To amend sections 5725.38, 5725.98, 5726.61, 5726.98, 5729.21, 5729.98, 5747.86, and 5747.98 and to enact section 122.841 of the Revised Code to authorize a nonrefundable, transferable tax credit for charitable organizations that construct owner-occupied housing and to name this act the Promised Land Act.
HB704, the Promised Land Act, creates a new state tax credit for eligible nonprofit organizations, including churches, that own real property in Ohio and facilitate the construction of housing on at least one acre of that property. The credit is available after one or more units are sold to owner-occupants for use as a primary residence, and the housing sale may qualify even if the nonprofit retains the underlying land through a leasehold arrangement rather than transferring fee simple title. The credit equals 10% of the total construction cost, including the value of the land, and applications would be accepted twice each year by the Ohio Department of Development.
The bill also allows the credit to be transferred, in whole or in part, to other taxpayers, and it sets a statewide cap of $25 million in credits per fiscal year, with no single applicant receiving more than $2 million in a fiscal biennium. The director of development would issue certificates, review applications in order received, and submit annual reports to state leaders on the number and location of qualifying housing units and the certificates issued. The bill expressly allows affordability-preserving terms such as ground leases and deed restrictions, and the director may give preference to applications using those mechanisms.
HB704 would amend Ohio’s tax credit ordering statutes for domestic insurance companies, foreign insurance companies, commercial activity taxpayers, and individual income taxpayers so that the new promised land credit is recognized alongside existing credits such as the opportunity zone investment credit, low-income housing credits, affordable single-family home credits, historic rehabilitation credits, and job-related credits. It would also repeal the current versions of the affected sections and replace them with updated language that incorporates the new credit and its transfer rules. In practical terms, the bill would create a new incentive for nonprofit-led housing development and expand the set of credits that can offset several major state tax liabilities.
The general sentiment reflected by the bill text is supportive of housing production and affordability, with the structure designed to encourage charitable and faith-based organizations to help build owner-occupied homes. Because the bill was only introduced and there are no committee transcripts or recorded votes provided, there is no documented public debate in the supplied materials. The inclusion of reporting requirements, application windows, and a fiscal cap suggests an effort to make the program administratively controlled and budget-limited.
No specific points of contention are recorded in the available context, but the bill’s design suggests likely areas of policy debate: whether a transferable tax credit is the best way to subsidize housing, whether nonprofits and churches should receive this kind of tax benefit, whether the $25 million annual cap is sufficient or too generous, and whether the credit should favor affordability-preserving land arrangements. Another possible issue is the interaction between the credit and existing housing tax incentives, since the bill coordinates the new credit with several other tax provisions and prohibits double use of the same credit across multiple tax types.
HB704 would add new section 122.841 to the Revised Code and amend multiple tax credit ordering statutes to incorporate a new nonrefundable, transferable credit for nonprofit-facilitated owner-occupied housing. It would affect the corporate franchise tax, financial institutions tax, insurance taxes, and individual income tax by allowing the promised land credit to offset liability under those chapters, subject to existing ordering rules, carryforward limits, and transfer procedures. The bill would also require annual reporting by the Department of Development and establish a statewide annual cap on credits, thereby creating a new state-administered housing incentive program tied to charitable development activity.
The bill appears generally favorable toward expanding housing supply and supporting nonprofit-led development, especially for owner-occupied housing and affordability-preserving projects. The available materials show no committee testimony, recorded votes, or formal opposition, so there is no documented partisan or stakeholder split in the provided context. Overall, the tone of the legislation is pro-housing and pro-charitable development, with administrative safeguards and fiscal limits built in.
No explicit contention is documented in the supplied transcripts or voting history, but the bill raises several likely policy questions. Potential points of debate include the use of a transferable tax credit, the inclusion of churches and other nonprofits as eligible applicants, the size of the $25 million annual cap, and whether the credit should prioritize projects using ground leases or deed restrictions to preserve affordability. There may also be concern about how the credit interacts with existing housing and economic development tax credits and whether the program’s benefits would be concentrated among certain developers or regions.