Taxes and Incentives
City of Troy, OH
Community Reinvestment Area
The Community Reinvestment Area Program is designed to encourage reinvestment in residential and commercial structures to preserve the value of buildings in Troy. Community Reinvestment Areas are areas of land in which property owners can receive tax incentives for investing in real property improvements. Troy contains two Community Reinvestment Areas (CRAs), which combine to cover the entirety of the City. Please contact the City of Troy Development Department at (937) 339-9601 for further information.
Ohio Enterprise Zone
The City of Troy has participated in the state of Ohio Enterprise Zone Program since 1987, offering companies a tax benefit when making substantial capital investments. With the change in Ohio tax law of 2005, previous tangible personal property and inventory taxes were replaced with the Commercial Activity Tax, thus reducing the tax benefit of the Enterprise Zone Program. However, manufacturing businesses making significant real property improvements may qualify to receive 100% tax abatement for up to 15 years depending upon job creation and new payroll figures. The Troy Enterprise Zone Program can also contribute towards leveraging additional incentives from the state such as tax credits, grants and low interest loans.
City of Troy Loan Programs
Qualified applicants must have a project in which investments are being made to either a business or a building. Since 1990, the Development Department has managed over seventy loans exceeding $10,000,000 in total loan funds. Loan amounts have ranged from $2,000 to $600,000 depending on the type of project and investment being made. Numerous Troy companies have benefited which include both small and big businesses ranging from the individual retail and service business to larger corporations in manufacturing. As the program operates on a "first come, first serve" basis, the available dollars for new loans will depend upon recent loan activity. Private financing is always encouraged and often times required when seeking a city loan.
Miami County, OH
PACE – Property Assessed Clean Energy
With PACE, the county creates an energy special improvement district for the purpose of developing and implementing plans for special energy improvement projects. Property owners within the district can opt in for a voluntary special assessment on their property tax bill, which is used to pay debt service on a bond or a loan. The owner agrees to the placement of an annual special assessment on the property which can last for as long as 30-years. Proceeds of the assessment can finance up to 100 percent of the cost of improvements.
Projects must demonstrate cost savings through reduced energy consumption or energy generation. End-of-life equipment replacement is a popular type of project financed. Property must be located within Miami County.
What are the Benefits of PACE? PACE promotes energy improvements in the commercial and industrial sector by:
- Allowing property investments with no net out-of-pocket capital expenses;
- Realizing immediate positive cash flow with well-developed projects;
- Allowing payments to be treated as pass-through operating expenses;
- Tying the loan to the property bill, a secure payment stream, rather than the borrower’s credit, which reduces the lenders risk and lowers the interest rate;
- Lowering operating costs while increasing property value; and
- Allowing long-term financing at attractive rates.
PACE financing in Ohio is available for:
- Energy efficiency improvements, which are technologies, products and activities that reduce or support the reduction of energy consumption, allow for the reduction in demand or support the production of clean, renewable energy and that are or will be permanently fixed to real property
- Solar photovoltaic improvements
- Solar thermal improvements
- Geothermal improvements
- Customer-generated energy projects that include wind, biomass or gasification facilities that are either:
- Designed to have a generating capacity of 250 kW or less; or
- Located on the project owner’s property, operated in parallel with electrical transmission and distribution facilities serving the property, not producing energy for direct sale to the public, and intended primarily to offer all or part of the electricity requirements of the facility-owner
State of Ohio
JobsOhio Loan and Grant Programs
JobsOhio Economic Development Grant
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.
JobsOhio Growth Fund
The JobsOhio Growth Fund provides capital for expansion projects to companies that have limited access to funding from conventional, private sources of financing. JobsOhio will consider loans to companies that are in the growth, established or expansion stage and that have generated revenue through a proven business plan.
Research and Development Center Grant
The JobsOhio Research and Development Center Grant facilitates the creation of corporate R&D centers in Ohio to support the development and commercialization of emerging technologies and products.
JobsOhio Revitalization Program
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.
JobsOhio Workforce Grant
The JobsOhio Workforce Grant promotes economic development, business expansion and job creation by providing funding to companies for employee development and training programs.
State Loan and Grant Programs
Research and Development Investment Loan Fund
The Research and Development Investment Loan Fund provides loan financing ranging from $500,000 to $5 million for projects primarily engaging in R&D activity. The loans have fixed rates (at or below market rates) and other loan terms similar to those of commercial bank financing. Companies receive a dollar-for-dollar, nonrefundable Ohio commercial activity tax credit for principal and interest payments made during the year up to $150,000 during the loan term.
166 Direct Loan
The 166 Direct Loan gives eligible businesses loans for land and building acquisition, construction, expansion or renovation, and equipment purchases. The program provides low-interest loans up to 40 percent of the cost not to exceed $1.5 million.
Ohio Enterprise Bond Fund
The Ohio Enterprise Bond Fund offers revenue bond financing through an S&P-rated fund, whereby proceeds from the sale of bonds are loaned to companies for fixed-rate, long-term capital asset financing. Rates are market-driven and fixed prior to funding. Loan terms range from seven to 10 years for equipment and 15 to 20 years for real estate. Up to $10 million in financing is available through the program.
Innovation Ohio Loan Fund
The Innovation Ohio Loan Fund provides loans for acquisition, construction and related capital costs of technology, facilities and equipment purchases. The fund was created to help Ohio companies develop next-generation products and services within the state's key industry sectors. Loans range from $500,000 to $1.5 million and can cover up to 75 percent of the project cost.
Roadwork Development (629) Funds
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.
State Tax Credits
Job Creation Tax Credit
The Job Creation Tax Credit is a refundable and performance-based tax credit calculated as a percent of created payroll and 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. 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; however, they must apply for the credit before committing to a project. The Ohio Tax Credit Authority must approve applicants before hiring begins.
DataCenter Tax Abatement
The Data Center Tax Abatement provides a sales-tax exemption rate and term that allow for partial or full sales tax exemption on the purchase of eligible data center equipment. Projects must meet minimum investment and payroll thresholds to be eligible. Final approval of the tax exemption is contingent upon the approval of the Ohio Tax Credit Authority.