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Ohio Legislation Would Increase Statewide Cap for OZ Tax Credit, State HTC

Tuesday, September 28, 2021 - 8:30AM

Legislation introduced in the Ohio state Senate would temporarily increase the statewide cap for the state historic tax credit (HTC) and the state opportunity zone (OZ) investment tax credit and make other modifications. S.B. 225 would increase the annual state HTC cap to $120 million for fiscal years 2022 and 2023 from the current $60 million cap and increase the transaction cap to $10 million from the current $5 million for fiscal years 2021, 2022 and 2023. The legislation would also increase the state HTC from 25% to 35% for HTC properties in communities with populations less than 71,000 according to the 2020 census. S.B. 225 would also increase the statewide OZ investment credit cap from $50 million to $100 million for the period of July 1, 2021, to June 30, 2023, reverting to $50 million per biennium after that. The bill would also make changes to the taxable year for the state OZ investment credit, making the credit apply to the taxable year in which the investment was made in a project in an Ohio OZ, rather than when the taxpayer invested in the qualified opportunity fund.

Learn more about different development finance tools and how they can be used with OZ investments at the Novogradac 2021 Fall Opportunity Zones Conference in Cleveland, Oct. 21-22.

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