By Mike Fink, CPA | Supervisor, Tax
The state of Ohio established a Research and Development (R&D) Investment Loan program for qualified business owners more than 15 years ago but many business owners may be unaware of its existence or benefits.
This program provides low-interest loans with a tax credit through the Ohio Development Services Agency. As the recipient pays down the loan, they can receive up to a $150,000 yearly tax credit. This credit can offset Ohio Commercial Activity Tax or be assigned to a related person of the recipient company to be used on their personal Ohio income tax return.
Business owners can take advantage of this loan to upgrade manufacturing equipment and infrastructure. Manufacturers engaged in product development in particular can benefit as the loan program requires technological discovery projects and the employment of scientists, researchers, and technicians.
The R&D Investment Loan requires business owners to commit to job creation in Ohio – the number of jobs created will be considered when determining the loan amount. Eligible projects for the investment also include as noted from the Jobs Ohio site:
- Land and/or building purchase if the project involves the purchase of an existing building, the business must occupy at least 51% of the premises
- Machinery & equipment purchase
- Building construction and/or renovation costs if the project involves new construction the business must occupy at least 60% of the premises
- Long-term leasehold improvements
- Capitalizable costs directly related to a fixed-asset purchase
Contact me today to discuss if the R&D Investment Loan would benefit your business.