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.
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(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
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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;
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(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
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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.
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(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
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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
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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
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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)
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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
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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
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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
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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
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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
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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.
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(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
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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
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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
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517 S. B. No. 110 Page 19
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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.
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547 S. B. No. 110 Page 20
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(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.
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577 S. B. No. 110 Page 21
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(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.
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607 S. B. No. 110 Page 22
As Introduced
(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
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638 S. B. No. 110 Page 23
As Introduced
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
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667 S. B. No. 110 Page 24
As Introduced
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
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694 S. B. No. 110 Page 25
As Introduced
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;
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722 S. B. No. 110 Page 26
As Introduced
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.
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750 S. B. No. 110 Page 27
As Introduced
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.
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