Ohio’s Opportunity Zone Tax Credit Program is evolving, bringing fresh incentives and streamlined processes for investors looking to make a difference in economically distressed communities. With recent legislative updates, the program now features new timelines, credit caps, and enhanced flexibility, making it easier than ever to invest in Ohio’s future. Whether you’re a seasoned investor or just exploring the possibilities, understanding these changes can help you maximize your impact and your returns.
Read Also: Opportunity Zones Evolve: Comparing TCJA & OBBBA Legislation For Investors & Communities
Ohio Opportunity Zone Credit Overview
In addition to the Federal income tax incentives related to Opportunity Zones, the Ohio Opportunity Zone Tax Credit Program provides an incentive for applicants to invest in projects in economically distressed areas located in Ohio.
The applicant invests cash in the Ohio Qualified Opportunity Fund (Ohio QOF), which in turn must invest that money in a Qualified Opportunity Zone property in Ohio. Once the money is invested in the Qualified Opportunity Zone Business Property (QOZBP), the applicant is eligible for a non-refundable tax credit equal to 10% of the amount of its funds invested by the Ohio QOF in the QOZBP.
Taxpayers who receive the Ohio OZ credit can use it to offset their Ohio income tax in the year the credit is received. Any unused tax credit amount can be carried forward and utilized by the taxpayer over the following five years.
One of the significant benefits of the Ohio OZ program is that credits can be monetized by the taxpayer. Taxpayers can sell and transfer all or part of the Ohio OZ credit simply by filling out a form with the Ohio Department of Taxation.
Has Ohio’s Opportunity Zone Credit changed recently?
With the passage of the Ohio bi-annual budget in July, some aspects of the credit have changed. While the overall application process remains similar, there are some key differences related to timing, available credits, and credit caps. The chart below provides some key differences between the credit in House Bill 116 and House Bill 96.
Where We Were (HB 166 – 2019) |
Where We Are (HB 96 – 2025) |
|
| Application Timeline | January 10 – February 1 July 10 – August 1 |
January 10 – January 17 July 10 – July 17 |
| Credits Available |
|
|
| Transferability | Transfer of unclaimed certificates allowed | Transfer of unclaimed certificates allowed |
How GBQ Can Help?
If you’re thinking about investing in an opportunity zone tract or if you already have and don’t know where to go from here, GBQ can help. With years of experience regarding structure, federal compliance, and the Ohio Opportunity Zone Tax Credit application process, we can assist you in multiple ways to make your investment compliant and a success for you and your investors. Contact us today to learn more.
By Brandon Shafer and Allie Bastian, CPA, Tax & Advisory
Looking for additional opportunities for real estate investors? Check out these resources:
Opportunity Zones Evolve: Comparing TCJA & OBBBA Legislation For Investors & Communities
Unlocking Generational Wealth: Smart Estate Planning Strategies For Real Estate Investors
Major Tax Benefit For Residential Contracts Won Through The One Big Beautiful Bill
