(a) The mission of the Job Creation Incentive Program (JCIP) is to expand the tax base of the City of Salem by creating jobs within the City and making the City competitive within the State of Ohio and the region.
(b) The City of Salem shall provide a yearly incentive payment to a business based on the employee's City income tax withholdings.
A business must relocate new jobs to the City of Salem or create "net new jobs." The term of this incentive shall not exceed five (5) years and shall be reviewed annually to determine continuation or termination.
(c) Retention and expansion by existing City of Salem businesses must show a significant capital investment satisfactory to the Program Oversight Committee. Expansion projects may qualify for the Job Creation Incentive Program based on retaining their current level of employment at the time the application is approved. Only "net new jobs" will qualify for this incentive.
(d) Basic Eligibility Requirements.
(1) Eligible businesses include new or existing business within the City of Salem whose employment results in a positive aggregate effect on employment in the City of Salem as determined by the Program Oversight Committee.
(2) Eligible businesses must create or relocate "net new jobs" pursuant to the following guidelines:
# of Jobs | Withholding Tax Incentive Payment |
4 to 6 | 35% |
7 to 9 | 45% |
10+ | 55% |
For Downtown (C 3)- year 1-100%, year 2-75%, year 3-50%, last two (2) years per tier table above.
(3) "Net new jobs" must be from new or existing businesses relocating or expanding within the City of Salem.
(4) Applicant must apply for the incentive prior to, or within twelve (12) months of expanding the business, signing a lease, constructing a new facility, purchasing a building or incorporating within the City of Salem.
(5) If total head count at reporting period is less than or equal to total head count at application, or if total tax collections for the tax paying entity at reporting period is determined to be less than or equal to total tax collections at application, a business may be deemed to lose eligibility for continuance in the JCIP. The test figures for this determination will be provided by the Program Oversight Committee at application reference to City Council.
(Ord. 210119-01. Passed 1-19-21.)