The Promised Land Act introduces a new section, 122.841, to the Revised Code, establishing a nonrefundable, transferable tax credit for eligible nonprofit organizations that construct owner-occupied housing. This credit, set at ten percent of total construction costs, including land value, aims to incentivize housing development by allowing organizations to apply for tax credits against various state taxes after selling housing units to owner-occupants. The bill outlines the application process, which is structured around two annual periods, and caps the total amount of tax credits issued at $25 million per fiscal year. It also emphasizes maintaining affordability and owner-occupancy through potential agreements in housing transfer documents.

In addition to the new provisions, the bill amends existing sections of the Revised Code, inserting references to the new credit in sections 5725.38, 5726.61, and 5726.98. It allows individuals to claim the credit under specific tax sections and permits the transfer of unclaimed credits to other parties. The bill also introduces a nonrefundable credit for foreign insurance companies that receive a tax credit certificate, with provisions for carrying forward excess credits for up to five years. Significant changes include the deletion of outdated definitions and terms, streamlining the language, and repealing several existing sections to enhance clarity and efficiency in tax administration for eligible entities.

Statutes affected:
As Introduced: 5725.38, 5725.98, 5726.61, 5726.98, 5729.21, 5729.98, 5747.86, 5747.98