The bill introduces nonrefundable tax credits for employer-provided child care expenditures by amending several sections of the Revised Code and enacting new provisions. Specifically, it adds definitions and outlines the eligibility and claiming process for these credits in sections 5725.39, 5726.62, 5727.242, 5727.301, 5729.22, 5736.51, 5747.87, and 5751.56. Taxpayers can claim these credits against various taxes, allowing them to offset their tax liabilities based on the amount stated in the tax credit certificate. The bill also allows for the carryforward of any excess credit amounts for up to five years, ensuring that taxpayers can benefit from the credits even if their tax liabilities are lower than the credit amounts in a given year.

Furthermore, the bill modifies the order in which taxpayers must claim credits, incorporating the new child care credit into the existing sequence to streamline the process. It establishes a new nonrefundable tax credit under section 5751.56, capped at $500,000 or the amount of eligible expenses incurred in the previous calendar year. Employers must submit their applications by January 15 of the following year, detailing their expenses and the tax against which the credit will be claimed. The tax commissioner will evaluate these applications and issue tax credit certificates for approved claims. The changes will take effect for applications submitted on or after January 1 of the year following the bill's enactment.

Statutes affected:
As Introduced: 5725.98, 5726.98, 5729.98, 5747.98, 5751.98