Explanation
BACKGROUND: The need exists to enter into a Jobs Creation Tax Credit Agreement with DeCrane Aircraft Holdings, Inc. (DeCrane Aircraft). 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 a Council-approved agreement between the City and a participating company.
DeCrane Aircraft plans to expand its business in the City of Columbus. The project will result in an investment of $650,000, including $150,000 in real property improvements and $500,000 in furniture and fixtures, the retention of 8 (eight) full-time permanent employees with an annual payroll of $1,120,000 and the creation of 3 (three) full-time permanent jobs with an annual payroll of $270,000.
The Department of Development recommends a 60%/7 year Jobs Creation Tax Credit.
Emergency action is requested in order to allow DeCrane Aircraft to make a decision on the location of the proposed project as quickly as possible.
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 DeCrane Aircraft for a Jobs Creation Tax Credit of sixty percent (60%) for a period of seven (7) years; 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 Ohio Department of Development granted DeCrane Aircraft a 60%/7 year Jobs Creation Tax Credit on February 28, 2005; and
WHEREAS, pursuant to Section 718.08 of the Ohio Revised Code (the "City Act") a municipal corporation is...
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