Department of Community and Economic Development

Business/Project

Local and state tax incentives for businesses that expand or locate in designated areas.

Rate/Terms

Up to 75% exemption in incorporated areas and up to 60% in unincorporated areas of the improved real estate or new tangible personal property tax valuation for up to ten years. In some instances, local school board approval may be required. Additional state incentives are available through ODOD.

Eligibility

Business must finalize an Enterprise Zone Agreement prior to project initiation, agree to retain or create employment and establish, expand, renovate, or occupy a facility in an Enterprise Zone.

Apply To

Applications must be submitted to the local municipality or township for local property tax exemptions and to the Director of ODOD for state franchise tax incentives.

Fees

An application fee of $750, payable to ODOD and an annual monitoring fee of $500 for each year the Enterprise Zone Agreement is in effect, or required to be monitored.

Contact

Geauga County Community and Economic Development

Business/Project

Local tax incentives for businesses that expand or locate in designated areas.

Rate/Terms

Up to 100% exemption of the improved real estate property tax valuation for up to fifteen years.

Eligibility

Business must undertake new real estate investment. Terms of the exemption are established by the local legislative authority when the area is created. Community Reinvestment Areas created after July 1994 require an agreement between the local jurisdiction and all commercial/industrial business prior to project initiation which includes job creation and/or retention and may require local school board approval.

Apply To

Geauga County Community and Economic Development

Business/Project

A non-refundable corporate franchise or state income tax credit for a manufacturer that purchases new machinery and equipment that is located in Ohio and is used in the production or assembly of a manufactured good.

Rate/Terms

The manufacturer shall receive a 7.5% tax credit on the increase of the investment which is in excess of the three year annual average investment on machinery and equipment. A tax credit of 13.5% is available to manufacturers making investments in “Eligible Investment Areas” which are identified annually by the ODOD. In 1996, 27 counties and 22 communities are eligible for the 13.5% tax credit. The total value of the tax credit is divided equally over seven years and the manufacturer is permitted to carry forward any unused tax credit amount for up to three years. Purchase of machinery and equipment must be made between July 1, 1995 and December 31, 1998. The credit is available for each of the four distinct investment periods July 1-December 31, 1995 calendar year ’96, calendar year ’97 and calendar year ’98.

Eligibility

Available to any Ohio manufacturing operation; corporation, partnership, limited liability company, or proprietorship. Eligible new investment must exceed the company’s calendar year 1992-93-94 annual average investment in machinery and equipment. In the case of multiple facilities, the company must consider the 1992-93-94 annual average investment of all facilities located in the same county. Machinery and equipment must be new to Ohio and purchased within the qualifying period. Retooling qualifies if such costs are capitalized for federal tax depreciation purposes.

Apply To

Ohio Department of Taxation with the businesses regular annual franchise or income tax filing.

Business/Project

State and municipal tax incentives are available for businesses that expand or locate in Ohio. State guidelines regulate the type of business and project eligible for the incentive.

Rate/Terms

A business can receive a tax credit or refund against its corporate franchise tax based on the state income withheld on new, full-time employees. The amount of the tax credit can be up to 75% for up to ten years. The tax credit can exceed 75% upon recommendation of the Director of ODOD when there is an extraordinary circumstance. Municipalities can provide a similar arrangement with their local employee income taxes.

Eligibility

A five member authority, at the state level, determines eligibility and terms. Businesses must agree to create at least 25 new, full-time jobs within three years of operations. Also, the average wage of all new employees must be at least 150% of the current federal minimum wage. In addition, the business must demonstrate to the State that the tax credit is a major factor in its decision to go forward with the project. The local community must also provide financial support for the project.

Restrictions: (from Ohio Administrative Code122:7-1-05 Eligibility requirements.)

(C) Point of final purchase retail projects shall not be eligible for tax credits pursuant to section 122.17 of the Revised Code.

(D) Service projects must demonstrate that at least fifty-one percent of the sales or revenues attributable to the project are generated from outside the state of Ohio within three years of initial project operations to be eligible for tax credits pursuant to section 122.17 of the Revised Code. More Details.

Apply To

Office of Tax Incentives, ODOD.

Business/Project

Overview:  Provides an exemption from the personal property tax on qualifying inventory.

Rate/Terms

The exemption has been phased in by lowering the assessment rate on qualifying inventory from 25% to 0% over a five year period. The assessment rate for 1999 is 0%.

Eligibility

Inventory brought into Ohio from out of state, held for storage only with no further processing and then distributed back outside of the state will be subject to a reduced personal tangible property assessment rate. "Held for Storage Only" is a specific standard of eligibility, which may preclude the value of some inventory being shipped directly to customers from qualifying for the reduced assessment rate.

Apply To

Claim as part of the Personal Property Tax return.

Contact

Ohio Department of Development (614) 466-4551 or the Ohio Department of Taxation, Personal Property Tax Division (614) 466-3280

Ohio's Technology Investment Tax Credit program offers a variety of benefits to Ohio taxpayers who invest in small, research and development and technology-oriented firms. Through this innovative program, Ohio investors may reduce their state taxes by up to 25 percent of the amount they invest in qualified, technology-based Ohio companies. The program's maximum credit of $37,500 per investment may be applied to personal income tax, corporation franchise tax, public utility excise tax or the tax on dealers in intangibles. More Details.