Taxpayers with qualifying Ohio research spending would seek a state certificate to claim a tax credit and could transfer unused credit amounts to others.
Taxpayers would apply for credits based on qualifying Ohio research spending above their three-year average. Credits would reduce taxes owed, without paying unused amounts as cash refunds.
People holding certified research credits could transfer unused amounts to others by notifying the tax commissioner. A transfer would not extend the time allowed to use the credit.
Taxpayers would apply to Ohio's tax commissioner for a research tax credit certificate. The calculation would cover qualifying research expenses in Ohio above the taxpayer's average for the three preceding years. Applicants would use forms from the tax commissioner and include their certificate with their tax return or report. The credit could reduce taxes owed but would not provide a cash refund for unused amounts.
Credit holders could transfer all or part of their certified research credit to another person. Transfers would cover all or part of the remaining credit listed on a certificate. The person transferring a credit would notify the tax commissioner in writing and identify the recipient and amount. Recipients could transfer the credit again under the same reporting rules. Recipients could claim transferred credits only for the same tax years or periods allowed for the original holder.
No hearings or votes scheduled.