Tax Candi

Ohio is home to a number of interesting things - the Rock and Roll Hall of Fame, a pennant-shaped state flag, and the first traffic signal system in America.   They also have a robust economic development program for investments, job retention and job creation; so, let's take a look at Ohio's...

Job Creation Tax Credit

The key things about Ohio's the Job Creation Tax Credit ("JCTC") is a refundable tax credit for new full-time jobs created pursuant to an application to and subsequent agreement with the Tax Credit Authority.  Yes - refundable (Excellent in this economy).  The credit is equal to an agreed-to percentage of the new employees' Ohio income tax withholding during the taxable year. 

To be eligible, a company must create at least 25 net new jobs and their salaries must be 150% of the federal minimum wage (so, $11.25).

The proposed municipality must provide an incentive as well.  As part of the required location portion, the municipality may also grant a nonrefundable tax credit against the municipal income tax (double bonus!).

Interested parties must contact and provide a rather lengthy application to Ohio's Department of Development.