Business Environment

The M2C2 benefits by a favorable state and local tax structure that supports investments in businesses that manufacture and produce products for distribution and consumption beyond Ohio’s borders.  The State of Ohio has eliminated taxes on corporate income as well as taxes related to property investments and inventory.  The Commercial Activities Tax (CAT) is the primary mechanism the State of Ohio generates revenue from business activities.  The CAT is only applied to gross receipts of Ohio sales only, meaning that a company locating in the M2C2 will not be taxed for any product produced on site and shipped outside the State of Ohio.  In addition to the aggressive state tax benefits, the M2C2 is located in an area with no local income or withholdings tax.  The following is a breakdown of the state and local taxes for businesses that locate to the M2C2:

 

Local Taxes

 

Real Estate:

$1,563.39 per $100,000 market value
(taxed at 35% of market value)

Sales: 1.5%

 

State Taxes

 

Commercial Activities:

0.26% on excess receipts over $1 mil.

All out-of-state sales are exempt.

Sales: 5.5%

Personal Income:

Top rate of 5.925% on income

over $204,200

 

Additional state and local tax information:

Ohio Tax Comparison Study (Ohio Tax Comp) ... Ohio Competitiveness Study (Ohio Competitiveness Study)

 

Incentives

Tax Credits & Abatements

The State of Ohio and Fayette County offer programs to reduce the tax burden on new projects and investments in the M2C2.  The site is located within an established Enterprise Zone which enables Fayette County to grant tax abatements on new real estate investments.  New tenants of the M2C2 could also be eligible for state level tax credits based on new payroll withholdings generated by a project.  These tax credits are refundable and could be an annual source of cash for new projects creating high wage jobs.

 

Loans

Although financing may not be a factor in many projects considering the M2C2, the State of Ohio does offer creative financing options for projects focused on research and the development of new products.  These financing programs can come with unique payback structures or additional tax incentives to support the project.

 

Infrastructure

The M2C2 is certified as a shovel ready industrial site, but it is understood that a project may require additional infrastructure investment to move forward.  Fayette County and the State of Ohio are prepared to partner with businesses to ensure that all road, rail, and utility infrastructure meets the specification of each project.  New investments that create jobs are eligible for grants, financing, and rebates for the extension of public infrastructure and can be negotiated on a project-by-project basis.

 

Workforce Training

The State of Ohio is committed to providing a qualified workforce for companies and is willing to share in the cost of training new employees.  Grant funds are available on a project-by-project basis and can be utilized by companies to train and upgrade the skills of new employees.

 

Foreign Trade Zone

The M2C2 maintains a Foreign Trade Zone status that enables companies to save money through reduced fees and administrative burdens.

 

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133 S. Main St., Washington Court House, OH 43160 - 740.335.0720