned or operated by the state; and to authorize tax credits against the corporation franchise and income taxes for the sale of E85 blend fuel, and against the income tax for the sale of renewable fuels.

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 1327.50.  The director of agriculture shall:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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