• States Award Tax Credits For Business Expansion
  • March 20, 2015 | Authors: David H. Godenswager; David M. Kall; Susan Millradt McGlone
  • Law Firm: McDonald Hopkins LLC - Cleveland Office
  • Ohio

    In late January, the Ohio Tax Credit Authority (OTCA), the agency charged with reviewing and approving applications for tax credit assistance, granted tax incentives to 14 business projects throughout the state. The Plain Dealer reported that these projects are expected to create or retain more than 2,400 jobs, result in more than $32.5 million per year in new payroll, and spark millions in business investments. Six of the recipients are in Central Ohio, and six are in the Cincinnati area. The remaining two are near Dayton and Toledo.

    The projects cover a variety of industries, including adhesives, transportation, biopharmaceuticals, construction products, literacy materials, and software development.

    The Cincinnati area firms are:
     
    Company

    Description 

    New Full Time Jobs 

    New Payroll 

    Retained Payroll 

    Tax Credit Amount and Duration 

    Gorilla Glue Co. 

    Manufacturer of adhesive solutions

    110 

    $5 million 

    $11.5 million

    55% seven-year tax credit 

    FirstGroup America Inc. & Affiliates 

    International transport operator 

    75 

    $3.9 million

    $28 million 

    45% six-year tax credit 

    Alkermes Inc. 

    Global biopharmaceutical company 

    51 

    $3.2 million 

    $17.5 million 

    50% seven-year tax credit 

    Frutarom USA Inc. 

    Manufacture and market of flavors and ingredients in the food, beverage, and other industries 

    45 

    $2.5 million 

    $3.7 million 

    50% six-year tax credit 

    NPW-USA Inc. 

    Design of gift ideas with decorative packaging for the home-furnishing, personal-care, and toy industries 

    17 

    $1.5 million

    n/a 

    40% six-year tax credit 

    Metcut Research Associates and subsidiary Cincinnati Testing Laboratories

    Independent materials engineering and testing

    15 

    $875,000 

    $10 million 

    35% five-year tax credit

    The Central Ohio recipients are:

     

    Company

    Description

    New Full Time Jobs

    New Payroll

    Retained Payroll

    Tax Credit Amount and Duration

    Benchmark Education Co. 

    Literacy materials for supplementary and intervention use with K-12 students 

    49 

    $1.8 million 

    n/a 

    45% seven-year tax credit 

    Aspen Energy Corp. 

    Energy consulting 

    45 

    $2.7 million 

    $2.9 million 

    45% six-year tax credit 

    J&R Schugel Trucking 

    Temperature-controlled cargo delivery services 

    20 

    $1 million 

    $588,641 

    40% five-year tax credit 

    Precision Tower Products 

    Custom metal fabrication and precision fiber-optic metal cutting 

    30 

    $1.2 million 

    $3.3 million 

    40% five-year tax credit 

    The Laserflex Corp. 

    Custom metal fabrication and precision fiber-optic metal cutting 

    30 

    $1.2 million 

    $3.3 million 

    40% five-year tax credit 

    Vantage Point Logistics 

    Software developer 

    20 

    $1.2 million 

    $812,172 

    40% five-year tax credit 

    The remaining two, in the Dayton and Toledo areas, respectively, are the following:


    Company

    Description

    New Full Time Jobs 

    New Payroll

    Retained Payroll

    Tax Credit Amount and Duration

    Saia-Burgess 

    Supplier of stepper motors, switches, actuators, and electronic controllers to automotive, industrial, and infrastructure automation industry 

    100 

    $3 million 

    $10.5 million 

    50% eight-year tax credit 

    Oldcastle Building Envelope 

    Manufactures architectural and construction building products 

    50 

    $2.2 million 

    $11.5 million 

    45% six-year tax credit 


    According to Cincinnati.com, Gov. Kasich expects these incentives to spur $81.8 million in investment across Ohio.

    California

    Through a program similar to Ohio’s, the California Competes Tax Credit builds upon the state’s efforts to bolster the economy with income tax credits for “businesses that want to come to California or stay and grow in California.”

    Last month, the California Competes Tax Credit Committee announced that it approved $31 million in tax credits for 56 companies that are expanding and creating jobs in California. The awards are projected to result in approximately 4,900 jobs and generate over $900 million in investments in nearly every region of California.

    Through two rounds of awards, 85 firms receiving allocations of about $60 million are expected to create over 10,000 jobs and make close to $3 billion in investments.

    The recipient firms cover a wide range of industries, including biopharmaceutical research and development, agriculture, cheese processing and packing, computer system designing, bottled water manufacturing, and transit bus manufacturing, among others.