Tax and Finance Management

Study: Ohio Cities Are Great for the Middle Class

Cleveland, Cincinnati, and Toledo are among the nation’s best communities for the middle class, according to a new study by SmartAsset. The financial website calculated the bounds on middle class earnings in 100 of the largest U.S. cities, as well as all 50 states. 4/19/2023

On-Demand Videos: Lease Accounting Mistakes

What are some of the most common mistakes businesses make when adopting the ASC 842 lease accounting standard? Schneider Downs, an OMA Connections Partner, has published these short videos to point out the pitfalls — and spotlight best practices to avoid them. 4/18/2023

Consumer Prices Saw Slower Rise in March

The latest federal data show U.S. consumer prices rose 0.1% in March, a slowdown from the 0.4% increase in February, but still registering 5% year over year. Producer prices prices sank 0.5% in March, the biggest drop since 2020.

In this analysis, OMA Connections Partner RSM writes that the new data support the case for a near-term pause in interest rate hikes. 4/13/2023

Ohio Tax Revenue Up Nearly 7% for Fiscal Year

March brought another month of higher-than-expected revenue for Ohio’s state government. Total general revenue fund tax receipts finished $30.6 million (1.6%) above the month’s forecast, again led by the personal income tax. For the fiscal year, Ohio’s tax collections have outpaced estimates by $465.7 million (nearly 7%). 4/11/2023

Understanding Clean Energy Incentives for the Auto Industry

As part of its “Manufacturing Insights” update, OMA Connections Partner RSM has published this overview of the clean energy incentives for the automobile industry under the federal Inflation Reduction Act. The article includes discussion about newly released guidance from agencies. 4/12/2023

Impact of Sect. 174 Changes on Custom Manufacturers

Many manufacturers are concerned about how tax code changes will impact their business — specifically, changes to Section 174, which addresses R&D expenses.

Dublin-based Sycamore Growth Group, an OMA Connections Partner, has published this manufacturing-specific insight into how Section 174 changes affect specialty manufacturing businesses and engineering-related expenses. 4/12/2023

Preparing for New BOI Requirements

Businesses will soon need to comply with new beneficial ownership information (BOI) reporting requirements — part of federal efforts to combat money laundering, drug trafficking, and financial fraud. Failing to comply may result in penalties of $500 per day and/or up to two years in jail. OMA Connections Partner CliftonLarsonAllen has published this high-level overview of the requirements. 4/13/2023

House GOP Still Supports Tax Relief in Next Budget

Ohio lawmakers are on spring break until the week of April 17. But when they return to the Statehouse, their focus will continue to be the two-year state budget, which must be signed into law by June 30.

This week, House Finance Committee Chair Jay Edwards (R-Nelsonville) said House Republicans remain supportive of including personal income tax relief in the budget.

Bricker Graydon, the OMA’s general counsel, has provided this analysis of House Bill 1 and its potential impact on manufacturers. The bill would create a flat income tax of 2.75% and make property tax changes. 4/6/2023

Economic Barometer: April 2023

• The Institute for Supply Management says U.S. manufacturing activity contracted in March for the fifth consecutive month.
  • OMA Connections Partner RSM writes: “It has become evident that the manufacturing sector might have already slipped into a recession.”
  • Since Q4 2022, there has been a modest decline in the total number of job openings, including manufacturing jobs, posted at Ohio Means Jobs.
  • Construction in the manufacturing sector has been booming — up more than 50% since February 2022.

Meanwhile, RSM says the latest inflation readings reaffirm its belief that an end to the Fed’s interest rate hikes is “only a couple of months away.” 4/6/2023

OSU Professor Predicts Mild Recession

Ned Hill, professor of economic development at The Ohio State University’s John Glenn College of Public Affairs, says he believes there will be a “shallow recession” in the near future, according to Crain’s Cleveland Business (subscription).

Speaking at an event hosted by OMA Connections Partner MAGNET, Hill said Ohio will not be hit as hard as during the 2008 recession, adding that tech sector layoffs could lead to workforce gains for regional manufacturers. Meanwhile, manufacturing’s technological transformation will continue, Hill said. 4/3/2023