The City of Hamilton has a variety of economic development incentives for businesses looking to make investments in our community. Small business or large, the City of Hamilton wants to talk to you. In the case of large business investment, the City of Hamilton partners with JobsOhio to create an incentive package to fit the business needs.
The City of Hamilton does not have a specific one-size-fits all formula for incentives. Total jobs, total payroll, individual income tax collected, corporate income tax collected, geographic location of project, business sector, and potential multipliers in the local economy are the factors we look at. So please connect with us at 513-785-7070 or firstname.lastname@example.org. Follow the link here for a printable version of the City of Hamilton’s incentives.
Local Job Creation Tax Credit
The City of Hamilton Local Job Creation Tax Credit Program offers eligible companies a tax credit against their local corporate earnings tax. This program is similar to the Ohio Job Creation Tax Credit, with the exceptions that the tax credit is granted at the local level and it is a non-refundable credit. Final abatement value will be determined by the Butler County Auditor’s Office.
State Job Creation Tax Credit
The Job Creation Tax Credit is a refundable tax credit to companies generally creating at least 10 new jobs (within 3 years) with a minimum annual payroll of $660,000 that pay at least 150% of the federal minimum wage.
The City of Hamilton may grant property tax incentives to enterprises that agree to establish, expand, renovate, or occupy a facility within a 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.
The maximum allowable benefit to be extended to qualifying companies that does not require local school board approval is a 75%, 10-year real property tax exemption. Real property tax exemptions greater than 75%, 10 years, require local school board approval.
Enterprise Zone Example
Assumptions: 70,000 S/F building at $50 per S/F, total property investment $3.5 million, 75% tax abatement.
Total Possible Property Tax Abatement –
- Annual $54,384.92
- 10 Year Total $543,849.19
Community Reinvestment Area
The Community Reinvestment Area (CRA) provides property owners a tax exemption for investing in property improvements. The goal of the CRA is to incentivize revitalization where barriers to investment exist. The CRA tax exemption will be available for both residential and commercial development and can be utilized throughout Hamilton.
- New construction
- Building improvements
- Commercial or industrial
Applications will be considered on a case-by-case basis for investment dollar and job creation potential. Final exemption value is determined by the Butler County Auditor.
- Can be used for renovation
- The abatement is for ten years
- 0-24 year old structure Percent of New Value Exempt- 50%
- 25-49 year old structure Percent of New Value Exempt – 75%
- 50+ year old structure Percent of New Value Exempt – 100%
- The minimum new investment for residential projects is $5,000
Hamilton Utilities has partnered with Efficiency Smart to offer a comprehensive energy efficiency program to Hamilton utility customers. There is no cost to participate in the program. Efficiency Smart provides technical assistance and financial incentives, which allow for the implementation of energy-saving improvements to Hamilton’s homeowners, renters, small to medium-sized businesses, institutions, and large commercial and industrial customers. There are many components of Efficiency Smart that could help small businesses, including rebates for energy-efficient products and discounts on energy-efficient lighting. For more information, check out the website here. You can email email@example.com to set up an appointment or for more information.
Revolving Loan Funds
Brownfields Cleanup RLF
Use of Brownfields Cleanup Revolving Loan Fund (BCRLF) dollars is limited to sites that have an actual release or substantial threat of release of a “hazardous substance” into the environment. BCRLF funds may be used at sites that are either publicly owned, either directly by a municipality or indirectly through a quasi-public entity; or privately owned and
with clear means of recouping BCRLF expenditures.
The City of Hamilton’s Revolving Loan Fund (RLF) provides low interest loans for expansion projects by private, for-profit businesses occurring in Hamilton. Loans are made primarily for the purchase of machinery and equipment, although purchase, renovation and/or construction of buildings are also eligible.
Butler County Revolving Loan Fund
The Butler County Department of Development offers affordable financing through its Revolving Loan Fund. The minimum loan amount is $15,000 and typically requires a 10% down payment.
Utility Development Agreement
With municipally owned and operated utilities, the City of Hamilton is committed to working with your company from the beginning to ensure that service to the site is ample and will explore ways to control and lower utility costs as you grow.
Tax Increment Financing
Tax Increment Financing (TIF) is an economic development mechanism available to local governments in Ohio to finance public infrastructure improvements. A TIF works by locking in the taxable worth of real property at the value it holds at the time the authorizing legislation was approved.
Payments derived from the increased assessed value of any improvement to real property beyond that amount are directed towards a separate fund to finance the construction of public infrastructure defined within the TIF legislation. Hamilton has enacted legislation to utilize TIF financing and often works with potential development to allow parcels to
benefit from TIF financing.
Design Assistance Program
In order to encourage new businesses and the expansion of existing businesses in Hamilton, the Hamilton Department of Economic Development offers a Design Assistance Program. This program provides business owners interested in renovating existing buildings or in constructing new buildings with a grant that is worth up to 5% of the total project cost to be used for professional architectural/technical services. The design process typically provides the owner with some or all of the following:
- Floor plans showing existing and/or new construction
- Building facade improvements
- Preliminary building, zoning and safety code analysis
For more information, check out the Fact Sheet.
Butler County Port Authority
The BCPA provides alternative financing options for medium and large-scale projects in Butler County. The BCPA collaborates and partners with executives, economic development professionals, financial professionals, and the business community to encourage economic development in Butler County and Southwest Ohio. Ohio Revised Code Section 4582 provides the Butler County Port Authority with a number of tools to finance and manage projects in Ohio, including capital lease arrangements and sales tax exemption.
New Market Tax Credits (NMTC)
The goal of the program is to spur revitalization efforts of low-income and impoverished communities across the United States and Territories. The NMTC Program provides tax credit incentives to investors for equity investments in certified Community Development Entities, which invest in low-income communities. Much of Hamilton is qualified for this program.
State Historic Preservation Tax Credit
The State offers a 25% tax credit distributed on a competitive basis. The new downtown historic district will streamline the process.
Federal Historic Rehabilitation Tax Credit
The National Parks Service provides a 20% tax credit to all qualifying projects.
Companies interested in doing a project in Hamilton have access to many other programs, such as the Ohio GrowNow Program, the Ohio Enterprise Bond Fund, the Ohio Minority Business Direct Loan Program, the Regional 166 Direct Loan, the SBA 504 Loan, and. the 166 Direct Loan.