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Job Creation Tax Credit can apply to employees who work from home

When Governor Kasich signed the state budget bill into law, it included an important provision that would allow eligible employers applying for the Job Creation Tax Credit to count qualifying work from home employees in their job creation totals.

This additional discretion granted to the Ohio Tax Credit Authority allows the tax credit to stay current with growing trends in the workforce, where more employees are working from home or have a job that allows them to telecommute at least 50 percent of the time.

This creates benefits for the employer and employees by reducing costs, improving work/home life balance, and reducing traffic congestion.

The provision also ensures that the benefit of an employer expanding in or locating in the state still has an advantage for Ohio by specifying that the new employees must reside here. This adds to the state’s tax base and creates new job opportunities for Ohioans.

The Greater Cleveland Partnership championed the inclusion of this provision in the state budget bill, as well as standalone legislation sponsored by Senator Matt Dolan and Representatives Tom Patton and Sarah LaTourette.

“We are pleased that the final budget bill included this important update to the Job Creation Tax Credit,” says Deb Janik, the GCP’s senior vice president of real estate and business development.

“The Job Creation Tax Credit has been an effective program used by many of the companies that GCP supports. This additional provision will help our companies create more jobs and leverage economic growth goals for the region.”