Savvy investors can potentially profit from Ohio’s Opportunity Zones, which are further enhanced by the state’s tax credit. Knowing the important details and the approaching deadline is key to taking advantage of this investment opportunity.
What is the Ohio Opportunity Zone Tax Credit?
The Ohio Opportunity Zone Tax Credit provides a financial incentive to encourage investment in designated Opportunity Zones within the state. Here’s how it works:
- 10% State Tax Credit: Investors who contribute capital gains to a qualified Ohio Opportunity Zone Fund can earn a 10% tax credit on their investment during the first year.
- Credit Flexibility: This credit can be used to offset Ohio state tax liabilities or, for non-residents, may be eligible for sale via a tax credit exchange.
- Capital Gains Deferral: Investors can defer federal capital gains taxes by reinvesting those gains into a qualified Opportunity Zone Fund. The deferred tax liability is then due in 2027.
- Potential Tax-Free Growth: If the investment is held within the Opportunity Zone Fund for a minimum of 10 years, any appreciation in the investment’s value may be exempt from federal capital gains taxes.
- Limited Time Window: The Ohio OZ Tax Credit period closes on June 30th.
- Maximize Your Returns: Combining the Ohio state tax credit with federal OZ benefits creates an advantageous incentive package that can significantly boost your investment returns.
- Invest in Ohio’s Future: Opportunity Zone investments drive economic growth and community revitalization in designated areas across Ohio. You can generate financial returns while making a positive impact.
- Immediate Year 1 Returns: Sell your earned Ohio OZ Tax Credits for immediate capital, significantly accelerating your liquidity.
- Faster Liquidity: Access capital without waiting for long-term investment returns.
- The Ohio Opportunity Zone Tax Credit offers a 10% state tax credit for investments in qualified Ohio OZ Funds.
- This credit is subject to a June 30th deadline.
- Federal Opportunity Zone benefits include capital gains deferral and potential tax-free growth.
- OZDG offers an Ohio Tax Credit exchange that gives you faster liquidity.
- Investors should conduct thorough due diligence and understand the tax implications of their investments.