Tax Abatement and Tax Credits
There are several programs available from the City of Middletown, the State of Ohio and the federal government that are designed to encourage business growth through tax abatement and tax credits. Several of the more widely-used programs are outlined below along with more detailed information in downloadable PDF documents.

The Ohio Enterprise Zone Program is designed as a way to encourage new investment in new, expanded or renovated commercial and industrial buildings. Projects must be determined to be eligible prior to granting any tax exemption through an Enterprise Zone Agreement.

Download a PDF document about this program.

The Job Creation Tax Credit (JCTC) Program provides a refundable tax credit against a company’s Ohio Commercial Activity Tax (CAT) or an individual’s Ohio personal income tax. The tax credit typically ranges from 50% to 75% for 5 to 10 years, and is granted by Ohio Job Creation Tax Credit Authority. A company must create at least 25 new full-time jobs to be eligible to receive the tax credit, which is based on the state income tax withheld from the new employees.

Download a PDF document about this program.

The Machinery and Equipment Sales Tax Credit programs provide for an exemption from the usual state and county sales tax for companies that purchase equipment for research and development, manufacturing, and/or warehousing activities. Vendors need to complete a blanket exemption certificate, available on-line at the Department of Taxation’s website.

The Federal Historic Preservation Tax Credit Program provides federal income-tax incentives for the rehabilitation of historic income-producing properties. The Illinois Historic Preservation Agency, Preservation Services division, administers it for Illinois properties. Under the provisions of the Tax Reform Act of 1986, a 20% tax credit is available for the substantial rehabilitation of commercial, agricultural, industrial, or rental residential buildings that are certified as historic. The credit may be subtracted directly from federal income taxes owed by the owner.

Download a PDF document about this program.

More information about these and other incentive programs is available by contacting the City of Middletown’s Economic Development Department at (513) 425-7847 or via .