Wednesday, May 23, 2012

Ohio House Passes Bill Revising State Tax Credits

Release: <blockquote>
COLUMBUS—State Representatives Anne Gonzales (R-Westerville) and Peter Beck (R-Mason) today announced that the Ohio House has passed legislation that makes a series of revisions to various tax credits in the state.
“The most basic need of state government is to provide a healthy environment for businesses to be born and thrive, bringing jobs to our people,” said Representative Gonzales, who cosponsored the legislation with Representative Beck. “Today we successfully renewed and expanded a program encouraging investment and job creating ventures.”
Among other changes, House Bill 511:
·         Eliminates the Industrial Technology and Enterprise Advisory Council, which was created to approve tax credits for investments in development and technology, and transfers the duties of the council to the Third Frontier Commission
·         Increases the maximum amount of investment tax credits that can be issued from $45 million to $51 million
·         Increases the annual limit on venture capital loan loss tax credits available to people who lose money after lending to the state’s venture capital loan program
·         Increases the amount of principal and interest payments that may be paid to lenders each year
·         Relaxes limits on how much the program’s investments may be concentrated in two or more venture capital funds that are under common management
·         Adds requirements to the selection criteria in order for investment funds
·         Specifies that the investment fund administering the program, as well as any fund managers employed by the administrator, must have a “significant presence” in Ohio in order to administer the program
HB 511, one of 10 bills included in the Mid-Biennium Review, passed the House 91-5. It will now be sent to the Ohio Senate for further consideration.