Ohio Administrative Code Title 122:22 - New Markets Tax Credit
The Ohio Administrative Code Title 122:22 – New Markets Tax Credit governs the state's New Markets Tax Credit (NMTC) program, which aims to stimulate private investment in low-income communities by providing tax credits to investors. This program operates in parallel with the federal NMTC program and is administered by the Ohio Development Services Agency (now part of the Ohio Department of Development).(registerofohio.state.oh.us)
📘 Overview of Chapter 122:22-1 – General Provisions
Chapter 122:22-1 outlines the procedures and requirements for the Ohio NMTC program. Key provisions include:
Credit Allocation: The director allocates up to $10 million in tax credits annually to qualified Community Development Entities (CDEs) through a competitive application process. (law.cornell.edu)
Application Process: CDEs must submit applications during designated periods, providing necessary documentation and paying a non-refundable application fee. (codes.ohio.gov)
Allocation Agreement: Selected CDEs enter into an allocation agreement with the director, committing to specific terms and conditions.(codes.ohio.gov)
Notices and Certificates: CDEs must notify the director upon receiving qualified equity investments and making qualified low-income community investments. The director may issue tax credit certificates to investors based on these notifications. (regulations.justia.com)
Monitoring and Recapture: The director monitors compliance with program guidelines and may recapture credits if certain conditions are not met, such as misuse of investment proceeds or failure to maintain required investments. (codes.ohio.gov)
Fees: Applicants must pay an application fee, and state allocatees are subject to a servicing fee upon executing the allocation agreement. (law.cornell.edu)
✅ Eligibility Criteria
To participate in the Ohio NMTC program:
Community Development Entity (CDE): Must be certified by the U.S. Department of the Treasury's Community Development Financial Institutions (CDFI) Fund.(cdfifund.gov)
Qualified Equity Investments (QEIs): Investments must be made in qualified low-income community businesses located in Ohio.(regulations.justia.com)
Investment Use: Proceeds must be used for qualified investments, such as capital expenditures or working capital, within the low-income community.
📅 Program Timeline
Application Periods: The director announces application periods during which CDEs can apply for credit allocations.(law.cornell.edu)
Credit Allowance Period: Investors can claim the tax credit over a seven-year period, starting from the date the qualified equity investment is made.(regulations.justia.com)
💼 How to Apply
Certification: Ensure your entity is certified as a CDE by the CDFI Fund.(cdfifund.gov)
Application: Monitor announcements from the Ohio Department of Development for open application periods.(law.cornell.edu)
Submission: Submit a completed application along with the required documentation and application fee.
Agreement: If selected, enter into an allocation agreement with the director.(codes.ohio.gov)
Investment: Receive qualified equity investments and make qualified low-income community investments.(regulations.justia.com)
Certification: Notify the director of investments and receive tax credit certificates for investors.
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