Marathon Petroleum to Stay in Ohio With Tax Credit OK
FINDLAY, Ohio -- Locally headquartered Marathon Petroleum Corp. (MPC) is poised to keep and create approximately 1,750 jobs in Northwest Ohio now that it has received two tax credits.
According to the Toledo Blade, the Ohio Tax Credit Authority approved a 75-percent, 15-year job retention tax credit for the oil refiner that will allow it to keep 1,650 employees. In addition, the state OKed a 60-percent, 10-year job creation tax credit that will allow MPC to create 100 jobs with an average salary of $46.82 per hour.
Since it will be receiving the job creation tax credit, MPC will be required to stay in Findlay for at least 13 years; the job retention credit requires it to commit to 18 years, the newspaper reported, adding the tax credits were a key element in the company's decision to keep its headquarters in Findlay.
A statement from the Ohio Department of Development said MPC plans to invest at least $20 million to renovate its 141,557-sq.-ft. building, buy new machinery and equipment, and upgrade its infrastructure.
MPC is readying for a spinoff from Marathon Oil Corp., based in Houston. Marathon Oil revealed today that the Internal Revenue Service provided a favorable private letter ruling confirming the tax-free status of the planned spinoff, Marathon Petroleum. According to the company release, "based on certain facts, assumptions, representations and undertakings set forth in the ruling, for U.S. federal income tax purposes, the distribution of MPC common stock and certain related transactions generally will not be taxable to Marathon Oil or U.S. holders of Marathon Oil common stock, except in respect to cash received in lieu of fractional share interests, which generally will be taxable to such holders as a capital gain."
Marathon Oil is now awaiting the completion of a review by the U.S. Securities and Exchange Commission of MPC's Form 10, the only remaining regulatory approval required. The spinoff is expected to be effective June 30.