YOUNGSTOWN — City council is expected to consider legislation next week to refund $98,400 in income taxes over three years to a commercial baking company adding 40 jobs.

The proposed deal with P&S Bakery, 2716 Intertech Drive, should be in front of city council at its Oct. 16 meeting.

P&S Bakery employs 66 people and is looking to add another production line and 40 new workers, city Finance Director Kyle Miasek said.

“They asked if we could help out, and we offered this income tax program,” Miasek said. “Adding a second line and possibly a third line requires a large capital infusion.”

The 40 employees would be paid about $1.5 million in annual salary, Miasek said.

One added benefit of the income tax deal with P&S is the company plans to largely hire city residents, Miasek said.

“We forgo about $100,000 in income tax, but it generates 40 new jobs for people who live in Youngstown,” he said. “The opportunity to put 40 people to work with benefits is worth the income tax grant.”

The job creation grant agreement would allow P&S to get a 100% rebate on the 2.75% income tax paid by new employees in the first year, which would be 2026. That’s a $41,000 savings.

The rebate would drop to 75% in the second year, for a $33,400 savings, and then to 50% in the third and final year, for a $24,000 savings, Miasek said. Built into the savings are salary increases, he said.

The company plans to use the money to “reinvest into capital,” Miasek said.

Councilman Mike Ray, D-4th Ward, said he supported the proposal.

“It’s an established company that wants to expand and create 40 jobs,” he said. “I’m on board with this.”

Councilman Julius Oliver, D-1st Ward, also said he supports the proposal.

“It’s a great tool,” he said.

P&S is a commercial bakery that makes pepperoni rolls and other specialty breads stuffed with meats, cheese and sauces as well as cookies.

It relocated from Poland to Youngstown in 2020 after purchasing the Intertech Drive property for $1.5 million and investing about $1.2 million in improvements.

If approved, P&S would be the third company to benefit from the income tax refund program.

Steelite International, 201 E. Commerce St., received a five-year refund for moving its executive headquarters from New Castle, Pa., to downtown Youngstown.

Steelite will get a 100% refund early next year as part of the five-year deal.

The second year is a 75% refund, 50% for the third year and then 25% for the fourth and fifth years.

The Steelite refund was approved in 2022, but the company didn’t finish relocating to Youngstown until the end of last year.

City council approved a three-year income tax refund in October 2023 to Trivium Aluminum Packing USA Corp. at 1 Performance Place for adding 90 jobs by the end of this year.

That rebate, which starts in 2025, is 75% in the first year, 50% in the second year and 25% in the third year.