Tax Incentives Specialist
Office of Strategic Business Investments
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 Development Services Agency on or before December 31, 2015 for renewable energy projects and before December 31, 2017 for clean coal, advanced nuclear, and cogeneration projects.
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
If the project meets the requirements of the exemption, then the Director of the Ohio Development Services Agency 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 Development Services Agency with project information on an annual basis.
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." Please note, potential applicants with questions regarding the financial impact of a tax exemption should consult a private professional tax adviser.