A maximum of one-third of the project may be performed by subcontractors. Indirect costs may be included. Ohio's SBIR program offers assistance in notification of solicitations from federal agencies, topic selection, proposal review, and winner's support. The tax applies only to the income attributable to Ohio sources. Regular business income is allocated using a formula comparing the amount of taxpayer's property, sales, and wages in the state with the overall amount of these factors.
Separate taxes apply to public utilities, bond investment, and insurance companies.
A 5 percent use tax is levied on use, consumption, or storage of tangible personal property bought outside the state and brought into the state. Use tax does not apply to property subject to or exempt from sales tax. Counties can impose sales and use taxes up to 1.5 percent. Transit authorities can impose up to 1.5 percent. A sales tax exemption is applied to purchases of machinery and equipment used primarily in research and development.