Incentives

XENIA, OHIO through the Xenia Economic Growth Corporation (XEGC), can assist your project with confidential technical and/or financial assistance if desired. This assistance can include the investigation of all available local, state, and federal financing and incentive programs to provide a tailor-made financial incentive package for your project. A number of frequently used programs include:

City of Xenia Revolving Loan Fund

A limited, public-sector loan program that can be used in conjunction with conventional financing for:

Real property (land and/or building) acquisition and improvements; and/or
Purchase of machinery and equipment

Ohio Enterprise Zone Program (tax abatement)

The City of Xenia has established an Ohio Enterprise Zone Program. This Program provides for up to 75% tax abatement of real and tangible personal property taxes for a 10 year period. This program is available for industrial expansions, including new facilities involving manufacturing, warehouse/distribution, research and development, and office operations. Residential and retail projects are not eligible.

Ohio Mfg. Machinery & Equip. Inv. Tax Credit Program

This program offers a non-refundable corporate franchise or state income tax credit for a manufacturer that purchases new machinery and equipment. This credit only applies to machinery and equipment that is located in Ohio and is used in the production or assembly of manufactured goods.

A manufacturer can receive a 7.5% tax credit on the increase of the investment which is in excess of the three-year annual average investment on machinery and equipment in Ohio.

The purchase of machinery and equipment must be made between July 1, 1995 and December 31, 2005, with installation no later than December 31, 2006. (Note: 12/03 program extended to 2016)

Ohio Job Creation Tax Credit Program

This program provides corporate franchise or state income tax credits to businesses that expand or locate in Ohio.

A business can receive a refundable tax credit against its corporate franchise tax/income tax base on the state income tax withheld on new, full-time employees. The business must agree to create and maintain at least 25 new, full-time jobs within three years, the average wage (excluding benefits) must be at least 150% of the current federal minimum wage.

The Ohio Tax Credit Authority has issued credits generally ranging from 50% to 75% for 5 to 10 years, depending on the project.

Ohio Job Training Tax Credit

The Training Tax Credit program provides a non-refundable franchise tax credit designed to encourage Ohio's corporations to provide necessary training to its current Ohio workforce that is at risk of being displaced because of skill deficiencies or the inability to use new technologies. Currently, C-corporations subject to the Ohio Franchise Tax provision are eligible for this credit.

Warehouse Inventory Tax Exemption

Provides an exemption from the personal property tax on qualifying inventory.

Inventory brought into Ohio from out of state, held for storage only with no further processing and then distributed back outside of the state, will be subject to a reduced personal tangible property assessment rate. “Held for Storage Only” is a specific standard of eligibility, which may preclude the value of some inventory being shipped directly to customers from qualifying for the reduced assessment rate.

The exemption has been phased in by lowering the assessment rate for qualifying inventory. The current assessment rate is zero (0%) percent.

Sales Tax Exemptions

Exempts entire state and county sales tax for purchases of eligible machinery and equipment for the following activities:

Manufacturing Machinery and Equipment
Research and Development
Warehouse Machinery and Equipment

For complete program information on any of the available business incentive programs, contact the Xenia Economic Growth Corporation.