SB 309 TAX CREDITS (Peterson, B., Kunze, S.) Introduced June 7, 2018, this bill would lengthen the maximum term of the job creation tax credit for businesses making substantial fixed asset and employment investments (and meeting the definition of “megaprojects” as set forth in the bill) and for their suppliers, to authorize commercial activity tax exclusions for receipts of those suppliers from sales to such businesses, and to authorize local governments to grant longer term property tax exemptions for such businesses or suppliers. On June 19, it was referred to the Ways and Means Committee.

The Opportunity Zone Program is a new federal economic development program approved in December’s tax reform law. The program establishes “Opportunity Zones” in areas that meet certain census-tract criteria (low-income and high poverty). Third parties will then establish “Opportunity Funds”, which will be investment vehicles organized with the specific purpose of investing in assets in the designated Opportunity Zones.

Federal Budget: The omnibus spending bill passed by Congress in March authorized favorable spending levels for 2018 for federal economic development programs, including:

House Speaker to Resign Immediately: Ohio House Speaker Cliff Rosenberger announced April 12 that he was resigning from office effective immediately amid talk of an FBI investigation into his travel-related expenses and compliance with ethics laws.

Speaker Rosenberger, a term-limited Republican, said that while he believes all of his actions as speaker have been “ethical and lawful,” he understands the inquiry could take some time to resolve. “Meanwhile, there are many important issues facing our state that deserve careful consideration and review, and Ohioans deserve elected leaders who are able to devote their full and undivided attention to these matters,” Rosenberger said in a statement. Rosenberger told the Dayton Daily News on Friday that he hired Columbus attorney David Axelrod, a former federal prosecutor, “as a precautionary measure.” He said the FBI has been asking questions but has not subpoenaed him or told him he’s under investigation.

Speaker Rosenberger’s resignation now allows the House Republican caucus time to possibly elect his replacement this month.

Federal Budget: The omnibus spending bill passed by Congress in March authorized favorable spending levels for 2018 for federal economic development programs, including:

Economic Development Agency – 302 million for fiscal 2018; about $26 million above fiscal 2017;
Manufacturing Extension Program – received $140 million; $10 million above fiscal 2017;
CDBG – received roughly $3.3 billion; $365 million about fiscal 2017;
TIGER – received $1.5 billion; $1 billion above fiscal 2017 ;
Rural Business-Cooperative Service – received roughly $77 million; about $12 million above fiscal 2017
Employment and Training Administration apprenticeship opportunities – received $145 million; $50 million above fiscal 2017;
Minority Business Development Agency – received $39 million; $5 million over fiscal 2017, and
Appalachian Regional Commission- received $155 million; $3 million over fiscal 2017.