Accountants + Business Advisors

InvestOhio Tax Credit – You Might Qualify


InvestOhio Tax Credit – You Might Qualify

By Kathy Davis | Senior Manager – Tax Kathy Davis head shot

Are you investing in your business to purchase equipment, real estate or intangibles? Perhaps you are expanding your business and hiring new employees. If you’re an eligible small business and have Ohio personal income tax perhaps you can benefit from a 10% Ohio Tax Credit on your investment!

How the InvestOhio Credit Works

InvestOhio provides an Ohio personal income tax credit to investors that contribute funds in a qualifying small business. The business is then required to reinvest that infusion of cash into allowable expenses within six months of the receipt of the funds. The investor must retain their ownership as well as keep the invested property for a two year period to claim the credit.

Qualifying Small Business Enterprise

  • Businesses that make investments in property used within Ohio, creating a nexus with Ohio for purposes of taxation
  • Must have assets less than $50,000,000 OR sales of less than $10,000,000
  • Must have a least one full-time employee in Ohio and, at least half of total full-time employees are employed in Ohio OR have at least 50 full-time Ohio employees

Qualified Expenditures Include

  • Real Estate
  • Personal property
  • Motor vehicles
  • Intellectual property (copyrights, trademarks and licenses)
  • Compensation paid to newly hired or retained Ohio employees (excluding owners, officers or managers)

If you are investing in your business and file a State of Ohio personal return, you may qualify for the InvestOhio tax credit

Eligible Investors Include

  • Individuals (or pass through entities with individual owners)
  • Investor must have Ohio personal income tax liability to benefit from the credit. Unused credits can carryforward seven years.

If you are making plans to invest in your company this year please contact your Apple Growth Partners trusted advisor to see if the qualifying conditions can be met. There is an application and registration process that must be done prior to the contribution of funds and subsequent expenditure as well as submission of proof of the investment and expenditure (with interim and final reporting to the State).

Can InvestOhio work for you? Contact me today to see if your investment qualifies at 330.867.7350 or