Corporate Tax Exemption for Energy Conversion
Ohio exempts certain property from real and personal property taxation, state sale and use taxes, and the state’s corporate franchise tax where applicable. The exemption applies to property used in energy conversion, thermal-efficiency improvements and the conversion of solid waste to energy. Generally, "energy conversion" refers to the replacement of fossil-fuel resources with alternative fuels or technologies; "thermal efficiency improvements" refers to the recovery of waste heat or steam produced in any commercial or industrial processes; and "solid waste conversion" refers to the use of waste to produce energy and the utilization of such energy. Eligible technologies include solar-thermal systems, photovoltaic systems, wind, biomass, landfill gas and waste-recovery systems. Upon receipt of certification from the tax commissioner, such property is exempt from Ohio’s sales and use tax. In addition, such property is not considered to be an improvement on the land for purposes of real property taxation or as ‘used in business’ for purposes of personal property taxation. Such property is also not considered in the assessment of Ohio’s corporate franchise tax. Contact: Business Taxpayer Assistance, Ohio Department of Taxation, 30 E. Broad Street, 22nd Floor, Columbus, OH 43215; 888-405-4039; Fax: 614-466-6401; http://www.state.oh.us/tax/
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