Tax Incentives

Invest Orrville

The Orrville Area Development Foundation (OADF) is a 501c3 not-for-profit organization responsible for commercial development in Orrville, Ohio. The OADF, originally founded in 1984, has served the community in a variety of ways over the years. In 2018, the OADF Board of Directors made the decision to refocus the organization on commercial development.  

OADF works in partnership with Office of Orrville Economic Development, City of Orrville and the Orrville Area Chamber of Commerce. Partnerships with Wayne County and regional economic development partners are also vital to the work of the OADF.

Programs

A number of investment opportunities eligible for attractive tax incentives are currently available for commercial development in Orrville. Several of these programs are highlighted below. Parties interested in qualifying for and using tax credits are strongly advised to consult a professional tax adviser, legal counsel, or the Internal Revenue Service regarding applicable provisions.

Local Tax Incentives

CITY OF ORRVILLE COMMUNITY REINVESTMENT AREA (CRA) POLICY

The envisioned Market West revitalization area is fully embedded within Orrville’s designated Community Reinvestment Area. Real property investment and job creation and/or retention within the area may be eligible for real estate tax incentives ranging from 50% to 75% on new investments for 10-12 years depending on circumstances. Potential investors are encouraged to refer to Orrville’s CRA Policy. Contact Kristin Endsley, City of Orrville, 330-684-5000 for further information.

State Tax Incentives

Ohio Historic Preservation Tax Credit Program

Owners and long-term lessees of historically designated buildings who undertake a rehabilitation project may apply for the Ohio Historic Preservation Tax Credit. The Ohio Historic Preservation Tax Credit Program provides a state tax credit up to 25 percent of qualified rehabilitation expenditures incurred during a rehabilitation projects. Applicants are eligible for no more than $5 million in tax credits unless approved as a catalytic project. The tax credit can be applied to applicable financial institutions, foreign and domestic insurance premiums or individual income taxes. Applicants that complete their project and receive a tax credit certificate with an effective date prior to June 30, 2019 can apply the tax credit against applicable commercial activity taxes. Please visit the link below for more information.

Federal Tax Incentives

FEDERAL HISTORIC REHABILITATION TAX CREDIT

A 20% income tax credit is available for the rehabilitation of historic, income-producing buildings that are determined by the Secretary of the Interior, through the National Park Service, to be “certified historic structures.” A number of structures within the Market West revitalization area may qualify for this tax credit. Interested parties can reference the link below for more information.

QUALIFIED OPPORTUNITY ZONE

The envisioned Market West revitalization area is fully embedded within Orrville’s Qualified Opportunity Zone as designated by the U.S. Department of Treasury and the IRS. Depending on the particular circumstances, investors may defer tax on capital gains until the earlier of the date on which the investment is sold or exchanged or December 31, 2026, Capital gains from the sale of real estate, stocks or art collectibles are eligible, as are other types of capital gains, as long as the gain is reinvested in a Qualified Opportunity Fund. Under the program, capital gains must be invested in the fund within 180 days from when they are realized. A Qualified Opportunity Fund is an investment vehicle organized to make investments in Qualified Opportunity Zones, and the funds are to be “self-certified” by the eligible taxpayer. Deferred capital gains receive a step-up in basis if held for at least five years, reducing the capital gains tax due. If the investor holds the investment in the Qualified Opportunity Fund for at least 10 years, he or she would be eligible for an increase in basis equal to the fair market value of the investment on the date the investment is sold or exchanged, resulting in no further taxation upon disposition. For further information about Opportunity Zones, please reference the link below.

USDA RURAL DEVELOPMENT PROGRAMS

USDA Rural Development administers a loan and grant program to develop community facilities for public use in rural areas and towns with populations of up to 20,000. Funds may be used to construct, enlarge or improve facilities which provide essential services to rural residents and for non-construction cost including land, equipment, architectural services, legal services, capitalized interest and initial operating funds. Funds may not be used for commercial enterprises or recreational facilities.

 


For further information about Orrville Area Development Foundation Investment Opportunities, please contact us.