Effective: June 30, 1997
Latest Legislation: House Bill 215 - 122nd General Assembly
(A) As used in this section:
(1) "Component member" has the same meaning as in section 1563(b) of the Internal Revenue Code.
(2) "Controlled group" has the same meaning as in section 179(d)(7) of the Internal Revenue Code.
(3) "Cost" has the same meaning as in section 179(d)(3) of the Internal Revenue Code.
(4) "Seven-month period" means the seven-month period that begins December 1, 1995, and ends June 30, 1996.
(5) "Manufacturer" has the same meaning as in section 5711.16 of the Revised Code.
(6) "Manufacturing machinery or equipment" has the same meaning as "engines and machinery, and tools and implements, of every kind used, or designed to be used, in refining and manufacturing" in section 5711.16 of the Revised Code.
(7) "New manufacturing machinery or equipment" means manufacturing machinery or equipment, the original use of which commences with the taxpayer or with a partnership of which the taxpayer is a partner.
(8) "Purchase" has the same meaning as in section 179(d)(2) of the Internal Revenue Code.
(B) A nonrefundable credit is allowed against the tax imposed by section 5733.06 of the Revised Code for a taxpayer that purchases new manufacturing machinery or equipment that the taxpayer locates in this state and uses as a manufacturer. The credit also is allowed for a taxpayer that is a direct or indirect partner in a partnership that purchases new manufacturing machinery or equipment that the partnership locates in this state and uses as a manufacturer. In either event, the credit is available only if the following conditions are met:
(1) The purchases are made during the seven-month period;
(2) In the case of such new manufacturing machinery or equipment purchased by the taxpayer, the cumulative cost of the new machinery or equipment, when added to the cumulative cost of any other such manufacturing machinery or equipment purchased by other component members of a controlled group of corporations of which the taxpayer is a component member, equals or exceeds twenty per cent of the aggregate of the cost of all manufacturing machinery or equipment located in the United States and owned by the taxpayer or other component members of a controlled group of corporations of which the taxpayer is a component member, at the close of the taxpayer's most recent taxable year ending before January 1, 1995. In the case of such new manufacturing machinery or equipment purchased by a partnership of which the taxpayer is a direct or indirect partner, the cumulative cost of such property equals or exceeds twenty per cent of the aggregate of the cost of all manufacturing machinery or equipment located in the United States and owned by the partnership at the close of its most recent federal taxable year ending before January 1, 1995, and the taxpayer's distributive share of such cumulative cost, when added to the cumulative cost of any other such new manufacturing machinery or equipment purchased by the taxpayer or other component members of a controlled group of corporations of which the taxpayer is a component member, equals or exceeds twenty per cent of the aggregate of the cost of all manufacturing machinery or equipment located in the United States and owned by the taxpayer or other component members of a controlled group of corporations of which the taxpayer is a component member, at the close of the taxpayer's most recent taxable year ending before January 1, 1995.
(3) The taxpayer does not claim a credit under section 5733.31 of the Revised Code for purchases of new manufacturing machinery and equipment.
(C) In the case of new manufacturing machinery and equipment purchased by a manufacturer, the amount of the credit equals twenty per cent of the cost of the new manufacturing machinery and equipment located and used in this state by the manufacturer. However, the aggregate credit allowed to any taxpayer, or if the taxpayer is a component member of a controlled group of corporations, to the controlled group, shall not exceed five hundred thousand dollars. If the manufacturing machinery and equipment is purchased by a partnership, the five-hundred-thousand-dollar limit applies both to the partnership and to the taxpayer or controlled group. The taxpayer shall be allowed its distributive share of any credit available through the partnership, and such share shall be aggregated with any other credit available to the taxpayer or controlled group under this section before applying the five-hundred-thousand-dollar limit to the taxpayer or controlled group. The taxpayer may allocate the amount of credit, as so limited, among any of its taxable years that end after the purchase is made, and that include any portion of the seven-month period. The taxpayer shall claim the credit in the order required under section 5733.98 of the Revised Code. Any credit amount in excess of the tax due under this chapter after allowing for any other credits that precede the credit under this section in that order may be carried forward for three taxable years after the last taxable year that includes any portion of the seven-month period, but the amount of the excess credit allowed in any such year shall be deducted from the balance carried forward to the next year.
(D) Nothing in this section shall be construed to limit or disallow pass-through treatment of a partnership's income, deductions, credits, or other amounts necessary to compute the tax imposed by section 5733.06 of the Revised Code and the credits allowed by this chapter.
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.