Legislative Fix Likely for New State Tax Credit Program

Michelle Jarboe, Crain's

With $100 million in much-anticipated tax credits set to evaporate on June 30, state lawmakers are exploring ways to preserve the incentives for challenging real estate deals.

The Ohio Development Services Agency has been working to roll out a new tax credit program for so-called "transformational" mixed-use projects, which won legislative approval in late 2020. Developers are watching the bureaucratic process with bated breath.

But it's clear that the agency won't be able to solicit, review and rank applications within the next two months. And under current law, the $100 million that the Ohio General Assembly allocated for the 2021 fiscal year won't roll over. Instead, it will simply disappear.

"Development is working diligently to make sure this program will be successful and have a positive impact on Ohio communities," Todd Walker, an agency spokesman, wrote in an email late last week. "We expect the program will launch in the first quarter of fiscal year 2022.