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Incentives

Overview

Business Funding and 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.

Companies with questions about incentives are encouraged to contact the Columbus 2020 team of location experts for further information and help navigating available programs.

Ohio Tax Incentives and Abatements

Ohio Job Creation Tax Credit

The Ohio Job Creation Tax Credit is a refundable tax credit for eligible companies 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 payroll 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 Sales Tax Exemption

The Data Center Sales Tax Exemption provides a tax exemption rate & 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 Business Grants

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, but not limited to job creation, additional payroll, fixed-asset investment commitment, project ROI and the 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 Grant

The JobsOhio Research and Development 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, fixed-asset investment commitment, project return on investment, and project location.

Roadwork and Infrastructure Development (629)

Roadwork and Infrastructure 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.

Financing

JobsOhio Growth Fund Loan

The JobsOhio Growth Fund Loan 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.

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.

166 Direct Loan

The 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 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.

Other

JobsOhio Revitalization Program Loan and Grant Fund

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 Incentives

Dependent on geographic location, additional incentives may be available at the local municipality or county level. Such incentives may include:

  • Performance-based or job growth incentives
  • Workforce training assistance and/or grants
  • Loan programs

Ohio Enterprise Zone Program

The Ohio Enterprise Zone Program provides real property tax incentives for eligible businesses making real property improvements and creating jobs in an enterprise zone in Ohio. To secure benefits, businesses must apply to the local community.

Community Reinvestment Areas

Community Reinvestment Areas provide eligible 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 enter into a contract with the local community prior to going forward with the qualifying project.

Each local incentive is determined on an individual project basis by considering factors such as job creation, payroll and capital investment.