Update on Senate Bill 39 — Next stop: the Governor’s Desk

Last month, I wrote a blog on Senate Bill 39 (SB 39) after it was reported out of the House Economic Workforce Development Committee.

In summary, the bill provides an insurance premiums tax credit for transformational mixed-use developments. The pool of available credits is now split between large projects – 15 stories totaling at least 350,000 square feet with a mixed use once the project is complete; and a smaller pool for smaller projects that need only four stories and 75,000 square feet. Both types of projects will require a pro forma demonstration that taxes increase in the area before the full credit is awarded to the applicant.

I am happy to write that SB 39 passed the House during a session this past Tuesday. SB 39 remains largely unchanged. It did pick up an emergency clause that would make the provisions effective immediately after the bill is signed into law by the governor. The bill also received a floor amendment in the House before it was sent back to the Senate for concurrence.

The floor amendment reinstated the personal income tax credit for contributions made to the campaign committees of candidates for statewide public offices and/or the General Assembly. This nonrefundable credit was removed in the last budget (HB 166) last July. The emergency clause allows taxpayers to use the credit on their 2020 Ohio personal income tax returns. On Wednesday, the Senate concurred with the House changes and sent the legislation to the governor for signature.