130th Ohio General Assembly
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H. B. No. 261  As Introduced
As Introduced

129th General Assembly
Regular Session
2011-2012
H. B. No. 261


Representative McGregor 

Cosponsors: Representatives Stebelton, Combs, Gonzales, Murray, Yuko, Antonio, Stinziano 



A BILL
To amend sections 5747.98 and 5751.98 and to enact sections 5747.78 and 5751.54 of the Revised Code to allow a credit against the personal income tax or commercial activity tax for the installation of an alternative fuel facility.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5747.98 and 5751.98 be amended and sections 5747.78 and 5751.54 of the Revised Code be enacted to read as follows:
Sec. 5747.78.  (A) As used in this section:
(1) "Alternative fuel" means any of the following if used for the propulsion of a motor vehicle:
(a) Compressed natural gas;
(b) Liquefied natural gas;
(c) Liquefied petroleum gas;
(d) Hydrogen;
(e) Any liquid, if the percentage of ethanol in the liquid is at least eighty-five per cent;
(f) Electricity.
(2) "Qualifying facility" means a commercial or residential facility in which equipment used to store or dispense alternative fuel for use in motor vehicles is located, provided that the equipment is labeled for such purposes and clearly identified as associated with storing or dispensing alternative fuel.
(B) A nonrefundable credit may be claimed against the tax imposed by section 5747.02 of the Revised Code by a taxpayer that places a qualifying facility into service in this state on or after the effective date of this section and before January 1, 2015, for the purpose of dispensing alternative fuel for motor vehicles. The credit equals thirty per cent of the total cost of purchasing, constructing, or installing tangible personal property to be incorporated into the qualifying facility, including any equipment, pumps, storage tanks, or related items, to be used for dispensing or storing alternative fuel.
If the qualifying facility is a commercial facility, the taxpayer shall claim one-third of the amount of the credit for the taxable year in which the qualifying facility is placed into service and one-third of the amount of the credit for each of the two succeeding taxable years. The taxpayer may not claim an installment of the credit for any taxable year in which the qualifying facility for which the credit was granted is removed from service or for any subsequent taxable year, except the taxpayer may continue to apply any credit amount that may be carried over from the preceding taxable year.
If the qualifying facility is not a commercial facility, the taxpayer shall claim the full amount of the credit for the taxable year in which the qualifying facility is placed into service.
The credit, to the extent it exceeds the taxpayer's tax liability for a taxable year after allowance for any other credits that precede the credit under section 5747.98 of the Revised Code, may be carried forward to the next succeeding taxable year or years, but the amount of the excess credit claimed for any taxable year shall be deducted from the balance carried forward to the next taxable year.
(C) A nonrefundable credit may be claimed under this section by a taxpayer that sells tangible personal property to be incorporated into a qualifying facility to any person, including the state or any of its political subdivisions, that is not subject to the tax imposed by section 5747.02 or 5751.02 of the Revised Code for the taxable year or calendar year in which the facility is placed into service if the purchaser of the property places the facility into service on or after the effective date of this section and before January 1, 2015. The taxpayer shall notify the purchaser that the taxpayer is eligible to receive the credit authorized in this division. The credit shall equal the price, as defined in section 5739.01 of the Revised Code, at which the taxpayer sells the property to the purchaser. The credit shall be claimed in the same manner as provided in division (B) of this section.
(D) The taxpayer shall claim a credit allowed under division (B) or (C) of this section in the order required by section 5747.98 of the Revised Code.
(E) Nothing in this section limits or disallows pass-through treatment of the credit if the person placing a qualifying facility into service or, in the case of the credit under division (C) of this section, the person selling property to be incorporated into a qualifying facility, is a pass-through entity.
(F) A credit is not allowed under this section if a credit is claimed under section 5751.54 of the Revised Code on the basis of the same qualifying facility.
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 nonrefundable job retention credit under division (B) of section 5747.058 of the Revised Code;
(20) The credit for selling alternative fuel under section 5747.77 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 a historic building under section 5747.76 of the Revised Code;
(33) The credits for installing or selling an alternative fuel facility or related property under section 5747.78 of the Revised Code;
(33)(34) The refundable credit for rehabilitating a historic building under section 5747.76 of the Revised Code;
(34)(35) The refundable jobs creation credit or job retention credit under division (A) of section 5747.058 of the Revised Code;
(35)(36) The refundable credit for taxes paid by a qualifying entity granted under section 5747.059 of the Revised Code;
(36)(37) The refundable credits for taxes paid by a qualifying pass-through entity granted under division (J) of section 5747.08 of the Revised Code;
(37)(38) The refundable credit for tax withheld under division (B)(1) of section 5747.062 of the Revised Code;
(38)(39) The refundable credit for tax withheld under section 5747.063 of the Revised Code;
(39)(40) 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;
(40)(41) The refundable motion picture production credit under section 5747.66 of the Revised Code.
(B) For any credit, except the refundable credits enumerated in 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.
Sec. 5751.54.  (A) As used in this section:
(1) "Alternative fuel" has the same meaning as in section 5747.78 of the Revised Code.
(2) "Qualifying facility" means a commercial facility in which equipment used to store or dispense alternative fuel for use in motor vehicles is located, provided that the equipment is labeled for such purposes and clearly identified as associated with storing or dispensing alternative fuel.
(B) A nonrefundable credit may be claimed against the tax imposed by section 5751.02 of the Revised Code by a taxpayer who places a qualifying facility into service in this state on or after the effective date of this section and before January 1, 2015, for the purpose of dispensing alternative fuel for motor vehicles. The credit equals thirty per cent of the total cost of purchasing, constructing, or installing tangible personal property to be incorporated into the qualifying facility, including equipment, pumps, storage tanks, or related items, to be used for dispensing or storing alternative fuel.
The taxpayer shall claim the credit in substantially equal installments for each of the taxpayer's annual or quarterly tax periods occurring during the three calendar years following the year in which the qualifying facility is placed into service. The credit, to the extent it exceeds the taxpayer's tax liability for a tax period after allowance for any other credits that precede the credit under section 5751.98 of the Revised Code, may be carried forward to the next succeeding tax period or periods, but the amount of the excess credit claimed for any tax period shall be deducted from the balance carried forward to the next tax period. The taxpayer may not claim an installment of the credit for any tax period in which the qualifying facility is removed from service or for any subsequent tax period, except that the taxpayer may continue to apply any credit amount that may be carried over from preceding tax periods.
(C) A nonrefundable credit may be claimed under this section by a taxpayer that sells tangible personal property to be incorporated into a qualifying facility to any person, including the state or any of its political subdivisions, that is not subject to the tax imposed by section 5747.02 or 5751.02 of the Revised Code for the taxable or calendar year in which the facility is placed into service if the purchaser of the property places the facility into service on or after the effective date of this section and before January 1, 2015. The taxpayer shall notify the purchaser that the taxpayer is eligible to receive the credit authorized in this division. The credit shall equal the price, as defined in section 5739.01 of the Revised Code, at which the taxpayer sells the property to the purchaser. The credit shall be claimed in the same manner as provided in division (B) of this section.
(D) The taxpayer shall claim a credit allowed under division (B) or (C) of this section in the order required by section 5751.98 of the Revised Code.
(E) A credit is not allowed under this section if a credit is claimed under section 5747.78 of the Revised Code on the basis of the same qualifying facility.
Sec. 5751.98.  (A) To provide a uniform procedure for calculating the amount of tax due under this chapter, a taxpayer shall claim any credits to which it is entitled in the following order:
(1) The nonrefundable jobs retention credit under division (B) of section 5751.50 of the Revised Code;
(2) The nonrefundable credit for qualified research expenses under division (B) of section 5751.51 of the Revised Code;
(3) The nonrefundable credit for a borrower's qualified research and development loan payments under division (B) of section 5751.52 of the Revised Code;
(4) The nonrefundable credit for calendar years 2010 to 2029 for unused net operating losses under division (B) of section 5751.53 of the Revised Code;
(5) The nonrefundable credits for installing or selling an alternative fuel facility or related property under section 5751.54 of the Revised Code;
(5)(6) The refundable credit for calendar year 2030 for unused net operating losses under division (C) of section 5751.53 of the Revised Code;
(6)(7) The refundable jobs creation credit or job retention credit under division (A) of section 5751.50 of the Revised Code.
(B) For any credit except the refundable credits enumerated in this section, the amount of the credit for a tax period 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 the credit.
Section 2.  That existing sections 5747.98 and 5751.98 of the Revised Code are hereby repealed.
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