OAQDA Update on the COVID-19 Emergency
Notice on Project Type
The Ohio Air Quality Development Authority (OAQDA) is a non-regulatory agency created by the Ohio General Assembly in 1970. Using the tool of conduit financing, OAQDA qualifies projects for tax exemptions if the projects contribute to better air quality.
OAQDA helps businesses qualify machinery and equipment improvement projects for tax exemptions. The project does not have to be in response to a regulatory mandate.
Simply put, if the project or improvement cleans the air (directly or by being more energy efficient), in most instances it can be financed by you through OAQDA to achieve tax benefits.
OAQDA is committed to helping businesses obtain the most productive equipment in the most cost-effective ways possible to improve air quality and energy efficiency. In fact, many companies realize both tax savings and lower utility bills through additional savings on energy efficiency projects.
OAQDA offers attractive tax incentives for businesses seeking to improve their operations in the most cost-effective manner possible.
Each project uses traditional financing methods taken through the OAQDA process to receive the tax advantages. Projects financed through OAQDA are exempt from real property tax assessment, tangible property tax, sales and use taxes on equipment and calculation of the franchise tax for the life of the loan.
The tax savings improve your customer’s cash flow, which increases his or her ability to repay the loan.
The project must meet your lending standards. In other words, the loan must be "bankable;" the loan must meet the normal credit requirements of your lending institution. An OAQDA Bond does not provide any direct financing, guarantee or subsidy.
Most importantly, OAQDA enables you to provide your client an extra financial advantage that should increase customer loyalty. This added value gives you an advantage over your lending competition.