Ohio Tax Credits and Incentives for Businesses

Strong business growth means careful planning, and investors and business owners alike should know about the various tax credits and incentives that make Ohio an attractive place to do business. The following is an overview of some cost-saving opportunities available to companies looking to expand in Ohio.

• InvestOhio. An Ohio Development Services Agency program that provides non-refundable personal income tax credits to investors who infuse new equity (cash) into Ohio small businesses to acquire an ownership interest.

• Enterprise Zones. Ohio’s Enterprise Zone (EZ) program designates land areas where businesses can receive tax exemptions on eligible new investments.

• Community Reinvestment Programs (CRAs). This tax incentive program promotes the revitalization of underdeveloped areas by offering property-tax exemptions for any increased property valuation due to new construction or the renovation of existing structures.

• Job Creation Tax Credit. Businesses that create at least ten new full-time positions at a facility in Ohio and pay a minimum of 150% of the federal minimum wage are eligible for this credit.

• Jobs Retention Tax Credit. This credit provides Ohio commercial activity tax (CAT) or state income tax credit for businesses that commit to retaining a significant number of full-time jobs.

• Training Tax Credit. Ohio gives employers incentives to train current employees at risk of being displaced because of skill deficiencies or the inability to use new technologies.

• Research and Development Incentive Tax Credit. Under this program, significant tax savings are provided for companies undertaking research and development activities in Ohio by providing a non-refundable credit against the Ohio CAT liability.

• Manufacturing Machinery & Equipment Sales Tax Exemption. Sales of machinery and equipment for manufacturing activities are exempt from state and county sales tax.

• Warehouse Machinery & Equipment Sales Tax Exemption. Sales of eligible warehousing machinery and equipment are exempt from state and county sales tax.

Some of the above-described tax credits require advanced approval by state and local officials. Therefore, it is essential you talk with our knowledgeable business attorneys to ensure that your enterprise can take full advantage of any incentives available to you.