Overview: With the approval of local authorities, Hamilton County Commissioners may offer tax incentives to non-retail businesses that agree to establish, expand, renovate or occupy a facility in a business area designated by the county and agree to maintain or create jobs at the project site. A company must enter into an agreement before the project begins. Business zones are designated properties where companies can receive tax incentives in the form of tax exemptions for eligible new investments. Business zones are not part of the traditional zone program – which restricts land use – but allow local officials to negotiate with companies to encourage new business investment in the area. Some areas in Summit County are designated corporate zones as permitted by state law and approved by local communities. This makes it possible to negotiate incentive agreements between the county, local communities and businesses that wish to expand or move to zoning areas. The Department of Development manages this government program and acts as a single point of contact, helping businesses resolve expansion, relocation or incorporation issues on how best to maximize their business investments. Apply to: To obtain benefits, non-retail businesses must apply to HCDC, Inc. for local property tax exemptions. HCDC also coordinates efforts with the State Development Director for tax credits and state incentives, as well as the creation of new zones for certification.
Only companies qualified by their financial responsibility and business experience to create and maintain jobs in the area can apply for local tax incentives. Local officials may limit the type of businesses and projects eligible for policy guidance. A company must make a significant investment in real estate or personal property. Fees: A $1,500 deposit fee is payable when filing with HCDC. Upon entering into a business zone agreement, hcDC will receive an annual monitoring fee of more than one percent (1%) of the dollar value of the incentives offered under the agreement, or $500 up to a maximum of $2,500 for each year during the term of the agreement. Additional Notes: A second level of incentives is available to manufacturers who comply with an existing business area agreement and can document the hiring of 25% of their new employees in five defined categories (p.B unemployed). Upon request, the State may certify that a company can benefit from this tax credit for commercial activity for a maximum period of four (4) consecutive years. Benefits include exempting project assets from the business area of the business assets by calculating income tax; Reduction of the wage counter for salaries paid to the 25% of new “disadvantaged” employees; and credits for the custody of training associated with these new employees. Local contact: Harry Blanton at hblanton@hcdc.com or 513-458-2230. Advantages: Companies can benefit from significant tax reductions on real estate investments.
The amount of the tax exemption is negotiated on the basis of an individual project and depends on the size of the investment and the number of jobs created or maintained. There are other incentives for comprehensive environmental remediation. To better understand if your investment may qualify under this program, please contact our team for more information. Starting a new business is defined as a significant investment in land, buildings, machinery or equipment. Expansion projects must make investments that represent at least 10% of the value of the existing plant. In addition, the law allows a company to renovate an existing facility if the renovations exceed 50% of the value of the facility. A business that is willing to fill a vacant facility and invest at least 20% of the value of the facility in the alteration or repair of the facility is considered eligible for tax incentives. Please note that retail stores are not eligible for tax exemptions, except in urban areas that have been designated as affected cities. State Contact: Ohio Development Services Agency at (614) 466-4551 or (800) 848-1300.
Rates/Conditions: Up to 75% exemption in incorporated areas and up to 60% in unincorporated areas for land improvements for a maximum period of 10 years. Approval from the local school board is required to exceed these limits. Additional incentives for state franchising or income tax are available. The Enterprise Zone Agreement must exist before the start of the project. A for-profit business is growing in the city of Cleveland with an obvious gap in project funding. Note: The costs of acquiring land and/or buildings are NOT exempt. To be eligible, the business investment must meet one of the following conditions: Eligibility: Local businesses expanding or establishing themselves in Hamilton County. Investments that may be eligible include improvements to real estate (buildings). . . .