43
2 tax breaks OK’d
By MARC KOVAC
COLUMBUS
Separate state boards signed off on incentives Monday for two companies considering expansions in Mahoning County.
The Ohio Tax Credit Authority OK’d incentives valued at more than $72,000 for Magnetic Lifting Technologies’ new location in Campbell, and the Ohio Development Financing Advisory Council approved $490,500 in financing for Syncro Medical Innovations Inc. in Youngstown.
The latter requires approval by the state Controlling Board before the loan is finalized.
Magnetic Lifting Technologies, a new start-up company, manufactures and repairs magnet systems used in the steel and scrap-metal industries, according to documents.
The company is considering leasing a 33,000-square-foot facility in Campbell, where it would invest at least $293,000 in machinery and equipment.
On Monday, the Ohio Tax Credit Authority approved a six-year, 45-percent tax credit with hopes of landing the project (the company also is considering Pennsylvania).
The refundable tax credits would go toward what the company would 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 $45 toward its other state tax obligations (commercial activity, state income or insurance- premium tax liabilities), based on a 45 percent credit.
In return for the tax credit, the company would commit to creating 19 full-time jobs, paying an average hourly wage of close to $20.
Syncro Medical Innovations is a medical-device company commercializing a magnet-guided feeding tube that received federal approval in 2002, according to documents. The company is based at 20 Federal Place.
On Monday, it received initial approval for $490,500 in financing through the Innovation Ohio Loan Fund to purchase machinery and equipment and other costs related to an expansion of distribution and production capacities in Youngstown.
As a result, the company would commit to creating 30 jobs.
Without the loan, the project would not move forward “due to its inability to obtain traditional financing upon comparable terms,” according to documents.