YOUNGSTOWN, Ohio – The Ohio Tax Credit Authority in Columbus approved a Job Creation Tax Credit for Kimberly-Clark USA LLC as the company considers whether to move forward with a proposed plant on property it bought in late 2023 in Howland and Warren townships.
The five-member panel, which is headed by Lydia L. Mihalik, director of the Ohio Department of Development, voted unanimously to approve the tax credit, which is for 10 years at 1.837%.
The value of the tax credit over the 10-year term is $8.34 million, a Development spokesperson said. In addition, the company will claim the tax credit on Ohio employee payroll generated at the project location in excess of the company’s baseline payroll at the project location.
According to a news release from the office of Gov. Mike DeWine, the proposed project, which is pending further review and a final decision by Kimberly-Clark, is expected to create 491 full-time-equivalent positions and generate $49.1 million in new annual payroll.
To receive the tax credit, Kimberly-Clark would be required to maintain operations at the project location for at least 13 years.
Kimberly-Clark is a personal care product company, producing a wide range of household and hygiene products, including tissues, wipes and feminine care.
A representative of Lake to River Economic Development, the JobsOhio region that encompasses Trumbull, Mahoning, Columbiana and Ashtabula counties, spoke on behalf of the tax credit at Monday’s meeting but declined further comment.
The state tax credit follows approval of other local incentives in recent weeks.
At separate meetings April 16, the Western Reserve Port Authority and Trumbull County Board of Commissioners approved providing assistance for what is anticipated to be a 1.1 million-square-foot plant expected to cost between $650 million and $875 million.
The WRPA board approved executing a ground lease agreement with Kimberly-Clark, which purchased 560 acres of the former BDM Steel property in December 2023 for “proposed construction” of a plant, warehouse and offices.
The board also approved selling an additional 5.3667 acres, the former Linde Gas & Equipment property, to the company for $1,000 per acre for future potential developments that the company would like to consider at the site and entering into an agreement with Norfolk Southern for a new southern access to the BDM property. The board also discussed road and bridge upgrades to be funded by a $17.2 million All Ohio Future Fund grant.
“This is one element of a number of pieces of incentive packages that need to come to fruition to be able to evaluate the financial economics of a potential investment within this community,” Chuck Smith, director of strategic capital projects with the consumer paper products manufacturer, said at the port authority meeting.
Whether Kimberly-Clark moves forward with a project at the site will be at the discretion of the company’s board of directors, he added. Ohio is competing with North Carolina for the proposed project, according to the Ohio Department of Development.
After the port authority meeting, Trumbull commissioners approved an enterprise zone agreement with Kimberly-Clark that will provide a 10-year, 60% tax abatement for new construction at the site. Trustees in Warren and Howland townships previously had approved the abatement.