The bill, known as the Paid Parental Leave Act, amends section 5747.98 and enacts 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 program. The tax credit available to qualifying employers is capped at the lesser of the parental leave benefits paid or $300 for each day of leave, with a maximum total credit 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 also 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 the act will apply to taxable years beginning on or after January 1, 2025. The existing section 5747.98 is repealed, streamlining the process for claiming the new credit.

Statutes affected:
As Introduced: 5747.98