OMA Warns Against CAT Credit Expansions


This week the House Finance Committee had its third hearing on House Bill 475.  The bill expands Ohio’s current motion picture tax credit by increasing the total amount of credits that may be awarded from $20 million per fiscal year to $75 million per fiscal year.  Currently the vast majority of the claimed credits are taken against the commercial activity tax (CAT). The OMA sent a letter to House Finance Committee Chairman Ryan Smith (R-Bidwell) that said: “Manufacturers are concerned that any new carve-outs, exemptions, or credits could provide strain on the CAT forcing an increase in its rate.”