Allow area agency on aging to couple certain housing tax credits

hb925_00_IN

As Introduced

136th
General Assembly

Regular
Session
H. B. No. 925

2025-2026

Representative Williams

To
amend sections 149.311 and 175.16 of the Revised Code
to
allow area agencies on aging to couple the state historic
rehabilitation and low-income housing tax credits and require a
minimum price for low-income housing tax credits transferred by area
agencies on aging.

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

Section
1.
That
sections 149.311 and 175.16 of the Revised Code be amended to read as
follows:

Sec.
149.311.
(A)
As used in this section:

(1)
"Historic building" means a building, including its
structural components, that is located in this state and that is
either individually listed on the national register of historic
places under 16 U.S.C. 470a, located in a registered historic
district, and certified by the state historic preservation officer as
being of historic significance to the district, or is individually
listed as an historic landmark designated by a local government
certified under 16 U.S.C. 470a(c).

(2)
"Qualified rehabilitation expenditures" means expenditures
paid or incurred during the rehabilitation period, and before and
after that period as determined under 26 U.S.C. 47, by an owner or
qualified lessee of an historic building to rehabilitate the
building. "Qualified rehabilitation expenditures" includes
architectural or engineering fees paid or incurred in connection with
the rehabilitation, and expenses incurred in the preparation of
nomination forms for listing on the national register of historic
places. "Qualified rehabilitation expenditures" does not
include any of the following:

(a)
The cost of acquiring, expanding, or enlarging an historic building;

(b)
Expenditures attributable to work done to facilities related to the
building, such as parking lots, sidewalks, and landscaping;

(c)
New building construction costs.

(3)
"Owner" of an historic building means a person holding the
fee simple interest in the building. "Owner" does not
include the state or a state agency, or any political subdivision as
defined in section 9.23 of the Revised Code.

(4)
"Qualified lessee" means a person subject to a lease
agreement for an historic building and eligible for the federal
rehabilitation tax credit under 26 U.S.C. 47. "Qualified lessee"
does not include the state or a state agency or political subdivision
as defined in section 9.23 of the Revised Code.

(5)
"Certificate owner" means the owner or qualified lessee of
an historic building to which a rehabilitation tax credit certificate
was issued under this section.

(6)
"Registered historic district" means an historic district
listed in the national register of historic places under 16 U.S.C.
470a, an historic district designated by a local government certified
under 16 U.S.C. 470a(c), or a local historic district certified under
36 C.F.R. 67.8 and 67.9.

(7)
"Rehabilitation" means the process of repairing or altering
an historic building or buildings, making possible an efficient use
while preserving those portions and features of the building and its
site and environment that are significant to its historic,
architectural, and cultural values.

(8)
"Rehabilitation period" means one of the following:

(a)
If the rehabilitation initially was not planned to be completed in
stages, a period chosen by the owner or qualified lessee not to
exceed twenty-four months during which rehabilitation occurs;

(b)
If the rehabilitation initially was planned to be completed in
stages, a period chosen by the owner or qualified lessee not to
exceed sixty months during which rehabilitation occurs. Each stage
shall be reviewed as a phase of a rehabilitation as determined under
26 C.F.R. 1.48-12 or a successor to that section.

(9)
"State historic preservation officer" or "officer"
means the state historic preservation officer appointed by the
governor under 16 U.S.C. 470a.

(10)
"Catalytic project" means the rehabilitation of an historic
building, the rehabilitation of which will foster economic
development within two thousand five hundred feet of the historic
building.

(B)
The owner or qualified lessee of an historic building may apply to
the director of development for a rehabilitation tax credit
certificate for qualified rehabilitation expenditures paid or
incurred by such owner or qualified lessee after April 4, 2007, for
rehabilitation of an historic building. If the owner of an historic
building enters a pass-through agreement with a qualified lessee for
the purposes of the federal rehabilitation tax credit under 26 U.S.C.
47, the qualified rehabilitation expenditures paid or incurred by the
owner after April 4, 2007, may be attributed to the qualified lessee.

The
form and manner of filing such applications shall be prescribed by
rule of the director. Each application shall state the amount of
qualified rehabilitation expenditures the applicant estimates will be
paid or incurred and shall indicate whether the historic building was
used as a theater before, and is intended to be used as a theater
after, the rehabilitation. The director may require applicants to
furnish documentation of such estimates.

The
director, after consultation with the tax commissioner and in
accordance with Chapter 119. of the Revised Code, shall adopt rules
that establish all of the following:

(1)
Forms and procedures by which applicants may apply for rehabilitation
tax credit certificates;

(2)
Criteria for reviewing, evaluating, and approving applications for
certificates within the limitations under division (D) of this
section, criteria for assuring that the certificates issued encompass
a mixture of high and low qualified rehabilitation expenditures, and
criteria for issuing certificates under division (C)(3)(b) of this
section;

(3)
Eligibility requirements for obtaining a certificate under this
section;

(4)
The form of rehabilitation tax credit certificates;

(5)
Reporting requirements and monitoring procedures;

(6)
Procedures and criteria for conducting cost-benefit analyses of
historic buildings that are the subjects of applications filed under
this section. The purpose of a cost-benefit analysis shall be to
determine whether rehabilitation of the historic building will result
in a net revenue gain in state and local taxes once the building is
used.

(7)
Any other rules necessary to implement and administer this section.

(C)
The director shall review the applications with the assistance of the
state historic preservation officer and determine whether all of the
following criteria are met:

(1)
That the building that is the subject of the application is an
historic building and the applicant is the owner or qualified lessee
of the building;

(2)
That the rehabilitation will satisfy standards prescribed by the
United States secretary of the interior under 16 U.S.C. 470, et seq.,
as amended, and 36 C.F.R. 67.7 or a successor to that section;

(3)
That receiving a rehabilitation tax credit certificate under this
section is a major factor in:

(a)
The applicant's decision to rehabilitate the historic building; or

(b)
To increase the level of investment in such rehabilitation.

(4)

The

If
the applicant is not an area agency on aging, as defined in section
173.14 of the Revised Code, the
historic
building that is the subject of the application is not, and will not
upon completion of the rehabilitation project be, part of a qualified
low-income housing project allocated a tax credit pursuant to section
42 of the Internal Revenue Code.

An
applicant shall demonstrate to the satisfaction of the state historic
preservation officer and director that the rehabilitation will
satisfy the standards described in division (C)(2) of this section
before the applicant begins the physical rehabilitation of the
historic building.

(D)(1)
If the director determines that an application meets the criteria in
division (C) of this section, the director shall conduct a
cost-benefit analysis for the historic building that is the subject
of the application to determine whether rehabilitation of the
historic building will result in a net revenue gain in state and
local taxes once the building is used. The director shall consider
the results of the cost-benefit analysis in determining whether to
approve the application. The director shall also consider the
potential economic impact and the regional distributive balance of
the credits throughout the state. The director shall not consider
whether the historic building is located in or will benefit an
economically distressed area, including by weighting preference based
on the poverty rate in the jurisdiction or census tract in which the
building is located, nor shall the director consider or give weighted
preference based on vacancy or underutilization of the building. The
director may approve an application only after completion of the
cost-benefit analysis.

(2)
A rehabilitation tax credit certificate shall not be issued for an
amount greater than the estimated amount furnished by the applicant
on the application for such certificate and approved by the director.
The director shall not approve more than a total of seventy-five
million dollars of rehabilitation tax credits for each of fiscal
years 2023 and 2024, and for each fiscal year thereafter, but the
director may reallocate unused tax credits from a prior fiscal year
for new applicants and such reallocated credits shall not apply
toward the dollar limit of this division.

(3)
For rehabilitations with a rehabilitation period not exceeding
twenty-four months as provided in division (A)(8)(a) of this section,
a rehabilitation tax credit certificate shall not be issued before
the rehabilitation of the historic building is completed.

(4)
For rehabilitations with a rehabilitation period not exceeding sixty
months as provided in division (A)(8)(b) of this section, a
rehabilitation tax credit certificate shall not be issued before a
stage of rehabilitation is completed. After all stages of
rehabilitation are completed, if the director cannot determine that
the criteria in division (C) of this section are satisfied for all
stages of rehabilitations, the director shall certify this finding to
the tax commissioner, and any rehabilitation tax credits received by
the applicant shall be repaid by the applicant and may be collected
by assessment as unpaid tax by the commissioner.

(5)
The director shall require the applicant to provide a third-party
cost certification by a certified public accountant of the actual
costs attributed to the rehabilitation of the historic building when
qualified rehabilitation expenditures exceed two hundred thousand
dollars.

If
an applicant whose application is approved for receipt of a
rehabilitation tax credit certificate fails to provide to the
director sufficient evidence of reviewable progress, including a
viable financial plan, copies of final construction drawings, and
evidence that the applicant has obtained all historic approvals
within twelve months after the date the applicant received
notification of approval, and if the applicant fails to provide
evidence to the director that the applicant has secured and closed on
financing for the rehabilitation within eighteen months after
receiving notification of approval, the director may rescind the
approval of the application. The director shall notify the applicant
if the approval has been rescinded. Credits that would have been
available to an applicant whose approval was rescinded shall be
available for other qualified applicants. Nothing in this division
prohibits an applicant whose approval has been rescinded from
submitting a new application for a rehabilitation tax credit
certificate.

(6)
The director may approve the application of, and issue a
rehabilitation tax credit certificate to, the owner of a catalytic
project, provided the application otherwise meets the criteria
described in divisions (C) and (D) of this section. The director may
not approve more than one application for a rehabilitation tax credit
certificate under division (D)(6) of this section during each state
fiscal biennium. The director shall not approve an application for a
rehabilitation tax credit certificate under division (D)(6) of this
section during the state fiscal biennium beginning July 1, 2017, or
during any state fiscal biennium thereafter. The director shall
consider the following criteria in determining whether to approve an
application for a certificate under division (D)(6) of this section:

(a)
Whether the historic building is a catalytic project;

(b)
The effect issuance of the certificate would have on the availability
of credits for other applicants that qualify for a credit certificate
within the credit dollar limit described in division (D)(2) of this
section;

(c)
The number of jobs, if any, the catalytic project will create.

(7)(a)
The owner or qualified lessee of a historic building may apply for a
rehabilitation tax credit certificate under both divisions (B) and
(D)(6) of this section. In such a case, the director shall consider
each application at the time the application is submitted.

(b)
The director shall not issue more than one certificate under this
section with respect to the same qualified rehabilitation
expenditures.

(8)
The director shall give consideration for tax credits awarded under
this section to rehabilitations of historic buildings used as a
theater before, and intended to be used as a theater after, the
rehabilitation. In determining whether to approve an application for
such a rehabilitation, the director shall consider the extent to
which the rehabilitation will increase attendance at the theater and
increase the theater's gross revenue.

(9)
The director shall rescind the approval of any application
,
other than an application from an area agency on aging as defined in
section 173.14 of the Revised Code,

if the building that is the subject of the application is part of a
qualified low-income housing project allocated a tax credit pursuant
to section 42 of the Internal Revenue Code at any time before the
building's rehabilitation is complete.

(E)
Issuance of a certificate represents a finding by the director of the
matters described in divisions (C)(1), (2), and (3) of this section
only; issuance of a certificate does not represent a verification or
certification by the director of the amount of qualified
rehabilitation expenditures for which a tax credit may be claimed
under section 5725.151, 5725.34, 5726.52, 5729.17, 5733.47, or
5747.76 of the Revised Code. The amount of qualified rehabilitation
expenditures for which a tax credit may be claimed is subject to
inspection and examination by the tax commissioner or employees of
the commissioner under section 5703.19 of the Revised Code and any
other applicable law. Upon the issuance of a certificate, the
director shall certify to the tax commissioner, in the form and
manner requested by the tax commissioner, the name of the applicant,
the amount of qualified rehabilitation expenditures shown on the
certificate, and any other information required by the rules adopted
under this section.

(F)(1)
On or before the first day of August each year, the director and tax
commissioner jointly shall submit to the president of the senate and
the speaker of the house of representatives a report on the tax
credit program established under this section and sections 5725.151,
5725.34, 5726.52, 5729.17, 5733.47, and 5747.76 of the Revised Code.
The report shall present an overview of the program and shall include
information on the number of rehabilitation tax credit certificates
issued under this section during the preceding fiscal year, an update
on the status of each historic building for which an application was
approved under this section, the dollar amount of the tax credits
granted under sections 5725.151, 5725.34, 5726.52, 5729.17, 5733.47,
and 5747.76 of the Revised Code, and any other information the
director and commissioner consider relevant to the topics addressed
in the report.

(2)
On or before December 1, 2015, the director and tax commissioner
jointly shall submit to the president of the senate and the speaker
of the house of representatives a comprehensive report that includes
the information required by division (F)(1) of this section and a
detailed analysis of the effectiveness of issuing tax credits for
rehabilitating historic buildings. The report shall be prepared with
the assistance of an economic research organization jointly chosen by
the director and commissioner.

(G)
There is hereby created in the state treasury the historic
rehabilitation tax credit operating fund. The director is authorized
to charge reasonable application and other fees in connection with
the administration of tax credits authorized by this section and
sections 5725.151, 5725.34, 5726.52, 5729.17, 5733.47, and 5747.76 of
the Revised Code. Any such fees collected shall be credited to the
fund and used to pay reasonable costs incurred by the department of
development in administering this section and sections 5725.151,
5725.34, 5726.52, 5729.17, 5733.47, and 5747.76 of the Revised Code.

The
Ohio historic preservation office is authorized to charge reasonable
fees in connection with its review and approval of applications under
this section. Any such fees collected shall be credited to the fund
and used to pay administrative costs incurred by the Ohio historic
preservation office pursuant to this section.

(H)
Notwithstanding sections 5725.151, 5725.34, 5726.52, 5729.17,
5733.47, and 5747.76 of the Revised Code, the certificate owner of a
tax credit certificate issued under division (D)(6) of this section
may claim a tax credit equal to twenty-five per cent of the dollar
amount indicated on the certificate for a total credit of not more
than twenty-five million dollars. The credit claimed by such a
certificate owner for any calendar year, tax year, or taxable year
under section 5725.151, 5725.34, 5726.52, 5729.17, 5733.47, or
5747.76 of the Revised Code shall not exceed five million dollars. If
the certificate owner is eligible for more than five million dollars
in total credits, the certificate owner may carry forward the balance
of the credit in excess of the amount claimed for that year for not
more than five ensuing calendar years, tax years, or taxable years.
If the credit claimed in any calendar year, tax year, or taxable year
exceeds the tax otherwise due, the excess shall be refunded to the
taxpayer.

(I)
Notwithstanding sections 5725.151, 5725.34, 5726.52, 5729.17,
5733.47, and 5747.76 of the Revised Code, the following apply to a
tax credit approved under this section after September 13, 2022, and
before July 1, 2024:

(1)
The certificate holder may claim a tax credit equal to thirty-five
per cent of the dollar amount indicated on the tax credit certificate
if any county, township, or municipal corporation within which the
project is located has a population of less than three hundred
thousand according to the 2020 decennial census. The tax credit
equals twenty-five per cent of the dollar amount indicated on the
certificate if the project is not located within such a county,
township, or municipal corporation.

(2)
The total tax credit claimed under section 5725.151, 5725.34,
5726.52, 5729.17, 5733.47, or 5747.76 of the Revised Code for any one
project shall not exceed ten million dollars for any calendar year,
tax year, or taxable year.

(3)
If the credit claimed in any calendar year, tax year, or taxable year
exceeds the tax otherwise due, the excess shall be refunded to the
taxpayer, subject to division (I)(2) of this section.

(J)
Notwithstanding sections 5725.151, 5725.34, 5726.52, 5729.17,
5733.47, and 5747.76 of the Revised Code, the certificate owner of a
tax credit certificate may claim a tax credit equal to thirty-five
per cent of the dollar amount of qualified rehabilitation
expenditures indicated on the certificate if the project for which
the certificate was issued is located in a municipal corporation with
a population of less than three hundred thousand or in the
unincorporated area of a township.

(K)
The director of development, in consultation with the director of
budget and management, shall develop and adopt a system of tracking
any information necessary to anticipate the impact of credits issued
under this section on tax revenues for current and future fiscal
years. Such information may include the number of applications
approved, the estimated rehabilitation expenditures and
rehabilitation period associated with such applications, the number
and amount of tax credit certificates issued, and any other
information the director of budget and management requires for the
purposes of this division.

(L)
For purposes of this section and Chapter 122:19-1 of the Ohio
Administrative Code, a tax credit certificate issued under this
section is effective on the date that all historic buildings
rehabilitated by the project are "placed in service," as
that term is used in section 47 of the Internal Revenue Code.

Sec.
175.16.
(A)
As used in this section:

(1)
"Federal credit" means the tax credit authorized under
section 42 of the Internal Revenue Code.

(2)
"Credit period," "qualified low-income building,"
and "qualified basis" have the same meanings as in section
42 of the Internal Revenue Code.

(3)
"Qualified project" means a qualified low-income building
that is located in Ohio, is placed in service on or after July 1,
2023, and for which the director reserves a tax credit under division
(B) of this section before July 1, 2027.

(4)
"Pass-through entity" has the same meaning as in section
5733.04 of the Revised Code.

(5)
"Project owner" means a person holding a fee simple
interest or a leasehold interest pursuant to a ground lease in the
land on which a qualified project sits.

(6)
"Reserved credit amount" means the amount determined by the
director and stipulated in the notice sent to each owner of a
qualified project under division (B) of this section.

(7)
"Annual credit amount" means the amount computed by the
director under division (D) of this section prior to issuing an
eligibility certificate.

(8)
"Equity owner" means a direct or indirect owner of a
project owner, provided the project owner is a pass-through entity,
as determined under applicable state law governing such an entity.

(9)
"Person" has the same meaning as in section 5701.01 of the
Revised Code.

(10)
"Eligibility certificate" means a certificate issued by the
director to each owner of a qualified project under division (D) of
this section stating the amount of credit that may be claimed for
each year of the credit period.

(11)
"Qualified allocation plan" means the plan developed by the
Ohio housing finance agency, as required under section 175.06 of the
Revised Code, for evaluating and selecting projects for the federal
credit pursuant to the mandates and requirements within section 42 of
the Internal Revenue Code.

(12)
"Internal Revenue Code" has the same meaning as in section
5747.01 of the Revised Code.

(13)
"Designated reporter" means the project owner or one of the
project owner's equity owners designated pursuant to division (I)(1)
of this section.

(14)
"Director" means the executive director of the Ohio housing
finance agency.

(B)
Except as otherwise provided by this division, the director, upon
allocating a federal credit and issuing a binding reservation or
letter of eligibility, pursuant to the Ohio housing finance agency's
qualified allocation plan, for a qualified low-income building that
is located in this state and placed in service on or after July 1,
2023, may reserve a tax credit under this section for the project
owners so long as doing so will not result in exceeding the annual
credit cap prescribed by division (C) of this section. The director
shall not reserve a tax credit under this section after June 30,
2027.

The
director shall send written notice of the reservation to each project
owner. The notice shall state the aggregate credit amount reserved
for all years of the qualified project's credit period and stipulate
that receipt of the credit is contingent upon issuance of an
eligibility certificate and filing the information described in
division (I) of this section. Upon receipt of that notice, the owner
shall provide the identity of the owner's designated reporter to the
director.

The
director shall determine the credit amount reserved for each
qualified project. The reserved credit amount shall not exceed the
amount necessary, when combined with the federal credit, to ensure
the financial feasibility of the qualified project.

The
director shall reserve credits in a manner that ensures that a
qualified project is creating additional housing units that would not
have otherwise been created with other state, federal, or private
financing. The director may assess application, processing, and
reporting fees to cover the cost of administering the tax credit
authorized under this section.

(C)
The aggregate amount of credits reserved by the director under
division (B) of this section in a fiscal year shall not exceed the
sum of (1) one hundred million dollars, (2) the amount, if any, by
which the credit cap prescribed by this division for the preceding
fiscal year exceeds the credits reserved by the director in that
year, and (3) the amount of tax credits recaptured or otherwise
disallowed under division (G) of this section in the preceding fiscal
year.

For
the purpose of computing and determining compliance with the credit
cap prescribed by this division, the credit amount reserved for the
project owners of a qualified project is the full amount for all
years of the qualified project's credit period.

(D)
Immediately after approving the final cost certification for a
qualified project for which a tax credit under this section is
reserved, or upon otherwise determining the qualified basis of the
qualified project and the date it was placed into service as required
by section 42(m) of the Internal Revenue Code, the director shall
compute the annual credit amount and issue an eligibility certificate
to each project owner. The director shall send copies of all
eligibility certificates issued each calendar year to the tax
commissioner and the superintendent of insurance.

The
annual credit amount shall equal the lesser of the following:

(1)
The amount of the federal credit that would be awarded to the project
owners for the first year of the credit period if not for the
adjustment required under section 42(f)(2) of the Internal Revenue
Code;

(2)
One-tenth of the reserved credit amount stated in the notice issued
under division (B) of this section.

(E)
Each eligibility certificate shall state the annual credit amount,
the years that comprise the credit period, the name, address, and
taxpayer identification number of each project owner, each owner's
designated reporter, the date the certificate is issued, a unique
identifying number, and any additional information prescribed by a
rule adopted under division (H) of this section. A project owner, if
the project owner is a pass-through entity, shall provide a copy of
the eligibility certificate and any information described in division
(I) of this section to each equity owner that has been allocated a
credit under division (F)(2) of this section, if requested.

(F)(1)
For each year of a qualified project's credit period, the project
owner or an equity owner may claim a nonrefundable credit against the
tax imposed by section 5725.18, 5726.02, 5729.03, 5729.06, or 5747.02
of the Revised Code equal to all or a portion of the annual credit
amount stated on the eligibility certificate. The credit shall be
claimed in the manner prescribed by section 5725.36, 5726.58,
5729.19, or 5747.83 of the Revised Code, as applicable.

(2)
If a project owner is a pass-through entity, the annual credit amount
for any year of a qualified project's credit period may be allocated
by the project owner among one or more equity owners and may be
applied by those equity owners against more than one tax, but the
total credits claimed in connection with that year of the qualified
project's credit period by all project owners and equity owners
against all taxes shall not exceed the annual credit amount stated on
the eligibility certificate.

If
any equity owner is an area agency on aging, as defined in section
173.14 of the Revised Code, no interest in tax credits may be
allocated to an equity owner unless that equity owner has provided
consideration to the project owner in an amount that is at least
seventy-five per cent of the credit amount allocated.

(3)
A project owner or equity owner may claim the credit authorized by
this section after the date the qualified project is placed into
service but not before the director issues the project owner an
eligibility certificate under division (D) of this section and the
applicable report required by division (I) of this section is filed
by the designated reporter.

(4)
A project owner or equity owner that claims a tax credit under
division (F)(1) of this section shall submit a copy of the
eligibility certificate with the project owner's or equity owner's
tax return or report. Upon request of the tax commissioner or the
superintendent of insurance, any project owner or equity owner
claiming a tax credit under this section shall provide the
commissioner or superintendent other documentation that may be
necessary to verify that the project owner or equity owner is
entitled to claim the credit.

(5)
A project owner that is a pass-through entity may allocate the credit
authorized by this section to its equity owners under division (F)(2)
of this section in any manner agreed to by such persons regardless of
whether such equity owners are eligible for an allocation of the
federal credit, whether the allocation of the credit under the terms
of the agreement has substantial economic effect within the meaning
of section 704(b) of the Internal Revenue Code, and whether any such
person is deemed a partner of the project owner or equity owner for
federal income tax purposes as long as the equity owner acquired its
ownership interest prior to claiming the credit. The allocation shall
be allowed without regard to any provision of the Internal Revenue
Code, or regulation promulgated pursuant to it, that may be
interpreted as contrary to the allocation, including, without
limitation, the treatment of the allocation as a disguised sale.

An
equity owner may assign all or any part of its interest in a
qualified project, including its interest in the tax credits
authorized by this section, to one or more other equity owners, and
each assignee shall be able to claim the credit so long as its
interest is acquired prior to the filing of its tax return or report
or amended tax return or report claiming the credit and the
assignee's ownership interest is identified in the report required by
division (I) of this section.

An
equity owner that is an area agency on aging, as defined in section
173.14 of the Revised Code, may not assign an interest in tax credits
authorized by this section unless the area agency on aging has
received consideration from the transferee in an amount that is at
least seventy-five per cent of the credit amount assigned.

(6)
Nothing in this section or section 5725.36, 5726.58, 5729.19, or
5747.83 of the Revised Code allows the assignment or transfer of any
carryforward of the credit authorized under this section once the
annual credit amount is claimed.

(G)
If any portion of the federal credit allocated to a qualified project
is recaptured under section 42(j) of the Internal Revenue Code or is
otherwise disallowed, the director shall recapture a proportionate
amount of the tax credit claimed pursuant to this section in
connection with the same qualified project.

If
the director determines to recapture such a tax credit, the director
shall certify the name of each project owner and the amount to be
recaptured to the tax commissioner and to the superintendent of
insurance. The commissioner or superintendent shall determine the
taxpayer or taxpayers that claimed the credit, the tax against which
the credit was claimed, and the amount to be recaptured and make an
assessment against the taxpayer or taxpayers under Chapter 5725.,
5726., 5729., or 5747. of the Revised Code, as applicable, for the
amount of the tax credit to be recaptured. The time limitations on
assessments under those chapters do not bar an assessment made under
this division.

(H)
The director, in consultation with the tax commissioner and
superintendent of insurance, shall adopt any rules necessary to
implement this section in accordance with Chapter 119. of the Revised
Code.

(I)(1)
For each calendar year, a designated reporter shall provide the tax
commissioner, in the form prescribed by the tax commissioner in
consultation with the superintendent of insurance, all of the
following:

(a)
The name, address, and taxpayer identification number of each project
owner and equity owner that has been allocated a portion of the
annual credit awarded on the eligibility certificate for that year;

(b)
The amount of the annual credit allocated to each such project owner
and equity owner for such year and the tax against which the credit
will be claimed;

(c)
The total of the amounts listed for each project owner and equity
owner under division (I)(1)(b) of this section, demonstrating that
the total does not exceed the amount listed on the eligibility
certificate for that year.

(2)
A designated reporter shall notify the tax commissioner of any
changes to the information reported in division (I)(1) of this
section in the time and manner prescribed by the commissioner.

(3)
No credit allocated under this section may be claimed by a project
owner or equity owner for a year unless that owner and the amount of
the credit allocated to that owner appear on the report required by
division (I)(1) of this section for that year.

The
tax commissioner shall provide a copy of the report, and any
subsequent changes to the report, submitted by the designated
reporter under division (I) of this section to the superintendent of
insurance in the time and manner agreed to by the commissioner and
superintendent.

Section
2.
That
existing sections 149.311 and 175.16 of the Revised Code are hereby
repealed.