State Awards Tax Credit for Local Expansion

Last April, the Ohio Tax Credit Authority approved tax credits for 15 companies thCPS Logoat
combined committed to creating 664 jobs and retaining 2,012 jobs statewide. Among the 15 companies, 5 are located in the Northwest Ohio region; one of which in Wyandot County. Continental Structural Plastics Inc. (CSP) was awarded a 50 percent, six-year Job Creation Tax Credit associated with the planned expansion of its manufacturing facility in the Village of Carey. Senior JobsOhio Project Manager John Recker and WCOED Director Greg Moon addressed the Tax Credit Authority board to state the company’s intentions, and various means of local support in place to move the expansion forward.

As a result of the expansion, CSP is committing to create 50 new full-time jobs with a new payroll of $1.6 million in the Village of Carey. The recent JCTC approval marks the second this year for the company. At the January meeting of the Ohio Tax Credit Authority, CSP received approval for a tax credit associated with the expansion of its North Baltimore manufacturing facility where the company committed to creating 56 new jobs worth $1.5 million in new payroll.

Other Northwest Ohio companies who had Job Creation Tax Credits approved at the March 31st meeting included Matrix Technologies Inc. of Maumee, Allermuir USA of Monclova Township, Just Packaging Inc. of Toledo, and Tour de Force CRM Inc. of Findlay.

The Ohio Job Creation Tax Credit (JCTC) program has been effective since 1993 with significant revisions made to it in 2009. The tax credits are refundable against an employer’s Commercial Activity Tax (CAT). It is based on the new state income tax that will be withheld by the employer for new jobs created, but the Ohio Tax Credit Authority reviews each case to determine the rate and term. Items the Authority considers are number of new jobs, new payroll generated, fixed asset investment, and interstate competition for the project.

Sources:

Blade Staff (2014, March 31). Ohio tax credit spur new jobs; 5 regional firms to create 232 positions, $11.6M in payroll. Retrieved April 2, 2014, from web-site: http://www.toledoblade.com/local/2014/04/01/Ohio-tax-credits-spur-new-jobs-Copy.html

Ohio Development Services Agency. Retrieved April 2, 2014, from website: https://development.ohio.gov/bs/bs_jctc.htm

Gregory Moon

Greg is the Executive Director of the Wyandot County Office of Economic Development and also serves as the Executive Director of the Wyandot County Regional Planning Commission.

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