Policy Matters Testifies on Job Tax Credits
June 25th, 2010
Policy Matters Ohio congratulates the Ohio Department of Development for proposing to boost wage standards required of companies that receive incentives under the Job Creation Tax Credit (JCTC) and the Job Retention Tax Credit (JRTC) programs. These are among the state’s important economic development incentives. The proposals are part of official rulemaking after the General Assembly expanded the incentives in last year’s budget bill. Following through on a 2009 state study of economic development incentives, the department proposes that minimum average wages paid by firms receiving these credits be raised from at least 150 percent of the federal minimum wage to at least 175 percent. As explained in testimony presented by Wendy Patton at a hearing on the rules June 25, 2010, the department has written a loophole into the proposal so broad that it would not apply right now anywhere in the state. Development Department officials have indicated they have reexamined the loophole and anticipate some changes in the final proposal that goes to the Joint Committee on Agency Rule Review.