Hillyer Introduces Community Investor Tax Credit Act

COLUMBUS – State Representative Brett Hillyer (R-Uhrichsville) last week introduced House Bill 470, the Community Investor Tax Credit Act. The goal of the bill is to expand real estate investment opportunities for the average Ohioan while providing capital to spur much-needed new housing developments across the state.

The bill authorizes developers of multi-family residential housing developments in Ohio that derive at least 1% of their funding from non-accredited Ohio investors to apply to the Director of Development for a nonrefundable income tax credit equal to a portion of project development costs.

A non-accredited investor (aka “community investor”) is any investor who does not meet the income or net worth requirements set out by the U.S. Securities and Exchange Commission (SEC) to be considered an accredited investor. Specifically, non-accredited investors are anyone making less than $200,000 per year that also has a total net worth of less than $1 million. 

Historically, most individuals did not have access to certain investment opportunities unless they met the minimum net worth requirements, regardless of their own personal financial sophistication or knowledge. Due to an SEC amendment in August 2020, individual investors can now access those opportunities.

“It is my hope that this legislation will incentivize developers to fund development projects with non-accredited investors granting all Ohioans the ability to invest in large scale development projects previously only accessible to the wealthiest Ohioans,” said Hillyer.