Bill > HB231

This bill enacts the Paid Parental Leave Act, which creates a tax credit for qualifying employers who provide paid parental leave to their employees. The bill defines a "qualifying employee" as a parent or legal guardian who experiences the birth, adoption, or stillbirth of a child, and a "qualifying employer" as a business registered with the e-verify employment verification program that offers at least 56 days of parental leave benefits. The tax credit allows employers to claim up to $300 per day of paid parental leave, with a maximum annual credit of $54,000 per employee. To be eligible, the parental leave benefits must equal the employee's regular compensation and cannot reduce other paid leave time. The credit is nonrefundable and can be carried forward for up to three tax years. Employers must provide documentation to support their credit claims, and the tax commissioner will issue an annual report on the credits claimed. The provisions of this bill will apply to taxable years beginning on or after January 1, 2025, and is designed to encourage businesses to provide more comprehensive paid parental leave benefits to their employees.

Budget and Finance

https://www.legislature.ohio.gov/legislation/136/hb231