Small Business Owners May Be Eligible For Income Tax Credits Up to $1,000,000

The newly-enacted laws, referred to as InvestOhio, authorize a nonrefundable credit up to $1,000,000 for qualifying investments in specified small business enterprises operating in Ohio. Any unused credits may be carried forward up to seven (7) additional succeeding taxable years. The qualifying investment must be made after July 1, 2011 to acquire an equity interest in a small business enterprise to be eligible. Corporations, pass-through entities, or other persons are eligible if the small business enterprise can satisfy all of the following requirements: (1) Either the total assets do not exceed $50,000,000 or annual sales do not exceed $10,000,000 at the time of the qualifying investment; (2) the small business enterprise employs least 50 full-time equivalent employees (or more than one half of its total full-time equivalent employees) that are in Ohio and subject to withholding of Ohio income tax; (3) Within 6 months of the investment, the enterprise invests or incurs cost for one or more of the following in an amount at least equal to the amount of the qualifying investment: (1) Tangible personal property (not motor vehicles) used in business and located in Ohio; (2) Motor vehicles purchased, registered, and used primarily for business purposes in Ohio; (3) Real property physically located and used in business in Ohio; (4) Intangible personal property (includes patents, copyrights, trademarks, service marks, or licenses) used in business primarily in Ohio; (5) Compensation for newly-hired or retained employees (excluding increased compensation for owners, officers, or managers) for who the enterprise is required to withhold Ohio income tax. To find out how this tax credit may benefit you or your company and for more details or information regarding InvestOhio, please contact us at (216) 621-8484.