Ohio: tax incentives, credits and advisors
Ohio taxes nonbusiness income at a flat rate starting in 2026 and taxes business income separately, after a deduction for the first $250,000.
Facts checked 2026-11-04 against the official sources linked below.
Below are the major Ohio incentives we could verify against an official source, grouped by type. This is not an exhaustive list of every state program. Credits flagged Transferable can be sold or assigned to another taxpayer under state rules; see transferable state tax credits. Each row shows the date we last checked it.
Ohio film and media incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Ohio motion picture and Broadway theatrical production tax credit | Credit | Certified productions with more than $300,000 of eligible Ohio expenditures | 30% of eligible expenditures; annual program limit of $50 million plus unused prior-year amounts, with $5 million reserved for Broadway productions | No transfer provision in ORC 122.85; the credit is refundable instead | Yes | Active | Ohio Revised Code 122.85 Last verified 2026-11-04 |
Ohio historic and building rehabilitation incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Ohio historic preservation tax credit | Credit | Owners or qualified lessees rehabilitating historic buildings, approved by the Department of Development | 25% of qualified rehabilitation expenditures (35% for projects in smaller municipalities or unincorporated township areas); claims up to $5 million a year per certificate owner; program limit $75 million a year | No transfer provision in ORC 149.311; the credit is refundable instead | Yes (income tax refund limited to $3 million a year) | Active | Ohio Revised Code 149.311; Ohio Revised Code 5747.76 Last verified 2026-11-04 |
Ohio brownfield and redevelopment incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Transformational mixed use development tax credit | Credit | Owners of large mixed-use development projects certified by the Department of Development (e.g. a 15+ story or 350,000+ sq ft building, or $5 million+ annual payroll on site) | Up to 10% of eligible expenditures; at most $20 million per project; $125 million of new preliminary approvals in each of FY2026 and FY2027, with no more than $85 million for projects within ten miles of a major city | Transferable: Yes; a preliminarily approved applicant may sell or transfer all or part of the credit and must notify the director | Not stated | Active (new approvals through fiscal year 2027 unless extended) | Ohio Revised Code 122.09 Last verified 2026-11-04 |
Ohio jobs, investment and enterprise zones incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Job creation tax credit | Credit (refundable) | Taxpayers creating new jobs under an agreement with the Ohio Tax Credit Authority | Excess payroll multiplied by the percentage set in the Tax Credit Authority agreement; the project must stay at least the greater of seven years or the credit term plus three years | Not stated | Yes | Active | Ohio Revised Code §122.17 Last verified 2026-10-26 |
Ohio angel and venture investment incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Ohio opportunity zone investment tax credit | Credit | Investors in qualified opportunity funds that invest in Ohio opportunity zone projects | 10% of the investment the fund placed in Ohio opportunity zones; $2 million per applicant per biennium; $50 million a year for FY2026 and FY2027 | Transferable: Yes; the original certificate holder may transfer the credit | No (nonrefundable credit) | Active through fiscal year 2027 unless extended | Ohio Revised Code 122.84 Last verified 2026-11-04 |
Ohio housing incentives
| Incentive | Type | Who qualifies | Amount, rate or cap | Transferable | Refundable | Status | Source |
|---|---|---|---|---|---|---|---|
| Ohio low-income housing tax credit | Credit (nonrefundable) | Owners and equity owners of qualified low-income buildings in Ohio that also receive the federal section 42 credit, reserved by the Department of Development with the Ohio Housing Finance Agency | Annual credit amount stated on the eligibility certificate for each year of the credit period; reservations capped at $100 million per fiscal year plus unused prior-year cap and recaptured credits; no new reservations after June 30, 2027 | Transferable: Limited: the credit may be allocated among equity owners identified to the director; carryforwards may not be assigned once claimed | No | Active (new reservations through June 30, 2027) | Ohio Revised Code 175.16 Last verified 2026-11-04 |
State income tax notes
- For taxable years beginning in 2026 and later, Ohio's tax on nonbusiness income above $26,050 is $332 plus 2.75% of the excess. (Source: Ohio Revised Code §5747.02)
- Individuals can deduct up to $250,000 of business income ($125,000 per spouse filing separately). Taxable business income above that is taxed at 3%. (Source: Ohio Revised Code §5747.01(A)(28); Ohio Revised Code §5747.02)
Advisors located in Ohio
- Cohen & Co Cleveland, OH
- Pease Bell Cleveland, OH
Listed alphabetically by the location on each advisor's public listing; not a recommendation. Many firms also serve clients in other states.
Related strategies
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Related guides
- Ohio film tax credit: the 30% refundable motion picture and Broadway credit
- Buying Ohio tax credits: which Ohio credits can be transferred and which are refundable
- How to reduce taxes on W-2 income in 2026: what works, what usually does not
- The solar investment tax credit in 2026: what current law says after the 2025 tax act
- How to reduce taxes on passive income: losses, credits and timing
- How to find and vet a tax mitigation advisor: credentials, questions and red flags
- How state tax credit transfers work: minimum prices, notices, buyer limits and state examples
Common questions
What is Ohio's income tax rate in 2026?
For 2026 and later, nonbusiness income above $26,050 is taxed at 2.75%, after a base amount of $332.
How does Ohio tax business income?
Up to $250,000 of business income is deducted ($125,000 per spouse filing separately), and the rest is taxed at 3%.
Can Ohio film or historic tax credits be sold?
No transfer is provided for in ORC 122.85 or 149.311; both credits are refundable to the holder instead.
Which Ohio tax credits are transferable?
The transformational mixed use development credit (up to 10% of eligible expenditures, $20 million per project) and the Ohio opportunity zone investment credit can be transferred under ORC 122.09 and 122.84.
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Education only; not tax, legal or investment advice. State rules change; confirm with the official source and a qualified professional.