COLUMBUS -- The Ohio Tax Credit Authority OK'd incentives Monday for two companies considering expansions in northwest Ohio.
Sauder Woodworking Co. in Fulton County and Unique-Chardan Inc. in Williams County would create 150 and 30 full-time positions, respectively, with the proposed projects.
The state panel OK'd a seven-year, 60 percent tax credit for Sauder, which makes ready-to-assemble furniture in Archbold. The incentive would lead to $4.8 million in new payroll while retaining nearly $60 million in existing payroll.
The project would involve new company investments in an existing facility, with "equipment, technology and employee training to produce four furniture collections for IKEA," a Swedish retailer of home furnishings with more than three dozen stores nationally, including locations near Detroit and Cincinnati.
According to documents, "This project is Sauder's one chance to grow its IKEA business and become IKEA's North American supplier. The project is true growth and expansion for (the United States) as IKEA represents a foreign source of capital paying for American produced goods, growing our economy."
Unique-Chardan, which makes auto parts, was approved for a seven-year, 45 percent tax credit. The project would create $900,000 in new payroll while retaining $1.2 million in existing payroll in Bryan.
According to documents, "State support is necessary to maintain and grow an important employer to the community. The acquiring company has existing facilities in Georgia and Michigan, which can accommodate the expansion and would not have the added cost of leasing the building."
The state incentives OK'd Monday are refundable tax credits against 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.