Ohio House Greenlights New Tax Credit
By Michelle Jarboe, Crain's
The Ohio House signed off Tuesday, Dec. 8, on a bill to create a new state tax credit for "transformational" real estate projects, nearly three years after the proposal first surfaced.
Substitute Senate Bill 39 will establish a nonrefundable tax credit designed to offset premium taxes paid by insurance companies that invest in large, mixed-use developments. It's now headed back to the Senate, which approved an earlier version of the language 18 months ago.
The framework laid out by the legislature will allow insurers to apply for credits directly or to buy them, at a discount, from property owners. Either way, the program would generate up-front cash for projects while letting insurance companies cut their state tax liabilities.
Developers of proposed megaprojects in Cleveland, Cincinnati and Columbus have been watching the legislation since January 2018, when it was originally introduced as House Bill 469.
The original legislation required projects to cost at least $400 million and include at least one tall building, with 20 or more stories. The revised language drops that investment threshold to $50 million for projects located in or near major cities.