04/21/2023
ACEC Ohio Legislative Update--April 21, 2023
HB 33-General Revenue Fund-Operating Budget Bill
The House Finance Committee accepted their substitute budget bill this week. The sub bill eliminates an income tax bracket by collapsing the current 3.226% bracket to 2.765%. It also reduces the rate of the combined bracket to 2.75% for those making up to $92,000. An omnibus amendment will be adopted next week in advance of a House vote on the bill later next week. Below are some highlights to note, all details on sub bill can be found here:
Economic Development
- Provides $500 M over the biennium for brownfield redevelopment ($175 M per year) and demolition ($150 M in FY24).
- Appropriates $250 M for grants for local development, $150 M for downtowns, $50 M for townships, and $25 M each for cultural centers and county and independent fairs
- Limits allocation of federal low-income housing tax credits and other Ohio Housing Finance Authority assistance to projects approved by the county commissioners.
Environment
- Appropriates $160 M for a new round of water and sewer grants.
- Designates $2M from H2Ohio to establish a pilot program focused on legacy phosphorus fields
Broadband
- Creates the Ohio Broadband Pole Replacement and Undergrounding Program and appropriates $10 M in funding.
Transportation
- Establishes the Connect4Ohio Fund to provide seamless transportation connections throughout Ohio and make it easier for all Ohio workers to commute to economic centers. Invests $1 B for the state, and designates $24 M in projects specifically for Licking County
- Provides for $50 M for airport grants in FY24
- Allocates $247,500 for the FlyOhio Tethered Drone Pilot Project
Local Government
- Increases competitive bidding thresholds to $75,000 for counties, townships, municipalities, fire and ambulance districts, and airport authorities; to increase annually by 3%.
- Increases the minimum a county can receive from the Local Gov't Fund from $750,000 to $850,000. Requires counties with an alternative LGF distribution formula to review it every five years.
R&D Credit Amortization CALL TO ACTION
ACEC-backed legislation to repeal the 5-year R&D amortization requirement has just been reintroduced in the House and Senate. ACEC member action is needed today to build support for repeal of this costly requirement.
Click Here to Contact Your Representative and Senators
Starting on January 1, 2022, Congress changed how firms write off R&D expenses. Previously they could be deducted in the year they were incurred but now must be amortized over five years in most cases.
Amortization of R&D expenses is causing significant cash flow problems for engineering firms and creating a disincentive for investment in innovation. It will also place the U.S. at a competitive disadvantage to other countries that provide greater incentives for R&D.
We need you to contact your Members of Congress and ask them to cosponsor this critical legislation. Even if you contacted your Members of Congress earlier this year, we need you to take action again.
Click Here to Contact Your Representative and Senators