Ohio Job Creation Tax Credit (JCTC)
Ohio Department of Development (ODOD)
25–75% of new-hire withholding
Ohio's refundable job creation tax credit
Ohio's primary discretionary job creation incentive — a refundable income tax credit awarded as a percentage of state income tax withheld from net new Ohio employees' wages over a credit period of 4–7 years. Unlike most state job credits, JCTC is refundable: companies receive a cash refund if the credit exceeds their Ohio tax liability, making it valuable even for startups and pass-throughs with limited Ohio tax. Requires competitive application and Ohio Tax Credit Authority board approval.
- Funding type
- Tax Credit
- Level
- State
- Amount
- Credit equals 25% to 75% of Ohio income tax withheld on wages of net new full-time Ohio employees, per year, for 4–7 years. Percentage and term are negotiated based on project size, wages, and location. A company adding 100 jobs at $75,000 average wages generates approximately $375,000 in annual Ohio withholding. At a 50% credit rate for 5 years, total JCTC value would be approximately $937,500.
- Realistic amount
- Typical JCTC agreements for companies adding 50–100 Ohio jobs at median wages yield total credits of $500K–$2M over the…
- Deadline
- Rolling — Ohio Tax Credit Authority meets regularly (approx. monthly); applications reviewed on a rolling basis.
- Status
- active
- States
- OH
- Payment model
- tax offset
Who qualifies
- Company must create a minimum of 10 net new full-time Ohio jobs (some projects require 25+ depending on circumstances)
- New jobs must pay at least 150% of the federal minimum wage (currently approximately $10.88/hour or ~$22,000/year) — in practice ODOD targets projects at or above county median wages
- Company must commit to a minimum Ohio capital investment (amount varies by project; ODOD looks for significant investment as evidence of long-term commitment)
- Project must demonstrate the 'but for' test — without the JCTC, the company would not create the jobs in Ohio or would locate elsewhere
- Application must be filed BEFORE the company commits to Ohio (retroactive applications are not accepted)
- Credit is available to C-corps, S-corps, partnerships, LLCs, and other entities with Ohio withholding obligations
What it covers
Eligible expenses
- JCTC is a withholding-based refundable tax credit — no restriction on underlying business expenses
- Net new full-time Ohio jobs (35+ hours/week) with Ohio withholding
- Capital investment in Ohio facilities, equipment, and infrastructure accompanying the job creation
Ineligible expenses
- Jobs transferred from existing Ohio locations do not count as net new
- Part-time and seasonal positions do not qualify
- Jobs paying below the minimum wage floor (~150% of federal minimum)
- Federal taxes are unaffected
- Applications filed after the company has already committed to Ohio — must apply before commitment
How to apply
-
1
Contact ODOD and submit project inquiry
Contact the Ohio Department of Development's Business Development team with an overview of the project — job count, wages, capital investment, and timeline. ODOD assigns a project manager and advises on credit rate and term feasibility before a formal application.
~4 hrs
-
2
Submit JCTC application
Complete the JCTC application via the Ohio Business Grants portal. Required information includes company financials, detailed job-creation projections (titles, wages, dates), capital investment plan, Ohio county and municipality of project, and a 'but for' certification signed by a company officer.
~20 hrs
-
3
ODOD review and negotiation
ODOD staff review the application and negotiate the credit percentage (25–75%) and term (4–7 years) based on total economic impact, wage levels, and project location. Staff present recommended terms to the Ohio Tax Credit Authority.
~0 hrs
-
4
Ohio Tax Credit Authority board approval
ODOD presents the project to the Ohio Tax Credit Authority (an appointed board meeting monthly) for public approval. Board votes on the proposed credit percentage and term. Companies may present at the meeting.
~3 hrs
-
5
Execute credit agreement and create jobs
Sign the JCTC agreement specifying annual job and wage milestones. Begin hiring. ODOD conducts annual compliance reviews and verifies job counts and wages each year.
~4 hrs
-
6
Annual reporting and credit claiming
File annual JCTC report with ODOD documenting job counts and wages. ODOD certifies the credit amount. Claim the refundable credit on Ohio commercial activity tax return or income tax return — if credit exceeds Ohio liability, receive cash refund from Ohio DOR.
~6 hrs
The refundability is the key differentiator — Ohio JCTC pays out even if you don't owe Ohio income tax, making it genuinely valuable for startups and fast-growing pass-through entities. Apply before you commit to Ohio — the 'commitment date' rule is strictly enforced. Engaging ODOD early (before the site-selection decision is finalized) is both required and tends to yield better negotiated terms.
Deadline & timing
Applications must be submitted and approved before the project's 'commitment date' (when the company formally commits to the Ohio location). ODOD recommends engaging early in the site-selection process — typically 3–6 months before a final decision. Ohio Tax Credit Authority board approval is required and is a formal public meeting.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.