KNOWLEDGE
CENTER :: Ohio's Fiscal Perks Meant to Encourage Growth
Reported b yMarsha Powers
Gazette 6/11/2007
In an effort to continue to build the state’s advanced manufacturing
and materials; power and propulsion; instruments, controls and electronics;
bioscience; and information technology sectors, the Ohio Department
of Development Technology Division continues to offer the following
programs and incentives to qualified companies:
Innovation
Ohio Loan Fund: This program was developed
to assist established companies, with at least two years of revenue,
in funding next-generation products and services within targeted
industry sectors by financing acquisition, construction, equipment,
facilities and related costs of technology.
These companies may have difficulty getting financing through conventional
sources due to technical and commercial risk factors associated with
the development of a new product or service. The Innovation Ohio
fund can finance up to 75% of a project’s allowable costs up to a maximum of $5 million.
Pre-Seed
Funds: The state has established more
than 30 professionally managed venture capital funds and services
such as JumpStart, Glengary LLC, North Coast Angel Fund, ARCHAngel
Network, Great Lakes Innovation and Development Enterprise and the
Entrepreneurial Signature Program to accelerate growth of early stage
Ohio technology companies. Fund awards typically range from $50,000
to $400,000.
Third Frontier Internship Program: Businesses
in the targeted areas can receive up to $3,000 per year, per employee
for student internships, and $2,000 total for educator training.
The Entrepreneurial Signature Program is developing a similar program,
which may be ready in the next two months
Ohio Capital
Access Program: This program
is designed to encourage state-chartered financial institutions to
make loans to for-profit and non-profit small businesses that are
having difficulty obtaining business loans through conventional underwriting
requirements.
Ohio Research
Commercialization Grant Program: This program grants up
to $350,000 to improve the ability of small technology companies
to bring their products or services to market. Businesses must successfully
complete commercial viability research and development studies that
meet federal agency mission needs through the Small Business Innovation
Research, Small Business Technology Transfer or Advanced Technology
Program research and development projects.
Technology Investment Tax Credit: This
program makes available to entities an Ohio tax credit of up to 25%
for a maximum of $1.5 million invested in qualified technology companies.
Qualifying businesses must have less than $2.5 million in gross revenue
or net book value in the last fiscal year. At least 50% of the company’s employees and assets must be
in Ohio.
Job Creation Tax Credit: To encourage
business expansions and relocations to Ohio, state income or franchise
tax credits have been created. The creation of as few as 10 new full-time
positions that pay 400% of the federal minimum wage may be eligible.
Edison Technology Incubators: Five of the 11
Edison Technology Incubators are located in Northeast Ohio. These facilities
provide a full suite of business assistance services for technology-based early-stage
businesses. Services include financial, legal, accounting, marketing and business
planning advice, access to scientific, technical and business student interns,
industry-specific office and laboratory equipment and facilities.
Research and development loan fund, research and development
tax credit: The state is currently developing a research and development
loan program ranging from $5 million and up with a companion research and development
tax credit program. Both should be launched later this year.
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