Press Room >> 2009 Press Releases

For immediate release:
Monday, May 4, 2009 

 Development Department releases incentive study
Analysis gives recommendations for enhanced efficiency, effectiveness 

COLUMBUS – Ohio Department of Development Interim Director Mark Barbash today announced the release of the Ohio Economic Development Incentive Study, an in-depth evaluation of the Department’s business incentives. The study includes analysis of economic development tools that are available to companies looking to expand in or locate to Ohio and recommendations on how to make Ohio even more business-friendly. 

“With a global economy that is more competitive every day, Ohio needs to ensure our business attraction and retention tools are responsive, effective, and easy for companies to navigate,” Barbash said. “Many of the study’s recommendations go hand-in-hand with our Department’s strategic vision to grow jobs as well as Governor Ted Strickland’s current budget plan to improve and accelerate Ohio’s economic incentives.” 

A task force of experts from the economic development community and local governments was created to advise the Department of Development on Ohio’s tax credits, loans, grants, and workforce training programs at the local, regional, and state levels.  The task force provided extensive feedback for each incentive, and Development also spoke with a wide variety of stakeholder groups including school associations, counties, townships, and municipal governments. 

The Department is using the study’s results to gain insight and perspective on what incentives are most helpful and responsive to companies and what incentives can be enhanced. 

“We know that many of our existing Ohio companies are challenged more than ever now because of our country’s current recession,” Barbash said. “We are committed and focused on finding ways to assist our businesses, and are using these recommendations as a launching point to pursue changes that benefit and assist our state’s existing companies.” 

The study’s recommendations include ways to make the state’s programs for loans, Job Creation and Job Retention Tax Credits, Workforce Development, and local tax abatement and increment financing less complex and faster to implement.  

Some of the main recommendations include: 

• Simplifying the annual reporting requirements for the Job Creation Tax Credit and broadening the eligibility requirements of companies for the Job Retention Tax Credits. These tax credits attract new business investment and help retain important jobs throughout Ohio.
   
• Extending eligibility for loans to include any minority-owned company certified by a federal or Ohio public agency, thus eliminating the need for multiple certifications.  
   
• Streamlining the roles of offices administering incentives or coordinating with other agencies to better serve Ohio companies. 
   
• Creating a special bipartisan working group to develop a detailed proposal for reforming tax incentives.  Created after the enactment of the 2010-2011 Biennial Budget, the group will research and develop ways to rework and combine Ohio’s existing incentives to be more responsive to business and community needs.  

To read the entire Ohio Economic Development Incentive Study please visit the Ohio Department of Development’s Web site at www.development.ohio.gov 

Working with our partners across business, state and local governments, academia, and the non-profit sector, the Ohio Department of Development works to attract, create, grow, and retain businesses through competitive incentives and targeted investments.  Engaged every day in marketing, innovating, investing, and collaborating, the Ohio Department of Development works at the speed of business to accelerate and support the teamwork that is absolutely necessary for success by providing financial, informational, and technical assistance to those making an investment in Ohio’s future. 

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Media contacts: Kelly Schlissberg at 614.466.4133
or the Communications and Marketing Office at 614.466.2609