To amend sections 107.036 and 5747.98 and to enact sections 122.863 and 5747.88 of the Revised Code to authorize an income tax credit for businesses that make qualifying technology investments.
Summary
HB844 would create a new Ohio business technology investment tax credit for small, independently owned businesses with fewer than 50 employees and a principal place of business in Ohio. The credit would be available for qualifying technology investments that directly support core operations, such as point-of-sale systems, inventory management software, payroll and accounting software, e-commerce tools, workforce scheduling systems, data backup and cybersecurity products, and related installation costs. Eligible businesses would apply to the Ohio Department of Development for a certificate, and the credit would equal 30% of the eligible investment, capped at $75,000 per business.
The bill also requires the Department of Development to administer the program, issue certificates on a first-come, first-served basis, reserve at least 10% of annual certificates for businesses in distressed areas or owned in whole or in part by veterans, and report annually to the governor and General Assembly on participation and outcomes. The total amount of certificates issued each fiscal year could not exceed $20 million, and each business could receive only one certificate. The credit would be nonrefundable, could be carried forward for up to two succeeding tax years, and could pass through to owners of pass-through entities.
Impact
HB844 would add a new business incentive tax credit to Ohio law and amend the state’s credit-ordering statute so the new credit is claimed in the proper sequence against individual income tax liability. It would also expand the list of business incentive tax credits that must be estimated in the state budget, increasing administrative and fiscal tracking requirements for the governor and legislature. The bill would primarily affect small businesses making technology upgrades, with special access reserved for distressed areas and veteran-owned businesses, while also creating a new reporting and rulemaking role for the Department of Development.
Sentiment
Because the bill was only introduced and has no recorded committee testimony or votes, there is no formal legislative sentiment available from the record provided. Based on the text, the proposal appears generally pro-business and pro-modernization, aiming to help small firms adopt technology and improve competitiveness. The inclusion of a statewide cap and reporting requirements suggests an effort to balance tax relief with fiscal oversight.
Contention
The main policy tension in HB844 is between providing targeted tax relief to small businesses and limiting the state’s revenue exposure. Supporters would likely emphasize modernization, productivity, and competitiveness, while potential critics could question whether a tax credit is the best way to assist small businesses or whether the $20 million annual cap is sufficient to meet demand. Another possible point of discussion is the bill’s prioritization of distressed areas and veteran-owned businesses, which may be viewed as a useful targeting mechanism by supporters but as a constraint on equal access by others. No specific objections or amendments are recorded in the provided materials.