State of Ohio Tax Incentives, Loan & Grant Programs
State Tax Credits
Historic Tax Credits — The Ohio Historic Preservation Tax Credit Program provides a tax credit in order to leverage the private redevelopment of historic buildings. The program is highly competitive and receives applications bi-annually in March and September.
The Ohio New Markets Tax Credit Program — The Ohio New Markets Tax Credit Program helps to finance business investments in low-income communities by providing investors with state tax credits in exchange for delivering below-market-rate investment options to Ohio businesses. Investors receive a 39% tax credit spread over seven years if they make an investment in a qualified low-income community business. Community Development Entities (CDEs) apply to the program for allocation authority, and work with investors to make qualified low-income community investments. The attractiveness of the tax credit helps to spark revitalization in communities of all types and sizes.
State Loan & Grant Programs
Ohio 3rd Frontier — To accelerate the creation and growth of investable and scalable technology and tech-enabled companies, the Ohio Third Frontier provides access to essential business assistance, capital and talent resources. The Ohio Third Frontier is a thriving statewide community of expert people and organizations dedicated to increasing the odds of success of your entrepreneurial enterprise. For more information on 3rd Frontier visit https://www.development.ohio.gov/bs_thirdfrontier/currentprograms.htm or contact Julie Needs, SOD Center Executive Director at 330-337-7669.
166 Direct Loan — The 166 Direct Loan gives eligible businesses loans for land and building acquisition, construction, expansion or renovation, and equipment purchases. The program provides low-interest loans up to 40 percent of the cost not to exceed $1.5 million.
ODSA Research & Development Investment Loan — The Research and Development Investment Loan Fund provides loan financing ranging from $500,000 to $5 million for projects primarily engaging in R&D activity. The loans have fixed rates and other loan terms similar to those of commercial bank financing. Companies receive a dollar-for-dollar, nonrefundable Ohio commercial activity tax credit for principal and interest payments made during the year up to $150,000 during the loan term.
Ohio Enterprise Bond Fund — The Ohio Enterprise Bond Fund offers revenue bond financing through an S&P-rated fund, whereby proceeds from the sale of bonds are loaned to companies for fixed-rate, long-term capital asset financing. Rates are market-driven and fixed prior to funding. Loan terms range from seven to 10 years for equipment and 15 to 20 years for real estate. Up to $10 million in financing is available through the program.
Innovation Ohio Loan Fund — The Innovation Ohio Loan Fund provides loans for acquisition, construction and related capital costs of technology, facilities and equipment purchases. The fund was created to help Ohio companies develop next-generation products and services within the state’s key industry sectors. Loans range from $500,000 to $1.5 million and can cover up to 75 percent of the project cost.
Roadwork Development (629) — funds are available for public roadway improvements, including engineering and design costs. Funds are available for projects primarily involving manufacturing, research and development, high technology, corporate headquarters, and distribution activity. Projects must typically create or retain jobs. Grants are usually provided to a local jurisdiction and require local participation.
For more information on these programs, contact Julie Needs, SOD Center Executive Director at 330-337-7669 or execdir@sodcenter.com