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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 works on a daily basis with a large and diverse number of financial service institutions that assist with the agency’s financing programs. Tax savings available from OAQDA for business-improvement projects of all sizes represent a value-added service for such institutions. And the process typically involves weeks, not months, to complete.
Notice on Project Type
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.
For your small business customers (100 employees or less), the Clean Air Resource Center (CARC), the small business outreach arm of OAQDA, seeks to find the most cost-effective means possible for small businesses to meet the requirements set by the Clean Air Act.
CARC strives to support the critical role played by small businesses in Ohio’s economy and recognizes the financial challenges presented by environmental regulations. CARC offers special services specifically for small business owners. In addition to helping small businesses pay for up-front costs of financing of air quality projects as well as principal pay down. A qualified small business must also, emit less than 75 tons per year of all regulated air pollutants, and emits 50 tons or less per year of any regulated pollutant. We provide access to technical assistance and one-on-one consulting to help business owners understand clean air regulations through cooperation with the Ohio Environmental Protection Agency's (OEPA) Office of Compliance Assistance and Pollution Prevention (OCAPP).
For more information about the small business assistance offered by the Authority, click here.