In an effort to increase the manufacturing, warehouse, research and distribution development on the City, the City of Orrville has designated an enterprise zone pursuant to Ohio law. Within this zone, special tax incentives may be offered by contract to entities who agree to make a capital investment and create and/or retain jobs.
As a general guideline for a project to be considered for Enterprise Zone benefits, it must meet one of the following four definitions:
- Establish: means to set up a new facility at a location where the business had not previously operated.
- Expand: means to make expenditures to add land, buildings, machinery, equipment, or other materials, except inventory, to a facility that equals at least ten percent of market value of the facility prior to such expenditures, as determined for the purposes of local property taxation.
- Renovate: means to make expenditures to alter or repair a facility that equals at least fifty percent of the market value of the facility prior to such expenditures, as determined for the purposes of local property taxation.
- Occupy: means to make expenditures to alter or repair a vacant facility equal to at least twenty percent of the market value of the facility prior to such expenditures, as determined for the purposes of local property taxation.
In exchange for the significant capital investment resulting in the creation of new employment opportunities, a business may qualify for one or more of the following incentives:
- Real Estate: Partial exemption for a specified number of years, not to exceed fifteen, of a specified portion up to 50% of the new tax value added to the project site as a result of the agreement.
Orrville Job Creation Tax Credit
A refundable tax credit is available based on a percentage of the new local income taxes withheld from the employees who receive the newly created jobs. The maximum Job Creation Tax Credit will be 25% of the City Income Tax withheld on the qualifying new jobs; with a maximum Job Creation Tax Credit of 10% of the City Income Tax withheld on qualifying new jobs if the participant also has an accompanying Enterprise Zone Agreement.
Utility Connection Fee Credit
The Orrville Utilities in response to utility costs are prepared to waive the “connection fee” associated with connection of the water and sewer lines. The potential savings are in the thousands of dollars depending on the size of the service.