Enterprise Zones Tax Exemptions

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The Enterprise Zone program provides real property tax incentives for non-retail businesses that make eligible new investments to expand or locate in designated areas of Ashtabula County, Ohio (and may provide personal property tax incentives for those qualifying businesses that continue to pay personal property tax). 

Municipalities can offer an exemption of real and/or personal property assessed values of up to 75% for up to 10 years or an average of 60% over the term of the agreement on new investments in buildings, machinery/equipment and improvements to existing land and buildings for a specific project.

Unincorporated areas can offer an exemption of real and/or personal property assessed values of up to 60% for up to 10 years or an average of 50% over the term of the agreement on new investments in buildings, machinery/equipment and improvements to existing land and buildings for a specific project.

Maximum exemption levels may be exceeded with approval by the affected board of education.  These approved thresholds may be up to 100 % exemption for up to 15 years.

Terms are negotiated on a project-by-project basis based on need and overall project impacts.  Businesses must apply prior to making the project investment.

See existing Enterprise Zone areas in Ashtabula County >

• Enterprise Zones

• Community Reinvestment Areas

• Tax Increment Financing

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Community Reinvestment Areas (CRA)

Community Reinvestment Areas provide real property tax exemptions for property owners who renovate existing or construct new buildings in designated areas of Ashtabula County, Ohio.  Maximum exemption on real property only of up to 100% and up to 15 years.

Terms are negotiated on a project-by-project basis based on need and overall project impacts.  Businesses must apply prior to making the project investment.

See existing Community Reinvestment Areas in Ashtabula County >

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Tax Increment Financing (TIF)

Tax Increment Financing is an economic development tool that assists in financing public infrastructure improvements and, in certain circumstances, residential rehabilitation.  A TIF works by locking in the taxable value of real property at the baseline value it holds at the time the authorizing legislation was approved. 

Payments resulting from the increased taxable value of any improvement to real property beyond the baseline amount are directed towards a separate fund to finance the construction of public infrastructure defined within the TIF legislation.

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​Ashtabula County 503 Corporation Revolving Loan Fund

The Ashtabula County 503 Corporation was formed in 1983 as a private, non-profit corporation with the mission of promoting job creation and economic development in Ashtabula County.  To accomplish this mission, the 503 Corporation administers a Revolving Loan Fund. The fund has been capitalized over the years with monies from State and Federal resources. These funds are loaned to businesses in Ashtabula County, usually below market rates. As the loans are repaid, with interest, the Load Fund money becomes available to lend to the next business in need of financing.

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Ashtabula County Port Authority Financing

The Ashtabula County Port Authority can offer economic development financing options including common bond funding, structured lease financing, and special assessment.  In addition, the Port Authority can provide projects with exemptions from sales tax on construction materials.   The Port Authority would need to own the building and lease it to the company for a period of at least three years.

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• Ohio Job Creation Tax Credit (JCTC)

• 166 Direct Loan

• Ohio Enterprise Bond Fond

• Road Work Development (629)

• Jobs Ohio

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Ohio Job Creation Tax Credit (JCTC)
 

JCTC is a refundable tax credit taken against a company's Commercial Activities Tax (CAT).  The credit is awarded in a rate and a term based on the income tax withholdings of new employees.  Credits typically range between 35 – 45% of new withholdings with terms ranging from 5 – 7 years; the maximum term is 15 years.  If the amount of the credit be greater than the business's Commercial Activities Tax liability in any given year of the credit, then the amount of the difference will be refunded.

166 Direct Loan
 

A loan administered by the Office of Financial Incentives for up to 30% of a project's costs or $1 million (the lesser thereof). The remainder of the financing must be through a combination of private financing and at least 10% owner equity. Allowable costs include the acquisition of machinery and equipment, building or land acquisition, and building construction. The interest rate is not to exceed 2/3 of the prime rate and terms range from 7-10 years for the acquisition of machinery and equipment and 10-15 years for real estate.

Ohio Enterprise Bond Fund
 

Through this bond fund, which is rated AA- by Standard and Poors, the Ohio Department of Development issues bonds, the proceeds of which are loaned to businesses for eligible projects. Allowable costs include acquisition of machinery and equipment, building or land acquisition, and building construction. The Ohio Enterprise Bond Fund can finance up to 90% of eligible project costs or $10 million (the lesser thereof), with terms ranging up to 20 years.

Roadwork Development (629)

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.

JobsOhio Programs

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Revitalization Program 

The program provides loans (up to $5 million) and grants (up to $1 million) to help revitalize Ohio sites in preparation for businesses that support future job creation opportunities.  The program is available to public and private entities seeking to cleanup and redevelop sites across Ohio.

Economic Development Grant

The program is used to promote business expansion and job creation by providing funding for eligible projects in Ohio.  Grant decisions are based on project factors such as job creation, new payroll, fixed-asset investment, project return on investment, and project location.

Growth Fund

The program provides loans (up to $5 million and up to 15 years) 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.

Workforce Grant

The program is used to promote business expansion and job creation by providing funding for the improvement of worker skills and abilities.  Grant decisions are based on project factors such as job creation, new payroll, fixed-asset investment, project return on investment, and project location.  The program requires job creation and employee training within a specified period of time (usually 3 years) and may consider the amount of proceeds per job created and employees trained.  Eligible training costs may include: IT, Maintenance, Skilled trades, Leadership skills, Product knowledge, Quality and process management, Safety (industry specific), Supervisory, Technical processes, Technical training, On-the-Job training, Equipment, Materials, and Travel costs.