COLUMBUS, Ohio (FOX19) - Ohio Department of Development Director, Lisa Patt-McDaniel announced that $10 million in Ohio New Market Tax Credits are being made available to four Ohio entities.
The program help finance business investments by giving state tax credits to investors for below-market-rate financial products for low-income businesses.
"By encouraging investments in areas of Ohio that need it most, we ensure future economic development opportunities and increased potential for new jobs," Patt-McDaniel said. "The Ohio New Markets Tax Credit program is one of the first of its kind in the country, and we are eager to see the new developments that come from this program."
The Ohio program is designed to attracted new investments to Ohio. The Ohio program borrows money from the Federal New Markets Tax Credit. The federal program gained $26 billion and gave Ohio more than $1 billion. The Ohio program gives a 39 percent tax credit over seven years for qualified investments.
The Cincinnati Development fund will receive $2 million in tax credits for a minimum of $5.1 million in investments made in the City of Cincinnati.
Federal data shows that for every dollar of unavoidable tax revenues under the New Market Tax Credit, $12 of private investment is leveraged in distressed communities.