Tag Archives: multistate tax

Multistate Tax: InvestOhio offers up to $100 million in tax credits

The State of Ohio is now offering a non-refundable personal income tax credit for investing in small businesses in Ohio. Interested investors must act quickly for a share of the limited amount of tax credits, which will be awarded on a first come, first served basis. Registration begins Monday, November 14, 2011.

To encourage investment in the more than 900,000 small businesses in Ohio, the State has launched InvestOhio, a program which could allow a non-refundable personal income tax credit of 10 percent to investors who acquire an ownership interest in an Ohio small business. To be eligible, the Ohio-based business in which the investor invests must have no more than $50 million in assets or no more than $10 million in annual sales. The business must also have at least 50 Ohio-based employees that are subject to Ohio personal income tax withholding OR have more than half of its employees be Ohio-based employees that are subject to Ohio personal income tax withholding. The small business must reinvest the cash that was invested (into one of five categories of allowable expenses) within six months. Furthermore, the investor must retain his or her ownership interest for two years before claiming the tax credit. (We issued an alert on this subject in September 2011, InvestOhio: New Ohio tax credit enacted to encourage investment in Ohio).

Read full article