Ohio Handing Out More Tax Incentives To Companies Promising Jobs

Daryl Hennessy, the Ohio Development Services Agency's Business Services Division chief, says tax credit benefits outweigh the cost in every instance.(Photo: Flickr)
Daryl Hennessy, the Ohio Development Services Agency's Business Services Division chief, says tax credit benefits outweigh the cost in every instance.(Photo: Flickr)

An Ohio Department of Taxation report finds that since 2012 the amount of tax credits granted to businesses promising to create and retain jobs has been going up.

The report finds the value of the incentives grew from $56 million that year to $63 million last year to an estimated $65 million in the fiscal year that began July 1.

Ohio businesses increased their payrolls by 43,100 jobs last year at the same time more tax revenue was foregone.

Daryl Hennessy, the Ohio Development Services Agency’s Business Services Division chief, says tax credit benefits outweigh the cost in every instance.

Doug Moorman, vice president of Cincinnati-based Development Strategies Group LLC, says incentives help Ohio compete with states with no income tax.

Comments
  • flatrock

    And by providing those tax breaks Ohio has helped attract more jobs to the state, and kept more businesses from sending jobs elsewhere where the cost of doing business is less.

    This means less taxes spent on unemployment and other services to the unemployed and underemployed. This means more people earning taxable income in the state. This means more money being spent in the state, which generates sales tax revenues, and generates income for other people and businesses, which in turn generates tax revenues.

    These tax breaks end up generating more tax revenues for the state overall rather than less.

  • Bob Kroshefsky

    I’d like to see a line-by-line comparison of the tax incentive offered as compared to the payroll created or increased. The, one can see how much bang the state is getting for its bucks. Simply talking about the number of jobs is not quite enough detail.

  • Ohio Willy

    It’s about shifting the tax burden from the rich to the poor. Cut income tax for the highest erners add 60 cents to cigarettes. Inheritance tax is the evil death tax. But its ok to tax low wage erners.