Ohio Administrative Code › Title 122:16 - Retention Tax Credit Program › Chapter 122:16-1 - Business Tax Credit › Section 122:16-1-01 - Definitions

Current through all regulations passed and filed through July 1, 2024
As used in rules 122:16-1-02 to  122:16-1-07 of  the Administrative Code:
(A)
								"Affiliated entities" means any person that (directly
			 or indirectly) owns or controls, is owned or controlled by, or is under common
			 ownership or control with, the taxpayer. For purposes of this definition, the
			 term "own" means to own an equity interest (or the equivalent thereof) of fifty
			 per cent or more.
(B) "Amendment" means
			 any change to the terms and/or conditions of a tax credit agreement following
			 approval from the authority.
(C) "Authority" means
			 the tax credit authority created pursuant to division (M) of section
			  122.17  of the Revised Code and
			 subject to rules 122:7-1-02 and  122:7-1-03 of  the Administrative Code.
(D) "Capital investment project" means a plan of
			 investment as defined in division (A) of section
			  122.171  of the Revised Code and
			 includes but is not limited to the acquisition, construction, renovation or
			 repair of buildings, machinery, or equipment that has not been used in business
			 in this state by the taxpayer that owns it, or by a taxpayer that is a related
			 member or predecessor of such a taxpayer, other than as inventory, prior to
			 being used in business at the project site.
(E) "Director" means
			 the director of the development
			 services agency of the state of Ohio.
(F)
								"Effective date"
			 means January first of the first year of the term of the tax credit as approved
			 by the authority.
(G)
								"Excess income tax revenue" means the total amount to
			 be withheld under section
			  5747.06  of the Revised Code by
			 the taxpayer throughout the term of the agreement from the compensation of each
			 new employee to be created at the project location.
(H)
			 "Executive director" means the executive director of the tax credit
			 authority.
(I)
								"Income tax revenue" means the total amount withheld
			 under section  5747.06  of the Revised Code by
			 the taxpayer during the tax year from the compensation of each employee at the
			 project location.
(J) "Maintain
			 operations" means the continuation of operations of the taxpayer as described
			 in the tax credit agreement.
(K)
								"Metric evaluation date" means the date by which the
			 taxpayer must meet certain commitments included in the tax credit
			 agreement.
(L) "Payroll" means the aggregate taxable income paid
			 to full-time equivalent employees at the project site. Payroll does not include
			 employer contributions to fringe benefits that are provided to
			 employees.
(M)
								"Person" means, but is not limited to, individuals,
			 combinations of individuals of any form, receivers, assignees, trustees in
			 bankruptcy, firms, companies, joint-stock companies, business trusts, estates,
			 partnerships, limited liability partnerships, limited liability companies,
			 associations, joint ventures, clubs, societies, for-profit corporations, S
			 corporations, qualified subchapter S subsidiaries, qualified subchapter S
			 trusts, trusts, entities that are disregarded for federal tax purposes, and any
			 other entities.
(N) "Post-term
			 reporting period" means the time period a taxpayer must report to the authority
			 and director to verify that the maintenance of operations at the project site.
			 The post-term reporting period begins at the conclusion of the tax credit term
			 and continues for a minimum of three years as set forth in the tax credit
			 agreement corresponding to the taxpayer's obligation to maintain operations at
			 the project site.
(O) "Relocated employees" means
			  the full-time equivalent employees or employment positions
			 employed by the taxpayer or an affiliated entity at a location elsewhere in the
			 State other than the project site that are relocated to the project site, and
			 whose positions are not replaced within the same calendar year, or, if the
			 employees or employment positions are relocated in the final quarter of the
			 calendar year, within that calendar year or the following calendar year.
(P) "Retail" means
			 operations that include point-of-final-purchase transaction at a facility open
			 to the consuming public, wherein one party is obligated to pay the price and
			 the other party is obligated to transfer title to of possession of the item
			 sold,
(Q) "Significant retention" means the project proposes
			 to and actually retains at least forty million dollars of annual payroll at the
			 project site for the term of the tax credit.
(R) "Substantial
			 number of employment positions" means employees whose collective annual gross
			 payroll is at least two hundred thousand dollars. In reaching the "substantial
			 number of employment positions" threshold, the taxpayer must aggregate the
			 payroll from all relocated employees under paragraph (B) of rule 122:16-1-07 of  the Administrative Code over the entire term of the tax credit agreement.
(S)
								"Subtantially
			 maintain" with respect to division (J)(1)(b) of section
			  122.171  of the Revised Code
			 means at least fifty per cent of the commitments identified in the tax credit
			 agreement.
(T)
								"Tax year" means the calendar year in and for which the
			 tax imposed by section
			  5725.18,
			  5726.02,
			  5729.03,
			  5736.02  or
			  5747.02  or levied under Chapter
			 5751. of the Revised Code is required to be paid.
(U)
			 "Taxable year" means the annual tax reporting period of the taxpayer prescribed
			 by division (M) of section 
									5751.01
								 of the Revised
			 Code with respect to persons subject to the Ohio commericial activities tax, and prescribed by division (M) of section
			  5747.01  of the Revised Code with
			 respect to persons subject to individual income tax. With respect to insurance
			 companies, taxable year means the calendar year subject to the franchise tax
			 return required pursuant to section
			  5725.18  of the Revised Code, or
			 subject to the tax required pursuant to section
			  5729.03  of the Revised
			 Code.
(V) "Taxpayer" means a business
			 entity that has entered into an agreement for  tax
			 credit pursuant to division (E) of
								section 
									122.171
								
			 of the Revised Code .
(W) "Transferred payroll" means the payroll attributed
			 to all relocated employees at the project site, if any.