The bill amends sections 149.311 and 175.16 of the Revised Code to allow area agencies on aging to combine state historic rehabilitation and low-income housing tax credits, establishing a minimum price for the transfer of these credits. It introduces new definitions and criteria concerning historic buildings, qualified rehabilitation expenditures, and the roles of owners and qualified lessees in the rehabilitation process. A significant stipulation is that if the applicant is not an area agency on aging, the historic building cannot be part of a qualified low-income housing project that has received a tax credit under section 42 of the Internal Revenue Code. The bill also outlines the application process for rehabilitation tax credit certificates, including a cost-benefit analysis requirement, limits on the total amount of credits approved each fiscal year, and conditions for claiming these credits.

Additionally, the bill establishes a new tax credit system for qualified low-income housing projects in Ohio, specifically for projects placed in service on or after July 1, 2023. The Ohio housing finance agency's director is authorized to reserve tax credits for project owners, contingent upon the issuance of an eligibility certificate and compliance with reporting requirements, with a cap of $100 million on the total credits reserved each fiscal year. It mandates the development of a tracking system to monitor the impact of these tax credits on state tax revenues and requires detailed reporting to the tax commissioner. The bill also includes provisions for recapturing credits if any portion of the federal credit is disallowed and repeals existing sections related to the previous tax credit system, aiming to enhance the financial feasibility of low-income housing projects while ensuring accountability in credit allocation.

Statutes affected:
As Introduced: 149.311, 175.16