Property Investment Reimbursement Agreement
The City of Cincinnati may offer a Property Investment Reimbursement (PIR) incentive to a company that is considering expanding in or moving to Cincinnati. This incentive is designed to offset the cost of capital investment and spur job creation. To receive the credit, an employer must create a net of at least 25 new jobs in the City of Cincinnati and commit to keeping those jobs in Cincinnati for twice the term of the incentive.
The PIR is a cash payment from the City of Cincinnati designed to offset a portion of a company's net profits tax obligation. The payment is a percentage of either: the earnings tax generated from the net, new employees that are hired by the company, or the annualized cost of the capital investment. It does not require a match from the State of Ohio.
How does a PIR work?
Suppose a company invests $1 million in fixed assets and hires 100 new employees at an average salary of $70,000, and the City of Cincinnati offers a five-year, 50 percent PIR. The company would receive a payment of the lesser of 50% of that individual earnings tax obligation ($73,500), or the annualized cost of the capital investment ($200,000).
|100 jobs @ $70,000 Salary||$7 million in new payroll|
|$7 million payroll x 2.1% earnings tax||$147,000 in new earnings tax|
|50% PIR on the earnings tax obligation||$73,500|
|Total City incentive over 5 years||$367,500|
Which projects are eligible?
- At least 25 new, full-time jobs must be created and maintained for twice the term of the credit by the company within 3 years of initial operations.
- The company must demonstrate that it is economically sound and financially viable.
- The project cannot begin prior to the execution of the PIR agreement.
- The company must demonstrate that the incentive is a major factor in its decision to expand or locate in Cincinnati.
- The company must maintain its operations and base number of new jobs at the site for at least twice the term of the incentive.
How do I learn more?
Contact The City of Cincinnati's Economic Development Division at (513) 352-2499 or firstname.lastname@example.org
Financial Assistance Application
Initial Application for Commercial Tax Exemption
This application is to be completed by any company interested in a commercial tax abatement through the City of Cincinnati prior to beginning construction.
Subsequent Application upon Project Completion
This form is required to be submitted upon project completion. The tax abatement will take effect after review and processing of this application.
Annual Status Report
This form is required to be submitted each year by existing tax abatement recipients. It must be submitted by March 5th of each year during the tax abatement period.