Unlocking Ohio’s Business Incentives: What You Need to Know for Site Selection

Business is booming in Ohio, and for good reason. With access to a talented workforce, affordable energy, foreign investment, competitive wage rates, and key supply chain proximity, there’s a lot to love about the state.

Because Ohio is one of the nation’s premier hubs for electric vehicle and EV battery production, with abundant natural gas stores, big business is flocking to the region.

The Importance of Funding Opportunities During Site Selection

Thanks to numerous Ohio business incentives at both the state and local level, many site selectors are choosing the Buckeye State for their next move or expansion.

Developing a site for business investment is no small task. It requires hours of strategy, pages of infrastructure improvement plans, and copious amounts of financial resources. Securing funding through incentive programs is often the deciding factor for business owners that are taking a financial leap.

As a JobsOhio regional network partner, OhioSE routinely connects business leaders with state and local grants, tax incentives, and the other resources that will help them succeed.

State Loan and Grant Programs Spotlight

Site selectors should be aware of the following four loans that represent just a few of the Ohio business incentives available to them.

• The Research and Development Investment Loan (R&D Loan) provides low-interest loans and a tax credit to qualifying Ohio businesses. Targeted industries include Advanced Manufacturing, Aerospace & Aviation, Automotive, Healthcare, Financial Services, Food Processing, Information Technology, Logistics & Distribution, and Shale Energy & Petrochemicals.

• The Innovation Ohio Loan Fund provides qualifying businesses with loans for acquisition, construction, and related capital costs of tech, facilities, and equipment. This loan is awarded to existing Ohio companies who are developing next-generation products and services within certain industries.
• The Ohio Enterprise Bond Fund promotes economic development, business expansion, and job creation. The OEBF Loan provides capital to developed companies with limited access to funding at costs comparable to those of rated multinational corporations. For a project to be eligible it should be related to industry, commerce, manufacturing, distribution, or research activities in targeted industries.
• The 166 Direct Loan program provides funding for expansion projects to companies with limited access to capital from private sources. Allowable project costs and uses may include purchasing land or existing buildings, purchasing machinery and equipment, new construction or renovation, long-term leasehold improvements, and capitalized costs directly related to a fixed-asset purchase.

Attainable through JobsOhio, the following programs are a sampling of Ohio grants that site selectors also have available.

• The JobsOhio Economic Development Grant exists to promote economic development, business expansion and job creation by providing funding for eligible projects in the state of Ohio.

• The JobsOhio Revitalization Program focuses on helping rejuvenate sites in preparation for end-users that support job creation opportunities for Ohioans. The program, which includes both loans and grants, is available to public and private entities seeking to clean up and redevelop sites across Ohio.

• Roadwork Development (629) Funds are available for public roadway improvements, including engineering and design costs. Funds are accessible for projects that create or retain jobs and primarily involve manufacturing, technology, research and development, corporate headquarters and distribution activity. Grants are provided to a local jurisdiction and require local participation. They can be used to reimburse accumulated costs.

• JobsOhio Workforce Grant promotes economic development, business expansion and job creation by providing funding to companies for employee development and training programs.

• JobsOhio’s Talent Acquisition Services (TAS) program helps identify a company’s talent challenges and builds sustainable talent strategies that support every stage of the candidate journey. Guided by years of experience, JobsOhio’s team of experts partners with your company to navigate Ohio’s workforce ecosystem and deliver customized talent solutions that lead to long-term success.

• The JobsOhio Relocation Incentive helps Ohio employers of any size in ten critical sectors expand their workforce, specifically in STEM and technical occupations, with direct financial incentives for attracting out-of-state professionals.

Embrace Ohio’s State Tax Incentives

In addition to loan and grant programs, there are several state tax-related Ohio business incentives that site selectors should consider when making their next investment.

The Job Creation Tax Credit is a refundable and performance-based tax credit applied toward a company’s commercial activity tax liability. Companies creating at least 10 jobs within three years, with a minimum annual payroll of $660,000, and that pay at least 150 percent of the federal minimum wage are eligible for the credit.

Are you a site selector looking to make your next move? Consider Ohio’s business incentives as you search for the perfect location.

Reach out to OhioSE for more information on loan, grant, and tax opportunities in our state.

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