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As Introduced
136th
General Assembly
Regular
Session
S. B. No. 110
2025-2026
Senators Cirino, Chavez
To
amend sections 122.15, 122.151
,
122.152
,
122.153, 122.154, 122.155
,
5725.98, and 5729.98
of the Revised Code
to
modify the availability of and eligibility for tax credits awarded
under the rural business growth program.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 122.15, 122.151
,
122.152
,
122.153, 122.154, 122.155
,
5725.98, and 5729.98
of the Revised Code be amended to read as follows:
Sec.
122.15.
As
used in this section and sections 122.151 to 122.156 of the Revised
Code:
(A)
"Affiliate" means a person that directly, or indirectly
through one or more intermediaries, controls, is controlled by, or is
under common control with another person. For the purposes of this
division, a person is "controlled by" another person if the
controlling person holds, directly or indirectly, the majority voting
or ownership interest in the controlled person or has control over
the day-to-day operations of the controlled person by contract or by
law.
(B)
"Border county" means a county in this state that borders
another state.
(C)
"Closing date" means the date on which a rural business
growth fund has collected all of the amounts specified by divisions
(G)(1) and (2) of section 122.151 of the Revised Code.
(D)
"Credit-eligible capital contribution" means an investment
of cash by a person subject to the tax imposed by section 3901.86,
5725.18, 5729.03, or 5729.06 of the Revised Code in a rural business
growth fund that equals the amount specified on a notice of tax
credit allocation issued by the department of development under
division (I)(1) of section 122.151 of the Revised Code. The
investment shall purchase an equity interest in the fund or purchase,
at par value or premium, a debt instrument issued by the fund that
meets all of the following criteria:
(1)
The debt instrument has an original maturity date of at least five
years after the date of issuance.
(2)
The debt instrument has a repayment schedule that is not faster than
a level principal amortization over five years.
(3)
The debt instrument has no interest, distribution, or payment
features dependent on the fund's profitability or the success of the
fund's growth investments.
(E)
"Eligible investment authority" means the amount stated on
the notice issued under division (F) of section 122.151 of the
Revised Code certifying the rural business growth fund. Sixty per
cent of a fund's eligible investment authority shall be comprised of
credit-eligible capital contributions.
(F)
"Full-time equivalent employee" means the quotient obtained
by dividing the total number of hours for which employees were
compensated for employment over the preceding twelve-month period by
two thousand eighty.
(G)
"Growth investment" means any capital or equity investment
in a rural business concern or any loan to a rural business concern
with a stated maturity of at least one year
,
excluding any investment used by a rural business concern or its
affiliates to refinance or buy out a prior growth investment
.
A secured loan or the provision of a revolving line of credit to a
rural business concern is a growth investment only if the rural
business growth fund obtains an affidavit from the president or chief
executive officer of the rural business concern attesting that the
rural business concern sought and was denied similar financing from a
commercial bank.
(H)
"Operating company" means any business that has its
principal business operations in this state,
for
program one and program two
has
fewer than two hundred fifty employees
and
or
for program three has fewer than two hundred ninety-nine employees,
has
not
more than fifteen million dollars in net income for the preceding
taxable year, and that is none of the following:
(1)
A country club;
(2)
A racetrack or other facility used for gambling;
(3)
A store the principal purpose of which is the sale of alcoholic
beverages for consumption off premises;
(4)
A massage parlor;
(5)
A hot tub facility;
(6)
A suntan facility;
(7)
A business engaged in the development or holding of intangibles for
sale;
(8)
A private or commercial golf course;
(9)
A business that derives or projects to derive fifteen per cent or
more of its net income from the rental or sale of real property,
except any business that is a special purpose entity principally
owned by a principal user of that property formed solely for the
purpose of renting, either directly or indirectly, or selling real
property back to such principal user if such principal user does not
derive fifteen per cent or more of its gross annual revenue from the
rental or sale of real property;
(10)
A publicly traded business.
For
the purposes of this division, "net income" means federal
gross income as required to be reported under the Internal Revenue
Code less federal and state taxes imposed on or measured by income.
(I)
"Population" means that shown by the most recent decennial
census or the most recent annual population estimate published or
released by the United States census bureau, whichever is more
recent.
(J)
A business's "principal business operations" are in this
state if at least eighty per cent of the business's employees reside
in this state, the individuals who receive eighty per cent of the
business's payroll reside in this state, or the business has agreed
to use the proceeds of a growth investment to relocate at least
eighty per cent of its employees to this state or pay at least eighty
per cent of its payroll to individuals residing in this state. For
the purpose of growth investments by a program two
or
program three
rural
business growth fund, a business's "principal business
operations" are also in this state if it is headquartered in a
border county and at least sixty-five per cent of the business's
employees reside in this state, the individuals who receive
sixty-five per cent of the business's payroll reside in this state,
or the business has agreed to use the proceeds of a growth investment
to relocate at least sixty-five per cent of its employees to this
state or pay at least sixty-five per cent of its payroll to
individuals residing in this state.
(K)
"Program one" refers to rural business growth funds
certified by the department of development under section 122.151 of
the Revised Code before
the
effective date of this amendment
September
30, 2021
.
(L)
"Program two" refers to rural business growth funds
certified by the department of development under section 122.151 of
the Revised Code on or after
the effective date of this amendment
September 30, 2021, but before the effective date of this amendment
.
(M)
"Program
three" refers to rural business growth funds certified by the
department of development under section 122.151 of the Revised Code
on or after the effective date of this amendment.
(N)
"Rural
area" means any county in this state having a population less
than two hundred thousand.
(N)
(O)
"Rural
business concern" means an operating company that has its
principal business operations located in a rural area.
(O)
(P)
"Rural
business growth fund" and "fund" mean an entity
certified by the department of development under section 122.151 of
the Revised Code.
(P)
(Q)
"Taxable
year" means the calendar year ending on the thirty-first day of
December next preceding the day the annual statement is required to
be returned under section 5725.18 or 5729.02 of the Revised Code.
(Q)
(R)
"Tier
one rural area" means any county in this state having a
population less than two hundred thousand and more than one hundred
fifty thousand.
(R)
(S)
"Tier
two rural area" means any county in this state having a
population of more than seventy-five thousand but not more than one
hundred fifty thousand.
(S)
(T)
"Tier
three rural area" means any county in this state having a
population of not more than seventy-five thousand.
(U)
"Tier four rural area" means any county in the Appalachian
region, as that term is defined in section 107.21 of the Revised
Code.
Sec.
122.151.
(A)
A person that has developed a business plan to invest in rural
business concerns in this state and has successfully solicited
private investors to make credit-eligible capital contributions in
support of the plan may apply to the department of development for
certification as a rural business growth fund. The application shall
include all of the following:
(1)
The total eligible investment authority sought by the applicant under
the business plan;
(2)
Documents and other evidence sufficient to prove, to the satisfaction
of the agency, that the applicant meets all of the following
criteria:
(a)
The applicant or an affiliate of the applicant is licensed as a rural
business investment company under 7 U.S.C. 2009cc, or as a small
business investment company under 15 U.S.C. 681.
(b)
As of the date the application is submitted, the applicant has
invested more than one hundred million dollars in operating
companies, including at least fifty million dollars in operating
companies located in rural areas. In computing investments under this
division, the applicant may include investments made by affiliates of
the applicant and investments made in businesses that are not
operating companies but would qualify as operating companies if the
principal business operations were located in this state.
(3)
The industries in which the applicant proposes to make growth
investments and the percentage of the growth investments that will be
made in each industry. The applicant shall identify each industry by
using the codes utilized by the north American industry
classification system.
(4)
An estimate of the number of new full-time equivalent employees and
retained full-time equivalent employees that will result from the
applicant's growth investments;
(5)
A revenue impact assessment for the applicant's proposed growth
investments prepared by a nationally recognized third-party
independent economic forecasting firm using a dynamic economic
forecasting model. The revenue impact assessment shall analyze the
applicant's business plan over the ten years following the date the
application is submitted to the agency.
(6)
A signed affidavit from each investor successfully solicited by the
applicant to make a credit eligible capital contribution in support
of the business plan. Each affidavit shall include information
sufficient for the agency and the superintendent of insurance to
identify the investor and shall state the amount of the investor's
credit-eligible capital contribution.
(7)
A nonrefundable application fee of five thousand dollars.
(B)(1)
Except as provided in division (B)(2) of this section, the agency
shall review and make a determination with respect to each
application submitted under division (A) of this section within sixty
days of receipt. The agency shall review and make determinations on
the applications in the order in which the applications are received
by the agency. Applications received by the agency on the same day
shall be deemed to have been received simultaneously. The agency
shall approve not more than seventy-five million dollars in eligible
investment authority and not more than forty-five million dollars in
credit-eligible capital contributions under this section for program
one rural business growth funds. The agency shall approve not more
than seventy-five million dollars in eligible investment authority
and not more than forty-five million dollars in credit-eligible
contributions under this section for program two rural business
growth funds.
The
agency shall approve not more than one hundred fifty million dollars
in eligible investment authority and not more than ninety million
dollars in credit-eligible contributions under this section for
program three rural business growth funds.
(2)
If the agency denies an application for certification as a fund, and
approving a subsequently submitted application would result in
exceeding the dollar limitation on eligible investment authority or
credit-eligible contributions prescribed by division (B)(1) of this
section assuming the previously denied application were completed,
clarified, or cured under division (D) of this section, the agency
shall refrain from making a determination on the subsequently
submitted application until the previously denied application is
reconsidered or the fifteen-day period for submitting additional
information respecting that application has passed, whichever comes
first.
(C)
The agency shall deny an application submitted under this section if
any of the following are true:
(1)
The application is incomplete.
(2)
The application fee is not paid in full.
(3)
The applicant does not satisfy all the criteria described in division
(A)(2) of this section.
(4)
The revenue impact assessment submitted under division (A)(5) of this
section does not demonstrate that the applicant's business plan will
result in a positive economic impact on this state over a ten-year
period that exceeds the cumulative amount of tax credits that would
be issued under section 122.152 of the Revised Code if the
application were approved.
(5)
The credit-eligible capital contributions described in affidavits
submitted under division (A)(6) of this section do not equal sixty
per cent of the total amount of eligible investment authority sought
under the applicant's business plan.
(6)
The agency has already approved the maximum total eligible investment
authority and credit-eligible capital contributions allowed under
division (B) of this section.
(D)
If the agency denies an application under division (C) of this
section, the agency shall send notice of its determination to the
applicant. The notice shall include the reason or reasons that the
application was denied. If the application was denied for any reason
other than the reason specified in division (C)(6) of this section,
the applicant may provide additional information to the agency to
complete, clarify, or cure defects in the application. The additional
information must be submitted within fifteen days after the date the
notice of denial was dispatched by the agency. If the person submits
additional information within fifteen days, the agency shall
reconsider the application within thirty days after receiving the
additional information. The application shall be reviewed and
considered before any pending application submitted after the
original submission date of the reconsidered application. If the
person does not submit additional information within fifteen days
after dispatch of the notice of denial, the person may submit a new
application with a new submission date at any time.
(E)
If approving multiple simultaneously submitted applications would
result in exceeding the overall eligible investment limit prescribed
by division (B) of this section, the agency shall proportionally
reduce the eligible investment authority and the credit-eligible
capital contributions for each approved application as necessary to
avoid exceeding the limit.
(F)
The agency shall not deny a rural business growth fund application or
reduce the requested eligible investment authority for reasons other
than those described in divisions (C) and (E) of this section. If the
agency approves such an application, the agency shall issue a written
notice to the applicant certifying that the applicant qualifies as a
rural business growth fund and specifying the amount of the
applicant's eligible investment authority.
(G)
A fund shall do all of the following within sixty days after
receiving the certification issued under division (F) of this
section:
(1)
Collect the credit-eligible capital contributions from each investor
whose affidavit was included in the application. If the rural
business growth fund's requested eligible investment authority is
proportionally reduced under division (E) of this section, the
investor's required credit-eligible capital contribution shall be
reduced by the same proportion.
(2)
Collect one or more investments of cash that, when added to the
contributions collected under division (G)(1) of this section, equal
the fund's eligible investment authority. At least ten per cent of
the fund's eligible investment authority shall be comprised of equity
investments contributed directly or indirectly by affiliates of the
fund, including employees, officers, and directors of such
affiliates.
(H)
Within sixty-five days after receiving the certification issued under
division (F)(1) of this section, the fund shall send to the agency
documentation sufficient to prove that the amounts described in
divisions (G)(1) and (2) of this section have been collected. The
fund shall identify any affiliate of an investor described in
division (G)(1) of this section that will seek to claim the credit
allowed by section 122.152 of the Revised Code. If the fund fails to
fully comply with division (G) of this section, the fund's
certification shall lapse.
Eligible
investment authority and corresponding credit-eligible capital
contributions that lapse under this division do not count toward
limits on total eligible investment authority and credit-eligible
capital contributions prescribed by division (B) of this section.
Once eligible investment authority has lapsed, the agency shall first
award lapsed authority pro rata to each fund that was awarded less
than the requested eligible investment authority because of the
operation of division (E) of this section. Any remaining eligible
investment authority may be awarded by the agency to new applicants.
(I)
After receiving documentation sufficient to prove that the amounts
described in divisions (G)(1) and (2) of this section have been
collected, the agency shall issue the following notices:
(1)
To each investor or affiliate identified in division (H) of this
section, a notice of the amount and utilization schedule of the tax
credits allocated to that investor or affiliate as a result of its
credit-eligible capital contribution;
(2)
To the superintendent of insurance, a notice of the amount and
utilization schedule of the tax credits allocated to each investor
described in division (G)(1) of this section and any affiliate of
such investor who will seek to claim the credit allowed by section
122.152 of the Revised Code.
(J)
Application fees submitted to the agency pursuant to division (A)(7)
of this section shall be credited to the tax incentives operating
fund created under section 122.174 of the Revised Code, and shall be
used by the agency to administer sections 122.15 to 122.156 of the
Revised Code.
Sec.
122.152.
(A)
There is hereby allowed a nonrefundable tax credit for owners of tax
credit certificates issued by the development services agency under
division (B) of this section. The credit may be claimed against the
tax imposed by section 3901.86, 5725.18, 5729.03, or 5729.06 of the
Revised Code.
(B)
On the closing date, a taxpayer that made a credit-eligible capital
contribution to a rural business growth fund shall be eligible for a
credit equal to the amount specified in the notice issued under
division (I)(1) of section 122.151 of the Revised Code. On or before
the third, fourth, fifth, and sixth anniversary dates of the closing
date, the agency shall issue a tax credit certificate to the taxpayer
specifying the corresponding anniversary date and a credit amount
equal to one-fourth of the total credit authorized under this
section. The taxpayer or its identified affiliate may claim the
credit amount for the taxable year that includes the date specified
on the certificate. The taxpayer making a credit-eligible capital
contribution and the issuance of a tax credit certificate by the
agency does not represent a verification or certification by the
agency of compliance with the recapture provisions of section 122.153
of the Revised Code. The tax credit issued under this division is
subject to recapture under section 122.153 of the Revised Code.
(C)
The credit shall be claimed in the order required under section
5725.98 or 5729.98 of the Revised Code as applicable. If the amount
of the credit for a taxable year exceeds the tax otherwise due for
that year, the excess may be carried forward for not more than four
ensuing
taxable years for tax credits issued under program one and program
two, and not more than two
ensuing
taxable years
for tax credits issued under program three
.
A taxpayer claiming a credit under this section shall submit a copy
of the tax credit certificate with the taxpayer's annual statement
for each taxable year in which the credit is claimed.
Sec.
122.153.
(A)
The department of development shall not be required to issue a tax
credit certificate under section 122.152 of the Revised Code if
either
any
of
the following applies:
(1)
The credit-eligible capital contribution was made in a program one
rural business growth fund that fails to:
(a)
Invest fifty per cent of its eligible investment authority in growth
investments within one year of the closing date; and
(b)
Invest one hundred per cent of its eligible investment authority in
growth investments in this state within two years of the closing
date.
(2)
The credit eligible contribution was made in a program two rural
business growth fund that fails to:
(a)
Invest twenty-five per cent of its eligible investment authority in
growth investments within one year of the closing date;
(b)
Invest fifty per cent of its eligible investment authority in growth
investments within two years of the closing date; and
(c)
Invest one hundred per cent of its eligible investment authority in
growth investments within three years of the closing date, including
seventy-five per cent of its eligible investment authority in rural
business concerns that have their principal business operations in
tier two or tier three rural areas, and twenty-five per cent of its
eligible investment authority in rural business concerns that have
their principal business operations in tier three rural areas. The
amount by which a rural business growth fund's growth investments in
rural business concerns that have their principal business operations
in tier one rural areas exceeds twenty-five per cent of the fund's
eligible investment authority shall not count towards the
satisfaction of the requirements prescribed by division (A)(2)(c) of
this section.
(3)
The credit eligible contribution was made in a program three rural
business growth fund that fails to:
(a)
Invest twenty-five per cent of its eligible investment authority in
growth investments within one year of the closing date;
(b)
Invest fifty per cent of its eligible investment authority in growth
investments within two years of the closing date; and
(c)
Invest one hundred per cent of its eligible investment authority in
growth investments within three years of the closing date, including
not less than fifty per cent of its eligible investment authority in
rural business concerns that have their principal business operations
in tier four rural areas, and not less than seventy-five per cent of
its eligible investment authority in rural business concerns that
have their principal business operations in tier two, tier three, or
tier four rural areas. The amount by which a rural business growth
fund's growth investments in rural business concerns that have their
principal business operations in tier one rural areas exceeds
twenty-five per cent of the fund's eligible investment authority
shall not count towards the satisfaction of the requirements
prescribed by division (A)(3)(c) of this section.
(B)
The agency shall recapture tax credits claimed under section 122.152
of the Revised Code if any of the following occur with respect to the
rural business growth fund:
(1)
The fund, after investing one hundred per cent of its eligible
investment authority in growth investments in this state, fails to
maintain that investment until the sixth anniversary of the closing
date. For the purposes of this division, an investment is maintained
even if the investment is sold or repaid so long as the fund
reinvests an amount equal to the capital returned or recovered by the
fund from the original investment, exclusive of any profits realized,
in other growth investments in this state within one year of the
receipt of such capital.
(2)
The fund makes a distribution or payment after the fund complies with
division (G) of section 122.151 of the Revised Code and before the
fund decertifies under division
(D)
(E)
of
this section that results in the fund having less than one hundred
per cent of its eligible investment authority invested in growth
investments in this state.
(3)
The fund makes a growth investment in a rural business concern that
directly or indirectly through an affiliate owns, has the right to
acquire an ownership interest, makes a loan to, or makes an
investment in the fund, an affiliate of the fund, or an investor in
the fund. Division
(A)(3)
(B)(3)
of
this section does not apply to investments in publicly traded
securities by a rural business concern or an owner or affiliate of a
rural business concern.
Before
recapturing one or more tax credits under this division, the agency
shall notify the fund of the reasons for the pending recapture. If
the fund corrects the violations outlined in the notice to the
satisfaction of the agency within thirty days of the date the notice
was dispatched, the agency shall not recapture the tax credits.
(C)(1)
The amount by which one or more growth investments by a program one
rural business growth fund in the same rural business concern exceeds
twenty per cent of the fund's eligible investment authority shall not
be counted as a growth investment for the purposes of this section.
The amount by which one or more growth investments by a program two
rural business growth fund in the same business concern exceeds five
million dollars shall not be counted as a growth investment for the
purposes of this section.
The
amount by which one or more growth investments by a program three
rural business growth fund in the same business concern exceeds seven
million five hundred thousand dollars shall not be counted as a
growth investment for purposes of this section.
A
growth investment returned or repaid by a rural business concern to a
program one
or
,
program
two
,
or program three
rural business growth fund and then reinvested by the fund in the
same rural business concern does not count as an investment in the
same rural business concern for the purposes of the limitations
prescribed by division (C)(1) of this section.
(2)
The aggregate amount of growth investments by all rural business
growth funds in the same rural business concern, including amounts
reinvested in a rural business concern following a returned or
repayment of a growth investment, shall not exceed fifteen million
dollars.
(3)
A growth investment in an affiliate of a rural business concern shall
be treated as a growth investment in that rural business concern for
the purposes of division (C) of this section.
(D)
If the agency recaptures a tax credit under this section, the agency
shall notify the superintendent of insurance of the recapture. The
superintendent shall make an assessment under Chapter 5725. or 5729.
of the Revised Code for the amount of the credit claimed by each
certificate owner associated with the fund before the recapture was
finalized. The time limitations on assessments under those chapters
do not apply to an assessment under this division, but the
superintendent shall make the assessment within one year after the
date the agency notifies the superintendent of the recapture.
Following the recapture of a tax credit under this section, no tax
credit certificate associated with the fund may be utilized.
Notwithstanding division (B) of section 122.152 of the Revised Code,
if a tax credit is recaptured under this section the agency shall not
issue future tax credit certificates to taxpayers that made
credit-eligible capital contributions to the fund.
(E)(1)
On or after the sixth anniversary of the closing date, a fund that
has not committed any of the acts described in division (B) of this
section may apply to the agency to decertify as a rural business
growth fund. The agency shall respond to the application within sixty
days after receiving the application. In evaluating the application,
the fact that no tax credit has been recaptured with respect to the
fund shall be sufficient evidence to prove that the fund is eligible
for decertification. The agency shall not unreasonably deny an
application submitted under this division.
(2)
The agency shall send notice of its determination with respect to an
application submitted under division (E)(1) of this section to the
fund. If the application is denied, the notice shall include the
reason or reasons for the determination.
(3)
The agency shall not recapture a tax credit due to any actions of a
fund that occur after the date the fund's application for
decertification is approved. Division (E)(3) of this section does not
prohibit the agency from recapturing a tax credit due to the actions
of a fund that occur before the date the fund's application for
decertification is approved, even if those actions are discovered
after that date.
Sec.
122.154.
(A)
Each rural business growth fund shall submit a report to the
department of development on or before the first day of each March
following the end of the calendar year that includes the closing date
until the calendar year after the fund has decertified. The report
shall provide an itemization of the fund's growth investments and
shall include the following documents and information:
(1)
A bank statement evidencing each growth investment;
(2)
The name, location, and industry class of each business that received
a growth investment from the fund and evidence that the business
qualified as a rural business concern at the time the investment was
made. If the fund obtained a written opinion from the agency on the
business's status as a rural business concern under section 122.156
of the Revised Code, or if the fund makes a written request for such
an opinion and the agency failed to respond within thirty days as
required by that section, a copy of the agency's favorable opinion or
a dated copy of the fund's unanswered request, as applicable, shall
be sufficient evidence that the business qualified as a rural
business concern at the time the investment was made.
(3)
The number of employment positions that existed at each business
described in division (A)(2) of this section on the date the business
received the growth investment;
(4)
The number of new full-time equivalent employees resulting from each
of the fund's growth investments made or maintained in the preceding
calendar year;
(5)
Any other information required by the agency.
(B)
Each fund shall submit a report to the agency on or before the fifth
business day after the first, second, and for program two
and
program three
funds,
third anniversaries of the closing date that provides documentation
sufficient to prove that the fund has met the investment thresholds
described in division (A) of section 122.153 of the Revised Code and
has not implicated any of the other recapture provisions described in
division (B) of that section.
(C)
Each certified rural business growth fund shall pay the agency an
annual fee of twenty thousand dollars. The initial annual fee
required of a fund shall be due and payable to the agency along with
the submission of documentation required under division (H) of
section 122.151 of the Revised Code. Each subsequent annual fee is
due and payable on the last day of February following the first and
each ensuing anniversary of the closing date. If the fund is required
to submit an annual report under division (A) of this section, the
annual fee shall be submitted along with the report. No fund shall be
required to pay an annual fee after the fund has decertified under
section 122.153 of the Revised Code. Annual fees paid to the agency
under this section shall be credited to the tax incentives operating
fund created under section 122.174 of the Revised Code.
(D)
The director of development, after consultation with the
superintendent of insurance and in accordance with Chapter 119. of
the Revised Code, may adopt rules necessary to implement sections
122.15 to 122.156 of the Revised Code.
Sec.
122.155.
(A)(1)
For each calendar year in which a rural business growth fund makes or
maintains a growth investment in a rural business concern in this
state, the fund shall determine the number of new full-time
equivalent employees produced at the business concern as a result of
the investment. New full-time equivalent employees shall be computed
by subtracting the number of full-time equivalent employees at the
rural business concern on the date of the fund's initial growth
investment in the rural business concern from the number of full-time
equivalent employees at the rural business concern on the last day of
the calendar year. If the computation results in a number less than
zero, the number of new full-time equivalent employees, produced by
the fund's growth investment for that calendar year period shall be
zero. Only employees with an hourly wage rate of at least one hundred
fifty per cent of the federal minimum wage may be considered in
computing the number of new full-time equivalent employees for the
purposes of this section.
(2)
A fund may determine and include, for the purposes of this section
and section 122.154 of the Revised Code, the number of new full-time
equivalent employees produced at a rural business concern after the
year in which the fund's growth investment is repaid or redeemed. The
new full-time equivalent employees shall be computed in the same
manner as in division (A)(1) of this section based on reporting
information provided by the rural business concern to the fund.
(B)
After a fund's application for decertification is approved under
section 122.153 of the Revised Code, the fund shall determine the
state reimbursement amount. The state reimbursement amount
for
program one and program two
shall
equal the amount by which the fund's credit-eligible capital
contributions exceed the product obtained by multiplying thirty
thousand dollars by the aggregate number of new full-time equivalent
employees for the fund.
The
state reimbursement amount for program three shall equal the amount
by which the fund's credit-eligible capital contributions exceed the
product obtained by multiplying thirty thousand dollars by the
aggregate number of new full-time equivalent employees for the fund
for investments located in tier one or tier two rural areas and by
multiplying sixty thousand dollars by the aggregate number of new
full-time equivalent employees for the fund for investments located
in tier three or tier four rural areas.
If
that product is greater than the fund's credit-eligible capital
contributions, the state reimbursement amount shall equal zero. In
the absence of additional information provided by the fund or
discovered by the agency, the number of new full-time equivalent
employees for the purposes of this division equals the sum of all new
full-time equivalent employees reported by the fund on the annual
reports required under section 122.154 of the Revised Code.
(C)
After the state reimbursement amount is computed under division (B)
of this section, the fund shall not be permitted to make
further
any
distributions
to equity holders of the fund, including investors that are equity
holders of the funds
without first remitting
,
in excess of the fund's net earnings or cause the total amount of all
distributions to exceed sixty per cent of the fund's eligible
investment authority, until the fund remits
the
state reimbursement amount to the agency. All amounts received by the
agency under this division shall be credited to the general revenue
fund.
(D)
The director of development services, upon the request of a fund, may
waive all or a portion of the remission required under division (C)
of this section if the director determines, based on an affidavit of
the chief executive officer or president of a rural business concern,
that the growth investments of the fund resulted in the retention of
employment positions that would have otherwise been eliminated at
rural business concerns in this state. The amount waived shall not
exceed the product of thirty thousand dollars multiplied by the
number of retained employment positions multiplied by the number of
years in which the fund made or maintained a growth investment in the
rural business concern that retained the employment positions.
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
nonrefundable credit for investments in rural business growth funds
issued under program three under section 122.152 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
issued
under program one or two
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
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.
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
nonrefundable credit for investments in rural business growth funds
issued under program three under section 122.152 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
issued
under program one or two
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
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.
Section
2.
That
existing sections 122.15, 122.151
,
122.152
,
122.153, 122.154, 122.155
,
5725.98, and 5729.98
of the Revised Code are hereby repealed.