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As Introduced
136th
General Assembly
Regular
Session
H. B. No. 529
2025-2026
Representatives Sigrist, Schmidt
Cosponsors: Representatives Brennan,
White, E., Lett, Brent, Upchurch, Brownlee, Hall, T., Williams
To
amend sections 5725.98, 5726.98, 5729.98, 5747.98, and 5751.98 and to
enact sections
5725.39
,
5726.63
,
5727.242, 5727.301,
5729.22
,
5736.51,
5747.88
,
and 5751.55 of the Revised Code
to
authorize refundable tax credits for hiring certain veterans, service
members, and their spouses.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 5725.98, 5726.98, 5729.98, 5747.98, and 5751.98 be amended
and sections
5725.39
,
5726.63
,
5727.242, 5727.301,
5729.22
,
5736.51,
5747.88
,
and 5751.55 of the Revised Code be enacted to read as follows:
Sec.
5725.39.
(A)
As used in this section, "tax credit certificate" has the
same meaning as in section 5751.55 of the Revised Code.
(B)
A domestic insurance company issued a tax credit certificate
authorizing the company to claim a credit against the tax levied
under section 5725.18 of the Revised Code may claim a credit against
that tax equal to the amount stated in the certificate. The credit
shall be claimed for the calendar year preceding the year the
certificate was issued and in the order required by section 5725.98
of the Revised Code. Any credit amount in excess of the company's tax
liability, after allowing for any other credits preceding the credit
in that order, shall be refunded to the company.
Sec.
5725.98.
(A)
To provide a uniform procedure for calculating the amount of tax
imposed by section 5725.18 of the Revised Code that is due under this
chapter, a taxpayer shall claim any credits and offsets against tax
liability to which it is entitled in the following order:
The
credit for an insurance company or insurance company group under
section 5729.031 of the Revised Code;
The
credit for eligible employee training costs under section 5725.31 of
the Revised Code;
The
credit for purchasers of qualified low-income community investments
under section 5725.33 of the Revised Code;
The
nonrefundable job retention credit under division (B) of section
122.171 of the Revised Code;
The
nonrefundable credit for investments in rural business growth funds
under section 122.152 of the Revised Code;
The
nonrefundable Ohio low-income housing tax credit under section
5725.36 of the Revised Code;
The
nonrefundable affordable single-family home credit under section
5725.37 of the Revised Code;
The
nonrefundable credit for contributing capital to a transformational
mixed use development project under section 5725.35 of the Revised
Code;
The
nonrefundable opportunity zone investment credit under section
5725.38 of the Revised Code;
The
offset of assessments by the Ohio life and health insurance guaranty
association permitted by section 3956.20 of the Revised Code;
The
refundable credit for rehabilitating a historic building under
section 5725.34 of the Revised Code;
The
refundable credit for Ohio job retention under former division (B)(2)
or (3) of section 122.171 of the Revised Code as those divisions
existed before September 29, 2015, the effective date of the
amendment of this section by H.B. 64 of the 131st general assembly;
The
refundable credit for Ohio job creation under section 5725.32 of the
Revised Code;
The
refundable credit under section 5725.19 of the Revised Code for
losses on loans made under the Ohio venture capital program under
sections 150.01 to 150.10 of the Revised Code
;
The
refundable credit for hiring certain veterans, service members, and
their spouses under section 5725.39 of the Revised Code
.
(B)
For any credit except the refundable credits enumerated in this
section, 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.
5726.63.
(A)
As used in this section, "tax credit certificate" has the
same meaning as in section 5751.55 of the Revised Code.
(B)
A taxpayer issued a tax credit certificate authorizing the taxpayer
to claim a credit against the tax levied under section 5726.02 of the
Revised Code may claim a credit against that tax equal to the amount
stated in the certificate. The credit shall be claimed for the
taxable year preceding the year in which the certificate is issued
and in the order required by section 5726.98 of the Revised Code. Any
credit amount in excess of the taxpayer's tax liability, after
allowing for any other credits preceding the credit in that order,
shall be refunded to the taxpayer.
Sec.
5726.98.
(A)
To provide a uniform procedure for calculating the amount of tax due
under section 5726.02 of the Revised Code, a taxpayer shall claim any
credits to which the taxpayer is entitled under this chapter in the
following order:
The
nonrefundable job retention credit under division (B) of section
5726.50 of the Revised Code;
The
nonrefundable credit for purchases of qualified low-income community
investments under section 5726.54 of the Revised Code;
The
nonrefundable credit for transformational mixed use development tax
credit certificate holders under section 5726.62 of the Revised Code;
The
nonrefundable credit for qualified research expenses under section
5726.56 of the Revised Code;
The
nonrefundable credit for qualifying dealer in intangibles taxes under
section 5726.57 of the Revised Code;
The
nonrefundable Ohio low-income housing tax credit under section
5726.58 of the Revised Code;
The
nonrefundable affordable single-family home credit under section
5726.60 of the Revised Code;
The
nonrefundable welcome home Ohio (WHO) program credit under section
122.633 of the Revised Code;
The
nonrefundable opportunity zone investment credit under section
5726.61 of the Revised Code;
The
refundable credit for rehabilitating an historic building under
section 5726.52 of the Revised Code;
The
refundable job retention or job creation credit under division (A) of
section 5726.50 of the Revised Code;
The
refundable credit under section 5726.53 of the Revised Code for
losses on loans made under the Ohio venture capital program under
sections 150.01 to 150.10 of the Revised Code;
The
refundable motion picture and broadway theatrical production credit
under section 5726.55 of the Revised Code
;
The
refundable credit for hiring certain veterans, service members, and
their spouses under section 5726.63 of the Revised Code
.
(B)
For any credit except the refundable credits enumerated in this
section, 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.
5727.242.
(A)
As used in this section:
(1)
"Tax credit certificate" has the same meaning as in section
5751.55 of the Revised Code.
(2)
"Taxpayer" means any person subject to the tax levied under
section 5727.24 of the Revised Code.
(B)
A taxpayer issued a tax credit certificate authorizing the taxpayer
to claim a credit against the tax levied under section 5727.24 of the
Revised Code may claim a credit against that tax equal to the amount
stated in the certificate. The credit shall be claimed on the first
return due under section 5727.25 of the Revised Code after the
certificate is issued and after the credits authorized in sections
5727.241 and 5727.29 of the Revised Code. Any credit amount in excess
of the taxpayer's tax liability, after allowing for any other credits
preceding the credit in that order, shall be refunded to the
taxpayer.
Sec.
5727.301.
(A)
As used in this section:
(1)
"Tax credit certificate" has the same meaning as in section
5751.55 of the Revised Code.
(2)
"Taxpayer" means any person subject to the tax levied under
section 5727.30 of the Revised Code.
(B)
A taxpayer issued a tax credit certificate authorizing the taxpayer
to claim a credit against the tax levied under section 5727.30 of the
Revised Code may claim a credit against that tax equal to the amount
stated in the certificate. The credit shall be claimed on the first
report due under section 5727.31 of the Revised Code after the
certificate is issued and after the credit authorized in section
5727.29 of the Revised Code. Any credit amount in excess of the
taxpayer's tax liability, after allowing for the preceding credit,
shall be refunded to the taxpayer.
Sec.
5729.22.
(A)
As used in this section, "tax credit certificate" has the
same meaning as in section 5751.55 of the Revised Code.
(B)
A foreign insurance company issued a tax credit certificate
authorizing the company to claim a credit against the tax levied
under section 5729.03 of the Revised Code may claim a credit against
that tax equal to the amount stated in the certificate. The credit
shall be claimed for the calendar year preceding the year in which
the certificate is issued and in the order required by section
5729.98 of the Revised Code. Any credit amount in excess of the
company's tax liability, after allowing for any other credits
preceding the credit in that order, shall be refunded to the company.
(C)
A foreign insurance company shall not be required to pay any
additional tax levied under section 5729.06 of the Revised Code as a
result of claiming the tax credit authorized under this section.
Sec.
5729.98.
(A)
To provide a uniform procedure for calculating the amount of tax due
under this chapter, a taxpayer shall claim any credits and offsets
against tax liability to which it is entitled in the following order:
The
credit for an insurance company or insurance company group under
section 5729.031 of the Revised Code;
The
credit for eligible employee training costs under section 5729.07 of
the Revised Code;
The
credit for purchases of qualified low-income community investments
under section 5729.16 of the Revised Code;
The
nonrefundable job retention credit under division (B) of section
122.171 of the Revised Code;
The
nonrefundable credit for investments in rural business growth funds
under section 122.152 of the Revised Code;
The
nonrefundable Ohio low-income housing tax credit under section
5729.19 of the Revised Code;
The
nonrefundable affordable single-family home credit under section
5729.20 of the Revised Code;
The
nonrefundable credit for contributing capital to a transformational
mixed use development project under section 5729.18 of the Revised
Code;
The
nonrefundable opportunity zone investment credit under section
5729.21 of the Revised Code;
The
offset of assessments by the Ohio life and health insurance guaranty
association against tax liability permitted by section 3956.20 of the
Revised Code;
The
refundable credit for rehabilitating a historic building under
section 5729.17 of the Revised Code;
The
refundable credit for Ohio job retention under former division (B)(2)
or (3) of section 122.171 of the Revised Code as those divisions
existed before September 29, 2015, the effective date of the
amendment of this section by H.B. 64 of the 131st general assembly;
The
refundable credit for Ohio job creation under section 5729.032 of the
Revised Code;
The
refundable credit under section 5729.08 of the Revised Code for
losses on loans made under the Ohio venture capital program under
sections 150.01 to 150.10 of the Revised Code
;
The
refundable credit for hiring certain veterans, service members, and
their spouses under section 5729.22 of the Revised Code
.
(B)
For any credit except the refundable credits enumerated in this
section, 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.
5736.51.
(A)
As used in this section, "tax credit certificate" has the
same meaning as in section 5751.55 of the Revised Code.
(B)
A taxpayer issued a tax credit certificate authorizing the taxpayer
to claim a credit against the tax levied under section 5736.02 of the
Revised Code may claim a credit against that tax equal to the amount
stated in the certificate. The credit shall be claimed for the tax
period preceding the tax period in which the certificate is issued
and after any credit authorized in section 5736.50 of the Revised
Code. Any credit amount in excess of the taxpayer's tax liability
shall be refunded to the taxpayer.
Sec.
5747.88.
(A)
As used in this section, "tax credit certificate" has the
same meaning as in section 5751.55 of the Revised Code.
(B)
There is allowed a refundable credit against a taxpayer's aggregate
tax liability under section 5747.02 of the Revised Code equal to the
amount stated in a tax credit certificate, to the extent the
certificate authorizes the credit to be claimed against that tax
liability. The credit shall be claimed for the taxable year preceding
the taxable year in which the certificate is issued and in the order
required by section 5747.98 of the Revised Code. Any credit amount in
excess of the taxpayer's tax liability, after allowing for any other
credits preceding the credit in that order, shall be refunded to the
taxpayer.
Nothing
in this section limits or disallows pass-through treatment of the
credit if the person to which the certificate is issued is a
pass-through entity.
Sec.
5747.98.
(A)
To provide a uniform procedure for calculating a taxpayer's aggregate
tax liability under section 5747.02 of the Revised Code, a taxpayer
shall claim any credits to which the taxpayer is entitled in the
following order:
Either
the retirement income credit under division (B) of section 5747.055
of the Revised Code or the lump sum retirement income credits under
divisions (C), (D), and (E) of that section;
Either
the senior citizen credit under division (F) of section 5747.055 of
the Revised Code or the lump sum distribution credit under division
(G) of that section;
The
dependent care credit under section 5747.054 of the Revised Code;
The
credit for displaced workers who pay for job training under section
5747.27 of the Revised Code;
The
twenty-dollar personal exemption credit under section 5747.022 of the
Revised Code;
The
joint filing credit under division (E) of section 5747.05 of the
Revised Code;
The
earned income credit under section 5747.71 of the Revised Code;
The
nonrefundable credit for education expenses under section 5747.72 of
the Revised Code;
The
nonrefundable credit for donations to scholarship granting
organizations under section 5747.73 of the Revised Code;
The
nonrefundable credit for tuition paid to a nonchartered nonpublic
school under section 5747.75 of the Revised Code;
The
nonrefundable vocational job credit under section 5747.057 of the
Revised Code;
The
nonrefundable job retention credit under division (B) of section
5747.058 of the Revised Code;
The
enterprise zone credit under section 5709.66 of the Revised Code;
The
credit for beginning farmers who participate in a financial
management program under division (B) of section 5747.77 of the
Revised Code;
The
credit for commercial vehicle operator training expenses under
section 5747.82 of the Revised Code;
The
nonrefundable welcome home Ohio (WHO) program credit under section
122.633 of the Revised Code;
The
nonrefundable credit for transformational mixed use development tax
credit certificate holders under section 5747.87 of the Revised Code;
The
credit for selling or renting agricultural assets to beginning
farmers under division (A) of section 5747.77 of the Revised Code;
The
credit for purchases of qualifying grape production property under
section 5747.28 of the Revised Code;
The
small business investment credit under section 5747.81 of the Revised
Code;
The
nonrefundable lead abatement credit under section 5747.26 of the
Revised Code;
The
opportunity zone investment credit under section 5747.86 of the
Revised Code;
The
enterprise zone credits under section 5709.65 of the Revised Code;
The
research and development credit under section 5747.331 of the Revised
Code;
The
credit for rehabilitating a historic building under section 5747.76
of the Revised Code;
The
nonrefundable Ohio low-income housing tax credit under section
5747.83 of the Revised Code;
The
nonrefundable affordable single-family home credit under section
5747.84 of the Revised Code;
The
nonresident credit under division (A) of section 5747.05 of the
Revised Code;
The
credit for a resident's out-of-state income under division (B) of
section 5747.05 of the Revised Code;
The
refundable motion picture and broadway theatrical production credit
under section 5747.66 of the Revised Code;
The
refundable jobs creation credit or job retention credit under
division (A) of section 5747.058 of the Revised Code;
The
refundable credit for taxes paid by a qualifying entity granted under
section 5747.059 of the Revised Code;
The
refundable credits for taxes paid by a qualifying pass-through entity
granted under division (I) of section 5747.08 of the Revised Code;
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;
The
refundable credit for rehabilitating a historic building under
section 5747.76 of the Revised Code;
The
refundable credit under section 5747.39 of the Revised Code for taxes
levied under section 5747.38 of the Revised Code paid by an electing
pass-through entity
;
The
refundable credit for hiring certain veterans, service members, and
their spouses under section 5747.88 of the Revised Code
.
(B)
For any credit, except the refundable credits enumerated in this
section and the credit granted under division (H) of section 5747.08
of the Revised Code, the amount of the credit for a taxable year
shall not exceed the taxpayer's aggregate amount of tax due under
section 5747.02 of the Revised Code, 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.
5751.55.
(A)
As used in this section:
(1)
"Qualifying employee" means a veteran, disabled veteran, or
a member of the national guard or the reserve components of the armed
forces of the United States, or the spouse of any such person.
(2)
"Credit period" means the calendar year for which a credit
is approved under division (B)(1) of this section, and the following
four calendar years, subject to division (B)(2) of this section.
(3)
"Tax credit certificate" means the certificate issued by
the tax commissioner under division (B)(1) or (2) of this section.
(B)(1)
An employer who employs a qualifying employee may submit an
application to the tax commissioner for a tax credit authorized by
this section. The application shall be made on a form and in a manner
that the commissioner shall prescribe. The application shall state
the qualifying employee's hiring date and, if applicable, termination
date, the total hours the qualifying employee worked in the preceding
calendar year, the tax against which the credit would be claimed, and
any other information the commissioner may require. An employer shall
submit the application on or before the fifteenth day of January.
The
commissioner shall evaluate applications in the order in which they
are received and issue a determination to an applicant no earlier
than the fifteenth day of January. If the commissioner denies an
application, the determination shall state the reason for the denial.
If the commissioner approves an application, the determination shall
include a certificate listing the amount of credit that the applicant
may claim and the tax against which it may be claimed.
(2)
A tax credit approved under division (B)(1) of this section may be
claimed for the calendar year in which the credit is approved and for
the four following calendar years, according to the number of hours
the qualifying employee works in each such year and provided the
qualifying employee remains employed with the applicant in each year
and the employer submits continuing applications as required in
division (B)(2) of this section.
Not
later than the first day of the December in the year in which a tax
credit certificate is issued under division (B)(1) of this section,
and the next three first days of December, the commissioner shall
furnish, by ordinary mail, a continuing application to each person
approved for the credit under that division. The continuing
application shall be used to report whether the qualifying employee
qualifies the employer for the credit because the employee is a
disabled veteran or another type of qualifying employee, the total
hours the qualifying employee worked in the preceding year, and the
tax against which the credit is sought, if different from the initial
application. The continuing application shall be submitted to the
commissioner not later than the thirty-first day of December.
The
commissioner shall issue a determination to an applicant after the
thirty-first day of December, but before the fifteenth day of the
following January. If the commissioner denies an application, the
determination shall state the reason for the denial. If the
commissioner approves an application, the determination shall include
a certificate listing the amount of credit that the applicant may
claim and the tax against which it may be claimed.
(3)
The commissioner may not approve more than one million dollars in tax
credits for a calendar year under divisions (B)(1) and (2) of this
section. The commissioner shall give priority to approving continuing
applications under division (B)(2) over initial applications under
division (B)(1) of this section when applying that limit.
(C)
The amount of a credit authorized by this section shall be calculated
as follows, subject to reduction under division (C)(3) of this
section:
(1)
For each qualifying employee who is a disabled veteran and who is
employed by the applicant for at least one hundred eighty days in the
preceding year, the amount of the credit for each year of the credit
period shall equal seven hundred fifty dollars, if employed by the
applicant for any period in the preceding year on a full-time basis,
or three hundred seventy-five dollars, if otherwise employed by the
applicant. The credit amount for a qualifying employee that is not a
disabled veteran for the initial credit year, but in a later year in
the credit period qualifies as a disabled veteran, shall be
calculated under division (C)(1) instead of division (C)(2) of this
section for each of those later years remaining in the credit period.
(2)
For any other qualifying employee who is employed by the applicant
for at least one hundred eighty days in the preceding year, one of
the following:
(a)
For the initial year of the credit period, five hundred dollars if
the employee is employed by the applicant for any period in the
preceding year on a full-time basis or two hundred fifty dollars if
the employee is otherwise employed by the applicant;
(b)
For any other year of the credit period, two hundred dollars if the
employee is employed by the applicant for any period in the preceding
year on a full-time basis or one hundred dollars if the employee is
otherwise employed by the applicant.
(3)
If a qualifying employee is employed by the applicant for fewer than
one hundred eighty days of the preceding year, then the amount of the
credit calculated under division (C)(1) or (2) of this section shall
equal the product of the otherwise applicable dollar amount under
that division and the percentage of the days of the year in which the
employee was employed by the applicant.
(D)
For each year of a credit period, an employer may claim a refundable
credit against the tax imposed under section 5725.18, 5726.02,
5727.24, 5727.30, 5729.03, 5736.02, 5747.02, or 5751.02 of the
Revised Code, as authorized by the tax credit certificate, equal to
the amount listed on that certificate. The credit shall be claimed in
the manner prescribed by division (E) of this section or by section
5725.39, 5726.63, 5727.242, 5727.301, 5729.22, 5736.51, or 5747.88 of
the Revised Code, as applicable.
(E)
A taxpayer issued a tax credit certificate authorizing the taxpayer
to claim a credit against the tax levied under section 5751.02 of the
Revised Code may claim a credit against that tax equal to the amount
stated in the certificate. The credit shall be claimed for the tax
period preceding the tax period in which the certificate is issued
and in the order required by section 5751.98 of the Revised Code. Any
credit amount in excess of the taxpayer's tax liability, after
allowing for any other credits preceding the credit in that order,
shall be refunded to the taxpayer.
(F)(1)
The tax commissioner shall adopt any rules necessary to implement
this section. Such rules shall include all of the following:
(a)
Criteria to evaluate whether an employee is a qualifying employee;
(b)
Criteria to evaluate whether a qualifying employee was employed
full-time or less than full-time in the preceding year;
(c)
Supplementary definitions as may be necessary to administer this
section.
(2)
Notwithstanding any provision of section 121.95 of the Revised Code
to the contrary, a regulatory restriction contained in a rule adopted
under this section is not subject to sections 121.95 to 121.953 of
the Revised Code.
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:
The
nonrefundable jobs retention credit under division (B) of section
5751.50 of the Revised Code;
The
nonrefundable credit for qualified research expenses under division
(B) of section 5751.51 of the Revised Code;
The
nonrefundable credit for a borrower's qualified research and
development loan payments under division (B) of section 5751.52 of
the Revised Code;
The
nonrefundable credit for unused net operating losses under section
5751.53 of the Revised Code;
The
refundable motion picture and broadway theatrical production credit
under section 5751.54 of the Revised Code;
The
refundable jobs creation credit or job retention credit under
division (A) of section 5751.50 of the Revised Code
;
The
refundable credit for hiring certain veterans, service members, and
their spouses under section 5751.55 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 5725.98, 5726.98, 5729.98, 5747.98, and 5751.98 of
the Revised Code are hereby repealed.
Section
3.
The
enactment by this act of sections 5725.39, 5726.63, 5727.242,
5727.301, 5729.22, 5736.51, 5747.88, and 5751.55 of the Revised Code
applies to qualifying employees hired as described in section 5751.55
of the Revised Code on or after the first day of the first January
following the effective date of this section.