Fillable Ohio Schedule E - Nonrefundable Business Credits

Schedule E

Rev. 1/15

liability. Nevertheless, a pass-through entity can make an ir-

The amount of the credit is equal to 50% of the money the

revocable election to pass-through the credit to its owners.

taxpayer invests in a certiﬁ ed ethanol plant up to a maximum

If the pass-through entity makes the election, those owners

of $5,000 per taxpayer per ethanol plant regardless of the

that are individuals can claim their share of the credit against

number of years in which the taxpayer makes investments.

either their CAT liability on a stand-alone basis or against their

The credit shall be claimed for the taxable year during which

Ohio individual income tax liability. See Ohio Revised Code

the investment was made.

sections 122.171(I) and 5747.058(B).

“Ethanol” means the fermentation of ethyl alcohol from agricul-

For additional information please contact the Ohio Develop-

tural products, including potatoes, cereal, grains, cheese whey,

ment Services Agency’s Ofﬁ ce of Grants and Tax Incentives

sugar beets, forest products and other renewable resources

at (614) 466-4551 or (800) 848-1300.

that meet all of the speciﬁ cations of the ASTM. Certiﬁ ed

ethanol plant means a facility at which ethanol is produced

Line 3 – Credit for Eligible New Employees in an

and for which the Ohio Department of Agriculture has issued

Enterprise Zone

a certiﬁ cate under R.C. 901.13.

An employer that is complying with an enterprise zone agree-

If the investor is a pass-through entity, each equity investor in

ment under R.C. 5709.62 and 5709.63 and that has not

the pass-through entity may claim a proportionate share of the

closed or reduced employment at any place of business in

credit. The total credit for all years may not exceed the maxi-

Ohio within the previous 12 months may apply to the director

mum limit of $5,000 per taxpayer per certiﬁ ed ethanol plant.

of the Ohio Development Services Agency for an “employee

tax credit certiﬁ cate” for each “eligible new employee,” which

The Ohio Department of Agriculture administered this credit. To

the employer hires after June 30, 1994 at the facility to which

obtain additional information, please contact the Ohio Depart-

the enterprise zone agreement applies.

ment of Agriculture, 8995 East Main Street, Reynoldsburg,

OH 43068; general phone number: 614-466-2732; e-mail

An employer that receives a tax credit certiﬁ cate for an eligible

address: agri@odant.agri.state.oh.us.

employee may claim a $1,000 nonrefundable credit for each

taxable year covered under the enterprise zone agreement

Line 5 – Credit for Purchases of Grape Production

during which the employer employs the eligible new employee.

Property

If an eligible employee is employed for less than the employer’s

Grape producers may claim a credit equal to 10% of the cost

full taxable year, the taxpayer’s credit is proportionately re-

of purchasing and installing or constructing qualifying property

duced. See R.C. 5709.66(B)(1).

on or after Jan. 1, 1994. Qualifying property is any property,

An “eligible employee” is a new employee at the facility to

plant or equipment used in growing, harvesting or producing

which the enterprise zone agreement applies who at the time

grapes in Ohio. The credit is subject to recapture if the taxpayer

hired was a recipient of aid to dependent children or general

disposes of the property or ceases to use it as qualifying prop-

assistance and who resided for at least one year in the county

erty within seven years after placing it in operation. The grape

in which the facility is located. See R.C. 5709.66(B)(2)(a).

producer calculates the credit. If the producer is a pass-through

entity, each investor in the pass-through entity may claim a

Important: Taxpayers who claim this credit should maintain for

proportionate share of the credit. Enter the credit amount in

four years a supporting schedule that provides the following

Schedule E-2, line 1, in the appropriate column. Unused credit

information for each eligible employee for which an employee

amounts may be carried forward for seven taxable years fol-

tax credit certiﬁ cate is received from the director of the Ohio

lowing the taxable year in which the credit is generated. After

Development Services Agency: (a) name of employee, (b) date

that time the unused portion of the credit expires.

hired (and date of termination of employment if applicable)

and (c) amount of credit claimed. If a taxpayer claims the R.C.

Line 6 – InvestOhio Credit

5709.66 enterprise zone new employee tax credit with respect

InvestOhio provides a nonrefundable personal income tax

to an employee, the taxpayer may not claim the R.C. 122.17

credit to investors that infuse new equity (cash) into Ohio small

new jobs refundable credit with respect to that employee. See

businesses to acquire an ownership interest in the company.

R.C. 5709.66(B)(2)(b)(i) and 122.17(A).

The small business is required to reinvest that infusion of

cash into one of ﬁ ve categories of allowable expenses within

The employer calculates the credit. If the employer is a pass-

six months of its receipt. The investor must retain his or her

through entity, each investor in the pass-through entity may

ownership interest for a two-year holding period before the

claim a proportionate share of the credit. Enter credit amount

tax credit may be claimed. The small business must similarly

in Schedule E-2, line 1 in the appropriate column. Unused

retain the property that it purchased from the cash infusion

credit amounts may be carried forward for three taxable years

for the entire two-year holding period.

following the taxable year in which the credit is generated.

The program is administered by the Ohio Develop-

Line 4 – Credit for Certiﬁ ed Ethanol Plant Investments

ment Services Agency in collaboration with the Ohio

A taxpayer may claim a credit if the taxpayer invests in a certi-

Department of Taxation. For more information, go to

ﬁ ed ethanol plant. The investment must be made after Jan. 1,

2002 and before Dec. 31, 2012.

- 4 -

Ohio Schedule E - Nonrefundable Business Credits - 2014 Page 4

Related Articles

Related forms

Related Categories