H.B. 523 Summary

• Establishes the STEM Degree Loan Repayment Program, administered by the chancellor of higher education, operating from July 1, 2021 through June 30, 2026, providing annual grants of $2,000 for associate's degrees and $6,000 for bachelor's degrees in STEM fields to eligible Ohio residents employed in STEM-related jobs.

• Creates a refundable employer tax credit equal to 50% of STEM student loan payments made by businesses on behalf of eligible employees, capped at $2,000 per employee with an associate's degree or $6,000 per employee with a bachelor's degree, with a total credit limit of $15 million.

• Appropriates $15 million from the General Revenue Fund to the STEM Degree Loan Repayment Program Fund to support direct loan repayment grants, with unused balances eligible for reappropriation to the following fiscal year.

• Requires eligible participants to be Ohio residents with STEM degrees from in-state institutions, employed in STEM-related fields, and limits individual participation to a maximum of five years of program benefits.

• Amends tax credit ordering provisions in income tax codes to add the STEM student loan payment credit as a refundable credit claim against multiple tax types.