(a) For taxable years beginning on or after January 1, 2012, and subject to the provisions of Section 191.151(c), a taxpayer may claim a credit against the taxpayer's City income tax liability where the taxpayer has for the same taxable year claimed on IRS Form 3800, Schedule K, or similar or successor forms, a federal income tax credit for compensation and benefit payments and, as a result of claiming such federal income tax credit, is unable to deduct the subject compensation and benefit payments in determining the taxpayer's federal taxable income for that taxable year.
(b) The amount of the City income tax credit allowed under Section 191.151(a) shall be the product of the compensation and benefit payments that cannot be deducted in determining the taxpayer's federal taxable income for the taxable year and the income tax rate set forth in Section 191.03(a), with this product multiplied by the taxpayer's allocation and apportionment percentage obtained pursuant to Section 191.03(c) for the taxable year.
(c) In no case shall the City income tax credit allowed under Section 191.151(a) exceed the taxpayer's City income tax liability for the taxable year. Moreover, the City income tax credit allowed under Section 191.151(a) shall not be available for any taxable year in which Ohio law permits or directs the compensation and benefit payments for which the federal income tax credit is claimed to be deducted in determining net profits that are subject to City income tax.
(Ord. 12-67. Passed 10-15-12.)