JOB CREATION TAX CREDITS APPROVED FOR BUSINESS EXPANSION PROJECTS TO CREATE 916 JOBS FOR OHIOANS

FOR IMMEDIATE RELEASE
January 31, 2005

Columbus, OH -- Governor Bob Taft today announced that the Ohio Tax Credit Authority has approved Job Creation Tax Credits for 14 companies involved in business location or expansion projects that if located in Ohio, are expected to create 916 jobs and retain 1,393 positions.

The Authority awarded tax credits to:

Spectral Systems, Inc., to be located in Beavercreek (Greene County), has been awarded a 65 percent tax credit for a five-year term to relocate and expand its research and system development operations. The value of the tax credit will be more than $1.2 million over the term, and the company is required to maintain operations at the site for 10 years. Spectral provides system solutions for variety of applications for customers that include government and defense-related agencies and companies. The proposed project includes the relocation of the company’s current operations in the City of Riverside to leased space in Beavercreek, with investment made for site improvements and the purchase of testing machinery and equipment. Ohio is in competition with related company sites including Nevada for this $2.2 million project, which is expected to retain 96 positions and create 100 jobs within the first three years of operation.

Pecksink LLC, located in Coshocton (Coshocton County), has been awarded a 50 percent tax credit for a five-year term to establish a portable sink manufacturing operation. The value of the tax credit will be $45,829 over the term, and the company is required to maintain operations at the site for 10 years. Pecksink plans to manufacture, sell and distribute a portable sink designed for use by the disabled and those being cared for by home caregivers and hospices. The company plans to renovate space in an existing building, which will be utilized for manufacturing and product design and purchase machinery and equipment. Ohio was in competition with Virginia and Kentucky for this $950,000 project, which is expected to create 35 jobs within the first three years of operation. Other state assistance committed to this project includes: a $485,000 Pioneer Rural Loan; and a $10,000 Ohio Investment in Training Program grant.

Crikey’s Genuine Australian Pies, located in Toledo (Lucas County), has been awarded a 50 percent tax credit for a five-year term to expand its production operation. The value of the tax credit will be $64,161 over the term, and the company would be required to maintain operations at the site for 10 years. Crikey’s Genuine Australian Pies is a family-owned frozen food manufacturer with genuine Australian pies as its primary product. The company produces, distributes and packages the meat pies, which are sold to various grocery chains and hot food truck vendors. Crikey’s plans to purchase a 3,117 square-foot facility and purchase machinery and equipment. The $680,000 project is expected to retain six positions and create 49 jobs within the first three years of operation.

The Boeing Company, with an operation located in Heath (Licking County), has been awarded a 50 percent Job Creation Tax Credit for a five-year term to expand its Guidance Repair Center. The value of the tax credit will be $210,245 over the term, and the company would be required to maintain operations at the site for 10 years. Boeing is a leading global provider of commercial aviation and military aerospace systems. A key component of the company’s success in domestic and foreign military sales is the company’s Guidance Repair Center facility in Heath, where it manufactures, repairs, and tests sophisticated calibration instruments used in long-range missile technologies. Boeing is facing the possible sale of a building in near Dallas, Texas which houses production and testing operations for antennae systems for the AWACS surveillance plane and is considering relocating this work to another company operation. If located in Heath, the $2.1 million project would retain 568 positions and create 35 high-paying jobs within the first three years of operation. Other state assistance committed for this project includes a $40,000 Ohio Investment in Training Program grant and a $1.5 million Research and Development loan to the Heath-Newark-Licking County Port Authority.

Harrison Ethanol LLC, to be located in Cadiz (Harrison County), has been awarded a 50 percent tax credit for a seven-year term to begin operations. The value of the tax credit will be $479,203 over the term, and the company is required to maintain operations at the site for 14 years. Harrison Ethanol plans to construct a 1.8 million square-foot biorefinery that will utilize components of corn to produce ethanol, a clean burning, and low-emission, high-octane fuel additive for motor vehicles. The company also plans to sell the byproducts of the ethanol process, which includes carbon dioxide and bio-diesel fuel components (corn oil and ethanol) that will be captured, liquefied or solidified. Methane gas produced at the site’s anaerobic digester is a byproduct of the animal husbandry division, and will be captured and used to produce renewable electrical energy and heat. The more than $68 million project is expected to create 107 jobs within the first three years of operation. Other state assistance committed for this project includes: a $600,000 Pioneer Rural Loan; and a $400,000 Roadwork Development grant.

InfoCision Management Corp., to be located in Youngstown (Mahoning County), has been awarded a 55 percent tax credit for a seven-year term to begin operations. The value of the tax credit will be $363,613 over the term, and the company is required to maintain operations at the site for 14 years. InfoCision operates 22 call centers at 11 locations in three states and provides a variety of inbound and outbound communication services. Ohio was in competition with West Virginia and Pennsylvania for this more than $1 million project, which is expected to create 250 jobs within the first three years of operation. Other state assistance committed for this project includes a $48,000 Ohio Investment in Training Program grant.

Alttran, Inc., to be located in Hudson (Summit County), has been awarded a 55 percent tax credit for a five-year term to begin operations. The value of the tax credit will be $51,524 over the term, and the company is required to maintain operations at the site for 10 years. Alttran is a newly organized business, established to perform research and development and technical services to the polymer industry, serving a variety of markets. The company proposes to lease an existing building and purchase machinery and equipment. Ohio is in competition with North Carolina for this $500,000 project, which is expected to create 30 jobs within the first three years of operation.

Advanced Energy Technology, Inc. (AET), located in Lakewood (Cuyahoga County), has been awarded a 55 percent tax credit for a seven-year term to expand its manufacturing operation. The value of the tax credit will be $353,564 over the term, and the company would be required to maintain operations at the site for 14 years. AET develops and manufactures flexible graphite and advanced flexible graphite materials that are used primarily as a gasket and sealing material in automotive and internal combustion engines as well as a wide range of industrial fluid sealing applications. Advanced flexible graphite has applications in the fuel cell power generation market, in electronic thermal management applications, fire retardant products for building and construction, and industrial thermal management products for high temperature process applications. For this expansion project, AET plans to renovate portions of its current location and purchase new machinery and equipment. Ohio was in competition with Tennessee and West Virginia for this $14.8 million project, which is expected to retain 114 positions and create 35 jobs within the first three years of operation.

Graco Children’s Products, Inc., located in Macedonia (Summit County), has been awarded a 55 percent tax credit for a seven-year term to expand its manufacturing and distribution operations. The value of the tax credit will be $168,722 over the term, and the company would be required to maintain operations at the site for 14 years. Graco is the leading juvenile products company in the world. The proposed project includes the expansion of the company’s current manufacturing and distribution facility and the purchase of machinery and equipment. Ohio is in competition with other Graco facilities for this $9.8 million project, which if located in Macedonia, is expected to retain 448 positions and create 35 jobs within the first three years of operation.

Stoneworks, Ltd./Union Lake, Inc., located in Bedford Heights (Cuyahoga County), has been awarded a 55 percent Job Creation Tax Credit for a seven-year term to expand operations. The value of the tax credit will be $257,743 over the term, and the company would be required to maintain operations at the site for 14 years. Stoneworks, formerly Geauga Marble & Tile, is a state-of-the-art in-house fabrication facility, which in response to a growing national market for concrete counter tops, has added a concrete division. The company creates one-of-a-kind concrete countertops, vanities and fireplace surrounds, and offers a unique collection of specialty tile. To accommodate increased demand for its products, Stoneworks is considering expanding its existing facility and purchasing new machinery and equipment. Ohio is in competition with Virginia for this more than $1.2 million project, which is expected to retain 43 positions and create 49 jobs within the first three years of operation. Other state assistance committed for this project includes a $40,000 Ohio Investment in Training Program grant.

GHP Operating Co. LLC, located in Westerville (Franklin County), has been awarded a 55 percent tax credit for an eight-year term to expand its headquarters operation. The value of the tax credit will be $490,467 over the term, and the company is required to maintain operations at the site for 16 years. GHP is the parent company of several operating companies engaged in the business of manufacturing, marketing, packaging, and distribution of household products. The company proposes to lease additional office space and purchase new equipment. Ohio is in competition with Pennsylvania and Texas for this $250,000 project, which is expected to retain 29 positions and create 25 jobs within the first three years of operation.

ms consultants, inc., located in Columbus (Franklin County), has been awarded a 60 percent tax credit for a five-year term to expand operations. The value of the tax credit will be $461,041 over the term, and the company is required to maintain operations at the site for 10 years. ms consultants provides expertise in engineering, planning and architectural services, and through the use of technology, the company has the ability to locate technical drafting and engineering functions anywhere with computer access. ms consultants proposes to expand it existing facility with new construction and the purchase of machinery and equipment. Ohio is in competition with Indiana, West Virginia, Pennsylvania and North Carolina for this more than $2.4 million project, which is expected to retain 89 positions and create 69 jobs within the first three years of operation.

Schoolhouse Outfitters, LLC, to be located in Norwood (Hamilton County), has been awarded a 60 percent tax credit for a five-year term to expand and relocate its furniture and equipment warehouse and distribution operations from northern Kentucky. The value of the tax credit will be $147,981 over the term, and the company is required to maintain operations at the site for 10 years. Established in 1998, Schoolhouse Outfitters originally sold furniture to schools, but has expanded to include churches, businesses, universities, federal and local governments and the military. Ohio was in competition with Kentucky for this $129,000 project, which is expected to create 39 jobs within the first three years of operation.

Android Industries - Springfield, located in Springfield (Clark County), has been awarded a 60 percent tax credit for a five-year term to begin operations. The value of the tax credit will be $178,809 over the term, and the company is required to maintain operations at the site for 10 years. Android Industries assembles frames, modules and components for the automotive and trucking industries for clients that include DCX, GM, Ford, and Toyota. Android is a newly formed Ohio limited liability company created to supply components to International Truck and Engine (IT&E). The company proposes to lease an existing building where it will provide third party manufacturing for IT&E, specifically the assembly of frames and modules for IT&E’s Low Floor Kneeling Bus and Smart Truck Commercial Variant vehicles. Ohio is in competition with Michigan for this more than $3.7 million project, which is expected to create 58 jobs within the first three years of operation.

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. Some of the additional state assistance is contingent upon the approval of the State Controlling Board.