The tax benefits of doing business in the Cincinnati region

Ohio

Type	Tax Highlights
Business Sales Tax Exemptions	Machinery, raw materials, utilities used in manufacturing Datacenter equipment can be eligible for a partial or full sales tax exemption Capitalized assets primarily used in conducting qualified research
Commercial Activity Tax	0.26% for gross receipts over $1M, plus fee
Inventory & Personal Property Tax	0% business personal property tax 0% business inventory tax 0% machinery and equipment tax
Sales & Use Tax	5.75% general sales tax rate Counties and regional transit authorities may levy additional taxes up to 1.5%; total combined tax may not exceed 8.75%

Kentucky

Type	Tax Highlights
Business Sales Tax Exemptions	Machinery for new & expanded industries Raw materials, industrial supplies, industrial tools Sales tax can be refunded that was paid for certain building and construction materials and certain equipment used in distribution centers but would exlude retailers. Minimum investment requirements apply.
Corporate Income or Profits Tax	5% flat rate imposed by state City rate range: 0.05%-2% County rate range: 0.07%-1.25%
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 Highlights
Business Sales Tax Exemptions	Electricity & utilities used in goods production Machinery, tools, equipment used in direct production Machinery, equipment, or supplies used directly for R&D
Real and Personal Property Tax	State does not impose a real property tax, but municipalities have the right to impose. State does not impose a personal property tax, but municipalities have the right to impose.
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 Tax rate (July 2020) - 5.25% Tax rate (scheduled to be in effect July 2021) - 4.9%
Sales and Use Tax	7.00% state rate Localities are authorized to impose a sales tax in Indiana, but currently none do. However, there are additional county taxes for specified items.