City of Salem
Tax Increment Financing (TIF) — 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.
CRA Tax Abatement — CRA is a tax abatement program for new construction, expansion, and remodeling. As a participant in the program you are eligible to receive up to a 15 year Tax Abatement on the “increased or improved value” of your real property. To Qualify for CRA work must be completed in eligible abatement areas, obtain a City of Salem Zoning Permit, complete the Tax Abatement Application and file it with the Zoning Department before December 15th of the year the project is completed.
Job Creation Incentive — The Job Creation Program can provide a yearly incentive for relocating jobs or creating net new jobs in the City. The term of the incentive can extend up to 5 years and can pay up to 55% of the annual City Withholding Tax back to the Employer. New Downtown jobs relocated or created in the City can pay back up to 100% in the first year!
Net Profit Tax Incentive — The Net Profit Tax Program can provide a yearly incentive for starting or relocating a business in the city by incenting up to 55% of the annual City Net Profit Tax based on the number of new employees added to the City. This incentive program can be extended for up to 5 years. New Downtown Businesses can receive up to 100% incentive in the first year!
Business Acquisition and Growth Incentive — The mission of the Business Acquisition & Growth Incentive is to sustain current jobs and promote the turn-around of at-risk business inside the City. The program can provide a yearly incentive for maintaining employment levels for 3 years or growing employment for up to 5 years. The incentive can pay up to 100% of the annual City Net Profit Tax based on the number of maintained employees or added employees to the city.
For more information on City of Salem Incentive programs, contact Julie Needs, SOD Center Executive Director at 330-337-7669 or execdir@sodcenter.com