The bill proposes several amendments to the Revised Code, primarily aimed at simplifying tax deductions and enhancing tax efficiency for taxpayers in Ohio. It allows taxpayers to deduct the full bonus depreciation and enhanced expensing allowances in a single year, aligning state tax deductions with federal regulations. Key modifications include the deletion of previous requirements for qualifying entities to add or deduct certain amounts, enabling them to directly deduct amounts permitted for federal tax purposes. The bill also clarifies definitions related to qualifying investors and entities, ensuring consistency with federal tax laws.

Additionally, the bill introduces new deductions for various forms of income, including loan repayments under the rural practice incentive program, and modifies the treatment of depreciation expenses. It streamlines existing provisions by clarifying definitions related to medical care and insurance premiums, while also removing outdated language regarding depreciation calculations. The bill further establishes new definitions for terms such as "qualifying section 179 depreciation expense" and "business income," aiming to provide clearer guidelines and additional tax relief for various groups and circumstances within Ohio. Overall, the bill seeks to enhance tax compliance and provide immediate benefits to businesses and individuals.

Statutes affected:
As Introduced: 5733.40, 5747.01, 5747.05