Business Financing

BUSINESS INCENTIVES
JEFFERSON COUNTY

OHIO JOB CREATION TAX CREDIT

Corporate franchise or state income tax credit is provided to businesses that expand or locate in Ohio.  The Ohio Tax Credit Authority determines eligibility and terms, though the business must demonstrate that the tax credit is a major factor in going forward with the project.  In addition, the local community must provide financial support for the project.  Businesses creating at least 25 net new full-time jobs and pay a minimum of 150 percent of the federal minimum wage are eligible.  In special circumstances, companies creating as few as 10 new full-time jobs that pay at least 400 percent of the federal minimum wage could be eligible.

OHIO JOB RETENTION TAX CREDIT

Corporate franchise or state income tax relief is provided to businesses committing to retain a significant number of full-time jobs. The Ohio Tax Credit Authority determines eligibility and terms.  Credits are awarded to companies with project sites that are primarily a manufacturer or provide a significant corporate administrative function.  Local community must provide financial support.  Businesses with at least 1,000 full-time employees who make a capital asset investment of at least $200 million are eligible.

OHIO RESEARCH AND DEVELOPMENT INVESTMENT TAX CREDIT

Nonrefundable tax credit provided against the corporate franchise tax and is designed to encourage Ohio corporations to invest in increased research and development activities. The credit equals 7 percent of the excess amount of qualified research expenses.

TRAINING TAX CREDIT

Provides tax credits for employers that train existing employees who are at risk of losing their jobs primarily due to skill deficiencies.  There are $20 million in credits available annually statewide with no single business to receive more than $100,000 per year.

OHIO MANUFACTURING MACHINERY AND EQUIPMENT GRANT/TAX CREDIT

Nonrefundable corporate franchise or state income tax credit for a manufacturer purchasing qualified new or retooled machinery and equipment.  New investment must exceed the business’ annual average county investment in machinery and equipment determined by the filing year. Machinery and equipment must be new to Ohio. Retooling qualifies if costs are capitalized for federal tax depreciation purposes.

TECHNOLOGY INVESTMENT TAX CREDIT

Small research and development technology-oriented firms may qualify for tax credits. Business must have gross revenues of less than $1 million or net book value of less than $1 million at the end of the most recent fiscal year.

RESEARCH AND DEVELOPMENT SALES TAX EXEMPTION

Exemption provided from the state and county sales tax for companies that purchase equipment for research and development activities, in both direct and pure research.

MANUFACTURING MACHINERY AND EQUIPMENT SALES TAX EXEMPTION

Exemption provided from the state and county sales tax for companies that purchase machinery and equipment for manufacturing.

WAREHOUSE MACHINERY AND EQUIPMENT SALES TAX EXEMPTION

Exemption provided from the state and county sales tax for companies that purchase eligible warehousing equipment.  Eligible equipment and machinery must be at least 51 percent used in the storing, transporting, mailing or handling inventory in a warehouse, distribution center or similar facility.

WAREHOUSE INVENTORY TAX EXEMPTION

Exemption available for personal property tax on qualifying inventory, brought into Ohio from out of state, held for storage with no further processing and then distributed outside the state.

ENTERPRISE ZONES

Real and personal property tax incentives for businesses that expand or locate in Ohio. County or municipality must apply to the Ohio Department of Development director for certification.  Up to a 75 percent exemption in incorporated areas and up to a 60 percent exemption in unincorporated areas is available on real property improvements or tangible personal property tax valuation for up to 10 years.  Local school board must approve.  Eligible entities include industrial projects or retail/service projects in limited areas.

REVOLVING LOAN FUNDS

The Community Improvement Corp. has a revolving loan fund to provide partial financing for fixed assets.  The Revolving Loan Fund caps costs at $25,000 per job or 40 percent of fixed asset costs to a maximum of $100,000, whichever is less; the fund takes a second lien position; the fund targets manufacturing and export-based business but will fund eligible commercial operations.

OHIO HISTORIC PRESERVATION TAX CREDIT

Credit provided to the owners of historically significant buildings who rehabilitee the buildings.  Buildings must be listed on the National Register of Historic Places and the owner must be a nongovernment, fee simple interest owner.  The credit is 25 percent of the qualified expenditures to a cap of $5 million.

COMMUNITY REINVESTMENT AREAS

Local real-property tax incentives for residents and business in designated areas of a municipality or county that has applied to the state director of development.  Up to a 100 percent exemption of the improved real property values up to 15 years can be provided, with the local legislative authority establishing rates and terms.