Ohio Job Creation Tax Credit

City of Wickliffe/State of Ohio Job Creation Tax Credit

BUSINESS/PROJECT

State and municipal tax incentives for businesses that expand or locate in Ohio. State guidelines regulate the type of business and project eligible for this incentive.

RATE/TERMS

A business can receive a refundable tax credit against its corporate franchise/income tax based on the state income tax withheld on new, full-time employees. The amount of the tax credit can be up to 75% for up to 10 years. The tax credit can exceed 75% only upon recommendation of the Director that there is an extraordinary circumstance that merits an exception. Approved projects generally range between 50% to 60% for 5 to 10 years. Municipalities can provide a similar arrangement with their local employee income taxes.

ELIGIBILITY

A five-member authority determines eligibility and terms. Businesses must agree to create at least 25 new, full-time jobs within 3 years of operation. The average wage of all employees must be at least 150% of the current federal minimum wage. The business must demonstrate to the state that the tax credit is a major factor in its decision to go forward with the project. The local community must also provide financial support for the project.

INCENTIVES

Substantial state and municipal tax reductions, which minimize capital expenditure to encourage business expansions and locations in Ohio.