S.B. No. 264 Summary

• Establishes a nonrefundable tax credit for businesses that directly pay employee education loan principal and interest, equal to 25% of payments made, capped at $1,500 per employee per calendar year.

• Allows businesses employing Ohio residents to apply biannually to the chancellor of higher education, with applications due August 15 (for January-June payments) or February 15 (for July-December payments).

• Requires applications include business taxpayer information, employee details, institution of higher education attended, specific payment amounts and dates, and the tax against which the credit will be claimed.

• Prohibits credits for employees who own a controlling interest in the business or are related by blood or marriage to a controlling owner; allows credits for formerly employed individuals if payments were made while employed.

• Amends tax credit claiming procedures in five tax code sections (5725.98, 5726.98, 5729.98, 5747.98, 5751.98) to establish the priority order for claiming this new education loan repayment credit against various state tax liabilities.