122:16-1-01 Definitions.

As used in rules 122:16-1-02 to 122:16-1-07 of the Administrative Code:

(A) "Amendment" means any change to the terms and/or conditions of a tax credit agreement following approval from the authority.

(B) "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.

(C) "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.

(D) "Director" means the director of development of the state of Ohio.

(E) "Executive director" means the executive director of the tax credit authority.

(F) "Maintain operations" means the continuation of operations of the taxpayer as described in the tax credit agreement. The tax credit agreement shall describe the type of work performed, the number of full-time equivalent employees to be retained, the level of investment, and other details that the authority deems appropriate to measure maintenance of operations.

(G) "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.

(H) "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.

(I) "Relocated employees" means either of the following:

(1) The full-time equivalent employees or employment positions employed by the taxpayer in a political subdivision in this state other than the political subdivision in which the project is located that are relocated to the project site and whose positions are not replaced in the first political subdivision within the same calendar year.

(2) The full-time equivalent employees or employment positions employed by the taxpayer at a location other than the project site within the same political subdivision as the project site that are relocated to the project site, and whose positions are not replaced within the same calendar year.

(J) "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,

(K) "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.

(L) "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.

(M) "Taxable year" means the annual tax reporting period of the taxpayer prescribed by division (A) of section 5733.031 of the Revised Code with respect to persons subject to the Ohio corporate franchise 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.

(N) "Tax year" means the calendar year for which the tax imposed by section 5725.18 , 5729.03 , 5733.06 , 5747.01 or 5751.031 of the Revised Code is required to be paid.

(O) "Transferred payroll" means the payroll attributed to all relocated employees at the project site, if any.

Replaces: 122:16-1-01

Effective: 08/27/2010
R.C. 119.032 review dates: 08/17/2015
Promulgated Under: 119.03
Statutory Authority: 122.171(K)
Rule Amplifies: 122.171
Prior Effective Dates: 12/11/03