The bill introduced by Senator Reynolds amends sections 5747.08 and 5747.98 of the Revised Code and enacts a new section, 5747.053, which establishes a nonrefundable income tax credit for family caregiving expenses. This new section defines important terms such as "activity of daily living," "eligible family member," "family caregiver," and "eligible expenses." Family caregivers who incur eligible expenses while caring for an eligible family member can claim a credit amounting to 30% of those expenses, capped at $2,000 per taxable year. The bill also sets income thresholds for caregivers and specifies the types of expenses that qualify for the credit, while ensuring that this new credit can be claimed alongside other tax credits.

In addition to the new provisions, the bill streamlines the tax credit process by repealing existing sections 5747.08 and 5747.98, and it introduces a uniform procedure for taxpayers to claim various credits. It mandates that tax returns include an option for taxpayers to authorize their paid tax preparers to communicate with the Department of Taxation and allows for the electronic filing of tax refunds to be directed into various accounts. The tax commissioner is tasked with adopting necessary rules for the administration of the new caregiver credit, which aims to provide financial relief to family caregivers and recognize their contributions to the care of eligible family members.

Statutes affected:
As Introduced: 5747.08, 5747.98