Business Incentives

The City of Lebanon offers many resources focused on helping your business succeed.

Local Tax Structure
The City of Lebanon's earnings tax at 1% is one of the lowest municipal income tax rates in southwest Ohio.  Businesses in the Lebanon area also benefit from:
  • No personal property tax
  • No inventory tax
  • No state corporate income tax
Small Business Development Program
The City of Lebanon is home to many small businesses that are the mainstay of our thriving commercial sector.  In efforts to support our small business community, the City offers a series of incentives available to assist business owners with new start-ups or business expansions. 

Additional information on the Small Business Development Program is available at the following LINK.

Incentive Programs
The City of Lebanon has a variety of economic development incentive programs to encourage business investment and job growth in our community. 
  • Community Reinvestment Area (CRA) Program - The CRA Program provides tax abatement on new construction and expansion of commercial and industrial facilities that result in job creation.  The CRA Program offers qualifying companies real property tax abatement on the increased property valuation that results from improvements in the form of new construction or expansion. 
  • Kilowatt Hour (kWh) Tax Rebate Program - The City of Lebanon owns and operates its own electric utility and offers a Kilowatt Hour (kWh) Tax Credit to qualifying companies classified as top-tier electric consumers.  The credit is based on the customers’ projected kWh Tax for a predetermined inducement period and is linked to the achievement of specific payroll tax targets.  To determine if a project is eligible for the credit, the company must provide electric demand projections and projected taxable annual payroll to the City of Lebanon for consideration

  • Tax Increment Financing (TIF) Program - The TIF Program is an economic development tool to finance public infrastructure improvements.  TIF districts are enacted to redirect the property taxes to the City in the form of service payments, or PILOTs. The TIF payments derived from the increased assessed value of the property improvements beyond the original value are directed to a separate fund to finance the construction of approved public infrastructure including; public roadways, utility extensions, and land acquisition.

  • Forgivable Loan Program (FLP) - The City can offer direct cash incentives through a Forgivable Loan Program (FLP) to qualifying companies that meet certain payroll tax targets and property investment criteria.  The FLP can apply to new construction and renovations to existing facilities.

  • Warren County - Port Authority - The Warren County Port Authority can provide creative economic development solutions through a broad range of financing options for new businesses. 

  • JobsOhio/State of OhioJobsOhio and the State of Ohio offer several incentive programs to encourage new business development.