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HB 844

Authorize tax credit for qualifying technology investments

136th Legislature (2025-2026) Introduced by Gary Click and 2 co-sponsors

HB 844 would create a state tax credit to incentivize qualifying technology investments in Ohio.

Referred to committee
#economicdevelopment #taxation
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Bill Summary · HB 844

Bill Overview

HB 844 (Ohio, 136th General Assembly) proposes authorizing a tax credit for qualifying technology investments. Introduced on May 6, 2026, the bill has co-sponsors Gary Click, Ty Mathews, and Diane Mullins. The measure aims to incentivize investment in eligible technology activities by providing a state tax credit to qualifying taxpayers.

Purpose and Intent

  • Encourage private investment in technology-related projects and businesses.
  • Support growth in Ohio’s technology sector by reducing after-tax cost for eligible investments.
  • Complement existing state economic development tools by targeting tech-focused capital expenditure.

Key Provisions

  • Tax Credit Authorization: Creates a new credit against state taxes for individuals or entities that make qualifying technology investments.
  • Eligibility Criteria: Establishes standards for what constitutes a qualifying technology investment (e.g., investment in specific technology sectors, innovation-focused ventures, or established technology projects meeting defined thresholds). The bill sets criteria to ensure investments meet intended tech and economic development goals.
  • Credit Amount and Limitations: Defines the maximum credit a taxpayer can claim, and any per-project or aggregate limits. May include percentage-based relief or a fixed dollar amount per investment, subject to cap.
  • Carryforward and Recapture: Specifies whether unused credits can be carried forward to future tax years and under what conditions credits could be recaptured or reduced (e.g., if investment ceases to meet criteria or project fails to progress).
  • Interaction with Other Incentives: Describes how the new credit interacts with existing Ohio tax credits, exemptions, or incentives (e.g., whether it stacks with other programs or requires a reduction proportional to other benefits).
  • Administration: Outlines responsibilities of the Ohio Department of Taxation in applying, verifying, and auditing the credit, including documentation requirements for taxpayers claiming the credit.

Affected Parties

  • Taxpayers who make qualifying technology investments in Ohio, including businesses, investors, and potentially high-income individuals who invest in tech ventures.
  • Technology companies and projects that meet the bill’s qualifying criteria may benefit indirectly through increased investment.
  • State taxpayers funding or administering the credit through theDepartment of Taxation.

Procedural and Timeline Aspects

  • Introduction: HB 844 introduced on May 6, 2026.
  • Next steps (typical): Committee review, potential amendments, floor consideration, and votes in the House and Senate; if enacted, awaiting signature or gubernatorial action.
  • Effective Date: The bill’s effective date (for when the credit applies) would be specified in the text, often as a date after passage or for investments occurring in a future year, with transitional rules if applicable.

Potential Impact and Considerations

  • Economic Impact: The credit could spur private sector investment in Ohio’s tech sector, potentially expanding job creation, startup activity, and technology commercialization within the state.
  • Budgetary Considerations: The credit creates a revenue-related foregone cost to the state; the bill should include expenditure or revenue impact notes, caps, and sunset provisions to maintain fiscal balance.
  • Compliance Burden: Taxpayers would need to document qualifying investments and maintain records to substantiate the credit, creating administrative demands for both filers and the Department of Taxation.
  • Policy Alignment: If designed with clear qualifying criteria, the credit could align with broader state goals in innovation, R&D, and high-growth industries.

Note: This summary reflects the bill’s stated purpose and typical structures of tax credit provisions. For precise eligibility criteria, credit amounts, caps, sunset provisions, and administrative rules, consult the official bill text and fiscal analyses once released by the Ohio General Assembly.

Compiled from official sources — confirm details with the bill’s official record.

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