OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 576 Bill Analysis
135th General Assembly
Click here for H.B. 576’s Fiscal Note
Version: As Introduced
Primary Sponsors: Reps. White and Abrams
Effective date:
Zachary P. Bowerman, Attorney
SUMMARY
 Authorizes a nonrefundable tax credit for an employer that provides certain child care
benefits to its employees.
 Allows the credit to be claimed against the commercial activity tax, income tax, motor
fuel supplier tax, domestic or foreign insurance company tax, public utility excise taxes,
or financial institutions tax.
 Allows the credit for costs associated with establishing or operating an employer-owned
child care facility, contracting with a child care facility, or paying employees for the
provision of their own child care.
 Limits the credit to $500,000 of eligible expenses per calendar year.
DETAILED ANALYSIS
Employer-provided child care credit
The bill authorizes a nonrefundable tax credit for an employer that provides certain
child care benefits to its employees. The credit may be claimed against the commercial activity
tax, income tax, motor fuel supplier tax, domestic or foreign insurance company tax, public
utility excise taxes, or financial institutions tax. Credit-eligible employer expenses include
amounts paid to employees for child care at a licensed child care program and any other
amounts that would qualify as a child care expenditure for purposes of a federal
employer-provided child care credit.1 The federal credit may be claimed for such costs as those
associated with acquiring, constructing, rehabilitating, or expanding a child care facility;
operating expenses for such a facility including amounts paid to employ or support child care
1 R.C. 5751.56(A)(1).
June 7, 2024
Office of Research and Drafting LSC Legislative Budget Office
workers through training and scholarship programs; and amounts paid to contract with a
facility to provide child care services to employees.2
Application process and credit limit
To receive the credit, an employer must apply to the Tax Commissioner on or before
January 15 for eligible expenses incurred in the preceding calendar year. The employer
must state the amount of expenses and which tax the credit will be claimed against. The
Commissioner must evaluate applications in the order in which they are received and either
issue a tax credit certificate if approved or otherwise state the reason for denial of the
application. The amount of credit equals 100% of the employer’s eligible expenses incurred in
the preceding year, up to $500,000.3 Applications may be submitted beginning on January 1
following the bill’s 90-day effective date.4
Claiming the credit and carry forward
An employer issued a certificate may claim the credit against tax liability for the
preceding tax period, taxable year, or calendar year, as applicable, relative to the issuance of
the certificate or on the first return or report due after issuance of the certificate in the case of
the public utilities taxes. Any excess credit may be carried forward for up to five years.5 The bill
authorizes pass-through treatment of the credit for income tax purposes.6
HISTORY
Action Date
Introduced 05-15-24
ANHB0576IN-135/sb
2 26 United States Code 45F(c)(1)(A).
3 R.C. 5751.56(B).
4 Section 3.
5 R.C. 5725.38, 5726.61, 5727.242, 5727.301, 5729.21, 5736.51, 5747.86, and 5751.56(D).
6 R.C. 5747.86(B).
P a g e |2 H.B. 576
As Introduced


Statutes affected:
As Introduced: 5725.98, 5726.98, 5729.98, 5747.98, 5751.98