The City of Hamilton Local Job Creation Tax Credit Program offers eligible companies a tax credit against their local corporate earnings tax. This program is similar to the Ohio Job Creation Tax Credit; with the exception that the tax credit is granted at the local level and that it is non-refundable. The program is only available to municipalities which collect a local income/earnings tax.
Terms of Credit

In practice, the city grants a non-refundable tax credit of a specified percentage for a given number of years (up to 10). This is a credit against the company’s local corporate earnings tax. The amount of the credit is based upon the amount of tax withholding of City personal income tax on the new employees.
Eligible Businesses

Currently, by Sate law, eligibility for this credit is dependent upon the State of Ohio granting a tax credit through the Ohio Job Creation Tax Credit Program. The average wage of the new employees must be greater that 150% of the current federal minimum wage.
Program Summary/Objective

The Ohio Job Creation Tax Credit is designed to be attractive to companies planning relocation or expansion by minimizing capital expenditures thereby allowing the company to retain capital within the business. To encourage relocation or expansion in Ohio, the Job Creation Tax Credit can be used to help capitalize otherwise unachievable relocation or expansion options.
A five-member authority has been established to oversee this Ohio incentive program. This authority reviews the proposed project, and makes the determination of the percentage of State tax liability credited/rebated and the number of years it will be in effect.
Eligibility

Industrial or commercial (non-retail) projects which involve interstate competition for business and employment; inducement for business growth in Ohio; in general, project cannot be a relocation from one Ohio community to another.
Incentive/Benefit

Refundable tax credit of up to 100% for up to 10 years on a company’s corporate franchise tax, based on the State personal income tax receipts from the projected new employees to Ohio.
Requirements

Creation of at least 25 new full-time Ohio jobs, with an average hourly wage rate of at least 150% of Ohio minimum wage ($8.77 after July, 2007); $500 non-refundable application fee.
Sample Calculation                                                        250
Number of Jobs Created                                                $30,000
Average Wage                                                              $750 x 250 = $187,500
State Tax Liability (estimate)                                          65%
Corporate Franchise Tax Credit/Rebate (annual)              $121,875