OHIO Bill aims to boost high-tech jobs

The bill also would increase income tax credits for some investments.
By JEFF ORTEGA
VINDICATOR CORRESPONDENT
COLUMBUS -- Ohio has little choice but to offer economic development incentives to foster high-technology employment to grow the economy, a Republican state senator said Wednesday.
"This is a critical time for us," state Sen. Ron Amstutz said. "Ohio must compete in the global high-tech economy."
The Senate unanimously approved and sent to the House Amstutz's bill that seeks to help the state do just that.
Parts of bill
The bill, a part of Republican Gov. Bob Taft's Third Frontier Project, an initiative to boost high-tech employment in the state, consists of three parts: The Ohio Research Commercialization Grant Program, The Research and Development Investment Fund and the Technology Investment Tax Credit Program.
The Ohio Department of Development would administer the programs.
According to the bill, the research commercialization grant program is designed to supplement federal research funding to help small technology companies.
Funding would be used for competitive grants to be awarded to smaller companies. The grants would help commercialize research.
The intent would be to limit grants to $187,500, Amstutz said. Each grant would require some matching funds.
The proposed research and development fund is designed to help attract and develop a new research and development operations to the state, under the bill.
Putting funds to use
According to Amstutz, the fund would be used to offer low-interest loans to companies seeking to establish a research site in Ohio. Loan repayments would be deposited back into the fund for future projects, he said.
Businesses would have to meet job-creation agreements, he said, and those that meet that would also be eligible for dollar-for-dollar tax credits equal to the amount of principal repaid on the loan.
Amstutz said the loan fund would be established initially at $50 million using state liquor profits.
Amstutz said the bill would also expand the Technology Investment Tax Credit.
Created in 1996, the program provides a tax credit against a firm's corporate income tax for those who invest in small Ohio-based research and development companies.
According to a legislative analysis, the bill would increase the amount of technology investment tax credit that may be issued from $10 million to $20 million.
The bill would also boost the amount of investments for which a technology tax credit can be claimed from $150,000 to $250,000, the analysis said.
Ann Husted, the governor's communications director, said the Taft administration was pleased at the bill's passage.