OH HB437

Authorizes a nonrefundable tax credit for businesses that lease or purchase commercial space in Ohio that was unoccupied for at least six months immediately preceding the lease or purchase date.

Credit is available for the taxable year including the lease/purchase date and the four subsequent taxable years, calculated as current year income tax withholdings minus prior year withholdings multiplied by the payroll inflation factor.

Businesses must employ at least 50% of their employees in Ohio at the vacant facility to qualify; a taxpayer may only claim this credit once and loses eligibility for current and future years if employment threshold drops below 50% unless employees relocate to another qualifying vacant facility.

Excess credits not used in the current year may be carried forward for up to three additional taxable years; credit is claimed in a specified order after other existing credits under Ohio tax law.

Establishes parallel provisions for businesses subject to the commercial activity tax (CAT), with similar eligibility requirements and a five-year credit period for calendar years instead of taxable years.