Three Northern Ohio businesses get tax credit to create, retain jobs

TheMorningJournal.com has reported that three Northern Ohio businesses—U.S. Steel in Lorain, BASF Corp. in Elyria, and U.S. Refractory Products LLC in North Ridgeville—will receive tax credits to create 290 jobs and retain hundreds more, according to the Ohio Department of Development.

United States Steel Corp. was awared a 50 percent Job Creation Tax Credit for a seven-year term as a result of the company's $93.6 million expansion in Lorain. The project is expected to create 80 jobs and retain 508 positions.

The value of the tax credit is estimated at $559,166 throughout the term, and the company would be required to maintain operations at the project site for 10 years.

BASF Corp. has been awarded a 40 percent Job Creation Tax Credit for a six-year term as a result of the company's $45.9 million expansion in Elyria. The project, with construction of a new 26,400-square-foot chemical production facility, is expected to create 20 jobs and retain 134 jobs.

The state incentives are part of an expansion plan involving a national grant and local incentives, said Don Brackenhoff, economic development specialist for Elyria. The city has approved a 10-year, 55 percent tax abatement for the expansion. The new structure would generate about $210,000 in annual real estate taxes, but BASF Corp. will pay about $95,000 of that, in addition to the $71,000 in annual taxes the company already pays per year, Brackenhoff said.

Elyria also donated land for BASF Corp. to expand, Brackenhoff said. The company will break ground on its expansion at noon Wednesday, he said.

U.S. Refractory Products LLC has been awarded a 40 percent Job Creation Tax Credit for a six-year term for the company's $350,000 expansion. The project, consisting of renovation inside three buildings totaling 27,892 square feet, will create 40 jobs and retain 19 jobs.

The company started about a year ago, U.S. Refractory Products President Gary DeMarco said.