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 employee submitting a birth or adoption record. Employers must adopt a "qualifying childbirth bonus policy" that guarantees a minimum bonus of $1,000 to each 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 modifies the order in which tax credits are claimed under section 5747.98, inserting the new credit for paying childbirth bonuses as part of the sequence. The tax commissioner is granted the authority to require documentation to support claims for the credit, and employers must maintain relevant records for at least five years. The enactment of section 5747.74 will apply to taxable years ending on or after the effective date of the bill.

Statutes affected:
As Introduced: 5747.98