SB 462

As Introduced
136th General Assembly
   Regular Session  S. B. No. 462
       2025-2026
  Senator Timken
  To amend section 5751.98 and to enact sections  1
  3333.46 and 5751.55 of the Revised Code to enact        2
  the Joining-Opportunities Business and Schools  3
  (JOBS) Act to authorize and offer tax incentives        4
  for qualified education partnerships between  5
  institutions of higher education and private  6
  employers.  7
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
     Section 1. That section 5751.98 be amended and sections  8
3333.46 and 5751.55 of the Revised Code be enacted to read as  9
follows:  10
     Sec. 3333.46. (A) As used in this section:  11
     (1) "Institution of higher education" means an institution        12
of higher education as defined in section 3345.12 of the Revised       13
Code or a nonprofit institution holding a certificate of  14
authorization pursuant to Chapter 1713. of the Revised Code.  15
     (2) "Private sector partner" means a private employer  16
within this state that chooses to participate in a qualified  17
education partnership under this section.  18
     (B)(1) The chancellor of higher education, in conjunction  19
with the director of development, shall establish the qualified        20
S. B. No. 462  Page 2
As Introduced
education partnership program. Under the program, an institution  21
of higher education may enter into an agreement with a private  22
sector partner to support the development of a degree or  23
certificate program that directly meets local workforce needs.  24
        (2) A qualified education partnership established under  25
this section shall meet all of the following conditions:  26
        (a) The private sector partner shall significantly  27
contribute to the curriculum of the degree or certificate  28
program to ensure alignment with current industry standards.  29
        (b) The private sector partner shall contribute  30
significant resources to the degree or certificate program,  31
which may include proprietary software, specialized equipment,  32
or subject matter experts to assist in the delivery of the  33
educational content.  34
        (c) The degree or certificate program shall lead to a  35
recognized post-secondary degree or a credential that is  36
valuable in the broader labor market, portable, and credit-  37
worthy.  38
        (d) The institution of higher education shall maintain  39
academic control and deliver instruction in accordance with  40
state and federal laws and applicable accreditation standards.  41
        (3) Each institution of higher education that enters into  42
a qualified education partnership shall notify the chancellor  43
upon entering into the agreement. The chancellor shall certify  44
the qualified education partnership to the department of  45
taxation for the purposes of section 5751.55 of the Revised  46
Code.  47
        (C) Each participating institution of higher education  48
shall annually publish on its publicly accessible web site the  49
S. B. No. 462  Page 3
As Introduced
completion rates and job placement rates of the qualified  50
education partnership.  51
       (D) All marketing materials, web sites, and enrollment  52
agreements for a qualified education partnership established  53
under this section shall include a concise and clear description  54
of the partnership and shall include information on the types of  55
careers for which the partnership's degree or certificate  56
program is designed to prepare students.  57
       (E) Any revenue sharing agreements established under this  58
section between the institution of higher education and a  59
private sector partner shall be in accordance with United States  60
department of education regulations and guidance regarding  61
bundled services and incentive compensation.  62
       (F) The chancellor of higher education, in conjunction  63
with the director of development, may adopt rules necessary to  64
administer this section.  65
       Sec. 5751.55. (A) Terms used in this section have the same  66
meanings as in section 3333.46 of the Revised Code. As used in  67
this section:  68
       (1) "Qualified education partnership" means a degree or  69
certificate program developed pursuant to an agreement between a  70
private sector partner and an institution of higher education,  71
as those terms are defined in section 3333.46 of the Revised  72
Code, and certified by the chancellor of higher education under  73
division (B)(3) of that section.  74
       (2) "Qualifying expenses" means costs incurred by a  75
private sector partner in developing or significantly updating a  76
qualified education partnership, including those related to  77
research and development, equipment donation, and associated  78
S. B. No. 462  Page 4
As Introduced
staff costs.  79
       (B)(1) A taxpayer that incurs qualifying expenses in  80
developing or significantly updating a qualified education  81
partnership that achieves a seventy per cent completion rate  82
within its first two years of beginning operation or following  83
the update may submit an application to the tax commissioner for  84
a development tax credit certificate. The application shall be  85
made on a form and in a manner that the commissioner shall  86
prescribe. The application shall state the amount of such  87
expenses, the completion rate for the qualified education  88
partnership, and any other information the commissioner may  89
require.  90
       (2) The commissioner shall evaluate applications in the  91
order in which they are received and issue a determination. If  92
the commissioner denies an application, the determination shall  93
state the reason for the denial. If the commissioner approves an  94
application, the determination shall include a development tax  95
credit certificate listing the amount of credit that the  96
applicant may claim.  97
       (3) The amount of a credit authorized by division (B) of  98
this section shall equal twenty per cent of qualified expenses  99
incurred, for a newly created qualified education partnership,  100
in the eighteen months preceding the last day of the subject  101
program's first year or, for a qualified education partnership  102
undergoing a significant update, in the eighteen months  103
preceding the last day of the subject program's first year after  104
such update.  105
       (C)(1) A taxpayer that is the private sector partner of a  106
qualified education partnership that was awarded a tax credit  107
under division (B) of this section and that achieves a seventy  108
S. B. No. 462  Page 5
As Introduced
per cent job placement rate may submit an application to the tax  109
commissioner for a hiring tax credit certificate. The  110
application shall be made on a form and in a manner that the  111
commissioner shall prescribe. The application shall state the  112
job placement rate for the qualified education partnership and  113
any other information the commissioner may require.  114
       (2) The commissioner shall evaluate applications in the  115
order in which they are received and issue a determination. If  116
the commissioner denies an application, the determination shall  117
state the reason for the denial. If the commissioner approves an  118
application, the determination shall include a hiring tax credit  119
certificate listing the amount of credit that the applicant may  120
claim.  121
       (3) Except as provided in division (D) of this section,  122
the amount of a credit authorized by division (C) of this  123
section shall equal one thousand dollars for each graduate hired  124
and retained by the applicant, or placed in substantially  125
similar employment in the same industry, for at least twelve  126
consecutive months.  127
       (D) The combined amount of the credits awarded under  128
divisions (B) and (C) of this section, with respect to a  129
qualified education partnership, shall not exceed the  130
applicant's total qualifying expenses that were the basis for  131
computing the credit under division (B) of this section.  132
       (E) There is allowed nonrefundable credit against the tax  133
levied by section 5751.02 of the Revised Code for a taxpayer  134
issued a tax certificate under division (B) or (C) of this  135
section, equal to the credit amount listed on that tax  136
certificate. The credit may be claimed for the tax period in  137
which the certificate is issued or for the preceding tax period.  138
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The credit shall be claimed in the order required by section  139
5751.98 of the Revised Code. Any credit amount in excess of the  140
taxpayer's tax liability, after allowing for any other credits  141
preceding the credit in that order, may be carried forward for  142
two years, but the amount of the excess credit claimed against  143
the tax for any tax period shall be deducted from the balance  144
carried forward to the next tax period.  145
       Sec. 5751.98. (A) To provide a uniform procedure for  146
calculating the amount of tax due under this chapter, a taxpayer  147
shall claim any credits to which it is entitled in the following  148
order:  149
       The nonrefundable jobs retention credit under division (B)  150
of section 5751.50 of the Revised Code;  151
       The nonrefundable development credit under division (B) of  152
section 5751.55 of the Revised Code;  153
       The nonrefundable hiring credit under division (C) of  154
section 5751.55 of the Revised Code;  155
       The nonrefundable credit for qualified research expenses  156
under division (B) of section 5751.51 of the Revised Code;  157
       The nonrefundable credit for a borrower's qualified  158
research and development loan payments under division (B) of  159
section 5751.52 of the Revised Code;  160
       The nonrefundable credit for unused net operating losses  161
under section 5751.53 of the Revised Code;  162
       The refundable motion picture and broadway theatrical  163
production credit under section 5751.54 of the Revised Code;  164
       The refundable jobs creation credit or job retention  165
credit under division (A) of section 5751.50 of the Revised  166
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As Introduced
Code.  167
        (B) For any credit except the refundable credits  168
enumerated in this section, the amount of the credit for a tax  169
period shall not exceed the tax due after allowing for any other  170
credit that precedes it in the order required under this  171
section. Any excess amount of a particular credit may be carried  172
forward if authorized under the section creating the credit.  173
        Section 2. That existing section 5751.98 of the Revised  174
Code is hereby repealed.  175
        Section 3. The amendment or enactment by this act of  176
sections 5751.55 and 5751.98 of the Revised Code applies to  177
qualifying expenses, as that term is defined in section 5751.55  178
of the Revised Code, incurred on and after January 1, 2027.  179
        Section 4. This act shall be known as the Joining-  180
Opportunities Businesses and Schools (JOBS) Act.  181