Explanation
BACKGROUND: The need exists to enter into a Jobs Creation Tax Credit Agreement with Healthcare Transaction Processors, Inc. (HTP). 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.
HTP develops software for the healthcare industry. The company was founded in 1996 and is headquartered in Columbus, Ohio. HTP's software is designed to improve efficiency, profitability and service quality for hospitals, insurance companies, physician groups, and other healthcare providers. HTP has more than 170 customers in 25 states, including 90 hospitals and 60 health plans. Notable HTP customers include Ohio Medicaid and Utah Health Information Network.
The project will result in an investment of $850,000 in new personal property, the retention of 36 full-time permanent employees and the creation of 109 full-time permanent jobs with an annual payroll of $6.5 million.
The Department of Development recommends a 65%/8 year Jobs Creation Tax Credit.
Emergency action is requested in order to allow HTP to make a decision on the location of their proposed expansion 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 Healthcare Transaction Processors, Inc. for a Jobs Creation Tax Credit of 65% for a period of 8 years in consideration of the company's investment of $850,000 in new personal property, the creation of 109 full time permanent jobs and the retention of 36 full time permanent employees; 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 agre...
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