Carol Knapp, Executive Director
180 Milan Avenue
Norwalk, OH 44857
State of Ohio Financing and Incentives
SITE DEVELOPMENT ASSISTANCE
Site Selection Assistance - Using OhioSites.com and a network of local economic development
organizations, assistance is available to help identify industrial site and building opportunities for new
business investment projects. Information on available properties is maintained by a partnership
between state and local economic developers, and is available 24-7 online at www.OhioSites.com.
Roadwork Development (629) Account - Available for public roadway improvements, including
engineering and design costs. This fund is available for projects primarily involving manufacturing,
research and Development, high technology, corporate headquarters, and distribution activity. Projects
must typically create or retain jobs. Grants are usually provided to the local jurisdiction and require
Ohio Water Development Authority: Local Economic Development Fund - Low-interest financing
is available to communities for public water and sanitary sewer improvements. Loans are made directly
to local communities on favorable interest rates and terms.
Community Development Block Grant - Federal grant funds are available through the state to assist
with public road, water, and sanitary sewer improvements specifically benefiting economic
development projects. Job creation must be involved, and companies must commit to hiring at least 51
percent of employees from low- to moderate-income populations in the county where the project is
LOW INTEREST LOANS & GRANTS
166 Direct Loan - Direct loan financing is available to help finance manufacturing and other eligible
facilities. Eligible uses for funding including: new building construction, building acquisition, and
acquisition of machinery and equipment. Amounts of financing are usually set at 30 percent of the
project cost to a maximum of $1 million, subject to an increase by the Director of Development, with a
minimum loan amount of $350,000. The rate is fixed (currently at 3 percent), with terms similar to
those of commercial bank financing. Eligible projects must involve significant job creation or retention.
Regional 166 Direct Loan - Provides loans for land and building acquisition, construction, expansion
or renovation, and equipment purchases for eligible businesses. Twelve local economic development
agencies administer the program. The Regional 166 Direct Loan program was created to promote
economic development, business expansion, and job creation by providing financial assistance for
eligible projects in the State of Ohio. It provides low-interest loans up to $350,000 to businesses willing
Innovation Ohio Loan Fund - Provides loans for acquisition, construction, and related costs of
technology, facilities and equipment purchase. The fund was created to assist existing Ohio
companies develop next-generation products and services within certain Targeted Industry Sectors.
The Innovation Ohio Loan Fund provides competitive financing terms on loans to finance projects that
will positively impact Ohio by creating high-value jobs, increasing tax revenues, and improving the
economic welfare of Ohio.
Ohio Enterprise Bond Fund - Revenue bond financing is available through this S&P AA- (double Aminus)
rated fund, whereby proceeds from the sale of bonds is loaned to companies for fixed rate,
long-term capital asset financing. Rates are fixed depend on the type of bond issued, while terms are
between 7 to 10 years for equipment and 15 to 20 years for real estate. Up to $10 million in financing
is available through this program.
Research and Development Investment Loan Fund - Direct loan financing of between $1 million and
$25 million is available for projects primarily engaging in research and development activity. Rates are
fixed (currently at 3 percent), with terms similar to those of commercial bank financing. Companies
receive a dollar-for-dollar, nonrefundable Ohio commercial activity tax credit for all principal and
interest payments during the year.
Rural Industrial Park Loan - Provides direct loans to rural, distressed local communities, and
applicants committed to creating well-planned industrial parks. The Rural Industrial Park Loan program
was created to provide direct loans to local communities and applicants committed to creating wellplanned
Rapid Outreach Grant - Funds are for on- or off- site infrastructure improvements, including water,
sewer, road, and rail improvements. Funds are often used for the acquisition of machinery and
equipment. These funds are given to companies primarily engaged in manufacturing, research and
development, high technology, corporate headquarters, and distribution. Given the demand for limited
grant funds, qualified projects must involve substantial job creation or retention, and all other public
and private sources of financing must be considered before the availability of Rapid Outreach funding
Volume Cap - Allows eligible issuers the ability to issue tax exempt Private Activity Bonds up to a state
limit known as “Volume Cap,” determined annually on a per capita basis for projects consisting of
multi-family housing, single-family housing, exempt facilities, manufacturing, and student loan bonds.
Community Services Block Grants - Granted to non-profit Community Action Agencies. The
agencies coordinate and link public and private resources, and focus these resources on specific
poverty issues at the community level. Funds are expended for a broad range of services, which
include: employment, education, income, management, housing, emergency services, nutrition, and
linkages (information and referral counseling, outreach, senior services, and family development).
Ohio Job Ready Sites Program - Created to bolster our state’s inventory of available facility locations
served by utility and transportation infrastructure. Sites improved under the program are ready for
future business prospects seeking locations for new or expanded operations. The State of Ohio will
sell $150 million in bonds during a seven-year period to fund the availability of Job Ready Sites
program grant awards. The grants may be used to offset costs traditionally incurred in industrial and
commercial site development, from acquisition of real property to utility upgrades to construction buildout
of speculative facilities.
ADVANCED ENERGY FINANCING
Ohio Advanced Energy Fund - Administered by the Ohio Energy Resources Division, connects
companies and communities with financial and technical resources to deploy energy efficiency and
renewable energy technologies, and to support advanced energy economic development.
Ohio Energy Gateway Fund - Provides investment for primarily existing companies to develop
projects that support advanced energy in Ohio, focusing on wind, solar, geothermal, propulsion and
aerospace. (To be announced 2010)
Alternative Fuel Transportation Grant Program - Improves air quality through grants to businesses,
nonprofit organizations, school systems, or local governments for the purchase and installation of
alternative fuel refueling, blending, or distribution facilities and terminals. Current incentives are
focused on retail fuel distributors and school systems.
State Energy Plan - Administered by the Ohio Energy Resources Division, conducts special projects to
promote awareness, develop capacity, deploy projects, and provide technical assistance, training, and
outreach for renewable energy technologies, alternative fuels infrastructure, energy efficient buildings,
fuel cells, and industrial process efficiency.
Advanced Energy Stimulus for Ohio and Conduit Financing - Administered by the Ohio Air Quality
Development Authority, the Bipartisan Job Stimulus Package created a $150 million advanced energy
jobs stimulus fund. The Ohio Air Quality Development Authority has the ability to issue conduit bonds
for projects that improve the air quality of the State of Ohio. Such projects include, but are not limited
to, air pollution control, air pollution prevention, energy efficiency, advanced energy technologies, and
the manufacturing of those technologies. The Ohio Air Quality Development Authority’s can convey
significant tax benefits to eligible projects.
WORKFORCE DEVELOPMENT TRAINING
Workforce Guarantee Program - Under the umbrella of the Ohio Workforce Guarantee, the Ohio
Department of Development Workforce and Talent Division provides a customized training grant
program aimed at creating and retaining jobs via the improvement of worker skills and abilities in
expanding industries and emerging technologies. The Ohio Workforce Grant accomplishes this goal by
providing technical and financial assistance directly to employers engaged in worker training.
While the Ohio Workforce Grant has been used in a wide variety of economic incentive packages
aimed at attracting and retaining Ohio jobs, the program’s focus is on targeted industries, and funding
training that results in transferable skills, as evidenced by portable credentials. Targeted industry
sectors include Logistics, Information Technology, Advanced Manufacturing, Bioscience, Advanced
Energy, Agriculture/Agribusiness, and Healthcare.
Job Creation Tax Credit - A refundable tax credit to companies creating at least 25 new full-time jobs
(within 3 years) in Ohio. The credit may also be available for certain high-wage industries creating 10
or more new full-time jobs within three years. The refundable tax credit is measured as a percentage of
the state income tax withholdings for all new employees hired under the program, and is applied
toward the company’s commercial activity tax liability. Should the amount of the credit exceed the
company’s Commercial Activity Tax liability for any given year, the difference is refunded. Approved
range between a 25 and 55 percent credit for a period of five to seven years. The business must apply
for the credit before committing to the project.
Job Retention Tax Credit - The Job Retention Tax Credit is a non-refundable tax credit to companies
retaining at least 1,000 full-time jobs in Ohio. Companies must also commit to new fixed-asset
investment of either $100 million, if the average wages of the retained jobs exceeds 400 percent of the
federal minimum wage (equal to $20.60 per hour), or $200 million, if the average wages of the retained
jobs does not exceed 400 percent of the federal minimum wage. The credit is measured as a
percentage of the state income tax withholdings for all employees retained under the program.
Approved projects generally range up to 75 percent for 10 years. The business must apply for the
credit before committing to the project.
Research and Development Investment Tax Credit - The Research and Development Investment
Tax Credit is a non-refundable Ohio commercial activity tax credit for all investment in qualified
research expenses incurred in Ohio. Qualified research expenses are based on Section 41 definitions
in the United States. Internal Revenue Code and include expenses for both in-house and contract
research expenses. The amount of the credit is based on 7 percent of the amount of all qualified
investment in a specific year. The credit can be carried forward for up to seven years