Some New Businesses in Fairlawn and Bath May Be Eligible for Tax Break for Energy Creation

Legislation adopted by Summit County County Council designating the county an Alternative Energy Zone will give businesses that produce certain kinds of energy a tax break.

According to the Summit County Executive's office, companies that produce  solar, wind, hydropower, biomass and other approved forms of alternative energy can make an annual service payment in lieu of taxes of up to $9,000 per megawatt for the facility. 

"It's really a payment in lieu of taxes," said Connie Kraus, the county's economic development director. "That means (businesses) make a certain payment per megawatt that takes the place of what they would have paid in taxes. The amount is less than what they would have paid in tangible personal property taxes related to utilities."  

By passing the legislation, Summit County became the first County in Northeast Ohio to take advantage of the tax exemption structure created by the state. The bill was designed to reduce the state tax burden on renewable and advanced sources of energy generation. For example, alternative energy facilities would have paid $40,000 - $45,000 per megawatt annually in utility tangible personal property taxes. However, under the new law, those facilities would only pay $9,000 per megawatt. As a result, Summit County becomes competitive with surrounding States rather than being at a disadvantage when competing for alternative energy jobs. 

To be eligible for the alternative tax structure, a company that proposes to build an alternative energy facility must submit a request to the Ohio Department of Development. Interested companies can contact Connie Kraus, Summit County director of community and economic development for additional information or assistance with the application process.