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| Within the tax incentive programs offered by Delaware County, included are tax abatements, tax credits and tax finance. |
| Enterprise Zones |
| Enterprise Zones
are defined areas within the county that allow for tax abatements
on industrial projects conducted within the zone. Real property
abatements can be made for improvements on the real property as
a result of the project. Personal property abatements can be taken
on machinery, equipment, furniture, fixtures and inventory that
is new or first-used in the State of Ohio. A three-member negotiation
team reviews the project and negotiates a package specific to each
project.
Delaware County has three active zones, the City of Delaware Enterprise Zone, the Orange Township Enterprise Zone and the Village of Sunbury Enterprise Zone. The City of Delaware’s zone is located in the southern part of the city, and includes the Delaware Industrial Park, Johnson Industrial Park and the Crown Industrial Park. Orange Township’s zone begins at the southern border of the county at Lazelle Road, and runs north along US Rt. 23 to Shanahan Road. The eastern border being the rail line and the western border being approximately one-quarter mile from Rt. 23. Sunbury’s zone is the entire municipality. Tax abatement levels are allowed up to the following levels: 75% abated for 10 years for zones in municipalities and 60% abated for 10 years in unincorporated areas. This program also has a requirement of job creation associated with the project.
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| Community Reinvestment Areas |
| Community Reinvestment
Areas (CRAs) are designated zones in which tax abatements are allowable
on real property improvements made as a result of an expansion or
relocation project. These agreements are available for expanding
or relocating industrial businesses. Job creation is an additional
requirement for participation in the Community Reinvestment Area
program.
Only one CRA exists in Delaware County. It is located in the City of Delaware, and has the same boundaries as the Delaware Enterprise Zone. The available abatement rate can extend up to 100% on the real property improvements for a term of up to 15 years. The abatement rate and term is a unique negotiation for each project, considering such factors as job creation numbers and real and personal property investment levels. Delaware County Incentive Area Maps: |
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| Tax Increment Financing |
| Tax Increment Financing
(TIF) is a program to finance public infrastructure by redirecting
new real personal property tax to a debt retirement fund. A portion
of the real property tax on improvements to a site, up to 75% for
10 years, can be paid into a special fund, and that fund can be
used to retire the debt on a public infrastructure improvement tied
to the project. The value of the property tax exempted will be paid
as a Service Payment-in-Lieu of Taxes (equal to the amount of exempted
value), due at the same time property taxes are due, and will go
into a special fund. This special fund, set up by the County Auditor,
will be used to retire the debt incurred from the public infrastructure
improvements associated with the project.
A county negotiating committee will meet with the potential business and discuss it the TIF program can be utilized with the proposed project. If so, the negotiating committee will work with the business to reach an agreed exemption level. The Delaware County Economic Development Office will work with both the business and negotiating committee to facilitate the process. |
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| Ohio Job Creation Tax Credit |
| The Ohio Department
of Development administers this program in conjunction with local
incentive program participation. This program allows a business
to receive a tax credit or even a refund against its corporate franchise
tax based upon the number of new jobs created with the project.
The requirements of the program are that at least 25 new, full-time jobs must be created within three years of the beginning of the project, and that the new employees must be paid a minimum of 150% of the federal minimum wage. The Job Creation Tax Credit is a direct credit against a business’ corporate franchise tax. The basis of the credit lies in the state income tax withholding per new employee. The tax credit will be figured from the state income tax withheld for the new employees. A percentage of the withheld tax will be credited against the business’ corporate franchise tax each year for the term of the agreement. This percentage rate can be up to 75% with a rate of up to ten years. The Delaware County Economic Development Office will work with businesses interested in this program and put them in contact with the Ohio Department of Development’s representative. |
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