"The City of Columbus has helped our company immensely with job creation tax credits (which have allowed us to create more jobs), insight and feedback," says small business owner Tanisha Robinson. "I can't think of a better place for entrepreneurs than Columbus."
Are you considering launching a new business? Are you expanding or relocating an existing one? The City of Columbus has several programs consisting of a mix of federal, state and Franklin County tax incentives, and loans and grants, which can provide gap funding/assistance in realizing your dream.
Businesses in the Columbus metropolitan area benefit from:
- No personal property tax
- No inventory tax
- No state corporate income tax
Tax Incentive Programs
Several programs are available to assist new and existing businesses complete commercial, industrial, office and residential development projects. These incentives include:
- Job Creation Tax Credit – This refundable tax credit is given to companies that create at least 10 new jobs within 3 years. The credit is applied toward the company's commercial activity tax liability.
- Ohio Community Reinvestment Areas – This program provides qualifying companies with an exemption of up to 100% of improvement value for up to 15 years on property taxes. It's designed to offer real estate tax abatements on the increased value of real property improvements. Today, this program is used as an economic development tool to help businesses in expansion.
- Ohio Enterprise Zone Program – This program gives real property tax incentives for businesses that expand in or relocate to Ohio. The Enterprise Zone Program helps stimulate economic development and allows Columbus to offer competitive business recruitment packages to prospective businesses. Certain qualifying businesses might be eligible for additional benefits, too.
Columbus offers businesses a variety of loans that can assist area companies as they grow and create jobs in Ohio. Some loan programs include:
- Research and Development Investment Loan – This fund provides loan financing between $500,000 and $5 million to Ohio businesses for projects research and development activity projects.
- 166 Direct Loan – This loan provides money for land and building acquisition, construction, expansion, or renovation, and equipment purchases for eligible businesses.
Innovation Ohio Loan Fund – This fund was created to assist existing Columbus, OH, companies in developing next-generation services and products. It's good for acquisition, construction, and related capital costs of technology, facilities and equipment purchases.
The State of Ohio also offers Columbus businesses grants to promote economic development, business expansion and job creation. Some available grants include:
- JobsOhio Economic Development Grant – This grant provides funding for businesses that create new jobs.
- Roadwork Development – These funds are allocated for public roadway improvements, including engineering and design costs. Projects typically involve manufacturing, research and development, high technology, corporate headquarters and distribution activity. To qualify, the business must create or retain jobs.
Additional incentives might be available at the municipality or Franklin County level. These incentives include:
- Performance-based incentives or job-growth incentives
- Additional workforce training assistance
- Loan programs
The City of Columbus is committed to ensuring your success – the city cannot be successful without entrepreneurs like you. If you're looking for real estate to start your business in Columbus, the experts at DRK Realtors can help. Contact us today.