H.B. 254 Summary

• Enacts section 5747.073 of the Revised Code to create an income tax withholding credit for manufacturers that expand production or restart production at idle facilities (idle for at least 12 months) before January 1, 2016.

• Manufacturer qualifies for the credit if wages paid exceed base-month wages by $750,000 or more within six months after production restart or expansion, with the credit equaling undeposited taxes during a six-month credit period.

• Withheld taxes retained by the manufacturer during the credit period are considered remitted for reporting and tax credit purposes by employees.

• Establishes a three-year "clawback period" requiring manufacturers to repay credits if average monthly wages fall below $1 million in excess of base-month wages, plus 10% penalty and interest.

• Amends sections 122.17, 122.171, and 5747.07 to reference the new withholding credit and exclude amounts claimed under the new provision from other tax credits.