Ohio State Tax Blog

Current developments, commentary and helpful resources regarding Ohio state and multistate taxes from attorneys Steven A. Dimengo and Richard Fry. We concentrate on all aspects of Ohio state taxation, including sales/use tax, income tax and commercial activity tax, from audits to appeals before the Ohio Board of Tax Appeals and Ohio Supreme Court, and have significant experience in multistate tax planning. Contact us.

Home Archives Ohio Personal Income Tax InvestOhio - Personal Income Tax Credit for Investors in Ohio Small Businesses
InvestOhio - Personal Income Tax Credit for Investors in Ohio Small Businesses PDF Print E-mail
Monday, 01 August 2011 13:40

Added at the last minute, the recently enacted Ohio Budget Bill (Am. Sub. H.B. 153) included a tax credit for individuals against their Ohio personal income taxes for investments in qualifying Ohio small business enterprises. An eligible small business enterprises must have: (1) less than $50 million in total assets or less than $10 in annual sales; and (2) 50 full-time equivalent Ohio based employees, or half of all its full-time equivalent employees located in Ohio. The credit equals 10% of the qualifying investment, limited to $1 million per individual investor ($2 million for spouses filing jointly).

 

An eligible investor is an individual, estate or trust subject to Ohio personal income tax making a cash investment in a qualifying small business enterprise. Within six months of the investment, the small business enterprise must invest in or incur the cost of tangible personal property, motor vehicles, real property or intangible personal property used in business primarily in Ohio, or compensation for newly-hired or retained employees for whom the enterprise must withhold Ohio income tax (excluding increased compensation for owners, officers and managers). The investor may not sell or dispose of the investment until the end of the applicable holding period, which is two years for investments made between July 1, 2011 and June 30, 2013 and five years for investments made on or after July 1, 2013.

 

The nonrefundable credit is claimed in the tax year that includes the last day of the holding period and may be carried forward up to seven years. To qualify for the InvestOhio small business credit, the investor (or the qualifying enterprise on behalf of the investor) must apply to the Ohio Director of Development for a small business investment certificate. Certificates will be issued in the order in which the applications are received.

 

For more information on whether you may qualify for the InvestOhio small business credit, or how to apply for the credit, please contact us.

Last Updated on Monday, 01 August 2011 13:47
 
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Ohio State Tax Attorney, Steven A. Dimengo

Steve Dimengo is recognized as one of the leading tax attorneys in Ohio, where he has been serving clients for over twenty-five years. Full Profile. Cases. Email.

 

Ohio State Tax Attorney, Richard B. Fry III

Richard Fry is an Associate focusing on business law, specifically taxation. He holds a J.D. and Masters of Taxation from the University of Akron. Full Profile. Email.

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Steve will be speaking at the Lorman Sales and Use Tax in Ohio Seminar to be held in Akron on January 21, 2014.  He will be discussing Manufacturing Exemptions, Transfer of Business and Personal Liability for Sales tax.  Click here to see more (and register).

 

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