Group says expanding job retention tax credit will hurt Ohio.

• Position: Ohio

Expanding Ohio's Job Retention Tax Credit to help the state's ailing automotive manufacturers would diminish state tax revenue and cost Ohio jobs, according to Policy Matters Ohio.

The Cleveland-based public policy group sent a letter to lawmakers warning them of the potential pitfalls of legislation (HB 414). The legislation would extend the tax credit to five Ohio companies--General Motors Corp., Ford Motor Co., DaimlerChrysler, Honda of America and Delphi.

The bill, sponsored by State Rep. Randy Law, R-Warren, was introduced after Delphi announced significant job cuts at its Dayton facility.

Policy Matters argues that extending the credit would cost the state significant tax revenue while providing little assurance that the companies will retain existing jobs or create new ones in Ohio. The group also contends that auto manufacturers...