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 an income tax credit for employers who provide paid parental leave. The new section defines key terms such as "qualifying employee," "qualifying employer," and "parental leave benefits." A qualifying employer is defined as one that is registered with the e-verify program and offers at least fifty-six days of parental leave benefits. The bill allows a nonrefundable tax credit for qualifying employers who pay parental leave benefits, with the credit amount being the lesser of the benefits paid or $300 for each day of leave, capped at $54,000 per taxable year.

Additionally, the bill outlines the order in which tax credits should be claimed, inserting the new parental leave credit into the existing framework of tax credits under section 5747.98. It mandates that the tax commissioner report on the credit's usage annually, starting September 1, 2026. The changes will apply to taxable years beginning on or after January 1, 2025, and the existing section 5747.98 will be repealed.

Statutes affected:
As Introduced: 5747.98