Bill > HB844

This bill establishes a new tax credit program for businesses in Ohio that invest in qualifying technology, aiming to modernize and improve their competitiveness. An "eligible business" is defined as a small business with fewer than fifty employees that is independently owned and operated and has its principal place of business in Ohio. "Eligible technology investments" include expenditures on hardware, software, and installation costs for technologies that directly support core business operations, such as point-of-sale systems, inventory management software, e-commerce platforms, and cybersecurity measures. The program, administered by the Director of Development, allows eligible businesses to apply for a tax credit certificate, which will be awarded on a first-come, first-served basis, with at least ten percent of certificates reserved for businesses located in distressed areas or owned by veterans. The tax credit will be equal to thirty percent of the eligible technology investment, capped at $75,000 per business, with a statewide annual limit of $20 million for all issued certificates. This new credit will be added to the list of existing business incentive tax credits and will be claimed by taxpayers in a specific order of priority against their state income tax liability, with any excess credit potentially carried forward for up to two succeeding taxable years.