Biggins Lacy Shapiro & Company, LLC

Ohio Economic Development Incentive Programs

TAX CREDITS

Job Creation Tax Credit (JCTC):  Refundable and performance-based tax credit calculated as a percent of created payroll and applied toward the company's commercial activity tax liability. Should the amount of the credit exceed the company's commercial activity tax liability for any given year, the difference is refunded. Companies creating at least 10 jobs (within three years) with a minimum annual payroll of $660,000 and that pay at least 150 percent of the federal minimum wage are eligible for the credit; however, they must apply for the credit before committing to a project. The Ohio Tax Credit Authority must approve applicants before hiring begins.

Research & Development Investment Tax Credit:  This program provides a non-refundable credit equal to 7% of the amount of qualified research expenses in excess of the average investment in qualified expenses over the three previous tax years.  Unused credits can be carried forward for up to 7 years.

GRANTS

JobsOhio Economic Development Grant: Discretionary grants are available to support manufacturing, R&D, high technology, corporate headquarters, and distribution projects that involve substantial capital investment and job creation. Grant funds can be used for machinery and equipment purchase costs, new building construction and acquisition costs, infrastructure improvements and other fixed asset investments. 

JobsOhio Research & Development (R&D) Center Grant:  Discretionary grants are available to companies creating new R&D Centers in Ohio.  R&D Centers must support the development and commercialization of emerging technologies and/or products that align with one or more of JobsOhio’s targeted industries.  An R&D Center Grant may provide funding for a portion of the costs related to a new center over 5 years. R&D Center Grant funded activities are expected to create at least 5 new jobs, foster new technology-enabled products or services, attract new technology-enabled companies to Ohio, and make a capital investment of $3 million. Applicants can include any corporation with a minimum of 5 years operating history and annual revenue of greater than $10 million.

TAX EXEMPTIONS

Personal Property Tax Exemption:  All business personal property is exempt from property taxation in the state.

Sales Tax Exemption: Machinery and equipment used in the manufacturing process; material handling equipment used in warehouse and distribution facilities; equipment used for research and development purposes; and pollution control equipment are exempt from sales tax.

The Data Center Sales Tax Exemption: Data center operators that meet minimum investment and payroll thresholds may receive a full or partial sales tax exemption on the purchase of eligible equipment.

JOB TRAINING

JobsOhio Workforce Grant: This program offers reimbursable grants of up to 50% (75% in targeted areas) of training costs. Eligible costs include instructor salaries, materials, travel and special needs. Additional grants are available for industrial and eligible administrative or office operations that create or retain jobs.

Last updated: June 2018



 
Biggins Lacy Shapiro & Company, LLC
609-924-9775
info@blsstrategies.com