With a talented manufacturing workforce and no corporate income tax, Ohio is an appealing state to do business in. The Buckeye State also has a variety of state tax incentives, credits, and exemptions available to business owners. Read on for a complete breakdown of your options. 

Business tax incentives in Ohio

Workforce tax incentives

CDL Training Program

The CDL Training Program gives Ohio businesses a tax credit of up to $25,000 for sponsoring a commercial driver’s license (CDL) training program for current or prospective employees. The credit is equal to 50% of the training costs. 

To be eligible for the credit, businesses must register with the Ohio Secretary of State and employ Ohio residents who receive W-2s. Learn more about the program and how to apply here. 

Job Creation Tax Credit

Ohio’s Job Creation Tax Credit incentivizes businesses to create new, well-paying jobs. The credit amount is a percentage of a business’s payroll and can be applied against the business’s commercial activity tax liability. 

To qualify for the credit, businesses have to meet the following requirements: 

  • Create at least 10 jobs within three years
  • Have a minimum annual payroll of $660,000
  • Pay employees at least 150% of the federal minimum wage  

Get additional information on the credit here.

Related: How to hire employees in Ohio

Investment tax incentives 

Ohio New Markets Tax Credit Program

The Ohio New Markets Tax Credit Program incentivizes investors to fund underserved businesses in low-income communities throughout the state. Investors contribute cash to Community Development Entities (CDEs), which allocate the funds to eligible businesses. 

Investors can claim a credit equal to 39% of their investment over seven years. New application rounds begin roughly every year, so check this page for information on the next application period.  

Ohio Opportunity Zones Tax Credit Program

The Ohio Opportunity Zone Tax Credit Program encourages investors to invest in Opportunity Zones—economically distressed areas—within Ohio. Investors contribute cash to an Ohio Qualified Opportunity Fund (QOF), which then puts that money into an Opportunity Zone property. 

The credit is equal to 10% of the investor’s investment total and can only be applied to individual income tax. Learn more about the program and when to apply for the 2025 period here. 

Development tax incentives

Transformational Mixed-Use Development Program

The Transformational Mixed-Use Development Program gives insurance companies and business property owners a tax credit for taking on construction projects that have the potential to stimulate economic development in the area. 

Both new construction projects and vacant building renovation projects are eligible as long as the final product is mixed-use, meaning it combines retail, office, residential, or recreational space. 

Property owners can receive a credit equal to 10% of the estimated development costs for the project, and insurance companies can receive a credit equal to 10% of their capital contribution to the project. 

To qualify, businesses must meet these criteria:

  • Be either a property owner of the land where the project takes place or an insurance company that’s invested in the planning or construction of the project
  • Ensure the development project meets square footage building requirements, which vary by location
  • Spend at least $50 million for development projects located in a major city
  • Ensure the project includes at least two mixed uses or three if one of the uses is a parking structure
  • Demonstrate that the tax collections from real property, income, lodging, and sales taxes as a result of the project are greater than 10% of the estimated development costs 

Apply for the program here. 

Entertainment tax incentives

Ohio Motion Picture Tax Credit

The Ohio Motion Picture Tax Credit (OMPTC) incentivizes production companies to set their projects within Ohio. Under the program, production companies can get a credit equal to 30% of their cast and crew wages and eligible in-state expenditures. 

A variety of types of productions are eligible for the credit as long as they spend a minimum of $300,000 on crew wages, materials, and other expenses in Ohio. The following types of productions can apply: 

  • Broadway theatrical productions
  • Commercials
  • Digital media
  • Documentaries
  • Feature films
  • Interactive games
  • Interactive television
  • Interactive websites
  • Interstitial television programming
  • Long-form specials
  • Mini series
  • Music videos
  • Pilots
  • TV series
  • Sound recordings
  • Trailers
  • Videos
  • Video games
  • Video teasers

Learn how to apply here. 

Ohio Film and Theater Capital Improvements Tax Credit Program

The Ohio Film and Theater Capital Improvements Tax Credit Program gives production companies a tax credit for completing a capital improvement project related to the production or postproduction of a theatrical production. 

The credit is equal to 25% of the qualified capital improvement expenditures, up to $5 million. Qualified expenses can include anything related to acquiring, rehabilitating, repairing, or expanding theatrical facilities, including purchasing and installing new equipment. 

Get more information on the program here. 

Business tax exemptions in Ohio

Data Center Tax Exemption

Data centers in Ohio can receive an exemption for partial or full sales tax on purchases of eligible data center equipment, like server racks and backup generators. 

Ohio Enterprise Zone Program

Under Ohio’s Enterprise Zone Program, businesses in designated Enterprise Zones can get a tax exemption for investing in an approved economic development project. Think: establishing a new business facility, expanding an existing facility, renovating a facility, or repairing an unused facility for occupation. 

Eligible businesses can get a tax exemption on a portion of the value of their new real and personal property investment—as long as the project they invest in also creates new jobs. Get more details on the program here. 

Qualified Energy Project Tax Exemption

Businesses engaged in renewable energy projects can qualify for an exemption on the public utility tangible personal property tax. Learn more here. 

Ohio city and county tax incentives

Many Ohio cities run their own business tax incentive programs. Canton, for example, offers a Net Profit Tax Incentive and a Job Creation Incentive Program, while Columbus offers a Downtown Office Incentive and a Jobs Growth Incentive. 

Check out your city’s website to make sure you’re not missing out on any great local tax credits or incentives. 

Business financing in Ohio

Growing and sustaining a business requires all the help—aka capital—you can get. Fortunately, Ohio has dozens of state-run programs specifically designed for business owners to get ahead. For a full list, read through Gusto’s guide to business grants and loans in The Buckeye State.

Need help getting your operation up and running? Check out our concrete tips for starting a business in Ohio.  

Paige Smith Paige is a content marketing writer specializing in business, finance, and tech. She regularly writes for a number of B2B industry leaders, including fintech companies and small business lenders. See more of her work here:

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