Ohio Tax Credits*
The Ohio Historic Preservation Tax Credit Program is administered by the Ohio Department of Development’s Urban Development Division, with assistance provided by the Ohio Historic Preservation Office of the Ohio Historical Society and the Ohio Department of Taxation. The Program provides a tax credit for the rehabilitation expenses to owners of historically significant buildings.
The tax credit provides 25% of qualified rehabilitation expenditures for historic rehabilitation projects. The expenditures represent hard construction costs generally consisting of improvements made to the building structure and interior. The work must meet the U.S. Secretary of Interior’s Standards for Rehabilitation of Historic Properties.
A building is eligible if it is individually listed on the National Register of Historic Places, is located in a registered historic district, is certified by Ohio’s Preservation Officer as beingof historic significance to the district, or is listed as a historic landmark by a certified local government.
Federal Tax Credits*
The Federal Historic Tax Credit Program provides federal income tax incentives for the rehabilitation of historic income-producing properties. Under the provisions of the Tax Reform Act of 1986, a 20% tax credit is available for the substantial rehabilitation of commercial, agricultural, industrial, or rental residential buildings that are certified as historic. The credit may be subtracted directly from federal income taxes owed by the owner.
Job Creation Incentive Grant Program
This grant program provides incentives to companies making substantial investments in new employment within the City of Middletown. Those companies creating a minimum of 25 full-time jobs and $1 million in payroll are eligible to participate in the program. Companies may receive a grant equal to 15% of the Middletown City income taxes collected annually for a period of up to 10 years for every $1 million in new payroll created. For every additional $1 million in new payroll created, companies may receive an additional 15% of the income taxes collected annually up to a maximum of 50%. The grant is also capped at $100,000 annually for any single project.
Butler County Loan Program
Loans from Butler County’s Revolving Loan Fund are available. Butler Countyhas administered hundreds of loans for Butler County’s small businesses since 1983.
Main Benefits: Low down payments are usually around 10%. Fixed rates interest charges typically range between 4 to 8 percent. Short terms loan maturity generally ranges from two to five years with equal monthly payments.
Job/Investment: The mission of the Revolving Loan Fund is economic development through business expansion and job creation.ButlerCounty requires that one job must be created for each $35,000 in RLF assistance and that a minimum of 51% of the jobs created or retained must be available for lower and moderate incomes.
Eligibility: Qualified businesses must be a for-profit corporation, partnership or sole proprietorship.
Approved use: Land acquisition, existing building purchase, new construction, renovation and expansion, machinery and equipment, and working capital loans which are considered on a case by case basis
Unapproved use: Investment property, residential uses, refinancing, and building purchases if business does not occupy 50% of the space.
Maximum/Minimum: The minimum loan amount is $15,000 while the maximum loan amount varies depending on the RLF fund balances.
Financing: Bank participation is required on most RLF loans. Under most circumstances the applicant business must inject a minimum of 10%. The business must also occupy and operate within the site where loan proceeds are applied.
Fees: A non-refundable application fee of $300 must accompany the formal application. Closing Cost includes a non-refundable servicing fee equaling 1/2% of 1 % of the loan amount (minimum $300; maximum $1,000) plus legal counsel fees paid at closing.
SBA Loan Program
The SBA 504 Loan Program provides economic development financing designed to encourage private-sector investment in fixed assets, the results of which increase productivity and create new jobs. The program provides long-term, low down payment, reasonably priced fixed-rate financing to healthy and expanding businesses that have the probability of creating new jobs. To be eligible for a SBA 504 Business Loan, a small business applicant must be: an operating business; be organized for profit; be located in the United States; have a tangible net worth less than $7 million, and have an average net income after federal income taxes of less than $2.5 million for the preceding two years.
Community Reinvestment Area (CRA)
The Ohio Community Reinvestment Area program is an economic development tool administered by municipal and county governments that provides real property tax exemptions to businesses making investments in Ohio.
In order to use the Community Reinvestment Area program, a city, village, or county petitions to the Ohio Department of Development for confirmation of a geographical area in which investment in housing has traditionally been discouraged. Part of the petition reviewed by the department is a housing survey performed by the respective city, village, or county. Once an area is confirmed, communities may offer real-property tax exemptions to taxpayers that invest in the area.
Business/Project: Local real property tax incentives for business that expand or locate inOhio,
Rate/Terms: Up to 100% exemption of the value of real property improvement for up to 15 years,
Eligibility: Property owner must undertake new real property investment. The term of the exemption is established by the local legislative authority, but cannot exceed 15 years on new construction or 12 years on major renovation projects. Application for the real property local tax exemption is made directly to the municipality or county that created the CRA.
Incentives: Substantial real estate property tax reduction, See ORC 3735,65-70,
*Downtown Middletown, Inc is currently in the process of creating a Downtown Historic District that is recognised by the National Register of Historic Places. Once it has been complete we will update this website.