Explanation
BACKGROUND: The need exists to enter into a Job Creation Tax Credit with International Business Machines Corporation. The Ohio Tax Credit Legislation (Section 718.15 of the Ohio Revised Code) authorizing such agreements became effective January 14, 1993 and requires the City to enter a Council-approved agreement between the City and a participating company.
International Business Machines Corporation (IBM) was founded in 1911 through the merger of three separate companies and is a multinational consulting and technology corporation headquartered in New York. IBM manufactures and markets computer hardware and software, along with offering consulting, hosting and infrastructure services. The company does business in 180 countries, has 12 research laboratories worldwide and for 19 consecutive years, has held the record for most patents generated by a company.
The project involves the creation of a worldwide business analytics and software development center. The Center for Advanced Analytics will operate in 30,000 square feet of additional leased space within the company’s current site at 4600 Lakehurst Court. A total investment of $3.2 million will be made for building improvements, machinery, equipment, furniture and fixtures. IBM will create 500 new full-time permanent positions and retain 671 employees.
The State of Ohio has offered a sixty percent (60%), eight (8) year Job Creation Tax Credit to IBM.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Job Creation Tax Credit Agreement of sixty-five percent (65%) for a period of six (6) years with International Business Machines Corporation in consideration of the company’s investment of $3.2 million in building improvements, machinery, equipment, furniture and fixtures and the creation of 500 new permanent full-time positions and the retention of 671 existing positions.
Body
WHEREAS, pursuant to S...
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