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SB 462

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

136th Legislature (2025-2026) Introduced by Jane Timken

Ohio will create Qualified Education Partnerships between colleges and private employers with tax credits (development 20% and $1,000 per graduate) to fund programs and job placeme

Introduced
#economicdevelopment #education #highereducation #taxation
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Bill Summary · SB 462

Executive summary

SB 462, introduced in Ohio’s 136th General Assembly, seeks to create the Joining-Opportunities Business and Schools (JOBS) Act. The bill would establish a framework for formal partnerships between institutions of higher education and private sector employers to develop degree or certificate programs aligned with local workforce needs, and it would create state tax incentives to encourage private investment in these partnerships. The incentives include a development tax credit for qualifying expenses and a hiring tax credit for job placements tied to the partnership, with rules governing administration, eligibility, and annual reporting.

Purpose and intent

  • To authorize and promote collaborative “qualified education partnerships” between higher education institutions and private sector partners.
  • To design programs that directly address regional labor market needs by aligning curricula with industry standards and ensuring substantial private sector involvement.
  • To use targeted tax incentives to stimulate private investment in the development and operation of these programs, and to encourage placement of graduates in employment.

Key provisions

Definitions and program establishment

  • Defines:
    • “Institution of higher education” to include Ohio colleges/universities or nonprofit institutions with a specific authorization.
    • “Private sector partner” as a private employer in Ohio participating in a qualified education partnership.
  • The chancellor of higher education, together with the director of development, would establish the Qualified Education Partnership Program.
  • Partnerships require private sector input into curriculum, significant resource contributions, and a program that leads to a recognized degree or credential.
  • Institutions must maintain academic control and ensure compliance with laws and accreditation standards.
  • Institutions must notify the chancellor of partnerships; the chancellor certifies partnerships to the Department of Taxation for tax credit eligibility.
  • Annual public reporting by participating institutions on completion rates and job placements.

Marketing and transparency

  • Partnerships must be described clearly in all marketing materials and enrollment documents.
  • Materials must explain careers targeted by the program.

Revenue sharing and administration

  • Revenue-sharing arrangements must comply with U.S. Department of Education guidance on bundled services and incentive compensation.
  • The chancellor and director of development may adopt rules to administer the section.

Tax credits (Sec. 5751.55)

  • “Qualified education partnership” and “qualifying expenses” are defined, with expenses including development costs, equipment donations, and related staff costs.
  • Development tax credit (for private sector partners):
    • Eligible if the partnership achieves a 70% completion rate within the first two years.
    • Credit equals 20% of qualifying expenses incurred in the 18 months preceding the end of the first program year (or after an update, the 18 months before the end of the first year post-update).
    • Applications processed in the order received; credits certified by the Tax Commissioner.
  • Hiring tax credit (for private sector partners):
    • Eligible if the partnership achieves a 70% job placement rate.
    • Credit amount: $1,000 for each graduate hired and retained for at least 12 months, or placed in substantially similar employment in the same industry.
    • The total credits for a partnership cannot exceed its qualifying expenses basis for the development credit.
  • Tax credits are nonrefundable and may be claimed against the tax liability in the prescribed order, with potential carryforwards as provided.

Related and administrative provisions

  • The existing tax-credit ordering provisions (Sec. 5751.98) would be amended and align with the new credits.
  • Effective date for the amendments: qualifying expenses incurred on or after January 1, 2027.
  • The act is to be known as the Joining-Opportunities Businesses and Schools (JOBS) Act.

Who is affected

  • Institutions of higher education in Ohio (including nonprofit entities with specific authorization).
  • Private sector employers/partners in Ohio that participate in qualified education partnerships.
  • Students enrolled in the partnered programs, who could gain degrees or certificates aligned with labor market needs.
  • Ohio Department of Taxation and the Chancellor of Higher Education (administrative recipients and administrators of the program and credits).

Procedural and timeline highlights

  • Introduction date: June 25, 2026.
  • The tax credits would apply to qualifying expenses incurred starting January 1, 2027.
  • Applications for development and hiring credits are to be processed in submission order, with determinations issued for each application.
  • Credits are nonrefundable and designed to offset tax liability with specific ordering rules for multiple credits.

Potential impact

  • Encourages private investment in higher-education programs tailored to local workforce needs.
  • Increases collaboration between colleges and private employers, potentially improving curriculum relevance and graduate employment outcomes.
  • Creates a new financial incentive structure (two-tiered credits) to support program development and successful placement of graduates.
  • Requires participating institutions to publish performance data (completion and job placement), enhancing transparency.
  • Establishes administrative processes and timelines for certification and credit distribution, with a firm 2027 eligibility start for expenses.

Note: This summary reflects the introduced text. Final form may include modifications that affect scope, administration, or eligibility.

Compiled from official sources — confirm details with the bill’s official record.

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