Tax and Finance Management

Analysis: Tax Changes Under Ohio’s New Budget

Earlier this month, Gov. Mike DeWine signed Ohio’s FY 2024-25 biennial budget, which includes several significant tax provisions impacting individuals and businesses. OMA Connections Partner Thompson Hine has published this summary of the changes made to the Commercial Activity Tax (CAT) and the personal income tax, noting that “some of the reforms may stir debate on future funding of government services.” 7/18/2023

Analysis: Development Incentives in Ohio’s Budget

OMA Connections Partner Vorys has published this roundup of the economic development incentives included in Ohio’s new two-year budget. It includes summaries of the All Ohio Future Fund, broadband programs, and the Rural Industrial Park Loan Program. 7/19/2023

A Closer Look: Inflation Reduction Act’s Tax Credits

OMA Connections Partner Plante Moran has published this update regarding the federal Inflation Reduction Act’s incentives to boost clean and renewable energy production. The firm details some of the law’s key provisions, including tax credits for manufacturers. 7/18/2023

Economic Outlook Webinar, Aug. 3

At noon Aug. 3, OMA Connections Partner CliftonLarsonAllen will conduct its Q3 economic outlook with expert insights on the economy, industry activity, and financial markets. Learn more and register. 7/17/2023

Ohio Ends Fiscal Year With Record Balance

As Ohio’s 2023 fiscal year wrapped up on June 30, its FY tax receipts exceeded expectations by nearly $1 billion. See the state’s latest monthly financial report. For the fiscal year, Ohio collected $28.9 billion in taxes, 3.6% above projections. The personal income tax exceeded forecast revenue by $645.1 million (6.4%), while the Commercial Activity Tax collected $82.9 million more than estimated (4%). 7/10/2023

Producer Prices Nearly Flat in June

U.S. producer prices barely rose in June — up just 0.1% — as annual producer-inflation showed its slowest rate of growth in nearly three years, according to the latest federal data. In the 12 months through June, the core PPI — which excludes trade-services costs, as well as food and energy prices — rose 2.6% after increasing 2.8% in May. 7/13/2023

NAM Warns of SEC Overreach, ESG Activists

In Washington, D.C., the National Association of Manufacturers is urging Congress to protect manufacturers from recent actions by the Securities and Exchange Commission that would empower activists on the left and right to push narrow agendas by abusing the proxy ballot at public companies. Read more on this development and NAM’s letter to Capitol Hill leaders. 7/12/2023

R&D Tax Credit Update, July 20

The R&D tax credit has long been an opportunity for manufacturers to improve cash flow and reduce effective tax rates. But since January 2022, businesses have been unable to immediately write off R&D expenses, threatening the competitiveness of U.S. industry.

On Thursday, July 20, OMA Connections Partner RSM will host a no-cost webinar to provide updates on R&D tax policy, including the interplay of Section 174 with the Section 41 R&D credit; legal cases; and recent IRS activity. 7/13/2023

At a Glance: Beer Taxes by State

The beer industry is a key segment of Ohio’s food and beverage production, which provides around 60,000 jobs across the Buckeye State. According to the Beer Institute, “Taxes are the single most expensive ingredient in beer, costing more than the labor and raw materials combined.”

The Tax Foundation recently published this updated study examining beer taxes in all 50 states. Ohio imposes a relatively smaller tax burden on beer (18 cents a gallon) than many other states. 7/6/2023

RSM: Another Rate Hike Coming This Month

OMA Connections Partner RSM says recent economic reports show a much more resilient economy than expected. “Barring any shocks from the payroll and inflation reports later this month, we expect the Fed to hike its policy rate one more time, in July, to bring the rate to 5.5%,” the firm writes. 7/6/2023