Keeping your overhead low so you can maximize your business.

Local Tax Incentives and Misc. Assistance
All of these programs/incentives are negotiable with the local political subdivision and may or may not be offered. For descriptions of potential state incentives, please visit Columbus2020's incentives page.

• Community Reinvestment Area (CRA) Tax Incentive – Up to 100% tax reduction for up to 15 years on real property tax (new buildings, building improvements/expansions, other property improvements)
  
  
• Municipal Income Tax Credit – London is willing to explore tax credits on municipal income tax withholdings for certain projects. Must also be an Ohio Job Creation Tax Credit recipient.
  
  
• Tax Increment Financing (TIF) – Typically Madison County communities have utilized TIFs for improving infrastructure (roads, water, sewer, etc.).
  
  
• Worker Training – The Madison County Future, Inc. CIC will partner with you, Madison Works, our county’s regional WORKPLUS One-Stop center, and our educational and training partners to customize training programs for your workforce or potential workforce. We will seek any available training dollars to assist in this effort.
  
  
• Job Fair Assistance – State funds have been allocated through our regional Workforce Investment Board for assisting companies in filling open positions with qualified workers
  
  When combined with local testing and screening services, your company can save up to $1,000 per employee recruited and hired (up to $400,000 in savings for a company of 400)
  
  
• Tap and Permit Fee Reductions –Madison County communities may waive a portion or all of tap in fees for water and/or sewer and/or permits.
  
  
• Safety Council – Participation in our local Safety Council program will earn your company a 2% to 4% rebate on Workers Compensation premiums.

Financing Opportunities
Because we are an agricultural community we have a variety of financing opportunities that your project will not find in urban areas. We also have local lenders who have not been affected by the credit situation and willing to work with/through and of the programs below.

Madison County enjoys local, regional, state and federal partnerships that allow us to quickly and easily explore a variety of financing opportunities.

• Columbus-Franklin County Finance Authority Lease to Own Option with Sales Tax Exemption
  Through the Columbus-Franklin County Finance Authority, significant savings on the state and local sales tax imposed on construction materials can be gained when utilizing them to purchase land and/or building a new building or expanding your existing building.
  

o        Model Project (How it works)

$30 million capital investment in a new building with 50% of the costs in construction materials (30,000 sq. ft.)

Madison Co. Sales Tax of 6.75%

The Finance Authority issues $30 million in taxable bonds to finance the project.

The Finance Authority holds the title to the building and enters into a long-term lease with the client (with a minimum of 7 years).

The bonds may be purchased by: (i) the client’s bank; (ii) a related entity of the client itself; or (iii) the Finance Authority could place the bonds in the capital markets.

If the bonds were purchased by the client’s bank, the bank would negotiate the terms of the lease (interest rate, term, guarantees, etc.).

At the end of the lease term, the building’s title would be transferred to the client for a nominal amount.

The client would be viewed as the building’s owner for federal tax purposes and therefore would be able to take depreciation on the building.

Costs Savings

$30 million           Total Building Investment

X 50%                    % of investment in construction materials

$15 million           Cost of Construction Materials

 

$15 million           Cost of Construction Materials

X 6.75%                 Madison Co. Sales Tax

$1,012,500         Sales Tax Owed

 

$1,012,500         Sales Tax Owed

X 80%                    % of Value brought to client

$810,000       Savings Available to client

The company can own the land and enter into a ground lease with the authority.

The Authority can own the land and hold fee simple title to the land.

Timing does impact the building construction. A preliminary agreement must be in place before a sales tax exemption certificate can be issued for the construction materials.

Regarding the term of the lease, the Finance Authority would need to retain title for a minimum of 7 years to ensure that it would pass any audit scrutiny on the sales tax exemption. They would set up a 20-year term and allow for a pre-payment without a penalty between 7 and 20 years.

 

• ECDI Microenterprise Loan Program – The Madison County Future Inc. has a strategic partnership with the Economic and Community Development Institute, central Ohio’s only SBA certified microenterprise lender, to disperse loans of anywhere up to $100,000 for small business startups and expansions. These loans typically are for projects that do not qualify for conventional bank financing or serve as a component of a financing portfolio.

• USDA Rural Development Business & Industry Loan Guarantees (B&I) - The B&I program provides loan guarantees for expansion and preservation of jobs in rural areas.  The program can provide development credit in rural areas and towns of 50,000 or less. The program provides guarantees to commercial lenders who make credit available to establish or maintain businesses.  Loan funds may be used to purchase land, buildings and equipment; working capital; and in some cases to refinance debt.  Eligible entities include corporations, partnerships, cooperatives, individuals, federally recognized Indian Tribes and other legal entities.

This program would be offered through one of our local lenders.

• USDA Rural Development Intermediary Relending Program (IRP) - The purpose of the Intermediary Relending Program is to finance business facilities and community development projects in rural areas.  This is achieved through low interest loans made by Rural Development to intermediaries such as or our CIC).  The intermediaries relend the funds to ultimate recipients for business purposes or community development projects.  Intermediaries establish revolving loan funds, so that collections from loans to ultimate recipients, in excess of necessary operating expenses and debt payments, will be used for more loans to ultimate recipients.  Intermediaries may be private nonprofit corporations, public agencies, Indian groups or cooperatives.  Any type legal entity, including individuals and public and private organizations, may be an ultimate recipient.

• USDA Rural Development Rural Business Enterprise Grants (RBEG) - These grants provide resources which are utilized to develop small and emerging business enterprises in rural areas or cities up to 50,000 population.  Qualifying entities include public bodies and nonprofit corporations.  Grants are used by third party lenders to create revolving business loan funds.  Funds can also be used to install infrastructure to business locations and house business incubators. Our CIC would apply for this on your behalf.
  
  
• USDA Rural Development Rural Economic Development Loan and Grant (REDLG) - This program is utilized to finance rural economic development and rural job creation projects which are based on sound economic and financial analysis.  This is done by making zero-interest loans and/or grants to Rural Development electric and telephone borrowers who use the funds to provide financing for business and community development projects.  Eligible project costs include project feasibility studies, start-up costs, purchasing facilities and equipment, business incubator projects and other reasonable expenses for the purpose of fostering rural economic development.

For descriptions of potential state incentives, please visit Columbus2020's incentives page.