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. The bill defines a "childbirth bonus" 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 employee. The tax credit available to employers for each employee's childbirth bonus is capped at $1,000, with an overall limit of $50,000 in bonuses eligible for the credit per taxable year.

Additionally, the bill outlines the order in which tax credits should be claimed, incorporating the new credit for childbirth bonuses 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 enactment of section 5747.74 will apply to taxable years ending on or after the effective date of the bill. The existing section 5747.98 will be repealed as part of this legislative update.

Statutes affected:
As Introduced: 5747.98