Ohio House Bill 231 proposes multiple tax credits to support small businesses and investment

On April 15, 2025, the Ohio Legislature introduced House Bill 231, a significant piece of legislation aimed at reforming various tax credits to stimulate economic growth and support small businesses across the state. The bill proposes to amend existing tax credit provisions under the Ohio Revised Code, including those related to small business investments, lead abatement, opportunity zones, and historic building rehabilitation.

The primary purpose of House Bill 231 is to enhance the effectiveness of tax incentives designed to encourage investment in Ohio's economy. Key provisions include adjustments to the small business investment credit and the nonrefundable lead abatement credit, among others. By refining these credits, the bill seeks to address ongoing challenges faced by small businesses, particularly in the wake of economic disruptions caused by the COVID-19 pandemic.

Notably, the bill has sparked debates among lawmakers regarding its potential impact on state revenue and the effectiveness of tax incentives in driving economic growth. Some legislators express concerns that expanding these credits could lead to significant revenue losses for the state, while proponents argue that the long-term economic benefits will outweigh initial costs. Amendments to the bill are expected as discussions continue, with some lawmakers advocating for stricter eligibility criteria to ensure that the credits benefit truly deserving businesses.

The implications of House Bill 231 extend beyond immediate economic concerns. If passed, the bill could reshape Ohio's business landscape by attracting new investments and fostering job creation, particularly in underserved areas. Experts suggest that a well-structured tax incentive program could lead to increased employment opportunities and revitalization of local economies.

As the legislative process unfolds, stakeholders from various sectors, including business owners and economic development advocates, are closely monitoring the bill's progress. The outcome of House Bill 231 could have lasting effects on Ohio's economic recovery and growth trajectory, making it a pivotal point of discussion in the state's legislative agenda.