Effective: February 15, 2016
Latest Legislation: Senate Bill 208 - 131st General Assembly
(A) Any term used in this section that is defined in section 122.86 of the Revised Code has the same meaning as defined in that section.
(B) For the purpose of encouraging new capital investment in small businesses in this state and thereby promoting the economic welfare of all Ohioans, a nonrefundable credit is allowed against a taxpayer's aggregate tax liability under section 5747.02 of the Revised Code for a taxpayer to whom a small business investment certificate was issued under section 122.86 of the Revised Code if the taxpayer did not sell or otherwise dispose of the qualifying investment before the conclusion of the applicable holding period and if the small business enterprise on the basis of which the certificate was issued is included in the register maintained under division (D) of section 122.86 of the Revised Code.
The credit shall be claimed for the taxpayer's taxable year that includes the last day of the holding period of the qualifying investment. If the certificate was issued to a pass-through entity that made the qualifying investment, a taxpayer that holds a direct or indirect equity interest in the pass-through entity on the last day of the entity's taxable year that includes the last day of the holding period may claim the taxpayer's distributive or proportionate share of the credit for the taxpayer's taxable year that includes the last day of the entity's taxable year.
The credit equals the amount of the taxpayer's qualifying investment as indicated on the certificate multiplied by ten per cent. If a taxpayer claims a credit on the basis of more than one small business investment certificate issued for the same fiscal biennium, including a certificate issued to a pass-through entity in which the taxpayer owns an equity interest, the total amount of credit claimed by the taxpayer on the basis of all such certificates shall not exceed one million dollars. If a taxpayer and the taxpayer's spouse file a joint return under section 5747.08 of the Revised Code, the credit shall be computed on the basis of the total qualifying investments made by both spouses or by any pass-through entities in which either spouse owns an equity interest, but the total amount of credit claimed on the basis of all certificates issued to the spouses or to such pass-through entities for a fiscal biennium shall not exceed two million dollars.
The credit shall be claimed in the order prescribed by section 5747.98 of the Revised Code. If the credit exceeds the aggregate amount of tax otherwise due for the taxable year, the excess may be carried forward and applied against the tax due for not more than seven succeeding taxable years, provided that the amount applied to the tax due for any taxable year shall be subtracted from the amount available to carry forward to succeeding years.
Structure Ohio Revised Code
Section 5747.01 | Definitions.
Section 5747.011 | Gain or Loss Included in Trust's Ohio Taxable Income.
Section 5747.012 | Tax Treatment of Qualifying Investment Income From Pass-Through Entity.
Section 5747.013 | Calculating a Trust's Modified Ohio Taxable Income.
Section 5747.021 | School District Income Tax.
Section 5747.022 | Tax Credits for Exemptions.
Section 5747.024 | Military Pay Not Included in Adjusted Gross Income.
Section 5747.025 | Personal Exemptions.
Section 5747.026 | Extensions for Filing and Payment by Members Called to Active Duty.
Section 5747.03 | Distributing Income Tax Revenue.
Section 5747.031 | Separate Reporting of Business and Nonbusiness Income Tax Revenues.
Section 5747.04 | Attributing Tax Receipts to County.
Section 5747.05 | Tax Credits.
Section 5747.054 | Tax Credit Based on Federal Dependent Care Credit.
Section 5747.055 | Tax Credit for Retirement Income.
Section 5747.057 | Tax Credit for Career-Technical Education Program Employees.
Section 5747.058 | Tax Credits to Foster Job Creation or Retention.
Section 5747.06 | Employer's Duty to Withhold Tax.
Section 5747.061 | Withholding Tax From Wages of Nonresident Employees.
Section 5747.062 | Withholding Tax From State Lottery Winnings.
Section 5747.063 | Withholding From Casino and Sports Gaming Winnings.
Section 5747.064 | Withholding From Video Lottery and Sports Gaming Winnings.
Section 5747.07 | Employers to File Return and Pay Withholding.
Section 5747.071 | Withholding Tax From Retirement Benefits.
Section 5747.072 | Employers Remitting Taxes by Electronic Funds Transfer.
Section 5747.08 | Filing Income Tax Return.
Section 5747.082 | Use of Electronic Filing by Tax Preparers.
Section 5747.083 | Report or Payment of Use Tax on Personal Income Tax Return.
Section 5747.09 | Declaration of Estimated Taxes.
Section 5747.10 | Amended Returns.
Section 5747.11 | Refunds - Interest.
Section 5747.112 | Paying Refund of School District Income Taxes.
Section 5747.113 | Income Tax Refund Contribution System.
Section 5747.12 | Applying Refund to Satisfy Debt to State.
Section 5747.121 | Collecting Child Support From Refunds.
Section 5747.122 | Collecting Overpayments of Public Assistance From Refunds.
Section 5747.123 | Collecting Overpaid Child Support From Refunds.
Section 5747.13 | Liability of Employer for Failure to File Return or Collect or Remit Tax.
Section 5747.132 | Eliminating Interest or Penalty on Qualifying Refund Overpayment.
Section 5747.14 | Imposing Jeopardy Assessments.
Section 5747.15 | Failure to File or Remit Tax - Filing Frivolous, Dilatory or Fraudulent Claim.
Section 5747.16 | Secretary of State Agent for Service of Process on Nonresidents.
Section 5747.17 | Maintaining Records.
Section 5747.18 | Powers of Tax Commissioner.
Section 5747.19 | Filing Incomplete, False, and Fraudulent Returns.
Section 5747.20 | Allocating Nonbusiness Income or Deduction.
Section 5747.21 | Apportioning Business Income or Deduction.
Section 5747.22 | Apportioning and Allocating Income and Deductions of Pass-Through Entities.
Section 5747.221 | Items of Income and Deductions Not to Be Allocated or Apportioned to Ohio.
Section 5747.23 | Taxing Trust Income.
Section 5747.24 | Presumption of Domicile.
Section 5747.26 | Lead Abatement Tax Credit.
Section 5747.29 | Political Campaign Contribution Tax Credit.
Section 5747.30 | Exemption for Nonresident Pass-Through Entities as to Commercial Printing.
Section 5747.37 | Credit for Legally Adopted Minor Child.
Section 5747.38 | Pass-Through Entity Income Tax.
Section 5747.39 | Pass-Through Entity Owner Credit.
Section 5747.40 | Definitions Relating to Qualified Pass-Through Entities.
Section 5747.42 | Filing Annual Return.
Section 5747.43 | Filing Estimated Tax Return and Making Estimated Payments.
Section 5747.44 | Tax Payment by Electronic Funds Transfer.
Section 5747.46 | Library and Local Government Support Fund Definitions.
Section 5747.48 | Distribution of County Library and Local Government Support Fund.
Section 5747.49 | Prohibiting Later Performance of Duties.
Section 5747.501 | Estimating and Certifying Amount for Distribution Into Local Government Fund.
Section 5747.502 | Reports on Fines Resulting From Traffic Law Photo-Monitoring Devices.
Section 5747.503 | Payments to County Undivided Local Government Funds of Supplement for Townships.
Section 5747.51 | Allocating Local Government Fund to County Undivided Local Government Funds.
Section 5747.52 | Calculating Subdivision Share of Undivided Local Government Fund.
Section 5747.54 | Failure to Certify Percentage Share of the Undivided Local Government Fund.
Section 5747.55 | Appealing County Budget Commission Action.
Section 5747.60 | Delegating Investigation Powers of Tax Commissioner.
Section 5747.70 | Deductions for Contributions to College Savings Programs.
Section 5747.71 | Earned Income Tax Credit.
Section 5747.72 | Credit for Home Instruction Expenses.
Section 5747.73 | Credit for Donations to Scholarship Organizations.
Section 5747.75 | Credit for Dependents Who Attend Nonchartered Nonpublic School.
Section 5747.76 | Refundable Income Tax Credit for Owner of Rc 149.311 Certificate.
Section 5747.77 | Beginning Farmer Tax Credits.
Section 5747.78 | Deductions for Amounts Contributed to Able Savings Account.
Section 5747.79 | Deduction for Capital Gains From Sale of Business.
Section 5747.80 | Issuance of Tax Credits by Ohio Venture Capital Authority.
Section 5747.81 | Tax Credit for Holders of Small Business Investment Certificate.