Tax and Finance

Cleveland is home to one of just 12 Federal Reserve Banks in the country, giving Ohio a direct connection to the institution whose decisions influence interest rates, borrowing costs and business investment nationwide.

On Nov. 2, the Federal Reserve Bank of Cleveland will host a free Fed Talk exploring why Cleveland was selected and how geography, economics and politics shaped the Fed’s regional structure. Economist emeritus Owen Humpage will examine the history behind the system and why its regional presence still matters today.

“Ohio has a seat at a table where decisions about interest rates and the economy are made,” said Jacob Sargent, director of public policy services for the Ohio Manufacturers’ Association. “When manufacturers are weighing multimillion-dollar investments, those decisions have consequences well beyond Wall Street. Understanding how Ohio’s industrial economy fits into that process matters.”

The event offers manufacturers an opportunity to better understand the Federal Reserve’s regional role and its connection to the economic conditions shaping decisions about equipment purchases, expansion and hiring. Participants can attend virtually or in person, with an optional tour of the Cleveland Fed’s historic 1923 headquarters. 10/16/2026

Bayer is planning a $2.2 billion pharmaceutical manufacturing facility in New Albany, another major vote of confidence in Ohio’s workforce, infrastructure and manufacturing environment.

The project is expected to create about 600 permanent jobs and 1,500 construction jobs, with the site producing medicines used in oncology, cardiovascular and renal care. Bayer also plans to incorporate advanced digital and automation technologies throughout the facility.

The investment will deepen central Ohio’s advanced manufacturing base while bringing a significant level of new capital, high-value pharmaceutical production, sophisticated automation and hundreds of technical jobs to the region.

“Bayer’s decision to make this kind of long-term investment in Ohio says a great deal about the strength of our manufacturing ecosystem,” said Ryan Augsburger, president of the Ohio Manufacturers’ Association. “This is exactly the kind of project that creates opportunity, builds technical talent and strengthens Ohio’s position as a place where global manufacturers can grow.” 10/5/2026

Ohio’s 90-day gas tax holiday is taking effect after Gov. Mike DeWine signed legislation yesterday temporarily suspending the state’s gasoline and diesel taxes.

Sub. House Bill 519 eliminates Ohio’s 38.5-cent-per-gallon gasoline tax and 47-cent-per-gallon diesel tax during the 90-day period. Lawmakers estimate the suspension will provide about $725 million in savings, while state surplus funds will replace the lost revenue to keep road and bridge projects funded.

The General Assembly approved the bipartisan measure Sept. 30. 10/1/2026

Manufacturers worldwide installed a record 603,000 industrial robots in 2025, an 11% increase, bringing the number operating in factories to more than 5 million, according to the International Federation of Robotics. The United States installed nearly 38,500 robots, while China accounted for 59% of global installations.

The figures highlight the scale of global investment in manufacturing technology as companies seek to improve productivity and remain competitive. Advances in artificial intelligence, machine vision and easier programming are expanding automation options, but investment decisions continue to depend on each manufacturer’s operations, workforce and business needs.

“Technology investments have to make sense for the manufacturer,” said Jacob Sargent, director of public policy services for the Ohio Manufacturers’ Association. “Our focus is on tax policies that give Ohio companies the flexibility to invest in their facilities, equipment and people based on their individual needs.” 9/28/2026

Ohio lawmakers are expected to interrupt their election-season recess and return to Columbus on Wednesday to pass a 90-day suspension of the state’s motor fuel tax.

The plan was announced Monday by Republican gubernatorial nominee Vivek Ramaswamy with House Speaker Matt Huffman and Senate President Rob McColley. It would pause the 38.5-cent-per-gallon gasoline tax and the 47-cent-per-gallon diesel tax. Leaders are expected to lay out details at a press conference Wednesday, and they will introduce legislation this week. Democratic nominee Amy Acton called for a similar gas tax holiday earlier the same day.

The lost revenue would likely be replaced with either Ohio Department of Transportation funds, state revenue, or the rainy-day fund. Gov. Mike DeWine has previously opposed suspending the tax because it funds road and safety improvements.

“Diesel moves every raw material into an Ohio plant and every finished product out of it, so at record prices a 47-cent break is real relief across the supply chain,” said Jacob Sargent, director of public policy services for the Ohio Manufacturers’ Association (OMA). “Manufacturers also depend on a well-maintained road network, so we will be watching to make sure this relief is paid for in a way that protects long-term infrastructure investment.”

OMA will monitor the legislation and keep members informed. 9/22/2026

Longtime Ohio Manufacturers’ Association (OMA) member The Elmet Group is set for a major expansion of its role in the U.S. defense supply chain following a $450 million federal investment announced this week.

The Department of War said the preferred equity investment will expand domestic tungsten processing capacity and strengthen U.S. access to a critical material used across missiles, aerospace, naval systems, electronics and other advanced manufacturing applications. Elmet, an OMA member since 1990, is the only U.S.-owned, fully integrated producer of tungsten and molybdenum materials and components.

“Elmet has spent decades building capabilities that are difficult to replicate and increasingly important to the country,” said Jacob Sargent, OMA director of public policy services. “This investment recognizes the value of having that production capacity in Ohio and gives the company room to grow it.”

The investment is expected to preserve high-paying manufacturing jobs at Elmet’s Euclid operations while supporting approximately 1,200 downstream jobs across manufacturing, engineering and logistics.

Elmet currently supports more than 100 U.S. defense programs, including the F-35, Patriot PAC-3 and Virginia- and Columbia-class submarines. 9/14/2026

Ohio manufacturers got a timely look at the tax issues likely to resurface when lawmakers return for lame duck during Thursday’s Ohio Manufacturers’ Association (OMA) Tax and Finance Committee meeting.

Senate Ways and Means Committee Chair Louis Blessing joined members to discuss the legislative outlook, while Ohio Tax Commissioner Patricia Harris and Deputy Commissioner Anna Marin Russell provided an update from the Ohio Department of Taxation. The committee also reviewed property tax activity, implementation of recent federal tax changes in Ohio and a growing list of proposals affecting the state’s business tax climate.

Among the issues OMA is tracking are proposals to prohibit new data center sales tax exemptions, along with other tax and economic development measures that could affect investment decisions across Ohio.

“There is a lot sitting in front of lawmakers between now and the end of the year, and some of it could have a real impact on manufacturers’ tax bills and investment plans,” said Jacob Sargent, OMA director of public policy services. “Our job is to make sure members know what is coming and that their perspective is part of the debate before decisions are made.” 9/10/2026

Ohio’s rapidly growing data center industry is creating a new set of tax and economic questions, and members will get a closer look at them during the Ohio Manufacturers’ Association (OMA) Tax and Finance Committee meeting Thursday, Sept. 10.

The discussion will feature Ohio Tax Commissioner Patricia Harris and Deputy Commissioner Amy Marin Russell on key state tax issues, along with state Sen. Bill Blessing, chair of the Senate Ways and Means Committee, on tax policy priorities in the General Assembly.

“Ohio’s tax policy is changing alongside the state’s economy, and manufacturers need to understand where those changes are headed,” said Jacob Sargent, OMA director of public policy services. “This meeting gives members a direct line to some of the people making those decisions and a chance to dig into what they could mean for their businesses.”

The meeting will also examine the tax and economic implications of Ohio’s growing data center industry, along with the latest legislative developments affecting manufacturers.

The business meeting runs from 10 a.m. to noon, followed by a networking lunch for those attending in person. Members can also participate via Zoom.

Register now to join the discussion. 9/4/2026

Ohio Tax Commissioner Patricia Harris and state Sen. Bill Blessing will join the Ohio Manufacturers’ Association’s (OMA) Tax and Finance Committee on Thursday, Sept. 10, for a timely discussion of the tax issues gaining attention at the Statehouse.

Harris, joined by Deputy Tax Commissioner Amy Marin Russell, will provide an update on key state tax issues, while Blessing, chair of the Senate Ways and Means Committee, will discuss the General Assembly’s tax policy priorities. The committee will also take a closer look at the tax and economic implications of Ohio’s rapidly expanding data center industry.

“There’s no shortage of tax issues competing for attention right now, and data centers have added another big one to the mix,” said Jacob Sargent, OMA director of public policy services. “Having Senator Blessing and Commissioner Harris in the room gives members a chance to get past the headlines and hear where these conversations are actually headed.”

The meeting will be held from 10 a.m. to noon at OMA offices and via Zoom, followed by a networking lunch for in-person attendees. Register now to join the conversation and hear directly from the policymakers shaping Ohio’s tax landscape. 8/28/2026

The Ohio Supreme Court has upheld the state’s financial institutions tax, rejecting a challenge from Pittsburgh-based Dollar Bank that argued Ohio’s tax structure discriminates against interstate commerce.

The unanimous decision found Ohio’s tax is fairly apportioned because it applies only to the share of a financial institution’s equity capital tied to business conducted in the state. The ruling offers another indication of how Ohio courts are approaching tax apportionment and interstate commerce issues that can affect the broader business community.

“While this case involves financial institutions, the court’s analysis is worth watching across Ohio’s business community,” said Jacob Sargent, director of public policy services for the Ohio Manufacturers’ Association. “A predictable and constitutionally sound tax system is an important part of maintaining a competitive business climate.” 8/18/2026

The U.S. Department of the Treasury has released new guidance outlining how employers can contribute to Trump Accounts, a new tax-advantaged savings option for employees’ children.

Under the guidance, employers may contribute up to $2,500 annually to an employee dependent’s Trump Account without the contribution being included in the employee’s gross income. Employees also may make pre-tax contributions through an employer cafeteria plan.

Employers that establish a contribution program will need a separate written plan, employee notices and annual statements, along with required reporting and verification procedures. Treasury says more than 50 companies have already committed to offering Trump Account contributions.

“Manufacturers are competing hard for talent, and this gives employers another tax-advantaged benefit to consider,” said Jacob Sargent, managing director of public policy for the Ohio Manufacturers’ Association. “The guidance gives businesses a much clearer picture of how the program works and what it would take to offer it.” 8/12/2026

The IRS has updated its guidance on the new federal tax deduction for qualified overtime pay, giving employers more detail on what they will need to report beginning with the 2026 tax year.

Under the new rules, qualified overtime generally must be reported separately on employees’ Form W-2. The deduction applies only to the overtime premium required under federal law, not the employee’s full overtime wages.

Employees may deduct up to $12,500 in qualified overtime pay each year, or $25,000 for joint filers, subject to income limits. Overtime wages remain subject to regular income-tax withholding and payroll taxes.

“Overtime is a fact of life on Ohio shop floors, so accurate payroll reporting is going to matter,” said Jacob Sargent, managing director of public policy for the Ohio Manufacturers’ Association. “The updated guidance gives employers a clearer roadmap for getting this right and making sure workers can take full advantage of the new deduction.” 8/12/2026

Ohio’s annual sales tax holiday runs through Sunday, Aug. 9, with a narrower list of qualifying products than businesses encountered during the state’s expanded holidays in recent years.

The exemption applies to clothing priced at $75 or less per item and school supplies or instructional materials priced at $20 or less per item. Manufacturers and other businesses selling qualifying goods should ensure eligible in-store and online transactions are processed correctly. Purchases made for business use remain taxable.

“Businesses selling qualifying products should review the Ohio Department of Taxation’s guidance and make sure the exemption is being applied correctly throughout the weekend,” said Jacob Sargent, director of public policy services at the Ohio Manufacturers’ Association.

The return to the traditional three-day format follows the repeal of Ohio’s expanded 2026 sales tax holiday under legislation that also addressed property-tax relief. 8/7/2026

U.S. business investment showed fresh strength in June as new orders for core capital goods rose 0.9%, beating expectations, while shipments surged 1.9%, their largest monthly increase in four and a half years.

Demand was particularly strong for computers and electronic products, electrical equipment and primary metals. The gains suggest businesses are continuing to invest in technology, machinery and productive capacity despite elevated borrowing costs and lingering economic uncertainty.

Equipment spending is an important indicator of business confidence because it reflects decisions to modernize operations, improve productivity and prepare for future demand. Continued capital investment can also support stronger order books across equipment, components and industrial supply chains.

“Businesses invest when they see opportunity ahead,” said Jacob Sargent, director of public policy services for the Ohio Manufacturers’ Association. “These numbers suggest companies are looking beyond the immediate uncertainty and continuing to modernize, expand and prepare for future demand.” 7/30/2026

Small business confidence improved in June as owners reported stronger expectations for business conditions, sales and capital investment.

The National Federation of Independent Business Small Business Optimism Index rose 2.1 points to 97.4, moving close to its 52-year average of 98. Expectations for better business conditions improved for the first time this year, while expectations for higher real sales also posted a strong gain. Twenty percent of owners plan to make capital investments in the next six months, the highest reading of 2026.

“The improvement in sales expectations and capital investment plans is an encouraging sign,” said Jacob Sargent, director of public policy services for the Ohio Manufacturers’ Association. “Business owners remain cautious, but the June results suggest confidence is beginning to return as financing costs ease and the economic outlook improves.”

There were also positive signs on financing and future pricing. The average rate paid on short-term loans fell to its lowest level since October 2022, and the share of owners planning near-term price increases declined. Inflation remains the top concern, but the June results suggest business owners are feeling more confident about the months ahead. 7/22/2026

Manufacturing activity continued to strengthen in late May and June, according to the Federal Reserve’s latest Beige Book. Production grew modestly to moderately across most Federal Reserve districts, supported by stronger orders for machinery, defense and data center projects. Employment also increased in manufacturing, even as employers continued to report difficulty finding technicians and skilled tradespeople.

Ohio’s regional outlook was especially encouraging. The Cleveland Federal Reserve District reported that manufacturing demand rose moderately and broader business activity increased, with faster growth expected in the coming months.

“Ohio manufacturers are ready to meet growing demand, add jobs and invest,” said Jacob Sargent, director of public policy services for the Ohio Manufacturers’ Association. “The opportunity is real. Now we need the workforce, reliable energy and competitive business climate to turn that momentum into lasting growth.” 7/15/2026

Ohio closed fiscal year 2026 roughly $1.75 billion ahead of budget projections, according to the Ohio Office of Budget and Management.

State tax collections exceeded estimates by approximately $1.04 billion, while spending also finished below projections. The results provide another sign of Ohio’s strong fiscal position as policymakers consider future tax, spending and budget decisions.

“Ohio’s strong fiscal finish is good news, but it should not become an excuse for a new round of permanent spending,” said Jacob Sargent, director of public policy services for the Ohio Manufacturers’ Association. “Lawmakers should resist turning a strong year into permanent spending and instead pursue tax policies that make Ohio more competitive for investment, jobs and manufacturing growth.” 7/7/2026

Ohio property owners may soon have more options when challenging property valuations before county boards of revision.

The Ohio Supreme Court is accepting comments on a proposed rule amendment that would clarify that qualified non-lawyer professionals, including Ohio CPAs, may assist with valuation complaints. The change would allow these professionals to help file complaints, submit supporting documentation and appear at board of revision hearings.

Companies with large facilities, complex property records and significant fixed assets often face valuation questions that require financial and technical expertise. Supporters say the proposed change would give taxpayers a more practical path to make their case.

“Property tax appeals should be fair, practical and accessible,” said Jacob Sargent, OMA director of public policy services. “When valuations affect major facility investments and long-term operating costs, taxpayers should be able to rely on qualified professionals who understand the numbers.”

Comments are due July 13. 6/30/2026

The Ohio Department of Development will open the next round of the Ohio Opportunity Zone Tax Credit Program at 10 a.m. Friday, July 10, with $50 million in tax credits available for qualifying investments.

The program is designed to encourage investment in designated Opportunity Zones by providing state tax credits to eligible investors. Manufacturers considering qualified projects in Opportunity Zone communities should review the program requirements and application timeline ahead of the July opening.

“Ohio manufacturers make long-term capital investments that create jobs and strengthen communities,” said Jacob Sargent, director of public policy services for the Ohio Manufacturers’ Association. “Tools like the Opportunity Zone Tax Credit can help make those investments more competitive and support growth in communities across the state.”

Separately, Ohio has opened the process for the next round of Opportunity Zone nominations, with the state expected to receive 258 designations for the upcoming federal cycle. 6/26/2026

The Ohio Manufacturers’ Association (OMA) Board of Directors this week discussed House Bill 756, legislation that would create a research-and-development tax credit that can be applied against a business’s income taxes.

The bill mirrors Ohio’s existing research-and-development credit against the commercial activity tax, but businesses already claiming the CAT-based credit could not also use the new income tax offset. That structure raises a broader concern for manufacturers after lawmakers in 2023 exempted some businesses from the CAT while leaving others subject to the tax.

“This bill is well-intentioned, but it highlights why Ohio’s CAT should be left alone,” said Jacob Sargent, OMA director of public policy services. “When the legislature split the CAT into payers and exempt businesses in 2023, it divided the tax base. HB 756 now hands those exempt businesses a new R&D credit that CAT payers are barred from claiming. A fix like this inadvertently creates inequity in Ohio’s business tax environment.”

OMA will continue urging lawmakers to avoid piecemeal tax changes that create winners and losers among Ohio businesses and instead focus on a stable, competitive tax structure that supports investment, innovation and manufacturing growth. 6/17/2026