Ohio Tax Credit Incentives

The Job Creation Tax Credit is a refundable tax credit to companies generally creating at least 10 new jobs (within three years) with a minimum annual payroll of $660,000 that pay at least 150 percent of the federal minimum wage. The tax credit is measured as a percentage of the state income tax withholdings for all new employees hired under the program, and is applied toward the company’s commercial activity tax liability. Should the amount of the credit exceed the company’s commercial activity tax liability for any given year, the difference is refunded. A business must apply for the credit before committing to the project. Applicants must be approved through the Ohio Tax Credit Authority before hiring begins. Visit the Ohio Department of Development website for more information.

The Job Retention Tax Credit is a non-refundable tax credit to companies retaining at least 500 full-time jobs in Ohio. Companies must also commit to a fixed-asset investment of $50 million for manufacturing and $20 million for corporate and professional services. The credit is measured as a percentage of the state income tax withholdings for all employees retained under the program. The tax credit rates for approved projects can be up to 75 percent for 15 years. A business must be approved for the credit by the Ohio Tax Credit Authority before committing to the project.  Visit the Ohio Department of Development website for more information.
 
The Research and Development Investment Tax Credit provides a non-refundable tax credit up to seven percent for qualified research and development expenses. Qualifying expenses fit into two categories: in-house research expenses and contracted research expenses. Any unused portion of a tax credit may be carried forward for up to seven years.  Visit the Ohio Department of Development website for more information.
 
The Ohio Enterprise Zone Program provides real property tax incentives for businesses that expand or relocate in Ohio. To establish an Enterprise Zone, a municipality or county must apply to the Director of Development for certification. To secure benefits, businesses must apply to the local community. Certain qualifying 
businesses may be eligible for additional benefits.  Visit the Ohio Department of Development website for more information. For a map of Wyandot County's Enterprise Zones click here.

Community Reinvestment Areas provide companies locating in a designated Community Reinvestment Area an exemption of up to 100 percent of improvement value for up to for 15 years on real property taxes. To be eligible, a company must make an agreement with the local community prior to going forward with the qualifying project.  Visit the Ohio Department of Development website for more information.

The Technology Investment Tax Credit Program provides a tax credit to Ohio taxpayers that invest in qualified small, Ohio-based technology companies. The tax credit is generally 25 percent of the amount invested by the taxpayer.  Visit the Ohio Department of Development website for more information.

The Ohio Historic Preservation Tax Credit Program provides a tax credit to building owners of historically significant buildings for rehabilitation. Applicants are selected in a competitive process. The tax credit subsidy is 25 percent of qualified rehabilitation expenditures, not to exceed $5 million. Qualified rehabilitation expenditures are hard construction costs that meet the requirements of the U.S. Secretary of Interior’s standards for rehabilitation of historic properties. The tax credit can be applied to an applicable dealer in tangible, corporate franchise, or state income taxes.  Visit the Ohio Department of Development website for more information.

The Ohio New Markets Tax Credit Program will help finance business or real estate investments in low-income communities by providing investors with state tax credits in exchange for delivering belowmarket -rate investment options to Ohio businesses, sparking revitalization in Ohio’s low-income communities.  Visit the Ohio Department of Development website for more information.

The Ohio Motion Picture Tax Credit provides a refundable credit against the corporation franchise or income tax for various Ohio productions. The tax credit is available to applicants making eligible productions as certified by the Director of Development. The tax credit is equal to 25 percent of non-wage and nonresident wage 
Ohio production expenditures and 35 percent of Ohio resident wage production expenditures.  Visit the Ohio Department of Development website for more information.

Volume Cap provides a federal tax benefit by allowing eligible issuers to issue tax exempt Private Activity Bonds up to a state limit known as the “Volume Cap.” The State of Ohio’s allocation of Volume Cap is determined annually by the Internal Revenue Service on a per capita basis, and may be used for projects consisting of multi-family housing, single-family housing, exempt facilities, manufacturing, and student loan bonds. Visit the Ohio Department of Development website for more information.

Ohio Department of Development contact information can be found here.
 

 
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