The bill amends section 5739.21 and enacts section 122.97 of the Revised Code to establish a music incubator program aimed at providing sales tax rebates to eligible music venues and festival promoters in Ohio. The new section defines "eligible music venue or festival promoter" and outlines specific criteria that must be met for an entity to qualify for the rebate, including holding a vendor's license, hosting live performances, and entering contracts with musical artists. The bill also stipulates that eligible entities can apply for rebates starting in September 2026, with the rebate amount capped at the lesser of the state sales taxes collected from beer and wine sales or $100,000, and a total annual cap of $10 million for all rebates.

Additionally, the bill creates a music incubator rebate fund within the state treasury, funded by the first $10 million deposited into the treasury from sales tax collections each fiscal year, starting in 2027. The fund is designated solely for awarding rebates to eligible music venues and festival promoters, and any unspent funds at the end of the fiscal year will be transferred to the general revenue fund. The existing section 5739.21 is repealed, indicating a significant restructuring of how sales tax revenues are allocated in relation to the music industry in Ohio.

Statutes affected:
As Introduced: 5739.21