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Ohio Senate Bill 225 Paves the Way for Greater Investment in Opportunity Zones and Historic Districts

Client Alert

Ohio Senate Bill 225 is poised to make dramatic enhancements to certain tax credit programs in Ohio, specifically those surrounding investments in “Opportunity Funds” and historic buildings. Signed into law by Governor Mike DeWine in June 2022, the Bill is positive news for real estate developers working to revitalize Ohio communities with investment and rehabilitation projects. 

Features include: 

Tax Credits for Opportunity Zones 

  • Awarded tax credits cannot exceed $75 million for the fiscal biennium beginning July 1, 2021, ending June 30, 2023; $50 million for fiscal year 2024; or $25 million for each fiscal year thereafter. 

  • A critical element of the Bill is that the term “taxpayer” is differentiated from the term “person,” allowing non-taxpaying entities to take advantage of the program as well as Ohio residents and taxpayers who have different qualifications. 

  • The tax credit equals 10-percent of the amount of the person’s investment in the fund that the fund invested during the immediately preceding investment period in Ohio opportunity zones, with a $2 million cap for all applicants.  

  • The investment period is the six-month period from January 1 to June 13, or from July 1 to December 31. 
  • In 2021, there were $10 million in tax credits left over; therefore the increase in funding incentivizes investors to contribute to low-income communities and opportunity zones with a high probability of being awarded credits. 

Tax Credits for the Restoration of Historic Buildings 

  • There is a $120 million limit on rehabilitation tax credits for 2023 and 2024, and $60 million of rehabilitation tax credits for each year thereafter. This allocation is doubled from the current $60 million cap. 

  • Total tax credits for any single project cannot exceed $10 million for any year. 

  • The certificate holder may claim a tax credit equal to 35-percent of the dollar amount indicated on the tax credit certificate if any county, township, or municipal corporation within which the project is located has a population of less than 300,000 according to the 2020 census, and 25-percent otherwise. 
  • For rehabilitations not exceeding 24 months, a rehabilitation tax credit certificate cannot be issued before the rehabilitation is complete. For rehabilitations not exceeding 60 months, a rehabilitation tax credit certificate cannot be issued before a stage of rehabilitation is complete.  

  • This program will be critical for continued investments by developers in low-income areas and will also serve in further expanding Ohioans’ pride through revitalization of Ohio’s most important landmarks. 

For more information about this opportunity, please contact Jason Butterworth at jabutterworth@bmdllc.com.


The NLRB Limits the Reach of Confidentiality and Non-Disparagement Provisions in Severance Agreements Overruling Trump-Era Policies

Employers should exercise caution and closely examine the content of severance agreements to ensure compliance with a recent National Labor Relations Board (“NLRB”) decision.  On February 21, 2023, the NLRB restricted the breadth of permissible language of confidentiality and non-disparagement clauses when it issued its decision in McLaren Macomb and overruled its Trump-era decisions in Baylor University Medical Center and IGT d/b/a International Game Technology.

Ohio Medical Board Releases New Telehealth Rules

On Tuesday, February 21, 2023, the State Medical Board of Ohio released its final telehealth rules to implement Ohio’s telehealth statute (O.R.C. 4743.09) for physicians, physician assistants, dieticians, respiratory care professionals and genetic counselors. Ohio’s advanced practice registered nurses (“APRNs”) should also take note of these rules. While the Medical Board does not govern APRNs directly, those APRNs who are required to have a collaborating physician and standard care arrangement (namely nurse practitioners, certified nurse midwives, and clinical nurse specialists) are still affected by the rules. Generally, if an APRN’s collaborating physician is limited in their practice, then the APRN will also be limited.

The End of the Public Health Emergency is (Finally) Here

The COVID-19 Public Health Emergency (“PHE”) that has been in effect for over three years is finally slated to end on May 11, 2023.[1] With the end of the PHE will come many changes for healthcare providers to be aware of; however, some changes may not come until much later.

Multi-340B Contract Pharmacy Locations on the Brink? The Third Circuit’s Ruling Gives a Hint.

The 340B drug discount program requires pharmaceutical manufacturers to offer to sell their products at significant discounts to safety net providers called “covered entities.” In 1996, the Health Resources and Services Administration (HRSA) issued guidance authorizing covered entities to enter into a contract pharmacy arrangement with a single third-party contract pharmacy, to which the manufacturer would ship 340B medications but bill the covered entity. In 2010, HRSA issued revised guidance permitting covered entities to enter into an unlimited number of contract pharmacy arrangements.

Five Opportunities for Operations and Compliance Excellence in 2023

With the holidays behind us and the rest of the year ahead, now is the perfect time to get your operational/compliance house in order! Though your list might be a mile (or an inch) long, here are five places to start.