Governor Ted Strickland and the Ohio Department of Development announced that the Department is now accepting applications for the newly created Ohio New Markets Tax Credit Program:
The New Markets Tax Credit is a critical part of our plan to create Ohio jobs in communities that have traditionally been in need of business investments,” Strickland said. “When we make it easier to make business investments in Ohio, businesses find it easier to create jobs for hard-working Ohioans.”
The program idea was first introduced by the Speaker of the House Armond Budish.
“We are one of the first states to enact this business incentive, which makes us more competitive nationwide in attracting business. This edge is important as we continue our recovery from the national recession,” said Speaker Budish. “The credit offers an incentive for investment in new and growing companies that will not only generate jobs but also add to the vitality of the community, fostering an environment for ever greater business growth. The New Markets Tax Credit is just part of the extensive job creation initiative in the Ohio House that includes the Investment Technology Tax Credit, adding $100 million to the Venture Capital Authority and expanding the Third Frontier Program.”
The Ohio New Markets Tax Credit program is one of the first state programs of its kind in the country, and leverages the successful Federal New Markets Tax Credit program to attract additional investment to Ohio. The federal program has created more than $26 billion in investments through the New Markets Tax Credit program and has awarded more than $1 billion to Ohio-based Community Development Entities.
Federal data shows that for every dollar of foregone tax revenues under the New Market Tax Credit, $12 of private investment is leveraged in distressed communities. Ohio organizations that have been allocated federal New Markets Tax Credits range from large financial institutions to small community development corporations.
While John Kasich worships at the Alter of Privatization, Governor Strickland and Speaker Budish have enacted policies that target economic development where it’s needed the most—in our low-income areas.
John Kasich’s plan will create a system that encourages the State to invest in low hanging fruit so that it can take credit for naturally occurring development so that it can pad its results so its executives can earn their bonuses.
I much prefer this approach—targeted tax credits that focus on economic development in the areas of Ohio where economic development would not otherwise occur.