Tax Abatement Program
Business Development Incentives
The Ohio Community Reinvestment Area
The Ohio Community Reinvestment Area program is an economic development tool administered by municipal and county government that provides real property tax exemptions for property owners who renovate existing or construct new buildings. Community Reinvestment Areas are areas of land in which property owners can receive tax incentives for investing in real property improvements. The program is delineated into two distinct categories, those created prior to July 1994 (“pre-1994”) and those created after the law changes went into effect after July 1994.
The Community Reinvestment Area (CRA) Program is a direct incentive tax exemption program benefiting property owners who renovate existing or construct new buildings. This program permits municipalities or counties to designate areas where investment has been discouraged as a CRA to encourage revitalization of the existing housing stock and the development of new structures. Tax Exemptions shall be granted only to commercial and/or industrial activities which result in the creation or maintenance of employment opportunities in the Village of Middlefield.
The Village of Middlefield administers a pre-1994 CRA and can determine the type of development to be supported by the CRA Program by specifying the eligibility of residential, commercial and/or industrial projects.
Exemption Levels Pre-July 1, 1994 CRA Post-July 1, 1994 CRA
Real Property Must be 100% Up to 100%
Personal Property None None
Inventory None None
Exemption Time Period
For the construction of every dwelling, commercial or industrial structure: 5 years for improvements of $200,000 to $1,000,000; 10 years for improvements of greater than $1,000,000.
For the remodeling of every dwelling containing no more than two family units: 3 years for improvements of $5,000 to $20,000; 6 years for improvements greater than $20,000.
For the remodeling of commercial or industrial properties: 3 years for improvements of $10,000 to $100,000; 6 years for improvements of greater than $100,000.
The purpose of the Job Creation Tax Credit (JCTC) is to encourage the development of jobs within the Village.
New or Existing Businesses within the Village Limits, who plan to create 25 new full time jobs (or equivalent) within 36 months. Wages must be 1.75 time the minimum wage and business must commit to maintaining its operations for at least 1 additional year for every year the tax credit is received.
Maximum credit of 50% of the municipal income tax withheld on qualifying new jobs. Maximum of 40% if applicant is also receiving a real estate property tax abatement. Credit is good for a maximum of 5 years.
More information on additional business development tax incentives can be found at the Ohio Development Services Agency’s website.