Enact the Joining-Opportunities Business and Schools (JOBS) Act

sb462_00_IN

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.