122.152 Issuing and use of tax credit certificate.
122.152 Issuing and use of tax credit certificate.
(A) After receiving notice of approval for an investment of money from the industrial technology and enterprise advisory council committee under section 122.151 of the Revised Code, an investor, within a period of time determined by the committee, may make the investment and apply to the council for a tax credit certificate. If the committee is satisfied the investor has made the investment in the proper form, it shall issue to the investor a tax credit certificate signed by the chairperson of the committee and the director of development indicating that the investor is allowed a tax credit equal to one of the following amounts:
(1) Thirty per cent of the investment if the investment was made in an EDGE business enterprise or in an Ohio entity located in a distressed area;
(2) Twenty-five per cent of the investment if the investment was made in an Ohio entity other than an EDGE business enterprise.
An investor who receives approval of a proposed investment of money through a group application, after making the investment, shall apply for a tax credit certificate on an individual basis.
(B) An investor who is issued a tax credit certificate under this section may claim a nonrefundable credit equal to the amount indicated on the certificate against any state tax liability. The investor shall claim the credit for the taxable year in which the certificate is issued.
(1) If the credit to which a taxpayer otherwise would be entitled under this section for any taxable year is greater than the tax otherwise due under division (D) of section 5707.03 or section 5727.24 or 5727.38 of the Revised Code, the excess shall be allowed as a credit in each of the ensuing fifteen taxable years, but the amount of any excess credit allowed in an ensuing taxable year shall be deducted from the balance carried forward to the next taxable year.
(2) If the credit to which a taxpayer otherwise would be entitled under this section for any taxable year is greater than the tax otherwise due under section 5747.02 or Chapter 5733. of the Revised Code, after allowing for any other credits that precede the credit allowed under this section in the order required under section 5733.98 or 5747.98 of the Revised Code, the excess shall be allowed as a credit in each of the ensuing fifteen taxable years, but the amount of any excess credit allowed in an ensuing taxable year shall be deducted from the balance carried forward to the next taxable year.
(C) Any portion of a credit allowed under this section that is utilized by an investor to reduce the investor’s state tax liability shall not be utilized by any other person.
(D) To claim a tax credit allowed under this section, an investor shall attach to the appropriate return a copy of the certificate issued to the investor under this section.
(E) Nothing in this section shall limit or disallow pass-through treatment of a pass-through entity’s income, deductions, or credits, or other amounts necessary to compute a state tax liability.
(F) A tax credit certificate issued to an investor under this section may not be transferred by that investor to any other person.
(G)(1) The director of development shall develop the form of the tax credit certificate and the industrial technology and enterprise advisory council committee shall use that form when issuing a tax credit certificate under this section.
(2) The director of development shall report to the tax commissioner any information requested by the commissioner concerning tax credit certificates issued under this section.
(H) An investment made by an investor or group of investors who enter into a contractual agreement with an Ohio entity to invest money in the Ohio entity is an acceptable investment if all of the following conditions are met:
(1) The investment is made pursuant to a subscription agreement providing that the investor or group of investors is entitled to receive a refund of funds if the investment is not approved by the industrial technology and enterprise advisory council committee.
(2) The investment is placed in escrow until the investment is approved by the industrial technology and enterprise advisory council committee.
(3) The investor or group of investors shows proof of the withdrawal of the funds by the Ohio entity after the investment is approved by the industrial technology and enterprise advisory council committee.
Effective Date: 07-09-2003