Fillable Ohio Schedule E - Nonrefundable Business Credits

Schedule E

Rev. 1/15

For project applications that are approved after March 13,

• The training program is approved by the director of the Ohio

2008, the credit is limited to $5 million per project and the

Development Services Agency; AND

credit can contain a refundable portion and a nonrefundable

• The purpose of the training program is to satisfy the need of

portion. If the credit allowed for any taxable year exceeds the

a particular industry or enterprise for skilled or semi-skilled

tax otherwise due under R.C. 5747.02, after allowing for any

employees; AND

other credits preceding the credit in the order prescribed by

R.C. 5747.98, the excess will be refunded to the taxpayer, but

• An individual is required to complete the course or program

if any amount of the credit is refunded, the sum of the amount

before ﬁ lling a position at the enterprise’s facility.

refunded and the amount applied to reduce the tax otherwise

due for that year may not exceed $3 million or, if the certiﬁ cate

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

owner is a pass-through entity, may not exceed the taxpayer’s

through entity, each equity investor may claim a proportionate

distributive or proportionate share of $3 million. The taxpayer

share of the credit. Enter the credit amount in Schedule E-2,

may carry forward any balance of the credit in excess of the

line 1 in the appropriate column. Credit amounts that are not

amount claimed for that year for not more than ﬁ ve ensuing

used can be carried forward to the succeeding taxable year

taxable years, and must deduct any amount claimed for any

or years until fully utilized.

such year from the amount claimed in an ensuing year.

Line 9 – Ohio Historic Preservation Credit

Additional information is available on ODSA’s Web site at www.

Nonrefundable Portion

development.ohio.gov/cs/cs_ohptc.htm.

Administered by the Ohio Development Services Agency

(ODSA), the historic preservation credit applies to owners

Refundable Business Credits

and qualiﬁ ed lessees of certain historic Ohio buildings for the

Do not use Schedule E to claim refundable credits. Instead,

expenditures paid or incurred to rehabilitate such buildings,

claim them on the appropriate “refundable credits” line on your

provided that ODSA approves the proposed rehabilitation

Ohio income tax return.

project. If ODSA approves the project, the credit equals 25%

of the owner’s or qualiﬁ ed lessee’s “qualiﬁ ed rehabilitation

A refundable credit is treated as a payment of the tax and is

expenditures” (QREs) paid or incurred during the 24- or

accounted for after the nonrefundable credits. Unlike nonre-

60-month rehabilitation period shown on the taxpayer’s tax

fundable credits, a refundable credit may result in the taxpayer

credit certiﬁ cate issued by ODSA. “Qualiﬁ ed lessee” is deﬁ ned

receiving a refund for a credit amount in excess of tax due

in R.C. 149.311. The historic building’s owners or qualiﬁ ed

after reduction for all nonrefundable credits.

lessees can claim the credit against their income tax liability.

See R.C. 149.311 and 5747.76.

Grant for New Manufacturing Machinery and Equipment

For taxable years ending on or after July 1, 2005, the R.C.

Amended Substitute House Bill 1, 128th General

5747.31 second credit for purchases of new manufacturing and

Assembly, effective July 19, 2009, amended the credit to

equipment (the 7.5%-13.5% manufacturer’s credit) converts

speciﬁ cally provide that if a pass-through entity owns and

to a nonrefundable grant administered by the Ohio Develop-

restores a historic building with respect to which the ODSA

ment Services Agency.

issued a preservation tax credit certiﬁ cate for the pass-through

entity’s QREs, the PTE can allocate the credit among the

Federal Privacy Act Notice

pass-through entity’s equity owners in proportion to their

ownership interests or in such proportions or amounts as the

Because we require you to provide us with a Social Se-

equity owners mutually agree. The new law applies to credits

curity number, the Federal Privacy Act of 1974 requires

claimed with respect to certiﬁ cates issued in taxable years

us to inform you that providing us with your Social Secu-

ending on or after Oct. 16, 2009. See section 803.20 of the bill.

rity number is mandatory. Ohio Revised Code sections

(While prior law did not speciﬁ cally address credit allocation,

5703.05, 5703.057 and 5747.08 authorize us to request

the department maintained that the pass-through entity must

this information. We need your Social Security number in

allocate the credit to each equity investor in accordance with

order to administer this tax.

the investor’s interest in the pass-through entity on the date

that the pass-through entity ﬁ led the tax credit certiﬁ cate

request.)

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Ohio Schedule E - Nonrefundable Business Credits - 2014 Page 6

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