Secretariat

U.S. State Programs for New Investments

Available Investment Programs

Ohio

Taxes

• The job creation tax credit is a refundable tax credit levied against corporate/income tax based on state income tax withheld on net new, full-time employees. The credit can be up to 75% for up to 10 years and also includes a separate tax credit for businesses that commit to retaining a significant number of full-time jobs.
• The investment tax credit is provided for the purchase of new or retooled manufacturing machinery and equipment. It is a 7.5 % tax credit, 13.5% if located in a priority investment area, on the increase of the investment, divided over seven years. Priority investment areas are determined each year by the state based on things such as excess labour supply and situational distress.
• Ohio includes offers of substantial tax reductions on new real and/or personal property investment in designated enterprise zones, up to 75% exemption on tangible personal property tax valuation for up to 10 years.
• Complete exemption from state and county sales tax for purchases of machinery and equipment used primarily for research and development.
• Complete exemption from state and county sales tax for purchases of machinery and equipment used primarily (51%) for warehousing.

Employee Training

• Ohio investment in training program (OITP) provides financial assistance and technical resources for training of employees, up to 50% reimbursement to fund instructional costs, materials and training-related activities. Must have high capital investment and a commitment to retaining jobs.
• Ohio training tax credit (OTTC) program provides tax credits to help offset the costs of training incumbent workers, aimed at helping to improve the business' competitive position, and retain employees that are at risk of losing their jobs due to skill deficiencies.

Financing

• State direct loans are provided for land and building acquisition, expansion or renovation, and equipment purchase. Loans are for up to 30% of total eligible fixed costs (up to $1 million) and offer low fixed rates historically two-thirds of prime for 5 to 10 years. Smaller regional loans are also available for an equity minimum of 10%, which are applied to 40% of fixed costs (up to $350,000) at a negotiable rate for 5 to 10 years.
• Bond programs are available to smaller industrial projects between 1.5 million and $10 million in size. Bonds provide long-term, fixed rate loans for up to 20 years based on up to 90% of the total project amount. Interest rate is based on Standard & Poor's A-minus rating. This incentive allows access to national capital markets for unrated companies.
• The qualified small-issue bond program allows financing of capital expenses and up to 2% of issuance costs to core manufacturing facilities expanding or planning to operate in Ohio. The Bonds are issued at interest rates historically between 3/4 and 3% below prime lending rates. A maximum of 25% of the bond proceeds may be used to acquire land, 25% may be used for facilities ancillary to core manufacturing. Total capital expenditure of the company and related parties must not exceed $10 million in any one political subdivision. Note these bond issues fall under volume caps limiting the total amount tax-free bonds the state can issue.
• Rural development loans provide direct loans for businesses locating or expanding in Ohio's rural areas. The loans may be used for acquisition of land and buildings, new construction, renovations, and acquisition of machinery and equipment. The maximum loan amount is $750,000 and will have an annual interest rate fixed at not greater than half the prime. Eligible areas include counties with labour surplus, distressed counties and situational distressed counties.

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