OH HB478

Eliminates the requirement that taxpayers must receive a federal New Markets tax credit to qualify for Ohio's state New Markets tax credit.

Changes the applicable percentage credit schedule from 0% for the first two years to 5% for the first three years, and from 8% to 6% for the following four years, allowing earlier credit claims.

Removes the exclusion that prevented investments in low-income community businesses deriving 15% or more of annual revenue from rental or sale of real property, allowing such investments to qualify for the credit.

Removes the requirement that qualified community development entities must designate investments as qualified equity investments for both federal section 45D and state purposes.

Establishes the new markets tax credit operating fund and authorizes the director of development services to charge application fees to administer the tax credit program.