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Ohio Job Creation Tax Credit (JCTC)

Contact Office of Strategic Business

Investments, Tax Incentive Section
(614) 466-2317

The Ohio Job Creation Tax Credit Servicing site provides assistance to businesses that have previously been approved for a tax credit by the Ohio Tax Credit Authority (Authority). This site provides information for companies on the (1) agreement process, (2) amendment process, and (3) annual report requirements and filings.

When H.B. 1 passed in 2009, the JCTC Program underwent significant changes to the administration of the program, with the qualification focus shifting from a job creation number value to a payroll threshold. These changes went into effect October 17, 2009. Due to this change, projects approved by the Authority prior to October 17, 2009 operate under one set of laws and rules, and projects approved after October 17, 2009 operate under another set of laws and rules.

Agreements

Projects approved by the Authority are then required to enter into a tax credit agreement, summarizing the commitments and compliance requirements pursuant to the Ohio Revised Code. Agreements typically include the following key items:

  • A detailed description of the project operation,
  • The awarded term of the credit and the tax credit start date,
  • Requirement the taxpayer maintains operations at the project site for the term + 3 years,
  • The awarded tax credit percentage,
  • The pay increase factor,
  • Requirement the taxpayer submits an annual report with employment, payroll, withholdings, and investment information,
  • A requirement the Director of Development Services Agency review the annual report and if the project is in compliance, issue a certificate, and
  • The relocation process is initiated in the case of an intrastate relocation.

Taxpayers must review and sign the tax credit agreement within 60 days of receipt.

Taxpayers applying for JCTC assistance must pay a one-time servicing fee of $400 multiplied by the awarded term of the tax credit per grantee that is party to the agreement. It is important to note that because this is a per grantee fee, any grantee added to the tax credit agreement must pay the associated servicing fee for the term of the agreement as well.

Agreement Amendments

Any taxpayer wishing to request changes to an approved tax credit project must submit a completed Agreement Amendment Request Form. This form must be completed regardless of the nature of the change requested. There is a $300 amendment fee associated with the process.
Examples of amendment request include, but are not limited to:

  • Taxpayer name change,
  • Increase or decrease in the new job commitment,
  • Change in project jurisdiction,
  • Change to the rate and/or term of an agreement,
  • Investment change, and/or
  • Relocating employees to project site post-Ohio Tax Credit Authority approval.

Any amendment request must be formally approved by the Authority at one of its monthly meetings.

Annual Report

The tax credit program statutes mandate participating taxpayers to annually submit to the Development Services Agency a report detailing information pertaining to the taxpayer's project. Complete annual reports must be submitted on March 1 each year; the Office of Strategic Business Investments' audit staff records and reviews the data provided. The Department requires annual progress reports to be filed for the year in which the tax credit begins and consecutive years throughout the term of the credit.

The annual program report follows a standard developed by the Authority. Information requested in the annual progress report includes the number of full-time equivalent employees for the project; total payroll for the project; income tax revenue for the project; baseline income tax revenue for the project; excess income tax revenue for the project; amount of relocated payroll for the project during the tax year; and other information Development deems appropriate. Failure by taxpayers to submit complete and/or timely annual progress reports for the by March 1st of the year the report is due shall be assessed a $500 late fee for each ensuing calendar month and may be subject to a reduction in tax credit percentage and/or term. Upon verification of information submitted in the annual progress report, a tax credit certificate is issued to the taxpayer.