Ethanol Investment Tax Credit - Corporate

Summary

In April 2002, Ohio Governor Bob Taft signed into law SB 144, establishing the Ethanol Incentive Board and creating a tax credit against corporation franchise or personal income tax liability for investments in ethanol plants whose business plans have been approved by the Board. The law also designates ethanol plants as air quality facilities eligible for Ohio Air Quality Development Authority financing. In order to be eligible, facilities must be majority-owned by Ohio farmers prior to the first day the facility commences production. For corporate taxpayers who invest in a certified ethanol plant, this nonrefundable tax credit is available beginning in tax year 2003 and ending in tax year 2013. The amount of the credit equals 50% of the amount the taxpayer invests in the plant, not to exceed $5,000 per taxpayer per certified ethanol plant, regardless of the number of years in which the taxpayer makes investments. The corporate credit should be claimed in the tax year immediately following the calendar year in which the investment was made. Any credit amount in excess of the tax due may be carried forward for three tax years, but the amount of the excess credit allowed in any such year must be deducted from the balance carried forward to the next year.