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Tax Structure & Business Incentives

Businesses in the Mansfield Region 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

City of Mansfield Incentives

Enterprise Zone Tax Abatements
Manufacturing, warehouse/distribution, and research and development oriented businesses interested in expanding or locating in the City of Mansfield may be eligible for tax abatement of real property taxes for a period up to years.  Projects must involve a substantial investment and create quality, full-time equivalent jobs.

Revolving Loan Fund   
Mansfield uses community development block grant funds to serve as gap financing for employers creating jobs for low-to-moderate income workers.  The City may lend up to $150,000 in RLF funds based on a maximum of up tp $5,000 per full-time job created.  The City RLF loan can’t exceed 33% of the total project cost.

Foreign Trade Zone
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.

New Markets Tax Credits
Select sites in the Mansfield Industrial Park are potentially eligible for the New Market Tax Credit program.  Qualifying projects may be eligible to receive up to 39% of the cost of fixed asset investment by the company.     

City of Ontario Incentives

Community Reinvestment Area Tax Abatements
Manufacturing, warehouse/distribution, research and 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
The Job Creation Tax Credit is a refundable tax credit to companies generally creating at least 10 new jobs (within three years) with a minimum annual payroll of $660,000 that pay at least 150 percent of the federal minimum wage. Eligible  projects may include any non-point of final purchase retail project as well as headquarters, manufacturing, science, technology, research and development, distribution and certain types of service projects  The project must include substantial fixed-asset investment in land, building, machinery/equipment and/or infrastructure. The tax credit is measured as a percentage of the municipal income tax withholdings for all new employees hired under the program.    A business must apply for the credit before committing to the project.   

Foreign Trade Zone
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.

Revolving Loan Fund   
Richland County offers an Industrial Revolving Loan Fund. This focuses on job development in low and moderate income areas. Loans cannot exceed $150,000 dollars for any one business and should not account for more than 33.3% of the total project cost. The revolving loan program is only to be used as "leverage" or "gap financing" in connection with a conventional bank loan and some personal equity. 

City of Shelby Incentives

Community Reinvestment Area Tax Abatements
The City of Shelby is a Community Reinvestment Area and as such may provide companies locating in a designated Community Reinvestment Area an exemption of up to 100 percent of improvement value for up to 15 years on real property taxes.  Agreement must be negotiated with the City beforehand and is not available if Enterprise Zone agreement is negotiated.

Enterprise Zone Tax Abatements
Richland County Enterprise Zone Tax Abatements: Manufacturing, warehouse/distribution, and research and development oriented businesses interested in expanding or locating in the City of Shelby may be eligible for tax abatement of real and personal property taxes for up to 10 years. Projects must involve a substantial investment and create quality, full-time equivalent jobs.  The agreement must be negotiated beforehand and is not available if a CRA agreement is negotiated.

Foreign Trade Zone
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.

Revolving Loan Fund   
Richland County offers an Industrial Revolving Loan Fund. This focuses on job development in low and moderate income areas. Loans cannot exceed $150,000 dollars for any one business and should not account for more than 33.3% of the total project cost. The revolving loan program is only to be used as "leverage" or "gap financing" in connection with a conventional bank loan and some personal equity.

See Shelby Industrial Park

State of Ohio Incentives

OBSOHIO LOAN AND GRANT PROGRAMS

JobsOhio Growth Fund Loan
The JobsOhio Growth Fund provides capital 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.

The JobsOhio Growth Fund’s loan decisions are based on a number of project factors, including but not limited to job creation, additional payroll, fixed-asset investment commitment, project return on investment, and project location.

JobsOhio Workforce Grant
The JobsOhio Workforce Grant was created to promote economic development, business expansion, and job creation by providing funding for the improvement of worker skills and abilities in the State of Ohio. Grant decisions are based on a number of project factors, including but not limited to job creation, additional payroll, fixed-asset investment commitment, project return on investment, and project location.

JobsOhio Economic Development Grant
The JobsOhio Economic Development Grant was created to promote economic development, business expansion, and job creation by providing funding for eligible projects in the State of Ohio. Grant decisions are based on a number of project factors, including but not limited to job creation, additional payroll, fixed-asset investment commitment, project return on investment, and project location.

JobsOhio Revitalization Program
The JobsOhio Revitalization Program is focused on helping revitalize sites in preparation for end-users that support future job creation opportunities for Ohioans. The program, comprised of both loans and grants, is available to public and private entities seeking to cleanup and redevelop sites across Ohio.

State Tax Credits And Abatements

Job Creation Tax Credit
The Job Creation Tax Credit is a refundable tax credit to companies generally creating at least 10 new jobs (within three years) with a minimum annual payroll of $660,000 that pay at least 150 percent of the federal minimum wage. The tax credit is measured as a percentage of the state income tax withholdings for all new employees hired under the program, and is 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. A business must apply for the credit before committing to the project. Applicants must be approved through the Ohio Tax Credit Authority before hiring begins.

Ohio Enterprise Zone Program
The Ohio Enterprise Zone Program provides real property tax incentives for businesses that expand or relocate in Ohio. To establish an Enterprise Zone, a municipality or county must apply to the Director of Development for certification. To secure benefits, businesses must apply to the local community. Certain qualifying businesses may be eligible for additional benefits.

Community Reinvestment Areas
The Community Reinvestment Areas provide companies locating in a designated Community Reinvestment Area an exemption of up to 100 percent of improvement value for up to 15 years on real property taxes. To be eligible, a company must make an agreement with the local community prior to going forward with the qualifying project.

State Financing

Research and Development Investment Loan
The Research and Development Investment Loan Fund provides loan financing between $500,000 and $5 million for projects primarily engaging in research and development activity. Rates are fixed (at- or below-market rates) with other loan terms similar to those of commercial bank financing. Companies receive a dollar-for-dollar, non- refundable Ohio commercial activity tax credit for principal and interest payments made during the year up to $150,000 during the loan term.

Research and Development Investment Tax Credit
The Research and Development Investment Tax Credit provides a non-refundable tax credit up to seven percent for qualified research and development expenses. Qualifying expenses fit into two categories: in-house research expenses, and contracted research expenses. Any unused portion of a tax credit may be carried forward for up to seven years.

Ohio Enterprise Bond Fund
The Ohio Enterprise Bond Fund provides 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 between 7 to 10 years for equipment and 15 to 20 years for real estate. Up to $10 million in financing is available through the program.

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

Regional 166 Direct Loan
The Regional 166 Direct Loan provides loans for land and building acquisition, construction, expansion, or renovation, and equipment purchases for eligible businesses. Regional economic development agencies administer the program. It provides low-interest loans up to 75 percent collateral value, not to exceed $500,000.

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 assist existing Ohio companies in developing next-generation products and services within the state’s Industry Sectors up to 75 percent ranging from $500,000 to $1.5 million.

State Grants

Roadwork Development (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.