COLUMBUS – State Senator Joe Schiavoni (D-Canfield) testified this week at a meeting of the Senate Ways and Means Committee on behalf of Senate Bill 198, a tax credit designed to keep more college graduates in Ohio.
Senator Joe Schiavoni recently introduced SB 198, which would grant an income tax credit to individuals earning degrees in science, technology, engineering or math (STEM) related fields of study. The bill would provide income tax credits as follows: $10,000 for a master’s or doctoral degree, $5,000 for a baccalaureate degree and $1,000 for an associate’s degree.
“As we build and grow Ohio’s economy for the future, we must do all we can to keep our brightest young minds in the state,” said Senator Schiavoni. “This bill can help stop the brain drain that happens when new graduates move out of Ohio to pursue their careers.”
The bill is similar to House Bill 123, sponsored by Representatives Jay Goyal (D-73) and Josh Mandel (R-17), but reduces the credit amount for each degree. HB 123 calls for the following reductions: $30,000 for a master’s or doctoral degree, $20,000 for a baccalaureate degree and $5,000 for an associate’s degree.
“When I first chose to pursue this bill, cost was a main concern and a reason why HB 123 has received little attention,” said Senator Schiavoni during his sponsor testimony. “I’ve significantly lowered the dollar amounts per degree which lessens the burden for the state, while still providing incentive for future graduates to remain in Ohio.”
The summary for SB 198 is as follows:
- Allows a nonrefundable income tax credit for an Ohio resident who has earned a degree in science, technology, engineering, or math-based fields of study after the effective date of the bill.
- Allows a $1,000 credit for an associate's degree; $5,000 for a baccalaureate degree; and $10,000 for a master's or doctoral degree.
- Allows an individual to receive additional credits for obtaining more advanced degrees.
- Requires the recapture and forfeiture of the credit if the claimant does not remain an Ohio resident for five years.