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 exceptions that the tax credit is granted at the local level and it is a non-refundable credit. 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 State 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 than 150% of the current federal minimum wage ($10.95 in 2009). The City has historically agreed to allow a credit of equal percentage and duration to the State approved credit.
