Taxation Legal News

Job Creation and Retention Tax Credits Approved for Business Expansion

Columbus, OH -- Governor Bob Taft today announced that the Ohio Tax Credit Authority has approved Job Creation and Retention Tax Credits for 13 companies involved in business location or expansion projects that, if located in Ohio, are expected to create 1,519 jobs and retain 6,353 positions. Action Group, Inc., located in Blacklick (Franklin County), has been awarded a 40 percent tax credit for a five-year term to expand its steel and wood fabrication operations. The value of the tax credit is estimated at $32,492 over the term, and the company would be required to maintain operations at the project site for ten years. Kinetic Technologies (K-Tec), to be located in the city of Wickliffe (Lake County), has been awarded a 35 percent tax credit for a seven-year term to relocate its headquarters and manufacturing and research and development operations. The value of the tax credit is estimated at $78,049 over the term, and the company would be required to maintain operations at the project site for 14 years. Ada Technologies Inc. (ATI), located in Ada (Hardin County), has been awarded a 40 percent tax credit for seven-year term for the expansion of its existing facility. The value of the tax credit is estimated at $80,466 over the term, and the company would be required to maintain operations at the project site for 14 years.

Highway Composites LLC (HC) Monroeville Industrial Moldings Inc., located in Norwalk (Huron County), has been awarded a 45 percent tax credit for seven-year term to consolidate the operations of two subsidiary companies. The value of the tax credit is estimated at $130,267 over the term, and the company would be required to maintain operations at the project site for 14 years. E2E SerWiz Solutions Limited/A TATA Enterprise (SerWizSol), to be located in the Village of Reno (Washington County), has been awarded a 50 percent tax credit for a five-year term to establish a new incoming call center. The value of the tax credit is estimated at $284,000 over the term, and the company would be required to maintain operations at the project site for ten years. Summit Ethanol LLC, to be located in the Village of Leipsic (Putnam County), has been awarded a 50 percent tax credit for a seven-year term to establish a 60 million gallon ethanol production facility. The value of the tax credit is estimated at $135,174 over the term, and the company would be required to maintain operations at the project site for 14 years. Tigerpoly Manufacturing, Inc. (Tigerpoly), located in Grove City (Franklin County), has been awarded a 65 percent tax credit for a seven-year term to expand production at its manufacturing facility. The value of the tax credit is estimated at $220,726 over the term, and the company would be required to maintain operations at the project site for 14 years. Wrayco Industries, Inc. (Wrayco), located in Stow (Summit County) has been awarded a 50 percent tax credit for an eight-year term to expand its existing facility in order to accommodate increased business due to new sales contracts. The value of the tax credit is estimated at $442,509 over the term, and the company would be required to maintain operations at the project site for 16 years. Doubleday Acquisitions dba AcuTemp, located in Moraine (Montgomery County), has been awarded a 55 percent tax credit for an eight-year term to relocate and expand its headquarters, research and development (R&D) and manufacturing facility. The value of the tax credit is estimated at $255,890 over the term, and the company would be required to maintain operations at the project site for 16 years.

Gradall Industries, Inc. (Gradall), located in New Philadelphia (Tuscarawas County), has been awarded a 60 percent tax credit for a seven-year term to reorganize and expand its existing facility in order to increase productivity and accommodate new machinery and equipment for a new product line. The value of the tax credit is estimated at $387,513 over the term, and the company would be required to maintain operations at the project site for 14 years.General Motors Corporation (GM), located in Toledo (Lucas County), has been awarded a 65 percent Job Retention Tax credit for a seven-year term for the retention of at least 2,000 full-time positions resulting from the company's renovation and expansion of its Toledo facility. The value of the tax credit will be capped at $23 million over the term, and the company would be required to maintain operations at the project site for 14 years. Founded in 1908, GM is the world's largest automaker and currently employs about 327,000 people around the world. FDS Coke (FDS), to be located in Toledo (Lucas County), has been awarded a 65 percent tax credit for a ten-year term to establish a new facility. The value of the tax credit is estimated at $1,235,032 over the term, and the company would be required to maintain operations at the project site for 20 years. Whirlpool Corporation, located in Clyde (Sandusky County), has been awarded a 75 percent tax credit for a 15-year term to expand its home appliances facility. The value of the tax credit is estimated at $6,393,205 over the term, and the company would be required to maintain operations at the project site for 30 years.  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.

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	Did You Know?
	There are tax rules if change in accounting method is made Generally, the partnership must get IRS consent to change its method of accounting used to report income (for income as a whole or for any material item). To do so, it must file Form 3115, Application for Change in Accounting Method. See Form 3115 and Pub. 538, Accounting Periods and Methods.