News and Analysis
Ohio is the ninth-largest exporting state with exports valued at $56.8 billion, according to this official report. Six categories — industrial machinery, vehicles, aircraft, pharmaceuticals, plastics, and electrical machinery — account for $32.2 billion (57%) of the state’s total exports.
The Ohio Department of Development assists manufacturers that want to enter new export markets or increase export activity. See this overview of the agency’s services, including export grant programs and counseling. 10/2/2023
The Ohio Department of Taxation has issued new employer income tax withholding tables that reflect the tax relief provided in the state’s two-year budget. Lawmakers narrowed the number of state income tax brackets to two (2.75% and 3.5%).
The new withholding guidelines apply to payrolls ending on or after Nov. 1. Employers can request more information via e-mail through this site.10/4/2023
With a federal government shutdown looming, key tax provisions are currently being considered by Congress. As noted in this story, the National Association of Manufacturers is advocating for a federal tax landscape that promotes manufacturing competitiveness. This includes immediate passage of bipartisan legislation to restore R&D expensing.
Learn more at NAM’s R&D action center. 9/26/2023
Earlier this month, the IRS provided interim guidance on the requirement to capitalize research and experimental expenditures. OMA Connections Partner Schneider Downs has published this insight, noting that research and experimental costs are now required to be amortized over a five-year period for U.S.-sourced costs, and over 15 years for foreign expenditures. 9/25/2023
OMA Connections Partner Plante Moran has posted this on-demand webinar on the Section 45X advanced manufacturing production credit contained in the federal Inflation Reduction Act. The credit is designed to help companies that manufacture and sell a variety of energy components to support clean and renewable energy production. 9/27/2023
On Capitol Hill, there’s movement to re-instate tariff reductions that expired in 2020. OMA Connections Partner CliftonLarsonAllen has provided this update. 9/28/2023
A new comparison and interactive map published by the Tax Foundation examines purchasing power in America, weighing the relative value of $100 in different regions and metropolitan areas. According to the Foundation, $100 tends to go further in the Southeast and Midwest, including Ohio. 9/28/2023
Nearly all smaller businesses — including corporations, partnerships, and LLCs — will be impacted by the federal Corporate Transparency Act, which take effect Jan. 1, 2024. Significant civil and criminal penalties, up to and including imprisonment, may be imposed for failure to comply with the CTA.
Bricker Graydon, the OMA’s general counsel, has published the DevelopOhio Economic Incentives Toolkit, which outlines various federal, state, and local tools available to businesses. Specifically, it identifies incentives, clarifies changes to existing programs, and introduces new options for companies to consider. 9/18/2023
The IRS recently announced a moratorium on processing new employee retention credit (ERC) claims through the end of the year to better assess fraudulent claims before issuing refunds. Read insight from OMA Connections Partners CliftonLarsonAllen and HBK. 9/18/2023