The proposed Childcare Tax Credit Act aims to amend sections 5747.08 and 5747.98 of the Revised Code and introduce a new section, 5747.74, establishing a refundable income tax credit for eligible child care expenses. This credit is available to taxpayers with a household income at or below 750% of the federal poverty line and is intended to cover employment-related expenses for the care of qualifying children under the age of five. The bill specifies that taxpayers cannot claim this new credit alongside the existing dependent care credit under section 5747.054. The maximum credit amounts are capped at $2,000 for one qualifying child and $4,000 for two or more, with the credit percentage varying based on household income.

Furthermore, the legislation introduces a tiered credit percentage based on income relative to the federal poverty line, with credits ranging from 100% for those at or below 550% to 25% for those earning between 701% and 750%. It also establishes a uniform procedure for calculating a taxpayer's aggregate tax liability and repeals the existing sections 5747.08 and 5747.98 to streamline the tax credit process. The tax commissioner is authorized to request supporting information from taxpayers claiming this credit, and any excess credit beyond the taxpayer's tax liability will be refunded. Overall, the bill seeks to enhance financial support for families with young children while ensuring efficient utilization of tax credits.

Statutes affected:
As Introduced: 5747.08, 5747.98