OH HB219

Creates a new catalytic project tax credit program allowing corporations and pass-through entities to receive nonrefundable tax credits for contributions of at least $5,000 to economic development projects administered by local governments or certified nonprofit organizations.

Establishes 50-60% tax credit rates depending on project location: 60% for rural catalytic projects (in counties with populations under 125,000) and 50% for urban catalytic projects, with credits capped at $500,000 per contribution and $5 million annually statewide.

Requires Development Services Agency approval of project contributions within 30 days and collection of application fees (up to 10% of estimated credit), with final tax credit certificates issued only after project completion reports confirm successful project delivery within two years.

Allows tax credits to be claimed against multiple Ohio tax types including corporate franchise tax, bank tax, financial institutions tax, sales and use tax, pass-through entity tax, and petroleum activity tax, with carryforward of excess credits up to five years.

Implements fraud penalties including potential revocation of remaining tax credits and liability for recapture of already-claimed credits if false information is discovered, with no appeal process for the agency's approval decisions.