You are on page 1of 4


Ted Strickland, Governor Lisa Patt-McDaniel, Director

Lee Fisher, Lt. Governor

Resources for Investing in Ohio’s Future

Tax Credit Incentives Loans and Bond Programs
The Job Creation Tax Credit is a refundable tax credit to companies creating The Research and Development Investment Loan Fund provides loan
at least 10 new jobs (within three years) with a minimum annual payroll of financing of between $1 million and $5 million for projects primarily
$660,000 that pay at least 175 percent of the federal minimum wage. The engaging in research and development activity. Rates are fixed (at or
tax credit is measured as a percentage of the state income tax withholdings below market rates) with terms similar to those of commercial bank
for all new employees hired under the program, and is applied toward the financing. Companies receive a dollar-for-dollar, non-refundable Ohio
company’s commercial activity tax liability. Should the amount of the credit commercial activity tax credit for all principal and interest payments
exceed the company’s commercial activity tax liability for any given year, during the year.
the difference is refunded. Approved projects generally range between a 25
and 55 percent credit for a period of five to seven years. A business must The Ohio Enterprise Bond Fund provides revenue bond financing through
apply for the credit before committing to the project. an S&P rated fund (currently AA-, “double A-minus”), whereby proceeds
from the sale of bonds is loaned to companies for fixed-rate, long-term
The Job Retention Tax Credit is a non-refundable tax credit to companies capital asset financing. Rates are fixed prior to funding, depending on the
retaining at least 500 full-time jobs in Ohio. Companies must also commit type of bond issued, with terms between seven to 10 years for equipment
to a fixed-asset investment of $50 million for most projects. The credit is and 15 to 20 years for real estate. Up to $10 million in financing is
measured as a percentage of the state income tax withholdings for all available through the Program.
employees retained under the program. The tax credit rates for approved
projects can be up to 75 percent for 15 years. A business must apply for The 166 Direct Loan provides loans for land and building acquisition,
the credit before committing to the project. construction, expansion, or renovation, and equipment purchases for
eligible businesses. The Program provides low-interest loans up to
The Research and Development Investment Tax Credit provides a $1 million.
non-refundable tax credit up to 7 percent for qualified research and
development expenses. Qualifying expenses fit into two categories: in- The Regional 166 Direct Loan provides loans for land and building
house research expenses and contracted research expenses. Any unused acquisition, construction, expansion, or renovation, and equipment
portion of a tax credit may be carried forward for up to seven years. purchases for eligible businesses. Twelve local economic development
agencies administer the program. It provides low-interest loans up to
The Ohio Enterprise Zones program provides real and personal property $350,000.
tax incentives for businesses that expand or relocate in Ohio. To establish
an Enterprise Zone, a municipality or county must apply to the Director Volume Cap provides a federal tax benefit by allowing eligible issuers to
of Development for certification. To secure benefits, non-retail businesses issue tax exempt Private Activity Bonds up to a state limit known as the
must apply to the local community for local property tax exemptions and “Volume Cap.” The State of Ohio’s allocation of Volume Cap is determined
to the Director of Development for state income tax incentives. annually by the Internal Revenue Service on a per capita basis for
projects consisting of multi-family housing, single-family housing,
Community Reinvestment Areas provide companies locating in a exempt facilities, manufacturing, and student loan bonds.
designated Community Reinvestment Area an abatement of up to 100
percent for 15 years on real property taxes. To be eligible, a company The Innovation Ohio Loan Fund provides loans for acquisition,
must be making new real property investment and formalizing an construction, and related costs of technology, facilities, and equipment
agreement with the local community prior to going forward with the purchase. The fund was created to assist existing Ohio companies in
qualifying project. developing next-generation products and services within Targeted
Industry Sectors.
The Technology Investment Tax Credit Program provides a tax credit to
Ohio taxpayers that invest in qualified small, Ohio-based technology The Rural Industrial Park Loan program provides direct loans to rural,
companies. The tax credit is 25 percent of the amount invested by the distressed local communities, and applicants committed to creating well-
taxpayer. Investments totaling $26.3 million have been incentivized with planned industrial parks.
technology investment tax credits since the inception of this program
in 1996. The Urban Redevelopment Loan provides low-interest loans to
municipalities or designated nonprofit economic development
The Ohio Historic Preservation Tax Credit Program provides a tax credit organizations to acquire real estate for assembly into developable parcels
for the rehabilitation expenses to owners of historically significant and remediate any brownfield contamination site to entice private
buildings. The tax credit subsidy is 25 percent of qualified rehabilitation business investment in distressed urban locations.
expenditures, not to exceed $5 million. Qualified rehabilitation
expenditures are hard construction costs that meet the requirements of The Ohio Capital Access Program encourages lending to businesses
the U.S. Secretary of Interior’s Standards for Rehabilitation of Historic creating or retaining jobs by establishing a unique credit enhancement
properties. The tax credit can be applied to an applicable dealer in reserve account at a Capital Access Program lending institution. The
tangible, corporate franchise, or state income taxes. state, the lender, and the business each make a small contribution to the
account. The reserve account is available to the lender for recovery of
The Ohio New Markets Program will help finance business or real estate losses associated with any loan the lender has enrolled in the program.
investments in low-income communities by providing investors with
state tax credits in exchange for delivering below market rate investment The Ohio Minority Business Direct Loan Program provides fixed, low-
options to Ohio businesses and spark revitalization in Ohio’s low-income interest rate loans to certified minority-owned businesses that are
communities. purchasing or improving fixed assets and creating or retaining jobs.

The Motion Picture Tax Credit provides a refundable credit against the The Brownfield Revolving Loan Fund, capitalized by a grant from the
corporation franchise or income tax for motion pictures produced in U.S. Environmental Protection Agency, offers below market rate loans
Ohio. The tax credit is equal to 25 percent of non-wage and nonresident to assist with the remediation of a brownfield property to return the
wage Ohio production expenditures and 35 percent of Ohio resident property to a productive economic use in the community. 
wage production expenditures.

The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services Revised: 02/02//10
Grant Programs Additional Economic
The Ohio Advanced Energy Fund, administered by the Ohio Energy Development Incentives
Office, connects companies and communities with financial and
technical resources to deploy energy efficiency and renewable energy The Minority Business Bonding Program provides bid, performance, and
technologies, and to support advanced energy economic development. payment surety bonds to state certified minority-owned businesses that
are unable to obtain bonding through standard surety companies.
The Ohio Energy Office administers the State Energy Plan and conducts
special projects to promote awareness, develop capacity, deploy projects, The Ohio Third Frontier is a $1.6 billion initiative to expand Ohio’s high-tech
and provide technical assistance, training, and outreach for renewable research capabilities and promote innovation and company formation,
energy technologies, alternative fuels infrastructure, energy efficient which in turn will create high-paying jobs for generations to come.
buildings, fuel cells, and industrial process efficiency. • Entrepreneurial Signature Program
The Ohio Job Ready Sites Program bolsters our state’s inventory • Wright Centers of Innovation
of available facility locations served by utility and transportation • Pre-seed and Seed Fund Initiatives
infrastructure. Sites improved under the program are kept ready for • Research and Commercialization Programs
future business prospects seeking locations for new or expanded • Wright Projects
operations. The State of Ohio has awarded $108.5 million in the first
• Ohio Research Scholars
two funding rounds during Fiscal Year 2009. The grants may be used
to offset costs traditionally incurred in industrial and commercial site • Advanced Energy and Fuel Cell Programs
development, from acquisition of real property to utility upgrades to • Ohio Research Commercialization Grant Programs
construction build-out of speculative facilities. • Innovation Ohio Loan Fund
• Targeted Industry Attraction Program
Rapid Outreach funds can be used for the acquisition of machinery and
equipment, new building construction, building acquisition, on- or off- • Internship Programs
site infrastructure improvements and other fixed asset investments, Ohio’s Thomas Edison Program fosters the advancement of applied
manufacturing, research and development, high technology, corporate research and development with the long-term objective of increasing
headquarters, and distribution. Given the demand for limited grant funds, the competitiveness of existing companies within Ohio’s key industry
qualified projects must involve substantial job creation or retention. sectors. The Edison Technology Centers provide a variety of product and
Roadwork Development (629) funds are available for public roadway process innovation and commercialization services that result in new
improvements, including engineering and design costs. Funds are product designs, enhanced productivity, and cost reduction measures
available for projects primarily involving manufacturing, research and for established and early-stage businesses. Ohio is home to research
development, high technology, corporate headquarters, and distribution laboratories that find new, innovative ways for businesses to thrive.
activity. Projects must typically create or retain jobs. Grants are usually Edison Technology Centers
provided to the local jurisdiction and require local participation.
– BioOhio
The Alternative Fuel Transportation Grant improves air quality through – EISC/CIFT
grants to businesses, nonprofit organizations, school systems, or – EMTEC, the Edison Materials Technology Center
local governments for the purchase and installation of alternative fuel – EWI, the Edison Welding Institute
refueling, blending, or distribution facilities and terminals. Current
– MAGNET, the Manufacturing Advocacy & Growth Network
incentives are focused on retail fuel distributors and school systems.
– PolymerOhio
The Industrial Site Improvement Fund assists geographically and/or – TechSolve
economically disadvantaged counties around Ohio in the expansion and
modernization of buildings, remediation of environmentally contaminated The Edison Technology Incubator Program significantly increases Ohio’s
property, and completion of other infrastructure improvements at sites technology-based entrepreneurial commercialization outcomes by
used primarily for commercial or industrial activities. providing business assistance and access to capital to accelerate the
growth of early-stage Ohio technology companies. Our Edison partners,
The Community Services Block Grant Program provides funds to 52 community
strategically located to serve every region of our state, deliver world-
action agencies throughout Ohio to reduce the causes and conditions of
class assistance to Ohio’s emerging growth companies.
poverty by supporting job training, economic development, transportation,
housing, emergency food, shelter, and health care service programs. Edison Technology Incubators

The Community Development Block Grant Economic Development – Akron Global Business Accelerator
Program gives grants of federal funds to units of local government for – BioEnterprise
economic development projects that create and/or retain permanent, – BIOSTART
private-sector job opportunities. Applications are accepted on an open- – Braintree Center for Business Innovation
window basis and are evaluated in part on the basis of community distress, – The Entrepreneurs Center
unemployment rate, and low- and moderate-income population. Other
– Great Lakes Innovation and Development Enterprise
considerations include program effectiveness, job quality, and leveraging
ratio of Program funds and overall community impact. The grants provide – Hamilton County Business Center
financial assistance through local governments to private entities (via loans) – The Innovation Center at Ohio University
for economic development projects; and for public improvements directly – Jumpstart, Inc.
related to business retention, expansion, or creation. Loan repayments – MAGNET Incubator
from private entities are retained at the local level to capitalize Revolving
– Launch
Loan Funds for additional business assistance activities.
– TechColumbus
The Community Investment Funds consist of state planning grants and – Youngstown Business Incubator
contingency grants for communities that demonstrate an opportunity
to develop assets or create jobs. Eligible applicants, including units of The Ohio Capital Fund is designed to increase the availability of venture
local government, nonprofit organizations, community improvement capital for Ohio technology companies. The Fund invests in private
corporations, port authorities, and community action corporations, can venture capital funds which, in turn, look to invest in Ohio-based
apply for up to $10,000 in funds. Community Investment grants require seed or early-stage technology companies. The Fund’s activities are
a 50 percent cash match by the grantee, and all funds are provided on a governed by an Investment Policy overseen by the Ohio Venture Capital
reimbursement basis only. Funds can be used to purchase sustainable Authority. Through December 31, 2008, the Fund had made investment
assets that can be utilized for at least five years. commitments totaling $98.5 million in 18 venture capital funds that have
in turn, invested in 30 Ohio companies.

The Ohio Workforce Guarantee supports companies that are making The Home Weatherization Assistance Program provides funds to
investments in facilities, equipment, and training that result in the community-based, nonprofit organizations and local governments
retention and creation of jobs for Ohioans. The Program is one of the few throughout Ohio to help low-income households save energy, while
in Ohio that provides direct financial support to employers for training, increasing safety and comfort within their homes. The services provided
paying for a portion of instructor salaries, materials, travel, and special may include a safety inspection and tune-up of the household’s heating
needs. Ohio Workforce Guarantee Regional Coordinators are located unit; reduction of major air leakages; insulation of hot water heaters,
at the Department’s Regional Economic Development Offices located heating ducts, attics, walls, and floors; and client education.
around the state and are ready to provide free assistance in preparing an
application.  The Electric Partnership Program provides funds to selected electric
service providers to perform in-home audits and install appropriate
The Ohio Third Frontier Internship Program was established in 2002 to electric base load and thermal energy efficiency measures in high-cost
link Ohio students with rewarding internship opportunities that provide and high-volume electric use structures occupied by Percentage of
hands-on experience within Ohio’s private sector business community. Income Payment Plan Program eligible households.
The goal is to build a talented workforce for the future and assist students
in gaining valuable work experiences that can lead to permanent, full- The Housing Opportunities for Persons with AIDS Program provides
time employment in Ohio after graduation. funds to eligible nonprofit organizations or local governments, on a
competitive basis, to meet the housing and supportive service needs of
The Program will reimburse up to 50 percent of an intern’s wage, or persons suffering from AIDS or HIV-related diseases.
no more than $3,000, for a 12-month period. Following an intern’s
graduation, a firm will have the opportunity to offer full-time employment The Appalachian Regional Commission provides a funding allocation
to an individual who is well prepared for a future career with an that is to be dedicated to alternative and advanced energy development,
organization. The Ohio Third Frontier Internship Program is available telecommunications, entrepreneurship, and asset-based development.
to businesses that can provide one or more of the following types of Projects that fall under any of these four categories are eligible for
internships: funding under the Regional Initiative Program.
– Advanced manufacturing The Distressed County status qualification is based on low per capita
– Advanced materials income, high rates of poverty, and unemployment. In the past, the
– Bioscience distressed county program focused mainly on providing public facilities,
– Information technology clean drinking water, sanitary waste disposal, and human resource
projects such as literacy training. In 2000, the Commission created a
– Instruments, controls, and electronics capacity-building effort and a telecommunications/information technology
– Power and propulsion initiative. Only applicants in distressed counties are eligible for these
projects with funding requests up to 80 percent of the project cost.
The purpose of the Appalachian Training Investment Partnership
Program is to assist smaller companies (less than 500 employees) in The Appalachian Regional Commission’s Federal Access Road Program
defraying some of the costs associated with employee training. The better links the region’s businesses, communities, and residents to the
state’s General Revenue Fund matches $250,000 per fiscal year with the Appalachian Development Highway System and to other key parts of the
federal Appalachia Regional Commission’s $250,000 funding to assist region’s transportation network. The program offers a flexible approach
companies located in any of Ohio’s 32 appalachian counties. Because the designed to meet local needs and provides financing mechanisms to
Appalachian Training Investment Partnership can be designated as pilot/ support a variety of economic development opportunities throughout
demonstration projects, pre- and post-assessments, pre-employment the region.
activities, curriculum development, and consortia-based training projects
can be considered for funding. The Rapid Response Fund consists of state dollars set aside by the
Governor’s Office of Appalachia Director to be made available for is an employer-driven job matching system that projects that have an immediate need or have a significant job creation
combines job listings from major job boards, newspapers, associations, component. This fund permits the Director to respond quickly to projects
and company Web sites to create a comprehensive listing of jobs that will have a significant impact in a short period of time. Eligible
throughout Ohio. Job seekers can browse though nearly 100,000 applicants are community improvement corporations, port authorities,
employment opportunities by job title, keyword, pay range, and units of local government, and nonprofit organizations. Rapid Response
location – all for free. Employers who register through the Ohio Business grants follow the same guidelines as Appalachia Regional Commission
Gateway can also browse through thousands of resumes for free. Ohio is area development, and job creation is strongly emphasized when
the first state in the nation to offer free access to a publicly funded online committing Rapid Response funds.
recruitment system.
The Clean Ohio Revitalization Fund is a key financial component to
The Home Energy Assistance Program helps households with incomes helping a community build economic capacity by providing funding
at or below 175 percent of the federal poverty guidelines to heat and for brownfield redevelopment. Brownfield redevelopment allows a
cool their residences. The Regular Heating Assistance Program, which community to reclaim and improve its lands, making property viable for
operates November through May, pays a portion of household winter new development.
heating bills. The Winter Crisis Assistance Program, which operates
November through March, provides a one-time payment to restore or The Neighborhood Stabilization Program provides funds to communities
retain residential heating services. The Summer Crisis Program, which and regions across the state to improve neighborhoods by purchasing
operates in July and August, provides a one-time payment of up to $100 and redeveloping abandoned and foreclosed properties, establishing
and/or an air conditioner or fan to low-income households with a 60-year- land banks and demolishing blighted structures. The Affordable Rental
old member or older; or documentation from a physician indicating that Housing Initiative, also funded with NSP dollars, provides funds to
cooling is needed for a household member. nonprofit organizations and public housing authorities to redevelop
demolished or vacant structures into affordable rental housing serving
The Percentage of Income Payment Plan program requires regulated low-income households throughout Ohio.
electric companies to accept payments based on a percentage of a
household’s income. To be eligible to participate in the Program, the The Homelessness Prevention and Rapid Re-Housing Program provides
company providing the household’s primary heating source must be funds to nonprofit organizations and public housing authorities to
regulated by the Public Utilities Commission of Ohio; the household’s prevent individuals and families from becoming homeless and help
income must be at or below 150 percent of the federal poverty level; and those who are experiencing homelessness to be quickly re-housed
the household must apply for energy assistance programs, if eligible. and stabilized. In addition, the Family Homelessness Prevention Pilot
Program, also funded with Home Prevention and Rapid Re-Housing
Program dollars, provides funds to five nonprofit organizations to identify
and provide services to families most at risk of homelessness in six
counties (Fayette/Pickaway, Franklin, Lucas, Hamilton and Montgomery).

Ohio Department of Development Contact Information

Strengthen our Strengths Cultivate Top Talent

Strategic Business Investment Division Workforce and Talent Division

614 | 466 4551 614 | 466 4155
Office of Business Development
614 | 466 4551
Invest in our Regional Assets
Office of Financial Incentives/Loan Servicing
614 | 466 5420
Community Development Division
614 | 466 5863
Office of Tax Incentives
614 | 466 2317
Office of Community Services
614 | 466 6207
Ohio Energy Office
614 | 466 6797 Office of Housing and Community Partnerships 614 | 466 2285
Minority Business Enterprise Division
614 | 466 5700 Governor’s Office of Appalachia 614 | 644 9228
Office of Management and Technical Services
614 | 466 5700 Urban Development Division
Office of Minority Financial Incentives 614 | 995 2292
614 | 466 5700

Ohio Procurement Technical Assistance Program

614 | 466 5700

Technology and Innovation Division

614 | 466 3887

Ohio Third Frontier