The City of Hamilton Local Job Creation Tax Credit Program offers
eligible companies a tax credit against their local corporate earnings
tax. This program is similar to the Ohio Job Creation Tax Credit, with
the exceptions that the tax credit is granted at the local level and
it is a non-refundable credit. The program is only available to
municipalities which collect a local income/earnings tax.
Terms of Credit
In practice, the City grants a non-refundable tax credit of a
specified percentage for a given number of years (up to 10). This is a
credit against the company’s local corporate earnings tax. The amount
of the credit is based upon the amount of tax withholding of City
personal income tax on the new employees.
Eligible Businesses
Currently, by State law, eligibility for this credit is dependent upon
the State of Ohio granting a tax credit through the Ohio Job Creation
Tax Credit Program. The average wage of the new employees must be
greater than 150% of the current federal minimum wage ($7.73 in 2004).
The City has historically agreed to allow a credit of equal percentage
and duration to the State approved credit.
