2019 Annual Report: Investing In Our Environment, Building A Stronger Ohio
OAQDA Update on the COVID-19 Emergency
Notice on Project Type
“As we were looking at sites for our new spent catalyst recycling and reclamation facility, we explored a number of domestic and global locations, but we kept coming back to southeastern Ohio. The support we received from the Muskingum and Guernsey County communities and the State of Ohio, including OAQDA who so generously issued tax-exempt bond financing for the environmentally beneficial project, enabled the Zanesville Plant to become a reality. We are profoundly grateful to these, and all other public and private sector partners, for their support and endorsement.”
– Tom Centa, AMG Vanadium President
A large business is one which employs more than 100 people. Businesses of all sizes are eligible for OAQDA financing assistance.
Eligible businesses may be, but not limited to those businesses which emit volatile organic compounds (VOCs), nitrogen oxides (NOx), or sulfur dioxides (SO2), use asphalt, rubber, metal finishers, plastics, or synthetic materials in the manufacturing or construction trades, or perform work involving the coating or painting of metal surfaces. Steel companies, automobile manufacturers, chemical and utility companies are all impacted by the requirement to control air emissions and would be eligible for OAQDA incentives.
Any business investment in energy efficiency or conservation is eligible. Any ethanol or other biofuel production facility is eligible.
An “air quality facility” is what can be financed through the OAQDA. An air quality facility is:
any modification or replacement of property, process, device, structure, or equipment that removes, reduces, prevents, contains, alters, conveys, stores, disperses or disposes of air contaminants.
any property used for the collection, storage, treatment, processing, or final disposal of solid waste resulting from an air pollution control process.
any energy efficiency or conservation projects,
any project involving the use of renewable or biomass resources, including ethanol and other biofuel production plants.
The entire definition of an air quality facility can be found in Ohio Revised Code Section 3706.01 (G).
All project requests are reviewed thoroughly by OAQDA to verify the expected performance of the project to improve air quality. The Executive Director makes the final determination to recommend a project application to the Authority Members for approval for it to serve as an air quality facility according to the definition in ORC 3706.
The OAQDA can offer a variety of tax incentives for projects improving air quality. These incentive can help you recover a portion of the investment in cleaner air and energy efficiency you many be considering.
OAQDA can provide a 100 percent exemption from the following taxes:
Real property tax – Any real property comprising an air quality project is exempt from real estate property taxes and assessments as long as the bond or note issued by OAQDA is outstanding.
Sales and use tax – All tangible personal property comprising an air quality project purchased or acquired specifically for that project is exempt from the state and local sales and use tax levied on the transfer or sale of that tangible personal property. The state sales tax rate is set at 5.0%. Sales tax rates vary by county as counties are authorized to levy additional, permissive sales taxes.
Interest income on bonds and notes issued by OAQDA – Any income generated from the ownership of bonds and notes issued by the OAQDA, the transfer of bonds and notes, and any profit derived from the sale of those bonds or notes is exempt from Ohio’s state income tax and in some cases, federal income tax.
Apply for OAQDA Financing
The Ohio Air Quality Development Authority (the “Authority”) pursues its mission to conserve air as a natural resource of the State by helping to finance air quality facilities for small and large businesses, utilities, governments, and universities. The Authority has received increasing interest for certain potential qualifying projects, meaning entities requesting the Authority to support proposed projects that involve the rehabilitation of an entire building or a new building in its entirety. In response to this interest, the Authority is working through a due diligence process that considers many factors for determining how these types of projects may quality for the Authority’s bond financing.
In reaching this determination, the Authority is actively researching all relevant information and formulating criteria, guidelines, and protocols for these types of projects. While the Authority is conducting its due diligence, it will not be accepting nor acting on pending applications that would be designated in this project category. As always, the Authority will continue to accept applications for projects that involve eligible energy systems, such as HVAC or lighting, that achieve an increase in energy savings above historical usage or existing energy codes based on the performance of these specific systems.
After the completion of this due diligence process, the Authority expects this matter will be before the Board in early 2020 when they may act to adopt, modify, or reject the recommended criteria, guidelines and protocols for these types of projects.