Program Overview

The Transformational Mixed-Use Development Program provides a tax credit against Development costs incurred during the construction of a project that will be a catalyst for future development in its area.

A Development includes new construction and/or improvement of vacant buildings that will have a major economic impact on the site and the surrounding area. This Development must be a combination of retail, office, residential, recreation, structured parking, and other similar uses into one mixed-use Development.

Projects may be either the entire Development or a phase or contiguous phases within the Development.

Eligible applications will be divided based on location of the Development, resulting in two funding groups: “major city” and “general”. A Major City Project is located either within a major city, as defined in program guidelines, or within a ten-mile radius of the corporate boundary of the city. Developments that do not meet these location criteria will be considered General Projects.

Fiscal Year 2023

The application period has closed.

Fiscal Year 2023 Application Documents

• Program Guidelines (PDF)
• Application Guidance (PDF)
• Application Instructions (PDF)
• (UPDATED 6/9) Economic Impact Statement Framework (PDF)
• (NEW) EIS Addendum - Construction Impacts
• Application Best Practices (PDF)
• (UPDATED 6/28) Frequently Asked Questions (PDF)

Applicant Eligibility

Eligible applicants include either:

• Property owner(s) of the parcels of land within the project and/or
• Insurance company(ies) that have contributed capital to be used in the planning or construction of the project.
• Any owner(s) of the property within the project must be a party to the application to receive a portion of any awarded tax credit.
• Insurance companies may file a separate application for their contributed capital to receive a tax credit against the contribution.

Development and Project Eligibility

• The Development must meet specific square footage building requirements, with thresholds based on the location category (major city or general) of the Development.
• For Developments that are in the major city location category, the total estimated expenditures must be at least $50 million.
• The project must include at least two mixed uses, or at least three mixed uses if one of the uses is a parking structure.
• Increased tax collections from real property, income, lodging and sales taxes as a result of the project within the completion period must be greater than 10% of the estimated development costs.
• The tax credit must be a major factor in the completion of the project.

Benefits

• For fiscal years 2022, 2023, 2024 and 2025, $100 million is available in estimated tax credits per year.
• Not more than $80 million of estimated tax credits in each fiscal year may be approved for Major City Projects.
• Not more than $40 million of estimated tax credits may be approved for any Development.
• For property owners, the tax credit is 10% of the estimated development costs for the project as defined in the application.
• For insurance companies, the tax credit is 10% of the companies’ capital contribution to the project as defined in the application.
• Issuance of the tax credit will occur after the project is completed and certified to the Tax Credit Authority. Tax credits will either be issued as the project reaches tax collection thresholds or in a lump sum if the applicant qualifies for the alternative method of approval.
• The tax credit can be claimed under Section 5725.35 or 5729.18 of the Ohio Revised Code.
• A property owner awarded a tax credit may sell or transfer that credit to one or more persons to raise capital for the project. The tax credit may be divided and sold to multiple recipients but is only allowed to be transferred a single time – from the property owner to a recipient.

Application Process

• Application rounds will be administered once per year for each fiscal year the tax credit is funded.
• The application will be available through the Ohio Department of Development’s application portal and must be filed electronically. Updates will be posted to the website once the application period is determined. Application requirements can be found in the program guidelines.
• The applications will be competitively scored and ranked in order from highest to lowest score for each location category (major city and general). Tax credit allocation will begin with the highest score in each category and continue until all available tax credits for the fiscal year are allocated.
• Tax credits will be preliminarily approved by the Ohio Tax Credit Authority.