Effective: June 30, 1997
Latest Legislation: House Bill 215 - 122nd General Assembly
(A) As used in this section:
(1) "Affiliated group" has the same meaning as in section 1504 of the Internal Revenue Code and is ascertained on the last day of the taxable year.
(2) "Excess tax" means the difference, if any, between the amount described in division (A)(2)(a) of this section and the amount described in division (A)(2)(b) of this section:
(a) The tax imposed by section 5733.06 of the Revised Code for the tax year without regard to any credits provided by the Revised Code;
(b) The tax imposed by section 5733.06 of the Revised Code for the tax year without regard to divisions (I)(12) and (13) of section 5733.04 of the Revised Code, sections 5733.054 and 5733.055 of the Revised Code, and any credits provided by the Revised Code.
(3) "Qualifying affiliated group" means an affiliated group meeting all of the following requirements:
(a) The aggregate of the excess tax for the tax year for the taxpayers that are members of the affiliated group exceeds three million five hundred thousand dollars;
(b) On January 1, 1991, the affiliated group had as a member of such affiliated group a corporation meeting all three of the following requirements:
(i) The corporation is described in division (C)(1) of section 5733.042 of the Revised Code.
(ii) The corporation was incorporated prior to January 1, 1991, in a state other than this state.
(iii) At no time since the date of incorporation did the corporation conduct activities other than those activities described in division (C)(1) of section 5733.042 of the Revised Code.
(c) If any member of an affiliated group was a taxpayer on January 1, 1991, the affiliated group, no later than September 30, 1991, under penalty of falsification under section 2921.13 of the Revised Code, informs the tax commissioner by certified mail of the affiliated group's estimated credit, allowed by divisions (B) and (C) of this section, against the tax imposed by this chapter for the 1992 tax year. The amount so reported does not prevent the affiliated group from claiming a credit amount greater than or less than the amount reported under division (A)(3)(c) of this section. Division (A)(3)(c) of this section does not apply to tax years after the 1992 tax year.
(B) Except as limited by divisions (C) and (E) of this section, a taxpayer that is a member of a qualifying affiliated group is allowed a nonrefundable credit for the tax year against the tax imposed by section 5733.06 of the Revised Code. The nonrefundable credit shall be claimed in the order required under section 5733.98 of the Revised Code, and is equal to the lesser of the amounts described in divisions (B)(1) and (2) of this section:
(1) The excess tax reduced by three million five hundred thousand dollars;
(2) One million five hundred thousand dollars.
(C) Notwithstanding division (B) of this section to the contrary, the maximum nonrefundable credit allowed by this section for the tax year to all taxpayers that are members of the same qualifying affiliated group cannot exceed in the aggregate one million five hundred thousand dollars.
(D) A taxpayer that is allowed the nonrefundable credit provided by this section shall allocate the nonrefundable credit to itself and to other taxpayers within the qualifying affiliated group in any proportion elected by the qualifying affiliated group.
(E) Notwithstanding any other division of this section to the contrary, the nonrefundable credit shall not be claimed or allowed any time prior to the first day of July following the tax year in which the nonrefundable credit would be allowed without regard to this division; nor shall the nonrefundable credit be claimed or allowed any time after the first day of August following the tax year in which the nonrefundable credit would be allowed without regard to this division. This division does not apply to tax years after tax year 1993.
Structure Ohio Revised Code
Chapter 5733 | Corporation Franchise Tax
Section 5733.01 | Tax Charged Against Corporations.
Section 5733.02 | Annual Taxpayer Report and Remittance - Report on Dissolution or Withdrawal.
Section 5733.021 | Declaration of Estimated Tax Report.
Section 5733.022 | Tax Payment by Electronic Funds Transfer.
Section 5733.03 | Annual Report.
Section 5733.04 | Corporation Franchise Tax Definitions.
Section 5733.041 | Net Income Defined for Tax Years 1984 to 1993.
Section 5733.042 | Computing Net Income of Member of Affiliated Group.
Section 5733.051 | Allocating and Apportioning of Net Income of Corporation.
Section 5733.052 | Combining Net Incomes of Corporations.
Section 5733.053 | Transferee Corporation Subject to Transferor's Tax Liability.
Section 5733.055 | Deducting Expenses and Costs Paid to Related Member.
Section 5733.056 | Determining Value of Issued and Outstanding Shares of Stock.
Section 5733.057 | Ownership Interest in Pass-Through Entity.
Section 5733.058 | Adjusting for Equity Investment in an Exempted Investment.
Section 5733.059 | Allocating Sales of Electric Transmission and Distribution Services.
Section 5733.0510 | Reducing Net Income for Qualifying Assets.
Section 5733.0511 | Net Income for Qualifying Telephone Company Taxpayer.
Section 5733.06 | Computing Tax.
Section 5733.061 | Credit Allowed for Investment in Property Used in Refining or Manufacturing.
Section 5733.064 | Credit for Recycling and Litter Prevention Program Donations.
Section 5733.066 | Surcharge Added to Rates to Fund Recycling and Litter Prevention.
Section 5733.068 | Credit Allowed to Member of Qualifying Affiliated Group.
Section 5733.069 | Credit Allowed for Increase in Export Sales.
Section 5733.0610 | Credit for Ohio Job Creation.
Section 5733.0611 | Credit Relating to Tax on Qualifying Pass-Through Entities.
Section 5733.07 | Powers and Duties of Tax Commissioner.
Section 5733.09 | Exempted Companies.
Section 5733.10 | Exemption of Municipal Corporations.
Section 5733.11 | Failing to File or Remit - Filing Incorrect Report.
Section 5733.12 | Crediting of Payments to Funds - Filing of Refund Application.
Section 5733.121 | Applying Refund in Partial Satisfaction of Debt.
Section 5733.13 | Extension of Time to File Report.
Section 5733.14 | Monthly Report by Secretary of State - Access to Records of County Auditors.
Section 5733.16 | Organization of Domestic and Foreign Corporations.
Section 5733.17 | Duty to Make Reports or Pay Taxes on Dissolution or Retirement.
Section 5733.21 | Prohibition Against Doing Business After Cancellation of Articles or Certificate.
Section 5733.22 | Reinstatement of Corporation.
Section 5733.23 | Petition for Judgment for Taxes - Injunction - Procedure - Evidence.
Section 5733.24 | Quo Warranto Proceedings.
Section 5733.26 | Interest on Unpaid Tax or Refund.
Section 5733.261 | Qualifying Refund Overpayment - Liability for Interest or Penalty.
Section 5733.27 | Affidavit Denying Unlawful Political Contributions.
Section 5733.28 | Failing to File Complying Report or Pay Tax.
Section 5733.29 | Underpayment of Estimated Tax.
Section 5733.32 | Credit for Grape Producing Business Purchasing Qualifying Property.
Section 5733.34 | Credit for Economic Redevelopment of Voluntary Environmental Clean-Up Site.
Section 5733.351 | Credit for Qualified Research Expenses.
Section 5733.36 | Credit for Providing Day-Care for Children of Employees.
Section 5733.37 | Credit for Establishing Day-Care Center for Children of Employees.
Section 5733.38 | Credit for Reimbursement of Employee Day-Care Expenses.
Section 5733.39 | Credit for Use of Ohio Coal in Coal-Fired Electric Generating Unit.
Section 5733.40 | Qualified Pass-Through Entity Definitions.
Section 5733.401 | Investment in Pass-Through Entities.
Section 5733.42 | Credit for Eligible Employee Training Costs.
Section 5733.45 | Credit Concerning Qualifying Dealer in Intangibles.
Section 5733.47 | Refundable Franchise Tax Credit for Owner of Rc 149.311 Certificate.
Section 5733.49 | Issuance of Tax Credits by Ohio Venture Capital Authority.
Section 5733.55 | Nonrefundable Credit Equal to Amount of Eligible Nonrecurring 9-1-1 Charges.
Section 5733.58 | Nonrefundable Credit Financial Institution Holding a Qualified Equity Investment.