Relocation Assistance

The following are among the services the Rossford Economic Growth Corporation (REGC) can provide:

• Industrial and distribution facilities and site selection
• Tax incentive structuring
• Links to lending packages and a wide array of loan programs
• Private and public utility packaging
• Workforce and training information and resources
• Transportation resources
• Market information
• Manufacturing technology support and linkages
• International (export and import) assistance

The REGC is able to offer an extensive selection of sites.

The REGC works collaboratively with area agencies, officials, and organizations in our region.

Development Assistance

Businesses in the Northwest Ohio area may take advantage of numerous programs providing financial assistance, tax incentives, technology assistance and job training. These programs have been designed to meet the specific needs of business. 

Ohio Enterprise Zone Program

• Enterprise Zone Program provides local governments the ability to grant real and/or personal property tax exemptions for new industrial and commercial investment within the designated county or municipal enterprise zone.

• Ohio has made changes to its Ohio Franchise Tax, including:
• Reduced net worth tax rate from 5.82 to 4 mils.
• Capped a corporation’s net worth liability at $150,000
• Reduced the net income tax rate from 8.9% to 8.5%
• Adjusted the apportionment formula by increasing the sales factor to 60%, applicable to both the income and net worth tax.
• Withholding or franchise income tax on flow-through entities.
• Changes apply to tax years 1999 and thereafter, (i.e., affect corporate accounting periods ending in 1998.

• A comprehensive workers compensation reform bill has been enacted which makes substantive changes in coverage provisions and procedures. 
• The new law also includes anti-fraud provisions.

Property Tax Abatement

Two property tax abatement incentive programs are available for new and existing manufacturers expanding or relocating and creating new jobs in the Northwest Ohio area. Property tax abatement may only be granted on new investments. Real property or tangible personal property presently on the tax duplicate does not qualify for abatement.

The first tax abatement incentive is the Enterprise Zone program. The purpose of a Zone is to create new, or retain existing, employment opportunities by stimulating private investment in facilities and machinery and equipment in designated areas. As an incentive to undertake a project within the designated area, a business may gain substantial tax savings that could effectively reduce its cost of doing business.

Businesses locating or expanding in an Enterprise Zone may receive for an exemption of approximately 50 percent of the property taxes on the increased value of buildings, equipment, machinery and inventory for a maximum of 10 years. Tax exemptions are based upon local policy.

The second program is the Community Reinvestment Area (CRA). Real property tax exemptions are available to encourage the construction and renovation of industrial structures in some parts of the Toledo area designated as CRAs. Newly constructed industrial facilities may be exempt for a maximum period of 15 years.

Job Creation Tax Credit

The Job Creation Tax Credit, instituted by the State of Ohio in 1993, can provide tax credits or rebates to businesses that create new full-time jobs. In essence, the program minimizes the expenditures necessary to achieve relocation or expansion goals.

Under this provision, a company may seek a state franchise tax credit or rebate equivalent to a percentage of the personal income tax liability of 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 ten years.

In order to be eligible for the Job Creation Tax Credit, a project must create at least 25 full-time jobs within three years and have an average hourly wage rate of at least 150 percent of Ohio's minimum wage.

Machinery and Equipment Tax Credit

Companies can also benefit from the Manufacturing Machinery and Equipment Investment Tax Credit (ITC). This is a tax credit of 7.5% for all Ohio sites or 13.5% for qualified sites. The credit is based on the cost of purchasing new machinery and equipment and is available for any manufacturing machinery purchased before December 31, 1998. This is a direct credit against the company's corporate income tax. This credit is spread over seven years and can be carried forward for three years.

Ohio's Research and Development Sales Tax Credit

The R&D tax incentive provides a financial reward for companies that begin or expand their R&D efforts.

In Ohio, a 5% sales tax is assessed retail sales, rental of tangible personal property and selected services, plus up to a 1.5% county sales tax. With the R&D tax credit, the entire sate and county sales tax is exempt for purchases of machinery and equipment primarily used for research and development.

If a company has R&D equipment that is capitalized. Expensed items aren't eligible., meaning supplies, though used in a R&D activity would be taxable.

Export Sales

The State of Ohio offers a non-refundable franchise tax credit or personal income tax credit for business taxpayers who increase their foreign export sales if they also increase either Ohio payroll or Ohio capital expenditures.

The Economic Development Incentive Rates

Toledo Edison's Economic Development Incentive Rate is designed to encourage growth, modernization, and business retention in Northwest Ohio. This rate feature is available to industrial and commercial customers served under Large Power Rate PV-44, Large General Service Rate GS-12, and Small General Service Rate GS-16 with more than 100KW of demand.

The following incentive rates are available:

• 25% reduction of the incremental non-fuel charges if a company expands existing facilities.
• 25% reduction in the incremental non-fuel charges associated with retention of planned out-of-state transfer of existing business.
• 25% reduction in the total non-fuel charges if you expand operations as part of a relation within the Toledo Edison service area.
• 25% reduction in the total non-fuel charges if you are a new customer locating within the Toledo Edison service area.

The Northwest Ohio Training Consortium

The Consortium is a coalition of four community and technical colleges, two universities, a medical college, the National Center of Tooling and Precision Components, Edison Industrial Systems Center and the Toledo Area Private Industry Council. The consortium has been formed to provide the best possible training for employers at the lowest cost. Consortium members will work together to take advantage of the strengths of each institution in preparing a training program designed for specific employers needs.

The University of Toledo, Bowling Green State University, the Medical College of Ohio, Northwest Community College, Terra Community College and Owens Community College also have programs to assist area businesses with the development and implementation of new technologies.

Technology Centers

Edison Industrial Systems Center (EISC)EISC, the region's leading technology center, uses both on-site capabilities and affiliations with other resource providers such as:

• Applied coatings technology
• Advanced imaging systems
• Materials joining technology
• Food manufacturing technology
• Polymers and plastics technologies
• Federal laboratory access
• Materials properties technology
• Machining and metal forming

Lake Erie Manufacturing Extension Partnership

Lake Erie Manufacturing Extension Partnership, a division of the Edison Industrial Systems Center, is part of a grassroots network of manufacturing extension centers and was established in Northwest Ohio to help manufacturers improve quality, productivity and profitability. This network is affiliated with the National Institute of Standards and Technology (NIST) - Manufacturing Extension Partnership. The Lake Erie MEP has six outreach offices located throughout the region to better serve its manufacturing customers.

National Center for Tooling and Precision Components

The National Center for Tooling and Precision Components, established in Toledo in 1991, provides training, education and technology transfer for the tooling industry.

Additional Technology Transfer Programs

The University of Toledo also has established a Polymer Institute, a Thin-Film Research Institute and the Eitel Institute for Waffer Technology and Silicate Research to assist area companies in contract research and development work.

Bowling Green State University established the Center for Photochemical Sciences and the Center for Microscopy and Microanalysis which serve the needs of industrial and academic users in the surrounding area.

Northwest Ohio Industry Leaders