INVESTOHIO TAX CREDIT PRESENTS NEW OPPORTUNITY
By Richard Weidrick CPA, PFS 4853_Myths_MDNEWS.qxp:Layout 1 8/3/11 10:41 AM Page 2 P MYTH:
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HYSICIANS ARE CONSTANTLY looking for investments out- side of their medical practices. Whether or not they should
commit monies to these investments is another issue altogether but there is a newly adopted Ohio law which should be considered. Signed into Ohio law this summer, the InvestOhio Tax Credit provides that investments made in "qualifying small business enterprises" may be eligible for a nonrefundable tax credit that can be used to offset Ohio income taxes. Qualifying small business enterprises
are defi ned as having a minimum of 50 employees in Ohio or at least a majority of U.S. based employees located in Ohio. Additionally, the small business cannot exceed $50 million in assets or annual sales volume of $10 million. The amount of the credit is 10% of the
qualifying investment and can be claimed for a direct investment by the individual or an indirect investment that is made by a partnership or S-corporation. Any amount of the credit that is not utilized in the fi rst year of eligibility can be carried forward for 7 years. The tax credit is available only after
a holding period is satisfi ed. For invest- ments made before June 30, 2013 the holding period is 2 years and for invest- ments made after June 30, 2013 the holding period is fi ve years. Despite these limiting qualifi cations,
this new credit provides opportunity to offset Ohio based income taxes and requires additional analysis in determin- ing the viability and rate of return of any potential investment opportunity. Rich Weidrick is a CPA and a principal of
Weidrick, Livesay, Mitchell & Burge, LLC, in Akron. n
48 | Cleveland-Akron-Canton MD NEWS MDNEWS.COM SEPTEMBER-OCTOBER 2011
