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Ohio Job Creation Tax Credit (JCTC)

Contact Information

John Werkman
Deputy Chief, Strategic Business Investments
Columbus, Ohio 43215-6130
(614) 466-6791
John.Werkman@development.ohio.gov

Overview

This site provides information for businesses that have previously been approved for a tax credit by the Ohio Tax Credit Authority (Authority) regarding the agreement process, the amendment process, and  annual reporting requirements.

Agreements

Projects approved by the Authority are required to enter into a tax credit agreement summarizing the commitments and compliance requirements pursuant to the Ohio Revised Code and Ohio Administrative Code. Agreements typically include the following key items:

  • The awarded percentage/term of the tax credit and the tax credit start date;
  • A requirement that the taxpayer maintains operations at the project site for the term plus 3 years;
  • The pay increase factor;
  • A requirement that the taxpayer submits an annual report with employment, payroll, withholdings, and investment information; and
  • A requirement that the Director of the Ohio Development Services Agency (ODSA) review the annual report and issue a certificate if the project is in compliance.

Taxpayers must review and sign the tax credit agreement within 60 days of receipt.
Taxpayers applying for tax credit assistance must pay a one-time servicing fee of $400 multiplied by the awarded term of the tax credit for each grantee that is a party to the agreement. It is important to note that because this is a per grantee fee, any grantee added to the tax credit agreement must pay the associated servicing fee for the term of the agreement as well.

Agreement Amendments

Any taxpayer wishing to request changes to an approved tax credit project must submit a completed Incentive Modification Request Form found in the dropdown menu on the left. This form must be completed regardless of the nature of the change requested. There is a $300 amendment fee associated with the process.

Any amendment request must be presented to and approved by the Authority.

Annual Report

The tax credit program requires taxpayers to annually submit to ODSA a report detailing information pertaining to the taxpayer's project. Complete annual reports must be submitted by March 1 each year. ODSA requires annual progress reports to be filed for the year in which the tax credit begins and consecutive years throughout the term of the tax credit.

The annual progress report is filed online using the link in the dropdown menu on the left. Information requested in the annual progress report includes the number of full-time equivalent employees for the project; total payroll for the project; Ohio employee payroll for the project; income tax revenue for the project; the amount of relocated payroll for the project during the tax year; and other information ODSA deems appropriate Taxpayers who fail to submit a complete annual report by the deadline shall be assessed a $500 late fee for each ensuing calendar month until the report is filed and may be subject to other remedies. Upon verification of information submitted in the annual progress report, a tax credit certificate is issued to the taxpayer.