Registration for InvestOhio, a 10% personal income tax credit for investments into Ohio small businesses, has begun. First, each investor and the small business must register for InvestOhio through the Ohio Business Gateway. Each registrant will receive an InvestOhio ID which it will need to apply for the credit. Then, starting the first week of December, responsible parties can begin applying for the InvestOhio credit through the Ohio Business Gateway. In situations with multiple investors applying for the credit (remember, the credit is up to $1 million per investor), the small business is able to apply on behalf of all investors for administrative convenience.

Credits will be awarded on a first come, first serve basis, so it is essential for eligible parties to complete the application as soon as possible. Since an application can be made based upon a future investment, eligible taxpayers planning to make a qualifying investment should not wait to apply for the credit. Upon approval, the investor must make the investment on or around the date described in the application and provide evidence thereof to the Ohio Director of Development within 30 days. Then, the small business must make the allowed expenditures and provide evidence thereof to the Director within 30 days of the expenditures or seven months of the qualifying investment, whichever occurs first.

Complete details regarding eligibility for the InvestOhio credit, including the two year holding period for qualifying investments, can be found in our previous post and the InvestOhio FAQs published by the Ohio Department of Development and Ohio Department of Taxation. Additionally, more information concerning applying for the InvestOhio credit, including a helpful tutorial, is available here.

Please contact us if you need help determining your eligibility for the InvestOhio personal income tax credit or registering/applying therefor.