Bill > HB69

This bill amends Ohio tax law to allow taxpayers to fully deduct bonus depreciation and enhanced expensing allowances in a single year that they deduct for federal income tax purposes. Specifically, the bill modifies sections of the Ohio Revised Code related to how taxpayers calculate their state income tax, removing previous requirements that mandated taxpayers add back a portion of their depreciation expenses. Under the prior law, taxpayers were required to add back five-sixths of certain depreciation expenses and could then deduct portions of that amount in subsequent years. The new bill eliminates this add-back requirement and allows taxpayers to immediately deduct the full amount of depreciation expenses they claim on their federal tax return. The changes apply to taxable years beginning before January 1, 2025, and provide a mechanism for taxpayers to deduct any previously added back depreciation expenses. By aligning state tax treatment more closely with federal tax treatment for depreciation, the bill aims to simplify tax calculations and potentially provide more immediate tax benefits for businesses and individuals making capital investments.

Budget and Finance

https://www.legislature.ohio.gov/legislation/136/hb69