Real Property Programs
Benefits Available For Businesses Planning:
- New Construction
- Facility Expansion
- Extensive Facility Rehabilitation
Enterprise Zone Program
In accordance with Ohio Law, communities may establish an Enterprise Zone that provides local officials with the ability to negotiate a tax incentive agreement with a prospective company. The Enterprise Zone Agreement is a contract between the community and the company. This contract must be executed prior to any portion of the project beginning. The community and business must be in agreement on all Enterprise Zone details before continuing the project. Ohio law requires specific references and commitments to be made within the agreement. The amount and term of the tax exemption are negotiated between local officials and the company. Legislation must then be passed by the appropriate local legislative authorities to provide final approval of the agreement.
Community Reinvestment Areas
Community Reinvestment Areas are areas of land in which property owners can receive tax incentives for investing in real property improvements. The Community Reinvestment Area (CRA) Program is a direct incentive tax exemption program benefiting property owners who renovate existing or construct new buildings. This program permits municipalities or counties to designate areas where investment has been discouraged as a CRA to encourage revitalization of the existing housing stock and the development of new structures. Currently, the Village of Millersburg and Holmesville are designated Community Reinvestment Areas.
Benefits Available For Businesses:
- Planned mass hiring of permanent positions
Job Creation Tax Credit (JCTC)
The Job Creation Tax Credit is a refundable tax credit to companies creating at least 25 new full-time jobs (within 3 years) in Ohio. The credit may also be available for certain high-wage industries creating 10 or more new full-time jobs within 3 years. The refundable tax credit is measured as a percentage of the state income tax withholdings for all new employees hired under the program, and is applied toward the company’s commercial activity tax liability. Should the amount of the credit exceed the company’s CAT liability for any given year, the difference is refunded. Approved projects generally range between a 25 and 55 percent credit for a period of 5 to 7 years. The business must apply for the credit before committing to the project.
Job Retention Tax Credit (JRTC)
The Job Retention Tax Credit is a non-refundable tax credit to companies retaining at least 1,000 full-time jobs in Ohio. Companies must also commit to new fi xed-asset investment of either $100 million, if the average wages of the retained jobs exceeds 400 percent of the federal minimum wage (equal to $20.60 per hour), or $200 million, if the average wages of the retained jobs does not exceed 400 percent of the federal minimum wage. The credit is measured as a percentage of the state income tax withholdings for all employees retained under the program. Approved projects generally range up to 75 percent for 10 years. The business must apply for the credit before committing to the project.
Product Development Programs
Benefits Available For Businesses:
Research and Development Investment Tax Credit
The R&D Investment Tax Credit is a non-refundable Ohio commercial activity tax credit for all investment in qualifi ed research expenses incurred in Ohio by eligible “C” corporations. Qualifi ed research expenses are based on Section 41 defi nitions in the U.S. Internal Revenue Code and include expenses for both in-house and contract research expenses. The amount of the credit is based on 7 percent of the amount of all qualifi ed investment in a specifi c year. The credit can be carried forward for up to seven years.