State Budget Includes Tax Relief, School Funding Overhaul
This week, the Ohio House voted 70-27 to approve its version of the state operating budget for fiscal years 2022-23. With $74.7 billion in total General Revenue Fund appropriations and $162.8 billion in all-funds appropriations, the two-year budget (HB 110) includes a 2% across-the-board income tax cut and a nearly $2 billion school funding overhaul. (Here’s how your local school districts would be affected.)
Additionally, the House-approved budget contains the following provisions of interest:
A new tax deduction for taxpayers with capital gains from the sale of an ownership interest in an Ohio-based business. (Taxpayers with at least $1 million invested in a business headquartered in Ohio for at least five years would be eligible for the deduction starting in 2026.)
Another new income tax deduction to allow investors in Ohio-based, state-certified venture capital companies to deduct all or a portion of capital gains starting in 2026.
A buy-U.S.-and-Ohio preference for personal protective equipment for state government agencies.
An exemption for self-generated electricity users from the kilowatt hour tax in certain situations.
$25 million in funding for the TechCred program.
$2.5 million to be spent both years on industry sector partnership grants.
$155 million in COVID-19 relief for small businesses.
The budget now goes to the Senate, where it will undergo more changes. The General Assembly must pass a balanced budget by June 30. 4/22/2021