Communities in Ohio may establish an Enterprise Zone that provides local officials with the ability to negotiate a tax incentive agreement with a prospective company. The Enterprise Zone Agreement is a contract between the community and the company. This contract must be executed prior to any portion of the project beginning. The rate and term of the tax exemption are negotiated between local officials and the company. The Enterprise Zone law permits municipalities to offer the following incentives:
- Exemption of real and/or personal property assessed values of up to 75% for up to 10 years or an average of 60% over the term of the agreement on new investments.
- The Enterprise Zone law permits unincorporated areas to offer exemption of real and/or personal property assessed values of up to 60% for up to 10 years or an average of 50% over the term of the agreement on new investments.
Maximum exemption levels may be exceeded with approval by the affected board of education.
COMMUNITY REINVESTMENT AREA (CRA)
Community Reinvestment Areas (CRA) are areas of land in which property owners can receive tax incentives for investing in real property improvements. The CRA Program is a direct incentive tax exemption program benefiting property owners who renovate existing or construct new buildings. The local legislative authority with jurisdiction over the designated area determines the size, the number, as well as the term and extent of the real property exemptions. Local municipalities or counties can determine the type of development to be supported by the CRA Program by specifying the eligibility of residential, commercial and/or industrial projects.