Explanation
BACKGROUND: The need exists to enter into a Jobs Creation Tax Credit Agreement with LTS/MAST. The Ohio Tax Credit Legislation (Section 718.08 of the Ohio Revised Code) authorizing such agreements became effective January 14, 1993 and requires the City to enter into a Council-approved agreement between the City and a participating company.
LTS/MAST plans to relocate to a 10,500 square foot office to accommodate relocation and expansion. The project will include an investment of $1,300,000, and the creation of 51 (fifty-one) full-time jobs.
The Department of Development recommends a 60%/7 year jobs creation tax credit.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into an agreement with LTS/MAST for a Jobs Creation Tax Credit of sixty percent (60%) for a period of 7 (seven) years in consideration of a proposed $1,300,000 investment, and the creation of 51 (fifty-one) new full-time jobs; and to declare an emergency.
Body
WHEREAS, pursuant to Section 122.17 of the Ohio Revised Code, the State of Ohio is authorized to establish the Tax Credit Authority and to execute agreements with taxpayers of the State of Ohio for the purpose of granting these taxpayers job creation tax credits against their corporate franchise or income tax, which tax credits are provided to create new jobs in the State of Ohio; and
WHEREAS, the State of Ohio Tax Credit Authority has granted LTS/MAST a 60% 10 year Jobs Creation Tax Credit; and
WHEREAS, pursuant to Section 718.08 of the Ohio Revised Code (the "City Act") a municipal corporation is authorized to grant local income tax credits to taxpayers who have received tax credits from the State; and
WHEREAS, the granting of the tax credit by the City for the proposed expansion project by LTS/MAST will create 51 (fifty-one) full-time permanent jobs and increase opportunities for employment ...
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