Posted by: Brett W. Neate, CPA, MT
Up to $100 million in Ohio personal income tax credits are up for grabs to eligible investors who act quickly.
The InvestOhio Program, launched by the State of Ohio, was created to encourage investment in Ohio-based eligible small businesses. Qualifying applicants to this program will receive non-refundable Ohio personal income tax credits equal to 10% of their investment in an eligible small business. Any unused credits can be carried forward up to seven years.
Investors eligible for this program include individuals, estates, trusts, and pass-through entities. Tax credits resulting from investments made by a pass-through entity, such as a partnership, LLC or an S corporation, may be passed through to its shareholders, partners, or members.
To qualify for the credit, eligible small businesses in which the investments are made must be Ohio-based and either have a maximum of $50 million in assets OR a maximum of $10 million in annual sales. An eligible business must also have at least 50 Ohio-based employees OR employ more than half of its employees in Ohio. C-corporations, S-corporations, partnerships, LLC’s, and sole proprietorships may all be considered to be eligible small businesses under this program.
To qualify, investments must be made on or after July 1, 2011 and be used by the small businesses to acquire certain specified types of property or pay compensation to new employees. There are also holding periods that must be met by both the investor and the small business for the tax credits to be issued.
It is important to point out that these credits are offered on a first-come first-served basis. Applications can be submitted beginning in the first week of December 2011, so eligible investors must act immediately to take advantage of this program.
If you have questions about participation in the InvestOhio Program, please visit the Zinner & Co. LLP website, www.zinnerco.com, or call us at (216) 831-0733 to contact one of our tax professionals. Your success is our business!
