InvestOhio – a New Ohio Resource for Small Business and Investors
InvestOhio is a new tool designed to help qualified Ohio companies gain the capital they need to be successful and to create jobs. Investors putting up to $10 million into an eligible Ohio small business may receive a 10 percent income tax credit after the end of the holding period.
It is believed that this $100 million tax credit will leverage a minimum of $1 billion in private investment for Ohio companies over the next two years. This should allow Ohio to attract more business to the state, create jobs, and improve its competitive position.
Requirements to be a qualified company:
- Based in Ohio
- Either less than $50 million in assets or less than $10 million in annual sales
- Have at least 50 employees or a majority of employees in Ohio
- Must meet any other requirements established by the Ohio Department of Development and the Department of Taxation
- Must apply and register the investment with the Ohio Department of Development to be issued an InvestOhio certificate
- The investment must be held for two years if made before June 30, 2013 or for five years after that date
- Company must invest an amount equal to the taxpayer’s investment within six months of receiving it.
At this writing, the Ohio Department of Development is still evaluating InvestOhio. Watch this space for updates on forms and additional requirements.