Gov. Strickland signed an executive order Wednesday that would implement the elimination of Ohio’s tangible personal property tax and real property tax for advanced and renewable energy facilities. The order implements Sen. Chris Widener, FAIA’s SB 232 which passed just prior to the legislature’s summer recess.
“As Ohio residents and businesses are fighting hard to recover from the crippling Wall Street recession, we must give promising companies every reason to develop and invest in Ohio as quickly as possible,” Mr. Strickland said in a release. “I signed this order to implement these rules and help spur business investment immediately.
“This tax reform is part of our economic development strategy to strengthen Ohio’s business climate and help create jobs for Ohioans in our growing industries like advanced energy.”
The governor proposed the tax treatment during his State of the State address earlier this year in an effort to make Ohio more competitive in the industry.
The elimination will affect projects that begin construction before Jan. 1, 2012, produce energy by 2013 and create Ohio jobs. The law exempts qualified energy facilities from TPP and real property taxes, and instead levies lower service payments based on the project’s energy production levels and a commitment to jobs creation.
Companies may submit applications for projects now, according to the governor’s office.
The law requires county commissioner approval for projects that exceed 5 megawatts of power.