As Introduced

129th General Assembly Regular Session 2011-2012

H. B. No. 406

Representative Beck 

Cosponsors: Representatives Reece, Combs 

---

A BILL

To amend section 5747.98 and to enact section 5747.78

1

of the Revised Code to authorize a nonrefundable

2

income tax credit for the purchase of a new home.

3

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 5747.98 be amended and section	4
5747.78 of the Revised Code be enacted to read as follows:	5

Sec. 5747.78.  (A) As used in this section:

6

(1) "Qualified principal residence" means a single-family	7
residence, whether detached or attached, that has never been	8
occupied and that is purchased to be the principal residence of	9
the taxpayer for a minimum of twenty-four months. "Qualified	10
principal residence" does not include a new residence built by or	11
on the order of the taxpayer on land owned by the taxpayer before	12
construction begins.	13

(2) "Single-family residence" means a residential structure	14
built to be occupied by a single family, including a detached	15
house, a condominium or townhouse, or a unit in a housing	16
cooperative as defined by section 323.151 of the Revised Code.	17

(3) "Purchase" means the date on which escrow closes with	18
respect to the purchase of a qualified principal residence.	19

(4) "Annual credit limit" means the total amount of all	20
credits that may be authorized under this section for a calendar	21
year. The "annual credit limit" equals fifty million dollars.	22

(B) A nonrefundable credit may be claimed against the tax	23
imposed by section 5747.02 of the Revised Code by a taxpayer that	24
purchases a qualified principal residence located in this state on	25
or after the effective date of the enactment of this section and	26
before January 1, 2014. The amount of the credit shall equal the	27
lesser of ten per cent of the purchase price of the qualified	28
principal residence or fifty thousand dollars.	29

(C) A taxpayer that purchases a qualified principal residence	30
shall submit an application for the credit to the department of	31
development on or before the last day of the taxable year in which	32
the qualified principal residence was purchased or within one week	33
after the date of purchase, whichever is later. The department	34
shall prescribe the form of the application. Upon receipt of an	35
application, the department shall approve the application if each	36
of the following apply:	37

(1) The taxpayer has purchased a qualified principal	38
residence;	39

(2) The annual credit limit has not been reached;

40

(3) The application includes a certification from the seller	41
of the qualified principal residence that the residence has not	42
been previously occupied;	43

(4) The taxpayer has not previously received a credit under	44
this section;	45

(5) The taxpayer certifies in the application that the	46
taxpayer intends to occupy the qualified principal residence for	47
at least twenty-four months after the date of purchase.	48

(D) The taxpayer shall claim the credit allowed under this	49
section in the order prescribed in section 5747.98 of the Revised	50
Code. The credit, to the extent it exceeds the taxpayer's tax	51
liability for a taxable year after allowance for any other credits	52
that precede the credit in that order, shall be carried forward to	53
the next succeeding taxable year or years until fully used.	54

(E) If a taxpayer is awarded a credit under this section but	55
does not occupy the qualified principal residence as the	56
taxpayer's principal residence for at least twenty-four months	57
after the date of purchase, the taxpayer may not claim any unused	58
portion of the credit for the taxable year in which the taxpayer	59
ceases to occupy the qualified principal residence and shall repay	60
the full credit amount claimed for any preceding taxable year. If	61
a taxpayer dies within two years after the date of purchase of a	62
qualified principal residence for which a credit has been allowed,	63
the awarded credit is not subject to recapture under this	64
division. The amount to be recaptured may be collected by	65
assessment as unpaid tax under section 5747.13 of the Revised	66
Code.	67

(F) If two or more taxpayers who are not married taxpayers	68
filing a joint return purchase a qualified principal residence,	69
the amount of the credit shall be allocated among the taxpayers in	70
proportion to each taxpayer's percentage of ownership of the	71
residence.	72

Sec. 5747.98.  (A) To provide a uniform procedure for	73
calculating the amount of tax due under section 5747.02 of the	74
Revised Code, a taxpayer shall claim any credits to which the	75
taxpayer is entitled in the following order:	76

(1) The retirement income credit under division (B) of	77
section 5747.055 of the Revised Code;	78

(2) The senior citizen credit under division (C) of section	79
5747.05 of the Revised Code;	80

(3) The lump sum distribution credit under division (D) of	81
section 5747.05 of the Revised Code;	82

(4) The dependent care credit under section 5747.054 of the	83
Revised Code;	84

(5) The lump sum retirement income credit under division (C)	85
of section 5747.055 of the Revised Code;	86

(6) The lump sum retirement income credit under division (D)	87
of section 5747.055 of the Revised Code;	88

(7) The lump sum retirement income credit under division (E)	89
of section 5747.055 of the Revised Code;	90

(8) The low-income credit under section 5747.056 of the	91
Revised Code;	92

(9) The credit for displaced workers who pay for job training	93
under section 5747.27 of the Revised Code;	94

(10) The campaign contribution credit under section 5747.29	95
of the Revised Code;	96

(11) The twenty-dollar personal exemption credit under	97
section 5747.022 of the Revised Code;	98

(12) The joint filing credit under division (G) of section	99
5747.05 of the Revised Code;	100

(13) The nonresident credit under division (A) of section	101
5747.05 of the Revised Code;	102

(14) The credit for a resident's out-of-state income under	103
division (B) of section 5747.05 of the Revised Code;	104

(15) The credit for employers that enter into agreements with	105
child day-care centers under section 5747.34 of the Revised Code;	106

(16) The credit for employers that reimburse employee child	107
care expenses under section 5747.36 of the Revised Code;	108

(17) The credit for adoption of a minor child under section	109
5747.37 of the Revised Code;	110

(18) The credit for purchases of lights and reflectors under	111
section 5747.38 of the Revised Code;	112

(19) The nonrefundable job retention credit under division	113
(B) of section 5747.058 of the Revised Code;	114

(20) The credit for selling alternative fuel under section	115
5747.77 of the Revised Code;	116

(21) The second credit for purchases of new manufacturing	117
machinery and equipment and the credit for using Ohio coal under	118
section 5747.31 of the Revised Code;	119

(22) The job training credit under section 5747.39 of the	120
Revised Code;	121

(23) The enterprise zone credit under section 5709.66 of the	122
Revised Code;	123

(24) The credit for the eligible costs associated with a	124
voluntary action under section 5747.32 of the Revised Code;	125

(25) The credit for employers that establish on-site child	126
day-care centers under section 5747.35 of the Revised Code;	127

(26) The ethanol plant investment credit under section	128
5747.75 of the Revised Code;	129

(27) The credit for purchases of qualifying grape production	130
property under section 5747.28 of the Revised Code;	131

(28) The small business investment credit under section	132
5747.81 of the Revised Code;	133

(29) The credit for research and development and technology	134
transfer investors under section 5747.33 of the Revised Code;	135

(30) The enterprise zone credits under section 5709.65 of the	136
Revised Code;	137

(31) The research and development credit under section	138
5747.331 of the Revised Code;	139

(32) The credit for rehabilitating a historic building under	140
section 5747.76 of the Revised Code;	141

(33) The credit for the purchase of a new home under section	142
5747.78 of the Revised Code;	143

(34) The refundable credit for rehabilitating a historic	144
building under section 5747.76 of the Revised Code;	145

(34)(35) The refundable jobs creation credit or job retention	146
credit under division (A) of section 5747.058 of the Revised Code;	147

(35)(36) The refundable credit for taxes paid by a qualifying	148
entity granted under section 5747.059 of the Revised Code;	149

(36)(37) The refundable credits for taxes paid by a	150
qualifying pass-through entity granted under division (J) of	151
section 5747.08 of the Revised Code;	152

(37)(38) The refundable credit for tax withheld under	153
division (B)(1) of section 5747.062 of the Revised Code;	154

(38)(39) The refundable credit for tax withheld under section	155
5747.063 of the Revised Code;	156

(39)(40) The refundable credit under section 5747.80 of the	157
Revised Code for losses on loans made to the Ohio venture capital	158
program under sections 150.01 to 150.10 of the Revised Code;	159

(40)(41) The refundable motion picture production credit	160
under section 5747.66 of the Revised Code.	161

(B) For any credit, except the refundable credits enumerated	162
in this section and the credit granted under division (I) of	163
section 5747.08 of the Revised Code, the amount of the credit for	164
a taxable year shall not exceed the tax due after allowing for any	165
other credit that precedes it in the order required under this	166
section. Any excess amount of a particular credit may be carried	167
forward if authorized under the section creating that credit.	168
Nothing in this chapter shall be construed to allow a taxpayer to	169
claim, directly or indirectly, a credit more than once for a	170
taxable year.	171

Section 2.  That existing section 5747.98 of the Revised Code	172
is hereby repealed.	173