To amend section 5747.98 and to enact sections 3333.51 and 5747.81 of the Revised Code to grant an income tax credit to individuals who earn degrees in certain science and technology-based fields of study.

Section 1. That section 5747.98 be amended and sections 3333.51 and 5747.81 of the Revised Code be enacted to read as follows:

Sec. 3333.51. (A) As used in this section:

(1) "Approved field of study" means a field of study in engineering, the natural sciences, or mathematics that the Ohio board of regents determines is associated with job creation and retention in Ohio.

(2) "Institution of higher education" means all of the following:

(a) An institution of higher education, as defined in section 3345.12 of the Revised Code;

(b) An institution authorized by the Ohio board of regents under Chapter 1713. of the Revised Code to grant degrees and that is accredited by the appropriate regional, and when appropriate, professional accrediting associations within whose jurisdiction it falls;

(c) Private career schools holding program authorizations issued by the state board of career colleges and schools under division (C) of section 3332.05 of the Revised Code;

(d) Private institutions exempt from regulation under Chapter 3332. of the Revised Code as prescribed in section 3333.046 of the Revised Code;

(e) Institutions similar to those described in divisions (A)(2)(a) to (d) of this section that are located outside Ohio and that the Ohio board of regents determines qualify as "institutions of higher education" for purposes of this section.

(B)(1) For the purpose of encouraging students to accept employment in Ohio following graduation from an institution of higher education with a degree in an approved field of study, the Ohio board of regents, or an entity designated by the board under division (F) of this section, may authorize any such individual who graduates on or after the effective date of this section to claim a nonrefundable tax credit against the tax imposed by section 5747.02 of the Revised Code. Except as provided in division (E) of this section, the total amount of the credit shall depend upon the specific type of degree earned by the individual as follows:

(a) In the case of a baccalaureate degree, the total amount of the credit shall equal twenty thousand dollars;

(b) In the case of a master's degree or doctoral degree, the total amount of the credit shall equal thirty thousand dollars;

(c) In the case of an associate degree, the total amount of the credit shall equal five thousand dollars.

(2) Unless an individual is subject to division (B)(3) of this section or obtains a credit deferment pursuant to division (E)(2) of this section, an individual who is approved for a credit under this section shall claim one-tenth of the total credit amount for the taxable year during which the individual receives approval for the credit from the Ohio board of regents or the board's designee and shall claim one-tenth of the total credit amount for each of the succeeding nine taxable years. If the individual is subject to division (B)(3) of this section, the individual shall claim one-tenth of the total credit amount for the taxable year during which the individual receives approval for the credit from the Ohio board of regents or the board's designee and shall claim one-tenth of the total credit amount in each succeeding taxable year up to and including the taxable year during which the individual reaches the applicable age limitation specified in division (B)(3) of this section for that individual.

(3) The Ohio board of regents shall not authorize any individual to claim a tax credit for a degree in an approved field of study for any taxable year after the taxable year that includes the date on which the individual attains:

(a) Thirty-three years of age in the case of a tax credit granted with respect to an associate degree, baccalaureate degree, or master's degree; and

(b) Thirty-five years of age in the case of a tax credit granted with respect to a doctoral degree.

Division (B)(3) of this section applies notwithstanding any credit deferment granted to an individual pursuant to division (E)(2) of this section.

(C) To obtain the tax credit authorized under this section, an individual shall submit an application to the Ohio board of regents, or to any entity designated by the board under division (F) of this section to receive and review applications, that demonstrates that the individual graduated from an institution of higher education with a degree in an approved field of study and that includes any other information required by the Ohio board of regents.

(D) After reviewing an application submitted under division (C) of this section, the Ohio board of regents or the board's designee shall issue a tax credit certificate to an applicant who qualifies for a credit under this section. The certificate shall state the total amount of the credit, the taxable years for which the credit may be claimed, and the maximum amount of credit that may be claimed for each taxable year, without regard to any credit carry forward allowed under section 5747.81 of the Revised Code.

(E)(1) An individual who is issued a tax credit certificate under this section may be issued additional certificates in the future for additional degrees in approved fields of study granted to the individual by institutions of higher education, provided that an individual who is issued a tax credit certificate for a master's degree or doctoral degree may not be issued additional certificates for any additional degrees earned by the individual.

(2) An individual who is issued a tax credit certificate under this section and who, during the term of the credit, enrolls full time in an institution of higher education for the purpose of pursuing an additional degree in an approved field of study may elect to defer the claiming of the credit for the taxable years during any portion of which the individual is enrolled full time. An individual who elects to defer a tax credit shall apply to the Ohio board of regents or the board's designee for a deferral in the form and manner prescribed by the board.

(3) In the case of an individual who obtains an additional degree in an approved field of study, the total amount of credit granted to the individual with respect to every preceding degree shall be deducted from the total credit amount specified in division (B) of this section for degrees of the type of the additional degree. The remainder is the total amount of credit authorized with respect to the additional degree. The total amount of credits authorized for any individual under this section with respect to all degrees earned by that individual shall not exceed thirty thousand dollars.

(4) Subject to division (B)(3) of this section, an individual who is authorized to claim a credit for an additional degree in an approved field of study shall claim one-tenth of the total credit amount authorized with respect to the additional degree for the taxable year during which the individual receives approval for the additional credit from the Ohio board of regents or the board's designee and shall claim one-tenth of the total credit amount for each of the succeeding nine taxable years. The total amount of credit that may be claimed by an individual for any taxable year for all degrees earned by that individual shall not exceed three thousand dollars, unless the individual has a credit carry forward under section 5747.81 of the Revised Code.

(5) Regardless of whether or not an individual obtained a deferment under division (E)(2) of this section, to apply for a credit with respect to an additional degree in an approved field of study and to request that such credit be added to the total amount remaining with respect to a tax credit previously granted under this section, an individual shall file an application in accordance with division (C) of this section. The Ohio board of regents or the board's designee shall issue an amended tax credit certificate to an individual who qualifies for the additional credit. The amended certificate shall state the total amount of the credit after the new credit is added to any pre-existing credit, the taxable years for which the credit may be claimed, and the maximum amount of credit that may be claimed for each of those taxable years, without regard to any credit carry forward allowed under section 5747.81 of the Revised Code.

(F) The Ohio board of regents may designate an entity, including, but not limited to, a nonprofit private organization, to perform the duties conferred upon the board by this section. An entity designated by the board shall perform those duties in accordance with the requirements of this section and rules adopted by the board pursuant to division (G) of this section.

(G) The Ohio board of regents, under Chapter 119. of the Revised Code, shall adopt rules necessary to implement and administer this section, including rules:

(1) Identifying fields of study that constitute "approved fields of study";

(2) Specifying information to be included on applications for a tax credit under division (C) of this section, for applications for deferral of a tax credit under division (E)(2) of this section, and applications for addition of a new credit to a pre-existing credit under division (E)(5) of this section; and

(3) Identifying institutions located outside Ohio that constitute "institutions of higher education."

In identifying those fields of study that constitute "approved fields of study," the board shall give priority to those related to information technology, power and propulsion, advanced materials, instruments and controls, electronics, and biotechnology and biosciences.

Sec. 5747.81. Upon the issuance of a tax credit certificate under section 3333.51 of the Revised Code, a nonrefundable credit may be claimed against the tax imposed by section 5747.02 of the Revised Code. The credit shall be claimed for the taxable years specified in the certificate in the order required under section 5747.98 of the Revised Code. The amount of the credit for any taxable year, claimed in that order, shall not exceed the tax otherwise due under section 5747.02 of the Revised Code after all of the taxpayer's credits are deducted in that order. If the credit to which a taxpayer would otherwise be entitled under this section for any taxable year is greater than the tax otherwise due, after allowing for any other credits that precede the credit allowed under this section, the excess shall be allowed as a credit in each ensuing taxable year for which the taxpayer's tax credit certificate authorizes the taxpayer to claim a credit. The amount of any excess credit allowed in an ensuing taxable year shall be deducted from the balance carried forward to the next taxable year. No credit carry forward may be claimed under this section for any taxable year after the last taxable year for which the taxpayer is authorized to claim a credit under the certificate.

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 granted under sections 3333.51 and 5747.81 of the Revised Code for obtaining a degree in engineering, the natural sciences, or mathematics from an institution of higher education;

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

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

(22)(23) 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;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(B) For any credit, except the credits enumerated in divisions (A)(33) to (37)(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 section 5747.98 of the Revised Code is hereby repealed.