Northeast Ohio could reap more than half the benefit of newly announced state tax credits intended to spark development. Key Community Development New Markets and Northeast Ohio Development Fund, both based in Cuyahoga County, were awarded $3 million and $2 million, respectively, in credits through the Ohio New Markets Tax Credits. All told, $10 million in credits were distributed to four funds in this first round of grants.

The credits are modeled after and supplement a federal program and are administered by the Ohio Department of Development. "By encouraging investments in areas of Ohio that need it most, we are ensuring future economic development opportunities and increased potential for new jobs," Director Lisa Patt-McDaniel said in a statement. "The Ohio New Markets Tax Credit program is one of the first of its kind in the country, and we are eager to see the new developments that come from this program."

Northeast Ohio Development Fund -- a joint venture between the Port of Cleveland, Ariel Ventures and Cohen & Co. accountants -- has identified several potential beneficiaries of the credits, according to the state, including the proposed Cleveland Aquarium, the Midtown Tech Park and the planned University Circle hotel.

Among the entities that Key may support are the Allen Theatre, which needs renovations, and Cleveland-based Ohio Solar Cooperative, an innovative, employee-owned company that leases and installs solar panels. Clients to date include the Cleveland Clinic, University Hospitals, Case Western Reserve University, the City of Cleveland, and the Cleveland Housing Network.

Ohio Solar is part of the Evergreen Cooperatives network, which may benefit in other ways from the credits. Another recipient of the credits, Finance Fund, based in Franklin County, has listed the Green City Growers Cooperative, Evergreen Medical Recycling and Evergreen Record Retention Cooperative and companies it may support.

Source: Ohio Department of Development
Writer: Frank W. Lewis