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Tax Structure & Business Incentives

 

Businesses in the Mansfield Area benefit from:

  • No personal property tax
  • No inventory tax
  • No state corporate income tax

In addition to these tax savings, state and local governments offer tax incentives, credits, loans and grants to new businesses and expanding companies.

Local Incentives

 

Real Estate Tax Abatements - Enterprise Zone or Community Reinvestment Area
Mansfield, Shelby, Ontario, Lexington

Manufacturing, warehouse/distribution, research & development, professional services, and commercial oriented businesses interested in expanding or locating in designated areas may be eligible for tax abatement of up to 100% of real property taxes for up to 15 years. Projects must involve a substantial investment and create quality, full-time equivalent jobs.

Job Creation Tax Credit
Mansfield

The Job Creation Tax Credit (JCTC) is a refundable tax credit that generally matches the state level JCTC incentive and generally needs to meet all three of the following criteria

  • Creating at least 10 new jobs (within three years)
  • Paying at least 150% of the federal minimum wage.
  • Total new minimum annual payroll of $660,000

Most business projects are eligible except point of purchase retail. The project must include substantial fixed-asset investment in land, building, machinery/equipment and/or infrastructure. The tax credit is a percentage of the municipal income tax withholdings for all new employees hired under the program.

 

Ontario

Similar to the JCTC listed above, however not tied to a state level incentive. This creates a lower threshold access to access the incentive.

  • Creating at least 10 new jobs (within three years)
  • Paying at least 150% of the federal minimum wage.


Incumbent Workforce Voucher

All of Richland County

The Ohio Incumbent Workforce Voucher Program will reimburse employers for up to 50% of the eligible employee training costs, up to $4,000 per employee. The program is designed to allow employers to retain and grow their existing Ohio workforce and create a statewide workforce that can meet the present and future demands in an ever-changing economy.

 

Foreign Trade Zone

All of Richland County
Richland County is included in Foreign Trade Zone 181, offering sites that provide numerous cost-reduction benefits for companies doing business globally. These sites, which include prime industrial and warehouse space, can mean significant, ongoing savings. Enquire for more details.

Tax Increment Financing

Mansfield, Ontario

Fixed Rate Tax Increment Financing (TIF) is a financing alternative for qualifying projects resulting in more favorable financing terms. A TIF must be used to finance infrastructure needed for a project and for which there is a common public good. Qualifying public works include streets, parking, water and utilities.

 

New Markets Tax Credit
Eligible census tracts in Mansfield and Shelby

Select industrial and business sites in Mansfield and Shelby are potentially eligible for the New Markets Tax Credit program. Qualifying projects may be eligible to receive up to 39% of the cost of fixed asset investment by the company. See map


Revolving Loan Fund – Gap financing

All of Richland County
The Revolving Loan Fund serves as gap financing for employers creating jobs for low-to-moderate income workers. Loans can be up to $150,000 based on full-time jobs created and should not account for more than 1/3 of the total project cost. Terms generally match the bank loan for the project.



JobsOhio Loan and Grant Programs

JobsOhio Economic Development Grant

The JobsOhio Economic Development Grant exists to promote economic development, business expansion and job creation by providing funding for eligible projects in the state of Ohio.

 

JobsOhio Growth Fund

The JobsOhio Growth Fund provides capital for expansion projects to companies that have limited access to 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 revenue through a proven business plan.

 

Research and Development Center Grant

The JobsOhio Research and Development Center Grant facilitates the creation of corporate R&D centers in Ohio to support the development and commercialization of emerging technologies and products.

 

JobsOhio Revitalization Program

The JobsOhio Revitalization Program focuses on helping rejuvenate sites in preparation for end-users that support job creation opportunities for Ohioans. The program, which includes both loans and grants, is available to public and private entities seeking to clean up and redevelop sites across Ohio.

 

JobsOhio Workforce Grant

The JobsOhio Workforce Grant promotes economic development, business expansion and job creation by providing funding to companies for employee development and training programs.

 

State Loan and Grant Programs

Research and Development Investment Loan Fund

The Research and Development Investment Loan Fund provides loan financing ranging from $500,000 to $5 million for projects primarily engaging in R&D activity. The loans have fixed rates (at or below market rates) and other loan terms similar to those of commercial bank financing. Companies receive a dollar-for-dollar, nonrefundable Ohio commercial activity tax credit for principal and interest payments made during the year up to $150,000 during the loan term.

 

166 Direct Loan

The 166 Direct Loan gives eligible businesses loans for land and building acquisition, construction, expansion or renovation, and equipment purchases. The program provides low-interest loans up to 40 percent of the cost not to exceed $1.5 million.

 

Ohio Enterprise Bond Fund

The Ohio Enterprise Bond Fund offers revenue bond financing through an S&P-rated fund, whereby proceeds from the sale of bonds are loaned to companies for fixed-rate, long-term capital asset financing. Rates are market-driven and fixed prior to funding. Loan terms range from seven to 10 years for equipment and 15 to 20 years for real estate. Up to $10 million in financing is available through the program.

 

Innovation Ohio Loan Fund

The Innovation Ohio Loan Fund provides loans for acquisition, construction and related capital costs of technology, facilities and equipment purchases. The fund was created to help Ohio companies develop next-generation products and services within the state's key industry sectors. Loans range from from $500,000 to $1.5 million and can cover up to 75 percent of the project cost.

 

Roadwork Development (629) Funds

Roadwork Development (629) Funds are available for public roadway improvements, including engineering and design costs. Funds are accessible for projects that create or retain jobs and primarily involve manufacturing, technology, research and development, corporate headquarters and distribution activity. Grants are provided to a local jurisdiction and require local participation. They can be used to reimburse accumulated costs.

 

State Tax Credits

Job Creation Tax Credit

The Job Creation Tax Credit is a refundable and performance-based tax credit calculated as a percent of created payroll and applied toward the company's commercial activity tax liability. Should the amount of the credit exceed the company's commercial activity tax liability for any given year, the difference is refunded. Companies creating at least 10 jobs (within three years) with a minimum annual payroll of $660,000 and that pay at least 150 percent of the federal minimum wage are eligible for the credit; however, they must apply for the credit before committing to a project. The Ohio Tax Credit Authority must approve applicants before hiring begins.

 

DataCenter Tax Abatement

The Data Center Tax Abatement provides a sales-tax exemption rate and term that allow for partial or full sales tax exemption on the purchase of eligible data center equipment. Projects must meet minimum investment and payroll thresholds to be eligible. Final approval of the tax exemption is contingent upon the approval of the Ohio Tax Credit Authority.


Basic 7(a) Loan Program

The SBA 7(a) Loan Program can be used for most sound business purposes including working capital, equipment, furniture, land and building, leasehold improvements, and debt refinancing (under special conditions).

 

504 Loan Program

The SBA's 504 Loan program offers small businesses another avenue for business financing, while promoting business growth, and job creation.

 


Business & Industry Guarantee

The purpose of the Business & Industry Guaranteed Loan Program (B&I) is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities.

 

Rural Energy for America

Under the Rural Energy for America Program, project developers will work with local lenders, who in turn can apply to USDA Rural Development for a loan guarantee up to 85 percent of the loan amount.  

 

Rural Economic Development Loan & Grant

Under the Rural Economic Development Loan and Grant (REDLG), USDA provides zero interest loans to local utilities, which they in turn pass through to local businesses for projects that will create and retain employment.

 

Rural Business Investment

USDA licenses newly formed for-profit investment fund entities as Rural Business Investment Company's (RBIC)s. RBIC’s use the equity raised in capitalizing their fund to make equity, and equity-like, investments.