The bill amends the Revised Code to refine the eligibility criteria and availability of tax credits under the rural business growth program. Key changes include a revised definition of "growth investment," which now excludes refinancing or buyout investments by rural business concerns. The bill introduces classifications for rural business growth funds as "program one," "program two," and "program three," based on certification dates, and increases the investment authority and credit-eligible contributions for program three funds to $150 million and $90 million, respectively. Additionally, it clarifies definitions for "operating company" and "principal business operations," establishes a new definition for "rural area," and streamlines the application review process.

Moreover, the bill outlines the eligibility and recapture provisions for tax credits associated with rural business growth funds, specifying conditions under which the Department of Development is not required to issue tax credit certificates. It mandates annual reporting for these funds and introduces a fee structure, along with a new calculation for state reimbursement based on new full-time equivalent employees created by investments. The bill also grants the director of development services the authority to waive a portion of the state reimbursement if growth investments lead to job retention. Overall, these amendments aim to enhance accountability and support for rural businesses, ensuring effective allocation of resources to promote economic development in designated areas.

Statutes affected:
As Introduced: 122.15, 122.151, 122.152, 122.153, 122.154, 122.155, 5725.98, 5729.98