Bill > HB167

This bill establishes a nonrefundable tax credit program for employers who incur eligible child care expenses, which are defined as amounts qualifying under the federal Internal Revenue Code's child care expenditure provisions and payments made to employees for child care at licensed child care programs. Employers can apply to the tax commissioner for a credit equal to the lesser of $500,000 or their total eligible child care expenses from the previous calendar year. The tax credit can be claimed against several different state taxes, including corporate franchise tax, financial institutions tax, and personal income tax, and any excess credit can be carried forward for up to five to nineteen tax periods depending on the specific tax type. Employers must submit their applications by January 15th, and the tax commissioner will evaluate and approve or deny applications in the order received. The bill amends multiple sections of the Ohio Revised Code to integrate this new tax credit into existing tax credit structures, ensuring a systematic approach to claiming credits that prevents double-claiming and establishes a clear order of credit application. The new tax credit provisions will apply to applications submitted on or after the first January following the bill's effective date, providing a clear implementation timeline for businesses interested in claiming the credit.

Budget and Finance

https://www.legislature.ohio.gov/legislation/136/hb167