Click here to view ODOD Tax Credit  Information

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Community Reinvestment Areas (CRAs)


Local real property tax incentives for business that expand or locate in Ohio.



Up to 100% exemption of the value of real property improvement for up to 15 years.



Property owner must undertake new real property investment. The term of the exemption is established by the local legislative authority, but cannot exceed 15 years on new construction or 12 years on major renovation projects. Application for the real property local tax exemption is made directly to the municipality or county that created the CRA. CRAs must be confirmed by ODOD prior to executing of a tax incentive agreement.



Substantial real estate property tax reduction. See ORC 3735.65-70.

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Click here to view ODOD Enterprise Zone Information

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Enterprise Zone Program


Local and state tax incentives for businesses that expand or locate in Butler County, Ohio. Butler County guidelines regulate the type of business and investment eligible for incentive.



In municipalities, up to 75% exemption of the value of real property improvements and/or new tangible personal property for up to 10 years. In unincorporated areas, incentives can be up to 60% exemption of the value of new real and/or personal property for up to 10 years.

State franchise tax benefits are available to businesses which are in compliance with the local enterprise zone agreement and document a minimum of 25% of the new hires coming from specific disenfranchised groups.

Additional state incentives include health care subsidies and disadvantaged worker hiring credits.


Business must agree to retain or create employment and establish, expand, renovate or occupy a facility in an Enterprise Zone. An agreement must be in place prior to start of project. Retail projects are not eligible unless the site is within a designated Impacted City Area. Projects involving relocation of assets or employment positions within Ohio are restricted and must meet specific requirements.



Prior to project initiation, business applies to Butler County for local property tax exemptions. Between January 1st and April 30th of each calendar year, an eligible business may apply to the Director of the Ohio Department of Development for state franchise tax incentives.

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Click here to view Ohio's Business incentives!

Overview

The U.S. Small Business Administration’s 504 Affordable Loans are available only through Certified Development Companies.  The CDC of Butler County, Inc. (CDCBC) is an authorized lender and has administered hundreds of loans in Butler County since 1983.  In November 2003, the CDCBC became authorized to lend throughout the State of Ohio.  For additional information, call (513) 887-3404 or click on www.cdcbutlercountyohio.org

The main benefits to the program include:

• Fixed Rates
• Long Terms
• Low Down Payments

 
The mission of the SBA 504 Affordable Loan Program is economic development through business expansion and job creation.   

• The SBA requires that one job be created for each $50,000 in loan debenture. 
• Under the Small Manufacturer’s Program, the SBA requires one job be created for each $100,000 in loan debenture.
• The jobs should be created within two years of SBA debenture funding.

 
Qualified businesses must be a for-profit corporation, partnership or sole-proprietorship.  

The small business concern:

• May not have tangible net worth in excess of $7 million
• May not have an average net income after tax in excess of $2.5 million over a two year period. 

Approved/Unapproved Uses

Approved uses for the SBA 504 Affordable Loan Program:

• land acquisition
• existing building purchase
• new construction
• renovation and expansion
• machinery and equipment
• leasehold improvements
• reasonable contingencies 

 Unapproved uses for the SBA 504 Affordable Loan Program: 

• investment property
• residential uses
• inventory
• vehicles
• refinancing
• working capital

The CDCBC can finance up to 40% of a project by issuing a debenture 100% backed by the U.S. Small Business Administration.   

• Maximum loan debenture amounts for typical SBA 504’s recently increased from $1 million to $1.5 million. 
• Maximum amounts for loans issued under the SBA’s Public Policy guidelines increased from $1.3 million to $2 million.
• Maximum amounts for the Small Manufacturer’s Loan Program is $4 million.

For a typical SBA 504, 50% of the loan is provided by a private lender, usually a bank.  40% of the total loan is made available through the CDCBC’s SBA 504 program, and 10% is provided by the small business concern.

• If the small business concern is a start-up company, or if the project is a single-use facility construction project, a higher equity injection from the business would be required, up to 20% of the project cost if both conditions exist. 

Fees 

• A fee of $1,000 is required by the CDCBC at time of application.  This fee shall be refunded to the small business when the SBA loan is funded or if the loan request is declined by the CDCBC or the SBA. 
   
• Other fees, including processing and funding fees, reserve amount and underwriters’ fee, amount to approximately 3% of the project cost and are financed into the loan.  Minimum servicing fees are added to the monthly principle and interest payment.

 Interest and Terms 

• 20 year fixed terms for real property
• 10 year fixed terms for machinery and equipment
• Near market rate.

For more information go to:
Certified Development Co.,  Inc. of Butler County

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Click here to view Ohio's Business incentives!

Overview

Loans from Butler County’s Revolving Loan Fund are available through the Certified Development Company of Butler County, Inc. (CDCBC).  The CDCBC has administered hundreds of loans for Butler County’s small businesses since 1983.   

The main benefits to the program include: 

• Low Down Payments – usually 10%
• Fixed Rates – Interest charges typically range between 4 - 8%
• Short Terms – Loan Maturity generally ranges from two to five years with equal monthly payments

The mission of the Revolving Loan Fund is economic development through business expansion and job creation. 

• Butler County requires that one job must be created for each $35,000 in RLF assistance. 

• A minimum of 51% of the jobs created or retained must be available for lower and moderate income persons.

Qualified businesses must be a for-profit corporation, partnership or sole-proprietorship. 

Approved/Unapproved Uses

Approved uses for the Revolving Loan Fund: 

• land acquisition
• existing building purchase
• new construction
• renovation and expansion
• machinery and equipment
• working capital loans considered on a case by case basis 

 Unapproved Uses for the Revolving Loan Fund: 

• Investment Property
• Residential uses
• Refinancing
• Building purchase if business does not occupy 50% of the space

• The minimum loan amount is $15,000.
• The maximum loan amount varies, depending on the RLF fund balances.

• Bank participation is required on most RLF loans.
• The applicant business, under most circumstances, must inject a minimum of 10%.

• The business must occupy and operate within the site where loan proceeds are applied

Fees 

• A non-refundable application fee of $100 must accompany the formal application.
• Closing Cost includes a non-refundable servicing fee equalling  ½% of 1% of the loan amount (minimum $300; maximum $1,000) plus legal council fees paid at closing.

For more information go to:
Certified Development Co. Inc. of Butler County

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State and municipal tax incentives for business that expand or locate in Ohio. State guidelines regulate the type of business and project eligible for this incentive.



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. The amount of the tax credit can be up to 75% for up to 10 years. The tax credit can exceed 75% only upon recommendation of the Director that there is an extraordinary circumstance that merits an exception. Approved projects generally range between 50% to 60% for 5 to 10 years. Municipalities can provide a similar arrangement with their local employee income taxes.



A five-member authority determines eligibility and terms. Businesses must agree to create at least 25 new, full-time jobs with 3 years of operation. The average wage of all employees must be at least 150% of the current federal minimum wage. The business must demonstrate to the state that the tax credit is a major factor in its decision to go forward with the project. The local community must also provide financial support for the project.



Substantial state and municipal tax reductions, which minimize capital expenditure to encourage business expansions and locations in Ohio.

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A non-refundable corporate franchise income tax credit for a company that purchases new or retools qualified machinery and equipment that is located in Ohio and is used for manufacturing.



The company shall receive a 7.5% tax credit on a company's machinery and equipment investment. A tax credit of 13.5% is available to companies making investments in designated "eligible areas" as defined by the Ohio Department of Development. The manufacturing machinery and equipment tax credit would be divided equally over 7 years, and the company is permitted to carry forward any unused tax credit amount for up to three years.



The credit is based on the amount of the investment in excesss of the company's average investment in a county during 1992, 93 and 94. Equipment must be new to Ohio or be a retooling of current manufacturing equipment. A company must file a Notice of Intent to claim the credit each year. If the anticipated credit exceeds $1 million, special requirements apply.

There are two eligible investment periods: Calendar year 1997; and Calendar year 1998. All eligible equipment must be set in operation by December 31, 1999.



Encourages expansion of existing operations and supports additional investment into the state

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Research and Development Tax Credit
Click here to view ODOD Research & Development Tax Credit Information
Click here to view Ohio's Business incentives!

A sales tax exemption for machinery and equipment used in research and development.



The exemption applies only to equipment, and the equipment must be used in qualified research and development activities.

Qualified research includes "pure" research (scientific or technological inquiry and experimentation in the physical sciences) and "directed" research (research conducted to design, create or formulate new or better products, equipment or manufacturing processes).



Ohio companies received financial incentives to produce and perfect the technologies and products of the future.

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Ohio Export Tax Credit
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A non-refundable franchise tax credit for corporate or individual taxpayers who increase export sales, if they also increase either Ohio payroll or Ohio capital expenditures.



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. Export sales are defined as those sales that qualify for special Foreign Sales Corporation (FSC) federal tax treatment.



Generally, a business is able to claim a 10% credit of pre-tax profit increase in export sales, as long as either Ohio payroll or property values increased by 10% over the previous 3 years. If increase is less than 10%, the credit is proportionately reduced.

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All products shipped into Ohio, held for storage only, and shipped outside of Ohio will be exempt from personal property inventory tax.



Assessed value of personal property for purposes of taxation is zero.



Exemption will be for merchandise or agricultural products shipped into Ohio, held in Ohio in any warehouse without further manufacturing or processing, and shipped outside of Ohio to any person for any purpose.



State tax reduction that enhances Ohio's competitiveness as an excellent location for warehouses, distribution centers and direct marketing facilities.

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On-going manufacturing concern (must be owner occupied); preference give to manufacturing.



$1 million/$350,000; 30% of eligible costs.



Private lender required; 10% owner cash equity mandatory. The 166 program is take-out financing.



Eligible: Acquire land and building; new construction; renovate existing building; acquire new and/or used machinery & equipment; and project-related soft costs.



Up to 15 years for real estate; up to 10 years machinery & equipment.



Currently fixed at 5% plus _% annual servicing fee.



$15,000/job created or justifiably retained; jobs must be created within 3 years after project completion.



Personal guarantee(s) of owner(s); corporate guarantee; shared collateral position with bank; key person life insurance; and additional covenants.



Applies to all new construction, renovation and installation of machinery & equipment.



$1,500 non-refundable application fee; accountant fees (if any); and 2% non-refundable commitment fee.

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Ohio Investment in Training Program
Click here to view Ohio's Business incentives!


Primarily manufacturing or manufacturing-related businesses; must create or retain jobs to be eligible.



Orientation, training for new or current workers, management techniques, statistical process control training; instructor training, linkage with related programs.



Job creation and retention; productivity; improved labor/management relations; educated work force.



Up to 50% funding for orientation, training and management programs; instructional materials, instructor training.



Businesses apply for this program through 12 district statewide offices. Competition is great for OITP funds.

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Enterprise Ohio Grant Program
Click here to view Ohio's Business incentives!


Manufacturers and manufacturing-related companies as well as those experiencing a shortage of information technology skills may participate. A wide variety of companies are eligible, so please call one of the Business & Industry Centers if you think you may qualify.



Grant funds may be used for manufacturing or manufacturing-related training, as well as for technical training (primarily computer training). Your company may be eligible to reduce training costs up to 75% for employee training by partnering with Miami University Middletown and Miami Univeristy Hamilton.



Job creation and retention; productivity; improved labor/management relations; educated work force.



Small companies with less than 100 employees are eligible to receive up to 75 % of the cost of training funded through this program. Companies with greater than 100 employees can receive up to 50% in funding.

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