INCENTIVES

LOCAL INCENTIVES

Communities in Sandusky County have a wide range of incentives available to assist new and expanding businesses.

THE ENTERPRISE ZONE PROGRAM

Communities in Ohio may establish an Enterprise Zone that provides local officials with the ability to negotiate a tax incentive agreement with a prospective company. The Enterprise Zone Agreement is a contract between the community and the company. This contract must be executed prior to any portion of the project beginning. The rate and term of the tax exemption are negotiated between local officials and the company. The Enterprise Zone law permits municipalities to offer the following incentives:

Exemption of real and/or personal property assessed values of up to 75% for up to 10 years or an average of 60% over the term of the agreement on new investments.
Permits unincorporated areas to offer an exemption of real and/or personal property assessed values of up to 60% for up to 10 years or an average of 50% over the term of the agreement on new investments.

Maximum exemption levels may be exceeded with approval by the affected board of education. The Enterprise Zone Program is available inside the City of Fremont, Bellevue, Clyde, and Gibsonburg and in the townships of Ballville, Green Creek, Jackson, Rice, Sandusky, and York.

COMMUNITY
REINVESTMENT AREA (CRA)

Community Reinvestment Areas (CRA) are areas of land in which property owners can receive tax incentives for investing in real property improvements. The CRA Program is a direct incentive tax exemption program benefiting property owners who renovate existing or construct new buildings. The local legislative authority with jurisdiction over the designated area determines the size, the number, as well as the term and extent of the real property exemptions. Local municipalities or counties can determine the type of development to be supported by the CRA Program by specifying the eligibility of residential, commercial and/or industrial projects. The CRA Program is available in the City of Fremont, Clyde, and Bellevue.

JOBS RETENTION &
CREATION INCENTIVE
INCOME TAX CREDIT

The Job Retention and Creation Incentive Program is open to eligible businesses that are creating new, full-time equivalent jobs. The City will offer an eligible company an annual grant payment based on a percentage of the annual payroll withholding taxes generated by jobs that are new to the City. The incentive is available in the City of Bellevue.

THE OPPORTUNITY ZONE PROGRAM

The Opportunity Zone Program was enacted as part of the 2017 federal tax reform and the goal is to drive investment in rural and low-income urban communities that have struggled to recover post-recession. This program consists of three components:

TEMPORARY DEFERRAL

A temporary deferral of taxable income for capital gains reinvested into an Opportunity Fund. The deferred gain must be recognized on the earlier of the date on which the opportunity zone investment is treated as disposed of or December 31, 2026.

REDUCTION IN GAIN THROUGH BASIS ADJUSTMENT

A step-up in basis for capital gains reinvested in an Opportunity Fund. The basis in the fund interest is increased by 10% if such interest is held for at least 5 years (for investments in 2020 and 2021) and by 15% if held for at least 7 years (for investments in 2019), thereby excluding up to 15% of the original gain from taxation. Investments starting in 2022 are not eligible for this partial exclusion.

EXCLUSIONS FOR CAPITAL GAINS ON THE NEW OPPORTUNITY ZONE INVESTMENT

A permanent exclusion from taxable income of post-income appreciation from the sale or exchange of an investment in an Opportunity Fund if the investment is held for at least 10 years (limited to 2047). This exclusion only applies to the future appreciation after an investment in an Opportunity Fund, but is available for investments in an Opportunity Fund through 2026.

The Opportunity Zone is available in certain areas in the City of Fremont and Sandusky Township.