When Technical Rubber Co. begins major operations in its new 91,000-square-foot Johnstown facility in June, it will be taking the first step to earn a tax credit recently granted by the Ohio Department of Development.

When Technical Rubber Co. begins major operations in its new 91,000-square-foot Johnstown facility in June, it will be taking the first step to earn a tax credit recently granted by the Ohio Department of Development.

Doing business as Tech International, the company was selected as one of 12 statewide to receive the credit based on the Ohio Jobs Creation Tax Credit Program. According to an ODOD news release, the Ohio Tax Credit Authority approved a 35-percent, six-year tax credit to Technical Rubber for the creation of $900,000 in additional annual payroll as a result of the company's Johnstown expansion project.

"It's exciting stuff," said Kim Hansen, Tech International's chief financial officer. Hansen said the tax credit applies only to new hires.

Technical Rubber expects to create 29 full-time positions, generating $900,000 in additional payroll (and retaining $8.2 million in existing payroll) as a result of the company's local expansion project.

As part of the tax credit agreement, the authority requires the company to maintain operations at the Johnstown location for at least nine years.

The tax credit will begin January 2013 and will end December 2018.

"This is very exciting for Johnstown," said Village Manager Jim Lenner. "We're grateful of Tech International's commitment to Johnstown and Licking County. We look forward to their continued presence in Johnstown through the opening of their new facility in the Business Park."

Lenner said he expects the company to begin operations in the new facility within a couple of months.

The Ohio Job Creation Tax Credit Program was established in 1993 to provide a refundable tax credit against a company's corporate franchise or income tax based on the state income tax withheld from new full-time employees.

The Ohio Tax Credit Authority, a five-member independent board of taxation and economic development professionals, is responsible for reviewing and approving applications for tax credit assistance and setting the benefit level. The authority also has oversight responsibilities that include monitoring and reporting the progress of approved projects.

Tech International offers tire repairs and wheel service solutions. Founded in 1939 and based in Johnstown, the company markets more than 5,000 products in about 110 countries worldwide. It is recognized as one of the top exporters in the United States and has received numerous export awards from the U.S. Chamber of Commerce and the Ohio Department of Commerce.

The company has subsidiaries in China, Japan and Europe. During its nearly 70 years of operation, Tech International has remained a family-owned, privately held company, continually owned and managed by the Chambers family.

Katie Sabatino, spokesperson for the ODOD, said Ohio selects businesses for the tax credit based upon "whatever is a good deal" for the state.

"They won't (approve) a project unless they see a positive return on investment," she said.

According to the Department of Development, the Job Creation Tax Credit is a major factor in Tech International's decision to expand in Ohio, which is competing with China and India for this project. Both countries offer lower labor costs. State support would help move the project forward in Ohio.

Tech International is one of 12 projects approved for the tax credit that are expected to create a total 1,580 new jobs and retain 1,936 jobs in several communities, the ODOD news release stated. In all, these projects are estimated to result in $76.1 million in new payroll and more than $328 million in new capital investment.