Tax Credit Certificate Program for Work-Based Learning Experiences

Following the March 23, 2022 effective date of the new law, the first biennial period will run from the effective date through June 30, 2023; the next biennial period will be from July 1, 2023 to June 30, 2025.

Business groups praised the passage of Senate Bill 166 that makes it easier for Ohio employers to train and hire student workers.

The legislation gives businesses financial incentives and creates a two-year pilot program that would allow a workers’ compensation premium discount to an employer with a work-based learning experience for student employees. An eligible employee means an employee who is nineteen years of age or younger and enrolled in an approved CTE pathway. To be considered enrolled in a CTE pathway, a student must be enrolled in at least one course within the approved pathway. Students enrolled in Career-Based Intervention and Family Consumer Sciences programs are eligible.

Eligible employers may receive the lesser of $5,000 per eligible employee or 15% of wages paid to an eligible employee. The tax credit certificate is submitted with the employer’s Ohio income tax return and provides a credit against aggregate tax liability. The total amount of funding is not to exceed $5 million within the state fiscal biennium (2-year period).

Application Process
1. Eligible employer meets with CTE partner to outline mutual goals of the work based learning experience, identify point persons for each organization and
review application.
2. Eligible employer submits application to the department.
3. Department approves or denies application.
4. If approved, the department sends tax credit certificate to business within 60
days of submission of the application.
5. Eligible employer submits tax credit certificate when filing annual Ohio income
tax return.

Additional information on SB 166 Tax Credit Certificate Program for Work Based Learning Experiences (ORC 5747.057) on the Ohio Department of Educations website.