Business owners receive tax credit for hiring student employees: Learn more on Dec. 7th

On December 7, 2022, the Ohio Department of Education (ODE) will host a free webinar for business owners who want to learn how to receive tax credits for hiring student employees.

Any employer who is a taxpayer or a pass-through entity, such as a Limited Liability Company, subject to the State of Ohio income tax, and employs an eligible student can receive the tax credit. The student employee must be 19 years old or younger and involved in a work-based learning experience that is associated with an approved Career-Technical Education (CTE) pathway; such as enrolled in a high school or vocational school work-based learning experience. Such experiences can include a student enrolled in an internship or apprenticeship program, or those taking a Career-Based Intervention (CBI) or Family Consumer Sciences course. For more information about business and student eligibility, visit ODE's website or view them here.

Businesses can receive a tax credit of the lesser of $5,000 per eligible employee or 15% of wages paid to an eligible employee. To take advantage of the credit, participating businesses must complete an application in order to obtain a tax credit certificate from ODE. The tax credit certificate, showing the amount of credit available, is then submitted with the employer’s Ohio income tax return, providing a nonrefundable credit against their aggregate tax liability pursuant to section 5747.98 of the Ohio Revised Code. The total amount of funding is not to exceed $5 million within the state fiscal biennium (two-year period). Following the effective date of the new law on March 23, 2022, 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.

Businesses who wish to take advantage of this tax credit for 2023, must complete an application between January 1 and February 1, 2023. ODE is hosting a free webinar to review the tax credit application and certification process on Wednesday, December 7, 2022 at 11:00 a.m. Register here for the tax credit certificate webinar. For questions, contact Cadie Allen, Program Administrator, Office of Career-Technical Education, Ohio Department of Education

Finally, if a company is interested in starting a new work-based learning experience to benefit local students and earn tax credit, it should first identify the work-based learning opportunities that it can provide, such as paid internships or apprenticeships. The business should then connect with the local school administrators and career advisors to develop a partnership.