Rep. Dorothy Pelanda (R, Marysville) and Rep. Nan Baker (R, Westlake) applauded the passage of House Bill 135 through the Ohio House of Representatives, which authorizes a nonrefundable tax credit for the rehabilitation of a vacant building, for the purposes of possibly turning the once-vacant facility into a new business.
This nonrefundable tax credit would be against the income tax, financial institutions tax, severance tax, and domestic and foreign insurance taxes. The credit can only be utilized towards the rehabilitation of a location that has been designated as an “industrial recovery site.” H.B. 135 specifies that the amount of credit is determined by the qualified investment of the owner along with the age of the facility.
“This legislation promotes creativity and public/private partnerships in restoring economic vitality to many areas of our state,” said Rep. Pelanda, who is the bill’s sponsor along with Rep. Jack Cera (D, Bellaire).
The tax credit will be regulated by the Development Services Agency, who will review tax credit qualifications including the economic distress of the community surrounding the building and the intended interest in improving the vacant industrial site. The Director of the Development Services Agency is also required to submit an annual report to the Governor and General Assembly detailing the status of the tax credits and the rehabilitation of each industrial recovery site.
“It was a pleasure to have heard testimony on HB 135 in support of redevelopment of vacant industrial sites,” said Rep. Baker, who serves as chair of the Economic Development & Regulatory Reform Committee. “This is another innovative tool to bring employment opportunities for Ohioans and revenue to our local governments. As I continue to say, it’s all about jobs!”
H.B. 135 will now move to the Senate for consideration.