Tax Rules: Final: 5703-29
5703-29-11 Commercial activity tax credit for unused
franchise tax net operating losses.
(A) A qualifying taxpayer intending to claim the commercial
activity tax credit for unused franchise tax net operating
losses must file a report with the tax commissioner no later
than June 30, 2006. The report shall be filed on a form
prescribed by the commissioner for such purpose and shall
include, but is not limited to, the following information:
(1) If the qualifying taxpayer was not a member of a combined
franchise tax report for tax year 2005, such report shall
include the following information:
(a) The taxpayer’s name, address, federal employer
identification number, Ohio charter or license number, Ohio
commercial activity tax account number;
(b) The taxpayer’s Ohio net operating loss carryforward that
would have been available for use on the taxpayer’s 2006
franchise tax report had the taxpayer not elected to claim
this credit;
(c) A schedule detailing the computation of the Ohio net
operating loss carryforward amount reflected in paragraph (b)
above that includes the information set out in the
instructions for the report; and
(d) The amortizable amount computed in accordance with
section 5751.53 of the Revised Code.
(2) If the qualifying taxpayers filing the report were
members of a combined franchise tax report for tax year 2005,
then for each member of the 2005 combined franchise return
for which an amortizable amount is computed, such report
shall include the following information:
(a) The taxpayer’s name;
(b) Ohio commercial activity tax account number;
(c) Ohio net operating loss carryforward that would have been
available for use on the taxpayer’s 2006 Ohio franchise
return had the taxpayers not elected to claim this credit;
(d) A schedule detailing the computation of the Ohio net
operating loss carryforward amount reflected in paragraph
(A)(1)(c) that includes the information set out in the
instructions for the report;
(e) The qualifying amount; and
(f) The amortizable amount computed in accordance with
section 5751.53 of the Revised Code.
(3) Upon written request or upon audit, the commissioner may
require a taxpayer to provide additional documentation to
support the credit provided for under section 5751.53 of the
Revised Code, including substantiation of any information
supplied with the report required under paragraph (A) of this
rule, that the deferred tax asset amounts were booked on the
taxpayer’s financial statements.
(B) Subject to audit by the commissioner, a taxpayer that
files such report may claim ten per cent of the amortizable
amount as a nonrefundable credit against the commercial
activity tax in each of the calendar years 2010 through 2019.
For each year in which the taxpayer claims the nonrefundable
credit, the taxpayer may apply the credit against only
one-half of its commercial activity tax liability remaining
after the liability is first reduced by the nonrefundable
credits that precede this credit in the order set out in
section 5751.98 of the Revised Code. Any portion of the ten
per cent amortizable amount not used in the year that it
otherwise could have been claimed may be carried forward and
claimed in the following year or years through 2029. Any
portion of the nonrefundable credit not claimed by 2029 may
be claimed as a refundable credit against the commercial
activity tax in calendar year 2030, pursuant to divisions (B)
and (C) of section 5751.53 of the Revised Code.
Effective: 6-15-06
Promulgated under: 5703.14
Authorized by: 5703.05
Amplifies: 5751.53