State OKs tax breaks for Barbasol to operate new plant in Ashland

SPECIAL TO THE VINDICATOR

COLUMBUS — State officials OK’d tax incentives for a popular shaving cream company’s potential expansion into Ashland.

The Ohio Tax Credit Authority approved the 55 percent, eight-year tax credit for Barbasol LLC, valued at about $98,000 over the term.

The company, in turn, would commit to creating 30 jobs at a new 80,000-square-foot, $6.3 million facility in the Ashland Business Park.

It also would have to maintain operations at the site for at least 16 years. The site will be a manufacturing/production and distribution center with some administrative offices.

The incentives are refundable tax credits against what the company would pay in corporate taxes, based on the state income taxes withheld on new, full-time employees.

For example, a company paying $100 in state income tax withholding for a new worker would be credited with $55 toward its other state tax obligations (commercial activity, state income or insurance premium tax liabilities), based on a 55 percent credit.

Barbasol is considering other sites for the expansion. According to documents, the tax credit approved Tuesday “is a major factor” in the company’s decision to locate in Ohio.

The city is providing upward of $1 million in additional incentives for the project, including a 15-year abatement on real property tax, a $200,000 investment to extend a railway spur and $100,000-plus for the site purchase.