The bill, introduced by Representatives McNally and Lett, seeks to amend sections of the Revised Code to establish a new refundable tax credit called the "thriving families tax credit." This credit is designed to assist individual taxpayers with qualifying children and a household income not exceeding $85,000, providing $1,000 for each child under six and $500 for other qualifying children. The credit will be gradually reduced for households earning over $65,000. Additionally, the bill includes provisions for the tax commissioner to request supporting documentation from taxpayers claiming this credit and allows for electronic filing options that enable taxpayers to direct refunds into various accounts.

In conjunction with the new tax credit, the bill introduces several amendments to existing tax laws, including clarifications on definitions related to business and nonbusiness income, and adjustments to the treatment of income and deductions for trusts and estates. It specifies that transfers to trusts due to a decedent's will are subject to taxation and allows the tax commissioner to adopt rules regarding the residency of trusts. The bill also modifies the definition of "taxable income" for estates and trusts, aligning it with individual income computations, and introduces new definitions for terms relevant to pass-through entities. Overall, the bill aims to provide targeted tax relief to families and streamline the taxation process for trusts and estates while promoting economic growth in Ohio.

Statutes affected:
As Introduced: 5747.01, 5747.08, 5747.98