Business Incentives

Program Overview

The City of Wickliffe and the Lake County Port Authority act as local coordinator of all public incentives available to businesses locating in the City of Wickliffe. We will analyze a proposed project and determine its eligibility as it pertains to the numerous programs available. Our goal is to streamline the development process and insure the best results possible for business and industry, facilitating new job creation and economic growth.

Program coordinators:

Martin Germ
Director of Finance
City of Wickliffe
28730 Ridge Road
Wickliffe, OH 44092
440-943-7117

Mark Rantala
Executive Director
Lake County Ohio Port & Economic Development Authority
One Victoria Place, Suite 265A
Painesville, OH 44077
440-357-2290
www.lcport.org

Community Reinvestment Area (CRA)

Business/Project

The Community Reinvestment Area is a designated area in which property owners can receive property tax incentives for investing in real property improvements. The City of Wickliffe has designated CRA to encourage revitalization of the existing building stock and the development of new structures. Any property owner meeting the requirements set forth and our planning to undertake a Real Property improvement can apply to the City of Wickliffe and the Department of Economic Development for consideration.

Rate/Terms

The percentage of tax exemption on the increase in assessed valuation from improvements to commercial and industrial property and the term of those exemptions is negotiated on a case-by-case basis in advance of construction or remodeling occurring. The results of the negotiation will be set forth in writing in a City of Wickliffe CRA Agreement. Term and percentage of tax exemptions granted to qualified applicants will be negotiated based on the applicants conformity to the overall objectives and vision of the Strategic Redevelopment Plan adopted as a guideline by Wickliffe City Council.

Eligibility

All residential, commercial and industrial properties consistent with the applicable zoning regulations within the designated CRA are eligible for exemptions under this program. The CRA Program is a public/private partnership intended to promote and expand conforming uses in the designated area.

Incentives

Substantial real property tax exemption for a period of years.

Ohio Job Creation Tax Credit

Business/Project

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

Rate/Terms

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.

Eligibility

A five-member authority determines eligibility and terms. Businesses must agree to create at least 25 new, full-time jobs within 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.

Incentives

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

Warehouse Inventory Tax Exemption

Business/Project

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

Rate/Terms

This inventory tax exemption will be phased in by lowering the assessment rate from 25% to zero by 5 percentage points each year over a 5-year period beginning in tax year 1994. However, the reduction in assessment ratios will occur only when total statewide tax collections are exceeding predetermined growth rates or the rate of inflation. Hence, assuming tax collections are meeting growth rates, property eligible for exemption will be assessed at 20% in 1994 and be reduced to zero by 1998.

Eligibility

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.

Incentives

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

 

Wickliffe Linked Deposit Loan Program

Business/Project

The Wickliffe Linked Deposit Loan Program can provides low interest loan opportunities to businesses and property owners who are willing to make real property improvements. The City of Wickliffe, in partnership with local depositories, will buy down current commercial interest rates for qualified applicants, buy forgoing certain predetermined investment income.

Rate/Terms

Rates are determined by the participating depository and the City of Wickliffe. Market conditions set the amount (up to 3% by law) that municipalities can reduce interest rates. Loans are designed not to exceed five years.

Eligibility

Contact the Wickliffe Economic Development Office at 440-943-7171 for a list of participating banks.

Incentives

Lower than current market interest rates.

Ohio Export Tax Credit

Business/Project

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

Rate/Terms

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.

Eligibility

Generally, a business is able to claim a 10% credit of pre-tax profit from 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.

Incentives

Encourages and rewards the efforts of Ohio businesses who export their products or services into the international marketplace.

Warehouse Equipment Sales Tax Exemption

Business/Project

A sales tax exemption for equipment used in warehousing and distribution.

Eligibility

The exemption applies to equipment used primarily (at least 51%) in storing, transporting, mailing or handling inventory in a warehouse, distribution center, or similar facility. Further, the inventory handled by the facility must be primarily distributed outside of Ohio to retail stores owned by the business or affiliated group that owns the Ohio warehouse or distribution center. The inventory can also be distributed by means of direct marketing in order to qualify for the exemption.

Incentives

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

Ohio Enterprise Zone Program

Business/Project

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

Rate/Terms

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. The exemption level can be exceeded under special circumstances with school board approval.

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 available include health care subsidies and disadvantaged worker hiring credits.

Eligibility

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.

Incentives

Substantial real and personal property tax reductions. See ORC 5709.61-69.

Ohio Manufacturers Investment Credit

Business/Project

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.

Rate/Terms

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.

Eligibility

The credit is based on the amount of the investment in excess 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 four eligible investment periods: July 1 through December 31, 1995; Calendar year 1996; Calendar year 1997; and Calendar year 1998. All eligible equipment must be set in operation by December 31, 1999.

Incentives

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

Research and Development Sales Tax Exemption

Business/Project

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

Eligibility

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).

Incentives

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