The bill revises the Revised Code to enhance the rural business growth program by modifying eligibility criteria and investment definitions. Notably, it redefines "growth investment" to exclude refinancing or buyout investments and introduces classifications for rural business growth funds as "program one," "program two," and "program three," based on certification dates. The agency responsible for approving applications will have increased limits for program three funds, allowing up to $150 million in eligible investment authority and $90 million in credit-eligible contributions. The bill also clarifies definitions related to rural business concerns and establishes new tiers based on population size, aiming to improve investment potential and economic growth in rural areas.

Additionally, the bill outlines the process for claiming tax credits for contributions to rural business growth funds, including a structured timeline for tax credit certificate issuance and the order of credit claims. It introduces a nonrefundable credit for investments in these funds, which must be prioritized when claiming credits. The bill also details conditions under which the development agency may refuse to issue tax credit certificates, establishes reporting requirements for compliance, and outlines a recapture process for tax credits if investment thresholds are not met. Furthermore, it allows for a waiver of state reimbursement amounts based on job retention linked to growth investments, ensuring accountability in the use of tax incentives. Existing sections of the Revised Code related to these provisions are set to be repealed, indicating a comprehensive update to the tax credit framework.

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