On October 5, Senator Kirk Schuring (R-Canton) presented Senate Bill 225 to the Senate Finance Committee. Senator Schuring’s legislation proposes to make significant, though temporary, changes to the Ohio Historic Preservation Tax Credit, as well as to the Ohio Opportunity Zone Tax Credit.
The Ohio Historic Preservation Tax Credit Program (HPTC) provides a tax credit in order to leverage the private redevelopment of historic buildings. The program is highly competitive and receives applications twice a year, in March and September.
Under the legislation:
The HPTC aggregate cap would increase to $120 million per year in Fiscal Years (FY) 2022 and 2023, double the existing limit of $60 million per year
The Project cap could also double, from $5 million to $10 million
The tax credit for smaller municipalities (those under 71,000 under the legislation) would increase from 25% to 35%, ensuring that smaller communities will get a fair share of projects under the program. Projects that were approved in FY2021 can automatically forgo their previous credit and convert it to the enhanced version in the bill, provided that the project has not yet started.
The proposal maintains a provision in the HPTC law that requires the project generate a net-revenue gain in both state and local taxes.
Since its inception, tax credits have been approved for 525 projects to rehabilitate over 749 historic buildings in 72 different Ohio communities. The program is projected to leverage more than $6.8 billion in private development funding and federal tax credits directly through the rehabilitation projects. Owners and long-term lessees of historically designated buildings who undertake a rehabilitation project may apply for the HPTC.
A building is eligible if:
It is individually listed on the National Register of Historic Places
Contributes to a National Register Historic District, National Park Service Certified Historic District, or Certified Local Government historic district
Is listed as a local landmark by a Certified Local Government
Properties that will be used as a single-family residence or multi-family residential condominiums are not eligible.
The bill also proposes to double the amount of tax credits available under the Ohio Opportunity Zone Tax Credit from $50 million per year to $100 million per year.
Greater Ohio Policy Center (GOPC) commends Sen. Schuring for the introduction of SB225 and will be providing testimony in support of enactment of the bill when the Senate Finance Committee resumes hearings on the bill. Be sure to follow our Bill Tracker for regular updates about the progress of SB225.