On July 4, 2023, Governor Mike DeWine signed Ohio House Bill 33, which creates a new Ohio low-income housing tax credit program (the “Ohio Credit”). The Ohio Credit will be codified under Section 175.16 of the Ohio Revised Code. The Executive Director of the Ohio Housing Finance Agency (the “Director”) may reserve the Ohio Credit for a qualified low-income building project that is located in Ohio, qualifies for an allocation of Federal low-income housing tax credits (“Federal Credits”), and is placed in service on or after July 1, 2023. The Ohio Credit cannot be reserved after June 30, 2027.
The aggregate amount of Ohio Credits issued in a fiscal year cannot exceed One Hundred Million Dollars ($100,000,000), plus unused amounts from prior years. The combined Ohio Credit and Federal Credit cannot exceed the funding necessary to ensure the financial feasibility of a qualified project.
The Director will send written notice of an Ohio Credit reservation to each project owner. The reservation will state the aggregate Ohio Credit reserved for all years of the credit period (which generally follows the 10 year Federal credit period), except that the annual Ohio Credit amount will equal one-tenth of the reserved Ohio Credit amount. The Director will later issue an eligibility certificate after the project is completed, to permit equity owners to claim the Ohio Credit on Ohio tax returns filed for (i) individual, trust, and estate income tax under § 5747.02; (ii) domestic and foreign insurance premiums tax (including retaliatory tax) under §§ 5729.03, 5725.18, and 5729.06; and (iii) financial institutions tax § 5726.02.
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