122:7-1-06 Tax credit per cent and term.

(A) Except as otherwise provided in paragraph (E) of this rule, the authority shall not grant a tax credit that exceeds seventy five per cent of the excess income tax revenue to be received by the state for a taxable year from full-time equivalent employees located at a project location.

(B) Except as otherwise provided in paragraph (F) of this rule, the authority shall not grant a tax credit that exceeds a term of ten years. The tax credit may be claimed by the taxpayer only for the consecutive taxable years during the term.

(C) The authority shall consider the following factors in determining the tax credit percentage and term to be granted to a taxpayer:

(1) The number of full-time equivalent employees to be created;

(2) The average hourly wage rate, excluding benefits, of the full-time equivalent employees to be created;

(3) The total fixed-asset investment amount the taxpayer will make or cause to be made in the project;

(4) The number of full-time equivalent employees to be retained at the project location;

(5) The economic condition of the county and region of the state where the project is to be located;

(6) The specific percentage of disadvantaged persons and minorities the taxpayer is agreeing to hire for the project;

(7) The industry sector of the project proposed for tax credit assistance;

(8) The amount of direct local financial support committed to the project; and

(9) The amount of other financial assistance to be provided by the state in support of the project.

(D) In addition to the tax credit percentage and term, the authority shall also determine the "pay increase factor," as defined in paragraph (N) of rule 122:7-1-01 of the Administrative Code, for each project approved. Once determined, the pay increase factor shall be fixed for the term of the tax credit. The authority shall determine the pay increase factor by either:

(1) An examination of the historic payroll growth of the taxpayer during the more recent prior three year period , if available; or

(2) An examination of the average per cent change in the consumer price index during each of the previous five years for which consumer price index data are then available. The authority shall consider this method for calculating the pay increase factor when the taxpayer has demonstrated to the satisfaction of the authority that:

(a) The historic payroll growth of the taxpayer is not reflective of anticipated future growth and that a rate based upon historic payroll growth will materially curtail the taxpayer's ability to create new employment positions in the state; or (b) Historic payroll information is not available for the taxpayer at the project location.

(E) The authority may grant a tax credit greater than seventy-five per cent of the excess income tax revenue to be received by the state for the taxable year from full-time equivalent employees in a project if:

(1) The proposed project receives a term of five years or less, and the executive director recommends and the authority finds that there is an extraordinary circumstance which merits such an exception; or

(2) The proposed project receives a term of more than five years, and the director recommends and the authority finds that there is an extraordinary circumstance which merits such an exception.

(F) The authority may grant a tax credit term between eleven and fifteen years if the director recommends and the authority finds that there is an extraordinary circumstance which merits such an exception. the authority shall not grant a tax credit that exceeds a term allowable under division (D)(2) of section 122.17 of the Revised Code.

Replaces: 122:7-1-06

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