Resources

Client Alerts, News Articles, Blog Posts, & Multimedia

Everything you need to know about BMD and the industry.

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

Client Alert
July 26, 2022

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.

Jason A. ButterworthReal Estatetax creditsOpportunity ZonesEconomic Developmenthistoric preservation
Client Alert

Will Federal Legislation Open Cannabis Acquisition Floodgate?

February 18, 2021Are potential buyers quietly lobbying at federal and state levels to kick open the door to launch a new round of strategic acquisitions? Will presently pending federal legislation, the SAFE and MORE Acts, providing safe harbor for banks and re- or de-scheduling marijuana, be sufficient to mobilize into action major non-cannabis companies that previously shunned the cannabis industry due to the unknown implications of owning businesses whose activities are illegal under federal law?Client Alert

The Future of the Families First Coronavirus Response Act

February 3, 2021Over the last year we all have had to adjust to the new normal ushered in by the coronavirus pandemic. Schools and daycares closed, businesses transitioned from in-office work to work from home, bars and restaurants have closed their doors...all to slow the spread and try to prevent this pandemic from spiraling out of control. The start of the pandemic was utter pandemonium. Working parents trying to balance both caring for their now at-home children and their livelihood. Businesses trying to decide how to implement leave policies with limited information. Employees determining if they could financially afford to take time off. We were all flying by the seat of our pants trying to adjust to our new normal.Client Alert

Ohio Supreme Court Clarifies Medical Statute of Limitations

February 1, 2021The Ohio Supreme Court issued a decision in late December that clarifies and finalizes the Ohio law regarding the period of time in which patients can assert claims for medical malpractice. The Court was examining the interplay between three different statutes being the statute of limitations, the statute of repose, and the savings statute.Client Alert

Ohio Hospitals and Healthcare Clinics: It’s Time to Revisit Your Billing and Collection Practices

February 1, 2021According to a recent Cuyahoga County case, certain healthcare entities may not be protected from liability when engaging in unfair or deceptive billing acts. This decision is consistent with the growing trend across the country to encourage price transparency and eliminate unfair surprise billing practices by health care organizations. Now is the time for hospitals and other health care organizations to revisit their billing and collection policies and procedures to confirm that they are legally defensible and consistent with best practices.Client Alert

HIPAA Business Associate Agreements: Why These Contracts Matter

January 27, 2021No one loves drafting, reading or negotiating HIPAA Business Associate Agreements (BAAs). Yet many of us need to do so, and some of us do so daily. They are often boring, dense and technical, but BAAs are important from both a legal and a business perspective, and they deserve our attention. Failure to enter a BAA when one is required can constitute a HIPAA violation that results in substantial liability, as demonstrated by certain recent Department of Health & Human Services (HHS) settlements.1 A business associate who makes a disclosure that is not authorized by the applicable BAA or required by law can be subject to civil and, in some cases, criminal penalties. Further, parties are often presented with BAAs that contain onerous one-sided indemnification and other provisions that can be devasting to an organization in the event of a HIPAA breach. The significance of a BAA is often not fully understood by the parties until something goes wrong (e.g., a HIPAA security incident or breach, an Office of Civil Rights (OCR) audit or a fracture in the relationship between the parties) and, at that point, there is limited opportunity to mitigate legal and business risk. Ideally, attention should be given at the commencement of the business associate relationship, when the parties are able, to thoughtfully addressing regulatory requirements, planning and preparing for potential adverse events and appropriately allocating risk among the parties. As with most healthcare regulatory compliance initiatives, a proactive approach with respect to BAAs is preferable. This article provides a broad overview of certain BAA requirements and some practical negotiating tips for the parties involved.
Older posts
Newer posts