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Qualified Energy Project Tax Exemption

Contact Information:

John Werkman
Tax Incentives Manager
(614) 466-6791
John.Werkman@development.ohio.gov

Overview

The Qualified Energy Project Tax Exemption provides owners (or lessees) of renewable energy projects with an exemption from the public utility tangible personal property tax.

For Whom

In order to qualify, the owner or lessee subject to sale leaseback transaction must apply to Development Services Agency on or before December 31, 2022 for renewable energy projects.

Large projects (above 20 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

Benefits

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.

How to Apply

Potential applicants should review the revised rules to determine whether they should file an application to become a Qualified Energy Project. The revised Ohio Revised Code and the Ohio Administrative Code can be found under “Program Information” to the left. For a copy of the application click here. Please note, potential applicants with questions regarding the financial impact of a tax exemption should consult a private professional tax adviser.