Lucrative project incentives are available to qualifying firms expanding or locating in metropolitan Youngstown-Warren, Ohio. The Regional Chamber will work with you to determine eligibility for, explain and secure the incentive programs highlighted below.

All information presented is intended to provide a general overview of incentive programs, as all programs are subject to change.  For actual project eligibility and specifics, contact the Youngstown/Warren Regional Chamber.   

Enterprise Zones (EZ):  Companies that locate in Youngstown-Warren EZ areas could be eligible for tax abatements on investments in real property (i.e. building construction/expansion/renovation) and/or taxed tangible personal property. The maximum allowable tax abatement is either 60 percent or 75 percent depending on location (to exceed 60%/75% requires school board approval). The maximum abatement term is 10 years, beyond 10 years up to 15 years requires school board approval.

Map of area Enterprise Zones         Real Property Tax Credit/Abatement Calculator

Community Reinvestment Area (CRA):   Designated Youngstown-Warren, Ohio, CRAs provide real-property tax exemptions for companies constructing or renovating a facility. Up to 100 percent of the value of building improvements/construction may be exempt from real property taxes for a maximum 15 years.

Map of area CRA designations       Real Property Tax Credit/Abatement Calculator

Foreign Trade Zone (FTZ) 181 : FTZ 181 has been established at various locations within the metropolitan Youngstown-Warren area. Locating in FTZ 181 can delay, reduce or eliminate customs duties levied on raw materials, parts, components or finished products imported from other countries.

Ohio Job Creation Tax Credit (JCTC) : A refundable corporate franchise/Commercial Activity Tax credit, the JCTC is based on the percentage of state income tax paid by new employees. The maximum rate and term of the credit is 75% for 10 years. The JCTC requires that a business create at least 25 new full-time positions. The average wage of all new employees must be at least 150 percent of the federal minimum wage. A company that creates as few as 10 new full time jobs would be eligible if the average wage for all new positions is at least 400 percent of the federal minimum wage.     Job Creation Tax Credit Calculator

Ohio Research & Development Tax Credit : This non-refundable corporate franchise/commercial activity tax credit is for increased expenses of qualified companies undertaking research and development activities in Ohio. The amount of credit is based on 7 percent of the qualified research expenses and subject to additional conditions. The R&D tax credit is claimed equally for 4 years and unused portions can be carried forward years. 

Warehouse Machinery & Equipment Sales Tax Exemption : This credit provides an exemption from state and county sales tax for companies that purchase eligible warehousing equipment. This includes machinery and equipment used primarily (51 percent) in storing, transporting, mailing or handling inventory in a warehouse or distribution center, if the inventory is primarily distributed outside Ohio.

Manufacturing Machinery & Equipment Sales Tax Exemption : Machinery, equipment, supplies and fuel purchased and used primarily in a manufacturing operation to produce tangible personal property for sales are exempt from state and county sales tax.

Research and Development Sales Tax Exemption : Provides an exemption from state and county sales tax for companies that purchase equipment for research and development activities.

Project Loans

State and federal programs provide loans for the acquisition of land, structures, new construction, facility renovation/expansion and the purchase of machinery and equipment. Interest rates are typically below bank levels and the programs allow greater debt leverage/less cash equity. Most programs require bank and owner equity participation and specify minimum public funds/jobs ratios. Other requirements may include payment of Prevailing Wage Rates for construction and/or equipment installation.

GrowNOW Small Business Linked Deposit Program : This interest rate reduction program is designed to help small businesses grown by providing them with critical cash flow. When a business is approved for a loan from an eligible bank, GrowNOW provides an additional 3% discount on the loan’s already-negotiated interest rate, when the loan is linked to creating or saving jobs in Ohio. 

Direct (166) Loan Program : This state sponsored program provides loans for land and building acquisition, expansion and renovation and the purchase of machinery and equipment. The borrower must create one job for every $15,000 received, $35,000 in Priority Investment Areas, e.g. the cities of Youngstown, Campbell, Struthers and Warren. The minimum loan amount is $350,000. 

166 Regional Loan Program : This program provides loans for land and building acquisition, expansion and renovation and the purchase of machinery and equipment. The borrower must create one job for every $35,000 received. The maximum loan amount is $350,000, or in some cases, up to $500,000. 

Tax-Exempt Industrial Revenue Bonds (IRB) : Small issue industrial revenue bonds can be used for manufacturing purposes. Funding is available for land and building acquisition, construction, expansion or renovation, and equipment purchase. The bonds are issued by public entities on behalf of private, for-profit companies. Interest earned by the bond buyers is exempt from federal (and some state) income tax. 

SBA 504 Direct Loan Program : This federal program provides fixed rate, second mortgage financing for real estate (land, building, construction/renovation) and machinery and equipment. The borrower must create one new job within 3-years for every $35,000 received. The maximum loan is typically $1 million. Real estate loans are 20-year and machinery/equipment loans are 10-year. Bank participation and cash equity from the owner are required. 

Revolving Loan Funds (RLF): Counties, cities and some villages and townships have local revolving loan funds. While rates and terms vary, these programs typically provide fixed rate, subordinated loans for real property, machinery and equipment, and furniture, fixturesand equipment. Most require the borrower to create one new job for every $10,000 to $15,000 of funding.

USDA Business and Industry Loan Guarantees :  The USDA can guarantee quality loans involving manufacturing, wholesale, retail and services as long as the project involves creation or saving of jobs.  The purpose need not be agriculturally related.  Eligibility is based on the location of the project.

Other Incentives

Ohio Workforce Guarantee Program (OWG):  This training grant can reimburse a company for up to one-half the cost of engaging a trainer to train workers (maximum $20/hour), plus associated costs.

Ohio One Stop Workforce Centers – One-Stop Centers offer assessment services including identifying and screening employees; on and off-site training programs; and administers grants for incumbent workers, targeted industries and on-the-job training.

Public Infrastructure Support :  For projects requiring improvements to public roads and/or water/sewer lines, partial or full funding through various grant programs may be available. The amount is typically based on the jobs created by a project. On-site improvements can be funded if they designated to be public infrastructure. Private infrastructure improvements can be funded through previously noted loan programs.

Sales Tax Exemption on Building Materials combined with On/Off Balance Sheet Leasing: Working with an Ohio port authority exempts projects from Ohio sales tax on building materials. The port authority owns and leases the facility to the company on a fully net basis - as either a capital lease or an off-balance sheet transaction - based on the company's underlying financial strength. The company is responsible for facility design/construction and operations/maintenance. Other financing and tax incentives can flow-through the port authority to benefit the company, and the company can still utilize a private sector real estate developer/owner/lessor if it so chooses.

NOTE:  Each incentive underlined above refers to an incentive fact sheet that is located in the online library.