The bill amends sections 5747.08 and 5747.98 of the Revised Code and enacts section 5747.053 to introduce a nonrefundable income tax credit for family caregiving expenses in Ohio. This new section defines important terms such as "activity of daily living," "eligible family member," "family caregiver," and "eligible expenses." Family caregivers who incur at least $1,000 in eligible expenses, which can include home modifications, transportation, and necessary equipment, will be eligible for a credit amounting to 30% of those expenses, capped at $2,000 per taxable year. The bill also allows multiple caregivers for the same family member to claim the credit, provided they do not claim it for the same expenses.

Additionally, the bill includes an insertion that adds the family caregiver credit to the list of credits under section 5747.98, ensuring its recognition within the existing tax framework. It also clarifies that amounts withheld from certain income sources will be credited against taxes owed by the recipient and establishes a process for pass-through entities to enable investors to claim refundable credits based on taxes paid on their behalf. The bill repeals existing sections 5747.08 and 5747.98 to streamline the tax credit process and prevent taxpayers from claiming the same credit more than once in a taxable year, enhancing clarity and efficiency in tax filing and credit claiming for caregivers and investors. The new provisions will take effect for taxable years ending on or after the bill's effective date.

Statutes affected:
As Introduced: 5747.08, 5747.98