2025-04-02

Briana Cooper

Economic Development Programs

The Ohio House just released the most recent version of Ohio’s Budget, House Bill 96. Legislators are calling this an overall leaner Budget, when compared to budget cycles over the past few years. Nevertheless, that Bill offers several potential wins for the CRE industry, most of which we advocated for, and some of which we drafted. Importantly, it addresses proposed funding and policy improvements that are slated for multiple economic development programs which will have a direct impact on how much commercial real estate development activity gets done over the next two years, at a minimum. A summary of the main takeaways is set forth below.

  • Ohio Opportunity Zone Program – The Ohio House proposed $25 million per year in funding, in line with what the Governor proposed. We will continue to advocate for additional funding for that Program, that any funds remaining from the first year of the biennial cycle roll over to the second year of the biennial cycle, and shortening the application period to one week.
  • Transformational Mixed-Use Development Program – TMUD was due to sunset after this Fiscal Year. However, the Ohio House proposed to maintain that Program’s current funding level of $100 million per year beginning in FY 2026 and thereafter, with $80 million set aside for Major City Projects and a $40 million per project cap. While we advocated for more funding, this is a major win for the CRE industry. We’ll continue to push for additional funding and more specific scoring criteria to incentivize project readiness; to allow TMUD tax credits to be sold to insurance companies, individuals, and financial institutions; and for unused tax credits to be made part of future awards.
  • Brownfield Remediation Program – The House Budget calls for $125 million in funding per year, which is even more than we advocated for, which is another big win for CRE, especially considering that the Governor recommended no new funding. The House Budget would limit administrative costs for the Program to 2.5% per Fiscal Year. This funding will be redirected from the All Ohio Future Fund. We’ll continue to advocate for limiting awards to economic development projects.
  • Historic Preservation Tax Credit Program – The House incorporated our recommendations to remove building vacancy as part of the scoring criteria and to increase the percentage of rehabilitation costs to 35% for a project that is not located in a municipality with a population of at least 300,000. The House proposed $90 million per year, compared to the Governor’s recommendation of $120 million per year.
  • Demo & Site Revitalization Program – The House Budget calls for $20 million in each fiscal year to fund the Demolition & Site Revitalization Program.

Over the next few days, the Ohio House of Representatives will incorporate relatively few final edits into the House Omnibus Bill for a full vote on the House floor next week. Then that Bill will move to the Senate for further vetting and deliberation. We continue to advocate on behalf the commercial real estate industry to bolster support for these economic development programs, and for tailoring the standards as wisely as possible to benefit the commercial real estate industry and the State’s economy as a whole.

Stay tuned for additional details to follow as they are available.