Air-Quality Improvement Tax Incentives

July 20, 2023

Summary

The Ohio Air Quality Development Authority (OAQDA) provides assistance for new air quality projects in Ohio, for both small and large businesses. For qualifying projects, OAQDA can provide a 100 percent exemption from the tangible personal property tax (on property purchased as part of an air quality project), real property tax (on real property comprising an air quality project), a portion of the corporate franchise tax (under the net worth base calculation), sales and use tax (on the personal property purchased specifically for the air quality project only) as long as the bond or note issued by OAQDA is outstanding. Furthermore, interest income on bonds and notes issued by OAQDA is exempt from state income tax (and may be exempt in certain cases from the federal income tax).

Qualifying air quality facilities, which can be financed through the OAQDA, include:

1. Projects that modify or replace property, processes, devices, equipment, or structures that removes (or otherwise reduces, stores) air pollution and air contaminants.

2. Any property used for the collection, storage, treatment, processing, or final disposal of solid waste resulting from an air pollution control process.

3. Any energy efficiency or conservation project.

4. Any project that uses renewable or biomass resources, including ethanol and other biofuel.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	Ohio
Incentive Type:	Other Incentive
Web Site:
Administrator:	Ohio Department of Development
Start Date:
Eligible Renewable/Other Technologies:	Solar Water Heat Solar Space Heat Solar Thermal Electric Solar Thermal Process Heat Solar Photovoltaics Wind (All) Biomass Combined Heat & Power Landfill Gas Lighting Chillers Boilers Air conditioners Processing and Manufacturing Equipment Other EE Wind (Small)

Authorities

Name:

ORC 3706 et seq.

Contact

Name:	Information OAQDA
Organization:	Ohio Air Quality Development Authority
Address:	50 W Broad Street Columbus OH 43215
Phone:	(800) 225-5051

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.