Ohio House Bill HB340

Ohio 2025-2026 Regular Session

• Introduced: 6/10/25

Caption

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 a childbirth bonus and to name this act the Baby Bonus Act.

Summary

HB340, the “Baby Bonus Act,” would create a new nonrefundable Ohio income tax credit for employers that pay a qualifying “childbirth bonus” to employees. A childbirth bonus is defined as additional compensation paid in the calendar year when the employee or the employee’s spouse gives birth to or adopts a child, and the employee must provide proof of the birth or adoption. To qualify, an employer’s policy must provide each employee a childbirth bonus of at least $1,000. The credit would equal $1,000 per eligible employee, with a cap of $50,000 in eligible bonuses per employer per taxable year. Employers could claim the credit in the year the bonus is paid, and owners of pass-through or other business interests could claim their share of the credit. Any unused credit could be carried forward for up to five years. The bill also authorizes the tax commissioner to require documentation, such as the employer’s policy and pay stubs, and to adopt rules for administration.

Impact

The bill would add a new section to the Ohio Revised Code, section 5747.74, and would amend the state’s tax-credit ordering statute, section 5747.98, to place the childbirth-bonus credit in the sequence of credits applied against income tax liability. It would create a new tax incentive for employers and business owners who adopt qualifying family-supportive compensation policies, while also imposing recordkeeping and substantiation requirements on employers. The act would apply to taxable years ending on or after its effective date and would be known as the Baby Bonus Act.

Sentiment

The available record shows the bill was only introduced and referred to the House Ways and Means Committee, with no recorded votes or committee testimony. As a result, there is no documented legislative debate or formal vote history to indicate broad support or opposition. The bill’s framing suggests a pro-family, pro-birth incentive approach, but the public legislative record provided here does not show whether that framing was contested.

Contention

Because there are no committee transcripts or votes, no specific points of contention are documented in the available materials. Based on the bill text itself, likely issues could include whether the credit is an effective use of the tax code, whether it favors employers that can afford to offer bonuses, and how the $1,000-per-employee credit and $50,000 annual cap would affect state revenue. The bill also requires employers to maintain records and provide proof of eligibility, which could raise administrative concerns, but no stakeholder positions are recorded in the provided context.