The proposed bill, known as the Baby Bonus 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 a childbirth bonus to their employees. A "childbirth bonus" is defined as additional compensation given to an employee in the year they or their spouse gives birth to or adopts a child, contingent upon the submission of relevant documentation. Employers must adopt a "qualifying childbirth bonus policy" that guarantees a minimum bonus of $1,000 to each eligible employee. The bill allows employers to claim a tax credit equal to the amount of the bonus paid, up to a maximum of $50,000 in total bonuses per taxable year.

Additionally, the bill outlines the order in which tax credits should be claimed, incorporating the new childbirth bonus credit into the existing framework. It mandates that employers maintain records related to the bonuses for at least five years and allows the tax commissioner to require supporting documentation for credit claims. The existing section 5747.98 is repealed, and the new provisions will apply to taxable years ending on or after the effective date of the act.

Statutes affected:
As Introduced: 5747.98