Credits/Incentives:
Ohio: New Law Expands Eligibility for Generating Some Opportunity Zone Tax Credits

S.B. 225, signed by gov. 6/14/22. Recently signed legislation modifies state law pertaining to Ohio’s opportunity zone investment tax credit program, including opening investment in Ohio qualified opportunity funds to persons other than taxpayers subject to Ohio income tax. Under the new law, persons other than Ohio income taxpayers may invest in Ohio opportunity zones and then transfer any acquired credits to Ohio taxpayers, in whole or part, as only Ohio income taxpayers may use such state tax credits.

Ohio opportunity zone tax credits generally are equal to 10% of a person’s investment in Ohio qualified opportunity funds that are in turn invested in projects located in Ohio opportunity zones, which are areas designated for development under the federal Tax Cuts and Jobs Act of 2017 (i.e., P.L. 115-97). Ohio’s opportunity zone tax credit generally is nonrefundable and may be claimed against Ohio individual income tax for the year when a qualifying investment is made in a project, or for the next year; any unused credit amounts may be carried forward for up to five years. Please contact us with any questions.