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" for eligible income taxpayers with minor children. This credit is designed to provide financial relief to families, with a maximum amount of $1,000 for each qualifying child under six years old and $500 for other qualifying children. The credit will be reduced by $50 for every $1,000 of household income exceeding $65,000, and taxpayers will need to provide documentation to claim the credit. The bill also includes new definitions for terms such as "qualifying child," "household," and "household income," and it outlines a new order for claiming tax credits.

In addition to the thriving families tax credit, the bill introduces several amendments to the tax code, including provisions for pass-through entities and trusts. It clarifies the tax treatment of various income sources, allows for the deduction of refund amounts from the thriving families tax credit, and specifies how to handle income taxes in adjusted gross income calculations. The bill also addresses the taxation of transfers to trusts and introduces new definitions related to trusts and estates. Overall, the legislation aims to enhance tax benefits for families and streamline tax reporting processes while ensuring compliance with state tax regulations.

Statutes affected:
As Introduced: 5747.01, 5747.08, 5747.98