Representative Derek Merrin (R-Monclova Township) has succeeded in his efforts to repeal Ohio’s Financial Institutions Tax on Small Business Investment Companies, or SBICs. In September, Representative Merrin introduced House Bill 592, launching the drive to repeal the tax.
During the final legislative days of 131st General Assembly, Merrin’s HB 592 was included as an amendment to another piece of legislation, which passed the Ohio Legislature in December. Governor Kasich signed the legislation on December 27, meaning the law is anticipated to become effective by spring of 2017.
As a legislator, Merrin’s primary focus is improving Ohio’s economy. With the tax repealed, Merrin believes SBIC’s will find Ohio’s tax climate more attractive leading to further investments into Ohio’s small businesses.
“Our victory will encourage more capital investment into Ohio, which will lead to increased economic growth for our state,” said Merrin.
According to the Small Business Investor Alliance, SBICs have invested approximately $522 million in 135 Ohio small businesses since 2010. Their investments generate thousands of new jobs annually in varying industries, such as manufacturing, transportation, and healthcare. The Financial Institutions Tax levied on SBIC’s was found to discourage the investment funds from investing in Ohio.
“Thank you to Representative Derek Merrin for his efforts to repeal the Financial Institutions Tax on SBIC’s. This is a huge win for small businesses in Ohio,” said Chris Walters, Director of the Small Business Investor Alliance.
Representative Merrin said, “It was a team effort. I want thank the co-sponsors of the legislation; Representatives Ron Amstutz, Tim Schaffer, Scott Ryan, and Ryan Smith, as well as the Small Business Investor Alliance for their dedication. Without their support, the repeal would not have succeeded.”