Tax and Finance

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

A proposal to abolish Ohio property taxes will not appear on the fall ballot after organizers said they would not submit signatures this year, but the issue is far from settled. Organizers have indicated they may continue the effort for a future ballot, making this a pause in the debate rather than the final word.

The development removes one major source of near-term uncertainty, while underscoring the need for a serious conversation about tax relief, local services and Ohio’s economic competitiveness.

“The hard part is not identifying the pressure point. It is designing relief that actually works,” said Jacob Sargent, director of public policy services for the Ohio Manufacturers’ Association. “Ohio should keep looking for ways to ease property tax pressure without creating new uncertainty for communities, employers and local services.”

Property taxes remain a significant concern across Ohio. But sweeping constitutional changes could create major questions for schools, local governments, public safety, infrastructure and economic development. Meaningful reform should lower pressure without trading one problem for another. 6/5/2026

The effort to abolish Ohio property taxes is running up against a fast-approaching deadline, with organizers facing a steep climb to qualify for the November ballot. Supporters must submit 413,487 valid signatures by July 1 and may need roughly 700,000 total signatures to account for invalid petitions. Organizers are expected to announce a signature total and “path forward” today.

The campaign has leaned on pop-up signing events, including one in the parking lot of a former TGI Fridays in Reynoldsburg, where 97 people reportedly signed petitions. It is a modest showing for a proposal that would eliminate roughly $24 billion a year in local revenue for schools, police, EMS, libraries, children services, mental health, aging services and other local needs.

“Ohioans are rightly frustrated by rising property taxes, but frustration is not a fiscal plan,” said Jacob Sargent, director of public policy services for the Ohio Manufacturers’ Association. “Abolishing $24 billion in local revenue without a credible replacement would create chaos for communities, schools and employers. Ohio needs serious tax reform, not parking-lot petition drives built around a blank space where the math should be.” 6/5/2026

Verizon’s latest Data Breach Investigations Report is a reminder that cybersecurity is no longer just an IT concern. It is a financial, operational and vendor-risk issue. The report found that exploiting software vulnerabilities has become the top breach entry point for the first time in the report’s 19-year history, while third-party involvement now accounts for 48% of breaches. The report also warned that employee use of unapproved AI tools is creating new exposure for employers. Finance leaders should treat cybersecurity as part of enterprise risk management, with disciplined patching, stronger vendor oversight and clear AI policies helping protect operations, customer data and the balance sheet.

“Cyber risk is financial risk,” said Jacob Sargent, the Ohio Manufacturers’ Association’s director of public policy services. “Manufacturers cannot afford to treat vendor access, outdated software or unapproved AI tools as someone else’s problem.” 5/26/2026

Ohio manufacturers may be able to capture significant savings through the state’s manufacturing sales tax exemption, but only if purchases are properly classified, documented and reviewed. Recent guidance highlights how Ohio’s manufacturing sales tax exemption can apply to purchases used primarily in qualifying production operations, including machinery, consumables, materials handling equipment and certain utilities.

The article highlights several areas where manufacturers can miss savings or create compliance risk, including utility exemptions that require a usage study, repair and replacement parts for production equipment, and dual-use equipment that must be evaluated under Ohio’s “primary use” test. The guidance also notes that companies may be able to seek refunds for sales tax paid on qualifying purchases within a four-year lookback window.

“Ohio’s manufacturing sales tax exemption can be a real bottom-line issue, but only if companies are applying it correctly,” said Jacob Sargent, director of public policy services for the Ohio Manufacturers’ Association. “Manufacturers should periodically review major equipment, utility and materials purchases to make sure they are not leaving savings on the table or creating avoidable compliance risk.” 5/21/2026

Most tradeshow investments don’t fail on the show floor. They fail in the weeks before and the 48 hours after. If your team is walking away with badge scans and good intentions but little to show for it, Ohio Manufacturers’ Association member Akhia lays out a practical framework for turning your next show into a measurable investment. 5/15/2026

A new survey of 300 finance leaders in manufacturing, financial services and retail highlights the growing pressure companies face from faster-changing tax compliance mandates. The report found 58% of respondents describe new and ongoing domestic and global tax compliance mandates as complex, while 44% say they are changing too quickly to manage effectively. It also found 75% agree that tax compliance limitations prevent their organization from being more strategic in business decisions.

The takeaway for manufacturers is clear. Tax compliance is no longer just a reporting function. Clean data and modern systems are becoming essential to reducing risk, keeping pace with regulatory change and making faster business decisions.

“Manufacturers are dealing with more than tax forms. They are managing complex supply chains, multiple jurisdictions, enterprise resource planning systems and growing pressure to use better data,” said Jacob Sargent, director of public policy services for the Ohio Manufacturers’ Association. “The companies that modernize their finance and tax systems will be better positioned to manage risk, move faster and compete.” 5/5/2026

Rising costs are pushing finance leaders to move beyond traditional belt-tightening and look harder at technology that can improve efficiency, forecasting and decision-making. The Journal of Accountancy reports that cost management is now the top internal risk for surveyed CFOs. More than half identified automation or technology upgrades as the most proven cost-control lever, while cloud-based planning, budgeting and forecasting tools, data analytics and AI ranked among the most important technologies for managing costs.

“Manufacturers are under constant pressure to protect margins while still investing for growth,” said Jacob Sargent, director of public policy services for the Ohio Manufacturers’ Association. “This is where finance modernization becomes more than a back-office issue. Better data, better forecasting and smarter automation can help manufacturers make faster decisions, control costs and stay competitive in a volatile economy.”

Manufacturers that turn better data into faster decisions will have a clear edge in protecting margins without slowing growth. 4/27/2026

The IRS has announced a new option for certain taxpayers to request more time after an Employee Retention Credit (ERC) claim is disallowed. Taxpayers generally have two years from the date of Letter 105-C or 106-C to resolve the claim administratively or file a refund suit in federal court, and filing an appeal does not extend that deadline. Eligible taxpayers with six months or less remaining may use Form 907 through the IRS Document Upload Tool while awaiting IRS review. Manufacturers with unresolved ERC claims should not assume the process is protecting their rights. Consult a tax adviser now. 4/29/2026

A grassroots campaign to abolish Ohio property taxes says it has collected about 305,000 signatures, still well short of its 620,000 target by mid-June. Organizers are trying to build a cushion above the 413,487 valid signatures required by July 1 to qualify for the November ballot, since campaigns typically need far more than the minimum because thousands of signatures are rejected during verification and county distribution rules also apply. Brian Massie, co-founder of Ax OH Tax, said the group will decide by mid-June whether it has enough support to move forward this year or wait and try again in 2027.

“This proposal may tap into real frustration, but it leaves major unanswered questions about how communities would replace a core source of local revenue,” said Jacob Sargent. “Ohio taxpayers deserve a serious plan, not just a slogan.” 4/23/2026

Your buyers may be evaluating your company without ever visiting your website. AI is reshaping how suppliers are discovered, and many manufacturers don’t realize they’ve already been filtered out. Learn more from Ohio Manufacturers’ Association member Akhia about how to stay visible in an AI-driven buying environment. 4/17/2026

Ohio tax collections continue to run ahead of expectations, giving lawmakers a stronger fiscal backdrop as they weigh budget decisions and potential tax policy changes.

State tax receipts for fiscal year 2026 are roughly $820 million above projections, with total collections reaching about $22.1 billion compared with expected revenue of $21.3 billion, according to recent state financial reports summarized by the Ohio Society of CPAs.

Several major tax categories are outperforming estimates. Sales tax collections exceeded projections by $78.5 million, helped in part by stronger-than-expected vehicle sales, while income tax receipts came in nearly $80 million above estimates for the month, or about 16.7% above forecast.

The stronger-than-expected revenue comes as lawmakers debate tax and spending decisions that will shape Ohio’s business climate.

“Strong revenues should not become an excuse for sloppy policymaking,” said Jacob Sargent, director of public policy services for the Ohio Manufacturers’ Association. “This is the moment to protect Ohio’s competitive edge, not gamble with the business climate that produced those numbers.” 4/15/2026

A growing push to abolish property taxes in Ohio is tapping into real frustration over rising tax bills, but the proposal could create serious new risks for employers across the state. Property taxes help fund schools, public safety, roads and other local services that support the workforce and infrastructure manufacturers rely on every day. Eliminating them would not erase those costs. It would shift them elsewhere through higher taxes, weaker local services or both.

The Ohio Manufacturers’ Association (OMA) said concerns about rising property tax pressure are legitimate, but warned that eliminating a major source of local revenue without a credible replacement plan could create even greater uncertainty for employers and the communities where they operate.

“This is the kind of idea that gets applause until someone has to explain how to pay for schools, roads and public safety,” said Jacob Sargent, OMA director of public policy services. “You can get rid of the property tax bill, but you cannot get rid of the bill itself.” 4/9/2026

IRS Notice 2026-16 gives manufacturers a clearer path to claim up to 100% first-year depreciation on qualifying U.S. production facilities, a major departure from the traditional 39-year schedule for nonresidential real property.

In a new article, Ohio Manufacturers’ Association (OMA) partner HBK says the guidance gives companies a practical framework for determining eligibility, including a 95% safe harbor and important exceptions for many self-rental structures.

“This is the kind of tax clarity that can shape real investment decisions,” said Jacob Sargent, OMA director of public policy services. “Companies planning facility projects should review this guidance now with their tax advisers.” 4/3/2026

House Bill 756, introduced earlier this month and referred to the House Ways and Means Committee, would create a new research and development tax credit that could be applied against a business’s income tax liability. Sponsored by Reps. Jack Daniels and Jim Thomas, the bill mirrors Ohio’s existing R&D credit under the Commercial Activity Tax (CAT) but would create a separate path for businesses outside the CAT structure.

The Ohio Manufacturers’ Association (OMA) generally opposes changes tied to the CAT, but this proposal does not directly amend that tax. Instead, it raises a broader question about whether Ohio should extend a similar incentive to businesses that are not subject to the CAT, while prohibiting taxpayers from claiming both credits for the same activity.

OMA is reviewing the proposal and seeking member feedback. Members who would like to share their perspective can contact Jacob Sargent, director of public policy services for the OMA. 3/25/2026