You may recall hearing about the InvestOhio tax credit program which began last November. Through the program, individuals who invest up to $10 million in eligible small businesses may receive a 10 percent income tax credit if the investment is held for two years.
Starting on September 28, 2012 there will be a few changes to the InvestOhio application and qualification process. Below is a list of the most important changes:
- Any application submitted on or after September 28, 2012 will be subject to an application fee the greater of $100 or 0.1% of the investment amount indicated on the application. Therefore for investment amounts up to $100,000 there will be a $100 application fee. Investments over $100,000 will pay a 0.1% fee.
- The Ohio Small Business that the investor is investing in must contain an active trade or business (on the date of the investment)
- The Ohio Small Business must be registered with the Ohio Secretary of State, if applicable, and in good standing (on the date of the investment and 6 months after)
- Related and affiliated entities now count toward the “small” business requirements
- Investments that qualify for other state credits cannot also be counted toward the Invest Ohio credit
- There will be a new annual filing showing the number of jobs created or retained in Ohio on account of the investment (if any) – Ohio is still working on the details of this filing requirement
- The eligibility tests (assets, revenue, employees, good standing SOS) must be met both at the time the investment is made and 6 months after the investment as well
- The credit is no longer on a first come first serve based on application date. The credits will be issued based on the completion of the application process. The application is considered complete after the 6 month period following the investment date. Therefore if you were application 0001 when the program went live and your investment date is May 20, 2013 you could now actually be last in line as the 6 month period post investment date will fall at the end of the possible completion dates.
Click here to visit the Ohio Department of Development’s website to learn more about the InvestOhio credit.
Wondering if you qualify for the InvestOhio tax credit program? Contact Amy Gibson, in our Cleveland Tax Planning & Preparation Services by leaving a message below, or by calling