Sponsored by Rep. Dorothy Pelanda and Rep. Jack Cera.
- Authorizes a nonrefundable tax credit against the income tax, commercial activity tax, financial institutions tax, severance tax, and domestic and foreign insurance taxes for the rehabilitation of a vacant industrial site that has been designated an industrial recovery site.
- Authorizes the Director of Development Services to designate manufacturing facilities that meet certain qualifications, as industrial recovery sites upon application from a county or municipal corporation.
- Requires that the application include a detailed plan for the development and use of the industrial site.
- Authorizes an owner or developer that makes qualified investments in a vacant facility designated as an industrial recover site to apply to the Director for a tax credit certificate.
OEC’s Perspective: Support
Salvage. Recovery. Revitalization.
That’s the bottom line of this thoughtful legislation, which offers a potent tool to help spur private investment in blighted, decaying properties. The environmental benefit of redeveloping former industrial and fallow commercial sites is obvious. It results in the clean up and remediation of contamination and the reuse of old brownfields rather than the sprawling clearing of new greenfields. The resulting economic payout is equally obvious, with new jobs and investment and a bolstered local tax base. These eventual rewards, though, involve risk.
Banks often are skittish about lending early on, as clean up costs for contaminated sites can be difficult to estimate. That’s why attracting early investors to brownfield redevelopment is so important. And that’s where HB 135 lends it help. It targets that risk with tax incentives to encourage early investment – a sort of early reward to the visionary entrepreneur. The resulting payback is a cleaner, greener Ohio.
The OEC supports this legislation.