Machinery and equipment must be new to Ohio and purchased within the qualifying period. Retooling qualifies if such costs are capitalized for federal tax depreciation purposes. Apply To Ohio Department of Taxation with the businesses regular annual franchise or income tax filing. State guidelines regulate the type of business and project eligible for the incentive. A business can receive a tax credit or refund against its corporate franchise tax based on the state income withheld on new, full-time employees.
Municipalities can provide a similar arrangement with their local employee income taxes.
Eligibility A five member authority, at the state level, determines eligibility and terms. Businesses must agree to create at least 25 new, full-time jobs within three years of operations. In addition, 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. In Portage County, most communities provide financial support through the Ohio Enterprise Zone Program or Community Reinvestment Area Program.