Ohio Budget HB 166 Contains Income Tax Credit for Investments in Qualified Opportunity Zone Funds

Qualified Opportunity Zones Update

Date: July 10, 2019

Publication: Thompson Hine

Ohio Budget HB 166 contains an 10% income tax credit against Ohio income taxes for investments that satisfy the proposed Ohio requirements and application procedures, and can be carried forward five years and would be transferable. The Ohio House and Senate have approved identical versions of the OZ portion of the bill and differences with respect to other portions of the bill are to be addressed. There is a lot of detail to the Ohio income tax credit, with most questions to be resolved by the Ohio Development Services Agency in connection with approving applications. Read more.

The following are headlines regarding the pending OZ provisions.

  • Supplements Federal Income Tax Benefits that are Equally Applicable for Ohio Taxes
  • Credit Commences for Amounts Invested in Projects in an Opportunity Zone, which seems to mean when dollars are actually spent
  • Pass-Through Entity Receives the Tax Credit with Flow Through to Members
  • Need to Apply for Credit and Receive Certification through Ohio Development Services Agency on a First-Come, First-Served basis
  • For each Two-Year Period, Caps Apply to Aggregate Amount of Certificates Issued to All Taxpayers ($50 million) and to Each Applicant ($1 million)
  • Certificate to be Issued within 60 Days of Application, but delays could cause tax credit to be claimed for following year
  • Seems Applicable Only to Dollars Disbursed Towards Projects After Enactment

For more information, please contact Frank Ferrante, Alexis Kim, or any member of the firm’s Qualified Opportunity Zones group.

Francesco A. Ferrante
Thompson Hine LLP
O: 937.443.6740
M: 937.470.0598
Francesco.Ferrante@ThompsonHine.com

Alexis J. Kim
Thompson Hine LLP
O: 216 566-5732
M: 216-385-3493
Alexis.Kim@ThompsonHine.com