Ohio approves tax credits for private businesses

Ohio officials last week announced the approval of five projects they claim will result in more than $2.1 billion in investments across the state.

Development officials say the projects will retain nearly 1,165 jobs statewide, create 218 new jobs and result in more than $14 million in new payroll. The credits were approved during the Ohio Tax Credit Authority’s monthly meeting.

The state agency reviewed proposals it received from JobsOhio and its regional partners. However, critics have routinely questioned whether incentives actually help, and an Ohio.News analysis of JobsOhio found that the jobs it claimed to create come at a steep price.

An Ohio Department of Development spokesperson did not respond to a request from Ohio.News to clarify a dollar amount or even a range for the cost of the tax credits. The announcement prompted several state lawmakers to issue news releases trumpeting the announcement as a success.

The Tax Credit Authority approved a 1.23%, eight-year job creation tax credit for Axium Packaging, which said it anticipates creating 70 full-time-equivalent positions in Jersey Township and New Albany. The proposed project includes a new facility for additional specialized warehousing and tube manufacturing capacity.

The authority also approved a 50% 10-year data center tax exemption for Vantage Data Centers Management Co., which anticipates creating 37 full-time-equivalent positions due to the company’s new Millersport location. A $2.1 billion fixed-asset investment is included in the project.

TCA also approved a 1.169%, six-year job creation tax credit for Becker Mining America, which plans to create 40 full-time-equivalent positions due to its new location in Mount Vernon. The project proposes acquiring an existing facility to house intellectual property and manufacturing operations.

Officials also approved a 1.163%, six-year job creation tax credit for the Ohio Bridge Corporation, which does business as U.S. Bridge and anticipates creating 41 full-time-equivalent positions due to its expansion in Cambridge. The proposed project includes expanding their current facilities by constructing a 70,000-square-foot building for welding equipment and renovating older buildings.

The Tax Credit Authority approved a 1.428%, seven-year job creation tax credit for advanced manufacturing company VILPE USA. The Finland-based company’s project includes establishing its first North American office; the location will be its North American headquarters.

John C. Mozena, president of The Center for Economic Accountability, previously questioned such tax credits.

“These announcements raise the fundamental question: Why?” Mozena previously told Ohio.News about a previous round of such incentives. “…There’s nothing wrong with companies luring away their competitors’ employees, other than it’s not something that Ohio’s government should be subsidizing.

“At the end of the day, companies like these make mission-critical decisions based on fundamental business factors,” Mozena added. “They try to figure out where it makes the most business sense to do business, and something like a small payroll tax break is going to play a very, very small role in that decision when compared to things like where their customers are, where their suppliers are, whether the workers are there, what the broader corporate tax and regulatory environment is like, whether they can rely on the power grid and road infrastructure, etcetera.”