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Qualified Energy Project Tax Exemption

The Qualified Energy Project Tax Exemption provides owners (or lessees) of renewable, clean coal, advanced nuclear, and cogeneration energy projects with an exemption from the public utility tangible personal property tax. In order to qualify, the owner or lessee subject to sale leaseback transaction must apply to the Department of Development on or before December 31, 2011 for renewable energy projects and before December 31, 2013 for clean coal, advanced nuclear, and cogeneration projects. If the project meets the requirements of the exemption, then the Director of Development will certify the project as a “Qualify Energy Project.” Qualified Energy Projects will remain exempt from taxation so long as the project is completed within the statutory deadlines, meets the “Ohio Jobs Requirement,” and continues to meet several ongoing obligations including providing the Ohio Department of Development with project information on an annual basis.

Large projects (above 5 mega-watts) require approval from each Board of County Commissioners in which the project is located. In addition, these large projects require agreements to train and equip local emergency responders, as well as repair roadway infrastructure following the construction of the project. Small projects (less than 250 kilowatts) are exempt as a matter of law pursuant to Ohio Revised Code Section 5709.53.

Potential applicants should review the application instructions and answer the preliminary questions to determine whether they should file an application to become a "Qualified Energy Project." Potential applicants with questions regarding the application and exemption process should contact the Office of Grants and Tax Incentives at (614) 466-2317. Potential applicants with questions regarding the financial impact of a tax exemption should consult a private professional tax adviser. Ohio Department of Development employees are not authorized to provide legal, accounting, tax, or other professional services to applicants.

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