Ohio Training Tax Credit
SALT Tax Alert, January 15, 2007
Recently enacted
Ohio law has extended the Ohio Training Tax Credit (OTTC) Program once again for calendar year 2007. The 2007 OTTC application process will tentatively open at 9:00 a.m. EST on March 5, 2007 and close at 5:00 p.m. EST on March 14, 2007. Only those applicants who successfully submit sections 1 and 2 of the four-part application during this time period will be included in the initial lottery. There is no weight or priority given to the order in which applications are received during this ten-day period. If funds remain after the initial lottery process, applications received after this ten-day period will be included in a secondary lottery.
As in prior years, there will be $20 million in tax credits awarded to Ohio businesses that include C Corporations and pass-through entities, such as S Corporations, partnerships, and LLCs. The maximum credit available to a business is $100,000 (up to $1,000 per eligible employee) and is used to offset Ohio individual income, corporate franchise, or dealer in intangibles tax.
The credit can cover up to 50 percent of average eligible training costs, which are defined costs incurred in 2005, 2006, and 2007 that enhance an employee’s ability to perform employment functions and improve an employee’s opportunity for continued employment. The credit is available to all Ohio businesses. No more than one-half of the tax credit awards will be to manufacturers and at least 25 percent of the credits will be awarded to non-manufacturers with fewer than 500 employees.
As with the 2006 OTTC Program, the $100,000 maximum credit applies to pass-through entities.
During the past three years the OTTC Lottery has been in existence, Plante & Moran has assisted clients in securing more than $3M in training credits. Plante & Moran can assist with identifying qualified training costs, the application, and online filing on your behalf. Contact Mike Baker, Ohio State & Local Tax Leader, at 800.430.0931, Adam Garn at 800.791.6268, or Julie Corrigan at 800.430.0931 with questions or for more information.
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