122:7-1-05 Eligibility requirements.

(A) Except as otherwise provided in this rule, the authority may grant a tax credit pursuant to section 122.17 of the Revised Code if the authority determines the business entity's project satisfies all of the following:

(1) The project satisfies the requirements set forth in division (C) of section 122.17 of the Revised Code;

(2) The taxpayer proposes as a result of the project to do all of the following within three years after the date of the initial operations:

(a) Create at least ten full-time equivalent employees at the project location;

(b) Generate additional annual payroll at the project location in an amount equal to or greater than one hundred seventy-five per cent of the federal minimum wage at the time the authority approves the project, multiplied by fifty-two thousand (which is the number of hours twenty-five full-time equivalent employees would work in one year); and

(c) Have an average hourly wage rate of at least one hundred fifty per cent of the federal minimum wage for all new employment positions added as a result of the project.

(3) Within three years of a project's date of initial operations, the taxpayer accomplishes the following:

(a) Creates at least ten new full-time equivalent employees at the project location;

(b) Generates additional annual payroll at the project location in an amount equal to or greater than one hundred seventy five per cent of the federal minimum wage at the time the authority approved the project, multiplied by fifty-two thousand (which is the number of hours twenty-five full-time equivalent employees work in one year);

(c) Maintains at least six hundred sixty thousand dollars of additional annual payroll over the baseline existing payroll set forth in the tax credit agreement for the term of the tax credit and the post-term reporting period, as defined in paragraph (O) of rule 122:7-1-01 of the Administrative Code and required by division (D)(3) of section 122.17 of the Revised Code. All payroll attributed to relocated employees is excluded from this calculation. If a taxpayer fails to satisfy this provision, no tax certificate shall be issued for that tax year; and

(d) Maintains an average hourly wage rate consistent with paragraph (A)(2)(c) of this rule and continues to do so for the entirety of the tax credit term.

(4) The project has received a letter of support from the chief executive, or his or her designee, of the local political subdivision or a regional development agency charged with promoting economic development with jurisdiction over the project location.

(B) All or any portion of a project determined to be retail shall not be eligible for tax credits pursuant to section 122.17 of the Revised Code.

(C) A taxpayer that sells or derives revenue from the performance of services rather than the sale of goods, must demonstrate to the satisfaction of the authority that at least fifty-one per cent of the sales or revenues attributable to the proposed project are projected to be generated from outside the state of Ohio within three years of the date of initial operations to be eligible for tax credits pursuant to section 122.17 of the Revised Code.

(D) Each taxpayer shall certify to the authority the amount of existing payroll for individuals employed at the project location as of the date of the job creation tax credit application. Acceptance of tax credit award shall constitute the taxpayer's confirmation that the amount of existing payroll and income tax revenue certified to the authority is accurate and will be relied upon by the authority in issuing tax credit certificates. The tax credit shall be calculated on payroll attributed to full-time equivalent employees employed by the taxpayer in excess of the existing payroll, as accepted by the authority, provided that the taxpayer executes and returns the tax credit agreement, within sixty days of delivery of the agreement. If the taxpayer fails to execute the tax credit agreement within such sixty day period, the tax credit shall be calculated on payroll attributed to full-time equivalent employees employed by the taxpayer in excess of the existing payroll, as of the date of the execution of the tax credit agreement. The taxpayer shall include with any agreement returned more than sixty days after delivery the amount of the taxpayer's payroll and income tax revenue at the project location not more than ten business days prior to the date the taxpayer signs the agreement. Such payroll amount shall be certified as accurate by the chief executive officer, chief financial officer, or other officer authorized to sign tax returns for the taxpayer.

(E) The authority may from time to time set additional eligibility requirements for job creation tax credit project applications.

Replaces: 122:7-1-05

Effective: 08/27/2010
R.C. 119.032 review dates: 08/17/2015
Promulgated Under: 119.03
Statutory Authority: 122.17(I)
Rule Amplifies: 122.17
Prior Effective Dates: 4/8/94; 11/8/99; 9/25/00; 11/10/03