Tax Exempt Incentive Programs
Tax Exempt Incentive Programs available to eligible companies expanding within or locating to Lockland:
Enterprise Zone Program
The Hamilton County Commissioners, with the approval of Lockland Village Council, may grant tax incentives to non-retail enterprises that agree to establish, expand, renovate, or occupy a facility within Lockland’s enterprise zone and hire new employees, or preserve employment for existing employees. The program exempts a percentage of the real and/or tangible personal property tax increases resulting from a development project. Investments that may be eligible include improvements to real property (buildings) and/or tangible personal property (machinery, equipment, furniture, fixtures or inventory). The amount of the tax exemption is negotiated on an individual basis and varies according to the size of the investment and the number of jobs created or retained. Additional incentives are available for substantial environmental remediation. An agreement must be in place before a project commences.
A second tier of incentives is available to manufacturers who are in compliance with an existing enterprise zone agreement and can document hiring 25% of their new employees from five defined categories. Upon application, the state may certify a business as eligible for this franchise tax credit for up to four consecutive years. Benefits include exemption of enterprise zone project assets from the company’s asset-or income-based calculation; reduction of the payroll numerator for wages paid to the 25% “disadvantaged” new hirees; and credits for daycare or training associated with these new hirees.
Equipment Sales Tax Exemption Programs
Research and Development Sales Tax Exemption:
State and county sales tax is exempt on purchases of machinery and equipment used primarily for research and development. The exemption covers equipment used to design, create, or formulate new or enhanced products, equipment, or manufacturing processes; or for scientific or technical inquiry and experimentation in the physical sciences. The exemption is claimed at the time of purchase.
Warehouse Machinery & Equipment Sales Tax Exemption:
Companies are exempt from state and county sales tax for equipment used in storing, transporting, mailing or handling inventory distributed to retail stores outside Ohio that are owned by the business or its affiliated groups, or for inventory distributed by direct marketing.