The bill amends sections of the Ohio Revised Code to enhance tax deductions for taxpayers, particularly focusing on aligning state tax laws with federal regulations. It allows taxpayers to deduct the full bonus depreciation and enhanced expensing allowances in a single year, simplifying the tax process for qualifying investors and beneficiaries. Key modifications include the deletion of previous requirements for adjustments to the distributive share of income for qualifying investors, enabling a straightforward deduction of amounts allowed under federal law. The bill also clarifies definitions related to qualifying entities and investors, aiming to streamline the deduction process for depreciation and expensing.

Additionally, the bill introduces new provisions allowing taxpayers to deduct income attributable to loan repayments under the rural practice incentive program, while also modifying the treatment of depreciation expenses by removing the requirement to add back a portion of these expenses for certain taxable years. It establishes a phased deduction approach for amounts previously added back due to depreciation and clarifies that no deductions will be available for depreciation contributing to a federal net operating loss carryback or carryforward. Overall, the bill seeks to provide more favorable tax treatment for specific expenses and clarify the rules surrounding deductions, thereby enhancing tax efficiency for individuals and businesses in Ohio.

Statutes affected:
As Introduced: 5733.40, 5747.01, 5747.05