Ohio New Markets Tax Credit Program Update

Applications for Round 15 of the Ohio New Markets Tax Credit (ONMTC) Program opened Monday, January 26, 2026.

What Is This Credit?

Like the Federal New Markets Tax Credit (NMTC) Program, the ONMTC Program provides a subsidy to incentivize businesses in low-income communities. These “new market” areas are traditionally underserved by private-sector capital. The lack of access to capital stifles entrepreneurs and impedes growth, despite promising opportunities for investment and business expansion.

Also like the Federal NMTC Program, the ONMTC Program awards tax credit allocation authority to Community Development Entities (CDEs), which serve as an intermediary between investors and Ohio projects. The CDE uses the tax credit allocation to raise capital infusions for projects in low-income communities, often providing generous rates and terms.

Each year, $10 million in Ohio state tax credit allocation authority is available to CDEs. Per statute, each award shall not exceed $2,564,000. Since the program’s launch in 2011, Ohio has awarded $140 million to 22 CDEs, backing 125 projects statewide.

What Are the Benefits?

While the credit is claimed by financial institutions or insurance companies, the primary beneficiaries of this financing tool are the project and the community.

These main benefits are achieved through the following:

• Businesses in the low-income community receive well-below-market, non-traditional, or flexible loans to use as a capital infusion for their Ohio projects.

• The low-income community where the business is located receives increased investment in the area, new job opportunities, and potentially services or products that are made available through the new business.

Who Would Qualify?

The Ohio program works in direct conjunction with the Federal NMTC Program. The ONMTC Program is designed to steer a greater amount of federal allocation to the state by requiring proof of a commitment of federal NMTCs prior to the award of ONMTCs.

How Can Ryan Help?

Ryan’s team of NMTC professionals works with projects nationwide to secure valuable federal and state NMTC allocation for their projects. If you have a project that will promote economic and community impact through creation of living-wage jobs, increased access to vital community support services, or other measurable and demonstrable community impacts, engaging our NMTC team can help your project decrease its cost of capital by 15 to 25% by leveraging its extensive experience and wide network of CDE relationships.

If you’re unsure if your project is a fit for federal or state NMTC funding, reach out to our team.

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals.