Business Incentives

Tax Incentives

Enterprise Zone (EZ)

The Fairfield County EZ provides tax abatement for real and tangible personal property for up to 10 years. The maximum level of abatement in the City of Lancaster under this program is 75%. The E Z tax exemption is negotiated with a team of local representatives which makes its recommendation to the Fairfield County Commissioners for approval. The EZ program is especially attractive to companies and projects that are making substantial investments in tangible personal property including machinery and equipment. EZ is available at both Rockmill and Quarry Commerce Center.

Community Reinvestment Area (CRA)

The CRA provides tax abatement for improvements to real property. The City of Lancaster presently has a CRA in place at Rockmill Phase I and has the ability to extend it to new areas as the park grows. This tax abatement program provides 100% tax exemption for up to 12 years for new commercial building facilities and other improvements to property and 100% tax exemption for up to 15 years for industrial real property improvements. The abatement program is especially attractive to industrial and commercial developers who can utilize the tax break as an inducement with potential end-users. The program is administered locally by the City of Lancaster. Click here to learn more.

Foreign Trade Zone (FTZ)

The FTZ is a federal program which provides tax benefits for certain operations. The Rockmill Industrial Park contains 44 acres of FTZ property in which stored merchandise is considered to be in international commerce and not in the U.S. for Customs purposes. The FTZ also provides exemption from the Ohio inventory tax portion of the tangible personal property tax. Location in the FTZ area of Rockmill can greatly reduce property taxes for companies with sizeable inventories.

Performance Withholding Incentive for Industrial and Advanced Technology Jobs

The City may offer annual performance-based cash incentives based upon a percentage of actual payroll withholdings for Industrial and/or Advanced Technology companies providing a minimum of thirty (30) new jobs and/or minimum payroll of $1.5 million. The period/duration will be 1 to 10 years with an incentive range of 10% to 50%. For more information on this incentive, contact the Economic Development Director.

Performance Withholding Incentive for Historic District Jobs

The City may offer annual performance-based cash incentives based upon a percentage of actual payroll withholdings for companies currently or newly located in the Historic District providing a minimum of ten (10) new jobs to the city and/or a minimum payroll of $400,000.00. The period/duration will be 3 to 5 years with an incentive range of 10% to 50 %. For more information on this incentive, contact the Economic Development Director.

Other Business Assistance

Fairfield County Job & Family Services

Fairfield County job and family services offers a wide variety of resources for employers at no cost. The job development team works with employers to determine what their current and future needs are for their workforce and to assist in meeting those needs. Resources include free web-based job postings, the opportunity to review resumes of potential employees on-line, a professional recruiting and interviewing facility, and job fairs. The FCJFS staff has proven success assisting a wide range of employers.

Fairfield County Revolving Loan Fund

The Fairfield County revolving loan fund offers low interest loans to companies with no more than 200 employees. The maximum loan amount is $60,000 and can be used for new construction, purchase of real estate, machinery & equipment, and a portion of working capital needs. Terms are based on asset life with a maximum of 15 years for land and buildings. Interest rates can be up to 4 points below prime.

Tax Increment Financing (TIF)

TIF permits service payments in lieu of real property taxes to be used for the finance of public infrastructure improvements connected to a development project and declared to have a “public purpose.” Up to 75% of real property taxes can be exempted for up to 20 years to cover the costs of road, water, sewer, and other public improvement. The City of Lancaster has the ability to approve the establishment of a TIF district for the affected properties and thus creating an income stream for the repayment of important development infrastructure costs.

Infrastructure Grants

Infrastructure grants are available to a local political subdivision such as the City of Lancaster on a case-by-case basis from the Ohio Department of Development (ODOD). These grant programs are targeted toward road improvements, utility extensions, and other infrastructure needs which are instrumental in making a project go forward. ODOD considers the job creation and investment level when determining grant amounts. The City of Lancaster must apply for the assistance on behalf of the project.

Other State Programs

Depending on the type and size of project, the State of Ohio has a wide range of programs to assist companies creating employment and investment. These programs include business income tax credits, cost reimbursement and tax credits for employee training, and tax break for new equipment and warehouse inventory. The City will actively pursue these options for eligible projects.