Ohio Incentives and Workforce Development Guide

For a list of Ohio economic development agencies that can help with the site selection process, visit our Online Site Seekers’ Guide.

 

FINANCING & GRANTS

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% not to exceed $1.5 million.

Advanced Manufacturing Program (AMP): A competitive grant program to encourage new advanced manufacturing project and service activity in support of this important sector of Ohio’s economy. The funding being provided is to support proposals from existing Edison Technology Centers and other qualified Ohio nonprofit organizations with demonstrated capabilities to deliver value-added advanced manufacturing assistance.

Alternative Fuel Transportation Program: A state program that improves air quality through financial assistance to businesses, nonprofit organizations, school districts or local governments for the purchase and installation of alternative fuel refueling, blending or distribution facilities and terminals.

Energy Loan Fund: A program that provides low-cost financing to small businesses and manufacturers for energy improvements that reduce energy usage and associated costs, reduce fossil fuel emissions and/or create or retain jobs. Funding is provided through the Advanced Energy Fund and federal State Energy Program and American Recovery and Reinvestment Act. Eligible activities include energy retrofits, energy distribution technologies and renewable energy technologies. Projects must achieve 15% reduction in energy usage, demonstrate economic and environmental impacts and be included within a long-term energy strategy of the community served.

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% ranging from $500,000 to $1.5 million.

InvestOhio: Provides a non-refundable personal income tax credit to investors that provide new equity (cash) into Ohio small businesses to acquire an ownership interest in the company. The small business is required to reinvest that infusion of cash into one of five categories of allowable expenses within six months of its receipt. The investor must retain his or her ownership interest for a two-year holding period before the tax credit may be claimed. The small business must similarly retain the property that it purchased from the cash infusion for the entire two-year holding period. InvestOhio provides a small business investment certificate (InvestOhio tax credit), which represents a 10% personal income tax credit for the investor, based on the amount invested. The tax credit is limited to $1 million per person.

JobsOhio Loan and Grant Programs: 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.

  • 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 jobs-ohio.com.

Ohio Capital Access Program: Encourages lending to businesses creating or retaining jobs by establishing a unique credit enhancement reserve account at participating Capital Access Program lenders. The state, the lender and the business each make a small contribution to the account. The reserve account is available to the lender for recovery of losses associated with any loan the lender has enrolled in the program.

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 seven 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.

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% collateral value, not to exceed $500,000.

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, non-refundable Ohio commercial activity tax credit for principal and interest payments made during the year up to $150,000 during the loan term.

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.

 

TAX INCENTIVES

Community Reinvestment Areas: The Community Reinvestment Areas provide companies locating in a designated Community Reinvestment Area an exemption of up to 100% 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.

Job Creation Tax Credit: 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% 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: 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.

Ohio Motion Picture Tax Incentive: Provides a refundable credit that can be taken against individual income tax, commercial activity tax or financial institutions tax for Ohio. The term “motion picture” for purposes of the tax credit, is defined as entertainment content created in whole or in part within the State of Ohio for distribution or exhibition to the general public. Eligible productions must spend a minimum of $300,000 in the State of Ohio to qualify for the tax credit. The tax credit is equal to 25% of nonresident wage cast and crew and eligible production expenditures and 35% of Ohio resident cast and crew wage production expenditures.

Ohio New Markets Tax Credit Program: Helps to finance business investments in low-income communities by providing investors with state tax credits in exchange for delivering below-market-rate investment options to Ohio businesses. Investors receive a 39% tax credit spread over seven years if they make an investment in a qualified low-income community business. Community Development Entities (CDEs) apply to the program for allocation authority, and work with investors to make qualified low-income community investments. The attractiveness of the tax credit helps to spark revitalization in communities of all types and sizes.

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 multi-family housing, single-family housing, exempt facilities, manufacturing and student loan bonds.

For additional information on state programs please reference the Ohio Development Services Agency at development.ohio.gov.