Substitute Bill Comparative Synopsis - Sub. S.B. 39 (133rd General Assembly)
Summary
A Substitute Bill Comparative Synopsis from the Ohio Legislative Service Commission for S.B. 39 of the 133rd General Assembly, prepared for the House Economic and Workforce Development committee by Joe McDaniels, Attorney, and Chris Kelleher, Research Analyst. The table summarizes how the latest substitute version differs from the immediately preceding version and the Senate-passed version. It states that the latest version terminates authority for approval of credits on June 30, 2022, sets aside 20% ($20 million) of the tax credits available each year for projects in less populous areas, and limits the tax credit for any one project to $40 million.
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“Substitute Bill Comparative Synopsis - Sub. S.B. 39 (133rd General Assembly).”
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OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
Substitute Bill Comparative Synopsis
Sub. S.B. 39
133rd General Assembly
House Economic and Workforce Development
Joe McDaniels, Attorney
Chris Kelleher, Research Analyst
This table summarizes how the latest substitute version of the bill differs from the immediately preceding version and the
Senate-passed version. It addresses only the topics on which the versions differ substantively. It does not list topics on which the bills
are substantively the same.
Senate Version Most Recent Prior Version Latest Version
(As Passed by the Senate) (l_133_0488-7)
(l_133_2340-1)
Sunset
No sunset; credits are available indefinitely. Same as Senate-passed version. Terminates authority for approval of credits
on June 30, 2022.
Smaller projects
No similar provision. No similar provision. Sets aside 20% ($20 million) of the tax credits
available each year for projects in less
Office of Research and Drafting LSC Legislative Budget Office
Senate Version Most Recent Prior Version Latest Version
(As Passed by the Senate) (l_133_0488-7)
(l_133_2340-1)
populous areas—specifically, projects further
than 10 miles from a "major city" (i.e.,
population > 100,000).
Such projects need include buildings only
four stories in height with a total square
footage of 75,000 sq. ft. (compared to 10
stories and 250,000 sq. ft. for projects within
10 miles of a major city), and the buildings do
not have to be connected.
Project cap
No similar provision. No similar provision. Limits the tax credit for any one project to
$40 million.
No limit on the number of projects that may Limits the number of projects that may be No limit on the number of projects that may
be certified. certified (and preliminarily approved for a tax be certified, but limits the total amount of tax
credit) to four projects per fiscal year. credits to $100 million for each of FY 2020, FY
2021, and FY 2022.
No similar provision. Allows the Director of Development Services No similar provision; unused certifications do
to reallocate unused certifications from prior not carry over to later years.
years and certifications that are rescinded.
No similar provision. If there are more tax credit applications than Same as most recent prior version, but the
there are certifications available, the Director ranking is done separately for projects within
must rank the qualified applications and 10 miles of a major city and for those outside
certify the projects that present the best such a radius.
combination of economic value and
transformational impact. (R.C. 122.09(C)(2).)
P a g e |2 Sub. S.B. 39, Sub. Bill Comparative Synopsis
Office of Research and Drafting LSC Legislative Budget Office
Senate Version Most Recent Prior Version Latest Version
(As Passed by the Senate) (l_133_0488-7)
(l_133_2340-1)
Credit amount
The credit equals 10% of documented The credit amount and when it is awarded Same as the most recent prior version, except
development costs or, if the applicant is an depend, in part, on the increase in tax the credit amount is limited to $40 million
insurance company contributing capital to collections at the project site and the per project, and the Ohio Tax Credit
the project, 10% of the capital contribution. surrounding area. Authority is substituted for the Director of
The full credit amount is awarded upon Development Services.
completion of the project. (R.C. 122.09(F).)
A credit equal to 5% of documented
development costs or 5% of an insurance
company’s capital contribution (whichever is
applicable) is issued upon completion of the
project.
The remainder of the credit – up to an
additional 5% – is awarded if, when, and to
the extent that the increase in tax collections
exceeds 5% of development costs. The
applicant may receive some or all of the
remaining credit amount on the date the
project is completed and they may reapply
for any portion of the credit that has yet to
be awarded on the first, second, third, fourth,
and fifth anniversaries of that date.
If the full 10% credit has not been awarded
following the fifth anniversary of the date the
project is completed, the remainder is
forfeited.
The increase in tax collections is computed by
the Director in consultation with the Tax
Commissioner and the tax administrators of
P a g e |3 Sub. S.B. 39, Sub. Bill Comparative Synopsis
Office of Research and Drafting LSC Legislative Budget Office
Senate Version Most Recent Prior Version Latest Version
(As Passed by the Senate) (l_133_0488-7)
(l_133_2340-1)
any municipal corporations that levy an
income tax on the project site or the
surrounding area. (R.C. 122.09(F), (G), and
(H).)
Completion period
The increase in tax collections is computed Same, but extends the completion period Same as the most recent prior version.
based on the five years following completion backward to the date the project is certified.
of the project – referred to by the bill as the (R.C. 122.09(A)(4) and (5).)
“completion period.” (R.C. 122.09(A)(4) and
(5).)
Progress and reporting requirements
Requires a person that is preliminarily Eliminates the 18-month reporting Same as most recent prior version, except
approved for the tax credit to provide the requirement and modifies the 12-month substitutes the Ohio Tax Credit Authority for
Director with sufficient evidence of reporting requirement by replacing the Director of Development Services.
reviewable progress and an updated “sufficient evidence with reviewable
schedule for completion of the project within progress” with “documentation sufficient to
12 months of the date the project is certified. demonstrate that construction has begun.”
The person must submit evidence that
financing has been secured and closed within
18 months of the certification date.
P a g e |4 Sub. S.B. 39, Sub. Bill Comparative Synopsis
Office of Research and Drafting LSC Legislative Budget Office
Senate Version Most Recent Prior Version Latest Version
(As Passed by the Senate) (l_133_0488-7)
(l_133_2340-1)
The Director is allowed, but not required, to Requires the Director to rescind certification Same as most recent prior version, except
rescind certification of the project if either or of the project if the reporting requirement is substitutes the Ohio Tax Credit Authority for
both of the reporting requirements are not not timely met. (R.C. 122.09(D).) the Director of Development Services.
timely met. (R.C. 122.09(D).)
The person that is preliminarily approved for The property owner is required to notify the Same as most recent prior version, except
a tax credit, regardless of whether that Director upon completion of the project. (R.C. substitutes the Ohio Tax Credit Authority for
person is the property owner or an insurance 122.09(F).) the Director of Development Services.
company, is required to notify the Director
upon completion of the project. (R.C.
122.09(F).)
Rulemaking
Requires the Director to adopt rules on a Adds the following to the list of topics that Same as most recent version.
number of topics concerning the must be addressed by rules:
administration of the tax credit. (R.C.
--Application deadlines (if any);
122.09(H).)
--Procedure for ranking applications;
--Timing and frequency by which projects are
certified; and
--Procedure for computing the increase in tax
collections. (R.C. 122.09(L).)
Administration
The Director of Development Services Same as the Senate-passed version. The Ohio Tax Credit Authority accepts and
accepts and processes applications and processes applications and administers the
otherwise administers the tax credit. tax credit.
P a g e |5 Sub. S.B. 39, Sub. Bill Comparative Synopsis
Office of Research and Drafting LSC Legislative Budget Office
Senate Version Most Recent Prior Version Latest Version
(As Passed by the Senate) (l_133_0488-7)
(l_133_2340-1)
Historic building rehabilitation tax credit
No similar provision. Increases the amount of the existing-law tax No similar provision.
credit for rehabilitating a historic building if
the building is in a rural area (defined under
existing law for other purposes as a county
having a population less than 200,000) from
25% to 35% of qualified rehabilitation
expenditures. The credit remains 25% of
qualified rehabilitation expenditures for
buildings not located in rural areas.
Retains the same per-project tax credit caps
for all rehabilitation projects, regardless of
location ($25 million for catalytic projects and
$5 million for all others). Also retains the $60
million overall cap on the tax credits
approved each fiscal year. (R.C. 149.311,
5725.34, 5726.52, 5729.17, and 5747.76.)
Commercial real estate broker liens
No provision. No provision. Requires, rather than permits, a court to
charge the nonprevailing parties all court
costs and attorney's fees for an action to
enforce a commercial real estate broker's
lien. If the broker is the prevailing party,
specifies that the costs and fees must include
the broker's costs of perfecting and enforcing
the lien and of litigation and prejudgment
interest.
P a g e |6 Sub. S.B. 39, Sub. Bill Comparative Synopsis
Office of Research and Drafting LSC Legislative Budget Office
Senate Version Most Recent Prior Version Latest Version
(As Passed by the Senate) (l_133_0488-7)
(l_133_2340-1)
Specifies that notices of such an action may
be served by a commercial carrier service or
other method that includes written evidence
of receipt, as an alternative to certified mail
with return receipt requested, and that the
broker has three days, rather than one, to
provide a copy of the lien affidavit or of the
release of lien after it has been recorded.
(R.C. 1311.87, 1311.88, and 1311.90.)
S0039-133/ks
P a g e |7 Sub. S.B. 39, Sub. Bill Comparative Synopsis
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