Ohio § 5733.31

§ 5733.31.

(A) As used in this section: (1) “ Component member ” has the same meaning as in section 1563(b) of the Internal Revenue Code . (2) “ Controlled group ” has the same meaning as in section 179(d)(7) of the Internal Revenue Code . (3) “ Cost ” has the same meaning as in section 179(d)(3) of the Internal Revenue Code . (4) “ Eighteen-month period ” means the eighteen-month period that begins January 1, 1995, and ends June 30, 1996. (5) “ Manufacturer ” has the same meaning as in section 5711.16 of the Revised Code . (6) “ Manufacturing machinery or equipment ” has the same meaning as “engines and machinery, and tools and implements, of every

kind used, or designed to be used, in refining and manufacturing” in section 5711.16 of the Revised Code . (7) “ New manufacturing machinery or equipment ” means manufacturing machinery or equipment, the original use of which commences

with the taxpayer or with a partnership of which the taxpayer is a partner. (8) “ Purchase ” has the same meaning as in section 179(d)(2) of the Internal Revenue Code . (B) A nonrefundable credit is allowed against the tax imposed by section 5733.06 of the Revised Code for a taxpayer that purchases new manufacturing machinery or equipment that the taxpayer

locates in this state and uses as a manufacturer.  The credit also is allowed for a taxpayer that is a direct or indirect partner in

a partnership that purchases new manufacturing machinery or equipment that the partnership

locates in this state and uses as a manufacturer.  In either event, the credit is available only if both of the following conditions

are met: (1) The purchases are made during the eighteen-month period; (2) In the case of such new manufacturing machinery or equipment purchased by the taxpayer,

the cumulative cost of the new machinery or equipment, when added to the cumulative

cost of any other such manufacturing machinery or equipment purchased by other component

members of a controlled group of corporations of which the taxpayer is a component

member, equals or exceeds twenty per cent of the aggregate cost of all tangible personal

property located in the United States and owned by the taxpayer or other component

members of a controlled group of corporations of which the taxpayer is a component

member, at the close of the taxpayer's most recent taxable year ending before the

eighteen-month period.  In the case of such new manufacturing machinery or equipment purchased by a partnership

of which the taxpayer is a direct or indirect partner, the cumulative cost of such

property equals or exceeds twenty per cent of the aggregate cost of all tangible personal

property located in the United States and owned by the partnership at the close of

its most recent federal taxable year ending before the eighteen-month period, and

the taxpayer's distributive share of such cumulative cost, when added to the cumulative

cost of any other such new manufacturing machinery or equipment purchased by the taxpayer

or other component members of a controlled group of corporations of which the taxpayer

is a component member, equals or exceeds twenty per cent of the aggregate cost of

all tangible personal property located in the United States and owned by the taxpayer

or other component members of a controlled group of corporations of which the taxpayer

is a component member, at the close of the taxpayer's most recent taxable year ending

before the eighteen-month period. (C) The amount of the credit equals twenty per cent of the cost of the new manufacturing

machinery and equipment located and used in this state by the manufacturer.  However, the aggregate credit allowed to any taxpayer, or if the taxpayer is a component

member of a controlled group of corporations, to the controlled group, shall not exceed

five hundred thousand dollars.  If the manufacturing machinery and equipment is purchased by a partnership, the

five-hundred-thousand-dollar limit applies both to the partnership and to the taxpayer

or controlled group.  The taxpayer shall be allowed its distributive share of any credit available through

the partnership, and such share shall be aggregated with any other credit available

to the taxpayer or controlled group under this section before applying the five-hundred-thousand-dollar

limit to the taxpayer or controlled group.  The taxpayer may allocate the amount of credit, as so limited, among any of its

taxable years that end after the purchase is made and include any portion of the eighteen-month

period.  The taxpayer shall claim the credit in the order required under section 5733.98 of the Revised Code .  Any credit amount in excess of the tax due under this chapter after allowing for

any other credits that precede the credit under this section in that order may be

carried forward for three taxable years after the last taxable year that includes

any portion of the eighteen-month period, but the amount of the excess credit allowed

in any such year shall be deducted from the balance carried forward to the next year. (D) Nothing in this section shall be construed to limit or disallow pass-through treatment

of a partnership's income, deductions, credits, or other amounts necessary to compute

the tax imposed by section 5733.06 of the Revised Code and the credits allowed by this chapter.