OH SB327

Divides the New Markets Tax Credit program into two separate programs: the New Markets Revitalization Tax Credit program (capped at $15 million annually) and the New Markets Expansion Tax Credit program (capped at $35 million annually).

The Revitalization program provides nonrefundable tax credits to insurance companies, foreign insurance companies, and financial institutions holding qualified equity investments with applicable percentages of 5% for the first three credit allowance dates and 6% for the following four dates.

The Expansion program provides nonrefundable tax credits with applicable percentages of 0% for the first two credit allowance dates, 7% for the third date, and 8% for the following four dates, and limits qualified low-income community investments in any single business to $10 million.

Requires qualified community development entities to apply to the director of development services for certification of proposed qualified equity investments before credits may be claimed, with a $5,000 nonrefundable application fee.

Establishes recapture provisions requiring repayment of credits if federal tax credits are recaptured, investments are redeemed early, or required investment levels are not maintained, with the director of development services given authority to determine recovery amounts.