- Ohio Tax Incentives for Small Business
- March 28, 2013 | Author: Richard B. Fry
- Law Firm: Buckingham, Doolittle & Burroughs, LLC - Akron Office
With added emphasis on job creation and growth to promote the current economic recovery, Ohio is offering many incentives to businesses willing to expand their operations or workforce in Ohio. While traditionally limited to only larger businesses, the state has increasingly focused on providing incentives for small business expansion. One such benefit is InvestOhio which provides a 10% Ohio personal income tax credit for cash investments in qualifying small business enterprises. Investments in any business with less than $50 million in assets or $10 million in annual sales, and more than half its workforce in Ohio, will qualify for the InvestOhio credit. The small business must use the invested funds within six months to purchase real or personal property used in business in Ohio, to acquire or develop intangible property, such as patents, trademarks or licenses, used in Ohio, or for compensation paid to new Ohio employees. InvestOhio credits are awarded on a first-come, first-serve basis, so there is no need to establish that the credit was a major factor in undertaking the project. Owners of such qualifying enterprises should take advantage of the InvestOhio credit when making planned equipment purchases, hiring new workers or any other large expenditures.
Other incentives, such as low-interest loans, grants and other tax credits, may also be available to small businesses. Many are awarded to businesses in targeted locations, such as the Ohio Enterprise Zone Program, or targeted industries. For instance, the new Ohio Incumbent Workforce Training Voucher Program provides benefits to employers in certain industries which providing training to their Ohio employees. The voucher program is available for businesses in advanced manufacturing, aerospace and aviation, automotive, biohealth, energy, financial services, food processing, information technology and services, and polymers and chemicals.
We can help determine which incentives are available for your Ohio small business and make sure you are taking advantage of all the programs Ohio has to offer.