The State of Ohio’s Department of Development (ODOD) has established a Technology Division, overseen by Pat Valente, Deputy Director, to respond to the needs of cutting-edge firms looking to locate or expand in Ohio.The Division is charged with facilitating the research, development, and commercialization of technologies in partnership with business, academia, local communities, and other government agencies.Some of the Division’s premiere programs include:
Small Business Innovation Research Program (SBIR)
The Ohio SBIR Program is committed to helping small research-oriented firms compete for federal agency research and development (R&D) grants or contracts.The federal SBIR program was established in 1982 as a means of having federal agencies’ R&D needs met through the private sector.Small businesses respond to these needs by submitting 25-page proposals.The intended end result of the process is the commercialization of a product; the agencies are not interested in research alone.(SBIR also has a sister program—the Small Business Technology Transfer Program (STTR)—which requires that the small business collaborate with a non-profit research institution.
This program offers securities dealers, public utility companies, and corporate and individual investors an incentive to invest in technology-oriented firms. The program encourages investment in start-up and early-stage businesses that would otherwise encounter difficulty obtaining external capital. Ohio taxpayers that invest in small research-and-development and technology-oriented firms may reduce their state taxes by up to 25 percent of the amount they invest.Investors must invest in Ohio companies that are eligible for tax credit investments and are engaged in qualified trades or businesses. The investment must be a purchase of common stock, preferred stock, membership interest, partnership or other equity position that does not exceed $150,000.For a more detailed description of program requirements, visit
The NCIC Capital Fund works to enhance industrial competitiveness of existing commercial enterprises, to assist defense dependent companies commercialize and to help launch new technology based companies.
Among its services are financial, technical and management support which are provided to companies working in advanced materials, structures and processes, manufacturing technologies, machinery and equipment, and information networks, software and data systems.
To receive assistance, companies should submit a proposal which includes a well developed business plan. Proposals may be submitted at any time to NCIC,
3155 Research Boulevard, Suite 203, Dayton, OH45420.
The Governor’s Office of Science and Technology (GOST)
GOST seeks to help prepare the State for the shift to a knowledge-based economy from one based on manufacturing. As the complexity of technology increases, its effect on the lives of all Ohioans will be considerable. Economic growth, education, job and wealth creation, health care, and industrial stability will be dramatically effected by the inevitable changes that result from this shift.By facilitating communication between state funded intermediaries, research universities, two-year colleges, state and federal government, industry, and two of Ohio's federal research laboratories—NASA Lewis Research Center and the Air Force Research Laboratory at Wright Patterson AFB—GOST seeks to optimize the creation of a technology-based infrastructure, which will lead to a better quality of life for Ohio's citizens.
A primary role of GOST is to administer the Technology Action Fund (TAF).This program, established in 1998, provides monetary support for projects that contribute to the strength of the technological and industrial sectors of Ohio's economy
This is a $200 million fund that targets large R&D investments.The fund will aggressively pursue research and development operations/facilities and fund the cost of capital purchases.The program will fund 50% of eligible capital costs for companies making a minimum investment of $10 million in fixed assets, providing loans ranging in size from $5 to $25 million.Term will fall between 5-20 years based on project needs with a 3-5% fixed rate.
Businesses meeting the project requirements will be eligible for a dollar-for-dollar tax credit equal to the amount of principal and interest repaid on the loan up to $150,000 each year.
Research and Development Tax Credit
Ohio C-corporations are eligible for this non-refundable state corporate franchise tax credit for increases in qualified research expenses incurred in Ohio.“Qualified research expenses” are defined in Section 41 of the Internal Revenue Code and include in-house and contract research expenses.The amount of the credit is based on 7% of the amount of all qualified investment (in a specific year) exceeding the company’s three-year annual average investment in the county (three-year annual average investment is measured over the three years that precede the year for which the credit is claimed).The credit can be carried forward for up to seven years
Research and Development Sales Tax Exemption
This program provides significant tax savings for companies undertaking R&D activities in both direct and pure research.It exempts business from entire state and county sales tax for purchases of machinery and equipment used primarily for research and development.“Direct” refers to research conducted to design, create or formulate new or better products, equipment or processes.“Pure” refers to research for scientific or technological inquiry experimentation in the physical sciences.
