The following is from an email from Michelle Miller on 11/4/2009:
From this point forward, please use these updated 12 bullet points when working with companies who you feel may benefit from ODOD incentives. As always, time is saved for all when these items are answered and sent to us BEFORE the scheduled meeting. Please note the changes for the employment schedule bullet item which deals specifically for tax credits. A full document of the new program guidelines for JCTC is available on the ODOD website; however I have highlighted some points of eligibility within the bullet point. If there are other ED partners throughout the region that would also benefit from this information, feel free to share this email with them.
The 12 Points
1. General information about the company (Background, history, ownership, structure)
2. Core concept and market penetration / scale up viability of product
3. Capital expenditure schedule for 12 months [ID and detail discrete elements. (i.e. M&E, infrastructure improvements, leasehold improvements, etc. )]
4. Employment schedule for the first 36 months: The potential taxpayer commits to create at least 10 full-time equivalent employees paying wages of at least 175% of the federal minimum wage AND generating at least $660,000 in total annual payroll during the first three years of project operations. The taxpayer is expected to maintain that level of committed payroll. The payroll amount of $660,000 equals 175% of the federal minimum wage for 25 full-time equivalent employees. The payroll threshold will increase if federal minimum wage increases.
- a–Notwithstanding the above, if the unadjusted unemployment rate within the county of the project site is greater than 7% at the time that the Authority approves the tax credit, then the potential JCTC grantee may only be required to maintain an average hourly wage of 150% of the federal minimum wage for all new employment positions for the entirety of the tax credit term generating at least $660,000 in total annual payroll during the first three years of project operations.
- b– Feel free to calculate hourly and salary employees together, to determine the average base wage. ****Please keep in mind that the wage number you have will be used to determine your rate and term for JCTC and valued as your commitment to remain in compliance with the JCTC contract.
- c–The potential JCTC grantee must demonstrate that the tax credit is a “major factor” in its decision to expand or locate in Ohio. If a project starts prior to Authority approval, the JCTC will not be considered a “major factor” in the taxpayer’s decision. Accordingly, the project must not have already started, i.e., construction begun at the site or project publicly announced as planned for the project site, prior to approval by the Authority. Payroll generated prior to approval by the Authority cannot be counted as eligible, new payroll for the purpose of the tax credit.
- d–Service-oriented projects must demonstrate that at least 51 percent of project site-attributable sales or revenues attributable to the project are generated from buyers located outside Ohio.
5. Number of employees in layoff status or released within the past 12 months
6. Sources and Uses of funds for this project
7. Projected income statement
8. Cash Flows
9. Balance Sheet
10. Schedule of anticipated Ohio Commercial Activities Tax liabilities
11. Training plan for a 24 month period
12. Name, title, email address and mailing address of company official for all communication and for the Financial Assistance Application. You may give more than one contact.
One more noted point for JCTC
Intrastate relocation projects generally are ineligible to receive JCTC assistance unless a formal determination is made by the Director of Development that the legislative authority of the negatively impacted county, township, or municipal corporation has been notified by the potential taxpayer of the relocation. The potential taxpayer must also concurrently send a copy of the notice to the Executive Director of the Tax Credit Authority. The notice to the negatively impacted community must include the following:
(1) The number of full-time equivalent employees that will be relocated;
(2) The payroll attributed to the relocated employees;
(3) The business reason for the relocation of employees.
