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 Large business
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Financial benefits
The OAQDA can offer a variety of tax incentives for projects improving air quality. These incentive can help you recover a portion of the investment in cleaner air and energy efficiency you many be considering.
Tax Incentives
OAQDA can provide a 100 percent exemption from the following taxes:
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Tangible personal property tax – All personal property, located and used in business in Ohio, including machinery, equipment, and inventories, purchased or acquired as part of an air quality project is exempt from tangible personal property taxes and assessments as long as the bond or note issued by OAQDA is outstanding.
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Real property tax – Any real property comprising an air quality project is exempt from real estate property taxes and assessments as long as the bond or note issued by OAQDA is outstanding.
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Corporate franchise tax – The Ohio corporate franchise tax has two alternative bases: a net worth base and a net income base. Corporations are required to determine their tax liability under each base and pay the higher of the two. OAQDA exempts the value of all property comprising an air quality project from a corporation’s calculation of its net worth base as long as the bond or note issued by OAQDA is outstanding. The net worth base is determined by computing the total book value of the corporation’s capital, surplus, undivided profits, and reserves (unless excluded by law).
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Sales and use tax – All tangible personal property comprising an air quality project purchased or acquired specifically for that project is exempt from the state and local sales and use tax levied on the transfer or sale of that tangible personal property. The state sales tax rate is set at 5.0%. Sales tax rates vary by county as counties are authorized to levy additional, permissive sales taxes.
- Interest income on bonds and notes issued by OAQDA – Any income generated from the ownership of bonds and notes issued by the OAQDA, the transfer of bonds and notes, and any profit derived from the sale of those bonds or notes is exempt from Ohio’s state income tax and in some cases, federal income tax.
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