The Ohio Chamber of Commerce submitted a letter of support to the Ohio House Economic and Workforce Development Committee for Senate Bill 39. SB 39 provides an economic development incentive to encourage insurance companies to provide capital for the construction or development of certain building projects known as “transformational mixed-use developments.” These developments must cost more than $50 million and contain either a building with at least fifteen (15) floors or at least 350,000 square feet of usable space. This large project must also lead to more than one intended use – office, retail, hotel, recreation or residential. The tax credit certificate is not awarded until the project is complete, and the credits are nonrefundable with a short five-year carry forward period.
Although limited in scope due to the parameters of the program, the Ohio Chamber believes that such projects will increase land values adjacent to the area under development and prompt other businesses in the neighborhood to develop or expand in support of the new “transformational mixed-use development” which, in turn, will increase jobs in the area. These economic outcomes are positive for Ohio and send a signal to developers, site selection professionals and businesses contemplating an expansion of operations that Ohio is a vibrant state full of opportunities.
SB 39 has passed the Senate and awaits a favorable report out of the House Economic and Workforce Development Committee which will send the bill to the full House for a vote. The Ohio Chamber is hopeful that this can be accomplished this calendar year and be in place for the building season next spring.