Enterprise Zone Tax Abatement
Provides a ten-year real and personal tax exemption to businesses making capital investment within the Enterprise Zone. These businesses are required to create or retain employment. The net tax abatement to the business is 55% (or 65% in the project location is in a sub-zone) with a payback to the school district.
Community Reinvestment Area (CRA)
Promotes new construction and/or rehabilitation of existing commercial and industrial structures by providing real property tax exemption on new real capital investment. All abatements shall be for 100% of the value of the new improvements as certified for eligibility by the City’s housing officer. However, multi-family and commercial/industrial projects will be subject to a negotiated payment to the school board as determined by a CRA Real Property Tax Abatement Agreement.
Municipal Job Creation Tax Credit Program
Designed to create jobs and increase the tax base. A minimum of 25 new jobs must be created over a three-year period and companies must be approved by the State of Ohio Jobs Tax Credit Program to qualify under the Toledo jobs Tax Credit Program. The credit is applied to the company’s municipal franchise tax, and is based upon the municipal income tax paid to Toledo by the new employees over a period of ten years.
Toledo Expansion Incentive
The Toledo Expansion Incentive was approved by Toledo City Council to encourage private businesses to expand within the City of Toledo. The amount of the award will be based on a percentage of municipal income tax paid in the first full year after the application is approved.
- In designated "Industrial Areas" and "Downtown" as demonstrated on Exhibit A, the award will be 30% of municipal income tax paid over the Expected Revenue as determined by the Department of Finance. Non-manufacturing companies are eligible for a 10% award in "Industrial Zones".
- In designated "Commercial Zones" as demonstrated on Exhibit A, the award will be 20% of municipal income tax paid over the Expected Revenue as determined by the Department of Finance.
- In all other areas of the City of Toledo the award will be 10% of municipal income tax paid over the Expected Revenue as determined by the Department of Finance.
- Additional 10% can be awarded if the entity is determined to spend 15% of net profits on research and development to the satisfaction of the Mayor, Department of Development, and the Review Committee.
An existing applicant, which is expanding, would be eligible for the award based upon the increased payroll for those jobs resulting from the expansion. The actual award is effective the first full calendar year after the expansion of the new jobs created. Approval would be made in advance.
For more information on the TEI, please contact the Development Office at 419-245-1286.