SB 124 Summary

• Exempts sales of qualifying firearms and ammunition from Ohio sales and use tax, defining qualifying firearms as portable firearms (rifles, shotguns, pistols, revolvers) designed for single-person operation and excluding certain large-caliber weapons.

• Establishes a nonrefundable tax credit for small arms and ammunition manufacturers with investments of $2 million or more in new or expanded manufacturing facilities in Ohio, available for up to 19 years.

• Requires manufacturers to apply to the tax credit authority by March 1st following the investment year, with credit amounts based on federal excise taxes paid on firearms and ammunition manufactured at qualified facilities.

• Specifies qualified investment computation methodology including real property purchases, leases of at least 10 years, improvements with 4+ year useful life, and tangible personal property meeting depreciation requirements.

• Adds the small arms and ammunition manufacturing credit to Ohio's business incentive tax credit program, requiring the director of development to adopt rules for implementation and annual reporting on program effectiveness.