Job Creation Tax Incentive

The Ohio Job Creation Tax Credit (JCTC) is a refundable, performance-based tax credit calculated as a percentage of the new state income tax withholding generated by new, full-time jobs. Administered by the Ohio Tax Credit Authority, the JCTC is a powerful tool to offset a company's financial liability when expanding or relocating to Ohio.

Key details of the JCTC:

• Financial Benefit: The credit is applied toward the company’s Commercial Activity Tax (CAT) or other state tax liabilities. Crucially, if the credit exceeds the liability, the difference is refunded to the company.
• Eligibility: Companies generally must create a minimum number of new, full-time jobs (as few as 10 in some cases, with a significant payroll commitment) and commit to retaining them for the duration of the agreement.
• Value and Term: Credits are negotiated on a case-by-case basis, generally ranging from 50% to 75% of the new payroll's withholding, available for a term typically between 5 and 15 years.
• Performance-Based: Businesses must meet their hiring and payroll commitments annually; the credit is only awarded after the commitments have been verified.

Businesses must apply for the JCTC and secure approval before making the final commitment to the project.

Link: https://development.ohio.gov/business/state-incentives/ohio-job-creation-tax-credit