State Representative Daniels Introduces Legislation to Strengthen Ohio's Research and Innovation Economy

COLUMBUS, OH – State Representative Daniels (R-New Franklin) today announced the introduction of legislation aimed at strengthening Ohio’s economy by expanding tax incentives for businesses investing in research, development, and innovation across the state.

The legislation would double Ohio’s existing research and development (R&D) tax credit from 7% to 14%, encouraging businesses to expand operations, invest in new technologies, and create new opportunities for Ohio workers.

“Where research and development happens, jobs follow. Ohio’s current R&D credit is too modest to factor into where companies decide to innovate, so it isn’t doing the job it was meant to do,” said Rep. Daniels. “This bill doubles the credit and makes it easier for growing companies to use, which turns it into a real competitive advantage. When companies choose Ohio for their research, the good-paying jobs and community investment come with it.”

Specifically, the legislation would:

• Double the R&D tax credit from 7% to 14% for qualifying research expenses that exceed a business’s average annual research expenses over the previous three years.
• Extend the tax credit carryforward period from seven years to 20 years, providing businesses greater flexibility to utilize earned credits.
• Make the tax credit transferable, giving businesses additional opportunities to realize the value of their research investments.
• Establish a tax credit certification process through the Ohio Department of Taxation to provide greater oversight and accountability.

The proposed changes would apply to qualifying research expenses under both Ohio’s Commercial Activity Tax and Financial Institutions Tax.