Ohio Administrative Code › Title 122:24 - InvestOhio Program › Chapter 122:24-1 - General Provisions › Section 122:24-1-01 - Definitions

Current through all regulations passed and filed through July 1, 2024
Capitalized terms used in rules 122:24-1-01 to  122:24-1-14shallhave the following meaning:
(A)
			 "Annual" sales means the gross sales of the small business enterprise using
			 generally accepted accounting principles for the twelve months preceding the
			 date of the investment of money. For entities that engage in the rental of
			 assets, sales shall also mean rental income.
(B) "Application" means the process of
			 submitting notification of a qualifying
			 investment with the development services agency
			 for the purposes of the investOhio program. An application may only be
			 completed after both the eligible investor and the small business enterprise
			 have registered with the investOhio program, in a manner prescribed by the
			 director. The application will identify a specific dollar amount, the date of
			 the investment of money, the eligible investor and the small business
			 enterprise.
(C) "Assets" means the
			 total book value of assets of the small business enterprise using generally
			 accepted accounting principles for the twelve months preceding the date of the
			 investment of money.
(D) "Director"
			 means the director of the development services agency
			 of the state of Ohio.
(E)
			 "Disqualifying Event" means a situation in which either the eligible investor
			 or the small business enterprise performs, or fails or perform, an act that
			 renders either a registered party to the transaction or qualifying transaction
			 between the registered parties partially or wholly ineligible for the tax
			 credit described in section
			  122.86 
			 of the Revised Code.
(F) "Eligible
			 Investor" has the same meaning as described in division (A)(3) of section
			  122.86 
			 of the Revised Code.
(G) "Full-time
			 Equivalent Employees" means, for purposes of division (A)(1)(b) of section
			  122.86 
			 of the Revised Code, the quotient obtained by dividing the total number of
			 hours for which employees were compensated for employment at the small business
			 enterprise by two-thousand eighty within the twelve months preceding the date
			 of the investment of money.  Ohio full-time equivalent employees are those full-time
			 equivalent employees subject to the tax imposed by Chapter 5747. of the Revised
			 Code or full-time equivalent employees that are exempt from the tax imposed by
			 Chapter 5747. of the Revised Code.
(H) "Investment of Money" means a new
			 investment of cash by an eligible investor to a small business enterprise. It
			 does not include a contribution of non-cash assets,
			 convertible or converted debt, or other impermissible investments
			 described in rule 122:24-1-05 of  the Administrative Code.
(I)
			 "InvestOhio Program" means the tax credit program established in section
			  122.86 
			 of the Revised Code. This program is also identified as the small business
			 enterprise investment tax credit administered by the development services agency.
(J) "InvestOhio Transaction ID" means the
			 alphanumeric code issued by the director for a qualifying investment that has
			 successfully applied to the investOhio program. InvestOhio transactions IDs are
			 issued sequentially in the order that applications are received.
(K) "InvestOhio User ID" means the
			 alphanumeric code issued by the director to eligible investors and small
			 business enterprises that have successfully registered with the investOhio
			 program.
(L) "Pass-through Entity"
			 has the same meaning as described in division (O) of section
			  5733.04 
			 of the Revised Code.
(M) "Managers
			 of the Enterprise" means individuals who have the responsibility for the day to
			 day operations of the business or exercise decision making authority for the
			 entity, regardless of their title, compensation, ownership and regardless of
			 whether they are salaried or hourly employees.
(N) "Qualifying Investment" has the same
			 meaning as described in division (A)(2) of section
			  122.86 
			 of the Revised Code.
(O) "Register"
			 means the process of creating a user account with the investOhio program.
			 Registration may require the establishment of an Ohio business gateway account
			 as well. Eligible investors and small business enterprises must register
			 separately in order to participate in the investOhio program, even if they are
			 the same person, and must certify the accuracy of the information provided in
			 each registration.
(P) "Related
			 Entities" means entities, determined by the director pursuant to division
			 (F)(5) of section
			  122.86 
			 of the Revised Code that: (1) have (i) significant common purposes and
			 substantial common membership or (ii) have directly or indirectly substantial
			 common direction or control; (2) in which the small business enterprise or
			 a twenty percent or more interestholder of the small business enterprise owns
			 more than twenty per cent; or (3) other determinations made by the
			 director. For the purposes of this calculation, the
			 interestholder includes immediate family members (spouses, children, parents,
			 siblings and other household members). Entities includes trusts controlled by
			 or for the benefit of the interestholder.
(Q) "Small Business Enterprise" has the same
			 meaning as described in division (A)(1) of section
			  122.86 
			 of the Revised Code.
(R) "Tax
			 Commissioner" means the commissioner of the department of taxation of the state
			 of Ohio.
(S) "Time of Investment"
			 means the date on which an eligible investor completes all of the investments
			 of money to
			 a small business enterprise that are outlined in the application submitted
			 through the investOhio program, regardless of the date on which the small
			 business enterprise issues the equity to the eligible investor.
(T) "United States" means the fifty states,
			 the District of Columbia, Puerto Rico, American Samoa, Guam, Johnston island,
			 Midway island, Wake islands, Northern Mariana islands, and US Virgin
			 islands.