Ohio Business Incentives and Tax Credits
Ohio Job Creation Tax Credit:
Provides corporate franchise or state income tax credit for businesses that expand or locate in Ohio for companies that incur tax liability under ORC Sections 5733.06 or 5747.02. Program will provide a tax credit against the Commercial Activity Tax (CAT) beginning on July 1, 2008, insurance companies that pay the annual franchise tax under ORC Sections 5725.18/5729.03 are eligible for the tax credit beginning July 1, 2005.
Ohio Job Retention Tax Credit:
Provides corporate franchise or state income tax credit for businesses that commit to retain a significant number of full-time jobs. Program will provide a tax credit against the Commercial Activity Tax (CAT) beginning on July 1, 2008.
Ohio Research and Development Investment Tax Credit:
Provides a nonrefundable tax credit against the corporate franchise tax and is designed to encourage Ohio’s corporations to invest in increased research and development activities.
Training Tax Credit:
Provides tax credits for employers that train existing employees who are at risk of losing their jobs primarily due to skill deficiencies.
Ohio Manufacturing Machinery and Equipment Grant/Ohio Manufacturing Machinery and Equipment Investment Tax Credit:
Provides a nonrefundable corporate franchise or state income tax credit for manufacturer located in Ohio that purchases qualified new or retooled machinery and equipment that is used in manufacturing.
Technology Investment Tax Credit:
Offers a variety of benefits to Ohio taxpayers who invest in small, research and development and technology-oriented forms.
Research and Development Sales Tax Exemption:
Provides an exemption from the usual state and county sales tax for companies that purchase equipment for research and development activities. Vendor needs a blanket exemption certificate, available on-line at the Department of Taxation’s website (http://tax.ohio.gov/) under Business, Tax Forms.
Manufacturing Machinery and Equipment Sales Tax Exemption:
Provides an exemption from state and county sales tax for companies that purchase machinery and equipment for manufacturing activities. Vendor needs a blanket exemption certificate, available on-line at the Department of Taxation’s website (http://tax.ohio.gov/) under Business, Tax Forms
Warehouse Machinery and Equipment Sales Tax Exemption:
Provides an exemption from state and county sales tax for companies that purchase eligible warehousing equipment. Vendor needs a blanket exemption certificate, available on-line at the Department of Taxation’s website (http://tax.ohio.gov/) under Business, Tax Forms
Warehouse Inventory Tax Exemption:
Provides an exemption from the personal property tax on qualifying inventory. Claimed as part of the Personal Property Tax return.
Enterprise Zones:
Provides personal property tax incentives for businesses that expand or locate in Ohio. In order to apply, the municipality or county must apply to the State Development Director for certification. To secure benefits, non-retail businesses must apply to the local community for local property tax exemptions and to the State Development Director for state franchise or state income tax incentives.
Community Reinvestment Areas:
Provides local real-property tax incentives for residents and businesses that invest in designated areas of Ohio. In order to apply, the municipality or county must apply to the State Development Director for confirmation. Investors meeting the local criteria must apply to the municipality or county for the real property tax exemption.