The bill amends sections 5701.11 and 5747.01 of the Revised Code to update Ohio tax law in accordance with changes to the Internal Revenue Code since March 7, 2025. Key changes include replacing the reference to "H.B. 14" with "S.B. 9" and updating the effective date for taxpayer elections regarding federal tax provisions from March 15, 2023, to March 15, 2025. This allows taxpayers to irrevocably elect to apply federal tax provisions for their taxable year, ensuring alignment with federal definitions and streamlining compliance. The bill also introduces new tax deductions for specific circumstances, such as qualified organ donation expenses, military service-related deductions, and provisions for educational grants and disaster work compensation.

Additionally, the bill revises definitions related to taxation, including terms like "business income" and "nonbusiness income," and establishes new provisions for the taxation of trusts, focusing on qualifying ratios and transfers. It clarifies that the qualifying ratio for a trust will be based on the fair market value of its assets, net of liabilities, and introduces new definitions for "modified business income" and "qualifying trust amount." The tax commissioner is granted authority to adopt rules for determining the portion of a trust that resides in Ohio. The bill also repeals existing sections 5701.11 and 5747.01 to streamline the legal framework, emphasizing the need for immediate implementation to reduce compliance costs for taxpayers in 2025.

Statutes affected:
As Introduced: 5701.11
As Reported By Senate Committee: 5701.11
As Passed By Senate: 5701.11
As Reported By House Committee: 5701.11, 5747.01
As Passed By House: 5701.11, 5747.01
As Reconsidered and Passed By House: 5701.11, 5747.01
As Enrolled: 5701.11, 5747.01