Among a flurry of legislative activity last week before summer recess, the General Assembly okayed an amendment to House Bill 390 which expanded Ohio’s current motion picture tax credit. The action, originally included in House Bill 475, would have increased the total amount of credits that may be awarded from $20 million per fiscal year to $75 million per fiscal year. The vast majority of the claimed credits are taken against the commercial activity tax (CAT).
The legislature scaled back the proposal, opposed by the OMA, by almost half by reducing the amount of allowable credits to $40 million per fiscal year and disallowing any carryover of credits if less than $40 million is awarded in any year.
OMA opposes carve outs and credits to the CAT as they threaten its broad-base and low rate.