H.B. No. 174 - Income Tax Deduction for Venture Capital Gains

• Creates "Ohio venture capital operating company" certification for venture capital firms managing at least $50 million in assets with two-thirds of managing partners as Ohio residents, certified by the Director of Development Services.

• Allows deduction of 100% of capital gains from investments in Ohio businesses and 50% of capital gains from other business investments for investors holding qualifying interests in certified Ohio venture capital operating companies.

• Requires certified companies to file annual reports (January-February) detailing capital gains, investments in Ohio businesses, and distributed equity interests, with the Director issuing certificates to qualifying companies for investor distribution.

• Establishes certification validity conditions and revocation procedures, allowing companies to contest revocation decisions within 30 days based on submitted documentation.

• Amends disclosure rules to allow Department of Taxation to share information with the Director of Development Services for evaluating venture capital deductions, with restrictions on further disclosure by the development agency.