incentives

Working closely with the State of Ohio, Ashtabula County offers a competitive incentive package for businesses looking to locate or to expand within Ashtabula County. The professional staff at Growth Partnership is available to assist businesses that want to take advantage of these incentives without the worry. If you are looking to relocate to Ashtabula County or undergo an expansion project, please contact Growth Partnership today to discuss low interest loans, tax credits, training dollars, and local tax incentives.

Local Tax Incentives

Community Reinvestment Areas
Conneaut City, Geneva City, Ashtabula City, Orwell Village, and Andover Village are all Community Reinvestment Areas (CRA). These communities offer tax reductions on real property taxes.

Enterprise Zone Tax Incentives
In an effort to spur revitalization of Ashtabula County’s industrial base, the county has designed an Enterprise Zone to encourage investment and job creation. Within the Enterprise Zone, which covers 80% of the county, special tax incentives are offered to businesses that invest in capital improvements and create and/or retain jobs.

State law permits up to 60% reduction of new real and personal property taxes for a period of up to 15 years in an unincorporated area; and up to 75% reduction for a period of up to 15 years in an incorporated area.

Low Interest Loans

The Ohio Department of Development (ODOD) offers a number of low interest loans and grants to entice business into the state of Ohio. There is the Ohio Enterprise Bond Fund, the 166 Direct Loan, the Pioneer Rural Loan, and the Rural Industrial Park Loan to name a few of the most commonly used.

The Ohio Enterprise Bond Fund is used when a project will induce a $1.5 million to $10 million investment in land and building acquisition, construction, renovation, and equipment purchases. The eligibility for this program is based on job creation and repayment and management capabilities, along with the use of Ohio prevailing wage. Up to 90% of the total project cost is eligible and the long-term fixed rates for up to 20 years will apply for commercial or industrial projects.

The 166 Direct Loan program provides low interest loans for land and building acquisition, expansion or renovation, and equipment purchases. The amount they lend ranges from $350,000-$1 million. You must have 10% equity and be in a “distressed” area as labeled by the State. To be eligible for this program you must retain one job for every $15,000 received and use prevailing wage on the site during project construction.

The Pioneer Rural Loan also provides loans for land and building acquisition, new construction, renovation and expansion of existing buildings and acquisition of machinery and equipment for businesses locating or expanding in Ohio’s rural areas. The maximum loan amount is $750,000 and cannot exceed 75% of total fixed asset costs. Eligibility requires that the project creates or retains 1 job for every $35,000 of state investment during the first three years of the project.

The Rural Industrial Park Loan provides direct loans and loan guarantees to applicants in “rural” or “distressed” communities who are dedicated to building a well-planned industrial park. This loan cannot exceed 75% of total eligible project costs and will not exceed the $1million mark.

Tax Credits

The Ohio Department of Development (ODOD) offers a number of Tax Credits to business willing to locate in Ohio. The Ohio Job Creation Tax Credit (JCTC), the Training Tax Credit, and the Ohio Manufacturing Machinery and Equipment Investment Tax Credit are a few of the most commonly used.

The Ohio Job Creation Tax Credit (JCTC) is a state program that credits back state income tax for businesses that expand or locate in Ohio. The Ohio Tax Credit Authority determines the businesses eligibility for JCTC and the local community must also provide support for the project. JCTC is only an option when 25 or more new full-time positions are created.

The Training Tax Credit provides tax credits for employers that will train existing employees who could lose their jobs because of lack of training. Businesses will receive up to $100,000 per year. This program shows the states support for retention projects in the state.

The Ohio Manufacturing Machinery and Equipment Investment Tax Credit is a program that provides a nonrefundable corporate franchise or state income tax credit to Ohio manufacturers that purchase new or retooled machinery and equipment. The credit is divided equally over seven years and the machinery and equipment must be new to the Ohio tax roles.

Training Dollars

The Ohio Department of Development (ODOD) offers a program called the Ohio Investment in Training Program (OITP). This program provides up to 50% reimbursement for instructional costs, materials and training-related activities with an emphasis on the manufacturing sector.