Ohio Air Quality Development Authority Tax Incentives

Incentive type: 
Energy Efficiency
Technologies: 

Any energy efficient, renewable energy or air quality project may be eligible; please contact the Ohio Air Quality Development Authority to check the eligibility of specific projects. 

Sectors: 
Commercial
Amount: 

100% exemption from tangible personal property tax,  real property tax, corporate franchise tax and sales and use tax.

Contact Information: 
Ohio Air Quality Development Authority
50 W Broad Street
Suite 1718
Columbus, OH 43215

Phone: (800) 225-5051
Web Site: http://www.ohioairquality.org/

The Ohio Air Quality Development Authority offers tax incentives to businesses for projects improving air quality.    

OAQDA can provide a 100 percent exemption from the following taxes:

  • Tangible personal property tax – All personal property, located and used in business in Ohio, including machinery, equipment, and inventories, purchased or acquired as part of an air quality project is exempt from tangible personal property taxes and assessments as long as the bond or note issued by OAQDA is outstanding.
  • Real property tax – Any real property comprising an air quality project is exempt from real estate property taxes and assessments as long as the bond or note issued by OAQDA is outstanding.
  • Corporate franchise tax – The Ohio corporate franchise tax has two alternative bases: a net worth base and a net income base. Corporations are required to determine their tax liability under each base and pay the higher of the two. OAQDA exempts the value of all property comprising an air quality project from a corporation’s calculation of its net worth base as long as the bond or note issued by OAQDA is outstanding. The net worth base is determined by computing the total book value of the corporation’s capital, surplus, undivided profits, and reserves (unless excluded by law).
  • Sales and use tax – All tangible personal property comprising an air quality project purchased or acquired specifically for that project is exempt from the state and local sales and use tax levied on the transfer or sale of that tangible personal property. The state sales tax rate is set at 5.0%. Sales tax rates vary by county as counties are authorized to levy additional, permissive sales taxes.

In addition to these tax incentives, qualifying small businesses are eligible for a grant of up to 4% of projects financed through the Clean Air Resource Center as reimbursement for financing and fees.

For large businesses to qualify for tax incentives, they must be an air quality facility, as defined in Ohio Revised Code 3706.   Small businesses may be eligible if they use one of the following processes: baking, burning, casting, coating, degreasing, dry-cleaning, molding, painting, planting, printing.

Forms, applications and more information for small businesses can be found here.

Forms, applications and more information for large businesses can be found here.