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Ohio Incentives
| Some
of the most frequently utilized tax incentive programs for new
and expanding businesses in Portage County and agency contact
numbers are listed below. Follow the
Enterprise Zones link
for details about Portage County's enterprise zone program and a
list of communities with active enterprise zones.
Visit
www.business.ohio.gov
to browse additional incentive programs and other business
services provided by the Ohio Department of Development.
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|
Enterprise
Zones |
| 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 10
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. |
| Follow
this link |
Enterprise
Zones for more detailed information about
Enterprise Zones and Community Reinvestment Areas in
Portage County. |
| Contact |
The
Enterprise Zone Manager, Portage County Department of
Economic Development at (330) 297-3470 |
| |
|
Community
Reinvestment Areas (CRA) |
| 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 15 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 |
Local
community if in municipality, in townships apply to the
director of the Portage County Regional Planning
Commission. |
| Contact |
The
Portage County Department of Economic Development at (330)
297-3470. |
|
For more about CRA's in Ohio, Visit:
http://www.odod.state.oh.us/edd/cra/
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Ohio
Manufacturing Machinery & Equipment Investment Tax
Credit |
| 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 1996, calendar year
1997 and calendar year 1998. |
| 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. |
| Contact |
The
Governor's Economic Development Outreach Office in Akron
at (330) 643-3392. |
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Ohio
Job Creation Tax Credit |
| 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. In Portage County, most communities provide
financial support through the Ohio Enterprise Zone
Program or Community Reinvestment Area Program.
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. |
| Contact |
The
Governor's Economic Development Outreach Office in Akron
at
(330) 643-3392. |
| |
|
Ohio
Inventory Tax Exemption |
| 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 |
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. Follow this Link for
more details: http://www.odod.state.oh.us/tech/titc/
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| |
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You
can explore all of the State of Ohio business assistance
programs, and link your business web site to Ohio's home page by
following the "Connect Ohio" link on the
"Related Links" page. For more information, please
contact
us.
217 S. Chestnut St.
Ravenna, Ohio 44266
Phone: (330) 297-3470 Fax:
(330) 297-3472
|
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Copyright 2006
Portage Workforce Connection. All rights reserved.
Last modified:
August 10, 2009
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