OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
S.B. 159 Bill Analysis
135th General Assembly
Click here for S.B. 159’s Fiscal Note
Version: As Introduced
Primary Sponsor: Sen. O’Brien
Effective date:
Andrew Little, Attorney
SUMMARY
 Authorizes a nonrefundable credit against the state income or commercial activity tax
for donations to a certified Ohio nonprofit pregnancy resource center that primarily
serves Ohio residents and offers free or low cost pregnancy resources and assistance.
 Allows the credit and any carryforwards to reduce up to 50% of a taxpayer’s tax liability,
without accounting for any other credits.
 Requires the Tax Commissioner to administer an application process to certify
credit-eligible pregnancy resource centers that meet certain criteria.
DETAILED ANALYSIS
Credit for donations to certified pregnancy resource centers
The bill authorizes a nonrefundable tax credit against the state income or commercial
activity tax (CAT) for donations to a pregnancy resource center that is certified by the
Department of Taxation as meeting certain criteria (see “Certification,” below).
Applying for the credit
A person that donates cash to a certified pregnancy resource center during a calendar
year may apply to the Tax Commissioner for the credit. An application must state the amount of
the donation, the tax against which the taxpayer will claim the credit, and any other
information the Commissioner requires, and it must be submitted with a dated receipt or other
document from the certified center verifying the donation.
The Commissioner must review credit applications in the order they are received and
issue a determination on each application within 30 days after receipt. The Commissioner must
provide a reason if an application is denied or, if approved, a tax credit certificate listing the
amount of the credit the applicant may claim and the tax it can be claimed against (see,
“Claiming the credit,” below).
November 13, 2023
Office of Research and Drafting LSC Legislative Budget Office
Approved credits are for the amount of the underlying donation, but no more than $10
million in credits for donations to certified centers may be approved in a calendar year, and no
more than $5 million in credits may be approved for donations to the same certified center in a
calendar year.1
Claiming the credit
A person that has been issued a tax credit certificate must claim the credit against the
tax listed on the certificate. If claimed against the CAT, the credit must be claimed for the tax
period, i.e., the calendar quarter, in which the certificate was issued; if claimed against the
income tax, it must be claimed for the taxable year the certificate was issued. The credit may
reduce up to 50% of the taxpayer’s tax liability, before accounting for any other tax credits. If
the credit exceeds 50% of the tax liability, the unused amount may be carried forward and
claimed against up to 50% of the taxpayer’s tax liability for up to the five following years.2
For credits against the income tax, if the tax credit certificate is issued to a pass-through
entity (PTE), such as an LLC or partnership, it may be allocated amongst the PTE’s owners. The
allocation may be made in proportion to the owners’ interests in the entity, or in any amounts
the owners agree. Once allocated amongst the owners, they may claim it against their
individual income tax liability.3
Certification
To make its donors eligible for the credit, a qualifying pregnancy resource center must
apply to be certified by the Tax Commissioner as meeting all of the following criteria:
 It is a 501(c)(3) organization;
 It has its principal office or a presence in Ohio;
 At least 50% of its clients claim to be Ohio residents;
 Its principal purpose is to provide free or low-cost assistance, which may include
pregnancy testing, ultrasounds, counseling, material support, and similar services for
pregnant women carrying their pregnancies to term;
 It is not a hospital, nursing home, or residential care facility;
 It does not perform, promote, or contract with an organization that performs
nontherapeutic abortions, and is not affiliated (e.g., has certain legal ownership or
control relationships) with a person that performs or promotes nontherapeutic
abortions. A nontherapeutic abortion is one that is performed or induced when the life
of the mother would not be endangered if the fetus were carried to term or when the
1 R.C. 5751.55(C).
2 R.C. 5747.74(B) and (C) and 5751.55(E).
3 R.C. 5747.74(C).
P a g e |2 S.B. 159
As Introduced
Office of Research and Drafting LSC Legislative Budget Office
pregnancy of the mother was not the result of rape or incest reported to a law
enforcement agency.4
After receiving an application for certification, the Commissioner must determine
whether the applicant meets these requirements and notify the applicant whether certification
is granted within 30 days.
A certification does not expire at any particular interval. The Commissioner may,
however, periodically request recertification. If the Commissioner does so, the certified center
must resubmit all of the information required for initial certification and any other information
the Commissioner requires to determine the center is still a qualifying pregnancy resource
center. Additionally, a certified center must notify the Tax Commissioner of any changed
circumstances that might affect eligibility within 60 days of their occurrence. The Commissioner
is required to revoke certification of any center that no longer meets the qualifications
described above.
The Tax Commissioner must maintain and post a list of all pregnancy resource centers
that meet the certification requirements on the Department of Taxation’s website.5
HISTORY
Action Date
Introduced 09-19-23
ANSB0159IN-135/ts
4 R.C. 5751.55(A)(4).
5 R.C. 5751.55(B).
P a g e |3 S.B. 159
As Introduced


Statutes affected:
As Introduced: 5747.98, 5751.98