The bill, known as the Paid Parental Leave Act, aims to amend section 5747.98 and enact section 5747.74 of the Revised Code to establish a nonrefundable income tax credit for employers who provide paid parental leave to qualifying employees. The new section defines key terms such as "qualifying employee," "qualifying employer," and "parental leave benefits." A qualifying employer must offer at least fifty-six days of parental leave benefits and be registered with the e-verify federal employment verification program. The tax credit available to qualifying employers will be the lesser of the parental leave benefits paid or $300 for each day of leave, with a maximum credit limit of $54,000 per taxable year.

Additionally, the bill specifies that the credit must be claimed in a particular order as outlined in section 5747.98, which is being amended to include the new parental leave credit. The tax commissioner is tasked with reporting on the credit's usage annually, and the provisions of this act will apply to taxable years beginning on or after January 1, 2025. The existing section 5747.98 is repealed, and the act aims to support employers in providing essential parental leave benefits while offering them a financial incentive through tax credits.

Statutes affected:
As Introduced: 5747.98