With continued advancements in technology, as well as factors such as the high price of gasoline, more people are looking to work from home. In many cases, businesses are able to hire people who work from home offices. The benefits associated with this growing trend are easily identifiable. It reduces the number of cars that are on the road each morning and afternoon and provides opportunities for individuals who cannot easily travel to workplaces.

Believing that expanding job options for Ohio’s businesses and employees is key to growing a strong, prosperous economy, the state legislature recently passed a bill that makes it easier for employers to maintain home-based workers. The bill is an extension the Job Creation Tax Credit, which was established in 1993 to provide tax credits for businesses that expand or locate in Ohio.

House Bill 327 simply extends that program to companies that hire home-based employees. It permits an employer to apply for the credit if some of its employees perform most of their duties from their home residence. Additionally, the rate of pay for the employees must be at least 131% of the federal minimum wage.

Because this bill is expanding into a new area of business, it will begin as a six-year pilot program, at which time the program will be evaluated and further decisions of whether to maintain the program will be made. Having a six-year trial period will ensure that it receives proper scrutiny and will give the people of Ohio, as well as the legislature, information regarding its effectiveness. At the conclusion of six years, the Director of Development will conduct and submit a report detailing the effects that the home-based tax credit has had.

The ability for people to work from the comfort of their own homes has the potential to make an enormous impact for the health of area businesses and for Ohio’s economy as a whole. The tax credit pilot program outlined in House Bill 327 acknowledges this reality and gives additional tools to employers and employees to continue Ohio’s positive trend of job creation, and for that reason I was happy to support the legislation.


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