More investors have been taking advantage of Ohio’s federal Opportunity Zones that allow them to “delay and reduce their tax payments on capital gains,” Crain’s Cleveland reports, but will that trend continue? In early 2023, “the Ohio Department of Development issued $42.2 million” in tax-credit certificates tied to Opportunity Zone investments, “up from $26.2 million in credits a year before,” according to the article. While lawyers and consultants “say the credits are helping to lure out-of-state investors” to Ohio, “high interest rates, a rough real estate landscape and a lending pullback could dampen that activity.”
The Opportunity Zone program was created to incentivize investment in economically distressed areas; Ohio developed “a related state tax-credit program” which developers can use to fund projects in those areas. One developer who received state credits said, “Ohio seems to be the most pro-business” of all Midwest states, calling Ohio’s program “fundamental” to “making his projects work in a challenging economic landscape.” Terry Coyne, a real estate investor and broker in Cleveland, said, “I think it encourages investment — and it works. The state of Ohio credits are probably among the best in the country.” For more, read the full article (subscription may be required).
