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State
Senator Bill Beagle...
Spurring
Investment in Ohio’s Struggling Communities
May 8 2012
Since
taking office in January 2011, I have had the pleasure to work on a
number of
reforms and policy measures that are helping to bring Ohio back to a
place of
economic prosperity. Ohio’s unemployment rate is now at its lowest
level since
October of 2008, having dropped to 7.5 percent.
Additionally, Ohio has added 83,000 new jobs
since the start of 2011,
and hard-working residents of our state are now able to take advantage
of new
and exciting opportunities.
However,
there remain a number of communities across Ohio where extreme
financial
hardship and poverty persist for families and signs of recovery are few
and far
between. To solve this problem, it is imperative that we provide area
businesses with the means to attract the necessary capital to create
jobs and
stimulate local economies. That is the driving force behind Senate Bill
327,
which I have introduced alongside State Senator Charleta Tavares (D –
Columbus). The
legislation aims to
improve upon an existing state tax credit that incentivizes small
business
investment in Ohio’s low-income areas.
Created in
2009, the New Markets Tax Credit program provides a 39-percent state
tax credit
over a seven-year spread on qualified investments in businesses located
in
low-income communities. So far, eight projects in various industries
and
sectors have been made possible through use of the credit, and I
believe there
is a way to build on this success.
Administrative
barriers and the program’s limited scope have not allowed us to explore
the
full potential of new markets tax credits in Ohio.
Senate Bill 327, will spur an additional $500
million of investment activity by increasing the annual credit cap from
$10
million to $50 million. Moreover, instead of restricting the release of
investment authority as Ohio currently does, our bill will allow the
full
amount of the program to be available immediately.
Policymakers
and community leaders have long struggled to find resolution to rising
poverty
rates and diminished hope in our state’s urban centers and secluded
rural
areas. Though far from a silver bullet, incentivizing capital
investment made
by job creators in these areas will go a long way in forging a new
level of
growth and opportunity for Ohio residents.
Now is the time to reinvigorate our struggling
neighborhoods and
communities by empowering the entrepreneurs and small business owners
who wish
to set up shop in Ohio. I
am confident
that by making these tax credits more available and exploring similar
public-private partnerships, our great state can continue its pursuit
of a more
prosperous tomorrow.
As always,
I welcome your thoughts and ideas concerning the matters we discuss at
the
Statehouse. You can reach my office by phone at (614) 466-6247, by
e-mail at
Beagle@ohiosenate.gov or by writing State Senator Bill Beagle, Ohio
Statehouse,
One Capitol Square, Columbus, OH 43215. I look forward to hearing from
you.
Senator
Bill Beagle serves the people of
Ohio’s 5th Senate District, which includes Miami County and portions of
Montgomery and Darke Counties.
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