Ohio Legislature Increases Tax Credits for Development of Opportunity Zones and Historically Significant Properties

Recently, the Ohio legislature nearly doubled the amount of tax credits offered to developers of certain properties. More specifically, the total amount being offered as tax credits to developers of properties located in designated Opportunity Zones has increased from $50 million to $75 million for FY 2022-2023, and the maximum that an individual can receive for a single property has doubled from $1 million to $2 million. What has not changed, however, is the percentage of investments that will be converted to tax credits, which remains at 10%.

The other major reform that the legislature enacted was the change to investments in historically significant properties. Previously, the total amount of credits offered was $60 million, and this has doubled to $120 million. Additionally, the proportion of investments translated to tax credits has increased from 25% to 35%, and the maximum an individual could receive per property has doubled from $5 million to $10 million.

If you have any questions on how this might affect you, please give us a call today at our Ohio office: (330)-800-9565

Source: https://www.vorys.com/publications-3106.html