With the approval of local authorities, the Hamilton County Commissioners may grant tax incentives to non-retail enterprises that agree to establish, expand, renovate, or occupy a facility within a county-designated enterprise zone and agree to retain or create employment at the project’s location. A business must finalize an agreement prior to project commencement.
Businesses may receive substantial tax reductions on real property investments. The amount of the tax exemption is negotiated on an individual project basis and varies according to the size of the investment and the number of jobs created or retained. Additional incentives are available for substantial environmental remediation.
Local businesses that are expanding or locating in Hamilton County. Investments that may be eligible include improvements to real property (buildings).
Note: The cost of acquisition of land and/or buildings is NOT eligible for exemption.
Up to 75 percent exemption in incorporated areas and up to 60 percent in unincorporated areas on real property improvements for up to 10 years. Local school board approval is required to exceed these limits. Additional state franchise or income tax incentives are available. The Enterprise Zone agreement must be in place before the project begins.
To secure benefits, non-retail businesses need to apply to HCDC, Inc. for local property tax exemptions. HCDC also coordinates efforts with the State Development Director for state tax credits and tax incentives, as well as establishing new zones for certification.
A $1,500 application fee is due upon submission to HCDC. Upon execution of an enterprise zone agreement, a monitoring fee at the greater of one percent (1%) of the dollar value of incentives offered under the Agreement or $500, up to a maximum of $2,500, for each year during the term of the agreement shall be paid to HCDC annually.
A second tier of incentives are available to manufacturers who are in compliance with an existing enterprise zone agreement and can document hiring 25% of their new employees from five defined categories (e.g., unemployed). Upon application, the state may certify a business as eligible for this commercial activity tax credit for up to four (4) consecutive years. Benefits include exemption of enterprise zone project assets from the company’s asset of income-based tax calculation; reduction of the payroll numerator for wages paid to the 25 percent “disadvantaged” new hires; and credits for daycare of training associated with these new hires.
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