To amend section 5747.98 and to enact section 5747.74 of the Revised Code to create an income tax credit for employers that provide paid leave to organ donors.
Summary
HB122 creates a new nonrefundable Ohio income tax credit for employers that provide paid leave to employees who make living organ donations. The credit applies when a qualifying employer pays “donation leave benefits” to an employee donor recovering from a living donation of a liver, pancreas, kidney, intestine, lung, or bone marrow. The bill defines qualifying employers as those registered to use the federal E-Verify employment verification program and sets the credit at the lesser of the leave compensation paid or $300 per day, capped at 30 days per donation.
The bill also limits the total amount of donation leave benefits eligible for the credit to $54,000 per taxable year per employer and allows any excess credit to be carried forward for three years. It requires the tax commissioner to report annually on the number and value of credits claimed and authorizes the commissioner to request supporting documentation and adopt administrative rules. The bill amends the state’s tax-credit ordering statute to place the new organ donation leave credit in the sequence of credits claimed against Ohio income tax liability, and it applies to taxable years ending on or after the effective date.
Impact
HB122 would add a new section to the Ohio Revised Code, section 5747.74, creating a state income tax incentive for employers that maintain paid living-organ-donation leave policies. It also amends section 5747.98 to incorporate the new credit into Ohio’s credit-priority rules, affecting how taxpayers calculate aggregate tax liability under the individual and pass-through entity income tax system. The practical effect is to reduce tax liability for eligible employers or owners of qualifying entities that compensate employees during medically necessary recovery time after a living organ donation.
Sentiment
The bill appears to have strong support in the House, with unanimous favorable committee passage and unanimous House passage. The available voting history shows no recorded opposition at either stage, suggesting broad bipartisan agreement or at least no visible controversy in the chamber votes. Because there are no committee transcripts provided, the public discussion record here is limited, but the vote totals indicate a generally positive reception.
Contention
There is little visible contention in the available record, but the bill does impose several eligibility limits that could be points of policy interest. The credit is restricted to employers using E-Verify, which may be viewed as an administrative safeguard by supporters but could be seen as an added compliance condition by critics. The bill also caps the credit amount, limits the number of reimbursable leave days, and requires documentation of the donation and medically necessary recovery period, which may raise questions about administrative burden, verification, and whether the incentive is large enough to influence employer behavior.
To amend sections 3517.12, 3517.13, and 3517.155 of the Revised Code to modify the Campaign Finance Law regarding foreign nationals and statewide initiatives and referenda and to declare an emergency.
To amend sections 3505.01 and 3505.10 of the Revised Code to modify the deadline for a political party to certify its nominees for President and Vice-President to the Secretary of State.
To amend sections 3517.12, 3517.13, and 3517.155 of the Revised Code to modify the Campaign Finance Law regarding foreign nationals and statewide initiatives and referenda and to declare an emergency.
To delay the deadline for a major political party to certify its presidential and vice presidential candidates to the Secretary of State for the 2024 general election.