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As Introduced
136th
General Assembly
Regular
Session
H. B. No. 704
2025-2026
Representative Williams
To
amend sections 5725.38, 5725.98, 5726.61, 5726.98, 5729.21, 5729.98,
5747.86, and 5747.98 and to enact section 122.841 of the Revised Code
to
authorize a nonrefundable, transferable tax credit for charitable
organizations that construct owner-occupied housing and to name this
act the Promised Land Act.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 5725.38, 5725.98, 5726.61, 5726.98, 5729.21, 5729.98,
5747.86, and 5747.98 be amended and section 122.841 of the Revised
Code be enacted to read as follows:
Sec.
122.841.
(A)
As used in this section:
(1)
"Eligible nonprofit organization" means an entity organized
and operated exclusively for charitable purposes and recognized as
exempt from federal income taxation under section 501(c)(3) of the
Internal Revenue Code, which may be a church as defined by section
1710.01 of the Revised Code.
(2)
"Development period" means the six-month period from the
first day of January to the thirtieth day of June, or from the first
day of July to the thirty-first day of December.
(3)
"Business day" has the same meaning as in section 122.84 of
the Revised Code.
(B)
An eligible nonprofit organization that owns, in fee simple, real
property in this state, and that facilitates the construction of
housing on at least one acre of that property may apply to the
director of development for a nonrefundable credit against the tax
levied under section 5725.18, 5726.02, 5729.03, or 5747.02 of the
Revised Code after one or more units of the housing are sold to an
owner-occupant for use as the owner-occupant's primary residence.
Sales of housing to an owner-occupant need not include transfer of
fee simple ownership of the underlying land to qualify for a credit
authorized by this section, but must include transfer of ownership of
the housing unit and at least a leasehold interest in the underlying
land.
The
application shall be made on forms prescribed by the director. The
director shall accept and review applications submitted under this
section during two annual periods, the first of which begins on the
tenth day of January and ends after the first day of February, and
the second of which begins on the tenth day of July and ends after
the first day of August. If any of those dates fall on a day that is
not a business day, then the application period begins on or ends
after the next business day, as applicable. The credit shall equal
ten per cent of the total cost to construct the housing, including
the cost or value of real property on which the housing is built.
The
eligible nonprofit organization shall include the following
information with its application:
(1)
The number of housing units the organization facilitated construction
of that were sold to owner-occupants for use as a primary residence
during the immediately preceding development period;
(2)
The aggregate acreage of all parcels on which the housing units were
constructed;
(3)
The amount spent to construct each unit. If the costs include land
acquisition costs from the purchase of land on which multiple units
were constructed, the organization shall apportion the land costs or
value to each unit in proportion to the unit's share of the total
amount of livable square footage.
(4)
Any other information the director may require.
The
director shall review and process applications in the order in which
they are received.
(C)
An eligible nonprofit organization shall be deemed to have
facilitated the construction of housing if it enters into an
agreement with another person under which the eligible nonprofit
organization provides real property through contribution, lease, or
similar arrangement, and the other person finances and constructs
housing on the real property.
(D)
An agreement described in division (C) of this section, an agreement
to transfer ownership of housing to an owner-occupant, and documents
of title transferring such ownership may include any terms that are
not contrary to the terms of this section without affecting
eligibility for the tax credit authorized by this section. Such terms
may include provisions to preserve affordability and owner-occupancy.
(E)(1)
Subject to division (E)(2) of this section, if the director
determines that the applicant qualifies for a credit under this
section, the director shall issue, within sixty days after the last
day on which an application may be submitted for that application
period, a tax credit certificate to the applicant identified with a
unique number and listing the amount of credit the director
determines is eligible to be claimed or transferred.
(2)
The total amount of tax credits issued by the director shall not
exceed twenty-five million dollars for any fiscal year.
The
director shall not issue certificates to a single applicant in any
fiscal biennium in a credit amount that exceeds two million dollars.
(3)
The credit may be claimed by a person under section 5725.38, 5726.61,
5729.21, or 5747.86 of the Revised Code, as applicable. An eligible
nonprofit organization that is not subject to taxation under section
5725.18, 5726.02, 5729.03, or 5747.02 of the Revised Code shall not
claim the credit but may transfer the right to claim the credit under
division (G) of this section.
(4)
The eligible nonprofit organization shall be the sole applicant of
any tax credit awarded under this section, regardless of whether
another person finances or constructs the housing improvements.
(5)
In awarding tax credit certificates, the director of development may
grant preference to applications that incorporate ground lease
arrangements, deed restrictions, or other mechanisms designed to
preserve affordability and owner-occupancy.
(F)
A taxpayer claiming a credit through a certificate issued under this
section shall submit a copy of the certificate with the taxpayer's
return or report.
(G)
A person that holds a wholly or partially unclaimed certificate
issued under this section may transfer the right to claim all or part
of the remaining credit to any other person. To effectuate the
transfer, the transferor shall notify the tax commissioner, in
writing, that the transferor is transferring the right to claim all
or part of the remaining credit stated on the certificate. The
transferor shall identify in that notification the certificate's
number, the name and the tax identification number of the transferee,
the amount of remaining credit transferred to the transferee, and, if
applicable, the amount of remaining credit retained by the
transferor. The transferee may claim the amount of credit received
under this division pursuant to and in the manner required under
divisions (E)(3) and (F) of this section. Transferring a credit under
this division does not extend the taxable year or calendar year for
which the credit may be claimed or number of years for which the
unclaimed credit amount may be carried forward under section 5725.38,
5726.61, 5729.21, or 5747.86 of the Revised Code, as applicable.
Any
person to which a credit has been transferred under this division may
transfer the right to claim all or part of the transferred credit
amount to any other person, in the same manner prescribed by this
division for the initial transfer, including that any such transfer
be reported by the transferor to the tax commissioner as described in
this division.
(H)
On or before the first day of August each year, the director of
development shall submit a report to the governor, the president and
minority leader of the senate, and the speaker and minority leader of
the house of representatives on the tax credit program authorized
under this section. The report shall include the number of
owner-occupied housing units for which a tax credit application was
submitted under this section during the preceding year, the address
of each unit, and the number of owner-occupied housing units for
which certificates were issued during the preceding year.
(I)
The tax credit authorized by this section shall be known as "the
promised land credit."
Sec.
5725.38.
Terms
used in this section have the same meanings as in section 122.84 of
the Revised Code.
There
is allowed a nonrefundable credit against the tax imposed by section
5725.18 of the Revised Code for a domestic insurance company that is
issued, or to which is transferred, a tax credit certificate under
section 122.84
or
122.841
of
the Revised Code. The credit equals the amount stated on the
certificate and may be claimed for the calendar year that includes
the investment period
or
development period
that
was the subject of the application for the certificate under
that
the
applicable
section
or for the ensuing calendar year. For a credit issued
under
section 122.84 of the Revised Code
during
the July application round each year, the credit may also be claimed
for the preceding calendar year. A taxpayer applying
a
that
credit
for the preceding calendar year shall file an amended return or apply
that amendment on the taxpayer's original return, for that year.
The
A
credit
authorized in this section shall be claimed in the order required
under section 5725.98 of the Revised Code. If the amount of a credit
exceeds the tax otherwise due under section 5725.18 of the Revised
Code after deducting all other credits preceding the credit in that
order, the excess may be carried forward for not more than five
ensuing calendar years. The amount of the excess credit claimed in
any such year shall be deducted from the balance carried forward to
the next calendar year.
No
credit shall be claimed under this section to the extent the credit
was claimed under section 5726.61, 5729.21, or 5747.86 of the Revised
Code.
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
nonrefundable promised land 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.
(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.
5726.61.
Terms
used in this section have the same meanings as in section 122.84 of
the Revised Code.
A
taxpayer may claim a nonrefundable credit against the tax imposed
under section 5726.02 of the Revised Code for each person included in
the annual report of the taxpayer to whom a certificate is issued
or
transferred
under
section 122.84
or
122.841
of
the Revised Code
or is transferred pursuant to that section
.
The credit equals the amount stated on the certificate and may be
claimed for the taxable year that aligns with the calendar year that
includes the investment period
or
development period
that
was the subject of the application for the certificate under
that
the
applicable
section
or for the ensuing calendar year. For a credit issued
under
section 122.84 of the Revised Code
during
the July application round each year, the credit may also be claimed
for the preceding taxable year. A taxpayer applying
a
that
credit
for the preceding taxable year shall file an amended report or apply
that amendment on the taxpayer's original report, for that year.
The
A
credit
authorized in this section shall be claimed in the order required
under section 5726.98 of the Revised Code. If the amount of a credit
exceeds the tax otherwise due under section 5726.02 of the Revised
Code after deducting all other credits preceding the credit in that
order, the excess may be carried forward for not more than five
ensuing taxable years. The amount of the excess credit claimed in any
such year shall be deducted from the balance carried forward to the
next taxable year.
No
credit shall be claimed under this section to the extent the credit
was claimed under section 5725.38, 5729.21, or 5747.86 of the Revised
Code.
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
nonrefundable promised land 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.
(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.
5729.21.
Terms
used in this section have the same meanings as in section 122.84 of
the Revised Code.
There
is allowed a nonrefundable credit against the tax imposed by section
5729.03 of the Revised Code for a foreign insurance company that is
issued, or to which is transferred, a tax credit certificate under
section 122.84
or
122.841
of
the Revised Code. The credit equals the amount stated on the
certificate and may be claimed for the calendar year that includes
the investment period
or
development period
that
was the subject of the application for the certificate under
that
the
applicable
section
or for the ensuing calendar year. For a credit issued
under
section 122.84 of the Revised Code
during
the July application round each year, the credit may also be claimed
for the preceding calendar year. A taxpayer applying
a
that
credit
for the preceding calendar year shall file an amended return or apply
that amendment on the taxpayer's original return, for that year.
The
A
credit
authorized in this section shall be claimed in the order required
under section 5729.98 of the Revised Code. If the amount of a credit
exceeds the tax otherwise due under section 5729.03 of the Revised
Code after deducting all other credits preceding the credit in that
order, the excess may be carried forward for not more than five
ensuing calendar years. The amount of the excess credit claimed in
any such year shall be deducted from the balance carried forward to
the next calendar year.
No
credit shall be claimed under this section to the extent the credit
was claimed under section 5725.38, 5726.61, or 5747.86 of the Revised
Code.
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
a
tax
credit authorized by 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
nonrefundable promised land 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.
(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.
5747.86.
Terms
used in this section have the same meanings as in section 122.84 of
the Revised Code.
There
is hereby allowed a nonrefundable credit against a taxpayer's
aggregate tax liability under section 5747.02 of the Revised Code for
a taxpayer who is issued, or to whom is transferred, a tax credit
certificate under section 122.84
or
122.841
of
the Revised Code. The credit equals the amount stated on the
certificate and may be claimed for the taxable year that includes the
first day of the investment period
or
development period
that
was the subject of the application for the certificate under
that
the
applicable
section
or for the ensuing taxable year. For a credit issued
under
section 122.84 of the Revised Code
during
the July application round each year, the credit may also be claimed
for the preceding taxable year. A taxpayer applying
a
that
credit
for the preceding taxable year shall file an amended return or apply
that amendment on the taxpayer's original return, for that year.
If
the certificate is held by a pass-through entity, any taxpayer that
is a direct or indirect investor in the pass-through entity on the
last day of the entity's qualifying taxable year may claim the
taxpayer's proportionate or distributive share of the credit against
the taxpayer's aggregate amount of tax levied under section 5747.02
of the Revised Code.
The
credit shall be claimed in the order required under section 5747.98
of the Revised Code. If the credit exceeds the taxpayer's aggregate
tax due under section 5747.02 of the Revised Code for that taxable
year after allowing for credits that precede the credit under this
section in that order, such excess shall be allowed as a credit in
each of the ensuing five taxable years, but the amount of any excess
credit allowed in any such taxable year shall be deducted from the
balance carried forward to the ensuing taxable year.
No
credit shall be claimed under this section to the extent the credit
was claimed under section 5725.38, 5726.61, or 5729.21 of the Revised
Code.
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
nonrefundable promised land 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.
(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.
Section
2.
That
existing sections 5725.38, 5725.98, 5726.61, 5726.98, 5729.21,
5729.98, 5747.86, and 5747.98 of the Revised Code are hereby
repealed.
Section
3.
This
act shall be known as the Promised Land Act.