Ohio § 5747.01

§ 5747.01.

Except as otherwise expressly provided or clearly appearing from the context, any

term used in this chapter that is not otherwise defined in this section has the same

meaning as when used in a comparable context in the laws of the United States relating

to federal income taxes or if not used in a comparable context in those laws, has

the same meaning as in section 5733.40 of the Revised Code .  Any reference in this chapter to the Internal Revenue Code includes other laws of

the United States relating to federal income taxes. As used in this chapter: (A) “ Adjusted gross income ” or “ Ohio adjusted gross income ” means federal adjusted gross income, as defined and used in the Internal Revenue

Code, adjusted as provided in this section: (1) Add interest or dividends on obligations or securities of any state or of any political

subdivision or authority of any state, other than this state and its subdivisions

and authorities. (2) Add interest or dividends on obligations of any authority, commission, instrumentality,

territory, or possession of the United States to the extent that the interest or dividends

are exempt from federal income taxes but not from state income taxes. (3) Deduct interest or dividends on obligations of the United States and its territories

and possessions or of any authority, commission, or instrumentality of the United

States to the extent that the interest or dividends are included in federal adjusted

gross income but exempt from state income taxes under the laws of the United States. (4) Deduct disability and survivor's benefits to the extent included in federal adjusted

gross income. (5) Deduct the following, to the extent not otherwise deducted or excluded in computing

federal or Ohio adjusted gross income: (a) Benefits under Title II of the Social Security Act 1 and tier 1 railroad retirement; (b) Railroad retirement benefits, other than tier 1 railroad retirement benefits, to

the extent such amounts are exempt from state taxation under federal law. (6) Deduct the amount of wages and salaries, if any, not otherwise allowable as a deduction

but that would have been allowable as a deduction in computing federal adjusted gross

income for the taxable year, had the work opportunity tax credit allowed and determined

under sections 38 , 51 , and 52 of the Internal Revenue Code 2 not been in effect. (7) Deduct any interest or interest equivalent on public obligations and purchase obligations

to the extent that the interest or interest equivalent is included in federal adjusted

gross income. (8) Add any loss or deduct any gain resulting from the sale, exchange, or other disposition

of public obligations to the extent that the loss has been deducted or the gain has

been included in computing federal adjusted gross income. (9) Deduct or add amounts, as provided under section 5747.70 of the Revised Code , related to contributions made to or tuition units purchased under a qualified tuition

program established pursuant to section 529 of the Internal Revenue Code . (10)(a) Deduct, to the extent not otherwise allowable as a deduction or exclusion in computing

federal or Ohio adjusted gross income for the taxable year, the amount the taxpayer

paid during the taxable year for medical care insurance and qualified long-term care

insurance for the taxpayer, the taxpayer's spouse, and dependents.  No deduction for medical care insurance under division (A)(10)(a) of this section

shall be allowed either to any taxpayer who is eligible to participate in any subsidized

health plan maintained by any employer of the taxpayer or of the taxpayer's spouse,

or to any taxpayer who is entitled to, or on application would be entitled to, benefits

under part A of Title XVIII of the “Social Security Act,” 49 Stat. 620 (1935), 42 U.S.C. 301 , as amended.  For the purposes of division (A)(10)(a) of this section, “ subsidized health plan ” means a health plan for which the employer pays any portion of the plan's cost.  The deduction allowed under division (A)(10)(a) of this section shall be the net

of any related premium refunds, related premium reimbursements, or related insurance

premium dividends received during the taxable year. (b) Deduct, to the extent not otherwise deducted or excluded in computing federal or

Ohio adjusted gross income during the taxable year, the amount the taxpayer paid during

the taxable year, not compensated for by any insurance or otherwise, for medical care

of the taxpayer, the taxpayer's spouse, and dependents, to the extent the expenses

exceed seven and one-half per cent of the taxpayer's federal adjusted gross income. (c) For purposes of division (A)(10) of this section, “ medical care ” has the meaning given in section 213 of the Internal Revenue Code , subject to the special rules, limitations, and exclusions set forth therein, and

“ qualified long-term care ” has the same meaning given in section 7702B(c) of the Internal Revenue Code . 3 Solely for purposes of division (A)(10)(a) of this section, “ dependent ” includes a person who otherwise would be a “qualifying relative” and thus a “dependent”

under section 152 of the Internal Revenue Code 6 but for the fact that the person fails to meet the income and support limitations

under section 152(d)(1)(B) and (C) of the Internal Revenue Code . 7 (11)(a) Deduct any amount included in federal adjusted gross income solely because the amount

represents a reimbursement or refund of expenses that in any year the taxpayer had

deducted as an itemized deduction pursuant to section 63 of the Internal Revenue Code and applicable United States department of the treasury regulations.  The deduction otherwise allowed under division (A)(11)(a) of this section shall

be reduced to the extent the reimbursement is attributable to an amount the taxpayer

deducted under this section in any taxable year. (b) Add any amount not otherwise included in Ohio adjusted gross income for any taxable

year to the extent that the amount is attributable to the recovery during the taxable

year of any amount deducted or excluded in computing federal or Ohio adjusted gross

income in any taxable year. (12) Deduct any portion of the deduction described in section 1341(a)(2) of the Internal Revenue Code , for repaying previously reported income received under a claim of right, that meets

both of the following requirements: (a) It is allowable for repayment of an item that was included in the taxpayer's adjusted

gross income for a prior taxable year and did not qualify for a credit under division (A) or (B) of section 5747.05 of the Revised Code for that year; (b) It does not otherwise reduce the taxpayer's adjusted gross income for the current

or any other taxable year. (13) Deduct an amount equal to the deposits made to, and net investment earnings of, a

medical savings account during the taxable year, in accordance with section 3924.66 of the Revised Code .  The deduction allowed by division (A)(13) of this section does not apply to medical

savings account deposits and earnings otherwise deducted or excluded for the current

or any other taxable year from the taxpayer's federal adjusted gross income. (14)(a) Add an amount equal to the funds withdrawn from a medical savings account during

the taxable year, and the net investment earnings on those funds, when the funds withdrawn

were used for any purpose other than to reimburse an account holder for, or to pay,

eligible medical expenses, in accordance with section 3924.66 of the Revised Code ; (b) Add the amounts distributed from a medical savings account under division (A)(2) of section 3924.68 of the Revised Code during the taxable year. (15) Add any amount claimed as a credit under section 5747.059 of the Revised Code to the extent that such amount satisfies either of the following: (a) The amount was deducted or excluded from the computation of the taxpayer's federal

adjusted gross income as required to be reported for the taxpayer's taxable year under

the Internal Revenue Code; (b) The amount resulted in a reduction of the taxpayer's federal adjusted gross income

as required to be reported for any of the taxpayer's taxable years under the Internal

Revenue Code. (16) Deduct the amount contributed by the taxpayer to an individual development account

program established by a county department of job and family services pursuant to sections 329.11 to 329.14 of the Revised Code for the purpose of matching funds deposited by program participants.  On request of the tax commissioner, the taxpayer shall provide any information that,

in the tax commissioner's opinion, is necessary to establish the amount deducted under

division (A)(16) of this section. (17)(a)(i) Subject to divisions (A)(17)(a)(iii), (iv), and (v) of this section, add five-sixths

of the amount of depreciation expense allowed by subsection (k) of section 168 of the Internal Revenue Code , including the taxpayer's proportionate or distributive share of the amount of depreciation

expense allowed by that subsection to a pass-through entity in which the taxpayer

has a direct or indirect ownership interest. (ii) Subject to divisions (A)(17)(a)(iii), (iv), and (v) of this section, add five-sixths

of the amount of qualifying section 179 depreciation expense, including the taxpayer's

proportionate or distributive share of the amount of qualifying section 179 depreciation

expense allowed to any pass-through entity in which the taxpayer has a direct or indirect

ownership interest. (iii) Subject to division (A)(17)(a)(v) of this section, for taxable years beginning in

2012 or thereafter, if the increase in income taxes withheld by the taxpayer is equal

to or greater than ten per cent of income taxes withheld by the taxpayer during the

taxpayer's immediately preceding taxable year, “two-thirds” shall be substituted for

“five-sixths” for the purpose of divisions (A)(17)(a)(i) and (ii) of this section. (iv) Subject to division (A)(17)(a)(v) of this section, for taxable years beginning in

2012 or thereafter, a taxpayer is not required to add an amount under division (A)(17)

of this section if the increase in income taxes withheld by the taxpayer and by any

pass-through entity in which the taxpayer has a direct or indirect ownership interest

is equal to or greater than the sum of (I) the amount of qualifying section 179 depreciation

expense and (II) the amount of depreciation expense allowed to the taxpayer by subsection (k) of section 168 of the Internal Revenue Code , and including the taxpayer's proportionate or distributive shares of such amounts

allowed to any such pass-through entities. (v) If a taxpayer directly or indirectly incurs a net operating loss for the taxable

year for federal income tax purposes, to the extent such loss resulted from depreciation

expense allowed by subsection (k) of section 168 of the Internal Revenue Code and by qualifying section 179 depreciation expense, “the entire” shall be substituted

for “five-sixths of the” for the purpose of divisions (A)(17)(a)(i) and (ii) of this

section. The tax commissioner, under procedures established by the commissioner, may waive

the add-backs related to a pass-through entity if the taxpayer owns, directly or indirectly,

less than five per cent of the pass-through entity. (b) Nothing in division (A)(17) of this section shall be construed to adjust or modify

the adjusted basis of any asset. (c) To the extent the add-back required under division (A)(17)(a) of this section is

attributable to property generating nonbusiness income or loss allocated under section 5747.20 of the Revised Code , the add-back shall be sitused to the same location as the nonbusiness income or

loss generated by the property for the purpose of determining the credit under division (A) of section 5747.05 of the Revised Code .  Otherwise, the add-back shall be apportioned, subject to one or more of the four

alternative methods of apportionment enumerated in section 5747.21 of the Revised Code . (d) For the purposes of division (A)(17)(a)(v) of this section, net operating loss carryback

and carryforward shall not include the allowance of any net operating loss deduction

carryback or carryforward to the taxable year to the extent such loss resulted from

depreciation allowed by section 168(k) of the Internal Revenue Code and by the qualifying section 179 depreciation expense amount. (e) For the purposes of divisions (A)(17) and (18) of this section: (i) “ Income taxes withheld ” means the total amount withheld and remitted under sections 5747.06 and 5747.07 of the Revised Code by an employer during the employer's taxable year. (ii) “ Increase in income taxes withheld ” means the amount by which the amount of income taxes withheld by an employer during

the employer's current taxable year exceeds the amount of income taxes withheld by

that employer during the employer's immediately preceding taxable year. (iii) “ Qualifying section 179 depreciation expense ” means the difference between (I) the amount of depreciation expense directly or

indirectly allowed to a taxpayer under section 179 of the Internal Revised Code, and

(II) the amount of depreciation expense directly or indirectly allowed to the taxpayer

under section 179 of the Internal Revenue Code as that section existed on December 31, 2002. (18)(a) If the taxpayer was required to add an amount under division (A)(17)(a) of this section

for a taxable year, deduct one of the following: (i) One-fifth of the amount so added for each of the five succeeding taxable years if

the amount so added was five-sixths of qualifying section 179 depreciation expense or depreciation expense allowed by subsection (k) of section 168 of the Internal Revenue Code ; (ii) One-half of the amount so added for each of the two succeeding taxable years if the

amount so added was two-thirds of such depreciation expense; (iii) One-sixth of the amount so added for each of the six succeeding taxable years if

the entire amount of such depreciation expense was so added. (b) If the amount deducted under division (A)(18)(a) of this section is attributable

to an add-back allocated under division (A)(17)(c) of this section, the amount deducted

shall be sitused to the same location.  Otherwise, the deduction shall be apportioned using the apportionment factors for

the taxable year in which the deduction is taken, subject to one or more of the four

alternative methods of apportionment enumerated in section 5747.21 of the Revised Code . (c) No deduction is available under division (A)(18)(a) of this section with regard to

any depreciation allowed by section 168(k) of the Internal Revenue Code and by the qualifying section 179 depreciation expense amount to the extent that such depreciation results in or increases

a federal net operating loss carryback or carryforward.  If no such deduction is available for a taxable year, the taxpayer may carry forward

the amount not deducted in such taxable year to the next taxable year and add that

amount to any deduction otherwise available under division (A)(18)(a) of this section

for that next taxable year.  The carryforward of amounts not so deducted shall continue until the entire addition

required by division (A)(17)(a) of this section has been deducted. (19) Deduct, to the extent not otherwise deducted or excluded in computing federal or

Ohio adjusted gross income for the taxable year, the amount the taxpayer received

during the taxable year as reimbursement for life insurance premiums under section 5919.31 of the Revised Code . (20) Deduct, to the extent not otherwise deducted or excluded in computing federal or

Ohio adjusted gross income for the taxable year, the amount the taxpayer received

during the taxable year as a death benefit paid by the adjutant general under section 5919.33 of the Revised Code . (21) Deduct, to the extent included in federal adjusted gross income and not otherwise

allowable as a deduction or exclusion in computing federal or Ohio adjusted gross

income for the taxable year, military pay and allowances received by the taxpayer

during the taxable year for active duty service in the armed forces of the United

States, as defined in section 5907.01 of the Revised Code , or reserve components thereof or the national guard.  The deduction may not be claimed for military pay and allowances received by the

taxpayer while the taxpayer is stationed in this state. (22) Deduct, to the extent not otherwise allowable as a deduction or exclusion in computing

federal or Ohio adjusted gross income for the taxable year and not otherwise compensated

for by any other source, the amount of qualified organ donation expenses incurred

by the taxpayer during the taxable year, not to exceed ten thousand dollars.  A taxpayer may deduct qualified organ donation expenses only once for all taxable

years beginning with taxable years beginning in 2007. For the purposes of division (A)(22) of this section: (a) “ Human organ ” means all or any portion of a human liver, pancreas, kidney, intestine, or lung,

and any portion of human bone marrow. (b) “ Qualified organ donation expenses ” means travel expenses, lodging expenses, and wages and salary forgone by a taxpayer

in connection with the taxpayer's donation, while living, of one or more of the taxpayer's

human organs to another human being. (23) Deduct, to the extent not otherwise deducted or excluded in computing federal or

Ohio adjusted gross income for the taxable year, amounts received by the taxpayer

as retired personnel pay for service in the uniformed services or reserve components

thereof, or the national guard, or received by the surviving spouse or former spouse

of such a taxpayer under the survivor benefit plan on account of such a taxpayer's

death.  If the taxpayer receives income on account of retirement paid under the federal

civil service retirement system or federal employees retirement system, or under any

successor retirement program enacted by the congress of the United States that is

established and maintained for retired employees of the United States government,

and such retirement income is based, in whole or in part, on credit for the taxpayer's

uniformed service, the deduction allowed under this division shall include only that

portion of such retirement income that is attributable to the taxpayer's uniformed

service, to the extent that portion of such retirement income is otherwise included

in federal adjusted gross income and is not otherwise deducted under this section.  Any amount deducted under division (A)(23) of this section is not included in a

taxpayer's adjusted gross income for the purposes of section 5747.055 of the Revised Code .  No amount may be deducted under division (A)(23) of this section on the basis of

which a credit was claimed under section 5747.055 of the Revised Code . (24) Deduct, to the extent not otherwise deducted or excluded in computing federal or

Ohio adjusted gross income for the taxable year, the amount the taxpayer received

during the taxable year from the military injury relief fund created in section 5902.05 of the Revised Code . (25) Deduct, to the extent not otherwise deducted or excluded in computing federal or

Ohio adjusted gross income for the taxable year, the amount the taxpayer received

as a veterans bonus during the taxable year from the Ohio department of veterans services

as authorized by Section 2r of Article VIII, Ohio Constitution . (26) Deduct, to the extent not otherwise deducted or excluded in computing federal or

Ohio adjusted gross income for the taxable year, any income derived from a transfer

agreement or from the enterprise transferred under that agreement under section 4313.02 of the Revised Code . (27) Deduct, to the extent not otherwise deducted or excluded in computing federal or

Ohio adjusted gross income for the taxable year, Ohio college opportunity or federal

Pell grant amounts received by the taxpayer or the taxpayer's spouse or dependent

pursuant to section 3333.122 of the Revised Code or 20 U.S.C. 1070a, et seq., and used to pay room or board furnished by the educational institution for which

the grant was awarded at the institution's facilities, including meal plans administered

by the institution.  For the purposes of this division, receipt of a grant includes the distribution

of a grant directly to an educational institution and the crediting of the grant to

the enrollee's account with the institution. (28) Deduct from the portion of an individual's federal adjusted gross income that is

business income, to the extent not otherwise deducted or excluded in computing federal

adjusted gross income for the taxable year, one hundred twenty-five thousand dollars

for each spouse if spouses file separate returns under section 5747.08 of the Revised Code or two hundred fifty thousand dollars for all other individuals. (29) Deduct, as provided under section 5747.78 of the Revised Code , contributions to ABLE savings accounts made in accordance with sections 113.50 to 113.56 of the Revised Code . (30)(a) Deduct, to the extent not otherwise deducted or excluded in computing federal or

Ohio adjusted gross income during the taxable year, all of the following: (i) Compensation paid to a qualifying employee described in division (A)(14)(a) of section 5703.94 of the Revised Code to the extent such compensation is for disaster work conducted in this state during

a disaster response period pursuant to a qualifying solicitation received by the employee's

employer; (ii) Compensation paid to a qualifying employee described in division (A)(14)(b) of section 5703.94 of the Revised Code to the extent such compensation is for disaster work conducted in this state by the

employee during the disaster response period on critical infrastructure owned or used

by the employee's employer; (iii) Income received by an out-of-state disaster business for disaster work conducted

in this state during a disaster response period, or, if the out-of-state disaster

business is a pass-through entity, a taxpayer's distributive share of the pass-through

entity's income from the business conducting disaster work in this state during a

disaster response period, if, in either case, the disaster work is conducted pursuant

to a qualifying solicitation received by the business. (b) All terms used in division (A)(30) of this section have the same meanings as in section 5703.94 of the Revised Code . (31) For a taxpayer who is a qualifying Ohio educator, deduct, to the extent not otherwise

deducted or excluded in computing federal or Ohio adjusted gross income for the taxable

year, the lesser of three hundred dollars or the amount of expenses described in subsections

(a)(2)(D)(i) and (ii) of section 62 of the Internal Revenue Code paid or incurred

by the taxpayer during the taxpayer's taxable year in excess of the amount the taxpayer

is authorized to deduct for that taxable year under subsection (a)(2)(D) of that section. (32) Deduct, to the extent not otherwise deducted or excluded in computing federal or

Ohio adjusted gross income for the taxable year, amounts received by the taxpayer

as a disability severance payment, computed under 10 U.S.C. 1212 , following discharge or release under honorable conditions from the armed forces

of the United States, as defined in section 5907.01 of the Revised Code . (33) Deduct, to the extent not otherwise deducted or excluded in computing federal adjusted

gross income or Ohio adjusted gross income, amounts not subject to tax due to an agreement

entered into under division (A)(2) of section 5747.05 of the Revised Code . (34) Deduct amounts as provided under section 5747.79 of the Revised Code related to the taxpayer's qualifying capital gains and deductible payroll. To the extent a qualifying capital gain described under division (A)(34) of this section

is business income, the taxpayer shall deduct those gains under this division before

deducting any such gains under division (A)(28) of this section. (35)(a) For taxable years beginning in or after 2026, deduct, to the extent not otherwise

deducted or excluded in computing federal or Ohio adjusted gross income for the taxable

year: (i) One hundred per cent of the capital gain received by the taxpayer in the taxable

year from a qualifying interest in an Ohio venture capital operating company attributable

to the company's investments in Ohio businesses during the period for which the company

was an Ohio venture operating company;  and (ii) Fifty per cent of the capital gain received by the taxpayer in the taxable year from

a qualifying interest in an Ohio venture capital operating company attributable to

the company's investments in all other businesses during the period for which the

company was an Ohio venture operating company. (b) Add amounts previously deducted by the taxpayer under division (A)(35)(a) of this

section if the director of development certifies to the tax commissioner that the

requirements for the deduction were not met. (c) All terms used in division (A)(35) of this section have the same meanings as in section 122.851 of the Revised Code . (d) To the extent a capital gain described in division (A)(35)(a) of this section is

business income, the taxpayer shall apply that division before applying division (A)(28)

of this section. (36) Add, to the extent not otherwise included in computing federal or Ohio adjusted gross

income for any taxable year, the taxpayer's proportionate share of the amount of the

tax levied under section 5747.38 of the Revised Code and paid by an electing pass-through entity for the taxable year. Notwithstanding any provision of the Revised Code to the contrary, the portion of

the addition required by division (A)(36) of this section related to the apportioned

business income of the pass-through entity shall be considered business income under

division (B) of this section.  Such addition is eligible for the deduction in division (A)(28) of this section,

subject to the applicable dollar limitations, and the tax rate prescribed by division (A)(4)(a) of section 5747.02 of the Revised Code .  The taxpayer shall provide, upon request of the tax commissioner, any documentation

necessary to verify the portion of the addition that is business income under this

division. (37) Deduct, to the extent not otherwise deducted or excluded in computing federal or

Ohio adjusted gross income for the taxable year, amounts delivered to a qualifying

institution pursuant to section 3333.128 of the Revised Code for the benefit of the taxpayer or the taxpayer's spouse or dependent. (38) Deduct, to the extent not otherwise deducted or excluded in computing federal or

Ohio adjusted gross income for the taxable year, amounts received under the Ohio adoption

grant program pursuant to section 5180.451 of the Revised Code . (39) Deduct, to the extent included in federal adjusted gross income, income attributable

to amounts provided to a taxpayer for any of the purposes for which an exclusion would

have been authorized under section 139 of the Internal Revenue Code if the train derailment near the city of East Palestine on February 3, 2023, had

been a qualified disaster pursuant to that section, or to compensate for lost business

resulting from that derailment, if such amounts are provided by any of the following: (a) A federal, state, or local government agency; (b) A railroad company, as that term is defined in section 5727.01 of the Revised Code ; (c) Any subsidiary, insurer, or agent of a railroad company or any related person. Notwithstanding any provision to the contrary, the derailment is not required to meet

the definition of a “qualified disaster” pursuant to section 139 of the Internal Revenue Code to qualify for the deduction under this section. (40) Deduct, to the extent included in federal adjusted gross income, income attributable

to loan repayments on behalf of the taxpayer under the rural practice incentive program

under section 3333.135 of the Revised Code . (41) Add any income taxes deducted in computing federal or Ohio adjusted gross income

to the extent the income taxes were derived from income subject to a tax levied in

another state or the District of Columbia when such tax was enacted for purposes of

complying with internal revenue service notice 2020-75. Notwithstanding any provision of the Revised Code to the contrary, the portion of

the addition required by division (A)(41) of this section related to the apportioned

business income of the pass-through entity shall be considered business income under

division (B) of this section.  Such addition is eligible for the deduction in division (A)(28) of this section,

subject to the applicable dollar limitations, and the tax rate prescribed by division (A)(4)(a) of section 5747.02 of the Revised Code .  The taxpayer shall provide, upon request of the tax commissioner, any documentation

necessary to verify the portion of the addition that is business income under this

division. (42) Deduct amounts contributed to a homeownership savings account and calculated pursuant

to divisions (B) and (C) of section 5747.85 of the Revised Code . (43) If the taxpayer is the account owner of a homeownership savings account, upon withdrawal

or transfer of funds from the account, or closure of the account containing funds

that are not used for eligible expenses, add the amount of such funds not used for

an eligible expense.  The addition required under this division shall not exceed the sum of the amounts

deducted by the taxpayer for such account under division (A)(42) of this section in

any taxable year and the amount of any funds deposited in the account by a contributor

other than the account owner.  As used in division (A)(43) of this section, “homeownership savings account,” “contributor,”

“account owner,” and “eligible expenses” have the same meanings as in section 5747.85 of the Revised Code . (44) Deduct, to the extent not otherwise deducted or excluded in computing federal or

Ohio adjusted gross income during the taxable year, up to seven hundred fifty dollars

of contributions the taxpayer makes to a pregnancy resource center that meets the

criteria in division (B) of section 5180.71 of the Revised Code . (B) “ Business income ” means income, including gain or loss, arising from transactions, activities, and

sources in the regular course of a trade or business and includes income, gain, or

loss from real property, tangible property, and intangible property if the acquisition,

rental, management, and disposition of the property constitute integral parts of the

regular course of a trade or business operation.  “ Business income ” includes income, including gain or loss, from a partial or complete liquidation

of a business, including, but not limited to, gain or loss from the sale or other

disposition of goodwill or the sale of an equity or ownership interest in a business. As used in this division, the “ sale of an equity or ownership interest in a business ” means sales to which either or both of the following apply: (1) The sale is treated for federal income tax purposes as the sale of assets. (2) The seller materially participated, as described in 26 C.F.R. 1.469-5T , in the activities of the business during the taxable year in which the sale occurs

or during any of the five preceding taxable years. (C) “ Nonbusiness income ” means all income other than business income and may include, but is not limited

to, compensation, rents and royalties from real or tangible personal property, capital

gains, interest, dividends and distributions, patent or copyright royalties, or lottery

winnings, prizes, and awards. (D) “ Compensation ” means any form of remuneration paid to an employee for personal services. (E) “ Fiduciary ” means a guardian, trustee, executor, administrator, receiver, conservator, or any

other person acting in any fiduciary capacity for any individual, trust, or estate. (F) “ Fiscal year ” means an accounting period of twelve months ending on the last day of any month

other than December. (G) “ Individual ” means any natural person. (H) “ Internal Revenue Code ” means the “Internal Revenue Code of 1986,” 100 Stat. 2085, 26 U.S.C.A. 1 , as amended. (I) “ Resident ” means any of the following: (1) An individual who is domiciled in this state, subject to section 5747.24 of the Revised Code ; (2) The estate of a decedent who at the time of death was domiciled in this state.  The domicile tests of section 5747.24 of the Revised Code are not controlling for purposes of division (I)(2) of this section. (3) A trust that, in whole or part, resides in this state.  If only part of a trust resides in this state, the trust is a resident only with

respect to that part. For the purposes of division (I)(3) of this section: (a) A trust resides in this state for the trust's current taxable year to the extent,

as described in division (I)(3)(d) of this section, that the trust consists directly

or indirectly, in whole or in part, of assets, net of any related liabilities, that

were transferred, or caused to be transferred, directly or indirectly, to the trust

by any of the following: (i) A person, a court, or a governmental entity or instrumentality on account of the

death of a decedent, but only if the trust is described in division (I)(3)(e)(i) or

(ii) of this section; (ii) A person who was domiciled in this state for the purposes of this chapter when the

person directly or indirectly transferred assets to an irrevocable trust, but only

if at least one of the trust's qualifying beneficiaries is domiciled in this state

for the purposes of this chapter during all or some portion of the trust's current

taxable year; (iii) A person who was domiciled in this state for the purposes of this chapter when the

trust document or instrument or part of the trust document or instrument became irrevocable,

but only if at least one of the trust's qualifying beneficiaries is a resident domiciled

in this state for the purposes of this chapter during all or some portion of the trust's

current taxable year.  If a trust document or instrument became irrevocable upon the death of a person

who at the time of death was domiciled in this state for purposes of this chapter,

that person is a person described in division (I)(3)(a)(iii) of this section. (b) A trust is irrevocable to the extent that the transferor is not considered to be

the owner of the net assets of the trust under sections 671 to 678 of the Internal Revenue Code . 4 (c) With respect to a trust other than a charitable lead trust, “qualifying beneficiary”

has the same meaning as “potential current beneficiary” as defined in section 1361(e)(2) of the Internal Revenue Code , and with respect to a charitable lead trust “ qualifying beneficiary ” is any current, future, or contingent beneficiary, but with respect to any trust

“ qualifying beneficiary ” excludes a person or a governmental entity or instrumentality to any of which a

contribution would qualify for the charitable deduction under section 170 of the Internal Revenue Code . (d) For the purposes of division (I)(3)(a) of this section, the extent to which a trust

consists directly or indirectly, in whole or in part, of assets, net of any related

liabilities, that were transferred directly or indirectly, in whole or part, to the

trust by any of the sources enumerated in that division shall be ascertained by multiplying

the fair market value of the trust's assets, net of related liabilities, by the qualifying

ratio, which shall be computed as follows: (i) The first time the trust receives assets, the numerator of the qualifying ratio is

the fair market value of those assets at that time, net of any related liabilities,

from sources enumerated in division (I)(3)(a) of this section.  The denominator of the qualifying ratio is the fair market value of all the trust's

assets at that time, net of any related liabilities. (ii) Each subsequent time the trust receives assets, a revised qualifying ratio shall

be computed.  The numerator of the revised qualifying ratio is the sum of (1) the fair market

value of the trust's assets immediately prior to the subsequent transfer, net of any

related liabilities, multiplied by the qualifying ratio last computed without regard

to the subsequent transfer, and (2) the fair market value of the subsequently transferred

assets at the time transferred, net of any related liabilities, from sources enumerated

in division (I)(3)(a) of this section.  The denominator of the revised qualifying ratio is the fair market value of all

the trust's assets immediately after the subsequent transfer, net of any related liabilities. (iii) Whether a transfer to the trust is by or from any of the sources enumerated in division

(I)(3)(a) of this section shall be ascertained without regard to the domicile of the

trust's beneficiaries. (e) For the purposes of division (I)(3)(a)(i) of this section: (i) A trust is described in division (I)(3)(e)(i) of this section if the trust is a testamentary

trust and the testator of that testamentary trust was domiciled in this state at the

time of the testator's death for purposes of the taxes levied under Chapter 5731.

of the Revised Code. (ii) A trust is described in division (I)(3)(e)(ii) of this section if the transfer is

a qualifying transfer described in any of divisions (I)(3)(f)(i) to (vi) of this section,

the trust is an irrevocable inter vivos trust, and at least one of the trust's qualifying

beneficiaries is domiciled in this state for purposes of this chapter during all or

some portion of the trust's current taxable year. (f) For the purposes of division (I)(3)(e)(ii) of this section, a “ qualifying transfer ” is a transfer of assets, net of any related liabilities, directly or indirectly

to a trust, if the transfer is described in any of the following: (i) The transfer is made to a trust, created by the decedent before the decedent's death

and while the decedent was domiciled in this state for the purposes of this chapter,

and, prior to the death of the decedent, the trust became irrevocable while the decedent

was domiciled in this state for the purposes of this chapter. (ii) The transfer is made to a trust to which the decedent, prior to the decedent's death,

had directly or indirectly transferred assets, net of any related liabilities, while

the decedent was domiciled in this state for the purposes of this chapter, and prior

to the death of the decedent the trust became irrevocable while the decedent was domiciled

in this state for the purposes of this chapter. (iii) The transfer is made on account of a contractual relationship existing directly or

indirectly between the transferor and either the decedent or the estate of the decedent

at any time prior to the date of the decedent's death, and the decedent was domiciled

in this state at the time of death for purposes of the taxes levied under Chapter

5731. of the Revised Code. (iv) The transfer is made to a trust on account of a contractual relationship existing

directly or indirectly between the transferor and another person who at the time of

the decedent's death was domiciled in this state for purposes of this chapter. (v) The transfer is made to a trust on account of the will of a testator who was domiciled

in this state at the time of the testator's death for purposes of the taxes levied

under Chapter 5731. of the Revised Code. (vi) The transfer is made to a trust created by or caused to be created by a court, and

the trust was directly or indirectly created in connection with or as a result of

the death of an individual who, for purposes of the taxes levied under Chapter 5731.

of the Revised Code, was domiciled in this state at the time of the individual's death. (g) The tax commissioner may adopt rules to ascertain the part of a trust residing in

this state. (J) “ Nonresident ” means an individual or estate that is not a resident.  An individual who is a resident for only part of a taxable year is a nonresident

for the remainder of that taxable year. (K) “Pass-through entity” has the same meaning as in section 5733.04 of the Revised Code . (L) “ Return ” means the notifications and reports required to be filed pursuant to this chapter

for the purpose of reporting the tax due and includes declarations of estimated tax

when so required. (M) “ Taxable year ” means the calendar year or the taxpayer's fiscal year ending during the calendar

year, or fractional part thereof, upon which the adjusted gross income is calculated

pursuant to this chapter. (N) “ Taxpayer ” means any person subject to the tax imposed by section 5747.02 of the Revised Code or any pass-through entity that makes the election under division (D) of section 5747.08 of the Revised Code . (O) “ Dependents ” means dependents as defined in the Internal Revenue Code. (P) “ Principal county of employment ” means, in the case of a nonresident, the county within the state in which a taxpayer

performs services for an employer or, if those services are performed in more than

one county, the county in which the major portion of the services are performed. (Q) As used in sections 5747.50 to 5747.55 of the Revised Code : (1) “ Subdivision ” means any county, municipal corporation, park district, or township. (2) “ Essential local government purposes ” includes all functions that any subdivision is required by general law to exercise,

including like functions that are exercised under a charter adopted pursuant to the

Ohio Constitution. (R) “ Overpayment ” means any amount already paid that exceeds the figure determined to be the correct

amount of the tax. (S) “ Taxable income ” or “ Ohio taxable income ” applies only to estates and trusts, and means federal taxable income, as defined

and used in the Internal Revenue Code, adjusted as follows: (1) Add interest or dividends, net of ordinary, necessary, and reasonable expenses not

deducted in computing federal taxable income, on obligations or securities of any

state or of any political subdivision or authority of any state, other than this state

and its subdivisions and authorities, but only to the extent that such net amount

is not otherwise includible in Ohio taxable income and is described in either division

(S)(1)(a) or (b) of this section: (a) The net amount is not attributable to the S portion of an electing small business

trust and has not been distributed to beneficiaries for the taxable year; (b) The net amount is attributable to the S portion of an electing small business trust

for the taxable year. (2) Add interest or dividends, net of ordinary, necessary, and reasonable expenses not

deducted in computing federal taxable income, on obligations of any authority, commission,

instrumentality, territory, or possession of the United States to the extent that

the interest or dividends are exempt from federal income taxes but not from state

income taxes, but only to the extent that such net amount is not otherwise includible

in Ohio taxable income and is described in either division (S)(1)(a) or (b) of this

section; (3) Add the amount of personal exemption allowed to the estate pursuant to section 642(b) of the Internal Revenue Code ; (4) Deduct interest or dividends, net of related expenses deducted in computing federal

taxable income, on obligations of the United States and its territories and possessions

or of any authority, commission, or instrumentality of the United States to the extent

that the interest or dividends are exempt from state taxes under the laws of the United

States, but only to the extent that such amount is included in federal taxable income

and is described in either division (S)(1)(a) or (b) of this section; (5) Deduct the amount of wages and salaries, if any, not otherwise allowable as a deduction

but that would have been allowable as a deduction in computing federal taxable income

for the taxable year, had the work opportunity tax credit allowed under sections 38 , 51 , and 52 of the Internal Revenue Code not been in effect, but only to the extent such amount relates either to income included

in federal taxable income for the taxable year or to income of the S portion of an

electing small business trust for the taxable year; (6) Deduct any interest or interest equivalent, net of related expenses deducted in computing

federal taxable income, on public obligations and purchase obligations, but only to

the extent that such net amount relates either to income included in federal taxable

income for the taxable year or to income of the S portion of an electing small business

trust for the taxable year; (7) Add any loss or deduct any gain resulting from sale, exchange, or other disposition

of public obligations to the extent that such loss has been deducted or such gain

has been included in computing either federal taxable income or income of the S portion

of an electing small business trust for the taxable year; (8) Except in the case of the final return of an estate, add any amount deducted by the

taxpayer on both its Ohio estate tax return pursuant to section 5731.14 of the Revised Code , and on its federal income tax return in determining federal taxable income; (9)(a) Deduct any amount included in federal taxable income solely because the amount represents

a reimbursement or refund of expenses that in a previous year the decedent had deducted

as an itemized deduction pursuant to section 63 of the Internal Revenue Code and applicable treasury regulations.  The deduction otherwise allowed under division (S)(9)(a) of this section shall be

reduced to the extent the reimbursement is attributable to an amount the taxpayer

or decedent deducted under this section in any taxable year. (b) Add any amount not otherwise included in Ohio taxable income for any taxable year

to the extent that the amount is attributable to the recovery during the taxable year

of any amount deducted or excluded in computing federal or Ohio taxable income in

any taxable year, but only to the extent such amount has not been distributed to beneficiaries

for the taxable year. (10) Deduct any portion of the deduction described in section 1341(a)(2) of the Internal Revenue Code , for repaying previously reported income received under a claim of right, that meets

both of the following requirements: (a) It is allowable for repayment of an item that was included in the taxpayer's taxable

income or the decedent's adjusted gross income for a prior taxable year and did not

qualify for a credit under division (A) or (B) of section 5747.05 of the Revised Code for that year. (b) It does not otherwise reduce the taxpayer's taxable income or the decedent's adjusted

gross income for the current or any other taxable year. (11) Add any amount claimed as a credit under section 5747.059 of the Revised Code to the extent that the amount satisfies either of the following: (a) The amount was deducted or excluded from the computation of the taxpayer's federal

taxable income as required to be reported for the taxpayer's taxable year under the

Internal Revenue Code; (b) The amount resulted in a reduction in the taxpayer's federal taxable income as required

to be reported for any of the taxpayer's taxable years under the Internal Revenue

Code. (12) Deduct any amount, net of related expenses deducted in computing federal taxable

income, that a trust is required to report as farm income on its federal income tax

return, but only if the assets of the trust include at least ten acres of land satisfying

the definition of “land devoted exclusively to agricultural use” under section 5713.30 of the Revised Code , regardless of whether the land is valued for tax purposes as such land under sections 5713.30 to 5713.38 of the Revised Code .  If the trust is a pass-through entity investor, section 5747.231 of the Revised Code applies in ascertaining if the trust is eligible to claim the deduction provided

by division (S)(12) of this section in connection with the pass-through entity's farm

income. Except for farm income attributable to the S portion of an electing small business

trust, the deduction provided by division (S)(12) of this section is allowed only

to the extent that the trust has not distributed such farm income. (13) Add the net amount of income described in section 641(c) of the Internal Revenue Code 5 to the extent that amount is not included in federal taxable income. (14) Add or deduct the amount the taxpayer would be required to add or deduct under division

(A)(17) or (18) of this section if the taxpayer's Ohio taxable income was computed

in the same manner as an individual's Ohio adjusted gross income is computed under

this section. (15) Add, to the extent not otherwise included in computing taxable income or Ohio taxable

income for any taxable year, the taxpayer's proportionate share of the amount of the

tax levied under section 5747.38 of the Revised Code and paid by an electing pass-through entity for the taxable year. (16) Add any income taxes deducted in computing federal taxable income or Ohio taxable

income to the extent the income taxes were derived from income subject to a tax levied

in another state or the District of Columbia when such tax was enacted for purposes

of complying with internal revenue service notice 2020-75. (T) “School district income” and “school district income tax” have the same meanings

as in section 5748.01 of the Revised Code . (U) As used in divisions (A)(7), (A)(8), (S)(6), and (S)(7) of this section, “public

obligations,” “purchase obligations,” and “interest or interest equivalent” have the

same meanings as in section 5709.76 of the Revised Code . (V) “ Limited liability company ” means any limited liability company formed under former Chapter 1705. of the Revised

Code as that chapter existed prior to February 11, 2022, Chapter 1706. of the Revised

Code, or the laws of any other state. (W) “ Pass-through entity investor ” means any person who, during any portion of a taxable year of a pass-through entity,

is a partner, member, shareholder, or equity investor in that pass-through entity. (X) “Banking day” has the same meaning as in section 1304.01 of the Revised Code . (Y) “ Month ” means a calendar month. (Z) “ Quarter ” means the first three months, the second three months, the third three months, or

the last three months of the taxpayer's taxable year. (AA)(1) “ Modified business income ” means the business income included in a trust's Ohio taxable income after such taxable

income is first reduced by the qualifying trust amount, if any. (2) “ Qualifying trust amount ” of a trust means capital gains and losses from the sale, exchange, or other disposition

of equity or ownership interests in, or debt obligations of, a qualifying investee

to the extent included in the trust's Ohio taxable income, but only if the following

requirements are satisfied: (a) The book value of the qualifying investee's physical assets in this state and everywhere,

as of the last day of the qualifying investee's fiscal or calendar year ending immediately

prior to the date on which the trust recognizes the gain or loss, is available to

the trust. (b) The requirements of section 5747.011 of the Revised Code are satisfied for the trust's taxable year in which the trust recognizes the gain

or loss. Any gain or loss that is not a qualifying trust amount is modified business income,

qualifying investment income, or modified nonbusiness income, as the case may be. (3) “ Modified nonbusiness income ” means a trust's Ohio taxable income other than modified business income, other than

the qualifying trust amount, and other than qualifying investment income, as defined

in section 5747.012 of the Revised Code , to the extent such qualifying investment income is not otherwise part of modified

business income. (4) “ Modified Ohio taxable income ” applies only to trusts, and means the sum of the amounts described in divisions

(AA)(4)(a) to (c) of this section: (a) The fraction, calculated under section 5747.013, and applying section 5747.231 of the Revised Code , multiplied by the sum of the following amounts: (i) The trust's modified business income; (ii) The trust's qualifying investment income, as defined in section 5747.012 of the Revised Code , but only to the extent the qualifying investment income does not otherwise constitute

modified business income and does not otherwise constitute a qualifying trust amount. (b) The qualifying trust amount multiplied by a fraction, the numerator of which is the

sum of the book value of the qualifying investee's physical assets in this state on

the last day of the qualifying investee's fiscal or calendar year ending immediately

prior to the day on which the trust recognizes the qualifying trust amount, and the

denominator of which is the sum of the book value of the qualifying investee's total

physical assets everywhere on the last day of the qualifying investee's fiscal or

calendar year ending immediately prior to the day on which the trust recognizes the

qualifying trust amount.  If, for a taxable year, the trust recognizes a qualifying trust amount with respect

to more than one qualifying investee, the amount described in division (AA)(4)(b)

of this section shall equal the sum of the products so computed for each such qualifying

investee. (c)(i) With respect to a trust or portion of a trust that is a resident as ascertained in

accordance with division (I)(3)(d) of this section, its modified nonbusiness income. (ii) With respect to a trust or portion of a trust that is not a resident as ascertained

in accordance with division (I)(3)(d) of this section, the amount of its modified

nonbusiness income satisfying the descriptions in divisions (B)(2) to (5) of section

5747.20 of the Revised Code, except as otherwise provided in division (AA)(4)(c)(ii)

of this section.  With respect to a trust or portion of a trust that is not a resident as ascertained

in accordance with division (I)(3)(d) of this section, the trust's portion of modified

nonbusiness income recognized from the sale, exchange, or other disposition of a debt

interest in or equity interest in a section 5747.212 entity, as defined in section 5747.212 of the Revised Code , without regard to division (A) of that section, shall not be allocated to this state

in accordance with section 5747.20 of the Revised Code but shall be apportioned to this state in accordance with division (B) of section 5747.212 of the Revised Code without regard to division (A) of that section. If the allocation and apportionment of a trust's income under divisions (AA)(4)(a)

and (c) of this section do not fairly represent the modified Ohio taxable income of

the trust in this state, the alternative methods described in division (C) of section 5747.21 of the Revised Code may be applied in the manner and to the same extent provided in that section. (5)(a) Except as set forth in division (AA)(5)(b) of this section, “ qualifying investee ” means a person in which a trust has an equity or ownership interest, or a person

or unit of government the debt obligations of either of which are owned by a trust.  For the purposes of division (AA)(2)(a) of this section and for the purpose of computing

the fraction described in division (AA)(4)(b) of this section, all of the following

apply: (i) If the qualifying investee is a member of a qualifying controlled group on the last

day of the qualifying investee's fiscal or calendar year ending immediately prior

to the date on which the trust recognizes the gain or loss, then “ qualifying investee ” includes all persons in the qualifying controlled group on such last day. (ii) If the qualifying investee, or if the qualifying investee and any members of the

qualifying controlled group of which the qualifying investee is a member on the last

day of the qualifying investee's fiscal or calendar year ending immediately prior

to the date on which the trust recognizes the gain or loss, separately or cumulatively

own, directly or indirectly, on the last day of the qualifying investee's fiscal or

calendar year ending immediately prior to the date on which the trust recognizes the

qualifying trust amount, more than fifty per cent of the equity of a pass-through

entity, then the qualifying investee and the other members are deemed to own the proportionate

share of the pass-through entity's physical assets which the pass-through entity directly

or indirectly owns on the last day of the pass-through entity's calendar or fiscal

year ending within or with the last day of the qualifying investee's fiscal or calendar

year ending immediately prior to the date on which the trust recognizes the qualifying

trust amount. (iii) For the purposes of division (AA)(5)(a)(iii) of this section, “ upper level pass-through entity ” means a pass-through entity directly or indirectly owning any equity of another

pass-through entity, and “ lower level pass-through entity ” means that other pass-through entity. An upper level pass-through entity, whether or not it is also a qualifying investee,

is deemed to own, on the last day of the upper level pass-through entity's calendar

or fiscal year, the proportionate share of the lower level pass-through entity's physical

assets that the lower level pass-through entity directly or indirectly owns on the

last day of the lower level pass-through entity's calendar or fiscal year ending within

or with the last day of the upper level pass-through entity's fiscal or calendar year.  If the upper level pass-through entity directly and indirectly owns less than fifty

per cent of the equity of the lower level pass-through entity on each day of the upper

level pass-through entity's calendar or fiscal year in which or with which ends the

calendar or fiscal year of the lower level pass-through entity and if, based upon

clear and convincing evidence, complete information about the location and cost of

the physical assets of the lower pass-through entity is not available to the upper

level pass-through entity, then solely for purposes of ascertaining if a gain or loss

constitutes a qualifying trust amount, the upper level pass-through entity shall be

deemed as owning no equity of the lower level pass-through entity for each day during

the upper level pass-through entity's calendar or fiscal year in which or with which

ends the lower level pass-through entity's calendar or fiscal year.  Nothing in division (AA)(5)(a)(iii) of this section shall be construed to provide

for any deduction or exclusion in computing any trust's Ohio taxable income. (b) With respect to a trust that is not a resident for the taxable year and with respect

to a part of a trust that is not a resident for the taxable year, “qualifying investee”

for that taxable year does not include a C corporation if both of the following apply: (i) During the taxable year the trust or part of the trust recognizes a gain or loss

from the sale, exchange, or other disposition of equity or ownership interests in,

or debt obligations of, the C corporation. (ii) Such gain or loss constitutes nonbusiness income. (6) “ Available ” means information is such that a person is able to learn of the information by the

due date plus extensions, if any, for filing the return for the taxable year in which

the trust recognizes the gain or loss. (BB) “Qualifying controlled group” has the same meaning as in section 5733.04 of the Revised Code . (CC) “Related member” has the same meaning as in section 5733.042 of the Revised Code . (DD)(1) For the purposes of division (DD) of this section: (a) “ Qualifying person ” means any person other than a qualifying corporation. (b) “ Qualifying corporation ” means any person classified for federal income tax purposes as an association taxable

as a corporation, except either of the following: (i) A corporation that has made an election under subchapter S, chapter one, subtitle

A, of the Internal Revenue Code for its taxable year ending within, or on the last

day of, the investor's taxable year; (ii) A subsidiary that is wholly owned by any corporation that has made an election under

subchapter S, chapter one, subtitle A of the Internal Revenue Code for its taxable

year ending within, or on the last day of, the investor's taxable year. (2) For the purposes of this chapter, unless expressly stated otherwise, no qualifying

person indirectly owns any asset directly or indirectly owned by any qualifying corporation. (EE) For purposes of this chapter and Chapter 5751. of the Revised Code: (1) “ Trust ” does not include a qualified pre-income tax trust. (2) A “ qualified pre-income tax trust ” is any pre-income tax trust that makes a qualifying pre-income tax trust election

as described in division (EE)(3) of this section. (3) A “ qualifying pre-income tax trust election ” is an election by a pre-income tax trust to subject to the tax imposed by section 5751.02 of the Revised Code the pre-income tax trust and all pass-through entities of which the trust owns or

controls, directly, indirectly, or constructively through related interests, five

per cent or more of the ownership or equity interests.  The trustee shall notify the tax commissioner in writing of the election on or before

April 15, 2006.  The election, if timely made, shall be effective on and after January 1, 2006, and

shall apply for all tax periods and tax years until revoked by the trustee of the

trust. (4) A “ pre-income tax trust ” is a trust that satisfies all of the following requirements: (a) The document or instrument creating the trust was executed by the grantor before

January 1, 1972; (b) The trust became irrevocable upon the creation of the trust;  and (c) The grantor was domiciled in this state at the time the trust was created. (FF) “ Uniformed services ” means all of the following: (1) “Armed forces of the United States” as defined in section 5907.01 of the Revised Code ; (2) The commissioned corps of the national oceanic and atmospheric administration; (3) The commissioned corps of the public health service. (GG) “ Taxable business income ” means the amount by which an individual's business income that is included in federal

adjusted gross income exceeds the amount of business income the individual is authorized

to deduct under division (A)(28) of this section for the taxable year. (HH) “ Employer ” does not include a franchisor with respect to the franchisor's relationship with

a franchisee or an employee of a franchisee, unless the franchisor agrees to assume

that role in writing or a court of competent jurisdiction determines that the franchisor

exercises a type or degree of control over the franchisee or the franchisee's employees

that is not customarily exercised by a franchisor for the purpose of protecting the

franchisor's trademark, brand, or both.  For purposes of this division, “franchisor” and “franchisee” have the same meanings

as in 16 C.F.R. 436.1 . (II) “ Modified adjusted gross income ” means Ohio adjusted gross income plus any amount deducted under divisions (A)(28)

and (34) of this section for the taxable year. (JJ) “ Qualifying Ohio educator ” means an individual who, for a taxable year, qualifies as an eligible educator,

as that term is defined in section 62 of the Internal Revenue Code , and who holds a certificate, license, or permit described in Chapter 3319. or section 3301.071 of the Revised Code . (KK) “Professional employer organization,” “professional employer organization agreement,”

and “professional employer organization reporting entity” have the same meanings as

in section 4125.01 of the Revised Code . (LL) “Alternate employer organization” and “alternate employer organization agreement”

have the same meanings as in section 4133.01 of the Revised Code . (MM) “Casino gaming” has the same meaning as in section 3772.01 of the Revised Code , “lottery sports gaming” has the same meaning as in section 3770.23 of the Revised Code , “sports gaming” has the same meaning as in section 3775.01 of the Revised Code , and “video lottery terminal” has the same meaning as in section 3770.21 of the Revised Code . 1

 42 U.S.C.A. § 401 et seq. 2

 26 U.S.C.A. §§ 38, 51, 52. 3

 26 U.S.C.A. § 7702(B)(c). 4

 26 U.S.C.A. §§ 671 to 678. 5

 26 U.S.C.A. § 641(c). 6

 26 U.S.C.A. § 152. 7

 26 U.S.C.A. § 152(d)(1)(B) and (C).