As Introduced

129th General Assembly Regular Session 2011-2012

H. B. No. 261

Representative McGregor 

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

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A BILL

To amend sections 5747.98 and 5751.98 and to enact

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sections 5747.78 and 5751.54 of the Revised Code

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to allow a credit against the personal income tax

3

or commercial activity tax for the installation of

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an alternative fuel facility.

5

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

Section 1. That sections 5747.98 and 5751.98 be amended and	6
sections 5747.78 and 5751.54 of the Revised Code be enacted to	7
read as follows:	8

Sec. 5747.78.  (A) As used in this section:

9

(1) "Alternative fuel" means any of the following if used for	10
the propulsion of a motor vehicle:	11

(a) Compressed natural gas;

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(b) Liquefied natural gas;

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(c) Liquefied petroleum gas;

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(d) Hydrogen;

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(e) Any liquid, if the percentage of ethanol in the liquid is	16
at least eighty-five per cent;	17

(f) Electricity.

18

(2) "Qualifying facility" means a commercial or residential	19
facility in which equipment used to store or dispense alternative	20
fuel for use in motor vehicles is located, provided that the	21
equipment is labeled for such purposes and clearly identified as	22
associated with storing or dispensing alternative fuel.	23

(B) A nonrefundable credit may be claimed against the tax	24
imposed by section 5747.02 of the Revised Code by a taxpayer that	25
places a qualifying facility into service in this state on or	26
after the effective date of this section and before January 1,	27
2015, for the purpose of dispensing alternative fuel for motor	28
vehicles. The credit equals thirty per cent of the total cost of	29
purchasing, constructing, or installing tangible personal property	30
to be incorporated into the qualifying facility, including any	31
equipment, pumps, storage tanks, or related items, to be used for	32
dispensing or storing alternative fuel.	33

If the qualifying facility is a commercial facility, the	34
taxpayer shall claim one-third of the amount of the credit for the	35
taxable year in which the qualifying facility is placed into	36
service and one-third of the amount of the credit for each of the	37
two succeeding taxable years. The taxpayer may not claim an	38
installment of the credit for any taxable year in which the	39
qualifying facility for which the credit was granted is removed	40
from service or for any subsequent taxable year, except the	41
taxpayer may continue to apply any credit amount that may be	42
carried over from the preceding taxable year.	43

If the qualifying facility is not a commercial facility, the	44
taxpayer shall claim the full amount of the credit for the taxable	45
year in which the qualifying facility is placed into service.	46

The credit, to the extent it exceeds the taxpayer's tax	47
liability for a taxable year after allowance for any other credits	48
that precede the credit under section 5747.98 of the Revised Code,	49
may be carried forward to the next succeeding taxable year or	50
years, but the amount of the excess credit claimed for any taxable	51
year shall be deducted from the balance carried forward to the	52
next taxable year.	53

(C) A nonrefundable credit may be claimed under this section	54
by a taxpayer that sells tangible personal property to be	55
incorporated into a qualifying facility to any person, including	56
the state or any of its political subdivisions, that is not	57
subject to the tax imposed by section 5747.02 or 5751.02 of the	58
Revised Code for the taxable year or calendar year in which the	59
facility is placed into service if the purchaser of the property	60
places the facility into service on or after the effective date of	61
this section and before January 1, 2015. The taxpayer shall notify	62
the purchaser that the taxpayer is eligible to receive the credit	63
authorized in this division. The credit shall equal the price, as	64
defined in section 5739.01 of the Revised Code, at which the	65
taxpayer sells the property to the purchaser. The credit shall be	66
claimed in the same manner as provided in division (B) of this	67
section.	68

(D) The taxpayer shall claim a credit allowed under division	69
(B) or (C) of this section in the order required by section	70
5747.98 of the Revised Code.	71

(E) Nothing in this section limits or disallows pass-through	72
treatment of the credit if the person placing a qualifying	73
facility into service or, in the case of the credit under division	74
(C) of this section, the person selling property to be	75
incorporated into a qualifying facility, is a pass-through entity.	76

(F) A credit is not allowed under this section if a credit is	77
claimed under section 5751.54 of the Revised Code on the basis of	78
the same qualifying facility.	79

Sec. 5747.98.  (A) To provide a uniform procedure for	80
calculating the amount of tax due under section 5747.02 of the	81
Revised Code, a taxpayer shall claim any credits to which the	82
taxpayer is entitled in the following order:	83

(1) The retirement income credit under division (B) of	84
section 5747.055 of the Revised Code;	85

(2) The senior citizen credit under division (C) of section	86
5747.05 of the Revised Code;	87

(3) The lump sum distribution credit under division (D) of	88
section 5747.05 of the Revised Code;	89

(4) The dependent care credit under section 5747.054 of the	90
Revised Code;	91

(5) The lump sum retirement income credit under division (C)	92
of section 5747.055 of the Revised Code;	93

(6) The lump sum retirement income credit under division (D)	94
of section 5747.055 of the Revised Code;	95

(7) The lump sum retirement income credit under division (E)	96
of section 5747.055 of the Revised Code;	97

(8) The low-income credit under section 5747.056 of the	98
Revised Code;	99

(9) The credit for displaced workers who pay for job training	100
under section 5747.27 of the Revised Code;	101

(10) The campaign contribution credit under section 5747.29	102
of the Revised Code;	103

(11) The twenty-dollar personal exemption credit under	104
section 5747.022 of the Revised Code;	105

(12) The joint filing credit under division (G) of section	106
5747.05 of the Revised Code;	107

(13) The nonresident credit under division (A) of section	108
5747.05 of the Revised Code;	109

(14) The credit for a resident's out-of-state income under	110
division (B) of section 5747.05 of the Revised Code;	111

(15) The credit for employers that enter into agreements with	112
child day-care centers under section 5747.34 of the Revised Code;	113

(16) The credit for employers that reimburse employee child	114
care expenses under section 5747.36 of the Revised Code;	115

(17) The credit for adoption of a minor child under section	116
5747.37 of the Revised Code;	117

(18) The credit for purchases of lights and reflectors under	118
section 5747.38 of the Revised Code;	119

(19) The nonrefundable job retention credit under division	120
(B) of section 5747.058 of the Revised Code;	121

(20) The credit for selling alternative fuel under section	122
5747.77 of the Revised Code;	123

(21) The second credit for purchases of new manufacturing	124
machinery and equipment and the credit for using Ohio coal under	125
section 5747.31 of the Revised Code;	126

(22) The job training credit under section 5747.39 of the	127
Revised Code;	128

(23) The enterprise zone credit under section 5709.66 of the	129
Revised Code;	130

(24) The credit for the eligible costs associated with a	131
voluntary action under section 5747.32 of the Revised Code;	132

(25) The credit for employers that establish on-site child	133
day-care centers under section 5747.35 of the Revised Code;	134

(26) The ethanol plant investment credit under section	135
5747.75 of the Revised Code;	136

(27) The credit for purchases of qualifying grape production	137
property under section 5747.28 of the Revised Code;	138

(28) The export sales credit under section 5747.057 of the	139
Revised Code;	140

(29) The credit for research and development and technology	141
transfer investors under section 5747.33 of the Revised Code;	142

(30) The enterprise zone credits under section 5709.65 of the	143
Revised Code;	144

(31) The research and development credit under section	145
5747.331 of the Revised Code;	146

(32) The credit for rehabilitating a historic building under	147
section 5747.76 of the Revised Code;	148

(33) The credits for installing or selling an alternative	149
fuel facility or related property under section 5747.78 of the	150
Revised Code;	151

(33)(34) The refundable credit for rehabilitating a historic	152
building under section 5747.76 of the Revised Code;	153

(34)(35) The refundable jobs creation credit or job retention	154
credit under division (A) of section 5747.058 of the Revised Code;	155

(35)(36) The refundable credit for taxes paid by a qualifying	156
entity granted under section 5747.059 of the Revised Code;	157

(36)(37) The refundable credits for taxes paid by a	158
qualifying pass-through entity granted under division (J) of	159
section 5747.08 of the Revised Code;	160

(37)(38) The refundable credit for tax withheld under	161
division (B)(1) of section 5747.062 of the Revised Code;	162

(38)(39) The refundable credit for tax withheld under section	163
5747.063 of the Revised Code;	164

(39)(40) The refundable credit under section 5747.80 of the	165
Revised Code for losses on loans made to the Ohio venture capital	166
program under sections 150.01 to 150.10 of the Revised Code;	167

(40)(41) The refundable motion picture production credit	168
under section 5747.66 of the Revised Code.	169

(B) For any credit, except the refundable credits enumerated	170
in this section and the credit granted under division (I) of	171
section 5747.08 of the Revised Code, the amount of the credit for	172
a taxable year shall not exceed the tax due after allowing for any	173
other credit that precedes it in the order required under this	174
section. Any excess amount of a particular credit may be carried	175
forward if authorized under the section creating that credit.	176
Nothing in this chapter shall be construed to allow a taxpayer to	177
claim, directly or indirectly, a credit more than once for a	178
taxable year.	179

Sec. 5751.54.  (A) As used in this section:

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(1) "Alternative fuel" has the same meaning as in section	181
5747.78 of the Revised Code.	182

(2) "Qualifying facility" means a commercial facility in	183
which equipment used to store or dispense alternative fuel for use	184
in motor vehicles is located, provided that the equipment is	185
labeled for such purposes and clearly identified as associated	186
with storing or dispensing alternative fuel.	187

(B) A nonrefundable credit may be claimed against the tax	188
imposed by section 5751.02 of the Revised Code by a taxpayer who	189
places a qualifying facility into service in this state on or	190
after the effective date of this section and before January 1,	191
2015, for the purpose of dispensing alternative fuel for motor	192
vehicles. The credit equals thirty per cent of the total cost of	193
purchasing, constructing, or installing tangible personal property	194
to be incorporated into the qualifying facility, including	195
equipment, pumps, storage tanks, or related items, to be used for	196
dispensing or storing alternative fuel.	197

The taxpayer shall claim the credit in substantially equal	198
installments for each of the taxpayer's annual or quarterly tax	199
periods occurring during the three calendar years following the	200
year in which the qualifying facility is placed into service. The	201
credit, to the extent it exceeds the taxpayer's tax liability for	202
a tax period after allowance for any other credits that precede	203
the credit under section 5751.98 of the Revised Code, may be	204
carried forward to the next succeeding tax period or periods, but	205
the amount of the excess credit claimed for any tax period shall	206
be deducted from the balance carried forward to the next tax	207
period. The taxpayer may not claim an installment of the credit	208
for any tax period in which the qualifying facility is removed	209
from service or for any subsequent tax period, except that the	210
taxpayer may continue to apply any credit amount that may be	211
carried over from preceding tax periods.	212

(C) A nonrefundable credit may be claimed under this section	213
by a taxpayer that sells tangible personal property to be	214
incorporated into a qualifying facility to any person, including	215
the state or any of its political subdivisions, that is not	216
subject to the tax imposed by section 5747.02 or 5751.02 of the	217
Revised Code for the taxable or calendar year in which the	218
facility is placed into service if the purchaser of the property	219
places the facility into service on or after the effective date of	220
this section and before January 1, 2015. The taxpayer shall notify	221
the purchaser that the taxpayer is eligible to receive the credit	222
authorized in this division. The credit shall equal the price, as	223
defined in section 5739.01 of the Revised Code, at which the	224
taxpayer sells the property to the purchaser. The credit shall be	225
claimed in the same manner as provided in division (B) of this	226
section.	227

(D) The taxpayer shall claim a credit allowed under division	228
(B) or (C) of this section in the order required by section	229
5751.98 of the Revised Code.	230

(E) A credit is not allowed under this section if a credit is	231
claimed under section 5747.78 of the Revised Code on the basis of	232
the same qualifying facility.	233

Sec. 5751.98.  (A) To provide a uniform procedure for	234
calculating the amount of tax due under this chapter, a taxpayer	235
shall claim any credits to which it is entitled in the following	236
order:	237

(1) The nonrefundable jobs retention credit under division	238
(B) of section 5751.50 of the Revised Code;	239

(2) The nonrefundable credit for qualified research expenses	240
under division (B) of section 5751.51 of the Revised Code;	241

(3) The nonrefundable credit for a borrower's qualified	242
research and development loan payments under division (B) of	243
section 5751.52 of the Revised Code;	244

(4) The nonrefundable credit for calendar years 2010 to 2029	245
for unused net operating losses under division (B) of section	246
5751.53 of the Revised Code;	247

(5) The nonrefundable credits for installing or selling an	248
alternative fuel facility or related property under section	249
5751.54 of the Revised Code;	250

(5)(6) The refundable credit for calendar year 2030 for	251
unused net operating losses under division (C) of section 5751.53	252
of the Revised Code;	253

(6)(7) The refundable jobs creation credit or job retention	254
credit under division (A) of section 5751.50 of the Revised Code.	255

(B) For any credit except the refundable credits enumerated	256
in this section, the amount of the credit for a tax period shall	257
not exceed the tax due after allowing for any other credit that	258
precedes it in the order required under this section. Any excess	259
amount of a particular credit may be carried forward if authorized	260
under the section creating the credit.	261

Section 2.  That existing sections 5747.98 and 5751.98 of the	262
Revised Code are hereby repealed.	263