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Schedule E
Rev. 10/15

10211411

2015 Ohio Schedule E Nonrefundable Business Credits
For use with Ohio forms IT 1041 and IT 4708
Taxpayer Information
Name of entity, trust or estate FEIN

Fiduciary name and title (if applicable) Social Security number

Address (number and street)

City, town or post ofﬁ ce, state and ZIP code

Business Information (if more than one related business entity, attach list)
Name of related business entity FEIN

Business address (number and street)

City, town or post ofﬁ ce, state and ZIP code

This schedule applies to trusts and estates who as sole proprietors or as investors in pass-through entities (e.g., partner-
ships, limited liability companies treated as partnerships for federal income tax purposes, and S corporations) are entitled to
claim one or more of the nonrefundable Ohio business credits listed below. Nonrefundable business credits can reduce tax
liability, before payments, to zero but cannot generate a tax refund.

Schedule E-1
Schedule of Nonrefundable Business Credits
You must claim credits in the order listed in Ohio Revised Code section (R.C.) 5747.98. Enter on the
applicable line below each credit amount from line 12 of the summary worksheet on page 2.

Enclose with your tax return Schedule E-1 and E-2 and Carryforward Amount
the requested credit certiﬁ cates, if applicable. Period of Credit

1. Credit for contributions to candidates for Ohio statewide ofﬁ ce or General
Assembly (R.C. 5747.29). Not available for trusts ....................................... None 1.
2. Job retention credit, nonrefundable portion (enclose a copy of the credit
certiﬁ cate) (R.C. 5747.058, 122.171).......................................................... Three years 2.
3. Credit for eligible new employees in an enterprise zone(R.C. 5709.66(B)) Three years 3.
4. Credit for certiﬁ ed ethanol plant investments (R.C. 5747.75)....................... Three years 4.
5. Credit for purchases of grape production property (R.C. 5747.28) .............. Seven years 5.
6. Credit for investing in an Ohio small business (R.C. 5747.81) ..................... Seven years 6.
7. Enterprise zone day-care and training credits (R.C. 5709.65 (A)(4) and
(A)(5)) ........................................................................................................... Unlimited 7.
8. Research and development loan repayment credit (enclose a copy of the
credit certiﬁ cate) (R.C. 5747.331) .............................................................. Unlimited 8.
9. Ohio historic preservation credit, nonrefundable carryforward portion
(R.C. 5747.76(D)) ......................................................................................... Five years 9.
10. Total nonrefundable business credits (add the amounts on lines 1 through
9 above). Enter here and on line 11 of Ohio form IT 4708 or on line 10 of
Ohio form IT 1041 ........................................................................................ 10.

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Schedule E
Rev. 10/15

10211411

Schedule E-2
Nonrefundable Business Credit Summary Worksheet
(Enclose this schedule with your return.)
Note: All credits are calculated by the business entity, and then the owners of the business entity can claim a proportionate
share of the credit.

Enter the name(s) of each credit you are claiming. Use 1 2 3 4
the sequence (order) set forth on Schedule E-1 on the
ﬁ rst page .......................................

1. Amount of credit available to the pass-through
entity .....................................................................

2. Enter the percentage of your ownership interest. % % % %
If sole owner, enter 100% .....................................

3. Multiply the amount on line 1 by the percentage
on line 2 ................................................................

4. Enter the amount of unused credit carryforward,
if any, from a prior year(s) .....................................

5. Tentative credit (add lines 3 and 4). See instruc-
tions for limits ........................................................

6. Enter your Ohio income tax from form:

– IT 4708, line 10 .................................................

– IT 1041, line 8 minus Schedule B, C, D
and I credits ......................................................
- 0 -
7. Enter the amount shown on line 12, column 1 ......
- 0 - - 0 -
8. Enter the amount shown on line 12, column 2 ......
- 0 - - 0 - - 0 -
9. Enter the amount shown on line 12, column 3 ......
- 0 -
10. Add lines 7 through 9 above .................................

11. Line 6 minus line 10 (but not less than zero) ........

12. Allowed credit for the taxable year: Enter
the smaller of line 5 or line 11 here and in
Schedule E-1 on page 1 .......................................

13. Unused credit: If line 5 is greater than line 11,
enter the difference here; otherwise, enter -0-.
See instructions for carryforward limitations for
each credit ............................................................

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                                                                                                                      Schedule E
                                                                                                                      Rev. 10/15

                                                   General Instructions
The nonrefundable business credits listed in Schedule E-1 may       Governor                    Chief justice of the Ohio
be used to reduce the tax liability (before payments) to zero.      Lieutenant governor          Supreme Court
                                                                    Secretary of state          Justice of the Ohio
Schedule E-1 lists the nonrefundable business credits in the        Auditor of state             Supreme Court
order in which you may claim them as well as the carryover          Treasurer of state          Ohio Senate
period for each credit. The order is important if you are entitled  Attorney general            Ohio House of
to more than one credit and if you are unable to use some           Ohio Board of Education      Representatives
portion of the total credit in the year generated. 
                                                                   The amount of the credit is the lesser of (i) the combined total 
Please read all of  the following instructions carefully for each  cash contributions made by each taxpayer during the taxable 
section to determine if you are eligible to claim that particular  year or (ii) $50 for each taxpayer. If the contributor is a pass-
credit.                                                            through entity, each pass-through entity investor, other than 
Please enclose with your tax return Schedule E-1 and E-2. You      investors that are trusts, may claim a proportionate share of 
also will need to enclose any certiﬁ cates required by Schedule    the contribution. However, the credit for each investor, other 
E-1. All other supporting schedules or documentation are sub-      than investors that are trusts, cannot exceed the lesser of each 
ject to examination by the Ohio Department of Taxation.            investor’s proportionate share of the contribution or $50. 
You will need to review the applicable law. Schedule E-1 sets      Note: If you claim the credit for political contributions 
forth the applicable Ohio Revised Code sections (R.C.) needed      in Schedule E, you may not claim a credit for the same 
for each business credit listed.                                   political contributions in Schedule B of Ohio form IT 1041. 

Mailing Instructions                                               Line 2 – Job Retention Credit, Nonrefundable Portion
Each taxpayer with nonrefundable business credits should           Administered by the Ohio Tax Credit Authority through the 
enclose Schedule E-1 and E-2 and certiﬁ cates, if any, with the    Ohio Development Services Agency, the nonrefundable por-
taxpayer’s Ohio income tax return (form IT 4708 or IT 1041,        tion of the job retention credit applies to “eligible businesses” 
whichever is applicable) and mail to the address reﬂ ected on      that commit to a substantial capital investment project that will 
that form.                                                         retain jobs in Ohio. In consideration of an eligible business’ 
                                                                   commitment to acquire, construct, renovate or repair buildings, 
Taxpayer Assistance                                                machinery or equipment, or conduct basic research and new 
If you want further information, you may use any of the follow-    product development at the Ohio project site, the authority 
ing methods to contact us:                                         will grant a tax credit equal to a percent of the Ohio income 
                                                                   tax withheld from the taxpayer’s employees at the project site 
• Internet –  tax.ohio.gov                                         over the term of the credit. 
 
•Call us   – (888) 405-4039                                        An “eligible business” must apply to the authority for review and 
 
                                                                   approval of the taxpayer’s proposed capital investment project. 
•Write us    –Ohio Department of Taxation
                                                                   Following the authority’s approval of the taxpayer’s project, 
              P.O. Box 182847
                                                                   the eligible business and the authority can enter a tax credit 
              Columbus, OH  43218-2847
                                                                   agreement. While the particulars can vary from agreement to 
•Walk-in   –  The address and hours of our walk-in Colum-          agreement, depending on the number of full-time equivalent 
              bus Taxpayer Service Center are listed on the        employees at the project and the value of the project, the credit 
              inside back cover of the IT 1041 and IT 4708         cannot exceed 75% of the tax withheld, and the credit term 
              booklets.                                            is limited to 15 years. The taxpayer must maintain operations 
                                                                   at the project site for the greater of (a) the term of the credit 
For Deaf, Hard of Hearing or Speech Impaired Who Use               plus three years, or (b) seven years. 
TTY or TDD Only
Please contact the Ohio Relay Service at 7-1-1 or 1-800-750-       For each taxable year for which the taxpayer claims the 
0750 and give the communication assistant the Ohio Depart-         credit, the taxpayer is required to submit a copy of the Ohio 
ment of Taxation telephone number that you wish to contact.        Development Services Agency’s certiﬁ cate of veriﬁ cation with 
                                                                   the taxpayer’s tax report. However, failure to submit a copy 
Line 1 – Credit for Contributions Made to Candidates               of the certiﬁ cate with the report does not invalidate a claim 
for Ohio Statewide Ofﬁ ce or General Assembly                      for the credit if the taxpayer submits a copy of the certiﬁ cate 
Taxpayers other than trusts may claim a credit for contributions   to the commissioner within 60 days after the commissioner 
of money during the taxable year to the campaign committee         requests it. 
of candidates for any of the following Ohio ofﬁ ces:
                                                                   A pass-through entity will generally claim this credit as a credit 
                                                                   against the pass-through entity’s commercial activity tax (CAT) 

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Schedule E
Rev. 10/15
liability. Nevertheless, a pass-through entity can make an The amount of the credit is equal to 50% of the money the
irrevocable 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. Certiﬁ ed
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
ﬁ ed 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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                                                                                                                            Schedule E
                                                                                                                            Rev. 10/15
Line 7 – Enterprise Zone Day Care and Training Credit               Enterprise Zone Training Credit
                                                                    Employers that hold a tax incentive qualiﬁ cation certiﬁ cate is-
Enterprise Zone Day Care Credit                                     sued by the Ohio Development Services Agency and that pay 
Employers who hold a Tax Incentive Qualiﬁ cation Certiﬁ cate        or reimburse all or part of the cost of participation by “quali-
issued by the Ohio Development Services Agency and who              fying new employees” in a “qualiﬁ ed training program” can 
reimburse “qualifying new employees” (deﬁ ned below) for all        claim a nonrefundable tax credit equal to the amount that the 
or part of day-care services necessary to enable such em-           employer pays or reimburses the qualifying new employee for 
ployees to be employed at the enterprise zone facility to which     the training program. However, the maximum credit is $1,000 
the tax incentive qualiﬁ cation certiﬁ cate applies, can claim a    per employee. In addition, the employee must be employed 
nonrefundable tax credit equal to the amount reimbursed.            by the enterprise for at least 90 days following completion of 
However, the credit is limited to a maximum of $300 for each        the training program. This credit is allowed for the taxable year 
child or dependent of the qualifying new employee receiving         in which the employee completes the 90 days of subsequent 
the day-care services. Only reimbursements of amounts that          employment.
new employees pay to day-care centers licensed by the Ohio 
Department of Human Services for day-care services provided         Important: Taxpayers claiming the training credit should 
during the ﬁ rst 24 months of employment are eligible for this      maintain for four years a supporting schedule providing the 
credit. The credit is available for the taxable year in which the   following information for each qualifying new employee for 
reimbursement is made.                                              whom the taxpayer is claiming the credit:
Important: Taxpayers claiming the day-care credit should            • Name of employee
maintain for four years a supporting schedule that provides         • Date hired and date of termination (if applicable)
the following information for each qualifying new employee          • Amount paid or reimbursed for all or part of the cost of the 
receiving reimbursement for day-care expenses:                       employee’s participation in the qualiﬁ ed training program
• Name of employee                                                  R.C. 5709.61(P) deﬁ nes a “qualiﬁ ed training program” as any 
• Date hired                                                        noncredit training program or course of study that is offered 
• Number of children or dependents receiving day-care ser-          by any of the following:
  vices
• Amount reimbursed to employee.                                    • State college or university
                                                                    • University branch district
For purposes of the enterprise zone day-care credit and the         • Community college
enterprise zone training credit, R.C. 5709.64(A)(2) deﬁ nes         • Technical college
“qualifying new employees” as persons who at the time they          • College or university certiﬁ ed under R.C. 1713.02
were hired were one of the following:                               • School district
                                                                    • Joint vocational school district
•  Unemployed persons residing for at least six months in the       • School registered under R.C. 3332.05
  county in which the enterprise’s project site is located,         • An entity administering any federal, state or local adult 
• “Job Training Partnership Act” eligible employees residing         education and training program; OR
  for at least six months in the county in which the enterprise’s   • Any enterprise.
  project site is located,                                          In addition, a qualiﬁ ed training program must meet all the fol-
• Recipients of aid to dependent children, general relief or        lowing requirements:
  unemployment compensation beneﬁ ts who reside for at least        •  The training program is approved by the director of the Ohio 
  six months in the county in which the enterprise’s project         Development Services Agency; AND
  site is located,
                                                                    •  The purpose of the training program is to satisfy the need  of 
•  Handicapped persons as deﬁ ned under division (A) of R.C.         a particular industry or enterprise for skilled or semi-skilled 
  3304.11, residing for at least six months in the county in         employees; AND
  which the enterprise’s project site is located, or 
                                                                    •  An individual is required to complete the course or program  
•  Residents for at least one year of an enterprise zone located     before ﬁ lling a position at the enterprise’s facility.
  in the county in which the enterprise’s facility is located.       
                                                                    The employer calculates the credit. If the employer is a pass-
The employer calculates the credit. If the employer is a pass-      through entity, each equity investor may claim a proportionate 
through entity, each equity investor in the pass-through entity     share of the credit. Enter the credit amount in Schedule E-2, 
may claim a proportionate share of the credit. Enter the credit     line 1 in the appropriate column. Credit amounts that are not 
amount in schedule E-2, line 1 in the appropriate column.           used can be carried forward to the succeeding taxable year 
Credit amounts that are not used in the year generated can be       or years until fully utilized.
carried forward to the next succeeding taxable year or years 
until fully utilized.

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Schedule E
Rev. 10/15
Line 8 – Research and Development Loan Repayment pass-through entity’s equity owners in proportion to their
Credit ownership interests or in such proportions or amounts as the
House Bill 494, 130th General Assembly, effective March 20, equity owners mutually agree. The new law applies to credits
2015, amended this nonrefundable credit to make it applicable claimed with respect to certiﬁ cates issued in taxable years
to tax years beginning in 2003 and going forward. The credit ending on or after Oct. 16, 2009. See section 803.20 of the bill.
was originally only available for tax years 2003 through 2007. (While prior law did not speciﬁ cally address credit allocation,
The amount of the nonrefundable credit equals the borrower’s the department maintained that the pass-through entity must
qualiﬁ ed research and development loan payments during the allocate the credit to each equity investor in accordance with
calendar year – regardless of whether the taxpayer’s taxable the investor’s interest in the pass-through entity on the date
year is a calendar year or a ﬁ scal year. The term “qualiﬁ ed that the pass-through entity ﬁ led the tax credit certiﬁ cate
research and development loan payments” means payments request.)
of principal and interest on a loan made to the borrower from
Ohio’s research and development fund administered by the For project applications that are approved after March 13,
Ohio Department of Development. 2008, the credit is limited to $5 million per project and the
credit can contain a refundable portion and a nonrefundable
The borrower’s credit generated as a result of its qualiﬁ ed portion. If the credit allowed for any taxable year exceeds the
research and development loan payments made during a tax otherwise due under R.C. 5747.02, after allowing for any
calendar year that includes the last day of the taxpayer’s other credits preceding the credit in the order prescribed by
taxable year may not exceed $150,000 per loan. The credit R.C. 5747.98, the excess will be refunded to the taxpayer, but
amount not used in the taxable year can be carried forward if any amount of the credit is refunded, the sum of the amount
until fully used. The borrower may assign the tax credit, or a refunded and the amount applied to reduce the tax otherwise
portion thereof, to any of the following: (i) the borrower’s related due for that year may not exceed $3 million or, if the certiﬁ cate
member, (ii) the owner or lessee of the eligible research and owner is a pass-through entity, may not exceed the taxpayer’s
development project, or (iii) a related member of the owner distributive or proportionate share of $3 million. The taxpayer
or lessee of the eligible research and development project. If may carry forward any balance of the credit in excess of the
the borrower is a pass-through entity and if the taxpayer is a amount claimed for that year for not more than ﬁ ve ensuing
partner or member of the pass-through entity-borrower, the taxable years, and must deduct any amount claimed for any
taxpayer can claim a proportionate share of the pass-through such year from the amount claimed in an ensuing year.
entity-borrower’s credit.
Additional information is available on ODSA’s Web site at www.
Line 9 – Ohio Historic Preservation Credit development.ohio.gov/cs/cs_ohptc.htm.
Nonrefundable Portion
Administered by the Ohio Development Services Agency Refundable Business Credits
(ODSA), the historic preservation credit applies to owners Do not use Schedule E to claim refundable credits. Instead,
and qualiﬁ ed lessees of certain historic Ohio buildings for the claim them on the appropriate “refundable credits” line on your
expenditures paid or incurred to rehabilitate such buildings, Ohio income tax return.
provided that ODSA approves the proposed rehabilitation A refundable credit is treated as a payment of the tax and is
project. If ODSA approves the project, the credit equals 25% accounted for after the nonrefundable credits. Unlike nonre-
of the owner’s or qualiﬁ ed lessee’s “qualiﬁ ed rehabilitation fundable credits, a refundable credit may result in the taxpayer
expenditures” (QREs) paid or incurred during the 24- or receiving a refund for a credit amount in excess of tax due
60-month rehabilitation period shown on the taxpayer’s tax after reduction for all nonrefundable credits.
credit certiﬁ cate issued by ODSA. “Qualiﬁ ed lessee” is deﬁ ned
in R.C. 149.311. The historic building’s owners or qualiﬁ ed
lessees can claim the credit against their income tax liability. Federal Privacy Act Notice
See R.C. 149.311 and 5747.76. Because we require you to provide us with a Social Se-
curity number, the Federal Privacy Act of 1974 requires
Amended Substitute House Bill 1, 128th General us to inform you that providing us with your Social Secu-
Assembly, effective July 19, 2009, amended the credit to rity number is mandatory. Ohio Revised Code sections
speciﬁ cally provide that if a pass-through entity owns and 5703.05, 5703.057 and 5747.08 authorize us to request
restores a historic building with respect to which the ODSA
this information. We need your Social Security number in
issued a preservation tax credit certiﬁ cate for the pass-through
order to administer this tax.
entity’s QREs, the PTE can allocate the credit among the

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