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Energy Conversion Facilities Sales Tax Exemption

Eligible States OH
Type Tax Exemption
Area of Interest Energy Efficiency

It should be noted that Ohio's personal property taxes for general business filers have been phased out. However, public utilities are not considered "general business filers" and tangible personal property of public utilities is still taxed. Furthermore, for tax purposes, a business that produces electricity and sells excess electricity to others will be subject to personal property taxes as well. The state of Ohio offers tax exemptions for energy conversion, solid waste energy conversion, and thermal efficiency improvements. Conversion is defined as the replacement of fossil fuels with alternative fuel sources, including digester gas. 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.

Eligible Organizations Livestock Producer, Commercial/Industrial Business, Small Business
How to Apply To receive the exemption, a business must apply for an energy conversion certificate from the state Tax Commissioner. The application includes a narrative description of the facility and a descriptive list of component parts and materials incorporated or to be incorporated into the facility. Prior to the issuance of the certificate, the Tax Commissioner must obtain a written opinion from the Department of Development regarding the likelihood of achieving the estimated reductions in power consumption.
For More Information http://www.tax.ohio.gov/divisions/communications/publications/annual_reports/2008_Annual_Report/property_tax_public_utility_property.pdf.pdf Exit EPA Disclaimer
Primary Contact Business Taxpayer Assistance
Ohio Department of Taxation
30 E. Broad Street
22nd Floor
Columbus, OH 43215
(888) 405-4039

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