OH HB790

Allows a tax credit against income tax or commercial activity tax for qualifying individuals or employers who make payments on student loans obtained to earn a bachelor's or associate's degree from an Ohio state institution of higher education on or after January 1, 2014.

Qualifying individuals must be Ohio residents employed for an average of 16+ hours per week, self-employed, or deployed for military service during the tax period the credit is claimed.

Credit amount is based on benchmark monthly payment (calculated using 10-year federal Stafford loan rates) compared to actual monthly payment; if actual payment exceeds benchmark, the benchmark amount times number of payment months is credited.

For loans from non-Ohio institutions covering up to 30 credit hours before transfer to Ohio institution, credit is reduced to 50% for associate's degrees or 75% for bachelor's degrees.

Principal loan caps set at $9,700 for bachelor's degrees and $3,950 for associate's degrees in 2017, adjusted annually by the tax commissioner based on gross domestic product deflator; excess credits carry forward for up to 10 years.