State Offers Tax Credit to Redevelop Neighborhoods

The Ohio Department of Development announced that the application for the new Transformational Mixed-Use Development Program is open. The program provides a tax credit for major, mixed-use developments in Ohio. Applications are now available on Development’s website.
“This program will help transform neighborhoods and bring new life to previously underutilized or vacant sites,” said Lydia Mihalik, director of Development. “Mixed-use developments can provide space for housing, small businesses, recreation, and much more at one site, which improves the quality of life and opportunities for residents that live in the area.”
The tax credit can be used to help finance new construction and/or improvement of vacant buildings. Developments must include an influence on the economic and social well-being of the immediate site and surrounding area that will influence long-term change on the area. Development properties eligible for the tax credit must include at least two mixed uses, three if one is a parking structure.
Eligible costs include land acquisition, building acquisition, demolition, site improvement, and new construction of the site.
Established in Senate Bill 39, the Ohio Tax Credit Authority approves and awards funding for the program, up to $100 million per fiscal year. Developments applying for the program will be separated into two funding categories: major city and general. Major city projects must be located within 10 miles of a corporation limit of Columbus, Cleveland, Cincinnati, Toledo, Akron, and Dayton. Not more than $80 million per fiscal year will be approved for major city projects and not more than $40 million will be approved for a single development.
The program application is available on the program website. Applications must be received by 5 p.m. Oct. 29, 2021. Questions regarding the program can be sent to transformational@development.ohio.gov.