Explanation
BACKGROUND:
The need exists to enter into a Jobs Creation Tax Credit Agreement with Rimrock Corporation. 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.
Rimrock Corporation plans to purchase $250,000 of new machinery and equipment to accommodate expansion. The project will include an investment of $250,000, retention of 95 (ninety-five) full-time jobs and the creation of 10 (ten) full-time jobs.
The Department of Development recommends a 50%/5 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 Rimrock Corporation for a Jobs Creation Tax Credit of fifty percent (50%) for a period of five (5) years in consideration of a proposed $250,000 investment, the retention of 95 (ninety-five) new full-time jobs and the creation of 10 (ten) 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 Rimrock Corporation a 55% 7 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 Rim...
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