As Introduced

136th General Assembly

Regular Session S. B. No. 462

2025-2026

Senator Timken

To amend section 5751.98 and to enact sections 3333.46 and 5751.55 of the Revised Code to enact the Joining-Opportunities Business and Schools (JOBS) Act to authorize and offer tax incentives for qualified education partnerships between institutions of higher education and private employers.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 5751.98 be amended and sections 3333.46 and 5751.55 of the Revised Code be enacted to read as follows:

Sec. 3333.46. (A) As used in this section:

(1) "Institution of higher education" means an institution of higher education as defined in section 3345.12 of the Revised Code or a nonprofit institution holding a certificate of authorization pursuant to Chapter 1713. of the Revised Code.

(2) "Private sector partner" means a private employer within this state that chooses to participate in a qualified education partnership under this section.

(B)(1) The chancellor of higher education, in conjunction with the director of development, shall establish the qualified education partnership program. Under the program, an institution of higher education may enter into an agreement with a private sector partner to support the development of a degree or certificate program that directly meets local workforce needs.

(2) A qualified education partnership established under this section shall meet all of the following conditions:

(a) The private sector partner shall significantly contribute to the curriculum of the degree or certificate program to ensure alignment with current industry standards.

(b) The private sector partner shall contribute significant resources to the degree or certificate program, which may include proprietary software, specialized equipment, or subject matter experts to assist in the delivery of the educational content.

(c) The degree or certificate program shall lead to a recognized post-secondary degree or a credential that is valuable in the broader labor market, portable, and credit-worthy.

(d) The institution of higher education shall maintain academic control and deliver instruction in accordance with state and federal laws and applicable accreditation standards.

(3) Each institution of higher education that enters into a qualified education partnership shall notify the chancellor upon entering into the agreement. The chancellor shall certify the qualified education partnership to the department of taxation for the purposes of section 5751.55 of the Revised Code.

(C) Each participating institution of higher education shall annually publish on its publicly accessible web site the completion rates and job placement rates of the qualified education partnership.

(D) All marketing materials, web sites, and enrollment agreements for a qualified education partnership established under this section shall include a concise and clear description of the partnership and shall include information on the types of careers for which the partnership's degree or certificate program is designed to prepare students.

(E) Any revenue sharing agreements established under this section between the institution of higher education and a private sector partner shall be in accordance with United States department of education regulations and guidance regarding bundled services and incentive compensation.

(F) The chancellor of higher education, in conjunction with the director of development, may adopt rules necessary to administer this section.

Sec. 5751.55. (A) Terms used in this section have the same meanings as in section 3333.46 of the Revised Code. As used in this section:

(1) "Qualified education partnership" means a degree or certificate program developed pursuant to an agreement between a private sector partner and an institution of higher education, as those terms are defined in section 3333.46 of the Revised Code, and certified by the chancellor of higher education under division (B)(3) of that section.

(2) "Qualifying expenses" means costs incurred by a private sector partner in developing or significantly updating a qualified education partnership, including those related to research and development, equipment donation, and associated staff costs.

(B)(1) A taxpayer that incurs qualifying expenses in developing or significantly updating a qualified education partnership that achieves a seventy per cent completion rate within its first two years of beginning operation or following the update may submit an application to the tax commissioner for a development tax credit certificate. The application shall be made on a form and in a manner that the commissioner shall prescribe. The application shall state the amount of such expenses, the completion rate for the qualified education partnership, and any other information the commissioner may require.

(2) The commissioner shall evaluate applications in the order in which they are received and issue a determination. If the commissioner denies an application, the determination shall state the reason for the denial. If the commissioner approves an application, the determination shall include a development tax credit certificate listing the amount of credit that the applicant may claim.

(3) The amount of a credit authorized by division (B) of this section shall equal twenty per cent of qualified expenses incurred, for a newly created qualified education partnership, in the eighteen months preceding the last day of the subject program's first year or, for a qualified education partnership undergoing a significant update, in the eighteen months preceding the last day of the subject program's first year after such update.

(C)(1) A taxpayer that is the private sector partner of a qualified education partnership that was awarded a tax credit under division (B) of this section and that achieves a seventy per cent job placement rate may submit an application to the tax commissioner for a hiring tax credit certificate. The application shall be made on a form and in a manner that the commissioner shall prescribe. The application shall state the job placement rate for the qualified education partnership and any other information the commissioner may require.

(2) The commissioner shall evaluate applications in the order in which they are received and issue a determination. If the commissioner denies an application, the determination shall state the reason for the denial. If the commissioner approves an application, the determination shall include a hiring tax credit certificate listing the amount of credit that the applicant may claim.

(3) Except as provided in division (D) of this section, the amount of a credit authorized by division (C) of this section shall equal one thousand dollars for each graduate hired and retained by the applicant, or placed in substantially similar employment in the same industry, for at least twelve consecutive months.

(D) The combined amount of the credits awarded under divisions (B) and (C) of this section, with respect to a qualified education partnership, shall not exceed the applicant's total qualifying expenses that were the basis for computing the credit under division (B) of this section.

(E) There is allowed nonrefundable credit against the tax levied by section 5751.02 of the Revised Code for a taxpayer issued a tax certificate under division (B) or (C) of this section, equal to the credit amount listed on that tax certificate. The credit may be claimed for the tax period in which the certificate is issued or for the preceding tax period. The credit shall be claimed in the order required by section 5751.98 of the Revised Code. Any credit amount in excess of the taxpayer's tax liability, after allowing for any other credits preceding the credit in that order, may be carried forward for two years, but the amount of the excess credit claimed against the tax for any tax period shall be deducted from the balance carried forward to the next tax period.

Sec. 5751.98. (A) To provide a uniform procedure for calculating the amount of tax due under this chapter, a taxpayer shall claim any credits to which it is entitled in the following order:

The nonrefundable jobs retention credit under division (B) of section 5751.50 of the Revised Code;

The nonrefundable development credit under division (B) of section 5751.55 of the Revised Code;

The nonrefundable hiring credit under division (C) of section 5751.55 of the Revised Code;

The nonrefundable credit for qualified research expenses under division (B) of section 5751.51 of the Revised Code;

The nonrefundable credit for a borrower's qualified research and development loan payments under division (B) of section 5751.52 of the Revised Code;

The nonrefundable credit for unused net operating losses under section 5751.53 of the Revised Code;

The refundable motion picture and broadway theatrical production credit under section 5751.54 of the Revised Code;

The refundable jobs creation credit or job retention credit under division (A) of section 5751.50 of the Revised Code.

(B) For any credit except the refundable credits enumerated in this section, the amount of the credit for a tax period shall not exceed the tax due after allowing for any other credit that precedes it in the order required under this section. Any excess amount of a particular credit may be carried forward if authorized under the section creating the credit.

Section 2. That existing section 5751.98 of the Revised Code is hereby repealed.

Section 3. The amendment or enactment by this act of sections 5751.55 and 5751.98 of the Revised Code applies to qualifying expenses, as that term is defined in section 5751.55 of the Revised Code, incurred on and after January 1, 2027.

Section 4. This act shall be known as the Joining-Opportunities Businesses and Schools (JOBS) Act.