JOB CREATION TAX CREDITS APPROVED FOR BUSINESS EXPANSION PROJECTS TO CREATE 929 JOBS FOR OHIOANS

FOR IMMEDIATE RELEASE
March 28, 2005

Columbus, OH -- Governor Bob Taft today announced that the Ohio Tax Credit Authority has approved Job Creation Tax Credits for eight companies involved in business location or expansion projects that if located in Ohio, are expected to create 929 jobs and retain 3,458 positions.

The Authority awarded tax credits to:

Accubuilt, Inc., located in Lima (Allen County), has been awarded a 55 percent tax credit for a seven-year term to expand the company’s vehicle manufacturing operations. The value of the tax credit will be $317,581 over the term, and the company is required to maintain operations at the site for 14 years. The company, originally known as Superior Body Company, was founded in 1920. Accubuilt produces limousines, funeral coaches and other specialty vehicles. The company plans to construct a 45,000 square-foot facility, which will be used for vehicle and component manufacture and vehicle modification. Ohio was in competition with Tennessee for this more than $1.7 million project, which is expected to retain 230 positions and create 68 jobs within the first three years of operation.

Alien Technology Corp., to be located in Springboro (Montgomery County), has been awarded a 55 percent tax credit for a seven-year term to construct a research, development and training center. The value of the tax credit will be $644,519 over the term, and the company is required to maintain operations at the site for 14 years. The California-based company focuses on developing, manufacturing and marketing Radio Frequency Identification (RFID) technology products catering to the supply chain and logistics management industries. This $5.3 million project is expected to create 45 jobs within the first three years of operation. Other state assistance committed to this project includes a $50,000 Ohio Investment and Training Program grant and an Innovation Ohio Loan. The project is also benefiting from a $2.3 million Third Frontier grant awarded in 2004 to the Development Research Corporation of Kettering.

CMHC Systems, located in Dublin (Franklin County), has been awarded a 65 percent tax credit for a seven-year term to expand its software development and service operations. The value of the tax credit will be $449,320 over the term, and the company is required to maintain operations at the site for 14 years. CMHC provides software and services that enable more than 400 U.S. behavioral and public healthcare organizations across the country to maximize revenue, improve service levels and provide a high quality of care for some 12 million clients. The proposed project includes the development and sale of software for the behavioral healthcare marketplace, and business and implementation services. The State of Ohio incentives will assist the company in maintaining its IT development function in Ohio as opposed to outsourcing to England and India. This $1 million project is expected to retain 104 positions and create 30 jobs within the first three years of operation.

Carroll Sales Agency Inc. (dba Carroll Manufacturing and Sales), to be located in Avon (Lorain County), has been awarded a 55 percent tax credit for a five-year term to expand and relocate its manufacturing operations. The value of the tax credit will be $36,009 over the term, and the company is required to maintain operations at the site for 10 years. CMS is a manufacturer and distributor of food packaging and safe handling products for the food industry. The company supplies plastic rollstock films, cooking films, shrinkable vacuum packaging, netting, ingredients, and employee issue items to the food processing industry. CMS plans to construct a 70,000 square-foot manufacturing facility to house its operations. Ohio was in competition with Virginia and North Carolina for this more than $5 million project, which is expected to relocate 45 positions from the Westlake operation and create 25 jobs within the first three years of operation.

Cincinnati Financial Corporation and The Cincinnati Insurance Company, located in Fairfield (Butler County), has been awarded a 65 percent tax credit for a 10-year term to expand the company’s existing corporate campus. The value of the tax credit will be more than $3.9 million over the term, and the company is required to maintain operations at the site for 20 years. CFC has been conducting insurance operations in Ohio since 1950, offering a variety of insurance products in 31 states. The company plans to construct a 487,500 square-foot, seven-story office tower and a 700-vehicle, underground parking facility. Ohio was in competition with Kentucky for this more than $98.7 million project, which is expected to retain 2,702 positions and create 505 jobs within the first three years of operation.

Dynalab, Inc., located in Reynoldsburg (Franklin County), has been awarded a 55 percent tax credit for a five-year term, to expand its manufacturing facility. The value of the tax credit will be $105,145 over the term, and the company is required to maintain operations at the site for 10 years. Dynalab manufactures electronic components for the industrial, automotive, telecommunications, and medical industries. The company was recently awarded a contract to manufacture a printed circuit board-based electronic product that is currently being manufactured overseas. Ohio was in competition with North Carolina, Florida and Virginia for this $2.5 million project, which is expected to retain 109 positions and create 73 jobs within the first three years of operation.

Rite Track Equipment Services, Inc., located in West Chester Township (Butler County), has been awarded a 55 percent tax credit for a five-year term, to expand its manufacturing operation. The value of the tax credit will be $109,722 over the term, and the company is required to maintain operations at the site for 10 years. Rite Track supplies automated track systems for the semiconductor, thin film head, solar cell and MEMS industries. Rite Track also provides parts distribution, training and field services for the installation of track systems. The company plans to construct a 28,000 square-foot building and acquire new machinery and equipment. Ohio was in competition with Kentucky for this $2 million project, which is expected to retain 65 positions and create 30 jobs within the first three years of operation. Other state assistance committed to this project includes a $24,000 Ohio Investment and Training Program grant.

Sun Chemical Corporation, located in Cincinnati (Hamilton County), has been awarded an 80 percent tax credit for a five-year term, to expand and consolidate its headquarters and production operations. The value of the tax credit will be $1,030,835 over the term, and the company is required to maintain operations at the site for 10 years. Sun Chemical is the world’s largest producer of printing inks and pigments, and provides materials to packaging, publication, coatings, plastics, cosmetics and other industrial markets. The company has more than 300 facilities worldwide and employees more than 12,500 people. The company plans to consolidate its administrative and shared services operations, which are currently located within the company’s North American locations. Ohio was in competition with the company’s other U.S. facilities for this more than $6.4 million project, which is expected to retain 203 positions and create 153 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.