State legislators have finished their proposal for a two-year budget, which includes, among other provisions, a significant tax cut for Ohio small business owners.
The Plain Dealer reports that the plan would provide a 75 percent reduction for income taxes on a local small business owner’s first $250,000 of net income for the 2015 tax year. For the following year, they would not have to pay any state income tax on that same first $250,000 net income. Beyond that threshold, small business owners will be taxed at a 3 percent flat rate.
“The bill provides significant tax relief to Ohioans and small businesses with the purpose of keeping the state’s economy healthy and growing,” said Senator Scott Oelslager in an official statement. “[…] Millions of middle-class Ohioans will receive an income tax cut as a result of this legislation.”
It is estimated that the budget will provide over $1.8 billion in tax relief for local small businesses over the next two fiscal years.
The proposal was put together by a state Conference Committee during an overnight session concluding early Thursday, June 25. The Senate voted to approve the budget later that same day with a 23-9 vote. At the time of this reporting, the House has yet to take up the budget for a vote but is expected to pass it. Governor John Kasich has also indicated that he will sign the budget into law before Wednesday, July 1, which marks the beginning of the next fiscal year.
The climate for Ohio entrepreneurs to succeed and grow has never been better. If you’re looking to secure long-term, fixed-rate small business loans to expand your company, consult with Growth Capital Corp. today!
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