The bill amends sections 5747.71 and 5747.98 of the Revised Code to introduce a partially refundable earned income tax credit for eligible individuals. Specifically, it defines "eligible individual" in accordance with the Internal Revenue Code and establishes a nonrefundable credit equal to 20% of the federal credit for the taxable year. Additionally, it introduces a new refundable credit that equals 10% of the federal earned income credit, which can be refunded to taxpayers if it exceeds their aggregate tax liability after other credits are applied.

The bill also modifies the order in which various tax credits are claimed, ensuring that the new refundable earned income credit is included in the list of credits that taxpayers can claim. The existing sections 5747.71 and 5747.98 are repealed, and the amendments will apply to taxable years ending on or after the effective date of the bill. This change aims to provide additional financial relief to low- and moderate-income taxpayers in Ohio.

Statutes affected:
As Introduced: 5747.71, 5747.98