Multinational companies choose Ohio because it simply makes sense. We offer easy access to markets, historically low taxes and business-friendly political leadership throughout the state. Ohio encourages active trade discussions, business development partnerships and investment from businesses based outside the United States.
Why Ohio is the top location for you business
Why Invest in Ohio
The world has found a place to invest.
Companies from at least 42 countries have made investments in Ohio. Our global efforts are focused on pursuing markets that most closely match Ohio's industry and technology strengths. Ohio's greatest strength lies in broad-based manufacturing which includes automotive, aerospace, and advanced materials. Japan and Germany are the top global markets to attract this type of investment.
Six countries comprise 77% of total international employment.
The most employees in Ohio companies come from Japan, followed by Germany, United Kingdom, Canada, France, and Switzerland.
The automotive sector drives employment.
The motor vehicle industry comprises the largest segment of foreign employment in Ohio.
Honda is Ohio's largest foreign employer.
Honda's operations in Ohio have been running smoothly for decades. Today, many of the automaker's top sellers are build in Ohio, including the Accord Coupe and the Acura TL and RDX. Honda employs nearly 14,000 workers here.
Others thrive here as well.
After Honda, the top four global companies in Ohio are Aldi (Germany, employing 6,000 people), Canada's Alimentation Couch-Tard (more than 4,000 workers), Bridgestone (Japan, 3,000 employed) and Reed Elsevier (U.K./Netherlands, 2,500 workers).
Access to Markets
Ohio offers an efficient and internationally recognized infrastructure that moves products, materials and data around the world. Our central location keeps your business within reach of profitable markets and lowers your cost of doing business.
But Ohio doesn't rely on geography alone to drive business relocation and expansion. As a U.S. and international manufacturing leader, we've invested heavily in world-class systems for transportation, data and domestic and international export.
As a result, more than 1,000 internationally owned companies from more than 25 countries depend on Ohio's easy market access and established supply chains, including Honda, Bridgestone, Hitachi, Mitsubishi, Chrysler, Rolls-Royce, Mettler-Toledo and Nestle. Ohio exports now exceed $40 billion a year and continue to grow.
Ohio's commitment to market access across industries has resulted in four consecutive Governor's Cup Awards, bestowed by Site Selection magazine. These awards and the state's continued efforts to improve the strength of its logistics infrastructure demonstrate our success in welcoming new business.
We're close to huge populations and capacity.
Geographically, Ohio is within 600 miles of more than half the U.S. and Canadian populations and a day's drive from more than 70 percent of North America's manufacturing capacity, so your company gets easy, affordable access to supply chains and customers.
Ohio offers fast, versatile transportation.
Our world-class transportation system includes eight interstate highways, five international airports, and some of the world's largest public and private airports dedicated solely to cargo shipment. We host the fourth-highest rail freight traffic in the U.S. and 25 ports and terminals on 700 miles of navigable waterways leading to the Gulf of Mexico and the Saint Lawrence Seaway.
We're an unbeatable warehousing option.
Ohio is a national leader in key logistics-related categories: It ranks third in the U.S. in manufacturing—leading all Midwest states—and is in the top five for warehousing and storage as well as value of goods shipped by any method and by truck alone.
Our export industry just keeps growing.
As the only state in the nation to see an increase in exports every year since 1998, Ohio's exports are the seventh largest in the United States. More than 11,000 Ohio-based companies sell their products internationally, aided by ten Foreign Trade Zones offering duty-free, quota-free secured sites that let them keep overhead costs in check.
Ohio's competitive, award-winning investment environment makes it easier for startups and established companies to land here with solid financial footing. We've cultivated a unique funding ecosystem that brings together a full range of capital and services—public funding programs such as Ohio Third Frontier, low-interest loans and grants, tax incentives and venture capital—that align perfectly with an expanding company's financial needs.
Ohio's business climate has noticeably warmed as a result: Ohio has placed in the top four among all 50 states as ranked by Site Selection magazine each of the last eight years. According to the nationally recognized "Pollina Top 10 Pro-Business States" report in 2010, Ohio ranked 8th in the U.S. for factors related to economic development and the quality of its financial incentives.
Tax benefits in Ohio
Ohio won't tax your profits.
We've eliminated corporate income and franchise taxes. Zero tax on corporate income means reduced operating costs and enhanced profit margins for your business.
No taxes on new machinery and equipment.
We want your profits to soar, so when you invest in greater productivity, your business will have zero tax liability surrounding that investment.
Zero tax burden on inventory.
Operating costs can drop significantly as a result of Ohio's inventory tax policy. If your business holds inventory in Ohio, it's completely tax free.
Don't pay tax on out-of-state sales.
Ohio doesn't impose a tax on goods or services sold outside of our state. If you ship 100% of your product outside of Ohio, your Commercial Activities Tax (CAT) is zero.
Start a business, get huge benefits.
Entrepreneurs will love this: Your first $1 million in gross receipts can be tax-free in Ohio.
Our flat tax is easier.
Flat tax paid if your sales are between $150,000 and $1 million.
Job Creation Tax Credit
The Job Creation Tax Credit is a refundable tax credit to companies generally creating at least 10 new jobs (within three years) with a minimum annual payroll of $660,000 that pay at least 150percent of the federal minimum wage. The tax credit is measured as a percentage of the state income tax withholdings for all new employees hired under the program, and is applied toward the company's commercial activity tax liability. Should the amount of the credit exceed the company's commercial activity tax liability for any given year, the difference is refunded. A business must apply for the credit before committing to the project. Applicants must be approved through the Ohio Tax Credit Authority before hiring begins.
Ohio Enterprise Zone Program
The Ohio Enterprise Zone Program provides real property tax incentives for businesses that expand or relocate in Ohio. To establish an Enterprise Zone, a municipality or county must apply to the Director of Development for certification. To secure benefits, businesses must apply to the local community. Certain qualifying businesses may be eligible for additional benefits.
Community Reinvestment Areas
The Community Reinvestment Areas provide companies locating in a designated Community Reinvestment Area an exemption of up to 100 percent of improvement value for up to 15 years on real property taxes. To be eligible, a company must make an agreement with the local community prior to going forward with the qualifying project.
Research and Development Investment Loan
The Research and Development Investment Loan Fund provides loan financing between $500,000 and $5 million for projects primarily engaging in research and development activity. Rates are fixed (at- or below-market rates) with other loan terms similar to those of commercial bank financing. Companies receive a dollar-for-dollar, non- refundable Ohio commercial activity tax credit for principal and interest payments made during the year up to $150,000 during the loan term.
Research and Development Investment Tax Credit
The Research and Development Investment Tax Credit provides a non-refundable tax credit up to seven percent for qualified research and development expenses. Qualifying expenses fit into two categories: in-house research expenses, and contracted research expenses. Any unused portion of a tax credit may be carried forward for up to seven years.
Ohio Enterprise Bond Fund
The Ohio Enterprise Bond Fund provides revenue bond financing through an S&P rated fund, whereby proceeds from the sale of bonds are loaned to companies for fixed-rate, long-term capital asset financing. Rates are market-driven and fixed prior to funding. Loan terms range between 7 to 10 years for equipment and 15 to 20 years for real estate. Up to $10 million in financing is available through the program.
166 Direct Loan
The 166 Direct Loan provides loans for land and building acquisition, construction, expansion, or renovation, and equipment purchases for eligible businesses. The program provides low-interest loans up to 40 percent not to exceed $1.5 million.
Regional 166 Direct Loan
The Regional 166 Direct Loan provides loans for land and building acquisition, construction, expansion, or renovation, and equipment purchases for eligible businesses. Regional economic development agencies administer the program. It provides low-interest loans up to 75 percent collateral value, not to exceed $500,000.
Innovation Ohio Loan Fund
The Innovation Ohio Loan Fund provides loans for acquisition, construction, and related capital costs of technology, facilities, and equipment purchases. The fund was created to assist existing Ohio companies in developing next-generation products and services within the state's Industry Sectors up to 75 percent ranging from $500,000 to $1.5 million.
Roadwork Development (629) funds are available for public roadway improvements, including engineering and design costs. Funds are available for projects primarily involving manufacturing, research and development, high technology, corporate headquarters, and distribution activity. Projects must create or retain jobs. Grants are reimbursable and provided to a local jurisdiction and require local participation.
Workforce Training Grant
The Workforce Training Grant supports companies that are making investments in facilities, equipment, and training that result in the retention and creation of jobs for Ohioans. The program provides reimburasable financial support to employers for training, paying for a portion of instructor salaries, materials, travel, and special needs.
Clean Ohio Revitalization Fund
The Clean Ohio Revitalization Fund is a key financial component to helping a community build economic capacity by providing funding for brownfield redevelopment. Brownfield redevelopment allows a community to reclaim and improve its lands, making property viable for new development. Grants are made through a competitive process that includes local evaluation.
Brownfield Revolving Loan Fund
The Brownfield Revolving Loan Fund, Ohio offers this program that offers below market rate loans to assist with the remediation of a brownfield property to return the property to a productive economic use in the community.
Volume Cap provides a federal tax benefit by allowing eligible issuers to issue tax exempt Private Activity Bonds up to a state limit known as the "Volume Cap." The State of Ohio's allocation of Volume Cap is determined annually by the Internal Revenue Service on a per capita basis, and may be used for projects consisting of multi-family housing, single-family housing, exempt facilities, manufacturing, and student loan bonds.
What We Can Do To Help You
Top Ohio sectors
Advanced Manufacturing http://jobs-ohio.com/manufacturing/
Financial Services http://jobs-ohio.com/financial/
Food Processing http://jobs-ohio.com/food/
Business incentives, loans and tax credits
Ohio site location tool