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Enacted on June 30, H.B. 110, the fiscal year 2022-23 budget bill, includes several tax credit and incentive changes that create new programs and enhance existing programs. 

Changes to the state’s Job Creation Tax Credit (JCTC) allow work-from-home employees to qualify for the credit. Taxpayers that qualify for “megaprojects” may receive enhanced Commercial Activity Tax (CAT), JCTC, and other tax benefits. H.B. 110 also provides Brownfield and redevelopment grants and new or improved incentive offerings for certain key industries affected by COVID. 

The takeaway: Taxpayers applying for JCTC awards must commit to a certain level of increased Ohio headcount. Accordingly, taxpayers need to plan ahead and seek JCTC awards before expected headcount increases and not wait until employees are actually hired. 

H.B. 110 provides welcome work-from-home relief as taxpayers shift working models in the post-COVID era. Taxpayers using home-based employees should review their JCTC agreements to assess the impact for tax years 2022 and later. Taxpayers with growth in Ohio should continue to look for ways to benefit from the JCTC program.