OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 39 Bill Analysis
135th General Assembly
Click here for H.B. 39’s Fiscal Note
Version: As Introduced
Primary Sponsors: Reps. Skindell and Isaacsohn
Effective Date:
Zachary P. Bowerman, Attorney
SUMMARY
 Modifies the state’s earned income tax credit (EITC) by making the credit partially
refundable.
DETAILED ANALYSIS
Earned income tax credit modifications
The bill modifies a personal income tax credit that is based on a taxpayer’s federal EITC.
Under current law, the state EITC equals 30% of the taxpayer’s federal EITC and is
nonrefundable, which means that the amount of a taxpayer’s credit may not exceed the
taxpayer’s tax liability.
The bill makes the state EITC partially refundable, such that if the credit amount exceeds
the taxpayer’s liability, the taxpayer receives 10% of the federal EITC as a refund from the state.
The remaining portion of the state EITC, equal to 20% of the federal EITC, remains
nonrefundable.1 The modified credit applies to taxable years ending on or after the bill’s 90-day
effective date.2
Federal earned income tax credit
The federal EITC is a refundable credit computed as a percentage of a person’s earnings
(including self-employment income). To qualify for the federal credit, the taxpayer’s earned
income and adjusted gross income must fall below a specified threshold. For 2023, those
thresholds are as follows:
1 R.C. 5747.71 and 5747.98.
2 Section 3.
May 5, 2023
Office of Research and Drafting LSC Legislative Budget Office
Children or relatives Filing as single, head of household,
Filing as married filing jointly
claimed or widowed
Zero $17,640 $24,210
One $46,560 $53,120
Two $52,918 $59,478
Three or more $56,838 $63,698
For 2023, the maximum federal earned income credit for a person or couple without
qualifying children was $600, with one qualifying child $3,995, with two qualifying children
$6,604, and with three or more qualifying children $7,430. The credit amount is phased out as a
person’s income increases. In addition to the earned income limits, the taxpayer must also
meet various other eligibility requirements, including limits on investment income ($11,000 for
2023), minimum and maximum ages if qualifying without children (19 to 65 years), and
qualifications for qualifying children.3
HISTORY
Action Date
Introduced 02-15-23
ANHB0039IN-135/ts
326 United States Code 32; see also the EITC Table for Tax Year 2023 on the Internal Revenue Service’s
Earned Income and Earned Income Tax Credit (EITC) Tables webpage, which may be accessed by
conducting a keyword “EITC Tables” search on the IRS’s website: irs.gov.
P a g e |2 H.B. 39
As Introduced