Report Shows Lack of Compliance Among Companies that Received State Loans, Tax Credits for Economic Development Projects

COLUMBUS – A majority of companies that received state incentives had not met the job creation and/or payroll commitments included in award agreements, according to a report released Thursday.

In total, 39 out of 60 companies that committed to creating jobs were listed as noncompliant in the annual report compiled by the Auditor of State’s Office.

Additionally, auditors determined no action was taken against many companies that were deemed noncompliant with economic incentive award agreements since 2021.

“These agreements are meant to encourage job growth and community prosperity,” Auditor Faber said. “If we’re not going to hold companies accountable for their job and payroll commitments, then these agreements are only depriving Ohioans of financial resources that could be used elsewhere.”

The full report is available online at https://ohioauditor.gov/auditsearch/search.aspx.

Under state law changes enacted in 2021, the Ohio Department of Development is required annually to submit to the Auditor of State’s Office details of companies and communities that received state economic development awards.

The information is to be provided within 30 days of the end of each fiscal year (June 30). The Auditor of State’s Office reviews the information and lists whether companies are compliant with the terms and conditions of award agreements.

The findings of the annual report are reported to the Ohio Attorney General’s Office to determine whether award recoveries or other remedies are warranted.

According to Thursday’s report, which covered activities between July 1, 2024, and June 30, 2025:

• Of the five companies that received state loans (166 Direct, Urban Redevelopment, or Regional 166 Direct), three were not compliant with job-creation commitments.
• Of the 55 companies that received Job Creation Tax Credits, 36 had not met job creation commitments, while 19 had met those commitments.
• The report also lists 20 entities that received grants for roadwork improvements related to economic development projects, though the grants did not include job or payroll commitments.

Thursday’s report includes a review of results from past annual economic incentive reports, which found:

• For closeout year 2021, no action was taken against four recipients of state loans that either failed to create or retain jobs and payroll or could not produce documentation concerning the use of loan proceeds and other project details. No action was taken against 15 of 31 companies that received state tax credits but did not meet job or payroll commitments.
• For closeout year 2022, no action was taken against seven of eight companies that received state loans but did not meet job or payroll commitments. Also, no action was taken against 16 of 33 companies that did not meet job or payroll commitments after receiving tax credits.
• For closeout year 2023, no action was taken against the eight companies that received state loans but failed to create jobs promised as part of their agreements. Also, no action was taken against eight of 28 companies that did not meet job or payroll commitments after receiving tax credits.

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The Auditor of State’s Office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,900 state and local government agencies. Under the direction of Auditor Keith Faber, the office also provides financial services to local governments, investigates and prevents fraud in public agencies, and promotes transparency in government.