OH HB189

Exempts sales of qualifying firearms and ammunition from Ohio sales and use tax, effective the first day of the first month after the bill's effective date.

Defines "qualifying firearm" as portable firearms (rifles, shotguns, pistols, revolvers) designed for single-person operation, excluding firearms with barrels larger than fifty caliber (except shotguns larger than ten gauge).

Establishes a nonrefundable tax credit for small arms and ammunition manufacturers with qualified investments of at least $2 million in new or expanded facilities placed in service on or after July 1, 2024.

Credit percentage approximates the percentage of taxes attributable to the manufacturer's qualified investment, calculated using payroll methods or alternative methods approved by the tax credit authority.

Allows tax credit certificates to be claimed over a 19-year period, with annual certifications required for nine years, and includes provisions for transferring certificates if the facility ownership changes.