To provide an incentive for investors to fund businesses in low-income communities. These "new markets" are traditionally underserved by private sector capital. This lack of capital stifles entrepreneurs and impedes growth, despite promising opportunities for investment and business expansion.
The program awards a tax credit to Community Development Entities (CDE) serving Ohio. The CDE serves as an intermediary between investors and projects. The investor provides cash to a CDE in exchange for the tax credit (39 percent of their investment claimed over seven years). The CDE uses the cash for projects in low-income communities.
Tax credit allocation authority is awarded to Community Development Entities, who sell the credit to investors and use that money for high-impact projects.
Office of Strategic Business Investments, John Werkman, (614) 466-6791
Maximum tax credit per project is $1 million. Up to $10 million in tax credits is available to be claimed per fiscal year.
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