Ohio Governor Mike DeWine has added a state tax incentive to the 2020-2021 proposed budget to attract investments to Ohio’s opportunity zones. The announcement was made during a business roundtable event organized by the University of Akron.
The opportunity zone program, which was created by federal legislation in 2017, provides federal tax incentives for investments in low-income census tracts that have been designated as qualified opportunity zones.
Under the governor’s proposal, Ohio would provide a 10 percent, non-refundable income tax credit to those who invest in the state’s opportunity zones. The state currently has 320 opportunity zones, which were identified by local communities as having high potential for new investment, development, and job creation.
“Communities nationwide are competing for private investment in their opportunity zones, and we want to give Ohio communities the edge,” said Governor DeWine. “This will make it more attractive for investors to direct their investments here.”
According to the governor’s office, the proposal is “budget-neutral,” as it relies on existing tax credit availability to create the new incentive.