The bill introduces nonrefundable tax credits for employer-provided child care expenditures, amending several sections of the Revised Code and enacting new sections to facilitate this initiative. It establishes tax credit certificates that allow both domestic and foreign insurance companies, as well as other taxpayers, to claim credits against various taxes based on the amounts specified in these certificates. If the credits exceed the taxpayer's liability for the year claimed, they can be carried forward for up to five years. The bill also outlines a uniform procedure for claiming these credits, detailing the order in which they should be applied against tax liabilities.

Specifically, the bill creates a new nonrefundable tax credit under section 5747.87 of the Revised Code and a new section, 5751.56, which defines eligibility criteria and the application process for the credit. Eligible expenses include child care expenditures as defined by federal law and payments made by employers for child care services for their employees' children. Employers must submit applications to the tax commissioner, who will evaluate them and issue tax credit certificates accordingly. The bill also streamlines the tax credit claiming process by repealing existing sections related to tax credit procedures, with the new provisions set to take effect for applications submitted starting from January 1 following the bill's effective date.

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