Program Description | Rate/Terms | Benefits | Eligibility | Contact / Phone # |
Ohio Job Creation Tax Credit | Ohio Tax Credit Authority determines eligibility and terms Business must demonstrate to the Authority that the tax credit is a major factor in its decision to go forward with the project Local community must also provide a letter of support for the project | Refundable state franchise or income tax credits that minimize expenditures to encourage business expansion and/or location projects in Ohio. The tax credit will apply against the corporate franchise tax through 6/30/08, and transfer to cover the Commercial Activity Tax (CAT) liabilities for tax period beginning July 1, 2008. The program will continue to be refundable. | Businesses that create at least 25 net new full-time positions at a facility in Ohio and pay a minimum of 150% of federal minimum wage | Office of Tax Incentives |
| Ohio Job Retention Tax Credit (pdf 93k) Provides corporate franchise or state income tax credit for businesses that commit to retain a significant number of full-time jobs. Program will provide a tax credit against the Commercial Activity Tax (CAT) beginning on July 1, 2008. | Ohio Tax Credit Authority determines eligibility and terms Credits awarded to companies that are engaged at the project site primarily as a manufacturer or providing significant corporate administrative functions and can demonstrate the tax credit is a major factor in its decision to retain jobs in Ohio. | Nonrefundable corporate franchise or state income tax credits for corporations, partnerships, limited liability companies and other pass-through entities to minimize the costs of maintaining an operation in the state. The tax credit will transfer to cover the Commercial Activity Tax (CAT) liabilities for tax period beginning July 1, 2008. The program will continue to be non-refundable. | Businesses that currently employ at least 1,000 full-time employees and make a capital asset investment of at least $200 million. In special circumstances, a company could invest at least $100 million if the retained positions pay, and will continue to pay, at least 400% of the federal minimum wage. | Office of Tax Incentives |
| Ohio Research and Development Investment Tax Credit Provides a nonrefundable tax credit against the corporate franchise tax and is designed to encourage Ohio’s corporations to invest in increased research and development activities. | The credit equals 7% of the excess amount of Qualified Research Expenses. | Nonrefundable tax credit. | Only those taxpayers subject to the franchise tax provision of ORC Section 5733.06, or those subject to division (G)(2) of section 5733.01 under CAT tax are eligible for the credit. | Ohio Department of Taxation, Sales Tax Division |
Technology Investment Tax Credit | Provides a tax credit for taxpayers that invest in small, Ohio-based technology companies. The amount of the tax credit is 25% (or 30% in some limited cases) of the amount invested by the taxpayer. The maximum investment to which this credit may be applied is $250,000 (or $300,000). The credit may be claimed against personal income tax, corporate franchise tax, public utility excise tax or the dealers in intangibles tax.
To be eligible, the company must have its principal place of business located in Ohio and must also have less than $2.5 million in revenue or less than $2.5 million in net assets for the most recently completed fiscal year. Finally, the entity must be engaged in a business that primarily involves R&D and/or technology transfer. | Investors may reduce their state taxes by up to 25% of amount invested | Businesses primarily focused on research and development, technology | Technology Division |
| Research and Development Sales Tax Exemption Provides an exemption from the usual state and county sales tax for companies that purchase equipment for research and development activities. Vendor needs a blanket exemption certificate, available on-line at the Department of Taxation’s website (http://tax.ohio.gov/) under Business, Tax Forms. | Exempts business from entire state and county sales tax for purchases of machinery and equipment used primarily for research and development | Provides significant tax savings for companies undertaking research and development activities in Ohio | Includes research and development activity in both direct and pure research. | Ohio Department of Taxation, Sales Tax Division |
| Manufacturing Machinery & Equipment Sales Tax Exemption Provides an exemption from state and county sales tax for companies that purchase machinery and equipment for manufacturing activities. Vendor needs a blanket exemption certificate, available on-line at the Department of Taxation’s website (http://tax.ohio.gov/) under Business, Tax Forms | Exempts business from entire state and county sales tax for purchases of machinery and equipment used primarily for manufacturing | Provides significant tax savings for companies and individuals that are involved in manufacturing in Ohio | Includes machinery, equipment, supplies and fuel used primarily in a manufacturing operation to produce tangible personal property for sales | Ohio Department of Taxation, Sales Tax Division |
| Warehouse Machinery & Equipment Sales Tax Exemption Provides an exemption from state and county sales tax for companies that purchase eligible warehousing equipment. Vendor needs a blanket exemption certificate, available on-line at the Department of Taxation’s website (http://tax.ohio.gov/) under Business, Tax Forms | Exempts business from entire state and county sales tax for purchases of eligible machinery and equipment | Provides significant tax savings for companies purchasing machinery and equipment for warehousing, distribution and direct marketing activities | Includes machinery and equipment used primarily (51%) in storing, transporting, mailing or handling inventory in a warehouse, distribution center or similar facility if the inventory handled by the facility is primarily distributed outside Ohio to retail stores owned by the business or affiliated group that owns the Ohio facility or distributed by means of direct marketing | Ohio Department of Taxation, Sales Tax Division |
Enterprise Zones | Up to 75% exemption in incorporated areas and up to 60% exemption in unincorporated areas on real property (or personal property, if applicable) for up to 10 years. Local school board approval is required to exceed this rate and/or term limits. | Substantial tax reductions on new real property investment (and personal property first used in business in Ohio, if applicable). | Industrial projects (retail/service projects are eligible in limited areas) | Office of Tax Incentives |
Ohio Historic Preservation Tax Credit.
The Ohio Historic Preservation Tax Credit program provides a tax credit for the rehabilitation expenses to owners of historically significant buildings. Funding is provided through competitive rounds based on economic benefit and regional distributive balance.
| The tax credit subsidy is 25% of qualified rehabilitation expenditures (QRE) not to exceed the QRE estimates in the application, with an application cap of $5M. QREs are hard construction costs that meet the requirements of the US Secretary of Interior’s Standards for Rehabilitation of Historic Properties. | The tax credit can be applied to applicable dealer in tangible, corporate franchise, or state income taxes. | Applicants must meet four threshold criteria:
| Urban Development Division
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| Community Reinvestment Areas Provides local real-property tax incentives for residents and businesses that invest in designated areas of Ohio. In order to apply, the municipality or county must apply to the State Development Director for confirmation. Investors meeting the local criteria must apply to the municipality or county for the real property tax exemption. | Up to 100% exemption of the improved real property tax valuation for up to 15 years depending on the project. | Substantial real estate property tax reduction for new real property | Real property investment incentives are available for residential, commercial, and/or industrial projects involving remodeling or new construction. | Office of Tax Incentives |