The bill amends sections 5747.08 and 5747.98 of the Revised Code and enacts section 5747.87 to create a refundable income tax credit or rebate for homeowners and renters whose property taxes or a portion of their rent exceed five percent of their income. This provision aims to provide financial relief to eligible claimants, defined as individuals who have occupied a homestead for at least six months and whose total household resources do not exceed a specified threshold, set at a maximum of sixty thousand dollars. The bill outlines key definitions necessary for determining eligibility, including "claim year," "eligible claimant," "gross rent," and "qualifying homestead."

Additionally, the bill introduces a new credit for property taxes or rent-equivalent taxes paid under section 5747.87, which will be included in the list of business credits, ensuring that qualifying individuals can benefit from it when filing their tax returns. The credit or rebate is calculated based on the amount by which property tax due or rent-equivalent tax paid exceeds five percent of total household resources, with a cap of one thousand dollars for the first claim year and adjustments for subsequent years. The legislation also clarifies income sources excluded from total household resources and mandates the tax commissioner to publish annual limits for home value and rent, while repealing existing sections related to tax credits and establishing a new order for claiming credits.

Statutes affected:
As Introduced: 5747.08, 5747.98