(A) Subject to the provisions of Section 197.066(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 the taxable year.
(B) The amount of the City income tax credit allowed under Section 197.066(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 197.012(B), with this product multiplied by the taxpayer's allocation and apportionment percentage obtained pursuant to Section 197.062 for the taxable year.
(C) In no case shall the City income tax credit allowed under Section 197.066(A) exceed the taxpayer's city income tax liability for the taxable year. Moreover, the City income tax credit allowed under Section 197.066(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. 15-58. Passed 11-2-15.)