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OH HB558
Bill
Status
5/23/2012
Primary Sponsor
Peter Beck
Click for details
AI Summary
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Changes the applicable percentage for New Markets tax credits from zero percent for the first two credit allowance dates to five percent for each of the first three credit allowance dates, and from seven percent to six percent for the fourth credit allowance date and following dates.
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Removes the exclusion that prevented investments in low-income community businesses deriving 15% or more of annual revenue from renting or selling real estate, allowing such investments to now qualify for the tax credit.
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Eliminates the "adjusted purchase price" calculation requirement, instead basing the credit directly on qualified low-income community investments made by the community development entity.
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Permits investors to identify qualifying equity investments from any qualified community development entity, rather than limiting selections to specific entities.
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Clarifies that the maximum allowable New Markets tax credit for each investor is $1 million and caps total state qualified low-income community investments at $2,564,103.
Legislative Description
To make various changes to the administration of the New Markets tax credit, including the acceleration of the receipt of New Markets tax credit installments, allowing community development entities to make credit-eligible investments in a low-income community business that derives 15% or more of its annual revenue from renting or selling real estate, eliminating the requirement to calculate adjusted purchase price of investments in calculating the amount of the credit, permitting entities to identify qualifying equity investments from any community development entity, and clarifying that the maximum allowable credit for each investor is $1 million.
New Markets tax credit-administration-various changes
Last Action
To Ways & Means
5/23/2012