House Bill 525 would double the amount of commercial activity tax (CAT) credits that are available to movie makers, and extend them to Broadway shows. In testimony this week, the OMA’s Rob Brundrett questioned the wisdom of adding yet another credit to the tax, and for doing it for these industries.
“The more credits that are added to the tax the more pressure is on the remaining businesses subject to the CAT. With more exemptions and credits, pressure builds to raise the low rate to make up for the loss in revenue … enacting this credit would have the fourth largest impact to the CAT.
“It is important to understand where CAT exemption savings are invested. Does that money stay in Ohio or does it go to outside interests in New York, California, or some other state? If Ohio is looking to drive business in Ohio it should be creating tax credits for capital projects in Ohio for the benefit of Ohioans.
“These types of projects require investment from local businesses already on the ground, and the business is much less likely to walk away from Ohio at the completion of the credit because it has invested capital in the state,” he testified. 3/22/2018