Ohio Launches New Markets Tax Credit Program
Governor Ted Strickland and Ohio Department of Development Director Lisa Patt-McDaniel today announced the launch of the Ohio New Markets Tax Credit program.
The program helps finance business investments by providing state tax credits to investors for below market rate financial products for low-income community businesses. The first application period is now open.
“The New Markets Tax Credit is a critical part of our plan to create Ohio jobs in communities that have traditionally been in need of business investments,” Strickland said. “When we make it easier to make business investments in Ohio, businesses find it easier to create jobs for hard-working Ohioans.”
The program idea was first introduced by the Speaker of the House Armond Budish.
“We are one of the first states to enact this business incentive, which makes us more competitive nationwide in attracting business. This edge is important as we continue our recovery from the national recession,” said Speaker Budish. “The credit offers an incentive for investment in new and growing companies that will not only generate jobs but also add to the vitality of the community, fostering an environment for ever greater business growth. The New Markets Tax Credit is just part of the extensive job creation initiative in the Ohio House that includes the Investment Technology Tax Credit, adding $100 million to the Venture Capital Authority and expanding the Third Frontier Program.”
The Ohio New Markets Tax Credit program is one of the first state programs of its kind in the country, and leverages the successful Federal New Markets Tax Credit program to attract additional investment to Ohio.
The federal program has created more than $26 billion in investments through the New Markets Tax Credit program and has awarded more than $1 billion to Ohio-based Community Development Entities.
Federal data shows that for every dollar of foregone tax revenues under the New Market Tax Credit, $12 of private investment is leveraged in distressed communities.
Ohio organizations that have been allocated federal New Markets Tax Credits range from large financial institutions to small community development corporations.
“Tax credits are often a critical component in creating job and economic growth opportunities in Ohio’s communities,” Patt-McDaniel said. “By providing these tax credits for investors, businesses are able to increase their efficiency, benefiting the company and the entire community.”
The program is administered by the Department’s Urban Development Division.
A total allocation of $10 million in tax credits is available in the first round of funding. Only Community Development Entities serving Ohio that have already received a tax credit allocation from the Federal New Markets Tax Credit program are eligible to apply.
The Ohio New Markets Tax Credits program provides a 39 percent tax credit over seven years for qualified investments in low-income community businesses.
Applications for the Ohio New Market Tax Credit are due on September 20, 2010. Approved applications will be announced by October 31, 2010.
For more information on the program and the application period, please visit www.urban.development.ohio.gov
Topics: 2010, Armond Budish, business, Department of Development, economic development, economic growth, economic recovery, Economy, employment, finance, Governance, government, Governor Ted Strickland, investment, investors, jobs, moniter, monitor, New Markets Tax Credit, news, Ohio, society, tax credits
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