An Enterprise Zone is a geographic area within which special tax incentives may be offered, by contract, to businesses, which agree to invest in capital improvements and to create and/or retain jobs in that area.  The incentives take the form of real and/or personal property tax exemptions on eligible project assets.  The primary purpose of the Enterprise Zone is the stabilization and revitalization of, through investment in, industrial areas, thus spurring the creation and retention of jobs.

WHAT ARE THE BUSINESS BENEFITS?

Tax incentives encourage businesses to reinvest in plants and equipment, helping them to grow and remain competitive over the long-term, by exempting them from tax payments normally required by such an investment.  The benefits of tax incentives serve as the basis for a long-term relationship between the community and the business.

WHICH BUSINESSES ARE ELIGIBLE?

All for-profit enterprises located within or expanding into Hamilton’s Enterprise Zone, are eligible for local tax exemption if they agree to establish, expand, renovate or occupy a facility and retain and/or hire new employees.  The City of Hamilton may enter into an agreement with an enterprise after determining that the enterprise is qualified by financial responsibility and business experience to create and/or preserve employment opportunities in the enterprise zone and improve the city’s economic climate.

WHAT IS THE AMOUNT AND TERM OF THE EXEMPTION?

Because the City of Hamilton’s Enterprise Zone is designated as a full-authority zone, the City of Hamilton is permitted to grant tax exemptions for new real and/or personal property investment, for up to 100% of the new property tax for up to 15 years or an average of 60% over the term of the agreement.  A higher tax exemption may be reached if approved by the affected school board.  The City of Hamilton typically grants Enterprise Zone property tax exemptions for a time period roughly approximating the depreciable life of the asset(s) in question.  The percentage of property tax exempted will reflect the level of investment, and job opportunities created and/or retained.  Exemptions of a greater percentage may be considered in cases of significant local economic impact, including significant capital investment, major job creation, a stated commitment to hire all new employees from within the Enterprise Zone, or investment within the City’s “Sub-Zone.”

ARE THERE ANY ADDITIONAL BENEFITS?

An enterprise may be eligible to receive additional tax incentives from the State of Ohio, in accordance with an Enterprise Zone Agreement with the City of Hamilton.  Please inquire with the City of Hamilton Department of Economic Development. 

WHAT ARE THE REQUIREMENTS OF THE APPLICATION PROCESS? 

The business enterprise seeking tax exemption is required to file the necessary applications with the City of Hamilton Department of Economic Development, along with financial statements from the three previous years and projections for the three upcoming years.  As part of the application, the enterprise will be required to submit a brief employment plan, as well as other project documentation.  The application will then be reviewed by the City Administration, relative to the recommended incentive. This recommendation is forwarded to City Council, which authorizes the incentive agreement.