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Taxes

Explore the benefits of a three-state region

Our three-state regional tax structure blends incentives and policies created in Ohio, Kentucky and Indiana. That means your business can find the perfect tax environment to fit your needs.

Ohio

    
Type Tax details
Business sales tax exemptions
  • Gas if sold by a natural gas company or municipal gas utility and delivered through pipes or conduits
  • Machinery, raw materials, utilities used in manufacturing
  • Materials used or consumed directly in mining, farming, agriculture, horticulture, floriculture, or for the production/exploration of crude oil and natural gas
  • Data center equipment can be eligible for a partial or full sales tax exemption
Commercial Activity Tax
  • 0.26% for businesses with taxable annual gross receipts of $150,000 or more
Inventory & personal property tax
  • 0% business personal property tax
  • 0% business inventory tax
  • 0% machinery and equipment tax
Non-taxed business services Include:
  • Professional, personal, insurance transactions in the transfer of tangible small personal property
Sales & use tax
  • 5.75% general sales tax rate
  • Counties and regional transit authorities may levy additional taxes up to 1.5%

Kentucky

Type Tax details
Business sales tax exemptions
  • Industrial supplies, tools used for manufacturing on another entity’s property
  • Items purchased for resale
  • Machinery for new & expanded industries
  • Manufacturing containers, packaging, wrapping materials
  • Raw materials, industrial supplies, industrial tools
Corporate income tax
  • 4% tax rate for income up to $50,000
  • 5% tax rate for income $50,001-$100,000
  • 6% tax rate for incomes higher than $100,000
Non-taxed business services Include:
  • Custom software
  • General operational maintenance contracts
  • Medical services
  • Transportation services
Property taxes
  • Finished goods: $0.05/$100 valuation
  • Goods-in-Transit: Exempt
  • Manufacturing machinery: $0.15/$100 valuation
  • Raw materials: $0.05/$100 valuation
Sales & use tax
  • 6% state tax rate with no additional local taxes

Indiana

Type Tax details
Business sales tax exemptions
  • Electricity & utilities used in goods production
  • Machinery, tools, equipment used in direct production
Commercial & industrial property tax
  • Tax varies, with cap at 3% for business property
Corporate income tax
  • Corporate adjusted gross income tax is a flat percentage of the company’s adjusted gross income attributable to the company’s Indiana sales
Income tax rate
  • Present-2020: Decreasing .25% each July until it reaches 5.25%
  • 2021: Scheduled to drop again to 4.9%
Non-taxed business services Include:
  • Custom software
  • Janitorial services
  • Medical services
  • Transportation services
Sales & use tax
  • 7% state tax rate with no local taxes