130th Ohio General Assembly
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S. B. No. 60  As Introduced
As Introduced

126th General Assembly
Regular Session
2005-2006
S. B. No. 60


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



A BILL
To amend sections 5725.24, 5733.98, 5747.08, and 5747.98 and to enact sections 149.311, 5725.151, 5727.40, 5733.47, and 5747.76 of the Revised Code to authorize nonrefundable, transferable tax credits for rehabilitating historic buildings.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5725.24, 5733.98, 5747.08, and 5747.98 be amended and sections 149.311, 5725.151, 5727.40, 5733.47, and 5747.76 of the Revised Code be amended to read as follows:
Sec. 149.311.  (A) As used in this section:
(1) "Historic building" means a building, including its structural components, that is located in this state and that is either individually listed on the national register of historic places under 16 U.S.C. 470a, located in a registered historic district, and certified by the state historic preservation officer as being of historic significance to the district or individually listed as a historic landmark designated by a local government certified under 16 U.S.C. 470a(c).
(2) "Qualified lessee" means a person occupying or otherwise holding a historic building under a lease with a term ending not earlier than five years after completion of the rehabilitation for which a rehabilitation tax credit certificate may be issued under this section, determined without regard to any renewal period of the lease.
(3) "Qualified rehabilitation expenditures" means expenditures paid or incurred during the rehabilitation period by an owner or qualified lessee of a historic building to rehabilitate the building. "Qualified rehabilitation expenditures" includes architectural or engineering fees paid or incurred in connection with the rehabilitation and expenses incurred in the preparation of nomination forms for listing on the national register of historic places. "Qualified rehabilitation expenditures" does not include the cost of acquiring a building or expenditures to expand or enlarge a historic building.
(4) "Owner" of a building means a person holding the fee simple interest in the building.
(5) "Certificate owner" means any of the following persons registered with the tax commissioner under section 5733.47 of the Revised Code as the owner of a rehabilitation tax credit certificate or certificate share:
(a) The owner or qualified lessee of a historic building to which the certificate was issued under this section and that has not assigned the certificate or all of the certificate shares to assignees;
(b) An assignee of a certificate or certificate share.
(6) "Certificate share" means a portion, less than one hundred per cent, of the dollar amount of qualifying rehabilitation expenditures for which a tax credit may be claimed under section 5725.151, 5727.40, 5733.47, or 5747.76 of the Revised Code corresponding with a rehabilitation tax credit certificate.
(7) "Registered historic district" means a historic district listed in the national register of historic places under 16 U.S.C. 470a, a historic district designated by a local government certified under 16 U.S.C. 470a(c), or a local historic district certified under 36 C.F.R. 67.8 and 67.9.
(8) "Rehabilitation" means the process of returning a building or buildings to a state of utility, through repair or alteration, making possible an efficient use while preserving those portions and features of the building and its site and environment that are significant to its historic, architectural, and cultural values.
(9) "Rehabilitation period" means one of the following:
(a) If the rehabilitation initially was not planned to be completed in stages, a period not to exceed twenty-four months beginning with the month in which physical rehabilitation work begins;
(b) If the rehabilitation initially was planned to be completed in stages, a period not to exceed sixty months beginning with the month in which physical rehabilitation work begins.
(10) "State historic preservation officer" or "officer" means the state historic preservation officer appointed by the governor under 16 U.S.C. 470a.
(B) The owner or qualified lessee of a historic building may apply to the state historic preservation officer for a rehabilitation tax credit certificate. The form and manner of filing such applications shall be prescribed by the state historic preservation officer or the officer's designee. The officer or the officer's designee shall accept and review such applications, and shall approve issuance of a rehabilitation tax credit certificate to an applicant if the officer or designee determines all of the following:
(1) That the building that is the subject of the application is a historic building;
(2) That the rehabilitation satisfies standards prescribed by the United States Secretary of the Interior under 16 U.S.C. 470, et seq., as amended, and 36 C.F.R. 67.7 or a successor to that section;
(3) That the expenditures to rehabilitate the building are qualified rehabilitation expenditures and are reported by the applicant to exceed the following:
(a) In the case of a historic building not intended to be held as income-producing property, five thousand dollars;
(b) In the case of a historic building intended to be held as income-producing property, the greater of five thousand dollars or the adjusted basis of the building as it would be determined under subparagraph (c)(1)(C) of section 47 of the Internal Revenue Code.
An applicant shall demonstrate to the satisfaction of the state historic preservation officer or the officer's designee that the rehabilitation satisfies the standards described in division (B)(2) of this section before the applicant begins physical rehabilitation work. A rehabilitation tax credit certificate for a historic building shall not be issued before rehabilitation of the building is completed.
(C) Rehabilitation tax credit certificates shall be in a form to be devised by the state historic preservation officer or designee with the advice of the tax commissioner, shall identify the applicant and the building that is the subject of the application, shall show the amount of the qualified rehabilitation expenditures the applicant claims to have paid or incurred, and shall bear a unique registration number. Issuance of a certificate represents a finding by the officer or the officer's designee of the matters described in divisions (B)(1), (2), and (3) of this section only; issuance of a certificate does not represent a verification or certification by the officer or the officer's designee of the amount of qualified rehabilitation expenditures for which a tax credit may be claimed. The amount of qualified rehabilitation expenditures for which a tax credit may be claimed is subject to inspection and examination by the tax commissioner or employees of the commissioner under section 5703.19 of the Revised Code and any other applicable provision of law. Upon the issuance of a certificate, the state historic preservation officer or designee shall certify to the tax commissioner, in the form and manner requested by the tax commissioner, the name of the applicant, the amount of qualified rehabilitation expenditures shown on the certificate, the registration number of the certificate, and any other information required by the tax commissioner.
(D) The state historic preservation officer may fix and collect a reasonable fee payable at the time an application for a rehabilitation tax credit certificate is filed. Proceeds from the fee shall be used exclusively to defray the expenses incurred by the historic preservation office in administering this section.
(E) The owner or qualified lessee to which a rehabilitation tax credit certificate is issued under this section or any other certificate owner may assign the certificate or a certificate share to any other person, including to a mortgagee under a loan agreement secured by the building that is the subject of the certificate, for such consideration as is mutually agreeable. Each assignment shall be evidenced by a written agreement indicating the identity of the assignor and assignee, the certificate's registration number, the dollar amount of qualified rehabilitation expenditures assigned, and any other information the tax commissioner may prescribe by rule. Upon assignment of a certificate or a certificate share, the assignee shall register with the tax commissioner as a certificate owner. Tax credits may not be claimed under section 5725.151, 5727.40, 5733.47, or 5747.76 of the Revised Code by any person who is not a certificate owner. The amount of qualified rehabilitation expenditures for which a certificate owner may claim a tax credit shall not exceed the dollar amount of the certificate or certificate share owned by the certificate owner as indicated in the tax commissioner's register and not assigned to an assignee.
Rehabilitation tax credit certificates and certificate shares, the assignment thereof, and any income or gain arising from assignment thereof are not subject to taxation by or within this state.
Sec. 5725.151.  (A) As used in this section, "qualified rehabilitation expenditures," "certificate owner," and "certificate share" have the same meanings as in section 149.311 of the Revised Code.
(B) There is hereby allowed a nonrefundable credit against the tax imposed and assessed under sections 5707.03 and 5725.15 of the Revised Code for a dealer in intangibles subject to that tax that is a certificate owner of a rehabilitation tax credit certificate issued under section 149.311 of the Revised Code or of a certificate share. The credit shall equal twenty-five per cent of the dollar amount of the certificate or certificate share owned by the dealer as indicated in the tax commissioner's register maintained under section 5733.47 of the Revised Code. If the amount of the credit exceeds the amount of tax otherwise due for any year, the excess may be carried forward and applied to the tax due for a following year until the full amount of the credit has been applied. The credit may be claimed for return years beginning on or after January 1, 2006.
A dealer in intangibles claiming a credit under this section shall retain the certificate and, if the dealer is the assignee of a certificate or certificate share, the written assignment agreement, for four years following the end of the last year in which the credit, including any carried-forward amount, is applied, and shall make the certificate or agreement available for inspection by the tax commissioner upon the request of the tax commissioner during that period.
(C) For the purpose of division (C) of section 5725.24 of the Revised Code, reductions in the amount of taxes collected on account of credits allowed under this section shall be applied to reduce the amount credited to the general revenue fund and shall not be applied to reduce the amount to be credited to the undivided local government funds of the counties in which such taxes originate.
Sec. 5725.24. (A) As used in this section, "qualifying dealer" means a dealer in intangibles that is a qualifying dealer in intangibles as defined in section 5733.45 of the Revised Code or a member of a qualifying controlled group, as defined in section 5733.04 of the Revised Code, of which an insurance company also is a member on the first day of January of the year in and for which the tax imposed by section 5707.03 of the Revised Code is required to be paid by the dealer.
(B) The taxes levied by section 5725.18 of the Revised Code and collected pursuant to this chapter shall be paid into the state treasury to the credit of the general revenue fund.
(C) The taxes levied by section 5707.03 of the Revised Code on the value of shares in and capital employed by dealers in intangibles other than those that are qualifying dealers shall be for the use of the general revenue fund of the state and the local government funds of the several counties in which the taxes originate as provided in this division.
On or before the first day of each month on which there is money in the state treasury for disbursement under this division, the tax commissioner shall provide for payment to the county treasurer of each county of five-eighths of the amount of the taxes collected on account of shares in and capital employed by dealers in intangibles other than those that are qualifying dealers, representing capital employed in the county. The balance of the money received and credited on account of taxes assessed on shares in and capital employed by such dealers in intangibles shall be credited to the general revenue fund.
Reductions in the amount of taxes collected on account of credits allowed under section 5725.151 of the Revised Code shall be applied to reduce the amount credited to the general revenue fund and shall not be applied to reduce the amount to be credited to the undivided local government funds of the counties in which such taxes originate.
For the purpose of this division, such taxes are deemed to originate in the counties in which such dealers in intangibles have their offices.
Money received into the treasury of a county pursuant to this section shall be credited to the undivided local government fund of the county and shall be distributed by the budget commission as provided by law.
(D) All of the taxes levied under section 5707.03 of the Revised Code on the value of the shares in and capital employed by dealers in intangibles that are qualifying dealers shall be paid into the state treasury to the credit of the general revenue fund.
Sec. 5727.40.  (A) As used in this section, "qualified rehabilitation expenditures," "certificate owner," and "certificate share" have the same meanings as in section 149.311 of the Revised Code.
(B) There is hereby allowed a nonrefundable credit against the tax imposed and assessed under sections 5727.30 and 5727.38 of the Revised Code for a public utility subject to that tax that is the certificate owner of a rehabilitation tax credit certificate issued under section 149.311 of the Revised Code or of a certificate share. The credit shall equal twenty-five per cent of the amount of the dollar amount of the certificate or certificate share owned by the public utility as indicated in the tax commissioner's register maintained under section 5733.47 of the Revised Code. If the amount of the credit exceeds the amount of tax otherwise due for any year, the excess may be carried forward and applied to the tax due for a following year until the full amount of the credit has been applied. The credit may be claimed on or after January 1, 2006.
A public utility claiming a credit under this section shall retain the certificate and, if the public utility is the assignee of a certificate or certificate share, the written assignment agreement, for four years following the end of the last year in which the credit, including any carried-forward amount, is applied, and shall make the certificate or agreement available for inspection by the tax commissioner upon the request of the tax commissioner during that period.
Sec. 5733.47. (A) As used in this section, "qualified rehabilitation expenditures," "certificate owner," and "certificate share" have the same meanings as in section 149.311 of the Revised Code.
(B) For the purpose of this section and sections 5725.151 and 5747.76 of the Revised Code, the tax commissioner shall compile and maintain a register of rehabilitation tax credit certificates issued under section 149.311 of the Revised Code and of certificate shares. The register shall record, according to the registration number of each certificate issued, the name of the person to which the certificate is issued, the amount of qualified rehabilitation expenditures the person claims to have paid or incurred, the name of any assignee of the certificate or a certificate share registered with the tax commissioner, and the amount of such expenditures assigned to any such assignee.
(C) There is hereby allowed a nonrefundable credit against the tax imposed under section 5733.06 of the Revised Code for a taxpayer that is a certificate owner of a rehabilitation tax credit certificate or certificate share. The credit equals twenty-five per cent of the dollar amount of the certificate or certificate share owned by the taxpayer as indicated in the tax commissioner's register maintained under this section. The credit shall be claimed 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 any other credits preceding the credit allowed by this section in that order, the excess may be carried forward and deducted from the tax otherwise due for subsequent tax years until the credit has been fully applied.
Credits allowed under this section may be claimed beginning with tax year 2006.
A taxpayer claiming a credit under this section shall retain the certificate and, if the taxpayer is the assignee of a certificate or certificate share, the written assignment agreement, for four years following the end of the last tax year to which the credit, including any carried-forward amount, is applied, and shall make the certificate or agreement available for inspection by the tax commissioner upon the request of the tax commissioner during that period.
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) 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 day-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 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;
(13) The credit for purchases of new manufacturing machinery and equipment under section 5733.31 or section 5733.311 of the Revised Code;
(14) The second credit for purchases of new manufacturing machinery and equipment under section 5733.33 of the Revised Code;
(15) The job training credit under section 5733.42 of the Revised Code;
(16) The credit for qualified research expenses under section 5733.351 of the Revised Code;
(17) The enterprise zone credit under section 5709.66 of the Revised Code;
(18) The credit for the eligible costs associated with a voluntary action under section 5733.34 of the Revised Code;
(19) The credit for employers that establish on-site child day-care under section 5733.37 of the Revised Code;
(20) The ethanol plant investment credit under section 5733.46 of the Revised Code;
(21) The credit for purchases of qualifying grape production property under section 5733.32 of the Revised Code;
(22) The export sales credit under section 5733.069 of the Revised Code;
(23) The credit for research and development and technology transfer investors under section 5733.35 of the Revised Code;
(24) The enterprise zone credits under section 5709.65 of the Revised Code;
(25) The credit for using Ohio coal under section 5733.39 of the Revised Code;
(26) The research and development credit under section 5733.352 of the Revised Code;
(27) The credit for small telephone companies under section 5733.57 of the Revised Code;
(27)(28) The credit for eligible nonrecurring 9-1-1 charges under section 5733.55 of the Revised Code;
(28)(29) The credit for providing programs to aid the communicatively impaired under section 5733.56 of the Revised Code;
(29)(30) The credit for rehabilitating historic buildings under section 5733.47 of the Revised Code;
(31) The refundable jobs creation credit under division (A) of section 5733.0610 of the Revised Code;
(28)(30)(32) The refundable credit for tax withheld under division (B)(2) of section 5747.062 of the Revised Code;
(29)(31)(33) 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)(29), (30),, and (29) (31), (32), and (33) 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. 5747.08.  An annual return with respect to the tax imposed by section 5747.02 of the Revised Code and each tax imposed under Chapter 5748. of the Revised Code shall be made by every taxpayer for any taxable year for which the taxpayer is liable for the tax imposed by that section or under that chapter, unless the total credits allowed under divisions (E), (F), and (G) of section 5747.05 of the Revised Code for the year are equal to or exceed the tax imposed by section 5747.02 of the Revised Code, in which case no return shall be required unless the taxpayer is liable for a tax imposed pursuant to Chapter 5748. of the Revised Code.
(A) If an individual is deceased, any return or notice required of that individual under this chapter shall be made and filed by that decedent's executor, administrator, or other person charged with the property of that decedent.
(B) If an individual is unable to make a return or notice required by this chapter, the return or notice required of that individual shall be made and filed by the individual's duly authorized agent, guardian, conservator, fiduciary, or other person charged with the care of the person or property of that individual.
(C) Returns or notices required of an estate or a trust shall be made and filed by the fiduciary of the estate or trust.
(D)(1)(a) Except as otherwise provided in division (D)(1)(b) of this section, any pass-through entity may file a single return on behalf of one or more of the entity's investors other than an investor that is a person subject to the tax imposed under section 5733.06 of the Revised Code. The single return shall set forth the name, address, and social security number or other identifying number of each of those pass-through entity investors and shall indicate the distributive share of each of those pass-through entity investor's income taxable in this state in accordance with sections 5747.20 to 5747.231 of the Revised Code. Such pass-through entity investors for whom the pass-through entity elects to file a single return are not entitled to the exemption or credit provided for by sections 5747.02 and 5747.022 of the Revised Code; shall calculate the tax before business credits at the highest rate of tax set forth in section 5747.02 of the Revised Code for the taxable year for which the return is filed; and are entitled to only their distributive share of the business credits as defined in division (D)(2) of this section. A single check drawn by the pass-through entity shall accompany the return in full payment of the tax due, as shown on the single return, for such investors, other than investors who are persons subject to the tax imposed under section 5733.06 of the Revised Code.
(b)(i) A pass-through entity shall not include in such a single return any investor that is a trust to the extent that any direct or indirect current, future, or contingent beneficiary of the trust is a person subject to the tax imposed under section 5733.06 of the Revised Code.
(ii) A pass-through entity shall not include in such a single return any investor that is itself a pass-through entity to the extent that any direct or indirect investor in the second pass-through entity is a person subject to the tax imposed under section 5733.06 of the Revised Code.
(c) Nothing in division (D) of this section precludes the tax commissioner from requiring such investors to file the return and make the payment of taxes and related interest, penalty, and interest penalty required by this section or section 5747.02, 5747.09, or 5747.15 of the Revised Code. Nothing in division (D) of this section shall be construed to provide to such an investor or pass-through entity any additional deduction or credit, other than the credit provided by division (J) of this section, solely on account of the entity's filing a return in accordance with this section. Such a pass-through entity also shall make the filing and payment of estimated taxes on behalf of the pass-through entity investors other than an investor that is a person subject to the tax imposed under section 5733.06 of the Revised Code.
(2) For the purposes of this section, "business credits" means the credits listed in section 5747.98 of the Revised Code excluding the following credits:
(a) The retirement credit under division (B) of section 5747.055 of the Revised Code;
(b) The senior citizen credit under division (C) of section 5747.05 of the Revised Code;
(c) The lump sum distribution credit under division (D) of section 5747.05 of the Revised Code;
(d) The dependent care credit under section 5747.054 of the Revised Code;
(e) The lump sum retirement income credit under division (C) of section 5747.055 of the Revised Code;
(f) The lump sum retirement income credit under division (D) of section 5747.055 of the Revised Code;
(g) The lump sum retirement income credit under division (E) of section 5747.055 of the Revised Code;
(h) The credit for displaced workers who pay for job training under section 5747.27 of the Revised Code;
(i) The twenty-dollar personal exemption credit under section 5747.022 of the Revised Code;
(j) The joint filing credit under division (G) of section 5747.05 of the Revised Code;
(k) The nonresident credit under division (A) of section 5747.05 of the Revised Code;
(l) The credit for a resident's out-of-state income under division (B) of section 5747.05 of the Revised Code;
(m) The credit for rehabilitating historic buildings under section 5747.76 of the Revised Code if the historic building is not income-producing property.
(3) The election provided for under division (D) of this section applies only to the taxable year for which the election is made by the pass-through entity. Unless the tax commissioner provides otherwise, this election, once made, is binding and irrevocable for the taxable year for which the election is made. Nothing in this division shall be construed to provide for any deduction or credit that would not be allowable if a nonresident pass-through entity investor were to file an annual return.
(4) If a pass-through entity makes the election provided for under division (D) of this section, the pass-through entity shall be liable for any additional taxes, interest, interest penalty, or penalties imposed by this chapter if the commissioner finds that the single return does not reflect the correct tax due by the pass-through entity investors covered by that return. Nothing in this division shall be construed to limit or alter the liability, if any, imposed on pass-through entity investors for unpaid or underpaid taxes, interest, interest penalty, or penalties as a result of the pass-through entity's making the election provided for under division (D) of this section. For the purposes of division (D) of this section, "correct tax due" means the tax that would have been paid by the pass-through entity had the single return been filed in a manner reflecting the commissioner's findings. Nothing in division (D) of this section shall be construed to make or hold a pass-through entity liable for tax attributable to a pass-through entity investor's income from a source other than the pass-through entity electing to file the single return.
(E) If a husband and wife file a joint federal income tax return for a taxable year, they shall file a joint return under this section for that taxable year, and their liabilities are joint and several, but, if the federal income tax liability of either spouse is determined on a separate federal income tax return, they shall file separate returns under this section.
If either spouse is not required to file a federal income tax return and either or both are required to file a return pursuant to this chapter, they may elect to file separate or joint returns, and, pursuant to that election, their liabilities are separate or joint and several. If a husband and wife file separate returns pursuant to this chapter, each must claim the taxpayer's own exemption, but not both, as authorized under section 5747.02 of the Revised Code on the taxpayer's own return.
(F) Each return or notice required to be filed under this section shall contain the signature of the taxpayer or the taxpayer's duly authorized agent and of the person who prepared the return for the taxpayer, and shall include the taxpayer's social security number. Each return shall be verified by a declaration under the penalties of perjury. The tax commissioner shall prescribe the form that the signature and declaration shall take.
(G) Each return or notice required to be filed under this section shall be made and filed as required by section 5747.04 of the Revised Code, on or before the fifteenth day of April of each year, on forms that the tax commissioner shall prescribe, together with remittance made payable to the treasurer of state in the combined amount of the state and all school district income taxes shown to be due on the form, unless the combined amount shown to be due is one dollar or less, in which case that amount need not be remitted.
Upon good cause shown, the commissioner may extend the period for filing any notice or return required to be filed under this section and may adopt rules relating to extensions. If the extension results in an extension of time for the payment of any state or school district income tax liability with respect to which the return is filed, the taxpayer shall pay at the time the tax liability is paid an amount of interest computed at the rate per annum prescribed by section 5703.47 of the Revised Code on that liability from the time that payment is due without extension to the time of actual payment. Except as provided in section 5747.132 of the Revised Code, in addition to all other interest charges and penalties, all taxes imposed under this chapter or Chapter 5748. of the Revised Code and remaining unpaid after they become due, except combined amounts due of one dollar or less, bear interest at the rate per annum prescribed by section 5703.47 of the Revised Code until paid or until the day an assessment is issued under section 5747.13 of the Revised Code, whichever occurs first.
If the commissioner considers it necessary in order to ensure the payment of the tax imposed by section 5747.02 of the Revised Code or any tax imposed under Chapter 5748. of the Revised Code, the commissioner may require returns and payments to be made otherwise than as provided in this section.
(H) If any report, claim, statement, or other document required to be filed, or any payment required to be made, within a prescribed period or on or before a prescribed date under this chapter is delivered after that period or that date by United States mail to the agency, officer, or office with which the report, claim, statement, or other document is required to be filed, or to which the payment is required to be made, the date of the postmark stamped on the cover in which the report, claim, statement, or other document, or payment is mailed shall be deemed to be the date of delivery or the date of payment.
If a payment is required to be made by electronic funds transfer pursuant to section 5747.072 of the Revised Code, the payment is considered to be made when the payment is received by the treasurer of state or credited to an account designated by the treasurer of state for the receipt of tax payments.
"The date of the postmark" means, in the event there is more than one date on the cover, the earliest date imprinted on the cover by the United States postal service.
(I) The amounts withheld by the employer pursuant to section 5747.06 of the Revised Code shall be allowed to the recipient of the compensation as credits against payment of the appropriate taxes imposed on the recipient by section 5747.02 and under Chapter 5748. of the Revised Code.
(J) If, in accordance with division (D) of this section, a pass-through entity elects to file a single return and if any investor is required to file the return and make the payment of taxes required by this chapter on account of the investor's other income that is not included in a single return filed by a pass-through entity, the investor is entitled to a refundable credit equal to the investor's proportionate share of the tax paid by the pass-through entity on behalf of the investor. The investor shall claim the credit for the investor's taxable year in which or with which ends the taxable year of the pass-through entity. Nothing in this chapter shall be construed to allow any credit provided in this chapter to be claimed more than once. For the purposes of computing any interest, penalty, or interest penalty, the investor shall be deemed to have paid the refundable credit provided by this division on the day that the pass-through entity paid the estimated tax or the tax giving rise to the credit.
Sec. 5747.76. As used in this section, "qualified rehabilitation expenditures," "certificate owner," and "certificate share" have the same meanings as in section 149.311 of the Revised Code.
There is hereby allowed a nonrefundable credit against the tax imposed under section 5747.02 of the Revised Code for a taxpayer that is the certificate owner of a rehabilitation tax credit certificate issued under section 149.311 of the Revised Code or of a certificate share. The credit equals twenty-five per cent of the dollar amount of the certificate or certificate share owned by the taxpayer as indicated in the tax commissioner's register maintained under section 5733.47 of the Revised Code. The credit shall be claimed 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 any other credits preceding the credit allowed by this section in that order, the excess may be carried forward and deducted from the tax otherwise due for subsequent taxable years until the credit has been fully applied.
Nothing in this section limits or disallows pass-through treatment of the credit if the certificate owner is a pass-through entity.
The credit may be claimed for taxable years beginning on or after January 1, 2006.
A taxpayer claiming a credit under this section shall retain the certificate and, if the taxpayer is the assignee of a certificate or certificate share, the written assignment agreement, for four years following the end of the last taxable year to which the credit, including any carried-forward amount, is applied, and shall make the certificate or agreement available for inspection by the tax commissioner upon the request of the tax commissioner during that period.
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 credit for displaced workers who pay for job training under section 5747.27 of the Revised Code;
(9) The campaign contribution credit under section 5747.29 of the Revised Code;
(10) The twenty-dollar personal exemption credit under section 5747.022 of the Revised Code;
(11) The joint filing credit under division (G) of section 5747.05 of the Revised Code;
(12) The nonresident credit under division (A) of section 5747.05 of the Revised Code;
(13) The credit for a resident's out-of-state income under division (B) of section 5747.05 of the Revised Code;
(14) The credit for employers that enter into agreements with child day-care centers under section 5747.34 of the Revised Code;
(15) The credit for employers that reimburse employee child day-care expenses under section 5747.36 of the Revised Code;
(16) The credit for adoption of a minor child under section 5747.37 of the Revised Code;
(17) The credit for purchases of lights and reflectors under section 5747.38 of the Revised Code;
(18) The job retention credit under division (B) of section 5747.058 of the Revised Code;
(19) 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;
(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 credit for rehabilitating historic buildings under section 5747.76 of the Revised Code;
(33) The refundable jobs creation credit under division (A) of section 5747.058 of the Revised Code;
(33)(34) The refundable credit for taxes paid by a qualifying entity granted under section 5747.059 of the Revised Code;
(34)(35) 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)(36) The refundable credit for tax withheld under division (B)(1) of section 5747.062 of the Revised Code;
(36)(37) 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)(32)(33) to (36)(37) 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 5725.24, 5733.98, 5747.08, and 5747.98 of the Revised Code are hereby repealed.
Section 3.  Applications to the State Historic Preservation Officer for a rehabilitation tax credit certificate under section 149.311 of the Revised Code may be filed on or after the later of July 1, 2005, or the first day of the seventh month after the month in which this act takes effect.
Section 4.  Section 5733.98 of the Revised Code is presented in this act as a composite of the section as amended by both Am. Sub. H.B. 1 and Am. Sub. H.B. 95 of the 125th General Assembly. The General Assembly, applying the principle stated in division (B) of section 1.52 of the Revised Code that amendments are to be harmonized if reasonably capable of simultaneous operation, finds that the composite is the resulting version of the section in effect prior to the effective date of the section as presented in this act.
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