Amendment No. AM_134_2182 — Am. S. B. No. 166 As Passed by the Senate
Summary
Amendment No. AM_134_2182 to Am. S. B. No. 166 as passed by the Senate, with a Legislative Service Commission synopsis, on a tax credit for career-technical program employers. The amendment inserts section 5747.057, which allows a nonrefundable credit to an employer that employs an eligible employee in a work-based learning experience, internship, or cooperative education program. The tax credit certificate equals the lesser of 15% of the eligible compensation paid or five thousand dollars per eligible employee, and certificates may not cause credits in any fiscal biennium to exceed five million dollars. The synopsis states that employers must apply to the Department of Education for a tax credit certificate before claiming the credit.
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“Amendment No. AM_134_2182 — Am. S. B. No. 166 As Passed by the Senate.”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2021-11-17-econ-workforce-dev-submission-am-134-2182-72e6a890e8/
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Amendment No. AM_134_2182
Am. S. B. No. 166
As Passed by the Senate
__________________________ moved to amend as follows:
In line 2 of the title, delete "5747.07" and insert "5747.98" 1
In line 4 of the title, delete "5747.073" and insert "5747.057" 2
In line 9, delete "5747.07" and insert "5747.98" 3
In line 10, delete "5747.073" and insert "5747.057" 4
After line 597, insert: 5
"Sec. 5747.057. (A) As used in this section: 6
(1) "Eligible employee" means an employee who is nineteen 7
years of age or younger and enrolled in a career-technical 8
education program approved under section 3317.161 of the Revised 9
Code. 10
(2) "Eligible compensation" means compensation paid on and 11
after the effective date of this section from which the employer 12
is required to deduct and withhold income tax under section 13
5747.06 of the Revised Code. 14
(B) A nonrefundable credit is allowed against a taxpayer's 15
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aggregate tax liability under section 5747.02 of the Revised 16
Code for a taxpayer that holds a tax credit certificate issued 17
under this section. The credit equals the amount listed on the 18
certificate and shall be claimed for the taxable year that 19
includes the last day of the calendar year for which the 20
certificate was issued. The credit shall be claimed in the order 21
required under section 5747.98 of the Revised Code. 22
(C) An employer that is a taxpayer or a pass-through 23
entity and that employs an eligible employee in fulfillment of a 24
work-based learning experience, internship, or cooperative 25
education program associated with the career-technical education 26
program in which the eligible employee is enrolled may apply to 27
the department of education for a tax credit certificate. The 28
application shall be made on forms prescribed by the department, 29
in consultation with the tax commissioner, on or after the first 30
day of January and on or before the first day of February of 31
each year. The application shall include all of the following 32
information for the calendar year preceding the year in which 33
the application is made: 34
(1) The amount of eligible compensation paid by the 35
applicant to each of its eligible employees; 36
(2) The name, birth date, and social security number of 37
each eligible employee employed by the applicant; 38
(3) The career-technical education program in which each 39
eligible employee is enrolled; 40
(4) A description of each eligible employee's duties as 41
part of the employee's work-based learning experience, 42
internship, or cooperative education program; 43
(5) Any other information requested by the department. 44
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(D)(1) After determining that the applicant satisfies the 45
conditions described in division (C) of this section, the 46
department of education shall issue, within sixty days after the 47
receipt of a complete application under that division, a tax 48
credit certificate to the applicant equal to the lesser of (a) 49
fifteen per cent of the eligible compensation paid by the 50
applicant to all eligible employees during the calendar year or 51
(b) five thousand dollars per eligible employee, in either case 52
subject to the limitations in division (D)(2) of this section. 53
(2) If the applicant pays eligible compensation to an 54
employee who ceases to qualify as an eligible employee during 55
the calendar year, only the eligible compensation paid to the 56
employee while the employee qualified as an eligible employee 57
may used to calculate the credit amount on a tax credit 58
certificate issued under this section. The department shall not 59
issue certificates in a total amount that would cause the tax 60
credits claimed in any fiscal biennium to exceed five million 61
dollars. 62
(3) Each tax credit certificate issued under this section 63
shall include a unique identification number and shall state the 64
amount of tax credit that may be claimed. A taxpayer claiming 65
the credit allowed under this section shall submit a copy of the 66
certificate with the taxpayer's return or report. 67
(E) If a tax credit certificate is issued to a pass- 68
through entity under this section, any taxpayer that is a direct 69
or indirect investor in the pass-through entity on the last day 70
of the entity's taxable year ending in the calendar year for 71
which the certificate was issued may claim the taxpayer's 72
distributive or proportionate share of the credit against the 73
taxpayer's aggregate tax liability under section 5747.02 of the 74
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Revised Code." 75
Delete lines 598 through 917 76
After line 917, insert: 77
"Sec. 5747.98. (A) To provide a uniform procedure for 78
calculating a taxpayer's aggregate tax liability under section 79
5747.02 of the Revised Code, a taxpayer shall claim any credits 80
to which the taxpayer is entitled in the following order: 81
Either the retirement income credit under division (B) of 82
section 5747.055 of the Revised Code or the lump sum retirement 83
income credits under divisions (C), (D), and (E) of that 84
section; 85
Either the senior citizen credit under division (F) of 86
section 5747.055 of the Revised Code or the lump sum 87
distribution credit under division (G) of that section; 88
The dependent care credit under section 5747.054 of the 89
Revised Code; 90
The credit for displaced workers who pay for job training 91
under section 5747.27 of the Revised Code; 92
The campaign contribution credit under section 5747.29 of 93
the Revised Code; 94
The twenty-dollar personal exemption credit under section 95
5747.022 of the Revised Code; 96
The joint filing credit under division (G) of section 97
5747.05 of the Revised Code; 98
The earned income credit under section 5747.71 of the 99
Revised Code; 100
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The nonrefundable credit for education expenses under 101
section 5747.72 of the Revised Code; 102
The nonrefundable credit for donations to scholarship 103
granting organizations under section 5747.73 of the Revised 104
Code; 105
The nonrefundable credit for tuition paid to a 106
nonchartered nonpublic school under section 5747.75 of the 107
Revised Code; 108
The nonrefundable vocational job credit under section 109
5747.057 of the Revised Code; 110
The credit for adoption of a minor child under section 111
5747.37 of the Revised Code; 112
The nonrefundable job retention credit under division (B) 113
of section 5747.058 of the Revised Code; 114
The enterprise zone credit under section 5709.66 of the 115
Revised Code; 116
The credit for purchases of qualifying grape production 117
property under section 5747.28 of the Revised Code; 118
The small business investment credit under section 5747.81 119
of the Revised Code; 120
The nonrefundable lead abatement credit under section 121
5747.26 of the Revised Code; 122
The opportunity zone investment credit under section 123
122.84 of the Revised Code; 124
The enterprise zone credits under section 5709.65 of the 125
Revised Code; 126
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The research and development credit under section 5747.331 127
of the Revised Code; 128
The credit for rehabilitating a historic building under 129
section 5747.76 of the Revised Code; 130
The nonresident credit under division (A) of section 131
5747.05 of the Revised Code; 132
The credit for a resident's out-of-state income under 133
division (B) of section 5747.05 of the Revised Code; 134
The refundable motion picture and broadway theatrical 135
production credit under section 5747.66 of the Revised Code; 136
The refundable jobs creation credit or job retention 137
credit under division (A) of section 5747.058 of the Revised 138
Code; 139
The refundable credit for taxes paid by a qualifying 140
entity granted under section 5747.059 of the Revised Code; 141
The refundable credits for taxes paid by a qualifying 142
pass-through entity granted under division (I) of section 143
5747.08 of the Revised Code; 144
The refundable credit under section 5747.80 of the Revised 145
Code for losses on loans made to the Ohio venture capital 146
program under sections 150.01 to 150.10 of the Revised Code; 147
The refundable credit for rehabilitating a historic 148
building under section 5747.76 of the Revised Code. 149
(B) For any credit, except the refundable credits 150
enumerated in this section and the credit granted under division 151
(H) of section 5747.08 of the Revised Code, the amount of the 152
credit for a taxable year shall not exceed the taxpayer's 153
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aggregate amount of tax due under section 5747.02 of the Revised 154
Code, after allowing for any other credit that precedes it in 155
the order required under this section. Any excess amount of a 156
particular credit may be carried forward if authorized under the 157
section creating that credit. Nothing in this chapter shall be 158
construed to allow a taxpayer to claim, directly or indirectly, 159
a credit more than once for a taxable year." 160
In line 919, delete "5747.07" and insert "5747.98" 161
The motion was __________ agreed to.
SYNOPSIS 162
Tax credit for career-technical program employers 163
R.C. 5747.07 and 5747.073 (removed from the bill) and 164
5747.057 and 5747.98 165
Makes the following changes to the bill's tax credit 166
program for employers of career-technical program participants: 167
-- Allows a nonrefundable income tax credit equal to 15% 168
of the total wages paid to participants, whereas the current 169
bill allows a credit equal to 15% of the income tax withheld 170
from those wages. 171
-- Allows an employer to claim the credit directly against 172
its own tax liability, whereas the current bill requires 173
employers to claim a withholding tax credit (i.e., a credit 174
against the taxes the employer withholds from a participant's 175
wages). 176
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-- Caps the tax credit allowed per participant at $5,000 177
per year. 178
-- Caps the total credits that may be claimed by all 179
employers per biennium at $5 million. 180
-- Requires employers to apply for a tax credit 181
certificate from the Department of Education before claiming the 182
credit. 183
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