Greater Erie County (Ohio) Marketing Group

FINANCIAL INCENTIVES

Greater Erie County Marketing Group Inc. (GEM) is the lead contact for business and industry considering expansion and relocation to the area. Our services include facilitating access to public financial assistance and tax incentives. GEM provides free confidential and professional services to all clients throughout their project's feasibility, application, and implementation phases.

Tax Exemptions & Credits

Ohio Enterprise Zone Program: Local and state tax incentives for businesses that expand or locate in Ohio. Business must agree to retain or create employment and establish, expand, renovate or occupy a facility in an Enterprise Zone.
State Ohio Job Creation Tax Credit: State and municipal tax incentives for businesses that expand or locate in Ohio. A business can receive a refundable tax credit against its corporate franchise/income tax based on the state income tax withheld on new, full-time employees. Businesses must agree to create at least 25 new, full-time jobs within 3 years of operation.
Ohio Export Tax Credit: A non-refundable franchise tax credit for corporate or individual taxpayers who increase export sales. The credit is based on the average increase in export sales during the two years prior to the year in which the credit is claimed. Generally, a business is able to claim a 10% credit of pre-tax profit from increase in export sales.
Ohio Manufacturers Investment Credit: A non-refundable corporate franchise income tax credit for a company that purchases new or retools qualified machinery and equipment used for manufacturing. The company shall receive a 7.5% tax credit on a company's machinery and equipment investment. Equipment must be new to Ohio or be a retooling of current manufacturing equipment.
Warehouse Inventory Tax Exemption: All products shipped into Ohio, held for storage only, and shipped outside of Ohio will be exempt from personal property inventory tax.
Warehouse Equipment Sales Tax Exemption: The exemption applies to equipment used primarily (at least 51%) in storing, transporting, mailing, or handling inventory in a warehouse, distribution center, or similar facility.
Research and Development Tax Credit: A sales tax exemption for machinery and equipment used in research and development. The exemption applies to equipment used in qualified research and development activities.

Business Public Financing Incentives

State

166

Loans

Regional

166

Loans

CDBG

Loans

SBA

504

Loans

State

Mini

Loans

State

Linked

Deposit

Federal

IRB

Program

State

Bond

Fund

State

Minority

Loans

Local

RLF

Loans

Business

Type

Industrial

Industrial/

Commercial

Industrial/

Commercial

Industrial/

Commercial

Industrial/

Commercial

Small Business

150 empl. or less

Industrial

Industrial/

Commercial

Certified

Minority

Business

(MBE)

Industrial/

Commercial

Max/

Min

$1 MM/

$350,000

30% of project

$350,000/

local det.

30-40% of project

$500,000/

local det.

30-40% of project

$750,000/

$50,000

40% of project

$100,000/

$10,000

45% of project

case by case

$10 MM/

$1 MM

L.O.C. req.

$10 MM/

$2 MM

$200,000/

$10,000

40% of project

$50,000/

$10,000

30% of project

Eligible

Items

Fixed assets

Working capital

Fixed assets

Working capital

Term

Up to 15 years-real estate

10 years M&E

Up to 15 years-real estate

10 years M&E

Up to 15 years-real estate

10 years M&E

Up to 20 years on real estate, 10 years M&E

Lender determined

Lender determined, 2 years for discount

L.O.C. lender determined

Up to 20 years on real estate, 120% of avg. life of assets

Up to 10 years,

may be amortized longer

Tied to assets and private lender terms

Rate

Currently fixed at 5%

Negotiable,

fixed

Fixed, 1% above Treasury bonds

5.5% on guaranteed portion (45%)

3% discount on current lender rate for two years

Fixed or variable market rates

Fixed bond market rate at time of sale

4.5% fixed

Negotiable, fixed

5-7%

$/Job

$15,000 per job within 3 years of project completion

$10,000 per job within 24 months of project completion

$35,000 per job within 2 years of project completion

$10-15,000 per job

$15-25,000 per job

Must demonstrate public purpose

$15,000 per job within three years of project completion

$10,000 per job within 24 months of project completion

All programs are subject to amendments and revisions without notice.

Links to other financial incentive sites:

Ohio Department of Development

Toledo Lucas County Port Authority

GEM Revolving Loan Fund

Page Design
& Graphics by:

Lake Erie photos by:
Roger W. Fair

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Page last updated June 9, 2008