Ohio Code 5733.352 – Nonrefundable credit equal to borrower’s qualified research and development loan payments
(A) As used in this section:
Terms Used In Ohio Code 5733.352
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Federal income tax: means the income tax imposed by the Internal Revenue Code. See Ohio Code 5733.04
- Limited liability company: means any limited liability company formed under Chapter 1705. See Ohio Code 5733.04
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: includes an individual, corporation, business trust, estate, trust, partnership, and association. See Ohio Code 1.59
- Tax year: means the calendar year in and for which the tax imposed by section 5733. See Ohio Code 5733.04
- Taxable year: means the period prescribed by division (A) of section 5733. See Ohio Code 5733.04
- Taxpayer: means a corporation subject to the tax imposed by section 5733. See Ohio Code 5733.04
(1) “Borrower” means any person that receives a loan from the director of development under section 166.21 of the Revised Code, regardless of whether the borrower is subject to the taxes imposed by sections 5733.06, 5733.065, and 5733.066 of the Revised Code.
(2) “Related member” has the same meaning as in section 5733.042 of the Revised Code.
(3) “Qualified research and development loan payments” has the same meaning as in division (D) of section 166.21 of the Revised Code.
(B) Beginning with tax year 2004, and in the case of a corporation subject to division (G)(2) of section 5733.01 of the Revised Code ending with tax year 2008, a nonrefundable credit is allowed against the taxes imposed by sections 5733.06, 5733.065, and 5733.066 of the Revised Code equal to a borrower’s qualified research and development loan payments made during the calendar year immediately preceding the tax year for which the credit is claimed. The amount of the credit for a tax year shall not exceed one hundred fifty thousand dollars. No taxpayer is entitled to claim a credit under this section unless it has obtained a certificate issued by the director of development under division (D) of section 166.21 of the Revised Code and submits a copy of the certificate with its report for the taxable year. Failure to submit a copy of the certificate with the report does not invalidate a claim for a credit if the taxpayer submits a copy of the certificate within sixty days after the tax commissioner requests it. The credit shall be claimed in the order required under section 5733.98 of the Revised Code. The credit, to the extent it exceeds the taxpayer’s tax liability for the tax year after allowance for any other credits that precede the credit under this section in that order, shall be carried forward to the next succeeding tax year or years until fully used. A corporation subject to division (G)(2) of section 5733.01 of the Revised Code may carry forward any credit not fully utilized by tax year 2008 and apply it against the tax levied by Chapter 5751 of the Revised Code to the extent allowed under section 5751.52 of the Revised Code.
(C) A borrower entitled to a credit under this section may assign the credit, or a portion thereof, to any of the following:
(1) A related member of that borrower;
(2) The owner or lessee of the eligible research and development project;
(3) A related member of the owner or lessee of the eligible research and development project.
A borrower making an assignment under this division shall provide written notice of the assignment to the tax commissioner and the director of development, in such form as the tax commissioner prescribes, before the credit that was assigned is used. The assignor may not claim the credit to the extent it was assigned to an assignee. The assignee may claim the credit only to the extent the assignor has not claimed it.
(D) If any taxpayer is a partner in a partnership or a member in a limited liability company treated as a partnership for federal income tax purposes, the taxpayer shall be allowed the taxpayer’s distributive or proportionate share of the credit available through the partnership or limited liability company.
(E) The aggregate credit against the taxes imposed by sections 5733.06, 5733.065, 5733.066, and 5747.02 of the Revised Code that may be claimed under this section and section 5747.331 of the Revised Code by a borrower as a result of qualified research and development loan payments attributable during a calendar year to any one loan shall not exceed one hundred fifty thousand dollars.