Ohio colleges could partner with employers on job-focused programs

The chancellor of higher education and development director would establish a program for college and employer partnerships. An Ohio college or eligible nonprofit institution may partner with an Ohio private employer on a degree or certificate program that directly meets local workforce needs. Employers must significantly contribute to the curriculum and program resources. Programs must lead to a recognized degree or a credential useful across the labor market, and colleges must retain academic control and follow applicable laws and accreditation standards. The bill says its tax provisions apply to qualifying costs incurred on or after January 1, 2027.

A taxpayer with qualifying costs could apply to the tax commissioner for a development credit certificate. Qualifying costs include costs a private employer incurs to develop or significantly update a certified partnership program. The certified program must reach a 70% completion rate within its first two years, or within its first two years after a significant update. The credit would equal 20% of qualifying costs in the specified 18-month period, subject to the commissioner's approval. The credit is nonrefundable, and development and hiring credits together cannot exceed the qualifying costs used to calculate the development credit. Costs must be incurred on or after January 1, 2027. The 18-month cost window ends on the last day of the program's first year, or its first year after an update.

An employer partner with an awarded development credit could apply for a hiring credit certificate. The applicant must be the private employer partner of the certified program. The program must reach a 70% job placement rate, and the employer must receive a development credit under this section. The credit would be $1,000 for each graduate the employer hires and retains for at least 12 consecutive months, or places in substantially similar employment in the same industry. The commissioner must approve the application. Combined development and hiring credits cannot exceed the qualifying costs used to calculate the development credit. A graduate hired by the employer must be retained for at least 12 consecutive months.