Tax and Finance

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

A bipartisan bill moving through the Ohio House would clear up a quirky sales tax issue that has frustrated vending and micro-market operators for years. House Bill 762 would confirm that food sold through vending machines and self-service micro markets is treated as off-premises food and exempt from sales tax, bringing more consistency to how the law is applied across Ohio.

Backers say the current standard can hinge on something as arbitrary as whether tables and chairs are nearby, even when the operator has no control over the space.

“House Bill 762 is a commonsense fix that brings clarity and consistency to Ohio tax law,” said Jacob Sargent, director of public policy services for the Ohio Manufacturers’ Association.

The bill would preserve taxes on items already taxable, including soft drinks, sweetened beverages and coffee. 3/25/2026

At its Wednesday hearing, the House Public Insurance and Pensions Committee took up House Bill 376, legislation backed by the Ohio Manufacturers’ Association (OMA) as a needed step to keep Ohio’s unemployment compensation system from sliding toward another solvency crisis.

In written testimony, OMA said the state’s fund remains structurally vulnerable during downturns and warned that without reform, Ohio could again deplete the fund, borrow billions from the federal government and force employers to cover the cost through higher payroll taxes and special assessments.

OMA said the bill’s reduction in maximum benefit duration from 26 weeks to 20 weeks is a reasonable step toward long-term stability, especially at a time of low unemployment and persistent workforce shortages.

“Ohio employers should not be forced to bail out a broken system every time the economy turns,” said Jacob Sargent, director of public policy services for OMA. “House Bill 376 is about solvency, accountability and stopping history from hitting employers twice.” 3/18/2026

Gov. Mike DeWine has signed Ohio’s tax conformity fix, preserving the state’s alignment with federal tax law after lawmakers restored an emergency clause following pressure from an OMA-led employer coalition. OMA and allied groups warned that even temporary nonconformity would create unnecessary compliance costs and confusion during filing season. The final action gives employers needed certainty and keeps Ohio aligned with recent federal tax changes.

“Predictability in the tax code matters, and this fix gives employers the confidence they need to plan, comply and compete,” said Jacob Sargent, director of public policy services for the Ohio Manufacturers’ Association. 3/9/2026

The Ohio House has approved House Bill 332, legislation designed to strengthen Ohio’s defense industrial base by expanding access to reduced-rate financing for smaller defense suppliers.

The measure extends the state’s linked deposit loan program to Ohio companies that hold or have held a defense contract or subcontract and have less than $50 million in annual receipts. The program, administered in partnership with the Ohio Treasurer’s Office, allows eligible businesses to secure lower-interest loans through participating lenders.

Supporters say the change will help smaller manufacturers in the defense supply chain invest in equipment, expand production and compete for federal contracts while strengthening Ohio’s role in national security manufacturing.

The legislation now moves to the Ohio Senate for consideration. 3/4/2026

Ohio manufacturers gathered Thursday for the Ohio Manufacturers’ Association’s (OMA) first Tax and Finance Committee meeting of the year to examine state tax policy, economic trends and emerging fiscal issues shaping the operating environment for manufacturers.

Anna Marin Russell, deputy tax commissioner at the Ohio Department of Taxation, outlined developments in business, excise and energy tax administration, while Ohio House Tax Policy Committee Chairman Bill Roemer provided an overview of upcoming House initiatives and recent property tax reforms. Members also heard economic updates from JobsOhio and policy briefings from the OMA public policy team, including discussion of the proposed ballot initiative to abolish property taxes.

“These meetings work best when manufacturers challenge assumptions and bring real world perspective into the room,” said OMA Director of Public Policy Services Jacob Sargent. “It’s a dialogue, not a lecture, and that exchange helps policymakers understand how tax decisions actually play out on the shop floor.” 2/26/2026

The Ohio Manufacturers’ Association (OMA) organized a coalition of statewide employer groups urging lawmakers to restore tax conformity after Senate Bill 9 initially advanced without an emergency clause. The joint letter warned that even a temporary decoupling from federal tax law would impose avoidable compliance costs, administrative complexity and uncertainty during filing season.

The Ohio House on Wednesday reconsidered its prior action on the emergency clause and approved both the clause and the bill without debate, preserving alignment with federal tax policy. Employer groups emphasized that conformity has long been a bipartisan priority because it provides predictability and simplifies planning, filing and investment decisions.

“OMA brought employers together to make clear that temporary nonconformity would create real costs and confusion,” said Jacob Sargent, OMA director of public policy services. “The House’s decision to reconsider and pass the emergency clause shows policymakers heard that message and acted to preserve tax certainty for Ohio employers.” 2/25/26

Ohio voters could see competing property tax amendments on the November ballot, setting up a consequential debate over how levies are structured and how costs are shared among homeowners and employers across the state. Lawmakers and outside groups are advancing rival proposals, raising questions about long-term tax stability and the potential impact on business investment and local economic growth. Property taxes remain a significant operating cost tied directly to facilities, equipment and long term expansion decisions across Ohio’s manufacturing economy.

“Manufacturers can handle tough policy debates, but constant rule changes create uncertainty that makes it harder to invest, hire and compete in Ohio,” said Jacob Sargent, director of public policy services for the Ohio Manufacturers’ Association. “If constitutional amendments move forward without a clear focus on stability and competitiveness, employers and communities will feel the consequences for years.” 2/16/2026

Rick Kleban testified Wednesday in support of Senate Bill 9, urging lawmakers to align Ohio tax law with recent federal changes affecting research and experimentation expenses. Kleban, founder and president of Sycamore Growth Group, delivered testimony on behalf of the Ohio Manufacturers’ Association (OMA) before the House Ways and Means Committee.

Kleban said conformity with federal tax law provides manufacturers with administrative simplicity, business certainty and greater competitiveness. The bill would allow immediate deduction of domestic research and experimentation costs, reversing federal changes that require many companies to capitalize and amortize those expenses, creating cash-flow challenges.

“Conforming Ohio’s tax code to federal research and development policy gives manufacturers clarity and consistency when they are making long-term investment decisions,” said Jacob Sargent, director of public policy services at the OMA. “Senate Bill 9 helps reduce unnecessary complexity, improves cash flow for innovation and keeps Ohio competitive for high-value manufacturing and R&D jobs.” 2/11/2026

A new memo from the Ohio Office of Budget and Management lays out the sweeping fiscal fallout of a proposed constitutional amendment to abolish property taxes in Ohio, warning of billions of dollars in lost revenue for schools and local governments. The analysis raises sharp questions about how the state would replace funding that supports education, infrastructure and essential public services.

The memo cautions that eliminating property taxes would not make costs disappear, but could instead shift the burden to other taxes or destabilize local budgets, creating uncertainty for employers and communities.

“Property taxes pay for the basics that make communities work and businesses grow,” said Jacob Sargent, director of public policy services at the Ohio Manufacturers’ Association. “Scrapping them without a serious, workable replacement plan risks trading one problem for a much bigger one.” 2/9/2026

U.S. manufacturing activity returned to expansion in January as the Institute for Supply Management’s Purchasing Managers Index (PMI) rose above the 50 mark that separates contraction from growth.

The PMI increased from December’s level, reflecting stronger new orders and higher production after a slowdown late last year. It marked the first expansion reading in several months and suggested factories are seeing steadier demand at the start of 2026.

“An improving PMI signals growing confidence on factory floors,” said Jacob Sargent, director of public policy services at the Ohio Manufacturers’ Association. “Manufacturers respond quickly to changes in demand, and this data points to renewed momentum early in the year.”

Survey respondents said manufacturers boosted orders and rebuilt inventories in part to manage supply risks and cost pressures tied to tariffs and global trade conditions. Economists said the uptick points to improving momentum as companies adjust to shifting market conditions.

While inflation and trade policy remain important factors, the January reading adds to other signs that manufacturing output is stabilizing after a volatile period in 2025. The data suggest producers are entering the new year with firmer footing and a cautiously optimistic outlook for the months ahead. 2/3/2026

Ohio Senate Ways and Means Committee Chair Louis Blessing, R-Colerain Township, told Gongwer that lawmakers are unlikely to pursue major tax policy changes in 2026, pointing instead to a year focused on smaller, procedural measures rather than sweeping reforms. Of the 29 bills before the committee, Blessing said proposals with significant state costs are unlikely to advance, with attention centered on first hearings and limited-impact bills, including measures affecting nonfilers and agricultural land converted to conservation use. He said lawmakers may also revisit a proposal allowing partial property tax deferrals for eligible homeowners, though he noted fatigue after an intense property tax debate in 2025.

While major legislative action appears unlikely this year, attention is already shifting to a potential ballot initiative that would abolish property taxes entirely. A new legal analysis warns that eliminating property taxes would trigger defaults on local government debt, eliminate key economic development tools such as tax increment financing, and put school funding, public safety and infrastructure at risk without a replacement revenue source. 1/27/2026

Proposals to overhaul Ohio’s property tax system are raising alarms among school officials who warn the changes could destabilize local education funding if not paired with a clear, reliable replacement. With more than half of Ohio school funding tied to property taxes, district leaders say sweeping reforms without additional state support could force difficult budget decisions and create uncertainty for communities across the state.

That uncertainty matters for manufacturers, who rely on strong local schools to sustain workforce pipelines and community stability. “Manufacturers need tax reforms that deliver predictability without destabilizing the systems that support workforce development,” said James Lee, managing director of public policy services for the Ohio Manufacturers’ Association. “Strong schools and a competitive tax climate are not competing priorities. Ohio needs solutions that advance both.”

As lawmakers debate tax caps, rollbacks and broader restructuring, manufacturers are watching closely to ensure reforms improve affordability while preserving the foundational services that support long-term investment and economic competitiveness. 1/21/2026