customers. This relieves many businesses of substantial compliance costs. This only applies to the net profits tax and does not impact the withholding tax. • PILOT Extension for Renewable Energy Projects - Since 2010, Ohio’s permissive PILOT (Payment in Lieu of Taxes) mechanism for counties has spurred significant private investment in renewable energy development and brought significant new tax dollars to Ohio’s communities. The General Assembly extended the PILOT for four years and reduced the required ratio of Ohio-domiciled full-time equivalent employees on a new qualified clean energy project from 80% to 70%. • Newborn Screening for Duchenne Muscular Dystrophy - The budget added Duchenne Muscular Dystrophy – a rare and fatal pediatric disease – to Ohio’s Newborn Screening panel. Not only does increased access to preventative care lead to healthier outcomes, in this instance it will delay or outright halt the terrible manifestations of this disease. Big pharmaceutical companies such as Sarepta Therapeutics, with operations in Central Ohio, are leading the way with innovative research, development, and deployment of gene therapies to treat Duchenne, improve quality of life, and extend lifespans. Our Blueprint calls for eliminating disparities among at-risk communities, and the broad adoption of newborn screening for Duchenne shortens the time to diagnosis, helps close the gap in racial and ethnic disparities, and empowers families to make earlier and better-informed treatment decisions. The provision of this lifesaving screening also encourages and enables more biopharmaceutical companies to make private investments in Ohio-based facilities and faculty. An additional item worth mentioning relates to the Commercial Activity Tax (CAT) exemptions enacted in the final budget. At the request of Ohio Senate leaders, the OCC was asked to weigh in on their proposal to cut the Commercial Activities Tax (CAT). The OCC suggested an approach, which was ultimately adopted, of a phased exemption from the CAT for taxable gross receipts of $3 million or less in FY24, and taxable gross receipts of $6 million or less in FY25. The exemp- tions will provide tax relief to all businesses paying the CAT and, when fully implemented, will eliminate the CAT for approximately 90% of all Ohio businesses, or 145,000 of the current 163,000 CAT payers. The Legislative Budget Office projects the exemptions will reduce CAT receipts by about $238 million in FY24 and $460 million in FY25, amounting to $698 million total in CAT tax relief over the biennium. The Ohio Chamber applauds both the DeWine Administration and the Ohio General Assembly for the numerous investments in this budget to make Ohio a safe and vibrant destination to live, work, study, raise a family and operate a business. As we transition to the autumn legislative session, our Government Relations team is already working with legislators on standalone bills that align with the Blueprint or address areas that fell short in the budget. Stay tuned to our Legislative Update emails for future updates on our efforts. Given our policy wins in the state budget, we will also update and publish a revised list of our top ten policy priorities. As always, if you have any questions, comments or concerns about any of the measures within the state ope- rating budget and how they may impact your business, please contact our Senior Vice President of Government Affairs, Rick Carfagna, at rcarfagna@ohiochamber.com.
NEWS MAGAZINE
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