To amend sections 5747.01, 5747.08, and 5747.98 and to enact section 5747.36 of the Revised Code to authorize the refundable thriving families tax credit for certain income taxpayers with dependents who are minor children.
HB140 would create a new refundable Ohio income tax credit called the “thriving families tax credit” for individual taxpayers with one or more qualifying children under age 18. The credit would be available only to taxpayers with household income at or below $85,000, with a maximum credit of $1,000 per child under age 6 and $500 per other qualifying child. The credit would phase down as household income rises above $65,000, and any amount exceeding the taxpayer’s income tax liability would be paid as a refund in 12 monthly installments after the return is filed.
The bill also makes conforming changes to Ohio’s income tax statutes. It amends the definition section in R.C. 5747.01 to add a deduction for refunds of the thriving families tax credit, updates R.C. 5747.08 so pass-through entity filing rules account for the new credit, and revises the credit ordering rules in R.C. 5747.98 to place the new refundable credit in the statutory sequence. The bill applies the new provisions to taxable years ending on or after the effective date, meaning the credit would affect future tax filings once enacted.
In practical terms, the bill would reduce state income tax liability for eligible families and could generate direct refund payments for households whose credit exceeds their tax due. It would primarily affect Ohio individual income taxpayers with minor children and lower-to-middle household incomes, while also requiring the Department of Taxation to administer eligibility verification and monthly refund payments. Because the credit is refundable, the fiscal effect would extend beyond tax reduction to direct state outlays.
The overall sentiment reflected by the bill’s sponsorship and cosponsorship is supportive of expanding tax relief for families with children. The bill was introduced and referred to the House Ways and Means Committee, but there is no recorded committee testimony or vote history in the provided materials, so no formal opposition or amendment debate is available here. Based on the text alone, the measure appears framed as a family-support and affordability policy rather than a broad tax overhaul.
No specific points of contention are documented in the available record, but likely areas of debate would include the income threshold, the size of the credit, and the fiscal cost of making it refundable and payable in monthly installments. Questions could also arise about how “household income” is calculated, how eligibility is verified, and whether the credit should be targeted more narrowly or expanded to more families.
HB140 would add a new refundable personal income tax credit in Chapter 5747 of the Revised Code and require conforming amendments to Ohio’s income tax definitions, filing rules, and credit-ordering statute. It would directly affect individual taxpayers with qualifying minor children and household income at or below $85,000, and it would require the Department of Taxation to administer the credit and issue any excess amount as monthly refunds. The bill also updates pass-through entity and credit-priority provisions so the new credit is integrated into Ohio’s existing tax administration framework.
The bill appears generally favorable and pro-family in tone, with multiple sponsors and cosponsors supporting the creation of a refundable child-based tax credit. No committee testimony, recorded votes, or formal opposition are included in the provided materials, so the available record does not show a developed partisan or stakeholder split. The absence of debate history suggests the bill was still in the early stages of consideration when introduced.
No explicit contention is documented in the provided record. Potential areas of dispute, based on the bill text, would likely include the income eligibility cap, the credit amount and phaseout schedule, the decision to make the credit refundable, and the administrative burden of paying refunds in 12 monthly installments. Critics could also question the fiscal impact on the state budget, while supporters would likely emphasize child poverty reduction and family financial support.