Overview:
The City of Cincinnati offers a Property Investment Reimbursement (PIR) incentive to companies that are considering expanding or relocating to Cincinnati. This incentive is designed to offset the cost of capital investment and to spur job creation. The payment is a percentage of either: the earnings tax generated from the net, new employees that are hired, or the annualized cost of the capital investment.
How does a PIR work?
Suppose a company invests $1 million in fixed assets and hires 100 new employees at an average salary of $70,000, and the City of Cincinnati offers a five-year, 50 percent PIR. The company would receive a payment of the lesser of 50% of that individual earnings tax obligation ($73,500), or the annualized cost of the capital investment ($200,000).
| 100 jobs @ $70,000 Salary | $7 million in new payroll |
| $7 million payroll x 2.1% earnings tax | $147,000 in new earnings tax |
| 50% PIR on the earnings tax obligation | $73,500 |
| Total incentive over 5 years | $367,500 |
Which projects are eligible?
• At least 10 permanent, full-time equivalent employees paid wages of at least 200% of federal minimum wage and generating at least $660,000 in total annual payroll.
• The jobs must be created within 3 years and must be retained for twice the term of the incentive.
• The company must demonstrate its economic and financial viability.
• The project cannot begin prior to the execution of the PIR agreement.
• The company must demonstrate that the incentive is a major factor in its decision to expand or locate in Cincinnati.
Links:
Download Financial Assistance Application
Download Fact Sheet
Download PIR Annual Report -- Attachment 1
Download PIR Annual Report -- Attachment 2
Download PIR Annual Report -- Attachment 3
Contact:
Eric Denson, Senior Community Development Analyst
Phone: (513) 352-4981
Fax: (513) 352-6257
eric.denson@cincinnati-oh.gov
*If the project site is located in the Central Business District, please contact the City Economic Development Division at www.choosecincy.com.
