Eklund Bill Seeks To Encourage Community Investment
Extends Enterprise Zone Deadline
April 3, 2012
State Senator John Eklund (R- Munson Township) introduced legislation to extend the certification deadline for local governments who want to qualify for a state program geared toward attracting new jobs through new business tax incentives.
The Ohio Enterprise Zone is not part of the traditional zoning program, which limits the use of land; instead it allows local officials to negotiate with businesses to encourage new business investment.
"As our economic recovery continues, it is important that we use every resource at our disposal to attract and retain jobs," Eklund said. "Extending Ohio's enterprise zone law will enable our communities to continue to offer these incentives to employers looking to grow and expand their companies."
With this program, communities can become more competitive in attracting new industry as well as targeting the type of business it wants. Attracting new investment will not only provide new employment opportunities, it can also increase local tax revenues.
Businesses benefit from the offset of the high costs of business start-up activities. Such incentives help provide a competitive advantage for Ohio sites and businesses can reinvest in their facilities and equipment, helping them grow and remain competitive in the long term.
Communities seeking to create an enterprise zone submit a petition to the Ohio Department of Development detailing the geographic boundaries of the zone, population requirements and other information. Once the zone is certified, local officials can then develop incentive agreements with businesses that invest in the zone. Companies must meet certain qualifications and make significant investments in property, land, machinery or equipment in order to apply for tax incentives in the enterprise zone.
Senate Bill 320 will next be assigned to a Senate committee for further consideration.