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Ohio Approves Job Creation Tax Credits for 11 Expanding Companies

COLUMBUS, Ohio (October 3, 2006) — The Job Creation Tax Credit is a refundable tax credit against the business corporate franchise or income tax.

  [ 10/3/2006 ]  By: NEWS BRIEFS   Print This Article  Reprint/License This Article  E-mail This Article To A Friend  
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The Ohio Tax Credit Authority recently approved Job Creation Tax Credits for 11 companies involved in business location or expansion projects that, if located in Ohio, are expected to create 966 jobs and retain 1,184 positions.

Butler Animal Health Supply, LLC, located in Dublin (Franklin County), has been awarded a 45 percent tax credit for a five-year term to expand of its current headquarters facility. The value of the tax credit is estimated at $94,992 over the term, and the company would be required to maintain operations at the project site for 10 years.

Butler Animal Health was founded in 1953 as The Butler Company and became Butler Animal Health Supply in 2002 when it acquired DVM Manager, a veterinary practice management software company. Butler Animal Health is now a leading distributor of companion animal health supplies to veterinarians, serving over 29,000 veterinary clinics in all 50 states and distributing over 15,000 products. The company maintains 15 distribution centers and eight telecenters nationwide and employs 672 people globally.

The company proposes to expand its current facility to be used as the headquarters for its animal health supply operation. Ohio is in competition with Kentucky and Iowa for this more than $560,000 project, which is expected to create 30 jobs and retain 120 positions within the first three years of the project's initial operations.

Abbott's Ross Products Division, located in Columbus (Franklin County), has been awarded a 50 percent tax credit for a seven-year term to expand its current facility with the creation of a new production line. The value of the tax credit is estimated at $235,931 over the term, and the company would be required to maintain operations at the project site for 14 years.

Abbott is a publicly traded company with its corporate headquarters in Illinois. The Ross Products Division facility has been located in the city of Columbus since 1903. Ross Laboratories was purchased by Abbott in 1964 and became the Ross Products Division of Abbott Laboratories. Abbott is a broad-based health care company presently serving customers in 130 countries with 65,000 employees in over 100 locations worldwide. Ross' Columbus plant produces infant nutritional products in 2-ounce and 32-ounce ready-to-feed bottles. These products include Similac, Isomil, and Alimentum.

The company proposes to invest $34.73 million for new machinery and equipment and to renovate its existing facility to be used for the new production line, which includes processing, filling and packaging of both infant and adult nutritional products, including PediaSure and Ensure. This more than $48 million project is expected to create 48 jobs and retain 343 positions within the first three years of the project's initial operations.

The Andersons Incorporated, to be located in Greenville (Darke County), has been awarded a 50 percent tax credit for a seven-year term for the development and construction of a 110 million-gallon ethanol production facility. The value of the tax credit is estimated at $207,047 over the term, and the company would be required to maintain operations at the project site for 14 years.

The Andersons was established in Maumee, Ohio, in 1947 and currently employs 2,727 people worldwide. The Ethanol Division is currently involved in the construction of ethanol plants in the states of Indiana and Michigan that will be capable of producing 165 million gallons of ethanol per year when complete. The division also provides facility management and corn origination services, as well as ethanol and distiller dried grain marketing.

The company proposes to construct a 50,000 square-foot facility and purchase new machinery and equipment to establish the ethanol production facility. The facility will produce as a by-product dried distillers grain and CO2 that can be sold for various applications. Ohio is in competition with Indiana and Illinois for this more than $118 million project, which is expected to create 39 jobs within the first three years of the project's initial operations.

em3, LLC, to be located in Springfield (Clark County), has been awarded a 35 percent tax credit for a five-year term to establish a research and development call center. The value of the tax credit is estimated at $58,388 over the term, and the company would be required to maintain operations at the project site for 10 years.

em3 is a certified minority-owned limited liability Corp. founded in 2004. em3 is a research and development marketing and communications company that provides Customer Relationship Management (CRM) service utilizing traditional marketing techniques along with cutting edge technological resources to service the needs of its clients. The company intends to provide information and marketing expertise to various corporate clients with an inbound/outbound call center to provide services such as market research, lead generation, and information services.

The company proposes to purchase machinery and equipment and make leasehold improvements to a 10,000 square-foot facility for the call center, which will provide research and information, including market tracking and demographics, to various corporate clients. This more than $1.4 million project is expected to create 55 jobs and retain one position within the first three years of the project's initial operations.

Formica Corp., located in Evendale (Hamilton County), has been awarded a 50 percent tax credit for an eight-year term to expand its manufacturing facility. The value of the tax credit is estimated at $334,625 over the term, and the company would be required to maintain operations at the project site for 16 years.

Formica was founded in 1913 and is currently a wholly owned subsidiary of Formica Bermuda Holdings, Ltd. The company employs 4,064 people around the world and specializes in the development and manufacturing of decorative surfacing products used for numerous applications including cabinetry, millwork, countertops, vanities, store fixtures, floorings and furniture.

The company proposes to renovate a portion of its 1,029,832 square-foot facility, and the renovation and new machinery will support the company's expansion of its new High Pressure Laminates line. High Pressure Laminates are resin-treated papers, highly resistant to abrasion and impact that provide design and wear benefits for countertops, cabinets and furniture. This more than $25 million project is expected to create 95 jobs and retain 507 positions within the first three years of the project's initial operations.

GENCO, Inc., to be located in the Village of Obetz (Franklin County), has been awarded a 55 percent tax credit for a seven-year term to establish a new third-party logistics facility. The value of the tax credit is estimated at $1,279,647 over the term, and the company would be required to maintain operations at the project site for 14 years.

GENCO is a subsidiary of GENCO Distribution System, Inc., a privately held Corp. based in Pittsburgh that is a leading third-party logistics provider and a leader in supply chain management and execution. The company currently employs over 6,000 people worldwide and manages over 26.3 million square feet of warehouse space at over 94 facilities throughout North America, Australia and the United Kingdom.

The company proposes to purchase new machinery and equipment and lease a 212,000 square-foot facility to provide repair services and distribution for Dell Corp.. Much of GENCO's work will be to handle returns, diagnostics, repair and re-shipment of Dell products. The facility will also allow GENCO room for future growth for other third-party logistics management undertakings. This more than $2.4 million project is expected to create 488 jobs within the first three years of the project's initial operations.

Quaker Chemical Corp., located in Middletown (Butler County), has been awarded a 55 percent tax credit for a 10-year term to expand its current facility. The value of the tax credit is estimated at $295,489 over the term, and the company would be required to maintain operations at the project site for 20 years.

Quaker was founded in 1918 and is headquartered in Conshohocken, Pennsylvania and manufactures various chemicals for the steel industry, including lubricants, corrosion prevention and cleaners. Quaker's products, are currently used in nearly 200 steel mill applications worldwide.

The company proposes to lease a 100,000 square-foot facility from the Butler County Port Authority to establish the company's largest fluids production location in the world. Ohio is in competition with all other Quaker facilities and other locations for this project, which is expected to create 45 jobs and retain 40 positions within the first three years of the project's initial operations.

TSS Technologies, Inc. (TSS), located in West Chester (Butler County), has been awarded a 60 percent tax credit for a 10-year term to expand its current facility. The value of the tax credit is estimated at $336,221 over the term, and the company would be required to maintain operations at the project site for 20 years.

TSS is a private company founded in 1948 that is a national leader in the design, engineering and manufacture of components and assemblies. The company focuses on manufacturing groups that include Medical Systems, Systems Integration and Engineering, Aerospace, Automotive, and Aviation Power and Marine.

The company proposes to lease a 205,000 square-foot facility to expand the company's design and manufacturing capacity of components and assemblies. TSS is anticipating the additional space will facilitate the growth of its nuclear and wind power business segments. Ohio is in competition with Kentucky for this more than $4 million project is expected to create 50 jobs and retain 70 positions within the first three years of the project's initial operations.

Kool Aire, LLC, to be located in Bedford Heights (Cuyahoga County), has been awarded a 40 percent tax credit for a five-year term to expand its current facility. The value of the tax credit is estimated at $36,693 over the term, and the company would be required to maintain operations at the project site for 10 years. Since 1953, Bessam-Aire Inc has been a provider of low-cost and efficient large-scale climate control units.

The company manufactured complete lines of Evaporative Coolers, Cooling Modules, Portable Evaporative Coolers, Combination Gas Fired & Evaporative Coolers, Industrial Heaters, Indirect Gas Fired Air, Turnover Units, Destratifying Units, and Clean Air Recirculators. In May 2006, Bessam-Aire was renamed Kool Aire and currently employs 15 people at its only location in the Bedford Heights.

The company proposes to purchase new machinery and equipment and a 55,000 square-foot facility to manufacture climate control units for a variety of industries. Ohio is in competition with Colorado for this more than $1.5 million project, which is expected to create 26 jobs and retain 15 positions within the first three years of the project's initial operations.

Rastra Ohio, Inc., located in Columbus (Franklin County), has been awarded a 25 percent tax credit for a five-year term to expand its current facility. The value of the tax credit is estimated at $48,949 over the term, and the company would be required to maintain operations at the project site for 10 years.

RASTRAÂ Insulated Concrete Form (ICF) is a trademarked alternative building material that can be used in place of most types of conventional construction methods, including wood framing, masonry block, steel frame, and prefab concrete. The system was developed by Karl Holik and his company at that time in 1972 and today, the technology is used in various manufacturing operations in Europe and the United States.

Rastra Corp. is a privately held firm formed in 2004 by Mr. Holik that is comprised of 6 employees who provide project management and technical support to customers using the ICF product. Rastra Ohio Inc. will be an independent licensee of Rastra Corp., sharing some administrative and support functions.

The company proposes to lease a 20,000 square-foot facility to be used to batch recycled polystyrene, mold forms and manufacture concrete forms. This more than $6.2 million project is expected to create 50 jobs within the first three years of the project's initial operations.

Select-Arc, Inc., located in Fort Loramie (Shelby County), has been awarded a 40 percent tax credit for a seven-year term to expand its current facility. The value of the tax credit is estimated at $84,831 over the term, and the company would be required to maintain operations at the project site for 14 years.

Select-Arc is a private company that was founded in 1996 and produces tubular welding electrodes. The company is owned by a group of shareholders, who also control Arcos Industries, which is based in Pennsylvania. Select-Arc currently employs 88 people and the facility located in the Village of Fort Loramie is Select-Arc's only location.

The company proposes to purchase machinery and equipment and expand its current facility by 30,000 square-feet to allow space for new tubular welding electrode production lines. This more than $3.6 million project is expected to create 40 jobs and retain 88 positions within the first three years of the project's initial operations.

The Job Creation Tax Credit is a refundable tax credit against the business corporate franchise or income tax. The credit equals a percentage of new state income tax withheld on new, full-time employees in Ohio.

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