It will be a Merry Christmas indeed for advocates of Ohio preservation if the Governor signs into law the new Ohio Rehabilitation Tax Credit, which was passed by both houses of the Ohio General Assembly last week.

The proposed legislation creates a two-year trial program for the 25% tax credit, after which an analysis will be undertaken to ascertain its impact. Each year, 100 projects can be included in the program, and each will be subject to a cost-benefit analysis conducted by the Ohio Department of Development and the Tax Commissioner to verify that a given project will have a net revenue gain in state and local taxes once the building is placed into service. Property owners can submit projects on or after July 1, 2007. To be eligible, a building must be individually listed on the National Register of Historic Places, verified as contributing in a National Register Historic District, or individually listed as a historic landmark by a Certified Local Government.

This is wonderful news for Ohioans interested in re-investment in the state’s traditional city centers. States such as Missouri, which have had similar tax credits for many years, have seen increased investment as owners combine federal and state historic tax credits for much-needed capital.

Click here to read Substitute House Bill Number 149, and stay tuned to MyHometownOhio, as we cover both this important development in more detail as well as provide practical advice for owners interested in taking advantage of the new credit.

Photo: Ohio Statehouse, Christmas 2006/fensterbme/Creative Commons License