How State and Local Tax Incentives Can Help your Business Grow
When beginning a new business venture or growing an existing one, there are many steps and countless things to consider. One consideration that may not always be apparent is how to save money. Luckily, the state of Ohio and many local municipalities are interested in offering grants, credits, loans, and other incentives to encourage organizations to grow and develop within the state of Ohio. One commonality all tax incentive opportunities have is that they must create jobs within the state.
What Qualifies to Receive State and Local Credits and Incentives?
The organization must have a distinct project outline in place. A project is defined as a plan for future endeavors to invest, create jobs, and present local competition. Qualifying for these incentives will vary based on the scope of the project, but typically involve a baseline investment of $50,000 on real property assets and create a minimum of 10 new jobs within the state of Ohio.
Types of Tax Incentives Available
- Tax credits (refundable and nonrefundable)
- Tax abatements on real estate
- Cash grants for purchasing equipment, making upgrades, or employee training
- Low-interest loans
Target industries to receive these grants include manufacturing, distribution, information technology, software development, and other various service industries.
Approval of the project is a requirement by the state of Ohio before the hiring process begins. Negotiations may also take place, and may differ project-to-project. The process from application to approval for some of these incentives can take 4-6 weeks, and sometimes longer, dependent upon the complexity and value of the incentive. This process can be tedious in nature. It is very important to contact a tax professional when considering new investment.
If you are considering a new or expanded venture in Ohio, and may be eligible to take advantage of state and local tax incentives, please reach out to your trusted advisor at Apple Growth Partners to learn more.