Board approves tax credit for opening of call center

By Marc Kovac

COLUMBUS — A state board has signed off on incentives for a company planning to open a call center in the former Phar-Mor Centre in downtown Youngstown.

The Ohio Tax Credit Authority approved a five-year, 40 percent tax credit Monday for VXI Global Solutions. The company, in turn, is committing to create 500 jobs in the city.

The new positions will pay an average of $10.88 an hour, plus $4.50 an hour in benefits, according to documents.

The refundable tax credits, valued at more than $700,000, count against what VXI will pay in corporate activity or income 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 $40 toward its other state-tax obligations (commercial activity, state income or insurance premium tax liabilities), based on a 40 percent credit.

In addition to the state incentive, the city has earmarked $600,000 in federal stimulus funding for the project.

VXI is based in Los Angeles, according to documents. The company has been remodeling about 31,000 square feet at 20 Federal Place, which formerly housed Akron-based InfoCision Management Corp.

That company closed its Youngstown location in February and relocated the work to Boardman and Austintown.

VXI is investing at least $4.4 million in the Youngstown operation, including $3 million for machinery and equipment, according to documents.

The center is training its first 84 hires this week with plans to employ about 500 in a year and perhaps 1,000 within two to three years.

The Youngstown center will handle inbound sales calls and inbound customer-care calls that include providing information about products and billing.

VXI has 11 call centers, with Youngstown being the third one in the U.S. It has 7,000 employees.