Bill Text: OH SB157 | 2013-2014 | 130th General Assembly | Introduced
Bill Title: To create a tax credit for the employment of individuals who have been convicted of criminal offenses.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2013-07-11 - To Ways & Means [SB157 Detail]
Download: Ohio-2013-SB157-Introduced.html
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Senator Tavares
Cosponsor:
Senator Turner
To amend sections 5726.98, 5747.98, and 5751.98 and | 1 |
to enact sections 5726.58, 5747.391, and 5751.55 | 2 |
of the Revised Code to create a tax credit for the | 3 |
employment of individuals who have been convicted | 4 |
of criminal offenses. | 5 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5726.98, 5747.98, and 5751.98 be | 6 |
amended and sections 5726.58, 5747.391, and 5751.55 of the Revised | 7 |
Code be enacted to read as follows: | 8 |
Sec. 5726.58. (A) As used in this section: | 9 |
(1) "Qualified reforming offender" means an individual who: | 10 |
(a) Has been convicted of a felony or misdemeanor under any | 11 |
statute of the United States or any state; | 12 |
(b) Was hired by a taxpayer within one year after the | 13 |
conviction or, if sentenced to a term of incarceration, was hired | 14 |
within one year after being released from incarceration; and | 15 |
(c) Is a member of a family that, in the six months | 16 |
immediately preceding the date of hiring, had an income that, on | 17 |
an annual basis, would be seventy per cent or less of the most | 18 |
recent lower living standard calculated by the federal bureau of | 19 |
labor statistics. | 20 |
(2) "Family" means an individual, an individual's spouse, and | 21 |
children. | 22 |
(3) "Wages" has the same meaning as in section 3306 of the | 23 |
Internal Revenue Code. | 24 |
(B)(1) A nonrefundable credit is allowed against the tax | 25 |
imposed by section 5726.02 of the Revised Code for the wages paid | 26 |
by a taxpayer to a qualified reforming offender who works at least | 27 |
one hundred twenty hours for the taxpayer during the taxpayer's | 28 |
taxable year. The amount of the credit shall be calculated as | 29 |
follows: | 30 |
(a) For each qualified reforming offender who works at least | 31 |
four hundred hours during the taxable year, the credit equals | 32 |
forty per cent of the wages paid to the qualified reforming | 33 |
offender, but shall not exceed two thousand four hundred dollars | 34 |
per qualified reforming offender. | 35 |
(b) For each qualified reforming offender who works less than | 36 |
four hundred hours but at least one hundred twenty hours during | 37 |
the taxable year, the credit equals twenty-five per cent of the | 38 |
wages paid to the qualified reforming offender, but shall not | 39 |
exceed one thousand five hundred dollars per qualified reforming | 40 |
offender. | 41 |
The credit shall be claimed in the order required under | 42 |
section 5726.98 of the Revised Code. The credit, to the extent it | 43 |
exceeds the taxpayer's tax liability for the tax year after | 44 |
allowance for any other credits that precede the credit under that | 45 |
section in that order, may be carried forward for the next five | 46 |
succeeding tax years, but the amount of any excess credit allowed | 47 |
in any such year shall be deducted from the balance carried | 48 |
forward to the succeeding year. | 49 |
(2) A taxpayer who received federally funded payments for | 50 |
on-the-job training of a qualified reforming offender may not | 51 |
claim the credit allowed under this section for any portion of the | 52 |
wages paid to that qualified reforming offender. | 53 |
(3) A taxpayer may not claim the credit allowed under this | 54 |
section for any portion of the wages paid to a qualified reforming | 55 |
offender for services that were the same as, or substantially | 56 |
similar to, services that, but for a strike or lockout, would have | 57 |
been performed by another employee. | 58 |
(4) If a qualified reforming offender's employment is | 59 |
terminated during the taxable year and the qualified reforming | 60 |
offender was employed by the taxpayer for less than twelve months, | 61 |
the taxpayer may not claim the full amount of the credit allowed | 62 |
under this section unless the qualified reforming offender | 63 |
voluntarily terminated employment; was unable to continue | 64 |
employment due to a disability or death; or was terminated for | 65 |
cause. If a qualified reforming offender's employment is | 66 |
terminated for any other reason, the amount of the credit to which | 67 |
the taxpayer is entitled under this section is reduced by a | 68 |
percentage equal to the percentage of the taxable year that the | 69 |
qualified reforming offender was not employed by the taxpayer. | 70 |
(C) All files, statements, returns, reports, papers, or | 71 |
documents of any kind relating to qualified reforming offenders or | 72 |
their families are not public records under section 149.43 of the | 73 |
Revised Code. | 74 |
(D) A taxpayer that claims a credit under this section may | 75 |
not claim the credit allowed under section 5747.391 or 5751.55 of | 76 |
the Revised Code on the basis of the same qualified reforming | 77 |
offender. | 78 |
Sec. 5726.98. (A) To provide a uniform procedure for | 79 |
calculating the amount of tax due under section 5726.02 of the | 80 |
Revised Code, a taxpayer shall claim any credits to which the | 81 |
taxpayer is entitled under this chapter in the following order: | 82 |
(1) The bank organization assessment credit under section | 83 |
5726.51 of the Revised Code; | 84 |
(2) The nonrefundable job retention credit under division (B) | 85 |
of section 5726.50 of the Revised Code; | 86 |
(3) The nonrefundable credit for purchases of qualified | 87 |
low-income community investments under section 5726.54 of the | 88 |
Revised Code; | 89 |
(4) The nonrefundable credit for employers that employ | 90 |
qualified reforming offenders under section 5726.58 of the Revised | 91 |
Code; | 92 |
(5) The nonrefundable credit for qualified research expenses | 93 |
under section 5726.56 of the Revised Code; | 94 |
| 95 |
intangibles taxes under section 5726.57 of the Revised Code | 96 |
| 97 |
building under section 5726.52 of the Revised Code; | 98 |
| 99 |
under division (A) of section 5726.50 of the Revised Code; | 100 |
| 101 |
Revised Code for losses on loans made under the Ohio venture | 102 |
capital program under sections 150.01 to 150.10 of the Revised | 103 |
Code; | 104 |
| 105 |
section 5726.55 of the Revised Code. | 106 |
(B) For any credit except the refundable credits enumerated | 107 |
in this section, the amount of the credit for a taxable year shall | 108 |
not exceed the tax due after allowing for any other credit that | 109 |
precedes it in the order required under this section. Any excess | 110 |
amount of a particular credit may be carried forward if authorized | 111 |
under the section creating that credit. Nothing in this chapter | 112 |
shall be construed to allow a taxpayer to claim, directly or | 113 |
indirectly, a credit more than once for a taxable year. | 114 |
Sec. 5747.391. (A) As used in this section: | 115 |
(1) "Pass-through entity" includes a sole proprietorship. | 116 |
(2) "Qualified reforming offender" means an individual who: | 117 |
(a) Has been convicted of a misdemeanor or felony under any | 118 |
statute of the United States or any state; | 119 |
(b) Was hired by a pass-through entity within one year after | 120 |
the conviction or, if sentenced to a term of incarceration, was | 121 |
hired within one year after being released from incarceration; and | 122 |
(c) Is a member of a family that, in the six months | 123 |
immediately preceding the date of hiring, had an income that, on | 124 |
an annual basis, would be seventy per cent or less of the most | 125 |
recent lower living standard calculated by the federal bureau of | 126 |
labor statistics. | 127 |
(3) "Family" means an individual, an individual's spouse, and | 128 |
children. | 129 |
(4) "Wages" has the same meaning as in section 3306 of the | 130 |
Internal Revenue Code. | 131 |
(B)(1) For taxable years beginning in 2013 or thereafter, a | 132 |
nonrefundable credit is allowed against the tax imposed by section | 133 |
5747.02 of the Revised Code for the wages paid by a pass-through | 134 |
entity to a qualified reforming offender who works at least one | 135 |
hundred twenty hours for the pass-through entity during the | 136 |
entity's taxable year ending in or with the taxpayer's taxable | 137 |
year. The amount of the credit shall be calculated as follows: | 138 |
(a) For each qualified reforming offender who works at least | 139 |
four hundred hours during the entity's taxable year, the credit | 140 |
equals forty per cent of the wages paid to the qualified reforming | 141 |
offender, but shall not exceed two thousand four hundred dollars | 142 |
per qualified reforming offender. | 143 |
(b) For each qualified reforming offender who works less than | 144 |
four hundred hours but at least one hundred twenty hours during | 145 |
the entity's taxable year, the credit equals twenty-five per cent | 146 |
of the wages paid to the qualified reforming offender, but shall | 147 |
not exceed one thousand five hundred dollars per qualified | 148 |
reforming offender. | 149 |
The amount of a taxpayer's credit is the taxpayer's | 150 |
proportionate share of the credit distributed by the pass-through | 151 |
entity. The credit shall be claimed in the order required under | 152 |
section 5747.98 of the Revised Code. The credit, to the extent it | 153 |
exceeds the taxpayer's tax liability for the taxable year after | 154 |
allowance for any other credits that precede the credit under that | 155 |
section in that order, may be carried forward for the next five | 156 |
succeeding taxable years, but the amount of any excess credit | 157 |
allowed in any such year shall be deducted from the balance | 158 |
carried forward to the succeeding year. | 159 |
(2) A taxpayer may not claim the credit allowed under this | 160 |
section for any portion of the wages paid to a qualified reforming | 161 |
offender for whom the pass-through entity received federally | 162 |
funded payments for on-the-job training. | 163 |
(3) A taxpayer may not claim the credit allowed under this | 164 |
section for any portion of the wages paid to a qualified reforming | 165 |
offender for services that were the same as, or substantially | 166 |
similar to, services that, but for a strike or lockout, would have | 167 |
been performed by another employee. | 168 |
(4) If a qualified reforming offender's employment is | 169 |
terminated during the pass-through entity's taxable year ending in | 170 |
or with the taxpayer's taxable year and the qualified reforming | 171 |
offender was employed by the pass-through entity for less than | 172 |
twelve months, a taxpayer may not claim the full amount of the | 173 |
credit allowed under this section unless the qualified reforming | 174 |
offender voluntarily terminated employment; was unable to continue | 175 |
employment due to a disability or death; or was terminated for | 176 |
cause. If a qualified reforming offender's employment is | 177 |
terminated for any other reason, the amount of the credit to which | 178 |
the taxpayer is entitled under this section is reduced by a | 179 |
percentage equal to the percentage of the taxable year that the | 180 |
qualified reforming offender was not employed by the pass-through | 181 |
entity. | 182 |
(C) All files, statements, returns, reports, papers, or | 183 |
documents of any kind relating to qualified reforming offenders or | 184 |
their families are not public records under section 149.43 of the | 185 |
Revised Code. | 186 |
(D) A taxpayer who claims a credit under this section may not | 187 |
directly or indirectly claim the credit allowed under section | 188 |
5726.58 or 5751.55 of the Revised Code on the basis of the same | 189 |
qualified reforming offender. | 190 |
Sec. 5747.98. (A) To provide a uniform procedure for | 191 |
calculating the amount of tax due under section 5747.02 of the | 192 |
Revised Code, a taxpayer shall claim any credits to which the | 193 |
taxpayer is entitled in the following order: | 194 |
(1) The retirement income credit under division (B) of | 195 |
section 5747.055 of the Revised Code; | 196 |
(2) The senior citizen credit under division (C) of section | 197 |
5747.05 of the Revised Code; | 198 |
(3) The lump sum distribution credit under division (D) of | 199 |
section 5747.05 of the Revised Code; | 200 |
(4) The dependent care credit under section 5747.054 of the | 201 |
Revised Code; | 202 |
(5) The lump sum retirement income credit under division (C) | 203 |
of section 5747.055 of the Revised Code; | 204 |
(6) The lump sum retirement income credit under division (D) | 205 |
of section 5747.055 of the Revised Code; | 206 |
(7) The lump sum retirement income credit under division (E) | 207 |
of section 5747.055 of the Revised Code; | 208 |
(8) The low-income credit under section 5747.056 of the | 209 |
Revised Code; | 210 |
(9) The credit for displaced workers who pay for job training | 211 |
under section 5747.27 of the Revised Code; | 212 |
(10) The campaign contribution credit under section 5747.29 | 213 |
of the Revised Code; | 214 |
(11) The twenty-dollar personal exemption credit under | 215 |
section 5747.022 of the Revised Code; | 216 |
(12) The joint filing credit under division (G) of section | 217 |
5747.05 of the Revised Code; | 218 |
(13) The nonresident credit under division (A) of section | 219 |
5747.05 of the Revised Code; | 220 |
(14) The credit for a resident's out-of-state income under | 221 |
division (B) of section 5747.05 of the Revised Code; | 222 |
(15) The credit for employers that enter into agreements with | 223 |
child day-care centers under section 5747.34 of the Revised Code; | 224 |
(16) The credit for employers that reimburse employee child | 225 |
care expenses under section 5747.36 of the Revised Code; | 226 |
(17) The credit for adoption of a minor child under section | 227 |
5747.37 of the Revised Code; | 228 |
(18) The credit for purchases of lights and reflectors under | 229 |
section 5747.38 of the Revised Code; | 230 |
(19) The nonrefundable job retention credit under division | 231 |
(B) of section 5747.058 of the Revised Code; | 232 |
(20) The credit for selling alternative fuel under section | 233 |
5747.77 of the Revised Code; | 234 |
(21) The second credit for purchases of new manufacturing | 235 |
machinery and equipment and the credit for using Ohio coal under | 236 |
section 5747.31 of the Revised Code; | 237 |
(22) The job training credit under section 5747.39 of the | 238 |
Revised Code; | 239 |
(23) The enterprise zone credit under section 5709.66 of the | 240 |
Revised Code; | 241 |
(24) The credit for the eligible costs associated with a | 242 |
voluntary action under section 5747.32 of the Revised Code; | 243 |
(25) The credit for employers that establish on-site child | 244 |
day-care centers under section 5747.35 of the Revised Code; | 245 |
(26) The ethanol plant investment credit under section | 246 |
5747.75 of the Revised Code; | 247 |
(27) The nonrefundable credit for employers that employ | 248 |
qualified reforming offenders under section 5747.391 of the | 249 |
Revised Code; | 250 |
(28) The credit for purchases of qualifying grape production | 251 |
property under section 5747.28 of the Revised Code; | 252 |
| 253 |
5747.81 of the Revised Code; | 254 |
| 255 |
technology transfer investors under section 5747.33 of the Revised | 256 |
Code; | 257 |
| 258 |
the Revised Code; | 259 |
| 260 |
5747.331 of the Revised Code; | 261 |
| 262 |
under section 5747.76 of the Revised Code; | 263 |
| 264 |
building under section 5747.76 of the Revised Code; | 265 |
| 266 |
credit under division (A) of section 5747.058 of the Revised Code; | 267 |
| 268 |
entity granted under section 5747.059 of the Revised Code; | 269 |
| 270 |
qualifying pass-through entity granted under division (J) of | 271 |
section 5747.08 of the Revised Code; | 272 |
| 273 |
Revised Code for losses on loans made to the Ohio venture capital | 274 |
program under sections 150.01 to 150.10 of the Revised Code; | 275 |
| 276 |
under section 5747.66 of the Revised Code. | 277 |
| 278 |
taxes paid by a pass-through entity granted under section 5747.65 | 279 |
of the Revised Code. | 280 |
(B) For any credit, except the refundable credits enumerated | 281 |
in this section and the credit granted under division (I) of | 282 |
section 5747.08 of the Revised Code, the amount of the credit for | 283 |
a taxable year shall not exceed the tax due after allowing for any | 284 |
other credit that precedes it in the order required under this | 285 |
section. Any excess amount of a particular credit may be carried | 286 |
forward if authorized under the section creating that credit. | 287 |
Nothing in this chapter shall be construed to allow a taxpayer to | 288 |
claim, directly or indirectly, a credit more than once for a | 289 |
taxable year. | 290 |
Sec. 5751.55. (A) As used in this section: | 291 |
(1) "Qualified reforming offender" means an individual who: | 292 |
(a) Has been convicted of a misdemeanor or felony under any | 293 |
statute of the United States or any state; | 294 |
(b) Was hired by a taxpayer within one year after the | 295 |
conviction or, if sentenced to a term of incarceration, was hired | 296 |
within one year after being released from incarceration; and | 297 |
(c) Is a member of a family that, in the six months | 298 |
immediately preceding the date of hiring, had an income that, on | 299 |
an annual basis, would be seventy per cent or less of the most | 300 |
recent lower living standard calculated by the federal bureau of | 301 |
labor statistics. | 302 |
(2) "Family" means an individual, an individual's spouse, and | 303 |
children. | 304 |
(3) "Wages" has the same meaning as in section 3306 of the | 305 |
Internal Revenue Code. | 306 |
(B)(1) For tax periods beginning in 2013 and thereafter, a | 307 |
nonrefundable credit is allowed against the tax imposed by section | 308 |
5751.02 of the Revised Code for the wages paid by a taxpayer to a | 309 |
qualified reforming offender who works at least one hundred twenty | 310 |
hours for the taxpayer during the calendar year. The amount of the | 311 |
credit shall be calculated as follows: | 312 |
(a) For each qualified reforming offender who works at least | 313 |
four hundred hours during the calendar year, the credit equals | 314 |
forty per cent of the wages paid to the qualified reforming | 315 |
offender, but shall not exceed two thousand four hundred dollars | 316 |
per qualified reforming offender. | 317 |
(b) For each qualified reforming offender who works less than | 318 |
four hundred hours but at least one hundred twenty hours during | 319 |
the calendar year, the credit equals twenty-five per cent of the | 320 |
wages paid to the qualified reforming offender, but shall not | 321 |
exceed one thousand five hundred dollars per qualified reforming | 322 |
offender. | 323 |
The credit shall be claimed in the order required under | 324 |
section 5751.98 of the Revised Code. The credit, to the extent it | 325 |
exceeds a calendar year taxpayer's tax liability for the tax | 326 |
period after allowance for any other credits that precede the | 327 |
credit under that section in that order, may be carried forward | 328 |
for the next five succeeding tax periods. A calendar quarter | 329 |
taxpayer shall claim the credit for the tax period ending on the | 330 |
thirty-first day of December. To the extent the credit exceeds the | 331 |
calendar quarter taxpayer's tax liability for the tax period after | 332 |
allowance for any other credits that precede the credit under | 333 |
section 5751.98 of the Revised Code in that order, the excess may | 334 |
be carried forward for the next twenty-three tax periods. For all | 335 |
taxpayers, the amount of any excess credit allowed in any such tax | 336 |
period shall be deducted from the balance carried forward to the | 337 |
succeeding tax period. | 338 |
(2) A taxpayer who received federally funded payments for | 339 |
on-the-job training of a qualified reforming offender may not | 340 |
claim the credit allowed under this section for any portion of the | 341 |
wages paid to that qualified reforming offender. | 342 |
(3) A taxpayer may not claim the credit allowed under this | 343 |
section for any portion of the wages paid to a qualified reforming | 344 |
offender for services that were the same as, or substantially | 345 |
similar to, services that, but for a strike or lockout, would have | 346 |
been performed by another employee. | 347 |
(4) If a qualified reforming offender's employment is | 348 |
terminated during the calendar year and the qualified reforming | 349 |
offender was employed by the taxpayer for less than twelve months, | 350 |
the taxpayer may not claim the full amount of the credit allowed | 351 |
under this section unless the qualified reforming offender | 352 |
voluntarily terminated employment; was unable to continue | 353 |
employment due to a disability or death; or was terminated for | 354 |
cause. If a qualified reforming offender's employment is | 355 |
terminated for any other reason, the amount of the credit to which | 356 |
the taxpayer is entitled under this section is reduced by a | 357 |
percentage equal to the percentage of the calendar year that the | 358 |
qualified reforming offender was not employed by the taxpayer. | 359 |
(C) All files, statements, returns, reports, papers, or | 360 |
documents of any kind relating to qualified reforming offenders or | 361 |
their families are not public records under section 149.43 of the | 362 |
Revised Code. | 363 |
(D) A taxpayer that claims a credit under this section may | 364 |
not claim the credit allowed under section 5726.58 or 5747.391 of | 365 |
the Revised Code on the basis of the same qualified reforming | 366 |
offender. | 367 |
Sec. 5751.98. (A) To provide a uniform procedure for | 368 |
calculating the amount of tax due under this chapter, a taxpayer | 369 |
shall claim any credits to which it is entitled in the following | 370 |
order: | 371 |
(1) The nonrefundable jobs retention credit under division | 372 |
(B) of section 5751.50 of the Revised Code; | 373 |
(2) The nonrefundable credit for employers that employ | 374 |
qualified reforming offenders under section 5751.55 of the Revised | 375 |
Code; | 376 |
(3) The nonrefundable credit for qualified research expenses | 377 |
under division (B) of section 5751.51 of the Revised Code; | 378 |
| 379 |
research and development loan payments under division (B) of | 380 |
section 5751.52 of the Revised Code; | 381 |
| 382 |
2029 for unused net operating losses under division (B) of section | 383 |
5751.53 of the Revised Code; | 384 |
| 385 |
section 5751.54 of the Revised Code; | 386 |
| 387 |
credit under division (A) of section 5751.50 of the Revised Code; | 388 |
| 389 |
unused net operating losses under division (C) of section 5751.53 | 390 |
of the Revised Code. | 391 |
(B) For any credit except the refundable credits enumerated | 392 |
in this section, the amount of the credit for a tax period shall | 393 |
not exceed the tax due after allowing for any other credit that | 394 |
precedes it in the order required under this section. Any excess | 395 |
amount of a particular credit may be carried forward if authorized | 396 |
under the section creating the credit. | 397 |
Section 2. That existing sections 5726.98, 5747.98, and | 398 |
5751.98 of the Revised Code are hereby repealed. | 399 |
Section 3. Section 5747.98 of the Revised Code is presented | 400 |
in this act as a composite of the section as amended by both Am. | 401 |
Sub. H.B. 386 and Am. Sub. H.B. 510 of the 129th General Assembly. | 402 |
The General Assembly, applying the principle stated in division | 403 |
(B) of section 1.52 of the Revised Code that amendments are to be | 404 |
harmonized if reasonably capable of simultaneous operation, finds | 405 |
that the composite is the resulting version of the section in | 406 |
effect prior to the effective date of the section as presented in | 407 |
this act. | 408 |