Ohio Enterprise Zone Program
The State of Ohio allows communities to provide tax abatement on real property and tangible personal property in designated areas called Enterprise Zones. Stark County has seven Enterprise Zones that cover 80 square miles. Businesses locating or expanding within these designated zones may qualify for substantial state and local tax breaks. The entire City of Canton is covered by an enterprise zone.
Job Creation Tax Credit
Eligible companies can receive a state tax credit or rebate equivalent to a percentage of the personal income tax generated by its new Ohio employees. In some cases, a company could receive a rebate exceeding the amount of taxes actually paid. The amount of the credit is determined by application to the State Tax Credit Authority and is based on the number of full-time jobs created and the amount of investment required. The tax credit may be granted for a maximum period of 10 years. To be eligible for the credit, a project must create at least 25 full-time jobs within three years with an average hourly minimum wage of at least 150 percent of Ohio’s minimum wage, which is $6.37/hr.
Community Reinvestment Area
This program allows the county to provide tax abatement on real property. Stark County and the City of Canton have several designated Community Reinvestment Areas.
Ohio Research and Development Sales Tax Credit
The R&D tax incentive provides a financial reward for companies that begin or expand their research and development efforts. With the R&D tax credit, the entire state and county sales tax is exempt for purchases of machinery and equipment primarily used for research and development.
The Ohio Investment In Training Program
The Ohio Investment in Training Program (OITP) provides financial assistance for customized training involving employees of new and expanding Ohio manufacturing businesses and will consider other industries creating a large number of new jobs. The OITP stresses training for newly created jobs, but recognizes the importance of retaining and upgrading skills of existing employees in an effort to retain Ohio jobs.
City of Canton Economic Growth Initiative
The City of Canton’s Economic Growth Initiative was established to promote and expand the economic growth and vitality of the City of Canton, which will be achieved by focusing on new growth through business retention and/or expansion efforts and new business recruitment to the city.
The Job Creation Incentive Program provides a yearly payment to an enterprise based on 50% of the firm’s employees’ income tax withholdings that are paid to the city. A business must relocate new jobs to Canton or create new jobs. The term of this incentive is up to five years.
The Net Profit Tax Incentive Program makes any business that relocates to the city eligible for a yearly payment equal to 50% of net profit taxes that are paid to Canton. The term of this incentive is up to five years.
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