Ohio Approves Job Creation Tax Credit for TJX
YOUNGSTOWN, Ohio – The Ohio Tax Credit Authority this morning approved a Job Creation Tax Credit potentially worth more than $3.5 million for HomeGoods Inc., the TJX Companies Inc. subsidiary that wants to build a 1.2 million-square-foot regional distribution center in Lordstown.
At its meeting in Columbus, the authority approved the 1.404%, 10-year tax credit for HomeGoods Inc. and HomeGoods Ohio Merchants LLC, according to state documents. As part of the agreement, the company has to maintain operations at the project site for at least 13 years.
Ohio is in contention with sites in Pennsylvania, New York and New Jersey for the project, the Ohio Development Services Agency stated. TJX Inc. said May 4th it is pursuing a 290-acre site in Lordstown.
Walt Good, senior manager of project management and site selection for Team NEO, said company officials were pleased to learn today that the incentive had been approved.
“It’s an important component of the overall package that’s being made available for the project to happen,” Good said.
The company expects to create 1,000 full-time equivalent jobs generating $27.04 million in annual payroll by Dec. 31, 2024, at the distribution center. The estimated value of the tax credit, just over $3.5 million, is based on that payroll projection.
“The Job Creation Tax Credit is a performance-based credit,” Lisa Colbert, public information officer for the Ohio Development Services Agency, said in an email. “The actual value of the tax credit is based on jobs created and new payroll tax generated, as verified.”
The credit typically is applied against a company’s Commercial Activity Tax, she said.
Copyright 2024 The Business Journal, Youngstown, Ohio.