The bill amends sections 107.036 and 5747.98 of the Revised Code and introduces new sections 122.853 and 5747.68, creating a temporary refundable income tax credit for investments in sound recording production companies. It defines key terms such as "eligible expenditures," "sound recording," and "sound recording production company," and establishes a certification process for tax credit-eligible productions overseen by the director of development. The tax credit is set at 25% of eligible expenditures exceeding $10,000, with a maximum of $75,000 per production and an aggregate cap of $1 million per fiscal year. The credits will be allocated on a first-come, first-served basis, and the director is required to report on the credit's impact every two years.

Additionally, the bill allows individuals holding a tax credit certificate under section 122.853 to claim a refundable credit against the tax imposed by section 5747.02 for the taxable year in which the certificate is issued. If the credit exceeds the tax due, the excess will be refunded. The bill also establishes a specific order for claiming credits to ensure consistency in calculating tax liabilities and includes a list of credits to be claimed sequentially, culminating in the new refundable credit for sound recording production under section 5747.68. Furthermore, it repeals the existing sections 107.036 and 5747.98, thereby streamlining the tax credit process and updating the legal framework.

Statutes affected:
As Introduced: 107.036, 5747.98