Ohio New Markets Tax Credit Program Supports Low-Income Communities

$10 million in tax credits to spur investments in Ohio’s low-income communities

Columbus, OH – July 2, 2012 – (RealEstateRama) — The Ohio Department of Development Director Christiane Schmenk announced that $10 million in Ohio New Markets Tax Credits are being made available to six Ohio entities to spur economic investments of at least $25.6 million in Ohio. The program is designed to help finance business investments in low-income communities by providing investors with state tax credits in exchange for delivering below-market-rate investment options to Ohio businesses.

“This money ensures future economic development by encouraging investments in areas of Ohio that need it most,” said Schmenk. “Too often, businesses in these communities struggle to get the help they need to grow. We are breaking down these economic development barriers, allowing companies to succeed and create jobs.”

The Ohio New Markets Tax Credit program leverages the successful Federal New Markets Tax Credit Program to attract additional investments to Ohio. The federal program has created more than $21 billion in investments and has awarded more than $1 billion to Ohio-based Community Development Entities. The first Round of Ohio New Markets Tax Credit awards were made in October 2010.

The Ohio program, administered by the Department’s Office of Redevelopment, provides a 39 percent tax credit over seven years for qualified investments. Community Development Entities that received a tax credit allocation from the Federal New Markets Tax Credit program are eligible to apply.

Recipients of the Third Round of Ohio New Markets Tax Credits

Cincinnati New Markets Fund, LLC (Hamilton County) will receive $3 million in tax credits for a minimum of $7.69 million in investments. Cincinnati New Markets Fund is located in the City of Cincinnati and will serve the Over-the-Rhine neighborhood. They have received four allocations from the Federal New Markets Tax Credit program totaling $153 million. They have identified three potential projects that would benefit from an Ohio New Markets award, including the Central Parkway YMCA, Cincy Tech Campus, and the Meiner Flats Office Building.

Cleveland New Markets Investment Fund II, LLC (Cuyahoga County) will receive $2 million in tax credits for a minimum of $5.1 million in investments. The Cleveland New Markets Investment Fund II is located in the City of Cleveland, and is controlled by the Cleveland Development Advisors, Inc. They have received three allocations from the Federal New Markets Tax Credit program totaling $75 million. Their service area is Cuyahoga County. They have identified eight potential projects that would benefit from an Ohio New Markets award, including the Orlando Baking Company, Intesa, Shoreway Commerce – Phase II, the Hanna Annex, the Schofield Building, Steelyard Commons II, the East Ohio Building, and Miceli Dairy Products.

Development Fund of the Western Reserve (Northeast Ohio) will receive $1 million in tax credits for a minimum of $2.56 million in investments. Their service area covers 18 counties in Northeast Ohio. The Development Fund of the Western Reserve (DFWR) received its first allocation from the Federal New Markets Tax Credit program in 2012 totaling $20 million. DFWR has identified five potential projects that would benefit from an Ohio New Markets award, including the Kent State University Foundation, Platinum Inn Ovation Hotel, Oberlin Gateway, Ashlawn Energy, and Vadxx Energy.

Finance Fund (Statewide) will receive $2 million in tax credits for a minimum of $5.1 million in investments. They have received seven allocations from the Federal New Markets Tax Credit program, totaling $200 million. Their service area includes the entire State of Ohio. Finance Fund has identified eight potential projects that would benefit from an Ohio New Markets award, including the Ronald McDonald House (Cleveland), Marietta Armory Restoration (Marietta), St. Mary’s Medical Center (Ironton), Kent State University Conference Center and Hotel (Kent), Paycor (Dayton), Wright State University Duke Ellis Institute (Dayton), Oberlin Gateway (Oberlin), and the Midwest Terminal-Ironville Project (Toledo).

Northeast Ohio Development Fund, LLC (Cuyahoga County) will receive $1 million in tax credits for a minimum of $2.56 million in investments. The Northeast Ohio Development Fund (NEODF) is located in the City of Cleveland, and is controlled by the Cleveland-Cuyahoga County Port Authority. They have received three allocations from the Federal New Markets Tax Credit program, totaling $95 million. Their service area is Cuyahoga County. NEODF has identified 10 potential projects that would benefit from an Ohio New Markets award, including the Northeast Ohio Alternative Energy District Solar Special Improvement District, Nanomanufacturer AlSher, Great Lakes Towing Company, Cleveland State University Solar Renewable Energy Project, Rosby Resource Recycling, GeoSolutions, Carbon Vision, Cleveland Athletic Club, Vadxx Energy, and Orlando Baking Company.

Stonehenge Community Development, LLC (Statewide) will receive $1 million in tax credits for a minimum of $2.56 million in investments. They have received six allocations from the Federal New Markets Tax Credit program, totaling more than $505 million. Their service area includes the entire State of Ohio. Stonehenge has identified two potential projects in their pipeline that would benefit from an Ohio New Markets award.

For more information on the program and the application period, please visit http://www.development.ohio.gov/urban/ONM/.

The Office of Redevelopment assists communities with place-based redevelopment which creates wealth from personal, business, and community successes. The Office works to identify the resources and financing necessary to enhance the economic viability of local communities.

Working with our partners across business, state and local governments, academia, and the nonprofit sector, the Ohio Department of Development works to attract, create, grow, and retain businesses through competitive incentives and targeted investments. Engaged every day in marketing, innovating, investing, and collaborating, the Ohio Department of Development works to accelerate and support the teamwork that is necessary for success by providing financial, informational, and technical assistance to those making an investment in Ohio’s future.

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Media Contacts: Stephanie Mennecke at (614) 466-6619
or the Communications and Marketing Office at (614) 466-2609