Job Growth Incentive Program
When a company pays more in income tax, one of these things has occurred:
1. Additional employees have been hired;
2. Current employees are working more hours;
3. Current employees are earning higher wages; or,
4. The company is new to Avon Lake.
Avon Lake fosters these things by sharing in the success with the company. The Job Growth Incentive Program is very simple in its operation. It provides an incentive to each business* in the City of Avon Lake, regardless of size, in the amount of 35% of the additional income tax paid as compared to the previous year.
For example, assume that in 2021 the employees of Company X paid $10,000 in income tax to Avon Lake. Demand skyrocketed the next year and they doubled their workforce. In 2022 they pay $20,000 in income tax, resulting in an additional $10,000 to the City. The City would then return 35% of that increased amount, or $3,500, as an incentive to remain in Avon Lake and further grow its jobs. Further assume that in 2023, Company X pays $22,000 in income tax, or $2,000 over the previous year (2022). Company X’s incentive would be $700 (35% of $2,000). However, should Company X pay $20,000 or less in 2023, no incentive would be provided. For a new business to Avon Lake, their first year’s income tax payments would be compared to $0 the year before, so they can expect 35% of those payments back.
* home-based businesses do not qualify; maximum annual benefit is $50,000 per business.
CRA Tax Abatement
Avon Lake utilizes Ohio’s Community Reinvestment Area (CRA) program for tax abatements in order to incentivize development and investment in the City. This program involves real estate tax exemptions for constructing new buildings or substantial renovation to existing buildings. If you are undertaking either of these types of projects, and you are interested in a tax abatement under the CRA program, please contact Ted Esborn, Economic Development Director, at 440-930-4167 or TEsborn@avonlake.org.
Community Improvement Corporation
The Avon Lake Community Improvement Corporation (CIC) provides funding and advisory services to the citizens and businesses of Avon Lake, Ohio to advance and promote economic growth. For more information contact Ted Esborn, Economic Development Director, at 440-930-4167 or TEsborn@avonlake.org
Port Authority Construction Financing
The City of Avon Lake, in partnership with the Lorain Port Authority, can assist qualified developers and business owners to receive a sales tax exemption on all construction materials related to the project by having the Port Authority lease the facility to the company. This works best for projects costing $10 million or more. The borrower is the owner for federal tax purposes and acquires the project for $1.00 at the end of the lease term. The borrower retains full control of the property.