Ohio Economic Development Law Update: Key Changes for TIFs, Property Tax Exemptions, Enterprise Zones and Opportunity Zones

This article originally appeared in the July 2026 edition of Development Incentives Quarterly.

Ohio’s H.B. 479, sent to the governor on June 12, 2026, contains several tax-related amendments of significance to developers, property owners, investors and political subdivisions involved in economic development projects. While the legislation addresses a broad range of tax matters, several provisions are particularly relevant to the structuring, administration and preservation of development incentives.

The principal development-incentive provisions address tax increment financing (TIF) exemption applications, temporary relief for certain enterprise zone property and the Ohio opportunity zone investment tax credit. Collectively, these amendments provide additional procedural flexibility, impose greater certainty on administrative review and create a time-limited mechanism to address certain historical exemption and compliance issues.

TIF Exemption Applications: Earlier Filing and More Predictable Review

H.B. 479 revises several aspects of the statutory process for obtaining TIF-related property tax exemptions.

First, the bill authorizes a TIF exemption application to be filed before the tax year for which the exemption is sought. Under prior practice, such applications generally were filed during the tax year to which the exemption would apply. The amendment should allow project sponsors and local governments to coordinate the exemption process more closely with project financing, construction schedules and related development approvals.

Second, the bill establishes an express deadline for action by the Tax Commissioner. As a general matter, the commissioner must approve or deny a TIF exemption application within one year after receipt. If the commissioner requests additional information within that one-year period, the decision must be issued by the later of the original one-year deadline or 120 days after receipt of the requested information. Failure to act within the applicable period results in deemed approval of the application.

Third, an approved TIF exemption application will apply not only to the parcel identified in the original application, but also to any parcel subsequently created from that parcel by split or combination. This clarification is significant for phased or master-planned developments in which parcel configurations may change after the initial incentive approval.

Taken together, these changes should reduce procedural uncertainty and improve the administrability of TIF exemptions for projects that depend on timely exemption approvals.

Temporary Relief for Certain Enterprise Zone Property

H.B. 479 also establishes a temporary remedial procedure for certain enterprise zone property that failed to receive exemption treatment because of filing, administrative or compliance issues.

Under the bill, the owner of qualifying enterprise zone property may apply, within 12 months after the bill’s 90-day effective date, for one or more of the following forms of relief:

placement of the property on the exempt list,
abatement of unpaid taxes, penalties and interest for qualifying years and
in some cases, credit or payment for taxes, penalties and interest that were previously paid.

The temporary procedure applies notwithstanding certain limitations that otherwise could restrict relief, including limitations relating to delinquent taxes that accrued under a prior owner or the existence of more than three years of delinquent taxes.

This remedial provision may be important for older projects, distressed assets and properties with legacy exemption or compliance issues. Because the application period is limited, affected owners and project stakeholders should evaluate potential eligibility promptly.

Opportunity Zone Tax Credit: Transition Relief and Affordable Housing Flexibility

H.B. 479 further amends the Ohio opportunity zone investment tax credit provisions to address transition issues arising from federal opportunity zone designations and to provide additional flexibility for certain affordable housing investments.

The bill provides transition relief for projects located in census tracts that are currently designated as opportunity zones but may not retain that designation under future federal rules. If the statutory requirements are satisfied, certain investments may remain eligible for the Ohio credit until the later of project completion or December 31, 2028.

In general, this relief applies where:

a person invested in an Ohio qualified opportunity fund before December 31, 2026, the fund invests that money in qualified opportunity zone property before December 31, 2028, and the investment is used to improve that property; or
a person invested in the fund, applied for a credit on or before January 10, 2028, and received an Ohio tax credit certificate.

The bill also expands flexibility for affordable housing transactions. Certain investments made within two years after project completion may qualify if the investment proceeds are used to repay financing that did not previously receive opportunity zone tax credits and that was used for the development, rehabilitation or preservation of affordable housing located in an Ohio opportunity zone.

Why These Changes Matter

Although these amendments do not fundamentally restructure the incentive framework for the foregoing programs, they refine several important statutory tools used in project finance and local economic development.

For TIF-supported projects, the amendments should facilitate earlier application planning and reduce uncertainty associated with administrative review. For enterprise zone property, the temporary abatement procedure may provide a limited opportunity to cure or mitigate historical exemption issues. For opportunity zone investments, the legislation offers transition relief and added structuring flexibility, particularly in connection with affordable housing transactions.

Looking Ahead

Developers, investors, property owners and local governments should assess whether the amendments affect pending or planned projects. In particular:

TIF-supported projects may benefit from earlier exemption filings and more predictable review timing.
Owners of enterprise zone property should evaluate quickly whether the temporary relief provision may apply.
Opportunity zone sponsors and investors should review project timing, filing deadlines and eligibility under the new transition rules.

The practical effect of these amendments will depend on the facts of each project, including project timing, parcel configuration, exemption history, financing structure and applicable filing deadlines. Early review may help preserve available incentives and avoid procedural issues that could affect exemption or credit eligibility.