Ohio taxpayers who invest in a qualifying Ohio small business can qualify for a 10 percent credit against their Ohio income tax if they meet certain requirements – and they can now apply for the credit.
InvestOhio is tax credit program available to individuals who pay Ohio personal income tax, who make an equity investment in a qualifying Ohio business, and the business in turn invests that same amount in equipment, property or wages. The taxpayer must hold the investment for two years to qualify for the credit, after which he or she will receive a 10 percent nonrefundable income tax credit. The business must similarly retain the property it purchased from the cash infusion for the entire two year holding period.
The InvestOhio program has a total of $100 million in tax credits available for the two-year period ending June 30, 2013. Applications to receive the credit were accepted beginning on Monday, November 14, on the Ohio Business Gateway website. Both the business and the investor will be required to register.
Since the credit is available to taxpayers on a first-come, first-served basis. No one knows how soon the credit will be exhausted – so you’re thinking about applying for the credit, you’ll want to apply sooner rather than later.
Although you can complete the application process on your own, the application does require several steps. Your tax professional can assist you with the application process and help ensure that you have followed all the steps properly.
The InvestOhio program is being administered by the Ohio Department of Development in collaboration with the Ohio Department of Taxation. It is expected to generate at least $1 billion in new private investment in Ohio small businesses by 2013.
If you would like to take advantage of the new InvestOhio Tax Credit, then contact us now! For additional information, please contact Joseph Popp, JD, LLM at 614.889.8725, or click here to email Joseph. In a brief consultation he can assess your situation and determine the best way to move forward.
For additional information, please visit this FAQ at: http://www.development.ohio.gov/InvestOhio/Documents/InvestOhioFAQ110411.pdf.