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Qualified Energy Project Tax Exemption

Contact Information:

John Werkman
Tax Incentives Manager
(614) 466-6791
John.Werkman@development.ohio.gov

Program Update

Effective October 30, 2017, the Ohio Administrative Code sections governing administration of the Ohio Qualified Energy Project Tax Exemption program have been revised. Once effective, please carefully review the revised rules before submitting an application for review. A link to the revised Ohio Administrative Code can be found under "Program Information" to the left.

In accordance with the revised Ohio Administrative Code sections, the agency has developed a new application and a standard format for the following required forms: construction progress report, construction completion report, Ohio domiciled employee form, and certificate of nameplate capacity. The new application and forms can be found to the left.

Overview

The Qualified Energy Project Tax Exemption provides owners (or lessees) of renewable, clean coal, advanced nuclear, and cogeneration energy projects with an exemption from the public utility tangible personal property tax.

For Whom

In order to qualify, the owner or lessee subject to sale leaseback transaction must apply to Development Services Agency on or before December 31, 2017 for clean coal, advanced nuclear, and cogeneration projects or before December 31, 2020 for renewable energy projects.

Large projects (above 5 mega-watts) require approval from each Board of County Commissioners in which the project is located. In addition, these large projects require agreements to train and equip local emergency responders, as well as repair roadway infrastructure following the construction of the project. Small projects (less than 250 kilowatts) are exempt as a matter of law pursuant to Ohio Revised Code Section 5709.53

Benefits

If the project meets the requirements of the exemption, then the Director of the Ohio Development Services Agency will certify the project as a "Qualify Energy Project." Qualified Energy Projects will remain exempt from taxation so long as the project is completed within the statutory deadlines, meets the "Ohio Jobs Requirement," and continues to meet several ongoing obligations including providing Development Services Agency with project information on an annual basis.

How to Apply

Potential applicants should review the revised rules to determine whether they should file an application to become a Qualified Energy Project. The revised Ohio Revised Code and the Ohio Administrative Code can be found under “Program Information” to the left. For a copy of the application click here. Please note, potential applicants with questions regarding the financial impact of a tax exemption should consult a private professional tax adviser.