Ohio Direct Financial Incentives
Ohio's economic development, finance and tax organizations provide a range of incentive programs to initiate new business and commercial investment.
JobsOhio focuses its efforts on nine industry sectors that drive Ohio’s economy. These include advanced manufacturing, aerospace and aviation, agribusiness and food processing, automotive, biohealth, energy, financial services, information technology, polymers and chemicals, and business functions. It is funded with the profits from the state’s wholesale liquor enterprise. This source provides dedicated, flexible, and sustainable funding to support Ohio business growth and job creation.
Program decisions are based on a number of project factors, including but not limited to job creation, additional payroll, fixed-asset investment commitment, project return on investment, and project location.
The JobsOhio Growth Fund Loan provides capital for expansion projects to companies that have limited access to funding from conventional, private sources of financing. JobsOhio will consider loans to companies that are in the growth, established or expansion stage, and that have generated revenues through a proven business plan.
JobsOhio Economic Development Grant created to promote economic development, business expansion, and job creation by providing funding for eligible projects in the state of Ohio.
JobsOhio Workforce Grant created to promote economic development, business expansion, and job creation by providing funding for the improvement of worker skills and abilities.
For additional information on JobsOhio programs please visit our website .
State of Ohio Tax Credit, Loan and Grant Programs
Job Creation Tax Credit: The Job Creation Tax Credit is a refundable tax credit to companies 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 CAT). Should the amount of the credit exceed the company’s CAT 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.
Ohio Enterprise Zone Program: 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.
Community Reinvestment Areas: The 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 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.
Research and Development Investment Tax Credit: The Research and Development Investment Tax Credit provides a nonrefundable tax credit up to 7 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.
Research and Development Investment Loan Fund: The Research and Development Investment Loan Fund provides loan financing between $500,000 and $5 million for projects primarily engaging in research and development activity. Rates are fixed at or below market rates, with other loan terms similar to those of commercial bank financing. Companies receive a dollar-for-dollar, nonrefundable Ohio commercial activity tax credit for principal and interest payments made during the year up to $150,000 during the loan term.
Ohio Enterprise Bond Fund: The Ohio Enterprise Bond Fund provides revenue bond financing through an S&P rated fund, whereby proceeds from the sale of bonds are loaned to companies for fixed-rate, long-term capital asset financing. Rates are market-driven and fixed prior to funding.
Loan terms range between 7 to 10 years for equipment and 15 to 20 years for real estate. Up to $10 million in financing is available through the program for eligible projects.
166 Direct Loan: The 166 Direct Loan provides loans for land and building acquisition, construction, expansion, or renovation, and equipment purchases for eligible businesses. The program provides low-interest loans up to 40 percent not to exceed $1.5 million.
Regional 166 Direct Loan: The Regional 166 Direct Loan provides loans for land and building acquisition, construction, expansion, or renovation, and equipment purchases for eligible businesses. Regional economic development agencies administer the program. It provides low-interest loans up to 75 percent collateral value, not to exceed $500,000.
Innovation Ohio Loan Fund:
The Innovation Ohio Loan Fund provides loans for acquisition, construction, and related capital costs of technology, facilities, and equipment purchases. The fund was created to assist existing Ohio companies in developing next-generation products and services within the state’s industry sectors up to 75 percent ranging from $500,000 to $1.5 million.
State of Ohio Grant Programs and Other Funding Sources
Roadwork Development 629: Roadwork Development 629 funds are available for public roadway improvements, including engineering and design costs. Funds are available for projects primarily involving manufacturing, research and development, high technology, corporate headquarters, and distribution activity. Projects must create or retain jobs. Grants are reimbursable and provided to a local jurisdiction and require local participation.
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 multifamily housing, single-family housing, exempt facilities, manufacturing, and student loan bonds.
For additional information on state programs please reference the Ohio Development Services Agency website .
Ohio State Contacts:
41. S. High Street, Suite 1500
Columbus, Ohio 43215
Ohio Development Services Agency
77 S. High Street, 29th Floor
Columbus, Ohio 43215
Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.
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