Enterprise Zone Administration
One of the ways WCDC can help your community foster the conditions that help small businesses succeed is through the creation of an Enterprise Zone. Once certified by the state, these zones provide substantial tax incentives for existing businesses to expand within your community or for new business to move into it. Click on the questions below to learn more about how Enterprise Zones work:
What are the tax benefits of an Enterprise Zone?
Businesses located within an enterprise zone are eligible for substantial tax reductions of up to 75% on new real property investments for up to 10 years. Local school board approval is required to exceed or extend those maximum rates or terms. (back to top)
Is my business eligible to operate within an Enterprise Zone?
While Enterprise Zones are established at the state level, they are administered locally. Local officials are given considerable flexibility to decide what types of businesses are eligible, but they must be involved in manufacturing, make a substantial investment in real property, and meet certain job creation/retention guidelines. Eligible projects must also establish a new business, expand an existing facility, renovate an existing facility, or occupy a vacant facility. (back to top)
Is my community eligible to create an Enterprise Zone?
For an area to be designated an Enterprise Zone, it must be appropriate for business development, have a single continuous boundary, and meet certain population requirements. Qualifying areas must then be designated either Distress Based or Non-Distress Based. (back to top)
What is the difference between Distress Based and Non-Distress Based?
There are two types of Enterprise Zones: Distress Based (Full Authority) and Non-Distress Based (Limited Authority). Distress Based Enterprise Zones must meet certain criteria related to income levels and population. The main difference between the two types of zones is that communities that administer a Non-Distress Based (Limited Authority) zone may not enter into agreements involving intrastate relocations without a waiver from the Department of Development. (back to top)
What is the process for creating an Enterprise Zone?
Eligible counties or municipalities must apply to the Ohio Department of Development for certification. WCDC can help you with the application process. Contact us to get started. (back to top)
Can an existing Enterprise Zone agreement be amended or assigned?
Yes. To modify an agreement, all parties involved in the original agreement, or to which the agreement will be assigned, must approve the changes. WCDC can assist you in this process. (back to top)
Can a business relocate from one Enterprise Zone to another?
If a business relocates or discontinues operations prior to the expiration of an Enterprise Zone agreement, it must wait 5 years before entering into any new agreements. However, businesses seeking to relocate may request a waiver from the Ohio Department of Development. WCDC can help you obtain that waiver. (back to top)
We already have an Enterprise Zone and a business located within it wants to double the size of their facility. Are they eligible?
Yes. The business expansion of real property is eligible for substantial tax reductions. An application for the tax reductions must be processed and approved by the local community in order to award the abatement. WCDC can help you with the process. Contact us to get started. (back to top)
What happens if an Enterprise Zone is annexed into a Non-Enterprise Zone?
In the event an Enterprise Zone is annexed into another municipality, it is the responsibility of the new controlling authority to petition for Enterprise Zone status. WCDC can assist you in this process. (back to top)