The director of the Ohio department of job and family services (ODJFS) will issue a training tax credit certificate to an eligible company only after ODJFS has determined that the eligible company has timely complied with all the following statutory requirements.
(A) The eligible company has conducted an eligible training program for the eligible employees during the calendar year(s) for which the eligible company is claiming the training tax credit. ODJFS will consider only eligible training costs that the eligible company incurred during the calendar year(s) for which the eligible company is applying for the certificate.
(B) The eligible company has timely filed a complete training tax credit application and final summary of eligible training costs with ODJFS, and the eligible company has used the appropriate application procedures that ODJFS has designated.
(C) The training tax credit does not exceed the lowest of the following three amounts:
(1) One hundred thousand dollars;
(2) One thousand dollars average for each eligible employee over the three year period; or
(3) Fifty per cent of the average of the total eligible training costs for the three years prior to the tax year for which the eligible company is applying for the credit.
(D) The training tax credit was a major factor in the taxpayer's decision to proceed with the eligible training program.
(E) The training tax credit does not conflict with the Ohio training tax credit (OTTC) program's annual requirements: The aggregate amount of credits authorized under sections 5733.42, 5725.31, 5729.07, and 5747.39 of the Revised Code shall not exceed twenty million dollars per calendar year. ODJFS shall not authorize more than ten million dollars in credits per calendar year for persons engaged primarily in manufacturing. ODJFS shall set aside no less than five million dollars in credits per calendar year for persons engaged primarily in activities other than manufacturing and that have fewer than five hundred employees.
(F) Because of the need for certainty in all matters of allocation of the training tax credit, all decisions and determinations of ODJFS shall be final. ODJFS may reduce or deny a credit if the training conducted fails either to meet the requirements set forth in sections 5733.42, 5725.31, 5729.07, and 5747.39 of the Revised Code or to comply with the required conditions set forth in this rule. In the event that ODJFS denies to an applicant the amount of the credit that the applicant requested, ODJFS will notify the eligible company in writing by certified mail. The eligible company has sixty days after the receipt to file a request for a hearing. ODJFS has thirty days after the hearing to send a notice of re-determination. The re-determination may be appealed to the board of tax appeals.
(G) The taxpayer may carry forward any credit amount in excess of its tax due after allowing for any other credits that precede the credit under section 5733.42 of the Revised Code in the order required under section 5733.98 of the Revised Code, or, if an insurance company, under sections 5725.98 and 5729.98 of the Revised Code. The excess credit may be carried forward for three years following the tax year for which it is first claimed under section 5733.42 of the Revised Code.
(H) At the sole discretion of the ODJFS director, ODJFS may reissue a tax credit certificate for good cause. "Reissued certificate" is defined in paragraph (M) of rule 5101:10-1-01 of the Administrative Code.
119.032 review dates:
Promulgated Under: 119.03
Statutory Authority: 5733.42(F)
Rule Amplifies: 5725.31, 5729.07, 5733.42, 5747.39
Prior Effective Dates: 12/30/99 (Emer), 10/6/00, 4/4/05, 1/1/07