The bill amends sections 107.036 and 5747.98 of the Revised Code and enacts new sections 122.863 and 5747.88 to establish a business technology investment tax credit aimed at encouraging small businesses in Ohio to modernize and enhance their competitiveness through technology investments. The new section 122.863 defines an "eligible business" as one that is independently owned, employs fewer than fifty employees, and is based in Ohio. It also outlines what constitutes an "eligible technology investment," which includes expenditures for specific technologies that support core business operations, such as inventory management software and cybersecurity systems. The director of development is tasked with administering the program, including issuing tax credit certificates to qualifying businesses.

Additionally, the bill introduces a nonrefundable credit against a taxpayer's aggregate tax liability under section 5747.02 for those who receive a business technology investment tax credit certificate. The credit amount is equal to the value listed on the certificate, capped at 30% of the eligible technology investment, not exceeding $75,000. The total amount of tax credit certificates issued annually is limited to $20 million, and the director must submit an annual report detailing the program's outcomes. The bill also includes a provision to ensure that the new business technology investment tax credit is integrated into the existing order of tax credits claimed by taxpayers, as specified in section 5747.98. Existing sections 107.036 and 5747.98 are repealed as part of this legislative update.

Statutes affected:
As Introduced: 107.036, 5747.98