Columbus, OH - Rep. Michael Stinziano (D-Columbus) will soon introduce legislation promoting job creation in Ohio for businesses locating in Start-Up Zones, exempting new companies and their employees from paying state taxes for 10 years if the company is located in a university community and creates new jobs.
Businesses locating in these zones affiliated with public and private universities, colleges, and community colleges, can operate 100% tax free for 10 years, paying no income tax, no business or corporate state or local taxes, no sales tax, no property tax, and no franchise fees.
The legislation, specifically aimed at creating and attracting technologically sophisticated companies to Ohio while also keeping Ohio college graduates in Ohio, is modeled after New York Gov. Andrew Cuomo’s successful “Start-Up New York” initiative.
“Start-Up New York” has transformed SUNY campuses and other university communities across the state into tax-free communities for new and expanding businesses. In June, New York officials announced that twelve businesses will be opening or relocating to New York because of the program. The New York governor’s office expects these new businesses to bring in $50 million and as many as 400 new jobs as a direct result of “Start-Up New York.”
“With 135 colleges and universities throughout Ohio, I am confident that we have the ideal environment for this program,” Rep. Stinziano said. “In my district alone there are seven college campuses. This is an excellent opportunity to encourage growth and investment for companies that may not be eligible for other incentives the State of Ohio offers to businesses. I anticipate that campuses and companies will be able to foster a positive, mutual relationship in these new communities based on training and degree planning opportunities for students and a skilled, work-ready pool of job candidates for the companies. Ohio will reap the benefits of this program.”
Ohio would join New York in this tax-free zone initiative for companies locating businesses near campuses and Rhode Island which is currently considering similar legislation.
Following introduction, the bill will be assigned to a House committee for further review.