The bill proposes significant amendments to the Revised Code, focusing on tax exemptions for the sale of certain firearms and ammunition, as well as the introduction of refundable tax credits for small arms and ammunition manufacturing projects. It establishes a new "constitutional commerce credit" under section 5747.053, which allows taxpayers to claim credits based on excess payroll generated by qualifying manufacturing facilities, capped at ten million dollars per fiscal year. The bill also outlines criteria for taxpayers to qualify for these credits, including job creation and operational requirements, and details the application process for entering agreements with the tax credit authority.

In addition to the new credits, the bill repeals existing sections 107.036, 5739.02, 5747.98, and 5751.98, indicating a restructuring of the tax credit framework. It clarifies the conditions under which various tax exemptions apply, particularly for sales related to agriculture, healthcare, and nonprofit organizations. The bill aims to streamline the tax code by providing clear guidelines on exemptions and credits, ensuring an efficient tax system while supporting economic activities in targeted sectors. Overall, the proposed changes are designed to enhance tax relief for specific industries and individual taxpayers while maintaining compliance and monitoring mechanisms.

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