JSW Steel To Get Tax Credit for Mingo Junction Steel Plant
The Ohio Tax Credit Authority approved Monday a 1.5 percent, 10-year Job Creation Tax Credit for JSW Steel USA.
The credit is for the creation of $14.56 million in annual payroll as a result of the company’s acquisition of the former Wheeling-Pittsburgh steel mill in Mingo Junction. As part of the agreement, JSW is required to maintain operations at the plant location for at least 13 years.
Ohio Development Services Agency said the estimated value of the credit is $2.2 million, assuming all elements of the project are met. The credit is performance based, meaning the actual value is based on the number of jobs created.
The briefing to the state indicates JSW anticipates creating 280 full-time equivalent jobs worth $14.56 million in new payroll, with $6.24 million in existing payroll to be retained as of Dec. 31, 2021, for workers that have hired at the plant after July 19.
Jefferson County Port Authority offered its support for the project.
The American arm of the India-based steelmaker initially is spending $250 million to restart the plant’s electric-arc steelmaking furnace and to refurbish the hot-strip mill. If steel market conditions warrant, the company has said it could invest another $250 million to build a second electric-arc furnace and additional hot-strip mill equipment to increase capacity of the plant to about 3 million tons a year.
“We appreciate the state’s support of the project,” said Evan Scurti, Jefferson County Port Authority executive director.
“It is complex and multifaceted investment process that’s been shared with us. The state support through programs like the job creation tax credit makes the property attractive for ongoing investment and growth.”
The port is ready to start discussions about future phases and local partnerships in support of the project, Scurti said.