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Schedule E
Rev. 1/15
liability. Nevertheless, a pass-through entity can make an ir- The amount of the credit is equal to 50% of the money the
revocable election to pass-through the credit to its owners. taxpayer invests in a certifi ed ethanol plant up to a maximum
If the pass-through entity makes the election, those owners of $5,000 per taxpayer per ethanol plant regardless of the
that are individuals can claim their share of the credit against number of years in which the taxpayer makes investments.
either their CAT liability on a stand-alone basis or against their The credit shall be claimed for the taxable year during which
Ohio individual income tax liability. See Ohio Revised Code the investment was made.
sections 122.171(I) and 5747.058(B).
“Ethanol” means the fermentation of ethyl alcohol from agricul-
For additional information please contact the Ohio Develop- tural products, including potatoes, cereal, grains, cheese whey,
ment Services Agency’s Offi ce of Grants and Tax Incentives sugar beets, forest products and other renewable resources
at (614) 466-4551 or (800) 848-1300. that meet all of the specifi cations of the ASTM. Certified
ethanol plant means a facility at which ethanol is produced
Line 3 – Credit for Eligible New Employees in an and for which the Ohio Department of Agriculture has issued
Enterprise Zone a certifi cate under R.C. 901.13.
An employer that is complying with an enterprise zone agree-
ment under R.C. 5709.62 and 5709.63 and that has not If the investor is a pass-through entity, each equity investor in
closed or reduced employment at any place of business in the pass-through entity may claim a proportionate share of the
Ohio within the previous 12 months may apply to the director credit. The total credit for all years may not exceed the maxi-
of the Ohio Development Services Agency for an “employee mum limit of $5,000 per taxpayer per certifi ed ethanol plant.
tax credit certifi cate” for each “eligible new employee,” which
The Ohio Department of Agriculture administered this credit. To
the employer hires after June 30, 1994 at the facility to which
obtain additional information, please contact the Ohio Depart-
the enterprise zone agreement applies.
ment of Agriculture, 8995 East Main Street, Reynoldsburg,
An employer that receives a tax credit certifi cate for an eligible OH 43068; general phone number: 614-466-2732; e-mail
employee may claim a $1,000 nonrefundable credit for each address: agri@odant.agri.state.oh.us.
taxable year covered under the enterprise zone agreement
during which the employer employs the eligible new employee. Line 5 – Credit for Purchases of Grape Production
If an eligible employee is employed for less than the employer’s Property
full taxable year, the taxpayer’s credit is proportionately re- Grape producers may claim a credit equal to 10% of the cost
duced. See R.C. 5709.66(B)(1). of purchasing and installing or constructing qualifying property
on or after Jan. 1, 1994. Qualifying property is any property,
An “eligible employee” is a new employee at the facility to plant or equipment used in growing, harvesting or producing
which the enterprise zone agreement applies who at the time grapes in Ohio. The credit is subject to recapture if the taxpayer
hired was a recipient of aid to dependent children or general disposes of the property or ceases to use it as qualifying prop-
assistance and who resided for at least one year in the county erty within seven years after placing it in operation. The grape
in which the facility is located. See R.C. 5709.66(B)(2)(a). producer calculates the credit. If the producer is a pass-through
entity, each investor in the pass-through entity may claim a
Important: Taxpayers who claim this credit should maintain for proportionate share of the credit. Enter the credit amount in
four years a supporting schedule that provides the following Schedule E-2, line 1, in the appropriate column. Unused credit
information for each eligible employee for which an employee amounts may be carried forward for seven taxable years fol-
tax credit certifi cate is received from the director of the Ohio lowing the taxable year in which the credit is generated. After
Development Services Agency: (a) name of employee, (b) date that time the unused portion of the credit expires.
hired (and date of termination of employment if applicable)
and (c) amount of credit claimed. If a taxpayer claims the R.C. Line 6 – InvestOhio Credit
5709.66 enterprise zone new employee tax credit with respect InvestOhio provides a nonrefundable personal income tax
to an employee, the taxpayer may not claim the R.C. 122.17 credit to investors that infuse new equity (cash) into Ohio small
new jobs refundable credit with respect to that employee. See businesses to acquire an ownership interest in the company.
R.C. 5709.66(B)(2)(b)(i) and 122.17(A). The small business is required to reinvest that infusion of
cash into one of fi ve categories of allowable expenses within
The employer calculates the credit. If the employer is a pass-
six months of its receipt. The investor must retain his or her
through entity, each investor in the pass-through entity may
ownership interest for a two-year holding period before the
claim a proportionate share of the credit. Enter credit amount
tax credit may be claimed. The small business must similarly
in Schedule E-2, line 1 in the appropriate column. Unused
retain the property that it purchased from the cash infusion
credit amounts may be carried forward for three taxable years
for the entire two-year holding period.
following the taxable year in which the credit is generated.
The program is administered by the Ohio Develop-
Line 4 – Credit for Certifi ed Ethanol Plant Investments ment Services Agency in collaboration with the Ohio
A taxpayer may claim a credit if the taxpayer invests in a certi- Department of Taxation. For more information, go to
fied ethanol plant. The investment must be made after Jan. 1, http://development.ohio.gov/bs/bs_investohio.htm.
2002 and before Dec. 31, 2012.
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