OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 578 Bill Analysis
135th General Assembly
Click here for H.B. 578’s Fiscal Note
Version: As Introduced
Primary Sponsor: Rep. White
Effective date:
Andrew Little, Attorney
SUMMARY
 Authorizes a nonrefundable income tax credit of up to $100,000 per year based on 50%
of the taxpayer’s cash donations to a qualifying child care program.
DETAILED ANALYSIS
The bill authorizes a nonrefundable income tax credit for cash donations to a qualifying
child care program, which encompasses a broad range of programs, including a child care
center, family child care home, preschool program, school child program, or child day camp.
The credit is available only for donations made after the bill’s 90-day effective date.1
The credit equals 50% of the taxpayer’s donations during the taxable year, but the total
credit may not exceed $100,000 per year. Because the credit is nonrefundable, it can, at most,
reduce a taxpayer’s tax liability to zero; it will not result in a refund of any amounts beyond that
liability, and the bill does not provide for a carry forward of unclaimed amounts to future
taxable years.
The credit can be claimed by an individual taxpayer or by a taxpayer that is a direct or
indirect investor in a pass-through entity that makes a qualifying donation. If claimed by an
investor, the credit is claimed as a portion of the donation, equal to the proportion of the
investor’s proportionate or distributive share in the entity, but the total credit amount among
all investors on the basis of the entity’s donations in a year may not exceed $100,000.
Generally, a taxpayer may not claim the credit if the taxpayer is receiving services from
the child care program. But, if the taxpayer or pass-through entity making the donation is an
employer and receives a discount for services for employees, the taxpayer or entity’s investors
may claim the credit.
1 Section 3.
June 10, 2024
Office of Research and Drafting LSC Legislative Budget Office
In order to claim the credit, the donor must submit proof of the donation, as well as a
statement from the child care program that the donation will be used to cover the program’s
operating and capital expenses.2
HISTORY
Action Date
Introduced 05-15-24
ANHB0578IN-135/ks
2 R.C. 5747.86 and 5747.98.
P a g e |2 H.B. 578
As Introduced


Statutes affected:
As Introduced: 5747.98