Explanation
BACKGROUND: The need exists to enter into a Jobs Creation Tax Credit Agreement with Action Group, Inc. 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.
Action Group Inc. provides short-term delivery demands for precision metal, wood, plastic and glass store fixtures, electronic enclosures, chassis, cabinets and other items needed in the industrial, commercial, institutional and architectural marketplace. Action Group, Inc. plans to purchase $1,300,000 in machinery and equipment to accommodate expansion. The project will include an investment of $1,385,000, retention of 69 (sixty-nine) full-time jobs and the creation of 25 (twenty-five) full-time jobs. The project site is located at 411 Reynoldsburg-New Albany Road. The principal party is Frank Denutte, owner.
The Department of Development recommends a 60%/6 year jobs creation tax credit.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into an agreement with Action Group, Inc. for a Jobs Creation Tax Credit of 60% for a period of six years in consideration of a proposed $1,385,000 investment, the retention of 69 new full-time jobs and the creation of 25 new full-time jobs.
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 granted Action Group, Inc. a 40% 5 year Jobs Creation Tax Credit on June 26, 2006; and
WH...
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