SPOTLIGHT PROGRAMS

Job Creation Tax Credit (JCTC): Refundable and performance-based tax credit calculated as a percentage of created payroll and applied toward the company's commercial activity tax liability. To be eligible, companies must create at least 10 new jobs with an hourly wage of at least 150% of the federal minimum wage and a minimum annual payroll of $660,000. The Ohio Tax Credit Authority must approve applicants before hiring begins. JCTC maximum term increases from 15 years to 30 years for megaprojects, which are defined as projects that compensate employees at 300% of federal minimum wage, invest at least $1 billion in fixed asset investment or create $75 million in new payroll in Ohio, and are located at a unique site that requires robust utility service and a technically skilled workforce.

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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.

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TAX CREDITS

Ohio Opportunity Zones Tax Credit: Incentive program for taxpayers to invest in economically distressed areas. Opportunities zones are designated by the federal government. The taxpayer will invest in Ohio Qualified Opportunity Fund, which will invest that money in a qualified property in Ohio. The taxpayer is eligible for a non-refundable tax credit equal to 10% of the amount invested by Ohio Qualified Opportunity Fund. The taxpayer may invest multiple times until credits reach $2 million. Tax credits are transferrable.

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TAX EXEMPTIONS/ABATEMENTS

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

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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 all exempt from sales tax.‍

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The Data Center Sales Tax Abatement: 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. The Ohio Tax Credit Authority must approve the abatement.

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‍Ohio Enterprise Zone Program: This program is issued by municipal and County governments and provides real and personal property tax exemptions. Tax incentives are negotiated at the local level. An agreement must be in place before the project begins. Projects must be in a geography that is designated by the local government and is for new investment. The Enterprise Zone Program’s maximum term increases from 15 years to 30 years for megaprojects.‍

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Ohio Community Reinvestment Area (CRA): The program is administered by municipal and county governments, who can provide real property tax exemptions for property owners who renovate existing or construct new buildings. Local communities determine the types of projects supported by CRA. Projects that can be supported include residential, commercial, and/or industrial projects.  Projects must be located in a geography that is designated by the local government and is for new investment. The CRA’s maximum term increases from 15 years to 30 years for megaprojects.

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DIRECT FINANCIAL ASSISTANCE

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.‍

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JobsOhio Revitalization Program: Discretionary grant and loan funds are available to companies seeking to redevelop underutilized sites within the state.  To qualify, a company must create a minimum of 20 jobs paying at least the county average wage. Grant amounts typically range from $500,000 to $5 million and between 20%-75% of eligible costs.‍

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JobsOhio Growth Fund Loan: This loan provides capital for expansion projects. JobsOhio will consider companies that are in the growth, established, or expansion stage, and have generated revenue through proven a business plan. The interest rate is fixed at closing and is based on project risk and other factors. The term for real estate is up to 15 years and the term for machinery and equipment is up to 10 years. Program does require the creation of jobs within a specified period.

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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.

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LOCAL INCENTIVES

Tax Increment Financing (TIF): Incentive program that is issued by township, municipality, or county. Payments are derived from the increased assessed value of any improvement to real property. Funds needed beyond the amount of this increased value is directed to a separate fund to finance public infrastructure projects.

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Last Updated: April 2023