The bill seeks to amend the Revised Code to exempt the sale of certain firearms and ammunition from sales and use tax while establishing refundable tax credits for small arms and ammunition manufacturing projects. A key feature is the introduction of the "constitutional commerce credit" under section 122.1712, which allows the tax credit authority to issue credits based on excess payroll for qualifying projects. The bill sets forth eligibility criteria, including a minimum capital investment of two million dollars and job creation commitments, with the tax credit authority authorized to grant credits up to ten million dollars per fiscal year. It also outlines compliance requirements and potential penalties for noncompliance, aiming to stimulate economic growth in the firearms manufacturing sector.

Additionally, the bill introduces new provisions regarding sales tax exemptions for tangible personal property and services, specifically defining "qualifying firearm" and "ammunition." It establishes a refundable tax credit for taxpayers who have received a tax credit certificate, allowing them to claim the credit for the specified tax period and receive refunds for any excess amount. The bill also repeals existing sections of the Revised Code, indicating a restructuring of the tax credit framework, and clarifies the order in which various credits should be claimed. Overall, the legislation aims to streamline tax exemptions and credits, enhancing support for businesses involved in the firearms industry while ensuring compliance with tax obligations.

Statutes affected:
As Introduced: 107.036, 5739.02, 5747.98, 5751.98