Tax Structure & Business Incentives
Businesses in the Columbus Region benefit from:
No personal property tax
No inventory tax
No state corporate income tax
In addition to tax savings available to Columbus Region businesses (further detailed on the Tax Structure
page), state and local governments offer tax incentives, credits, loans and grants to new businesses, small businesses and expanding companies. State and local resources are below.
If you have questions about these programs, please contact the Columbus 2020 team
. Our team of experts can help you navigate the many programs and incentives available to businesses.
Tax credits and abatements
Ohio Job Creation Tax Credit
The Job Creation Tax Credit is a refundable tax credit to companies generally creating at least 10 new jobs (within three years) with a minimum annual payroll of $660,000 that pay at least 150 percent 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. Should the amount of the credit exceed the company’s commercial activity tax 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 Data Center Tax Abatement
The Data Center Sales Tax Exemption provides a tax exemption rate and term that allows for partial or full sales tax exemption on the purchase of eligible data center equipment. Projects must meet minimum investment and payroll thresholds to be eligible.
Ohio Enterprise Zone Program
The 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 Community Reinvestment Areas
The Community Reinvestment Areas program provides companies locating in a designated Community Reinvestment Area an exemption of up to 100 percent 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.
Research and Development Investment Loan
The Research and Development Investment Loan Fund provides loan financing between $500,000 and $5 million to Ohio businesses 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.
Research and Development Investment Tax Credit
The Ohio Research and Development Investment Tax Credit provides a non-refundable tax credit up to seven percent for qualified research and development expenses. Qualifying expenses fit into two categories: in-house research expenses, and contracted research expenses. Any unused portion of a tax credit may be carried forward for up to seven years.
Ohio Enterprise Bond Fund
The 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 7 to 10 years for equipment and 15 to 20 years for real estate. Up to $10 million in financing is available through the program.
166 Direct Loan
The 166 Direct Loan provides Ohio businesses with 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 percent not to exceed $1.5 million.
Regional 166 Direct Loan
The 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 percent collateral value, not to exceed $500,000.
Innovation Ohio Loan Fund
The 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 percent ranging from $500,000 to $1.5 million.
JobsOhio Growth Fund
The JobsOhio Growth Fund provides capital for expansion projects to companies that have limited access to capital and 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. The JobsOhio Growth Fund’s loan 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 Workforce Grant
The JobsOhio Workforce Grant was created to promote economic development, business expansion, and job creation by providing funding for the improvement of worker skills and abilities in the State of Ohio. Grant 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 Economic Development Grant
The JobsOhio Economic Development Grant was created to promote economic development, business expansion, and job creation by providing funding for eligible projects in the State of Ohio. Grant 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 Research and Development (R&D) Grant
The JobsOhio R&D Grant was created to facilitate strategic corporate R&D centers in Ohio. R&D Grant decisions are based on a number of project factors, including but not limited to job creation, additional payroll, xed-asset investment commitment, project return on investment and project location.
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.
JobsOhio Revitalization Program
The JobsOhio Revitalization Program Loan and Grant Fund is focused on helping revitalize sites in preparation for end-users that support future job creation opportunities for Ohioans. The program, comprised of both loans and grants, is available to eligible public and private entities seeking to cleanup and redevelop sites across Ohio. The JobsOhio Revitalization Program Phase II Assessment Fund provides grant funding to eligible applicants to assist in the review of potential environmental risks on sites where redevelopment for job creation or retention is likely to occur.
Local business incentives
Dependent on geographic location, additional incentives may be available at the municipality or county level. Such incentives may include:
Performance based incentives or job-growth incentives
Additional workforce training assistance
Each local incentive is determined on an individual project basis by considering factors such as job creation, payroll and capital investment.