Effective: April 12, 2021
Latest Legislation: Senate Bill 276 - 133rd General Assembly
(A) As used in this section:
(1) "Distressed area" means either a municipal corporation that has a population of at least fifty thousand or a county, that meets two of the following criteria:
(a) Its average rate of unemployment, during the most recent five-year period for which data are available, is equal to at least one hundred twenty-five per cent of the average rate of unemployment for the United States for the same period.
(b) It has a per capita income equal to or below eighty per cent of the median county per capita income of the United States as determined by the most recently available figures from the United States census bureau.
(c)(i) In the case of a municipal corporation, at least twenty per cent of the residents have a total income for the most recent census year that is below the official poverty line.
(ii) In the case of a county, in intercensal years, the county has a ratio of transfer payment income to total county income equal to or greater than twenty-five per cent.
(2) "Eligible area" means a distressed area, a labor surplus area, an inner city area, or a situational distress area.
(3) "Eligible costs associated with a voluntary action" means costs incurred during the qualifying period in performing a remedy or remedial activities, as defined in section 3746.01 of the Revised Code, and any costs incurred during the qualifying period in performing both a phase I and phase II property assessment, as defined in the rules adopted under section 3746.04 of the Revised Code, provided that the performance of the phase I and phase II property assessment resulted in the implementation of the remedy or remedial activities.
(4) "Inner city area" means, in a municipal corporation that has a population of at least one hundred thousand and does not meet the criteria of a labor surplus area or a distressed area, targeted investment areas established by the municipal corporation within its boundaries that are comprised of the most recent census block tracts that individually have at least twenty per cent of their population at or below the state poverty level or other census block tracts contiguous to such census block tracts.
(5) "Labor surplus area" means an area designated as a labor surplus area by the United States department of labor.
(6) "Official poverty line" has the same meaning as in division (A) of section 3923.51 of the Revised Code.
(7) "Partner" includes a member of a limited liability company formed under Chapter 1705. or 1706. of the Revised Code or under the laws of any other state if the limited liability company is not treated as a corporation for purposes of Chapter 5733. of the Revised Code and is not classified as an association taxable as a corporation for federal income tax purposes.
(8) "Partnership" includes a limited liability company formed under Chapter 1705. or 1706. of the Revised Code or under the laws of any other state if the limited liability company is not treated as a corporation for purposes of Chapter 5733. of the Revised Code and is not classified as an association taxable as a corporation for federal income tax purposes.
(9) "Qualifying period" means the period that begins July 1, 1996, and ends June 30, 1999.
(10) "S corporation" means a corporation that has made an election under subchapter S of chapter one of subtitle A of the Internal Revenue Code for its taxable year under the Internal Revenue Code;
(11) "Situational distress area" means a county or a municipal corporation that has experienced or is experiencing a closing or downsizing of a major employer that will adversely affect the economy of the county or municipal corporation. In order for a county or municipal corporation to be designated as a situational distress area, the governing body of the county or municipal corporation shall submit a petition to the director of development in the form prescribed by the director. A county or municipal corporation may be designated as a situational distress area for a period not exceeding thirty-six months.
The petition shall include written documentation that demonstrates all of the following:
(a) The number of jobs lost by the closing or downsizing;
(b) The impact that the job loss has on the unemployment rate of the county or municipal corporation as measured by the director of job and family services;
(c) The annual payroll associated with the job loss;
(d) The amount of state and local taxes associated with the job loss;
(e) The impact that the closing or downsizing has on the suppliers located in the county or municipal corporation.
(12) "Voluntary action" has the same meaning as in section 3746.01 of the Revised Code.
(13) "Taxpayer" means a corporation subject to the tax imposed by section 5733.06 of the Revised Code or any person subject to the tax imposed by section 5747.02 of the Revised Code.
(14) "Governing body" means the board of county commissioners of a county, the board of township trustees of a township, or the legislative authority of a municipal corporation.
(15) "Eligible site" means property for which a covenant not to sue has been issued under section 3746.12 of the Revised Code.
(B)(1) A taxpayer, partnership, or S corporation that has been issued, under section 3746.12 of the Revised Code, a covenant not to sue for a site by the director of environmental protection during the qualifying period may apply to the director of development, in the manner prescribed by the director, to enter into an agreement under which the applicant agrees to economically redevelop the site in a manner that will create employment opportunities and a credit will be granted to the applicant against the tax imposed by section 5733.06 or 5747.02 of the Revised Code. The application shall state the eligible costs associated with a voluntary action incurred by the applicant. The application shall be accompanied by proof, in a form prescribed by the director of development, that the covenant not to sue has been issued.
The applicant shall request the certified professional that submitted the no further action letter for the eligible site under section 3746.11 of the Revised Code to submit an affidavit to the director of development verifying the eligible costs associated with the voluntary action at that site.
The director shall review the applications in the order they are received. If the director determines that the applicant meets the requirements of this section, the director may enter into an agreement granting a credit against the tax imposed by section 5733.06 or 5747.02 of the Revised Code. In making the determination, the director may consider the extent to which political subdivisions and other units of government will cooperate with the applicant to redevelop the eligible site. The agreement shall state the amount of the tax credit and the reporting requirements described in division (F) of this section.
(2) The maximum annual amount of credits the director of development may grant under such agreements shall be as follows:
1996 $5,000,000
1997 $10,000,000
1998 $10,000,000
1999 $5,000,000
For any year in which the director of development does not grant tax credits under this section equal to the maximum annual amount, the amount not granted for that year shall be added to the maximum annual amount that may be granted for the following year. However, the director shall not grant any tax credits under this section after June 30, 1999.
(C)(1) If the covenant not to sue was issued in connection with a site that is not located in an eligible area, the credit amount is equal to the lesser of five hundred thousand dollars or ten per cent of the eligible costs associated with a voluntary action incurred by the taxpayer, partnership, or S corporation.
(2) If a covenant not to sue was issued in connection with a site that is located in an eligible area, the credit amount is equal to the lesser of seven hundred fifty thousand dollars or fifteen per cent of the eligible costs associated with a voluntary action incurred by the taxpayer, partnership, or S corporation.
(3) A taxpayer, partnership, or S corporation that has been issued covenants not to sue under section 3746.12 of the Revised Code for more than one site may apply to the director of development to enter into more than one agreement granting a credit against the tax imposed by section 5733.06 or 5747.02 of the Revised Code.
(4) For each year for which a taxpayer, partnership, or S corporation has been granted a credit under an agreement entered into under this section, the director of development shall issue a certificate to the taxpayer, partnership, or S corporation indicating the amount of the credit the taxpayer, the partners of the partnership, or the shareholders of the S corporation may claim for that year, not including any amount that may be carried forward from previous years under section 5733.34 of the Revised Code.
(D)(1) Each agreement entered into under this section shall incorporate a commitment by the taxpayer, partnership, or S corporation not to permit the use of an eligible site to cause the relocation of employment positions to that site from elsewhere in this state, except as otherwise provided in division (D)(2) of this section. The commitment shall be binding on the taxpayer, partnership, or S corporation for the lesser of five years from the date the agreement is entered into or the number of years the taxpayer, partnership, or S corporation is entitled to claim the tax credit under the agreement.
(2) An eligible site may be the site of employment positions relocated from elsewhere in this state if the director of development determines both of the following:
(a) That the site from which the employment positions would be relocated is inadequate to meet market and industry conditions, expansion plans, consolidation plans, or other business considerations affecting the relocating employer;
(b) That the governing body of the county, township, or municipal corporation from which the employment positions would be relocated has been notified of the possible relocation.
For purposes of this section, the movement of an employment position from one political subdivision to another political subdivision shall be considered a relocation of an employment position, but the transfer of an individual employee from one political subdivision to another political subdivision shall not be considered a relocation of an employment position as long as the individual's employment position in the first political subdivision is refilled.
(E) A taxpayer, partnership, or S corporation that has entered into an agreement granting a credit against the tax imposed by section 5733.06 or 5747.02 of the Revised Code that subsequently recovers in a lawsuit or settlement of a lawsuit at least seventy-five per cent of the eligible costs associated with a voluntary action shall not claim any credit amount remaining, including any amounts carried forward from prior years, beginning with the taxable year in which the judgment in the lawsuit is entered or the settlement is finally agreed to.
Any amount of credit that a taxpayer, partnership, or S corporation may not claim by reason of this division shall not be considered to have been granted for the purpose of determining the total amount of credits that may be issued under division (B)(2) of this section.
(F) Each year for which a taxpayer, partnership, or S corporation claims a credit under section 5733.34 of the Revised Code, the taxpayer, partnership, or S corporation shall report the following to the director of development:
(1) The status of all cost recovery litigation described in division (E) of this section to which it was a party during the previous year;
(2) Confirmation that the covenant not to sue has not been revoked or has not been voided;
(3) Confirmation that the taxpayer, partnership, or S corporation has not permitted the eligible site to be used in such a manner as to cause the relocation of employment positions from elsewhere in this state in violation of the commitment required under division (D) of this section;
(4) Any other information the director of development requires to perform the director's duties under this section.
(G) The director of development shall annually certify, by the first day of January of each year during the qualifying period, the eligible areas for the calendar year that includes that first day of January.
(H) The director of development, in accordance with Chapter 119. of the Revised Code, shall adopt rules necessary to implement this section, including rules prescribing forms required for administering this section.
Last updated September 9, 2021 at 11:37 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.