Ohio Administrative Code|Rule 122:7-1-01 | Definitions.

                                                
As used in rules 122:7-1-02 to 122:7-1-09 of the
		Administrative Code:
(A) "Affiliated entities" means
		  any person that (directly or indirectly) owns or controls, is owned or
		  controlled by, or is under common ownership or control with, the taxpaper. For
		  purposes of this definition, the term "own" means to own an equity
		  interest (or the equivalent thereof) of fifty per cent or more.
(B) "Amendment" means any
		  change to the terms and conditions of a tax credit agreement following approval
		  from the authority.
(C) "Authority" means the tax credit authority
		  created pursuant to division (M) of section 122.17 of the Revised
		  Code.
(D) "Consumer price index" means the statistic
		  released by the United States department of labor, bureau of labor
		  statistics.
(E) "Director" means the
		  director of development services agency of the state of Ohio.
(F) "Disadvantaged person"
		  means a resident of Ohio who meets at least one of the following
		  criteria:
(1) Is a person who is
			 currently receiving unemployment compensation or has not held a full-time job
			 for at least the four months immediately preceding the determination of
			 disadvantaged person status;
(2) Is certified as
			 having a disability by the state of Ohio's rehabilitation services
			 commission or bureau of workers' compensation, or who is determined to be
			 disabled by the United States social security administration;
(3) Is eligible for
			 Workforce Innovation and Opportunity Act program assistance; or
(4) Is a person whose
			 total gross annual income is less than the annual equivalent of one hundred
			 fifty per cent of the federal minimum wage, or is part of a household of two or
			 more persons whose total gross annual income is less than the annual equivalent
			 of three hundred fifty per cent of the federal minimum wage.
(G) "Effective date" means
		  January 1 of the first year of the term of the tax credit as approved by the
		  authority.
(H) "Excess income tax revenue"
		  means the total amount to be withheld under section 5747.06 of the Revised Code
		  by the taxpayer from the compensation of each new employee to be created at the
		  project location during the term of the agreement and post-term reporting
		  period.
(I) "Executive director" means
		  the executive director of the tax credit authority.
(J) "Extraordinary circumstance"
		  means
(1) The proposed project
			 will encompass asset expenditures that significantly exceed the asset
			 expenditures of similar projects within that industry sector;
(2) The proposed project
			 establishes or enhances a taxpayer's operations within a targeted
			 industry. Targeted industry means an industry sector that the development
			 services agency has then identified as a sector whose growth is vital to the
			 economic success of Ohio;
(3) The proposed project
			 utilizes a facility that has been vacant for at least twelve consecutive months
			 immediately preceding the application for the proposed project;
(4) For a taxpayer with
			 existing operations at the project location, the proposed project will result
			 in a growth in the number of full-time equivalent employees at the project
			 location of at least three hundred per cent;
(5) The proposed project
			 establishes a company or division national/international headquarters location
			 and the taxpayer will employ a minimum of two-hundred fifty full-time
			 equivalent employees at the project location; or
(6) After assessing all
			 of the factors included but not limited to those listed in this division and in
			 paragraph (C) of rule 122:7-1-06 of the Administrative Code as well as such
			 other factors regarding the proposed project as an indication of substantial
			 economic impact, the authority determines that the proposed project presents an
			 extraordinary opportunity for the state. Additional consideration will be
			 provided to proposed projects that:
(a) Plan to generate substantial payroll growth in a
				distressed city or county. Distress criteria are established by the development
				services agency and are published in map format at least twice each year to
				identify "priority investment areas".
(b) Commit to hire and retain a significant percentage of
				disadvantaged persons.
(K) "Fixed-asset investment" means the dollar
		  amount invested in building, land, machinery and equipment, and infrastructure
		  related to the project. Fixed-asset investment does not include investments in
		  furniture, personal computers, inventory, working capital, and other operating
		  expenses.
(L) "Full-time equivalent employees" means the
		  quotient obtained by dividing the total number of hours for which employees
		  were compensated for employment in the project by two-thousand eighty. If the
		  authority determines that full-time employees in a particular industry sector
		  normally work fewer than two thousand eighty hours per year, the authority may
		  reduce the denominator described in the preceding sentence to the number of
		  hours that correspond to full-time employment in the relevant industry sector.
		  The calculation of "full-time equivalent employees" shall exclude any
		  and all hours that are included as part of a tax credit under section 122.171
		  of the Revised Code.
(M) "Income tax revenue" means
		  the total amount withheld under section 5747.06 of the Revised Code by the
		  taxpayer during the tax year from the compensation of each employee at the
		  project location.
(N) "Maintain operations" means the continuation
		  of operations of the taxpayer as described in the tax credit agreement.
		  
(O) "Minority" means a resident of Ohio who is a
		  member of one of the following groups: Blacks or African Americans, American
		  Indians, Hispanics or Latinos, and Asians.
(P) "Payroll increase factor" means a numerical
		  percentage determined by the authority to represent retained payroll growth,
		  and which shall be applied annually during the term of the tax credit to adjust
		  the "baseline payroll," as defined in division (A)(2) of section
		  122.17 of the Revised Code. The payroll increase factor shall be a minimum of
		  one. The payroll increase factor shall be multiplied by the current taxable
		  year's baseline payroll to equal the next taxable year's baseline
		  payroll for each year during the term of the tax credit.
(Q) "Person" means, but is not
		  limited to, individuals, combinations of individuals of any form, receivers,
		  assignees, trustees in bankruptcy, firms, companies, joint-stock companies,
		  business trusts, estates, partnerships, limited liability partnerships, limited
		  liability companies, associations, joint ventures, clubs, societies, for-profit
		  corporations, S corporations, qualified subchapter S subsidiaries, qualified
		  subchapter S trusts, trusts, entities that are disregarded for federal tax
		  purposes, and any other entities.
(R) "Post-term reporting period" means the time
		  period a taxpayer must report to the authority and director to verify the
		  maintenance of operations at the project location. The post-term reporting
		  period begins at the conclusion of the tax credit term and continues for a
		  minimum of three years as set forth in the tax credit agreement corresponding
		  to the taxpayer's obligation to maintain operations at the project
		  location.
(S) "Project locations" means
		  the address or addresses listed in the tax credit agreement.
(T) "Relocated employees" means the full-time
		  equivalent employees or employment positions employed by the taxpayer or an
		  affiliated entity at the location elsewhere in the State other than the project
		  location that are relocated to the project location, and whose positions are
		  not replaced within the same calendar year, or, if the employees or employment
		  positions are relocated in the final quarter of the calendar year, within that
		  calendar year or the following calendar year.
(U) "Retail" means operations that include
		  point-of-final-purchase transactions at a facility open to the consuming
		  public, wherein one party is obligated to pay the price and the other party is
		  obligated to transfer title to or possession of the item sold.
(V) "Substantial number of employment positions"
		  means individual employees of the taxpayer for which the aggregate annual gross
		  payroll, excluding amounts paid for fringe benefits, is at least two hundred
		  thousand dollars. In calculating the "substantial number of employment
		  positions" threshold, the taxpayer must aggregate the payroll from all
		  relocated employees under paragraph (B) of rule 122:7-1-09 of the
		  Administrative Code for each year during the term of the tax
		  credit.
(W) "Substantially maintain"
		  with respect to division (K)(1)(c) of section 122.17 of the Revised Code means
		  at least fifty per cent of each of the commitments identified in the tax credit
		  agreement.
(X) "Substantially meet" with
		  respect to division (K)(1)(b) of section 122.17 of the Revised Code means at
		  least fifty per cent of each of the commitments identified in the tax credit
		  agreement.
(Y) "Tax year" means the calendar year in and for
		  which the tax imposed by section 5725.18, 5726.02, 5729.03, 5736.02 or 5747.02
		  or levied under Chapter 5751. of the Revised Code is required to be
		  paid.
(Z) "Taxable year" means the annual tax reporting
		  period of the taxpayer prescribed by division (M) of section 5751.01 of the
		  Revised Code with respect to persons subject to the Ohio commercial activities
		  tax, and prescribed by division (M) of section 5747.01 of the Revised Code with
		  respect to persons subject to individual income tax. With respect to insurance
		  companies taxable year means the calendar year subject to the franchise tax
		  return required pursuant to section 5725.18 of the Revised Code, or subject to
		  the tax required pursuant to section 5729.03 of the Revised Code.
(AA) "Taxpayer" means a business entity that has
		  entered into an agreement for a tax credit pursuant to division (D) of section
		  122.17 of the Revised Code.
(BB) "Transferred payroll" means the payroll
		  attributed to all relocated employees at the project location, if any.