OHIO TAX CREDIT AUTHORITY APPPROVES TAX CREDITS FOR BUSINESS EXPANSION PROJECTS TO CREATE 611 JOBS FOR OHIOANS

FOR IMMEDIATE RELEASE
March 29, 2004

Columbus, OH -- Governor Bob Taft today announced that the Ohio Tax Credit Authority has approved Job Creation Tax Credits for Ohio companies involved in business location or expansion projects. These projects are expected to create 611 jobs and retain 139 positions.

The Authority awarded tax credits to:

Jerico Compounding, located in Wayne Township (Wayne County), will receive a 50 percent tax credit for a five-year term to expand operations. The value of the tax credit will be $19,178 over the term and the company would be required to maintain operations at the site for 10 years. The company supplies resin products to the rotational molding industry, and is considering sites in either Ohio or Pennsylvania for this expansion project. The $639,000 project would create 25 jobs within the first three years of the project’s initial operation and retain one position.

Eighth Floor Promotions, located in Celina (Mercer County), will receive a 55 percent tax credit for a five-year term. The value of the tax credit will be $37,083 over the term and the company would be required to maintain operations at the site for 10 years. The company is a wholesale distributor of awards and business gifts to ad specialty distributors throughout the U.S. and Canada. To maximize efficiencies, Eighth Floor Promotions is exploring the possibility of consolidating its Ohio and Minnesota operations into a single facility. If the company chooses to expand the Celina operation, it would make leasehold improvements to its 70,000 square-foot building and purchase machinery and equipment. The $1 million project would create 30 jobs within the first three years of the project’s initial operation and retain 109 positions.

American Showa, Inc., located in Sunbury (Delaware County), has been awarded a 55 percent tax credit for a six-year term to expand operations. The value of the tax credit will be $109,909 over the term and the company would be required to maintain operations at the site for 12 years. The company is a leading producer of shock absorbers and power steering unit components for the automotive industry. American Showa is a joint venture between the Showa Corporation of Japan and American Honda Motor Company, Inc. and has been operating in Ohio for 15 years. The company plans to review all elements of this high-tech project before making a final decision on whether it is cost effective to locate an R&D operation in Ohio. The $5.2 million project would create 15 jobs within the first three years of operation and retain 15 positions.

Genmak Steel, LLC, located in Youngstown (Mahoning County), will receive a 55 percent tax credit for an eight-year term to expand operations. The value of the tax credit will be more than $112,323 over the term, and the company would be required to maintain operations in Ohio for 16 years. Genmak Steel is a steel-servicing firm with its primary business activity being the conversion of coiled steel into steel “blanks”. These blanks are then sold to a variety of industrial producers who use the product for computer storage cabinets, HVAC ductwork and lighting fixtures. Ohio was in competition with Pennsylvania for this $500,000 project, which is expected to create 41 jobs within the first three years of operation and retain 14 positions.

USEC Inc., located in Scioto Township (Pike County), will receive a 75 percent tax credit for a 15-year term to begin operations for its American Centrifuge commercial plant. The company's new plant is expected to be located in the Gas Centrifuge Enrichment Plant (GCEP) buildings at the former Portsmouth Gaseous Diffusion Plant (GDP) in Piketon. USEC is a global energy company and the world's leading supplier of enriched uranium fuel for commercial nuclear power plants. The proposed plant will use advanced centrifuge technology to enrich natural uranium. USEC plans to use approximately 900,000 square feet in the GCEP buildings to encompass new and existing operations. Ohio was in competition with Kentucky for this project, which is expected to cost up to $1.5 billion. The plant is expected to employ up to 500 people in Piketon. Also, plant construction is expected to employ hundreds of workers in this Appalachian Ohio community.

The Job Creation Tax Credit is a refundable tax credit against the business corporate franchise or income tax. The credit equals a percentage of new state income tax withheld on new full-time employees in Ohio. The Job Retention Tax Credit provides corporate franchise or state income tax credit for businesses that commit to retain a significant number of full-time jobs.