MARYSVILLE — Tax incentives granted to new and expanding Union County businesses have helped generate significant economic growth — including 6,275 new jobs, 3,811 retained jobs, nearly $258 million in employee earnings and about $464 million in facility and equipment investments — since the early 1990s.
These are the findings of a regional economic impact analysis recently conducted for Union County-Marysville Economic Development by Columbus 2020 and the Center for Regional Development of Bowling Green State University.
“Under Ohio law, tax incentives can be granted to businesses that commit to investing in new or expanded facilities and creating or retaining jobs,” explains Eric Phillips, Executive Director of the Union County Community Improvement Corporation.
“Results of the new study show that these tax incentives have been highly effective in strengthening the Union County economy and increasing employment,” Phillips adds. “In fact, the results show how the incentives have created a ripple effect, spreading business growth and job creation beyond the businesses that received the incentives.”
For instance, companies that supply expanding businesses also grew their operations and workforce to keep up with their customers’ increasing orders. Plus, other businesses started and grew to fill the needs of residents drawn to Union County by new jobs.
The regional economic impact study examined the effects of four tax incentive programs used in Union County:
• Enterprise Zone (EZ) program, which provides temporary real property tax abatements on facility improvements in a defined area of the county. Twenty EZ agreements have resulted in:
2,006 new jobs — 885 created by businesses entering EZ agreements (direct), 193 by suppliers (indirect), and 928 by other businesses to meet needs of new job holders and their families (induced)
3,679 retained jobs — 1,856 direct, 360 indirect and 1,463 induced
$122 million in annual payroll — $74.6 million direct, $7.8 million indirect and $39.6 million induced
$340.9 million total real and personal property investment — which exceeded the amount of investments pledged in the EZ agreements ($216.5 million) by $124.4 million
• Community Reinvestment Area (CRA) program, which provides real property tax incentives to residents and businesses that invest in designated areas of Union County. Ten CRA agreements have been established in the Uptown Marysville CRA since 2000. Several of these projects are currently under construction. Results include:
297 new jobs — 234 direct, nine indirect and 54 induced
$1.2 million in annual payroll — $356,000 direct, $146,000 indirect and $684,000 induced
$5.9 million total investment so far, on total pledged investment of $7.8 million. Once projects are complete, total investment is expected to exceed the pledged amount by $250,000.
The study does not include a 1979 CRA that granted tax incentives for Honda Motor Company’s investments to establish Union County manufacturing operations. Some of the project data could not be verified for the analysis. But since the agreement, Honda has invested more than $5 billion in facilities and created more than 8,000 jobs.
• Municipal Income Tax Credit (MITC), provided in Marysville to credit increased local income taxes created by adding jobs in an expansion or business start-up project. MITC agreements resulted in:
464 new jobs – 280 direct, 27 indirect and 157 induced
132 retained jobs — 83 direct, seven indirect and 42 induced
$42 million in annual payroll — $29.8 million direct, $1.8 million indirect and $10.3 million induced
Total investment of $8.3 million — about $2.3 million over the pledged investment of $6 million
• Tax Increment Financing (TIF), an economic development tool that allows taxes collected on increased property value that results from business expansion to be used for public infrastructure improvements that benefit properties in a TIF project. Three TIF projects included in the study include the Coleman’s Crossing/City Gate Project, Dublin Green project and Honda Heritage Center, which resulted in:
3,510 new jobs — 2,478 direct, 155 indirect and 877 induced
$92.5 million in annual payroll — $62.9 million direct, $4.7 million indirect and $24.9 million induced
“This study is clear validation of our decision to make tax incentives an economic development tool in Union County — to stimulate business growth, create and retain jobs, and further enhance the quality of life in our communities,” Phillips said.
To view the complete analysis, please visit: https://unioncounty.org/economic-development/ and click on the “Tax Incentive Analysis” link.
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