Ohio eliminates tax on renewable energy projects

Ohio Gov. Ted Strickland signed an executive order Wednesday eliminating the state’s tangible personal tax and real property tax for advanced and renewable energy project facilities. The order makes it easier for energy companies to do business and create jobs in Ohio.

"As Ohio residents and businesses are fighting hard to recover from the crippling Wall Street recession, we must give promising companies every reason to develop and invest in Ohio as quickly as possible," Strickland said in a news release. "I signed this order to implement these rules and help spur business investment immediately. This tax reform is part of our economic development strategy to strengthen Ohio's business climate and help create jobs for Ohioans in our growing industries like advanced energy."

Strickland announced in his State of the State address this year his plan to eliminate these taxes for energy projects in order to make Ohio more competitive by lowering the tax burden for energy companies looking to locate and grow in Ohio and spur job creations. The elimination will affect projects that begin construction before Jan. 1, 2012; produce energy by 2013, or 2017 for nuclear, clean coal and cogeneration projects; and create jobs in Ohio.

The law exempts qualified energy facilities from tangible personal property taxes and real property taxes and instead, levies lower service payments based on the project’s energy production levels and their commitment to Ohio jobs.

Read the full story in the Dayton Business Journal.