ZANESVILLE — Ohio’s Job Creation Tax Credit Program was one factor in two different companies’ recent decisions to bring new facilities to the area.
As reported in a brief in Tuesday’s Times-Recorder, Gov. Mike DeWine announced Monday the approval of assistance for two projects in the county — AMG Vanadium and United Candle in Norwich. The Ohio Tax Credit Authority approved AMG for a 1.477%, eight-year Job Creation Tax Credit and approved United Candle for a .824%, six-year Job Creation Tax Credit.
United Candle previously operated in New Jersey and purchased Luma-Lite’s machinery in Norwich in late March. The company was strongly considering moving the machinery to its existing facility in New Jersey, but decided to move to Norwich after considering Ohio’s incentives, such as the tax credit program.
The Ohio Development Services Agency website said the credit is given annually for the term of the agreement and provides a refundable tax credit against a taxpayer’s Commercial Activity Tax, insurance premium tax, Ohio corporate franchise tax or an individual’s Ohio personal income tax obligations.
This credit may be granted to businesses creating at least 10 new jobs within three years with a minimum annual payroll of $660,000 that pays at least 150% of federal minimum wage, according to Ohio DSA’s site. A press release sent by the governor’s office Monday said United Candle expects to create 100 jobs, generating $4 million in new annual payroll with the Norwich facility. Following the initial transition, company President Avery Engel said it expects to bring closer to three times that number of jobs.
The company leased Luma-Lite’s building following its decision and Engel said United Candle should complete its transition from New Jersey to Ohio by the end of August.
“It’s exciting, it’s challenging, it’s somewhat overwhelming, highly fulfilling,” Engel said. “We’re up for the challenge.”
As for AMG Vanadium, it signed a purchase agreement with the Port Authority last month for 154 acres of land at the Eastpointe Business Park. The company will conduct a groundbreaking ceremony for the new facility August 8 at 10 a.m.
AMG Vanadium President Hoy Frakes said his company considered other locations as far away as Germany and Canada for its new site. However, this tax credit program and AMG’s relationship with the state of Ohio, along with other factors, attracted the company to Muskingum County.
“It certainly did have a big compliment on the overall viablility of the project,” he said.
The governor’s office release said AMG expects to create 102 full-time positions, generating $5.4 million in new annual payroll with its new facility.
“This is a big project for us so there’s a lot of excitement,” Frakes said.
From the Zanesville Times Recorder | July 30, 2019
