Community Development Entities Can Now Apply for Latest Round of State New Markets Tax Credits

(COLUMBUS, Ohio) -The Ohio Department of Development today announced that applications are now open for the latest round of tax credits aimed at spurring economic investment in Ohio's underserved communities.

The Ohio New Markets Tax Credit Program provides a tax credit to Community Development Entities to incentivize and attract private investment in economically distressed communities. Up to $10 million in tax credits are available in what is the 14th round of the program.

"The backbone of Ohio's ongoing economic success story is great expansion of small businesses and large corporations," said Lydia Mihalik, director of the Department of Development. "By encouraging investment in underserved areas, we are ensuring that every corner of the state has equal access to the resources fueling community growth now and well into the future."

CDEs serving Ohio that can prove their award or anticipated award of a federal new market tax credit are eligible to apply Investors provide cash to a CDE in exchange for a tax credit (39 percent of their investment, claimed over seven years). CDEs then invest the cash into projects in low-income communities.

Allocation decisions will be based on a competitive process, including the proposed investment in Ohio's small and minority businesses, job creation and retention, community reinvestment, diversity of financial options, potential brownfield redevelopment, identification of shovel-ready projects, and geographical distribution.

The federal New Market Tax Credit (NMTC) program was established in 2000, with the Ohio program following in 2011 to incentivize additional investment in the state. Since 2011, Development has awarded $130 million to 22 CDEs, generating 117 projects across the state.

For more information, and to find the application, visit the program website. Applications for the program must be received by 4 p.m. EST Monday, Nov. 4, 2024. Award announcements will occur in December 2024 following federal NMTC announcements.

Questions regarding the program can be sent to [email protected].

The Ohio Department of Development empowers communities to succeed by investing in Ohio's people, places, and businesses. Learn more about our work at development.ohio.gov.