The bill amends section 5747.98 and enacts section 5747.87 of the Revised Code to introduce a nonrefundable income tax credit for small employers who provide their employees with an individual coverage health reimbursement arrangement (HRA). Specifically, the new section defines an "individual coverage health reimbursement arrangement" and establishes eligibility criteria for employers to qualify for the tax credit. Employers with one to fifty employees who contribute at least $400 per employee to the HRA during the taxable year can claim a credit equal to $400 multiplied by the number of employees covered. Additionally, owners of pass-through entities can claim a proportionate share of the credit.

The bill also modifies the order in which taxpayers must claim various tax credits, adding the new individual coverage health reimbursement arrangement credit to the list. Furthermore, it repeals the existing section 5747.98, which previously outlined the procedures for calculating aggregate tax liability. The provisions of the new section 5747.87 will apply to taxable years ending on or after the effective date of the bill.

Statutes affected:
As Introduced: 5747.98