(A) A taxpayer, applicant, or eligible company may not file more than one training tax credit application for a calendar year. If the taxpayer is a subsidiary of another, but the companies share the same tax identification number, then the group of companies may share the tax credit if the application is in the name of all the companies.
(B) A nonrefundable fee of one hundred dollars shall accompany each training tax credit application. The fee shall be made payable to the "Treasurer of the State of Ohio-Ohio Training Tax Credit Program." The director of the Ohio department of job and family services (ODJFS) may, in his or her sole discretion, return or waive the application fee.
(C) An applicant shall file an application for a training tax credit through an ODJFS approved internet on-line application system. The ODJFS director at his or her sole discretion may allow other methods of submission after providing adequate notice. Applications submitted not in accordance with procedures established by ODJFS will not be considered for processing. Posting on the ODJFS website will constitute adequate notice for this purpose.
(D) The application process will begin on a date determined by the ODJFS director. At a minimum, applicants shall have ten days to submit an application. The ten day application period may be extended at the sole discretion of the director. Applicants must agree to disclose information required for the award of a training tax credit. Information required to submit a complete application shall include, but not be limited to, the following:
(1) Applicant name, mailing address, phone and fax number, and email address;
(2) Information identifying the type of business in which the applicant is primarily involved;
(3) The size of the company based on the number of full-time and part-time employees;
(4) The number of eligible employees;
(5) The amount of eligible training costs incurred by the applicant for the previous two calendar years of training and the projected training and related costs for the current year; and
(6) A description of each training activity included as part of the eligible training program.
(E) No weight or priority will be given to the order in which the applications are received. Ohio training tax credits shall be allocated by random selection of applications that are submitted within ten days of the beginning of the application period and in accordance with the funding limitations set forth by statute. If any tax credits remain available after the ten day application period, the ODJFS director may allocate the remaining tax credits based on a random selection of applications, including those applications received after the initial ten day application period, and in accordance with the funding limitations set forth by statute.
(F) If the ODJFS director determines that an application meets the requirements for the award of the training tax credit, the applicant will be notified in writing of the preliminary estimated tax credit amount. If after issuing a preliminary tax credit amount, the director discovers any deficiencies or inaccurate information contained in the related application, the director shall send notice to the applicant by certified mail, return receipt requested, requesting additional information or corrections. The notice shall include the name and number of a contact person at ODJFS. The director shall revoke the preliminary estimated tax credit amount if the applicant fails to cure the defects in the application to the satisfaction of the director within thirty days of the mailing of the notice. If the director determines that the applicant knowingly submitted false or misleading information, the preliminary estimated tax credit shall be revoked, and additional penalties may be imposed.
(G) If the ODJFS director determines that additional information or corrections are required in order to approve an application, the director shall send notice to the applicant by certified mail, return receipt requested. The notice shall include the additional information or corrections required to approve the application and the name and number of a contact person at ODJFS. The applicant will have thirty days from the date of the mailing of the notice to cure the deficiencies. If the applicant fails to respond or correct the deficiencies to the satisfaction of the director, the application will be denied.
(H) An application shall be denied if the ODJFS director determines the application does not meet the requirements for the award of a training tax credit.
(I) If the ODJFS director denies an application or revokes a preliminary estimated tax credit, the director shall send notice by certified mail, return receipt requested, to the applicant setting forth the reason(s) for the denial or revocation. The applicant shall have two weeks from the mailing of the notice to deliver to the director a written request for additional review and a new determination with supporting documentation. The director shall issue a decision to the applicant within thirty days of receiving the request. The director's approval, modification, or disapproval shall be final and binding and shall not be subject to further review. Failure to timely deliver a request for review and new determination to the director will result in the denial or revocation becoming final and binding and not subject to further review.
(J) Upon completion of the eligible training programs, the taxpayer shall submit to the ODJFS director a summary of eligible training costs. This shall occur no later than January thirty-first of the calendar year immediately following the calendar year in which the eligible training programs were conducted and the preliminary estimated tax credit amount was issued. The deadline for submitting the summary of eligible costs may be extended or changed at the director's sole discretion, upon good cause shown.
(K) If the ODJFS director determines that a training program, as actually conducted, fails to meet the requirements of the law or to comply with any conditions set forth in the authorization, the director may reduce or deny the amount of the tax credit previously granted. If the director reduces a tax credit, the director shall send notice of the reduction and the reason for the reduction to the applicant by certified mail, return receipt requested, and shall certify the reduction to the tax commissioner or, in the case of the reduction of a credit claimed by an insurance company, the superintendent of insurance. The tax commissioner or superintendent of insurance shall reduce the credit that may be claimed by the applicant accordingly. Within sixty days after receiving a notice of denial or notice of reduction of the tax credit, an applicant may request, in writing, a hearing before the director to review the denial or reduction. Within sixty days of receiving a request that is filed within the prescribed time, the director shall hold such a hearing at a location to be determined by the director. Within thirty days after the hearing is adjourned, the director shall issue a redetermination affirming, reversing, or modifying the denial or reduction of the tax credit and send notice of the redetermination by certified mail, return receipt requested, and shall issue a notice of the redetermination to the tax commissioner or superintendent of insurance. If an applicant or taxpayer is aggrieved by the director's redetermination, the applicant or taxpayer may appeal the redetermination to the board of tax appeals in the manner prescribed by section 5717.02 of the Revised Code.
(L) If the original applicant is awarded a tax credit and the business is subsequently acquired by or merged with another entity, the ODJFS director may, after consultation with the Ohio department of taxation, or the Ohio department of insurance in the case of an acquisition or merger involving an insurance company, re-issue the tax credit in the name of the new entity or approve the transfer of the tax credit.
(M) The applicant must submit all reporting documentation in the format required by the ODJFS director following the completion of all eligible training programs that were approved in the original application. The required documentation must be submitted by the deadlines specified by the director.
(N) If, within seven hundred thirty days after the tax credit certificate is issued, the taxpayer permanently relocates to another state or country or permanently transfers to another state or country one or more employees with respect to whom the ODJFS director issued the tax credit certificate, the taxpayer shall repay the qualifying portion of the total amount of the credit. The "qualifying portion" is that portion of the total amount of the tax credit defined by the following example formula:
The total number of eligible employees identified on the taxpayer's 2006 Ohio training tax credit (OTTC) application, as reported by the taxpayer, the taxpayer permanently relocated or transferred to another state or country within seven hundred thirty days after the tax credit certificate is issued, divided by the total number of eligible employees trained, identified on the applicant's 2006 OTTC application, times the tax credit certificate amount issued to the employer, times the multiplier.
The taxpayer shall retain its records for the specified period required by rule 5101:10-1-01 of the Administrative Code.
To verify the employment status of employees (named on the taxpayer participant lists) for whom the eligible training costs qualified for the tax credit under the OTTC program, on or after June 30, 2009, ODJFS will contact, via certified mail, all program year 2006 OTTC applicants that received tax credit certificates.
(O) With respect to those applicants who have not timely and fully repaid the qualifying amount, the ODJFS director will verify and report that amount to the department of taxation or in the case of a premium tax payer, the department of insurance for recovery.
(P) With respect to those applicants who have not timely and fully repaid the qualifying amount, the ODJFS director will notify the applicant of the amount that the ODJFS director reported to the department of taxation or in the case of a premium tax payer, the department of insurance for recovery.
(Q) If, within thirty business days of the postmark date of the certified letter, the applicant fails to pay the qualifying portion or return the certified letter, then the ODJFS director shall revoke the applicant's entire tax credit certificate.
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, 8/13/09