Effective: September 30, 2021
Latest Legislation: House Bill 110 - 134th General Assembly
(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 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.
(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) 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) 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. A growth investment returned or repaid by a rural business concern to a program one or program two 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.
Last updated July 30, 2021 at 10:08 AM
Structure Ohio Revised Code
Chapter 122 | Department of Development
Section 122.01 | Department of Development Definitions.
Section 122.011 | Department of Development Powers and Duties.
Section 122.012 | Regional State Agency for Jobs and Employment Opportunities.
Section 122.013 | Required Postings on Official Internet Site.
Section 122.014 | Financial Assistance for Gaming Activities.
Section 122.02 | Applying for Federal and Private Assistance and Contracts.
Section 122.03 | Duties of Department - Research Facilities.
Section 122.04 | Additional Duties.
Section 122.042 | Foundation of Employment Opportunity Program.
Section 122.05 | Offices in Foreign Countries.
Section 122.051 | International Trade Cooperative Projects Fund.
Section 122.06 | Planning Duties.
Section 122.07 | Office of Tourismohio.
Section 122.071 | Tourismohio Advisory Board.
Section 122.072 | Tourism Fund.
Section 122.073 | Promoting State of Ohio.
Section 122.075 | Alternative Fuel Transportation Grant Program.
Section 122.076 | Alternative Fuel Vehicle Conversion Program.
Section 122.077 | Energy Star Rebate Program.
Section 122.08 | Office of Small Business - Powers and Duties.
Section 122.081 | Small Business Register.
Section 122.082 | Low-Interest Loans to Small Businesses.
Section 122.083 | Shovel Ready Sites Program - Fund.
Section 122.085 | Job Ready Site Program - Definitions.
Section 122.086 | Job Ready Site Program.
Section 122.087 | Annual Competitive Process for Grants Under Program.
Section 122.088 | Annual Competitive Process Grant Application.
Section 122.089 | Grant Application Contents.
Section 122.0810 | Grant Application Evaluation - Prioritization - Notice of Deficiencies.
Section 122.0811 | Completeness of Application and Eligibility of Project.
Section 122.0812 | Discretionary Grants Outside Annual Competitive Process.
Section 122.0813 | Evaluation of Discretionary Grant Application.
Section 122.0814 | Approval of Grant - Agreement With Applicant.
Section 122.0815 | Project Requirements for Consideration for Grant.
Section 122.0816 | Project Priority Under Annual Competitive Process.
Section 122.0817 | Annual Program Report by Director.
Section 122.0819 | Allowance of Recovery of Committee Costs.
Section 122.0820 | Job Site Ready Development Fund.
Section 122.09 | Transformational Mixed Use Development Tax Credit.
Section 122.10 | Cooperation and Coordination With Other State Departments and Agencies.
Section 122.11 | Classified and Unclassified Employees.
Section 122.121 | Site Selection for Major Sporting Event.
Section 122.122 | Sports Event Grant Fund.
Section 122.131 | Employee Ownership Assistance Program.
Section 122.132 | Duties of Director of Development.
Section 122.133 | Boards to Assist Employee Ownership Assistance Program.
Section 122.134 | Feasibility Study.
Section 122.135 | Assistance in Studying Feasibility of Employee-Owned Corporation.
Section 122.136 | Annual Report.
Section 122.14 | Roadwork Development Fund.
Section 122.15 | Definitions for Sections 122.151 to 122.156.
Section 122.151 | Certification as a Rural Business Growth Fund.
Section 122.153 | Tax Credit Certificates; Recapture of Tax Credits.
Section 122.155 | State Reimbursement Amount.
Section 122.156 | Written Opinion.
Section 122.16 | Economic Redevelopment of Distressed Area.
Section 122.17 | Grants to Foster Job Creation.
Section 122.171 | Tax Credits to Foster Job Retention.
Section 122.172 | Manufacturing Equipment Grant Program.
Section 122.173 | Grant Against Tax for New Manufacturing Machinery Purchase.
Section 122.174 | Tax Incentives Operating Fund.
Section 122.176 | Grants for Employers That Move Into a Previously Vacant Facility.
Section 122.177 | Career Exploration Internship Program.
Section 122.178 | Techcred Program.
Section 122.179 | Industry Sector Partnerships.
Section 122.1710 | Individual Microcredential Assistance Program.
Section 122.1711 | Report to Legislature.
Section 122.18 | Annual Payments to Landlord for Projects Creating New Jobs.
Section 122.19 | Urban and Rural Initiative Grant Program Definitions.
Section 122.20 | Urban and Rural Initiative Grant Program.
Section 122.21 | Urban and Rural Initiative Grant Program Definitions.
Section 122.22 | Grant Eligibility.
Section 122.23 | Rural Industrial Park Loan Program Definitions.
Section 122.24 | Rural Industrial Park Loan Program.
Section 122.25 | Administration of Program - Park Use.
Section 122.26 | Rural Industrial Park Loan Fund.
Section 122.27 | Eligibility for Financial Assistance.
Section 122.28 | Industrial Technology and Enterprise Advisory Council Definitions.
Section 122.30 | Powers and Duties.
Section 122.31 | Payment Sources for Expenses and Obligations.
Section 122.32 | Accepting Using Contributions.
Section 122.33 | Administration of Programs.
Section 122.35 | Depositing Receipts.
Section 122.36 | Confidential Information.
Section 122.37 | Steel Futures Program.
Section 122.38 | Small Business Innovation Research Grant Program.
Section 122.39 | Definitions for r.c. 122.41 to 122.62.
Section 122.40 | Definitions for r.c. 122.40 to 122.4077 - Residential Broadband Expansion.
Section 122.401 | Residential Broadband Expansion Grant Program.
Section 122.403 | Broadband Expansion Program Authority.
Section 122.406 | Authority Consideration of Program Applications.
Section 122.407 | Authority Duties.
Section 122.408 | Authority Hearings.
Section 122.4010 | Authority Annual Report of Findings and Recommendations.
Section 122.4013 | Grant Applications by Broadband Providers.
Section 122.4015 | Grants Only for Eligible Projects.
Section 122.4016 | Ineligible Projects.
Section 122.4017 | Funds for Grants.
Section 122.4018 | Grants Limited by Available Funds.
Section 122.4019 | Application Submission.
Section 122.4020 | Application Requirements.
Section 122.4021 | Conditions for Grants.
Section 122.4023 | Proprietary or Trade Secret Evaluations.
Section 122.4024 | Notification of Published Applications.
Section 122.4025 | Video Service Provider Fees Contributed to Funding Gap.
Section 122.4030 | Application Challenges.
Section 122.4031 | Evidence Sufficient to Successfully Challenge.
Section 122.4033 | Authority Actions Regarding a Challenge.
Section 122.4034 | Revision, Resubmission of Successfully Challenged Applications.
Section 122.4035 | Review of Resubmitted Applications.
Section 122.4036 | Sanctions for Challenging Provider's Failure to Provide Service.
Section 122.4037 | Disposition of Sanction Amounts.
Section 122.4040 | Weighted Scoring System for Applications.
Section 122.4041 | Weighted Scoring System Priorities.
Section 122.4043 | Grant Awards.
Section 122.4044 | Grant Disbursement.
Section 122.4045 | Speed Verification Tests.
Section 122.4046 | Noncompliance With Requirements.
Section 122.4050 | County Request Application Solicitation.
Section 122.4051 | Solicitation on Behalf of County.
Section 122.4053 | Response Application Compliance.
Section 122.4055 | No Responsibility for Lack of Response.
Section 122.4060 | Grant Required for Eligible Project to Proceed.
Section 122.4061 | Financial Responsibility Before Project Completion.
Section 122.4063 | Ownership or Transfer of Broadband Infrastructure.
Section 122.4070 | Annual and Operational Reports.
Section 122.4071 | Report Contents and Public Availability.
Section 122.4073 | Due Date and Extensions for Reports.
Section 122.4075 | Reports, Documents Confidential.
Section 122.4076 | Annual Program Report by Authority.
Section 122.4077 | Residential Broadband Expansion Grant Rules.
Section 122.41 | Director's Powers and Duties Under Chapter 122.
Section 122.42 | Director's Powers and Duties Under r.c. 122.41 to 122.62.
Section 122.43 | Lending Funds.
Section 122.44 | Terms of Loans.
Section 122.45 | Loans to Political Subdivisions.
Section 122.451 | Insuring Mortgage Payments.
Section 122.47 | Issuing Bonds.
Section 122.48 | Issuing Revenue Bonds.
Section 122.49 | Using Bond Proceeds.
Section 122.50 | Bonds Not a Debt of State.
Section 122.51 | Bonds Are Lawful Investments.
Section 122.52 | Issuing Revenue Refunding Bonds.
Section 122.53 | Bonds Secured by Trust Agreements.
Section 122.54 | Direct Loan Program Fund.
Section 122.55 | Purchase Fund of the Director of Development.
Section 122.56 | Mortgage Guarantee Fund.
Section 122.561 | Mortgage Insurance Fund.
Section 122.57 | Distributing Income to Separate Sinking Funds.
Section 122.571 | Revenue Bond Guaranty Fund.
Section 122.58 | Investing Funds.
Section 122.59 | Proceedings in Default.
Section 122.60 | Capital Access Loan Program Definitions.
Section 122.601 | Capital Access Loan Program Fund.
Section 122.602 | Capital Access Loan Program.
Section 122.603 | Program Reserve Account.
Section 122.604 | Recovering Delinquent Loan Amount From Program Reserve Account.
Section 122.605 | Annual Report.
Section 122.61 | Tax Exemptions.
Section 122.62 | Keeping Funds in Depositories Selected by Director.
Section 122.63 | Housing Needs.
Section 122.64 | Business Services Division.
Section 122.641 | The Lakes in Economic Distress Revolving Loan Program.
Section 122.65 | Brownfield Revitalization Project Definitions.
Section 122.651 | Clean Ohio Council.
Section 122.652 | Grant or Loan for a Brownfield Cleanup or Remediation Project.
Section 122.653 | Application Approval.
Section 122.654 | Determining Compliance With Applicable Cleanup Standards.
Section 122.655 | No Further Action Letters.
Section 122.657 | Establishing Policies and Requirements.
Section 122.658 | Clean Ohio Revitalization Fund - Revolving Loan Fund.
Section 122.659 | Effect on Other Provisions.
Section 122.6510 | Brownfields Revolving Loan Fund.
Section 122.6511 | Brownfield Remediation Program.
Section 122.6512 | Building Demolition and Site Revitalization Program.
Section 122.66 | Office of Community Services Definitions.
Section 122.67 | Community Services Division.
Section 122.68 | Powers and Duties.
Section 122.681 | Confidentiality of Information.
Section 122.69 | Endorsement of Community Action Agency.
Section 122.70 | Board of Directors of Community Action Agency - Powers and Duties.
Section 122.701 | Designating New or Rescinding Former Designation.
Section 122.702 | Hearings on Use of Community Services Block Grant Funds.
Section 122.71 | Minority Development Financing Advisory Board Definitions.
Section 122.72 | Minority Development Financing Advisory Board.
Section 122.73 | Powers and Duties.
Section 122.74 | Director of Development - Powers and Duties.
Section 122.75 | Director of Development - Duties Regarding Minority Programs.
Section 122.751 | Certifying Loan Applicants.
Section 122.76 | Loan Criteria.
Section 122.77 | Loan Guarantees.
Section 122.78 | Terms, Conditions, and Provisions of Loans and Guarantees.
Section 122.79 | Tax Exemptions.
Section 122.80 | Minority Business Enterprise Loan Fund.
Section 122.81 | Default on Loan, Guarantee, or Lease.
Section 122.82 | Moneys, Funds, Properties, and Assets Held in Trust.
Section 122.83 | Prohibiting Misrepresentation.
Section 122.84 | Tax Credit for Investors in Multiple Qualified Opportunity Funds.
Section 122.85 | Tax Credit-Eligible Productions.
Section 122.851 | Certification as Ohio Venture Capital Operating Company.
Section 122.86 | Small Business Investment Certificate; Tax Credit.
Section 122.861 | Diesel Emissions Reduction Grant and Loan Programs.
Section 122.862 | Sellohio Global Initiative Fund.
Section 122.87 | Minority Business Bonding Program Definitions.
Section 122.89 | Executing Bonds as Surety.
Section 122.92 | Minority Business Development Division.
Section 122.93 | Accepting Gifts and Other Aid.
Section 122.94 | Rules - Annual Report.
Section 122.941 | Annual Report.
Section 122.942 | Project Information to Be Made Public.
Section 122.95 | Definitions - Industrial Site Improvement Fund Grants.
Section 122.951 | Grants From Industrial Site Improvement Fund.
Section 122.9511 | Siteohio Certification Program.
Section 122.9512 | Siteohio Administration Fund.
Section 122.96 | Delegation of Authority.
Section 122.98 | Ohio Aerospace and Aviation Technology Committee.