Fillable Schedule E - Ohio Schedule E Nonrefundable Business Credits

Schedule E

Rev. 12/12

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

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

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

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

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

Refundable Business Credits

ownership interests or in such proportions or amounts as the

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

equity owners mutually agree. The new law applies to credits

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

claimed with respect to certiﬁ cates issued in taxable years

Ohio income tax return.

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

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

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

the department maintained that the pass-through entity must

counted for after the nonrefundable credits. Unlike nonrefund-

allocate the credit to each equity investor in accordance with

able credits, a refundable credit may result in the taxpayer’s

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

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

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

after reduction for all nonrefundable credits.

request.)

Grant for New Manufacturing Machinery and Equipment

For project applications that are approved after March 13,

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

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

5747.31 second credit for purchases of new manufacturing and

credit can contain a refundable portion and a nonrefundable

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

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

to a nonrefundable grant administered by the Ohio Develop-

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

ment Services Agency.

other credits preceding the credit in the order prescribed by

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

Federal Privacy Act Notice

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

refunded and the amount applied to reduce the tax otherwise

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

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

curity number, the Federal Privacy Act of 1974 requires

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

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

distributive or proportionate share of $3 million. The taxpayer

rity number is mandatory. Ohio Revised Code sections

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

5703.05, 5703.057 and 5747.08 authorize us to request

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

this information. We need your Social Security number in

taxable years, and must deduct any amount claimed for any

order to administer this tax.

such year from the amount claimed in an ensuing year.

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Schedule E - Ohio Schedule E Nonrefundable Business Credits - 2012 Page 7

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