Effective: September 23, 2022
Latest Legislation: House Bill 583 - 134th General Assembly
(A) As used in this section:
(1) "Eligible employee" means an employee who is nineteen years of age or younger and enrolled in a career-technical education program approved under section 3317.161 of the Revised Code.
(2) "Eligible compensation" means compensation paid on and after the effective date of this section from which the employer is required to deduct and withhold income tax under section 5747.06 of the Revised Code.
(B) A nonrefundable credit is allowed against a taxpayer's aggregate tax liability under section 5747.02 of the Revised Code for a taxpayer that holds a tax credit certificate issued under this section. The credit equals the amount listed on the certificate and shall be claimed for the taxable year that includes the last day of the calendar year for which the certificate was issued. The credit shall be claimed in the order required under section 5747.98 of the Revised Code.
(C) An employer that is a taxpayer or a pass-through entity and that employs an eligible employee in fulfillment of a work-based learning experience, internship, or cooperative education program associated with the career-technical education program in which the eligible employee is enrolled may apply to the department of education for a tax credit certificate. The application shall be made on forms prescribed by the department, in consultation with the tax commissioner, on or after the first day of January and on or before the first day of February of each year. The application shall include all of the following information for the calendar year preceding the year in which the application is made:
(1) The amount of eligible compensation paid by the applicant to each of its eligible employees;
(2) The name, birth date, and social security number of each eligible employee employed by the applicant;
(3) The career-technical education program in which each eligible employee is enrolled;
(4) A description of each eligible employee's duties as part of the employee's work-based learning experience, internship, or cooperative education program;
(5) Any other information requested by the department.
(D)(1) After determining that the applicant satisfies the conditions described in division (C) of this section, the department of education shall issue, within sixty days after the receipt of a complete application under that division, a tax credit certificate to the applicant equal to the lesser of (a) fifteen per cent of the eligible compensation paid by the applicant to all eligible employees during the calendar year or (b) five thousand dollars per eligible employee, in either case subject to the limitations in division (D)(2) of this section.
(2) If the applicant pays eligible compensation to an employee who ceases to qualify as an eligible employee during the calendar year, only the eligible compensation paid to the employee while the employee qualified as an eligible employee may be used to calculate the credit amount on a tax credit certificate issued under this section. The department shall not issue certificates in a total amount that would cause the tax credits claimed in any fiscal biennium to exceed five million dollars.
(3) Each tax credit certificate issued under this section shall include a unique identification number and shall state the amount of tax credit that may be claimed. A taxpayer claiming the credit allowed under this section shall submit a copy of the certificate with the taxpayer's return or report.
(E) If a tax credit certificate is issued to a pass-through entity under this section, any taxpayer that is a direct or indirect investor in the pass-through entity on the last day of the entity's taxable year ending in the calendar year for which the certificate was issued may claim the taxpayer's distributive or proportionate share of the credit against the taxpayer's aggregate tax liability under section 5747.02 of the Revised Code.
(F) For the purpose of issuing tax credit certificates under this section, the department of education may request from any of the following entities the data verification code assigned under division (D)(2) of section 3301.0714 of the Revised Code to any student who is included on an application made pursuant to division (C) of this section as an eligible employee:
(1) The student's resident district;
(2) The district or school offering the career-technical education program in which the student is enrolled;
(3) The independent contractor engaged to create and maintain student data verification codes.
The department may not release a data verification code received under this division to any person except as authorized by law. Any document related to the tax credit authorized under this section that the department maintains in its files that contains both a student's name or other personally identifiable information and the student's data verification code is not a public record as defined in section 149.43 of the Revised Code.
Last updated July 11, 2022 at 12:42 PM
Structure Ohio Revised Code
Section 5747.01 | Definitions.
Section 5747.011 | Gain or Loss Included in Trust's Ohio Taxable Income.
Section 5747.012 | Tax Treatment of Qualifying Investment Income From Pass-Through Entity.
Section 5747.013 | Calculating a Trust's Modified Ohio Taxable Income.
Section 5747.021 | School District Income Tax.
Section 5747.022 | Tax Credits for Exemptions.
Section 5747.024 | Military Pay Not Included in Adjusted Gross Income.
Section 5747.025 | Personal Exemptions.
Section 5747.026 | Extensions for Filing and Payment by Members Called to Active Duty.
Section 5747.03 | Distributing Income Tax Revenue.
Section 5747.031 | Separate Reporting of Business and Nonbusiness Income Tax Revenues.
Section 5747.04 | Attributing Tax Receipts to County.
Section 5747.05 | Tax Credits.
Section 5747.054 | Tax Credit Based on Federal Dependent Care Credit.
Section 5747.055 | Tax Credit for Retirement Income.
Section 5747.057 | Tax Credit for Career-Technical Education Program Employees.
Section 5747.058 | Tax Credits to Foster Job Creation or Retention.
Section 5747.06 | Employer's Duty to Withhold Tax.
Section 5747.061 | Withholding Tax From Wages of Nonresident Employees.
Section 5747.062 | Withholding Tax From State Lottery Winnings.
Section 5747.063 | Withholding From Casino and Sports Gaming Winnings.
Section 5747.064 | Withholding From Video Lottery and Sports Gaming Winnings.
Section 5747.07 | Employers to File Return and Pay Withholding.
Section 5747.071 | Withholding Tax From Retirement Benefits.
Section 5747.072 | Employers Remitting Taxes by Electronic Funds Transfer.
Section 5747.08 | Filing Income Tax Return.
Section 5747.082 | Use of Electronic Filing by Tax Preparers.
Section 5747.083 | Report or Payment of Use Tax on Personal Income Tax Return.
Section 5747.09 | Declaration of Estimated Taxes.
Section 5747.10 | Amended Returns.
Section 5747.11 | Refunds - Interest.
Section 5747.112 | Paying Refund of School District Income Taxes.
Section 5747.113 | Income Tax Refund Contribution System.
Section 5747.12 | Applying Refund to Satisfy Debt to State.
Section 5747.121 | Collecting Child Support From Refunds.
Section 5747.122 | Collecting Overpayments of Public Assistance From Refunds.
Section 5747.123 | Collecting Overpaid Child Support From Refunds.
Section 5747.13 | Liability of Employer for Failure to File Return or Collect or Remit Tax.
Section 5747.132 | Eliminating Interest or Penalty on Qualifying Refund Overpayment.
Section 5747.14 | Imposing Jeopardy Assessments.
Section 5747.15 | Failure to File or Remit Tax - Filing Frivolous, Dilatory or Fraudulent Claim.
Section 5747.16 | Secretary of State Agent for Service of Process on Nonresidents.
Section 5747.17 | Maintaining Records.
Section 5747.18 | Powers of Tax Commissioner.
Section 5747.19 | Filing Incomplete, False, and Fraudulent Returns.
Section 5747.20 | Allocating Nonbusiness Income or Deduction.
Section 5747.21 | Apportioning Business Income or Deduction.
Section 5747.22 | Apportioning and Allocating Income and Deductions of Pass-Through Entities.
Section 5747.221 | Items of Income and Deductions Not to Be Allocated or Apportioned to Ohio.
Section 5747.23 | Taxing Trust Income.
Section 5747.24 | Presumption of Domicile.
Section 5747.26 | Lead Abatement Tax Credit.
Section 5747.29 | Political Campaign Contribution Tax Credit.
Section 5747.30 | Exemption for Nonresident Pass-Through Entities as to Commercial Printing.
Section 5747.37 | Credit for Legally Adopted Minor Child.
Section 5747.38 | Pass-Through Entity Income Tax.
Section 5747.39 | Pass-Through Entity Owner Credit.
Section 5747.40 | Definitions Relating to Qualified Pass-Through Entities.
Section 5747.42 | Filing Annual Return.
Section 5747.43 | Filing Estimated Tax Return and Making Estimated Payments.
Section 5747.44 | Tax Payment by Electronic Funds Transfer.
Section 5747.46 | Library and Local Government Support Fund Definitions.
Section 5747.48 | Distribution of County Library and Local Government Support Fund.
Section 5747.49 | Prohibiting Later Performance of Duties.
Section 5747.501 | Estimating and Certifying Amount for Distribution Into Local Government Fund.
Section 5747.502 | Reports on Fines Resulting From Traffic Law Photo-Monitoring Devices.
Section 5747.503 | Payments to County Undivided Local Government Funds of Supplement for Townships.
Section 5747.51 | Allocating Local Government Fund to County Undivided Local Government Funds.
Section 5747.52 | Calculating Subdivision Share of Undivided Local Government Fund.
Section 5747.54 | Failure to Certify Percentage Share of the Undivided Local Government Fund.
Section 5747.55 | Appealing County Budget Commission Action.
Section 5747.60 | Delegating Investigation Powers of Tax Commissioner.
Section 5747.70 | Deductions for Contributions to College Savings Programs.
Section 5747.71 | Earned Income Tax Credit.
Section 5747.72 | Credit for Home Instruction Expenses.
Section 5747.73 | Credit for Donations to Scholarship Organizations.
Section 5747.75 | Credit for Dependents Who Attend Nonchartered Nonpublic School.
Section 5747.76 | Refundable Income Tax Credit for Owner of Rc 149.311 Certificate.
Section 5747.77 | Beginning Farmer Tax Credits.
Section 5747.78 | Deductions for Amounts Contributed to Able Savings Account.
Section 5747.79 | Deduction for Capital Gains From Sale of Business.
Section 5747.80 | Issuance of Tax Credits by Ohio Venture Capital Authority.
Section 5747.81 | Tax Credit for Holders of Small Business Investment Certificate.