The Ohio Department of Development has released updated guidelines for its Commercial Driver’s License Training Program, offering valuable opportunities for businesses to invest in workforce development while receiving significant tax benefits.
Program Overview
Ohio employers can now receive tax credits to offset costs associated with training employees for commercial driver’s licensure. The program supports up to half of qualifying training expenses, with businesses able to claim a maximum tax credit of $25,000 based on $50,000 in eligible expenditures.
Key Dates and Deadlines
Employers interested in participating should note the following timeline:
Application Phase:
Application access begins October 1, 2025
Submission window runs from October 6 through December 1, 2025
Award notifications will be issued by December 31, 2025
Training Period:
All training activities must occur between January 1 and December 31, 2026
Reporting Requirements:
Expense documentation due between January 1 and January 21, 2027
Tax credit certificates issued by March 22, 2027
Employment verification forms required between January 1 and January 21, 2028
Eligibility Requirements
To qualify for this program, employers must maintain registration with the Ohio Secretary of State and employ Ohio residents as W-2 employees. Organizations across all industries and company sizes are encouraged to apply, though state agencies are not eligible. Each employer may submit one application per cycle, covering multiple employees.
Trainees must be Ohio residents with verifiable addresses and must hold W-2 employee status when the tax credit is requested. Independent contractors and 1099 workers do not qualify.
Training Provider Options
Businesses have flexibility in selecting their training approach. External training providers must maintain active status on the Ohio-Approved CDL course provider registry through the Department of Public Safety. Internal trainers qualify when they possess at least two years of CDL driving experience.
Qualifying Training Programs
The program covers various credential levels and endorsements:
License Classes:
Class A licenses for vehicle combinations exceeding 26,001 pounds
Class B licenses for single vehicles over 26,001 pounds
Endorsements Include:
Tank vehicle operations
Hazardous materials transport
Combined tanker/hazmat certification
Doubles and triples hauling
Passenger transport
School bus operation
Training Requirements:
Class A programs require minimum 80 hours of combined classroom, range, and road instruction
Class B programs require minimum 40 hours of comprehensive training
Post-credential training and company-specific instruction also qualify
Eligible Expenses
Tax credits may be applied toward various training-related costs when paid directly by the employer, including tuition, internal instructor wages, pre-employment screening, physical examinations, endorsement fees, training materials, and certification expenses. Pre-training screening costs qualify regardless of whether candidates proceed with training.
Application Process
Applications will be evaluated on a first-come, first-served basis through the Development website. Upon approval, employers must pay a $400 servicing fee within 30 days. The program allocates funding until all eligible applications receive awards or available tax credits are exhausted.
Documentation Requirements
When requesting tax credit certificates, employers must provide comprehensive cost documentation including invoices, payment proof, and payroll records where applicable. External training requires clear payment verification showing the employer as the paying party. Internal training necessitates timesheets and certified training forms signed by both trainers and trainees.
Reporting Obligations
Employers must maintain records of employee participation and submit annual reports identifying any trainees whose employment was terminated during the program year. Complete training documentation, including licenses, certifications, and endorsements earned, must be submitted according to the specified deadlines.
Program Benefits
This initiative addresses the critical shortage of qualified commercial drivers while providing employers with financial incentives to invest in their workforce. The tax credit structure allows businesses to expand their operational capacity while controlling training costs.
For detailed information and application access, employers should visit the Development website. Questions regarding specific eligibility criteria or application procedures can be directed to the appropriate program administrators. If you need assistance navigating this program or determining how it might benefit your organization, please contact your HBK Advisor.
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