The bill amends section 5747.01 of the Revised Code to introduce a state income tax deduction for overtime wages, allowing workers to deduct these additional earnings from their taxable income for the first taxable year ending after the effective date and for the following seven years. This deduction is applicable only if the overtime wages have not been deducted or excluded in computing federal or Ohio adjusted gross income for that taxable year. The bill also clarifies that terms not defined within the section will retain their meanings as per federal income tax laws or as defined in another section of the Revised Code, reflecting a broader effort to support workers through tax relief measures.

Additionally, the bill addresses the taxation of irrevocable inter vivos trusts and qualifying transfers, specifying conditions under which asset transfers to a trust can occur. It introduces new definitions related to taxable income for estates and trusts, including terms like "modified business income" and "qualifying trust amount," and details how to calculate Ohio taxable income for trusts. The bill also clarifies the ownership and recognition of physical assets by qualifying investees in pass-through entities, establishing ownership criteria based on equity recognition. Overall, the bill aims to refine the tax framework for trusts and enhance compliance with state tax regulations while promoting economic activity and supporting taxpayers in Ohio.

Statutes affected:
As Introduced: 5747.01