Bill Text: OH HB107 | 2013-2014 | 130th General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: To authorize the Development Services Agency to award grants to businesses that employ high school students in career exploration internships and to make an appropriation.

Spectrum: Slight Partisan Bill (Republican 40-22)

Status: (Passed) 2014-06-25 - Effective Date [HB107 Detail]

Download: Ohio-2013-HB107-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 107

Representative Baker 

Cosponsors: Representatives Adams, J., Barborak, Gonzales, Henne, Stebelton 

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A BILL

To amend sections 5725.98, 5726.98, 5729.98, and

1

5747.98 and to enact section 122.177 of the

2

Revised Code to authorize a tax credit for

3

businesses that employ high school students in

4

career exploration internships.

5

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

Section 1.  That sections 5725.98, 5726.98, 5729.98, and	6
5747.98 be amended and section 122.177 of the Revised Code be	7
enacted to read as follows:	8

Sec. 122.177.  (A) As used in this section:

9

(1) "Business" means a sole proprietorship, a corporation for	10
profit, or a pass-through entity as defined in section 5733.04 of	11
the Revised Code.	12

(2) "Career exploration internship" means a paid employment	13
relationship between a student intern and a business in which the	14
student intern acquires education, instruction, and experience	15
relevant to the student intern's career aspirations.	16

(3) "Student intern" means an individual who, at the time the	17
business applies for the tax credit under division (B) of this	18
section, meets all of the following criteria:	19

(a) The individual is entitled to attend school in this	20
state.	21

(b) The individual is either between sixteen and eighteen	22
years of age or is enrolled in grade eleven or twelve.	23

(c) The individual has a cumulative grade point average of at	24
least 2.5 out of 4.0, or its equivalent as designated in the rules	25
adopted by the state board of education.	26

(4) "Tax period" means:

27

(a) In the case of a business applying the tax credit against	28
the tax imposed under section 5725.18, 5727.30, 5727.81, 5727.811,	29
or 5729.03 of the Revised Code, a calendar year;	30

(b) In the case of a business applying the tax credit against	31
the tax imposed under section 5726.02 or 5747.02 of the Revised	32
Code, the business's taxable year;	33

(c) In the case of a business applying the tax credit against	34
the tax imposed under section 5727.24 of the Revised Code, the	35
business's return period.	36

(B) A nonrefundable credit is allowed against the tax imposed	37
by section 5725.18, 5726.02, 5727.24, 5727.30, 5727.81, 5727.811,	38
5729.03, or 5747.02 of the Revised Code for a business that	39
employs a student intern in a career exploration internship. To	40
qualify for the credit, the career exploration internship shall be	41
at least twenty weeks in duration and include at least two hundred	42
hours of paid work and instruction. To obtain the tax credit, the	43
business shall apply to the development services agency before the	44
starting date of the career exploration internship. The	45
application shall include all of the following:	46

(1) A brief description of the career exploration internship;

47

(2) A signed statement by the student intern briefly	48
describing the student intern's career aspirations and how the	49
student intern believes this career exploration internship may	50
help achieve those aspirations;	51

(3) A signed statement by a principal or guidance counselor	52
at the student intern's high school or, in the case of a home	53
schooled student, an individual responsible for administering	54
instruction to the student intern, acknowledging that the	55
employment opportunity qualifies as a career exploration	56
internship;	57

(4) The name, address, and telephone number of the business;

58

(5) Any other information required by the development	59
services agency.	60

(C)(1) The development services agency shall review and make	61
a determination with respect to each application submitted under	62
division (B) of this section in the order in which the application	63
is received. The agency shall not approve any application under	64
this section that is received by the agency more than three years	65
after the effective date of .B. of the 130th general assembly. The	66
agency may not otherwise deny an application unless the	67
application is incomplete, the proposed employment relationship	68
does not qualify as a career exploration internship for which a	69
credit may be granted under this section, the business is	70
ineligible to receive a tax credit certificate under division	71
(D)(1) or (J) of this section, or the agency determines that	72
approving the application would cause the tax credit ceiling	73
described in division (D)(3) of this section to be exceeded.	74

(2) The agency shall send written notice of its determination	75
to the business within thirty days after receiving the	76
application. If the agency determines that the application shall	77
not be approved, the notice shall include the reasons for such	78
determination.	79

(3) The agency's determination is final and may not be	80
appealed for any reason. A business may submit a new or amended	81
application under division (B) of this section at any time before	82
or after receiving notice under division (C)(2) of this section.	83

(D)(1) In any calendar year, the development services agency	84
shall not issue tax credit certificates under this section to any	85
business that has received tax credit certificates for three	86
career exploration internships in that calendar year. The agency	87
shall not issue a tax credit certificate unless the agency	88
receives a report from the business within thirty days after the	89
end of the career exploration internship or thirteen months after	90
the approval of the application, whichever comes first, that	91
includes all of the following:	92

(a) The date the student intern began the internship;

93

(b) The date the internship ended or a statement that the	94
student will continue to be employed by the business;	95

(c) The total number of hours during the internship that the	96
student intern was employed by the business;	97

(d) The total wages paid by the business to the student	98
intern during the internship;	99

(e) A signed statement by the student intern briefly	100
describing the duties performed during the internship and the	101
skills and experiences gained throughout the internship;	102

(f) Any other information required by the agency.

103

(2) If the agency receives the report and determines that it	104
contains all of the information and the statement required by	105
division (D)(1) of this section and that the career exploration	106
internship described in the report complies with all the	107
provisions of this section, the agency shall issue a tax credit	108
certificate to the business. The tax credit certificate shall	109
indicate that the business is allowed a tax credit equal to the	110
lesser of the following:	111

(a) Fifty per cent of the wages paid by the business to the	112
student intern for the first twelve months following the date the	113
application was approved;	114

(b) Five thousand dollars.

115

(3) The sum of all tax credit certificates issued under this	116
section shall not exceed two million dollars.	117

(E) A business that is issued a tax credit certificate under	118
this section shall claim the tax credit for the tax period in	119
which the certificate is issued, except that an individual	120
claiming a distributive share of a credit as an equity owner of a	121
pass-through entity shall claim the credit for the taxpayer's	122
taxable year that includes the last day of the entity's taxable	123
year in which the certificate was issued. If applicable to the	124
business, the tax credit shall be claimed in the order required	125
under section 5725.98, 5726.98, 5729.98, or 5747.98 of the Revised	126
Code. If the amount of the credit exceeds the amount of tax	127
otherwise due, the excess shall be allowed as a credit in each of	128
the ensuing three tax periods, but the amount of any excess credit	129
allowed in an ensuing tax period shall be deducted from the	130
balance carried forward to the next tax period. If the tax credit	131
is applied against the tax imposed under section 5727.24 of the	132
Revised Code, any excess credit shall be allowed as a credit	133
against the tax due for each return period in the ensuing three	134
years.	135

(F) The director of development services shall prescribe the	136
form of the tax credit certificate and shall report to the tax	137
commissioner any information requested by the commissioner	138
concerning tax credit certificates issued under this section. A	139
business shall present the certificate to the tax commissioner	140
upon the commissioner's request.	141

(G) A tax credit certificate issued to a business under this	142
section may not be transferred by that business to any other	143
person. This division does not prohibit an equity owner of a	144
pass-through entity from claiming the owner's distributive or	145
proportionate share of the credit allowed under this section.	146

(H) A business that receives a tax credit certificate under	147
this section may submit a new application under division (B) of	148
this section for another career exploration internship with the	149
same student intern. Such an application does not have to include	150
the statements otherwise required by divisions (B)(2) and (3) of	151
this section.	152

(I) Annually, before the seventh day of January, the	153
development services agency shall compile a report indicating the	154
number of career exploration internships approved by the agency	155
under this section, the statements issued by the student interns	156
under divisions (B)(2) and (D)(1)(e) of this section, the number	157
of student interns that continued employment with the business	158
after the commencement of the career exploration internship, and	159
the total amount of tax credit certificates issued under this	160
section. The report shall not disclose any student interns'	161
personally identifiable information. The agency shall provide	162
copies of the report to the governor, the speaker and minority	163
leader of the house of representatives, and the president and	164
minority leader of the senate.	165

(J)(1) If the development services agency receives	166
information alleging that a business that was issued a tax credit	167
certificate under this section presented or contributed to the	168
presentation of false information to the agency in connection with	169
obtaining the certificate, the agency shall send written notice to	170
the business that if the allegation is found to be true the	171
business may be penalized as provided in division (J) of this	172
section.	173

(2) After giving the business an opportunity to be heard on	174
the allegation, the agency shall determine if the business	175
presented or contributed to the presentation of false information	176
in connection with obtaining a tax credit certificate.	177

(3) If the agency determines a business submitted or	178
contributed to the submission of false information, it may revoke	179
any remaining tax credit available to the business. The agency	180
shall send written notice of the revocation to the business and	181
the tax commissioner. The tax commissioner may make an assessment	182
against the business to recapture any amount of the tax credit	183
that the business already has claimed under this section. The time	184
limitations on assessments under the laws of the particular tax	185
against which the business claimed the credit do not apply to an	186
assessment under this section.	187

(4) If the agency determines a business submitted or	188
contributed to the submission of false information, the agency	189
shall not approve any application by the business under division	190
(B) of this section or issue any tax credit certificate to the	191
business under division (D)(2) of this section after the date of	192
the agency's determination.	193

Sec. 5725.98. (A) To provide a uniform procedure for	194
calculating the amount of tax imposed by section 5725.18 of the	195
Revised Code that is due under this chapter, a taxpayer shall	196
claim any credits and offsets against tax liability to which it is	197
entitled in the following order:	198

(1) The credit for an insurance company or insurance company	199
group under section 5729.031 of the Revised Code;	200

(2) The credit for eligible employee training costs under	201
section 5725.31 of the Revised Code;	202

(3) The credit for employing a student intern under section	203
122.177 of the Revised Code;	204

(4) The credit for purchasers of qualified low-income	205
community investments under section 5725.33 of the Revised Code;	206

(4)(5) The nonrefundable job retention credit under division	207
(B)(1) of section 122.171 of the Revised Code;	208

(5)(6) The offset of assessments by the Ohio life and health	209
insurance guaranty association permitted by section 3956.20 of the	210
Revised Code;	211

(6)(7) The refundable credit for rehabilitating a historic	212
building under section 5725.34 of the Revised Code.	213

(7)(8) The refundable credit for Ohio job retention under	214
division (B)(2) or (3) of section 122.171 of the Revised Code;	215

(8)(9) The refundable credit for Ohio job creation under	216
section 5725.32 of the Revised Code;	217

(9)(10) The refundable credit under section 5725.19 of the	218
Revised Code for losses on loans made under the Ohio venture	219
capital program under sections 150.01 to 150.10 of the Revised	220
Code.	221

(B) For any credit except the refundable credits enumerated	222
in this section, the amount of the credit for a taxable year shall	223
not exceed the tax due after allowing for any other credit that	224
precedes it in the order required under this section. Any excess	225
amount of a particular credit may be carried forward if authorized	226
under the section creating that credit. Nothing in this chapter	227
shall be construed to allow a taxpayer to claim, directly or	228
indirectly, a credit more than once for a taxable year.	229

Sec. 5726.98. (A) To provide a uniform procedure for	230
calculating the amount of tax due under section 5726.02 of the	231
Revised Code, a taxpayer shall claim any credits to which the	232
taxpayer is entitled under this chapter in the following order:	233

(1) The bank organization assessment credit under section	234
5726.51 of the Revised Code;	235

(2) The nonrefundable credit for employing a student intern	236
under section 122.177 of the Revised Code;	237

(3) The nonrefundable job retention credit under division (B)	238
of section 5726.50 of the Revised Code;	239

(3)(4) The nonrefundable credit for purchases of qualified	240
low-income community investments under section 5726.54 of the	241
Revised Code;	242

(4)(5) The nonrefundable credit for qualified research	243
expenses under section 5726.56 of the Revised Code;	244

(5)(6) The nonrefundable credit for qualifying dealer in	245
intangibles taxes under section 5726.57 of the Revised Code.;	246

(6)(7) The refundable credit for rehabilitating an historic	247
building under section 5726.52 of the Revised Code;	248

(7)(8) The refundable job retention or job creation credit	249
under division (A) of section 5726.50 of the Revised Code;	250

(8)(9) The refundable credit under section 5726.53 of the	251
Revised Code for losses on loans made under the Ohio venture	252
capital program under sections 150.01 to 150.10 of the Revised	253
Code;	254

(9)(10) The refundable motion picture production credit under	255
section 5726.55 of the Revised Code.	256

(B) For any credit except the refundable credits enumerated	257
in this section, the amount of the credit for a taxable year shall	258
not exceed the tax due after allowing for any other credit that	259
precedes it in the order required under this section. Any excess	260
amount of a particular credit may be carried forward if authorized	261
under the section creating that credit. Nothing in this chapter	262
shall be construed to allow a taxpayer to claim, directly or	263
indirectly, a credit more than once for a taxable year.	264

Sec. 5729.98. (A) To provide a uniform procedure for	265
calculating the amount of tax due under this chapter, a taxpayer	266
shall claim any credits and offsets against tax liability to which	267
it is entitled in the following order:	268

(1) The credit for an insurance company or insurance company	269
group under section 5729.031 of the Revised Code;	270

(2) The credit for eligible employee training costs under	271
section 5729.07 of the Revised Code;	272

(3) The credit for employing a student intern under section	273
122.177 of the Revised Code;	274

(4) The credit for purchases of qualified low-income	275
community investments under section 5729.16 of the Revised Code;	276

(4)(5) The nonrefundable job retention credit under division	277
(B)(1) of section 122.171 of the Revised Code;	278

(5)(6) The offset of assessments by the Ohio life and health	279
insurance guaranty association against tax liability permitted by	280
section 3956.20 of the Revised Code;	281

(6)(7) The refundable credit for rehabilitating a historic	282
building under section 5729.17 of the Revised Code.	283

(7)(8) The refundable credit for Ohio job retention under	284
division (B)(2) or (3) of section 122.171 of the Revised Code;	285

(8)(9) The refundable credit for Ohio job creation under	286
section 5729.032 of the Revised Code;	287

(9)(10) The refundable credit under section 5729.08 of the	288
Revised Code for losses on loans made under the Ohio venture	289
capital program under sections 150.01 to 150.10 of the Revised	290
Code.	291

(B) For any credit except the refundable credits enumerated	292
in this section, the amount of the credit for a taxable year shall	293
not exceed the tax due after allowing for any other credit that	294
precedes it in the order required under this section. Any excess	295
amount of a particular credit may be carried forward if authorized	296
under the section creating that credit. Nothing in this chapter	297
shall be construed to allow a taxpayer to claim, directly or	298
indirectly, a credit more than once for a taxable year.	299

Sec. 5747.98.  (A) To provide a uniform procedure for	300
calculating the amount of tax due under section 5747.02 of the	301
Revised Code, a taxpayer shall claim any credits to which the	302
taxpayer is entitled in the following order:	303

(1) The retirement income credit under division (B) of	304
section 5747.055 of the Revised Code;	305

(2) The senior citizen credit under division (C) of section	306
5747.05 of the Revised Code;	307

(3) The lump sum distribution credit under division (D) of	308
section 5747.05 of the Revised Code;	309

(4) The dependent care credit under section 5747.054 of the	310
Revised Code;	311

(5) The lump sum retirement income credit under division (C)	312
of section 5747.055 of the Revised Code;	313

(6) The lump sum retirement income credit under division (D)	314
of section 5747.055 of the Revised Code;	315

(7) The lump sum retirement income credit under division (E)	316
of section 5747.055 of the Revised Code;	317

(8) The low-income credit under section 5747.056 of the	318
Revised Code;	319

(9) The credit for displaced workers who pay for job training	320
under section 5747.27 of the Revised Code;	321

(10) The campaign contribution credit under section 5747.29	322
of the Revised Code;	323

(11) The twenty-dollar personal exemption credit under	324
section 5747.022 of the Revised Code;	325

(12) The joint filing credit under division (G) of section	326
5747.05 of the Revised Code;	327

(13) The nonresident credit under division (A) of section	328
5747.05 of the Revised Code;	329

(14) The credit for a resident's out-of-state income under	330
division (B) of section 5747.05 of the Revised Code;	331

(15) The credit for employers that enter into agreements with	332
child day-care centers under section 5747.34 of the Revised Code;	333

(16) The credit for employers that reimburse employee child	334
care expenses under section 5747.36 of the Revised Code;	335

(17) The credit for adoption of a minor child under section	336
5747.37 of the Revised Code;	337

(18) The credit for purchases of lights and reflectors under	338
section 5747.38 of the Revised Code;	339

(19) The credit for employing a student intern under section	340
122.177 of the Revised Code;	341

(20) The nonrefundable job retention credit under division	342
(B) of section 5747.058 of the Revised Code;	343

(20)(21) The credit for selling alternative fuel under	344
section 5747.77 of the Revised Code;	345

(21)(22) The second credit for purchases of new manufacturing	346
machinery and equipment and the credit for using Ohio coal under	347
section 5747.31 of the Revised Code;	348

(22)(23) The job training credit under section 5747.39 of the	349
Revised Code;	350

(23)(24) The enterprise zone credit under section 5709.66 of	351
the Revised Code;	352

(24)(25) The credit for the eligible costs associated with a	353
voluntary action under section 5747.32 of the Revised Code;	354

(25)(26) The credit for employers that establish on-site	355
child day-care centers under section 5747.35 of the Revised Code;	356

(26)(27) The ethanol plant investment credit under section	357
5747.75 of the Revised Code;	358

(27)(28) The credit for purchases of qualifying grape	359
production property under section 5747.28 of the Revised Code;	360

(28)(29) The small business investment credit under section	361
5747.81 of the Revised Code;	362

(29)(30) The credit for research and development and	363
technology transfer investors under section 5747.33 of the Revised	364
Code;	365

(30)(31) The enterprise zone credits under section 5709.65 of	366
the Revised Code;	367

(31)(32) The research and development credit under section	368
5747.331 of the Revised Code;	369

(32)(33) The credit for rehabilitating a historic building	370
under section 5747.76 of the Revised Code;	371

(33)(34) The refundable credit for rehabilitating a historic	372
building under section 5747.76 of the Revised Code;	373

(34)(35) The refundable jobs creation credit or job retention	374
credit under division (A) of section 5747.058 of the Revised Code;	375

(35)(36) The refundable credit for taxes paid by a qualifying	376
entity granted under section 5747.059 of the Revised Code;	377

(36)(37) The refundable credits for taxes paid by a	378
qualifying pass-through entity granted under division (J) of	379
section 5747.08 of the Revised Code;	380

(37)(38) The refundable credit under section 5747.80 of the	381
Revised Code for losses on loans made to the Ohio venture capital	382
program under sections 150.01 to 150.10 of the Revised Code;	383

(38)(39) The refundable motion picture production credit	384
under section 5747.66 of the Revised Code.	385

(39)(40) The refundable credit for financial institution	386
taxes paid by a pass-through entity granted under section 5747.65	387
of the Revised Code.	388

(B) For any credit, except the refundable credits enumerated	389
in this section and the credit granted under division (I) of	390
section 5747.08 of the Revised Code, the amount of the credit for	391
a taxable year shall not exceed the tax due after allowing for any	392
other credit that precedes it in the order required under this	393
section. Any excess amount of a particular credit may be carried	394
forward if authorized under the section creating that credit.	395
Nothing in this chapter shall be construed to allow a taxpayer to	396
claim, directly or indirectly, a credit more than once for a	397
taxable year.	398

Section 2.  That existing sections 5725.98, 5726.98, 5729.98,	399
and 5747.98 of the Revised Code are hereby repealed.	400

Section 3.  Section 5747.98 of the Revised Code is presented	401
in this act as a composite of the section as amended by both Am.	402
Sub. H.B. 386 and Am. Sub. H.B. 510 of the 129th General Assembly.	403
The General Assembly, applying the principle stated in division	404
(B) of section 1.52 of the Revised Code that amendments are to be	405
harmonized if reasonably capable of simultaneous operation, finds	406
that the composite is the resulting version of the section in	407
effect prior to the effective date of the section as presented in	408
this act.	409