COLUMBUS, Ohio (WCMH) — Ohio’s latest budget proposal would continue a $100 million tax credit program for mixed-use projects, like $33 million for Capitol Square’s transformation and $5.8 million for Heath’s new downtown.
House Bill 96, passed by the Ohio House in April outlining the state’s next two-year budget, continues in perpetuity $100 million in annual tax credits through the Transformational Mixed-Use Development Program. The program, which awarded tax credits to nine Ohio projects in January, supports the construction or redevelopment of housing, retail, dining, office and entertainment developments across the state.
House legislators in support of the tax credits are at odds with Gov. Mike DeWine’s budget proposal released in February, which did not call for the program’s extension. Still, the governor previously boasted the tax credits and said the latest round is expected to create more than $1.1 billion in new payroll and $2 billion in investments in Ohio. Learn more about the House budget proposal in the video player above.
“As our state grows, it’s more important than ever that we are creating communities where current and future Ohioans can live up to their fullest potential,” said DeWine, when announcing the January tax credits. “By prioritizing developments that transform neighborhoods, we’re making Ohio a place where people will want to be.”
Among the nine developments awarded tax credits in January is the $573 million Capitol Square Renaissance project, redeveloping underutilized buildings and surface parking lots between Downtown’s Broad and Third streets. Allotted a $33 million tax credit, the project will feature more than 1,000 new residences, nine restaurants and 200,000 square feet of office space.
A $218 million project building a downtown for the city of Heath earned a $5.8 million tax credit, after the development’s first phase was also awarded by the program with an $8.5 million tax credit in 2024. This second phase will develop more than 729,000 square feet and include multi-family residential buildings and assisted living facilities.
NP Limited Partnership, Polaris mall’s developer, was awarded a $7.39 million tax credit for the $269 million Galaxy at Polaris project. The project’s first phase is home to 289 apartments, 37,000 square feet of commercial space, a dog park and an amphitheater. The second phase will span 1.7 million square feet with retail, more apartments, office space and restaurants.
Demolition is kicking off this year to make way for the $122 million Estrella project, which got a $4.5 million tax credit. Plans call for a 500,000-square-foot, 24-story tower to be built on the southeast corner of East Rich and South Fourth streets, currently home to single-story buildings that will face a bulldozer.
The $61 billion budget proposal is now under consideration in the Ohio Senate, which will need to negotiate changes and send the finalized fiscal document to DeWine’s desk by June 30.
