Ohio offers a diverse set of incentives and tax programs to support businesses across various industries.  The state’s commitment to fostering economic growth, job creation, and innovation is reflected in its comprehensive incentive offerings.  Whether you are expanding an existing operation or looking to relocate your business, Ohio provides a range of opportunities to help reduce costs and maximize investment.  Below are some of the key business incentives available in Ohio.

Ohio Job Creation Tax Credit (JCTC)

Overview

The JCTC is a performance-based incentive that rewards businesses for creating new jobs in the state.  This credit is designed to attract businesses to Ohio and encourage expansion in key sectors such as manufacturing, technology, and healthcare.

Eligibility

• The business must create a minimum number of new, full-time jobs in Ohio.

• The new jobs must meet or exceed Ohio’s wage standards for the relevant industry.

• The business must commit to retaining jobs in Ohio and meeting job creation targets within a specified timeframe.

Incentive Value

• The credit is based on a percentage of the new state income tax withholding generated by the new jobs created.

• The tax credit is available for up to 10 years, depending on the size and scope of the project.

Application Process

Businesses must apply to the Ohio Development Services Agency, providing detailed information on job creation projections, wage levels, and capital investments.

Ohio Investment Tax Credit (ITC)

Overview

The Ohio ITC is designed to encourage businesses to invest in machinery and equipment.  This credit supports businesses in expanding their operations, modernizing equipment, and increasing productivity.

Eligibility

• The business must invest in qualifying machinery, equipment, and/or buildings used in production.

• The investment must meet a minimum threshold set by the state, typically involving a significant capital expenditure.

Incentive Value

• The credit is equal to a percentage of the cost of qualified capital investments.

• The credit can be used to offset Ohio corporate income taxes, and the amount varies depending on the size of the investment.

Application Process

Businesses must apply to Ohio Department of Taxation (ODT), providing detailed documentation of the capital investment and the expected impact on job creation.

Ohio Research and Development (R&D) Tax Credit

Overview

Ohio offers a Research and Development (R&D) Tax Credit to incentivize businesses to invest in innovative research activities.  The program supports industries such as technology, manufacturing, and life sciences, encouraging companies to develop new products, processes, and technologies.

Eligibility

• The business must engage in qualified R&D activities in Ohio.

• The research must aim to create or improve products, services, or processes.

• The business must meet specific thresholds for R&D spending.

Incentive Value

• The tax credit is based on a percentage of the company’s qualifying R&D expenditures.

• The credit amount varies depending on the level of investment and the type of R&D activities conducted.

Application Process

Businesses must submit an application to ODT, detailing the R&D activities and related expenditures. Additional documentation may be required to demonstrate the effectiveness of the R&D efforts.

Ohio New Markets Tax Credit (NMTC)

Overview

The Ohio NMTC program encourages investments in low-income communities and economically distressed areas.  The credit provides financial incentives to businesses that invest in projects that stimulate local economic development and job creation.

Eligibility

• The business must invest in economically distressed areas, such as low-income communities or underdeveloped regions.

• The investment must lead to job creation and long-term economic benefits for the community.

Incentive Value

• The tax credit is based on a percentage of the investment in qualifying projects in low-income areas.

• The credit can offset state income taxes for investors who fund eligible projects.

Application Process

Businesses and investors must apply through the Ohio Department of Development (DOD), providing detailed information about the investment, job creation, and community impact.

Ohio Enterprise Zone Program

Overview

The Ohio Enterprise Zone Program provides tax incentives for businesses that invest in specific areas of the state designated as Enterprise Zones.  The program is aimed at encouraging investment in underdeveloped and economically distressed areas of Ohio.

Eligibility

• The business must invest in a designated Enterprise Zone.

• The business must meet job creation and wage standards set by the local community.

• The investment must involve significant capital expenditures, such as the construction or rehabilitation of facilities.

Incentive Value

• Property tax abatements are available for businesses that make qualifying investments in the Enterprise Zone.

• The value of the abatement depends on the scope of the investment and the number of jobs created.

Application Process

Businesses must apply through the local community’s economic development agency, which will submit an application to DOD for approval.

Ohio Tax Increment Financing (TIF)

Overview

Ohio’s TIF program helps businesses finance infrastructure improvements by using future property tax revenues generated by the development.  TIF is particularly useful for urban renewal projects, new construction, and redevelopment initiatives.

Eligibility

• The business must invest in a new development or redevelopment project.

• The project must be located in a designated TIF district.

Incentive Value

• TIF allows businesses to capture the increase in property tax revenues resulting from the development.

• These funds can be used to finance infrastructure improvements, such as roads, utilities, and public facilities.

Application Process

Businesses must work with local governments to establish a TIF district and submit an application to DOD for approval.

Ohio Historic Preservation Tax Credit

Overview

The Ohio Historic Preservation Tax Credit incentivizes the rehabilitation of historic buildings across the state.  This credit supports the restoration of properties listed on the National Register of Historic Places, contributing to the preservation of Ohio’s heritage while promoting economic development.

Eligibility

• The business must be rehabilitating a certified historic property.

• The property must be listed on the National Register of Historic Places or located within a designated historic district.

Incentive Value

• The credit offers up to 25% of the rehabilitation costs for qualifying projects.

• The credit applies to state income taxes and may be applied over several years.

Application Process

Businesses must apply through the Ohio History Connection, submitting documentation of the rehabilitation plan and estimated project costs.

Ohio Workforce Development Grants

Overview

The Ohio Workforce Development Grants program helps businesses provide training to their employees.  The program is designed to enhance worker skills, particularly in high-demand sectors such as manufacturing, healthcare, and technology.

Eligibility

• The business must be located in Ohio.

• The business must provide training in fields where there is a demonstrated need for skilled workers.

Incentive Value

• Grants are available to cover up to 50% of training costs, including instructor fees, training materials, and employee wages.

• Businesses can receive a maximum grant based on the size of the company and the number of employees trained.

Application Process

Businesses must apply through the Ohio Department of Job and Family Services, providing detailed training plans and budgets.